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NEW DELHI: Finance minister Nirmala Sitharaman on Tuesday told Indian industry to work in a way so that it can cross the “green barrier” with products and solutions, that are compliant with sustainable development goals (SDGs), while promising to get the issue of lower goods and services tax (GST) on cement examined.
Her comments came in response to a suggestion to lower the levy from the current 28%, as cement is a critical input for construction and housing. “The end-user (of cement) in non-bulk cases can be individuals, bulk cases can be government or the private sector… I will have the fitment committee examine, and, if necessary, we will take it to the (GST) Council,” she said at a post-Budget meeting with members of industry chamber CII. Fitment committee comprises officials from the Centre and the states.
Responding to a suggestion on Centre and states replicating the GST Council model to address implantation issues related to land labour or power dues, she said it may be useful in achieving the goal of faster growth. “The rate at which we want to grow, we may not be able to achieve that rate of growth unless many of these things on the ground also simultaneously kick in. Any lethargy will hit that larger goal as well. We can also see how the departments in the states can speed up things. Those are the areas in which it has not reached the last person, so it is necessary that we reach out faster.”
She also asked industry to come up with new suggestions and collaborate with startups, arguing they are innovating at a very rapid pace. “For the new sunrise sectors, production linked incentives (PLI) can be a good incentive. Beyond PLI is there any one thing that is one catalyst that can give you a leapfrogging effect?” she said.
The minister also used the forum to highlight the need for the industry to be compliant with the requirement to produce that green. “Now, investment plans are a lot more calibrated, not just towards expansion, but also in terms of technology that are in alignment with SDGs. Expansion cannot be only for monetary or demand considerations. To cross a green barrier, you do not need just a subsidy from the government, but use technology that is SDG compliant.
“You will have to produce green goods and also make sure that your consumption for inputs is also guided by green considerations, and your transition for fuel, using fossil fuel to using green fuel, will have to happen at this time. Nothing can be postponed for tomorrow,” she said, while pointing how these aspects could be used as non-tariff barriers.
Her comments came in response to a suggestion to lower the levy from the current 28%, as cement is a critical input for construction and housing. “The end-user (of cement) in non-bulk cases can be individuals, bulk cases can be government or the private sector… I will have the fitment committee examine, and, if necessary, we will take it to the (GST) Council,” she said at a post-Budget meeting with members of industry chamber CII. Fitment committee comprises officials from the Centre and the states.
Responding to a suggestion on Centre and states replicating the GST Council model to address implantation issues related to land labour or power dues, she said it may be useful in achieving the goal of faster growth. “The rate at which we want to grow, we may not be able to achieve that rate of growth unless many of these things on the ground also simultaneously kick in. Any lethargy will hit that larger goal as well. We can also see how the departments in the states can speed up things. Those are the areas in which it has not reached the last person, so it is necessary that we reach out faster.”
She also asked industry to come up with new suggestions and collaborate with startups, arguing they are innovating at a very rapid pace. “For the new sunrise sectors, production linked incentives (PLI) can be a good incentive. Beyond PLI is there any one thing that is one catalyst that can give you a leapfrogging effect?” she said.
The minister also used the forum to highlight the need for the industry to be compliant with the requirement to produce that green. “Now, investment plans are a lot more calibrated, not just towards expansion, but also in terms of technology that are in alignment with SDGs. Expansion cannot be only for monetary or demand considerations. To cross a green barrier, you do not need just a subsidy from the government, but use technology that is SDG compliant.
“You will have to produce green goods and also make sure that your consumption for inputs is also guided by green considerations, and your transition for fuel, using fossil fuel to using green fuel, will have to happen at this time. Nothing can be postponed for tomorrow,” she said, while pointing how these aspects could be used as non-tariff barriers.
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