KCCI seeks revision of consent fee
Mangaluru, Feb 27, 2021: The Kanara Chamber of Commerce and Industries has submitted a memorandum to Minister C P Yogeshwar seeking revision of consent fee for consent/establishment to operate under KSPCB Rules.
“A number of industries have written to us on this sudden unjust rise in consent fees. Industries are facing tough situations due to surge in raw material prices and reduction in demand. Sustainability is a question in these difficult times. Such additional financial implication will cause further hardship to the industries. Many of the industry are yet to start full fledge operations,” KCCI president Isaac Vas stated in the memorandum.
“The present system of calculations of consent fee is on the basis of gross capital investment. This is also linked to WPI and will increase depending on the inflation. However the basic flaw in this system is Medium and Large industries with an investment of over 25 crores are penalised for their capital cost. This is a disincentive for employing environment friendly technology which naturally is capital intensive,” he added
Request by KCCI submitted to the minister:
- The new system of paying consent fee on the basis of percentage of fee on capital investment need to be rationalised and revised.
- When stakeholder’s views/suggestions/objections were invited before the increase we were assured the increase in consent fee would be around 30% to 40% of the existing fee structure, however it is shocking to note that the increase in some cases is as much as 800 to 1000%. There should be a cap for the fees beyond certain amount. Capital investment is needed for growth as also to reduce pollution and sustain environment too.
- Paying the increased upfront fees for 5 years at one time adds to this huge burden and affects the cash flow and working capital. Along with relook at the rates we request to allow annual instalment for these payments.
- Request you to pass necessary orders to keep the present rate revision in abeyance till a relook at the structure is made and revised suitably.
