Pre-Budget discussion with trade, industry-Jammu

Flight of capital from the state will be checked effectively: Rather

Jammu, Jan 27 (KNS): The Minister for Finance and Ladakh Affairs, A.R. Rather has said that the State Government, in order to address the concerns of Trade and Industry, as also to safe-guard the revenue interests of the State, will take all possible measures to check the flight of capital due to diversion of trade. The Minister has assured the Trade and Industry that violation of guidelines by some States, in this regard, will be forcefully put before the Empowered Committee of State Finance Ministers in its forthcoming meeting.“Diversion of trade from our State, due to variation in VAT rates on certain commodities vis-à-vis the rates in the neighboring States, will not be allowed, as it leads to loss of revenue to our State, besides hampering the interests of the trade and Industry”, Mr. Rather said adding that Violation of guidelines in this regard by the neighboring States shall emphatically be brought to the notice of the Empowered Committee of State Finance Ministers.Rather was responding to the pleas of the members of the Trade and Industry during the course of pre-budget discussions which started at Jammu today. Expressing Government’s determination to harness the State’s vast Hydel Power Potential, Mr. Rather said that the Cabinet Sub Committee (CSC) has already recommended taking back Uri and Salal Power Projects from NHPC, in the first phase, adding that the Centre would be impressed upon to concede this demand as early as possible. He said that burgeoning deficit in the Power sector is the biggest challenge confronting the State saying that the power import bill has touched an all time high of Rs.3000 Cr. against the revenue of Rs.800-900 Crore. “How can a system be run under such conditions”, Mr. Rather questioned and said that situations like this are the cause for the budget deficit.
Responding to the issue of unemployment raised during Pre- Budget discussions Mr. Rather said that self-employment and entrepreneurship development has been given thrust, in the first of its kind employment policy, SKEWPY adding that the availability of money shall be no constraint in this regard.
After a series of meetings in the Kashmir Valley for the last three days, Mr. Rather today met Chamber of Commerce & Industry Jammu, Industrial Associations of IGC Samba, Gangyal, Bari Brhamana, and Kathua, Traders and Retailers Federation, Jammu and Hoteliers Association, Jammu