Blue Star stalls Rs220-crore investment in J&K over GST query
- West Bengal panchayat elections: EC told to accept nominations
- Top Bollywood studios are betting on regional cinema this year
- India to push for local manufacturing of APIs, reduce dependence on China
- SGX profit jumps to decade high, focus on new India products
- It’s not about auditions, it’s about emotions: Deepak Dhar
Indore: Air conditioning and refrigeration major Blue Star on Thursday said it has put on hold a Rs220 crore investment in Jammu and Kashmir due to ambiguity over the continuation of excise duty relief in the state after the Goods and Services Tax (GST) is implemented.
“Jammu and Kashmir government has not clarified whether the relief in excise duty is going to continue in that state after the GST imposition,” Blue Star’s Room Air Conditioners Division vice-president CP Mukundan Menon told reporters in Indore.
“As a result of this, we have put on hold a Rs220 crore new investment in Samba district,” he added. Menon said his company had plans to start a manufacturing unit in March next year in Samba district of J&K to manufacture five lakh room air-conditioners yearly.
He also said after the GST regime is put in place, if there is no excise tax waiver, the company will go ahead and scrap its proposed investment. The company also plans to set up a Rs180 crore unit at Sri City in Andhra Pradesh.
Blue Star sold 3.4 lakh room air-conditioners last fiscal and Menon said the company was hopeful of selling 4.5 lakh air-conditioners by the end of the current fiscal year. “We have a target to sell 5.4 lakh room ACs in the next fiscal,” he said.