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Shaw Wallace chief lauds Budget

Rifat Jawaid in Calcutta

M R Chhabria, chairman of liquor major Shaw Wallace said on Thursday that the finance minister had successfully provided an investor-friendly and agro-support budget even under the shadow of Gujarat earthquake and the lackluster performance of the economy.

In a message mailed to rediff.com, Chhabria said that the liberalisation of usage of ADR funds was an indication of the government's recognition of the arrival of the Indian MNC.

"The financial services business would receive the much-needed fillip with the increased investment limits in foreign direct investment (FDI). Besides, the finance minister has taken special attention to prop up the capital market through a number of measures.

"Simultaneously, the creation of an active and electronic-based debt market will go a long way to channelise funds into this sector as it provides an efficient alternative to bank savings," Chhabria said.

Curiously, Jumbo Electronics, another business house owned by Chhabria, is the leading player in this segment in the United Arab Emirates.

Lauding the finance minister for introducing a rational taxation mechanism for perquisites in the corporate sector, Chhabria said the Shaw Wallace was among the first few companies in India to have a cost to company basis of taxation. He felt that the proposed abolition of Sick Industrial Companies Act (SICA) would help cut down on the red-tapism and ensure proper corporate governance.

" With a transparent procedure for privatisation already initiated, the finance minister has continued with his commitment to privatise successful undertaking and creating the necessary and favourable regulatory environment in the labour and finance areas," Chhabria remarked.

Reverting to Shaw Wallace's main business, Chhabria said the domestic alcoholic beverages sector would now be able to face the impending competition from imports with adequate protection in nature of duties following the FM's announcement to levy 'adequate' countervailing duty (CVD) on imported liquor.

According to him, imposing CVD on imported liquor would give the industry a level playing field while providing time to modernise the facilities to global standards.

"The finance minister's announcement has provided the much-needed protection for the domestic alcoholic beverages industry," Chhabria said.

Chhabria hailed the Sinha's focus on agriculture as 'very positive.' Through tariff protection and emphasis on adequate infrastructure provisions, he said that the FM had sent a strong signal regarding the government's commitment to achieving sustained growth in this sector.

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