Question : CONCESSIONS TO CHEMICAL COMPANIES



(a) whether some chemical companies have demanded concessions during the recession period;

(b) if so, the details thereof; and

(c) the reaction of the Government thereto?

Answer given by the minister


THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI SRIKANT KUMAR JENA)

(a)& (b): Yes.Some chemical companies had demanded concessions during the recession period. These included reduction in Central Excise Duty from 14% -8%, roll back of Import Duty of 5% on Naptha, levy of crisis duty (10%) on all chemicals, intermediates, dyes, pigments and pesticides, expeditious disposal of Anti Dumping/ Safeguard Measures, fiscal reliefs to SMEs and provision of low cost credit to them.

(c) : The Government has taken the following decisions in this regard:

(i) Reduction of Excise Duty from 14%-10% and then from 10%-8%.

(ii) Anti Dumping Duty/Safeguards were imposed in respect of following:


Soda Ash Imposition of Safeguard Duty- 20%
Caustic Soda Imposition of Safeguard Duty- 15%
Carbon Black Anti Dumping Duty -$78$195 per MT Country specific

(iii) DEPB rates were restored to March, 2008 level.

(iv) 150% weighted deductions of expenditure on R&D for recognized R&D Units.

(v) Period of credit for exports was increased from 180 days to 270 days.