Gujarat Govt. announces package to revive economy

By Manas Dasgupta

GANDHINAGAR, FEB. 25. In a bid to rehabilitate the industries damaged by the Republic Day earthquake, the Gujarat Government today announced a Rs. 1,000 crore comprehensive package to help revive the economy.

Announcing the package, the Industries Minister, Mr. Suresh Mehta, estimated that about 3,276 small and medium scale industrial units suffered damage to the tune of over Rs. 310 crores, including over Rs. 190 crores loss suffered by the units in the worst-hit Kutch district alone, while the production loss was estimated at over Rs. 2100 crores including the losses suffered by the ancillary industries.

Pointing out that the State Government was committed to reviving the economy and restarting small, medium and cottage industries to provide employment opportunities, Mr. Mehta said the Government would provide an assistance of Rs. 60 lakhs at the rate of 60 per cent of the new investment for the repair of damaged buildings, plants and machinery of the industrial units falling in earthquake zones, IV and V. In addition, a bankable loan assistance of Rs. 20 lakhs would be paid for two years. The electricity charges would be recovered only on the basis of actual consumption instead of minimum rates for one year and would be granted total exemption from the stamp duty chargeable for the legal documents for the implementation of the scheme.

Expressing concern at the total collapse of trade and commercial activities in the wake of the earthquake, Mr. Mehta said a package for the revival of the economy would be announced separately after a detailed survey was conducted on the restoration of the economy. For the time being, the cabin and shop owners whose property had been damaged would be provided an ad hoc compensation of Rs. 3,000 and Rs. 6,000 respectively while in the rehabilitated villages the Government would provide the cabins and shops free of cost to the owners.

Pointing out that the Centre had announced an exemption in excise duty on cement till July, Mr. Mehta said the State Government had been informed that the Centre was also considering proposals for extending the exemption to other building materials. The State Government on its part would soon take a decision on the sales tax on the building materials.

Mr. Mehta said to rehabilitate the cottage industries which bore the main brunt of the earthquake damages suffering a loss of over Rs. 70 crores in Kutch district alone, the Government had prepared a short term plan for artisans and labourers engaged in self-employment schemes. While an assistance of Rs. 10,000 would be provided to the artisans engaged in hand weaving in addition to the assistance announced by the Centre other categories of artisans would be provided cent per cent assistance upto Rs. 10,000 for purchase of new tool kits. For the tool kits costing more than Rs. 10,000, a graded assistance upto 60 per cent would be provided, besides Rs. 5,000 help for setting up temporary work sheds.

Mr. Mehta said the Government would create a revolving fund of Rs. 5 crores for the rehabilitation of the cottage industries of which Rs. five crores would be spent in the first phase.

As part of the Government's longterm plans for the rehabilitation of the industries, Mr. Mehta said work sheds upto 20 to 25 sq. m. each, would be given to artisans engaged in the cottage industry with cent per cent assistance. Artisans would be provided clusters of houses and work sheds as per the design. The Government, he said, would provide 50 rural industrial centres each at a cost of Rs. 9 lakhs for providing infrastructural facilities in the earthquake-hit areas.

He said the Government had also planned to develop 24 mini parks at a cluster level each costing about Rs. one crore besides eight district level handloom-handicraft parks in the earthquake- affected areas.

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