Mr. Pradeep Dhobale
MD
ITC Bhadrachalam Paperboards Ltd

 
THE BUDGET HAS NOT MET EXPECTATIONS
The budget has not met expectations of Paper Industry at all. The special
consideration shown to the Textile and Steel Industry should have been applied
to Paper Industry as well because the issues are quite similar. The main demand
of the Industry to treat light weight papers as printing papers and not as
newsprint for customs duty purpose had a lot of merit but has been totally
neglected.

The support in terms of additional depreciation allowance for new plant and machinery is only marginal. The modernisation needs of the Industry are so large that some more measures to induce investments like reduced customs duty on machinery for energy conservation/pollution abatement would have been most welcome. The budget has nothing which will improve competitiveness of Indian Paper Industry. Even the changes in personal incometax, and tax on dividends in hands of the small investor are likely to reduce consumer spend and hence not good for developing economy.
 
 

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R C Rastogi
President.
All India Small Paper Mills Association.

 
Thanks to the Union Finance Minister for presenting the budget, which will be a milestone for new reforms especially in the agricultural and infrastructure sector. Reduction in subsidies is also good and subsidies in all sectors must go at the earliest. Industry was expecting a progressive budget to boost the economic growth and exports; unfortunately nothing has been done on this account. Industry is suffering with demand and uncompetitive ness in the global market. Reduction in import duties is a good sign. 

It was expected that custom duty should have been reduced for all the machineries required for modernization and upgradation of industrial units. Specially in paper sector, news print industry is facing severe competition from imported news print due to very lower rate of custom duty i.e effective 5% compared to now 30% in general grade of finished paper. In my opinion budget 2002-03 will not show immediate boost to economy.
 
 

 

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