Deshmukh asks for auto sector stimulus to continue

February 17th, 2010 - 8:03 pm ICT by IANS  

Pranab Mukherjee New Delhi, Feb 17 (IANS) Heavy Industries Minister Vilasrao Deshmukh Wednesday urged Finance Minister Pranab Mukherjee to continue with incentives and stimulus given to the auto industry during slowdown in late 2008.
“We have requested the finance minister to continue with the stimulus for the sector,” Deshmukh told reporters here.

The government offered four percent cut in central value added tax, also called Cenvat, that helped the auto industry in not only increasing demand but also in brining down prices.

The auto industry picked up business since December 2008 and has posted robust sales in the last 10 months with total vehicle sales of 11,14,157 units in January. This is the highest ever in a month so far, according to the Society of Indian Automobile Manufacturers (SIAM).

According to SIAM, 1,45,905 units of cars were sold during January this year.

The auto industry has also been asking for continuing the stimulus package in the budget till the industry is well back on track.

Related Stories

Tags: , , , , , , , , , , , , , , ,

Posted in Business |

Subscribe