Nashik LUB proposes 50% subsidy on land rates and sales tax to relieve SMEs in the region

Nashik, July 15 (KNN) Laghu Udyog Bharati (LUB), Maharashtra, proposed the state government to provide at least 50% relief on land and gala rates for start-up units in Maharashtra Industrial Development Corporation (MIDC) estates. A proposal of 50% subsidy in sales tax (ST) is also put forward to allow industries to start operations earlier.

Talking to KNN, Amol, spokesperson, LUB Nashik said, ”These proposals have been laid down to revive sick units in Nashilk area in particular and Maharashtra in general. High land cost is a major barrier for new entrepreneurs to start a new unit. Around 80% of the funding goes waste on it.  So, the government needs to provide cheaper land to start-up units to support the entrepreneurs.”

He also pointed that the electricity cost is the highest in Maharashtra which is another major drawback for the start-ups.

According to a media report, M G Kulkarni, President, North Maharashtra president, Laghu Budyog Bharti said, "The land cost is the major hurdle for the SMEs to start up their businesses. Around 80 per cent of their investment goes in land cost only, while remaining 20 per cent are spent to set up structure and machineries. This is the major reason why SMEs can't become start-up. Hence, we want the government to give 50 per cent relief in land cost or in rents of galas to SMEs only."

There are close to 4,500 micro, small, medium and large industries in Satpur, Ambad and Sinnar industries estates of Maharashtra Industrial Development Corporation (MIDC). Of which, around 90 per cent of total units are from MSME categories.

To revive them all there is an urgent need to implement these proposals on an urgent basis. (KNN/ GK)