Page 38 - PR Communication Age January 2016
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ages capping airfares for those spend- Transporting coal via wa- "The notifications will make domestic
ing less than 60 minutes in air at Rs terways can save Rs. 10k manufacturing cheaper apart from
2,500 and a 2% levy on other sectors cr/year reducing the time and paperwork," a
along with concessions from the state top official from shipbuilding firm told.
and the Centre -is expected to take off Inland waterways can not only boost
lately. the movement of goods and passen- At present, certain specified ships or
gers across the country, but will also vessels are exempt from basic customs
Choubey, who has been driving the help in saving about Rs 10,000 crore duty and Central Excise duty (CVD).
new aviation policy, also said that the annually in transporting coal, Shipping Consequently, for such ships manufac-
government would clearly articulate its Minister Nitin Gadkari said. tured in Export Oriented Units (EOUs)
stance on the 5/20 rule when the final and cleared to domestic tariff area
document is released. "We have given The minister, who also holds the charge (DTA), the EOUs are not eligible for
three options but we are open to ac- of Road Transport and Highways, added exemption on raw materials/parts of
cept another formulation if someone that he is hopeful of Parliament's nod such ships/vessels, said a release.
suggests it." on the bill to convert 111 rivers across
India into National Waterways in the Suitable amendment is being made to
The aviation secretary, however, dis- current Winter Session. the relevant notifications so as to pro-
missed suggestions of linking the re- vide that EOUs will be eligible for duty
moval of the 5/20 rule and doing away "Inland waterways will help in saving exemption on raw materials/parts
with the route dispersal guidelines, logistics costs and boost movement of consumed in manufacture of such
arguing that the two were not just in- goods and passengers across the coun- ships/vessels which are cleared to do-
troduced at different points in time but try. Besides, they will also save around mestic tariff area, even if such ships/
were also meant to serve different Rs 10,000 crore per year while trans- vessels are exempt from basic customs
objectives. porting coal, a crucial resource," duty and Central excise duty.
Gadkari said at the annual session of
Rail modernisation can industry chamber PHDCCI. Simultaneously, the requirement of
push up GDP by 3% manufacturing of ships/vessels/ tugs
Cost of locally-made ships and pusher craft in a custom bounded
Modernisation of Indian Railways can may come down by up to warehouse under the provisions of Sec-
boost the country's GDP by 2.5-3 per 16% tion 65 of the Customs Act, 1962, for
cent over a period of time, railways availing the customs and excise duty
minister Suresh Prabhu said. "Railways Cost of all locally manufactured ships exemptions has also been done away
itself, in my opinion, could contribute can drop by up to 16 per cent with the with. Instead, these exemptions will
to 2.5 per cent to 3 per cent of GDP government notifying some indirect tax now be subject to actual user condi-
over a period of time and that will benefits to promote domestic ship- tions, said the release.
happen," Prabhu said at industry body building.
Assocham's annual event in New Delhi. "This relaxation will remove the need
The government notified tax exemp- to have annual inspections by customs
Enlisting steps the government is tak- tions for the domestic shipbuilding in- officials for custom-bounded ware-
ing for the sector's growth, he said dustry. The benefits include exemption houses," explained the industry source.
that in the last six months, the minis- from customs and central excise duties Several indirect tax incentives avail-
try has implemented as many as 103 on all raw material and parts for use able to the shipbuilding industry are
of Budget announcements. He also in the manufacture of ships, vessels, subject to the condition that such
said that all the projects are awarded tugs and pusher crafts. manufacturing takes place in a custom-
in a transparent manner. bounded warehouse.
"If I was down to the last dollar of my marketing budget I'd spend it on PR!"
38 PR COMMUNICATION AGE January 2016
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