This action has hit the state units in general and SSI units in particular without giving a level playing field for the units in Maharashtra. The policy has only added fuel to the fire, with high rates of sales tax as compared to the neighbouring states and union territories.

The Maharashtra Small Scale PVC Pipes Manufacturers Association, president, Sharad Sharma, has categorically stated that unless the authorities come forward and provide relief to this sector, most of the units will either close down or switch over their operations to neighbouring states.

The governemnt could restore the reservation of the purchase of PVC pipes from the SSI units of Maharashtra as is the case in some other states where price preference is given to state units.

With the change in procuring policy of the state, units are not only deprived of supplying material to other states because of their own state policy, but are also deprived of supplying their material to the home state due to higher percentage of sales tax.

Immediate remedial action to reduce sales tax on all types of PVC pipes is the need of the hour. Failing which, neighbouring states like Gujarat and other union territories will benefit as the entire share of PVC pipes of Maharashtra will be snatched by these state units resulting into a loss in state revenue and creation of unemployment.

Restoration of section 41F of sales tax is also essential so that, the product is not doubly taxed. In addition higher electricity cost in Maharashtra has also fueled the production cost as compared to neighbouring states and union territories.

The PVC pipes are mainly used for development of infrastructural facilities like irrigation, potable water supply, telecommunications and dwelling units. Since all these sectors fall under the category of infrastructure and public utility, the PVC pipes should be included in declared goods section, with the minimum excise duty and sales tax. The other levies should also be in line with GI pipes and CI pipes, the association release said.

The fluctuation in PVC resin prices had already crippled the problem ridden industry and PVC prducers in the country have cartelised and rigged up the prices to as high as three times in a span of one month.

In order to maintain fair price mechanism, the association has also appealed the centre to reduce the import duty from 35 per cent to 15 per cent.