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| Adityapur industrial area. Picture by Srinivas |
Jamshedpur, May 18: Small-scale units in the Adityapur industrial area in the adjoining Seraikela-Kharsawan district can heave a sigh of relief. They will not have to bear the brunt of paying exorbitant land levy from next time round.
Adityapur Industrial Area Development Authority has decided to reduce the annual levy from the existing Rs 5,000 per acre to Rs 3,000.
“The decision for reducing the levy was taken by Adityapur Industrial Area Development Authority board keeping in view the demands of the industrialists. The new levy would be implemented from May this year,” said Mohan Lal Rai, the managing director of Adityapur Industrial Area Development Authority, told The Telegraph.
According to Rai, the amount of levy charged from industrialists was uniform for all categories — small, medium and large-scale units.
“The reduction in annual levy would bring succour for the small and medium-scale units, which are passing through a crucial stage,” he said.
The industrialists have been opposed to the land levy since its implementation in 1999. The levy was charged for all the industries irrespective of its size and nature of business.
The amount collected as levy was utilised for necessary maintenance of roads in the industrial area and the development of other infrastructure.
The industrialists have welcomed the decision of Adityapur Industrial Area Development Authority to reduce the annual levy.
“It is a welcome decision. We have been demanding for the abolition of the levy since its implementation as apart from levy, we are required to pay the land rent and maintenance charge of streetlights along with the holding tax imposed by Adityapur Municipal Council (earlier Adityapur Notified Area Committee),” pointed out S.N. Thakur, the president of Adityapur Small Industries Association, the largest and one of the oldest industrial organisations of the state.
According to Thakur, over 700 industrial units in the small, medium and large-scale categories based in Adityapur are required to pay the annual levy. The revenue generated by Adityapur Industrial Area Development Authority from collection of levy crosses Rs 35 lakh.
“We are happy that the levy has been reduced. This will help the small-scale industries that run either on losses or earning low profits. Adityapur Industrial Area Development Authority authorities assured us that the decision for reducing the levy would be notified in a couple of days,” added Thakur.
Adityapur Small Industries Association would discuss the issue in its annual general body meeting scheduled to take place on May 24.
Apart from the reduction in levy, the industrial area faces several other issues, including electricity crisis and a poor law and order situation, would be discussed at the annual general meeting.