SAIL waiting for tax sops from West Bengal government

Steel Ministry sources are disappointed with the West Bengal’s delay in offering tax incentives to SAIL.

The steel maker has taken up expansion at ISP Burnpur with an investment of INR 14,434 crore to raise capacity of the erstwhile Indian Iron & Steel Company to 2.5 million tonnes of crude steel.

It is a Greenfield plant that SAIL is building and wants the State’s support.

SAIL had wanted a sales tax and VAT deferral for 10 years. In a letter to the State Government last year, it had sought exemption from electricity duty payment, royalty and cess among others for a further period of five years from April 2008.

It has written to the State again this year. It wants this exemption before the introduction of Goods and Services Tax which is expected to come into force next year. Under the GST regime, a tax exemption will not be possible.

Ministry sources said tax benefits have been offered to other steel makers such as Adhunik Metaliks and JSW Steel, which plan to set up an integrated steel plant in the State.

When ISP Burnpur’s modernization plan was being drawn up, the West Bengal Chief Minister had promised tax concessions. While that promise has been reiterated again, SAIL said that the source needs more than a commitment.

(Sourced from Telegraphindia.com)

Posted in: industrial news