FIA opposes Gujarat govt's proposed infrastructure levy

The Federation of Industries Association (FIA) has opposed the Gujarat government's decision to impose infrastructure levy on 180 industrial estates in the state.

The Federation of Industries Association (FIA) has opposed the Gujarat government's decision to impose infrastructure levy on 180 industrial estates in the state.

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The government imposed the levy to cover the cost of its Rs 3,000 crore upgrade plan project for old industrial estates over three years.

"The units are being asked to pay Rs 9 per square metre (a year) to Gujarat Industrial Development Corporation for the developing infrastructure like roads, water, drainage and other facilities, including installing Wimax," FIA President Babubhai Patel said in Vadodara on Sunday.

The FIA, an umbrella organisation of industries, does not agree with the government on the cost of the project, estimated at Rs 3,000 crore, he said.

According to the FIA's calculation, the government will not need more than Rs 1,200 crore for the project. The association has proposed a development charge of Rs three per square metre per year for the next three years against Rs 9 per square metre suggested by the government, Patel said.

An FIA delegation will meet GIDC Vice-President and Managing Director Arvind Agrawal this week to submit their proposal, Patel said.