The Hindu Business Line : Coir Board hails I-T exemption

Kochi, March 2 The exemption of Coir Board from the purview of Income Tax Act on par with other commodity boards will help it to access funds for developmental activities, the Chairman of the Board, Mr A.C. Jose, has said.

He thanked the Finance Minister and the Micro Small and Medium Enterprises Minister for considering the Board’s request in this regard. Coir Board, he said, has been set up by an Act of Parliament in 1953, and is engaged in the growth of the coir industry through developmental and promotional activities.

In order to give a fillip to the small-scale sector, the Budget has also reduced the guarantee fee and the annual fee of the Credit Guarantee Fund Trust for Small Industries (CGTSI) operated by SIDBI.

SIDBI will reduce the guarantee fee from 1.5 per cent to 1 per cent and the annual service fee from 0.75 per cent to 0.5 per cent for loans up to Rs5 lakh. As on January 31, 2008, the Credit Guarantee Trust with SIDBI had extended guarantees to 89,129 units for an amount of Rs 2,479 crore.

This would also help the artisans in the small-scale coir sector and weavers who will seek term loans under the Coir Board’s Rejuvenation, Modernisation and Technology Upgradation Fund Scheme, as the beneficiaries have to meet the cost of guarantee and annual fees of the Trust Fund.

As against the present payment of Rs 3,850 per beneficiary, he would now need to pay Rs 1,650 and for the tiny/household sector, the payment would be Rs 4,125 against Rs 9,625.

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