Hopes of Saurashtra businesses and industries died as Union budget was anounced, be it owner of small scale industries, ceramic factories, quartz units or metal industry.
There is Little relaxation in central excise duty for diesel engines and foundry units have dampened hopes for their revival (good for Rajkot), while the ceramic industry's dream to compete with China, with a cut in excise duty and VAT, has crashed.
PC's budget has badly hit brass parts industry in Jamnagar and diesel and foundry units in Rajkot, these both industry are dying.
Brass parts industry in jamnagar wanted relaxation in central excise duty upto Rs 8 crore from Rs 1 crore and relaxation in service tax upto Rs 10 lakh from current Rs 4 lakh.
According to Ramji Patel, president, Jamnagar Factory Association, the budget has disappointed the industry.Others like diesel manufacturing and foundry units in Rajkot also expected a Rs 3 crore relaxation in central excise, though FM has increased the slab for central excise duty upto Rs 1.5 crore.
Same goes with the diesel engine industry in Rajkot.
In Morbi ceramic industry, 12.5 per cent VAT has also been hindrance in competing with China. These industry demanded the VAT slab to be reduced by 4%. It was a mixed bag for the Morbi quartz industry.