Budget expectations - Mr. Murali Cherat, CEO - Birla Accucast Ltd. (part of 3000 cr Yash Birla group)

Dear Sir,

 

Please find attached the Budget expectations from Mr. Murali Cherat, CEO - Birla Accucast Ltd. (part of 3000 cr Yash Birla group)

 

To benefit auto ancillary following can be considered in union budget.

 

Budget expectations

 

To Improve export

 

Cenvat rebate:

• Against deemed exports, there is no provision for claiming cenvat rebate, though this is very simple in the case of direct export.  Most of the auto ancillary supplies components to Tier-I vendors in India who in turn export to OEM's overseas.  In deemed export, considerable amount of money is blocked endlessly and acts as a deterrent for smaller companies to support Tier-I companies as a result OEM's some times decide to source it from other countries.  Simplified procedure will enable auto ancillary to export better through Tier-I.
• Since India is in advantageous position to export castings, provide export incentive of 20% against current 5%.  This will make India as a highly attractive destination for sourcing castings that too machined castings both for Europe and USA.

To Improve Domestic Consumption side:

• Reduce excise duty further, provide incentive for old vehicle replacement programmes both for cars as well as Trucks, align petrol and diesel prices with international crude price.

To improve  employment generation:

• Incentive for second hand plant to be imported from USA /Europe where it will provide employment for more than 100 people in India for mass production.
• Exemption/incentive for JV in castings to be set up in India, irrespective of the location based on export potential as well as number of people employed.

About Yash Birla Group

 

The Yash Birla Group is a 3000 crore conglomerate of about 20 diversified companies which run the gamut from established sectors like Auto Engineering, Power Solutions, Textiles and Machines Tools to emerging sectors of today like Education, Information Technology, Solar Power, Health and Wellness. Today the group has 9 listed entities in India.

 

Thanks & Regards

 

A.Karthikeyan.
PR Executive | Blue Lotus Communications Pvt. Ltd | Chennai |
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