Business & Economy  

Biotech industry wants duty cuts on capital equipment and consumables

What is India News Service, 2 July 2004, 1700 hrs IST

The biotechnology industry wants finance minister P Chidambaram to reduce import duty on all capital goods and consumables vital to biotech R&D. The BSE sensex saw a rise on Thursday as the state-run industry stocks sold high. The central government has sought a comprehensive revival plan for the Dabhol power project from domestic financial institutions.

The Indian biotech industry would experience rapid growth if Chidambaram could relax duties and taxes, which add to R&D costs. Captains of the industry say the current scenario is beset with duties and taxes. This hampers the great advantage that India enjoys in scientific human resources. Industry sources say that if the expected sops come through, they could save up to Rs 500 crores. This will go a long way in turning the Indian biotech sector into a global power.

The sensex closed at 4,874 on Thursday, gaining 1.7 per cent or 79 points. Investors bought into heavyweights like ONGC, State Bank of India, Reliance Industries and Tata Motors. Rise in prices of scrips like BHEL and Grasim also added to the index’s gains. The day’s rally in the market resulted in investor gain of Rs 18,000 crore.

The central government has sought a comprehensive revival plan for the Dabhol power project from domestic financial institutions. This is a precondition for issuing a government guarantee to help it settle its debt with foreign lenders. Sources said the Prime Minister's Office (PMO) is also insisting that the counter guarantee be cleared by the cabinet.

Overall:

Biotech industry wants tax cuts: It wants the finance minister to reduce import duty on  capital goods and consumables that are key to R&D .

Sensex soared: It closed at 4,874, gaining 1.7 per cent or 79 points.

Government sought Dabhol revival plan: The centre wants a comprehensive revival plan to take on 310 million dollar foreign loans.