The representation informed the Minister about the drop in the number of flights to and from Vadodara Airport and requested his intervention to direct airlines to start or increase air connectivity from Vadodara. The importance of Vadodara as a business and cultural hub was emphasized to demonstrate the need for more national and international connections.
Separate representations were also sent to the CEOs of various airlines, including SpiceJet, Vistara, IndiGo, Star Air, Air India, Air India Express, Go First, and Akasa Air. IndiGo and Air India were requested to introduce connectivity to cities like Pune, Chennai, Goa, Jaipur, and Kolkata and to increase the number of flights to Mumbai and Delhi at more convenient rates and timings. The other airlines were urged to consider starting flights to and from Vadodara due to the city’s growth as one of the fastest-growing hubs for business and leisure travellers.
Following these representations, we are pleased to report that Air India re-introduced two flights between Vadodara and Mumbai starting from 3rd May 2023. Additionally, IndiGo Airlines began direct flights from Vadodara to Goa starting on 22nd May 2023.
On 7th February 2023, FGI made a representation to Dr. Rahul Gupta, IAS, Hon. Vice Chairman & Managing Director of GIDC, regarding an issue faced by our member company, M/s Solitaire Machine Tools Ltd. The company reported an illegal encroachment at their upcoming factory site at GIDC Halol-2 & Halol (Maswad).
FGI requested GIDC’s intervention to clear the encroachments at the allotted site, enabling the company to resume its construction plans. It was emphasized that the development of this new site would generate multiple employment opportunities and contribute to the economic growth and development of both the state and the country.
On 22nd December 2022, FGI made a representation to Mr. Campbell Wilson, MD & CEO of Air India, regarding the expansion of flight connectivity from Vadodara International Airport.
At present, Air India operates only limited flights to and from Vadodara, connecting the city to New Delhi. Prior to the COVID-19 pandemic, Air India also connected Vadodara to Mumbai. In the representation, FGI urged Air India to consider starting flights from Vadodara to major cities such as Mumbai, Kolkata, Hyderabad, Chennai, and Pune, emphasizing the significant need for improved flight connectivity for business and leisure travellers.
The representation was well received by the office of the CEO & MD, who expressed appreciation for the suggestions. In their response, they confirmed that the airline had taken note of FGI’s recommendations and would consider them during future route assessments as their fleet expands.
On 22nd December 2022, FGI sent representations to Mr. Kaushik Khona, CEO of Go First, and Mr. Ajay Singh, Chairman & Managing Director of SpiceJet, requesting them to initiate flight connectivity from Vadodara International Airport.
Along with the representations, a copy of the letter sent to the Hon’ble Civil Aviation Minister was also shared with both airlines to further encourage them in their decision-making. The aim was to highlight the growing need for expanded flight options and connectivity from Vadodara to major cities to cater to the needs of both business and leisure travellers.
On 21st December 2022, FGI made a representation to Shri Jyotiraditya M. Scindia, Hon’ble Minister of Civil Aviation, requesting the expansion of flight connectivity from Vadodara International Airport.
FGI highlighted the decline in the number of flights operating from Vadodara and informed the Hon’ble Minister about the challenges posed by significant developments in the aviation sector, such as the sudden shutdown of Jet Airways, the takeover of Air India by TATA, and the limited availability of airline options. This has led to a mismatch between the growing demand and the insufficient supply of flights, particularly on the Vadodara-Mumbai route, where the sole airline provider now has a monopoly and is charging exorbitant fares. This situation has adversely impacted businessmen and frequent travelers in the region.
In light of these concerns, FGI requested the Hon’ble Minister’s intervention to encourage airlines such as Indigo, Air India, Go First, SpiceJet, and Vistara, among others, to begin services connecting Vadodara with key cities like Mumbai, Bangalore, Pune, Kolkata, New Delhi, Chennai, and others deemed appropriate, to cater to the needs of business and leisure travelers in Vadodara and surrounding areas.
On 12th December 2022, FGI made a representation to Shri Piyush Goyal, Hon’ble Minister of Commerce & Industry, on behalf of their member company, M/s. INOX India Limited (formerly Inox India Private Limited). The representation addressed the issue of their pending Authorized Economic Operator (AEO-T2) application, which had been delayed due to the company having one unit in a Special Economic Zone (SEZ).
The AEO-T2 status is a prestigious certification that enhances the company’s reputation in the international market and provides several commercial benefits, such as deferred duty payment, a reduced bank guarantee (25%), and faster disbursement of refunds and adjudications. It is an internationally recognized quality mark, signalling efficient and compliant customs procedures in the international supply chain. The delay in receiving AEO-T2 status hampers the company’s ability to benefit from these advantages, increasing finance costs and reducing competitiveness.
In the representation, FGI provided several justifications and requested the Hon’ble Minister to urge his concerned office to review the matter promptly to ensure that the company can avail the benefits of AEO-T2 status and maintain its competitive edge in the market.
On 16th November 2022, FGI made a representation to Mr. Raj Kumar, IAS, Additional Chief Secretary, Department of Home and Industries & Mines, Government of Gujarat, requesting the reconsideration of the decision to collect excise duty on absolute alcohol, rectified spirit, and ethyl alcohol used for industrial purposes. FGI highlighted that several member companies with RS-II licenses, issued by the Gujarat Prohibition and Excise Department, were facing hardship due to the imposition of an additional excise duty of Rs. 525 per liter (in addition to 18% GST) on inter-state purchases of industrial alcohol. The representation emphasized the adverse impact on industry competitiveness and profitability, particularly when the industry is already burdened with central excise duties. Furthermore, the Hon’ble Supreme Court of India had previously observed that state governments cannot levy excise duty on alcohol except for human consumption. The representation urged the state government to reconsider this decision for the sake of ease of doing business and to support the local industry during challenging economic times.
On 13th July 2022, FGI made a representation on behalf of its member, M/s Inox India Pvt. Ltd., regarding the issue of Export Duty on the procurement of steel from the local market to Special Economic Zone (SEZ) units. The representation requested the withdrawal of this export duty to support the industry and ensure smoother operations for SEZ units.
On 24th February 2022, FGI submitted a representation to Smt. Nirmala Sitharaman, Hon’ble Union Finance Minister, highlighting key issues faced by industrial members in the finance sector. The representation addressed concerns such as the tax treatment of Corporate Social Responsibility (CSR) expenditure, the admissibility of Input Tax Credit (ITC) under GST for CSR-related expenses, the inverted duty structure, the handling of expiry goods, the inclusion of the PAN of the deductor and the Unique TDS Certificate Number in Form 26AS, and the allowance of Input Tax Credit for constructing immovable property used for business or commerce.
On 24th February 2022, FGI submitted a representation to Shri Piyush Goyal, Hon’ble Minister of Commerce and Industry, addressing significant issues faced by industrial members in the export sector. The representation focused on challenges related to the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, Standard Input Output Norms (SION) fixation, the Export Promotion Capital Goods (EPCG) Scheme, and the Market Access Initiative (MAI) Scheme, along with recommendations for addressing these concerns.
On 24th February 2022, FGI submitted a representation to Dr. Mansukh Mandaviya, Hon’ble Minister of Health and Family Welfare, highlighting key issues faced by industrial members in the health sector. The representation included concerns regarding regulatory certifications and inspections, software glitches on the CDSCO website, the mechanism for payment of GST under reverse charge, the limit for free gifts and samples for import or export via courier, and the MSME sector’s expectation for an extension of the interest subvention scheme with expanded coverage.
On 31st July 2021, acting on the recommendations of Mr. Bharat Desai, FGI submitted a representation to Shri Piyush Goyal, Hon’ble Minister of Commerce & Industry, Shri Sarbananda Sonowal, Union Cabinet Minister, and Dr. Rahul Singh, ITS, Deputy DGFT, Vadodara. The representation highlighted critical challenges faced by exporters, including delays in MEIS (Merchandise Exports from India Scheme) applications and the persistent non-availability of empty containers required for timely exports.
On 13th October 2021, FGI made a representation to Shri Bhupendrabhai Patel, Hon’ble Chief Minister of Gujarat, urging the government’s intervention to support the establishment of a Safe Energy Corridor for the import of natural gas from the Middle East at affordable prices. The proposal, based on an article by Mr. D.P. Srivastava, Former Ambassador (IFS), advocates for an undersea gas pipeline from Oman to Gujarat, tapping into the Middle East’s vast reserves of over 3000 trillion cubic feet of gas. Gujarat, with its high demand for lower-priced gas, particularly in the power and fertilizer sectors, stands to benefit from this initiative. FGI also highlighted the potential for Gujarat-based pipe mills like Welspun and Jindal Saw to supply steel pipes, contributing to the ‘Make in India’ initiative.
On 13th December 2021, FGI made a representation to Hon’ble Prime Minister Shri Narendra Modi, addressing several unresolved policy issues crucial for the betterment of MSMEs and in alignment with the Prime Minister’s vision of Ease of Doing Business. The representation, requested by Mr. Bharat Desai, Managing Committee Member, FGI, highlighted key concerns including the inverted duty structure, implementation challenges of PLI Schemes 1 and 2, research and development expenses, export incentives, interest subvention, delays in payments from government purchasing authorities, and the need for an effective grievance redressal forum.
On 5th October 2021, FGI raised concerns with Mr. Md. Moin Afaque, Deputy Director General of Foreign Trade, regarding challenges exporters and agencies face with the new DGFT portal for Non-Preferential COOs. Issues included lack of automatic attestation for uploaded invoices and packing lists, GST charges on SEZ units, missing countries in the importing list, and restrictions on using the same invoice number for both Preferential and Non-Preferential COOs. Additionally, FGI requested the ability to add multiple invoices and packing lists, wider tabs for easier data verification, and clarification on the acceptance of online COOs post-31st October 2021. FGI also suggested a global circular to ensure acceptance of online COOs in countries like Kuwait, Egypt, Qatar, and the UAE, where manual COOs are still required.
On 9th September 2021, FGI submitted a representation to Mr. Simran Singh Tiwana, CEO of Star Air, requesting the introduction of flights from Vadodara Airport to key cities, including Mumbai, Delhi, Kolkata, Hyderabad, Chennai, and Pune. The representation aimed to enhance air connectivity, supporting the growing industrial, business, and tourism needs of Vadodara and its surrounding regions.
On 26th August 2021, FGI, at the request of Mr. Bharat Desai, Managing Committee Member and Chairperson of the FGI Export Promotion and International Trade Committee, submitted a representation to Shri Piyush Goyal, Hon’ble Minister of Commerce & Industry. The representation highlighted the exclusion of the Pharmaceutical Sector from the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, describing it as a significant setback to India’s trade competitiveness in global markets.
FGI urged the inclusion of the Indian Pharmaceutical Sector under the RoDTEP scheme, emphasizing that its continued exclusion would place exporters at a severe disadvantage internationally. This, in turn, would exert intense pressure on the industry, dent export competitiveness, and negatively impact the sector’s growth in global trade.
On 21st August 2021, FGI submitted a representation to Mr. Ajay Singh, CMD of SpiceJet Limited, urging the introduction of flights from Vadodara Airport to key cities, including Mumbai, Delhi, Kolkata, Hyderabad, Chennai, and Pune. The representation emphasized Vadodara’s strategic importance, citing factors such as the presence of top MNCs and blue-chip companies, increased tourism due to attractions like the Statue of Unity, rapid industrialization in nearby cities, and the potential for cultural tourism. These points underscored the demand for enhanced flight connectivity to support the region’s economic and cultural growth.
The Federation of Gujarat Industries (FGI) successfully advocated for reducing the financial burden of MSMEs imposed by GUVNL’s tendering requirements. As a result of FGI’s persistent efforts, GUVNL reduced Security Deposit rates from 10% to 6% and Performance Bank Guarantee rates from 10% to 6% or 5% to 3%, significantly easing compliance for Gujarat-based MSMEs. Earlier, FGI’s intervention also led to reforms, ensuring staggered deposit submissions and timely refunds, creating a level playing field for MSMEs. FGI extends its gratitude to the Government of Gujarat, Shri Saurabhbhai Patel, Hon’ble Industries Minister, and GUVNL leadership for their continued support in promoting MSME interests.
FGI submitted a petition to the Gujarat Electricity Regulatory Commission (GERC) opposing MGVCL’s proposed power tariff revision. The Federation argued that setting a common tariff for all four discoms violated the Indian Electricity Act of 2003. The discoms had requested a 25 paisa/unit increase, a proposal FGI deemed unjustified. The Federation raised several concerns, including the cross-subsidy burden on industries, transmission and distribution (T&D) losses, and the lack of metering for agricultural connections, all of which adversely impacted the industrial sector. As the filing of the petition regarding the Multi-Year Tariff (MYT) proposal did not yield results, FGI urged the Hon’ble Commission to direct GUVNL (the holding company) to file a petition based on consolidated data from all four discoms.
The FGI has submitted a representation to the Gujarat Electricity Regulatory Commission (GERC) opposing its amendment regarding the Security Deposit for consumers with a contract demand of 1 MVA or more, which allows them to furnish the deposit in the form of an irrevocable bank guarantee. In the interest of fairness to smaller industries, FGI has requested GERC to reconsider this amendment and extend similar provisions to industries with a contract demand of less than 1 MVA, as their financial capacity is significantly lower than that of larger industries.
In a proactive move to address power sector-related challenges, FGI submitted a representation to GUVNL advocating for the creation of an Energy Task Force Committee. This committee was formed to examine and resolve key issues within the sector. The following FGI members were included in the Electrical and Energy Committee, committee:
The committee’s focus is on enhancing discom efficiency and addressing technical losses. GUVNL has recognized the concerns raised by FGI and is committed to resolving these issues for the betterment of the sector.
FGI’s proactive engagement with the Hon’ble Finance Minister, Shri Vajubhai Vala, highlighted the pressing need to withdraw the amendment reducing the 2% Input Tax Credit. This amendment, introduced by the Gujarat Government due to the Central Government’s failure to compensate the State for the reduction in CST to 2%, had placed an undue burden on industries. FGI pointed out that the Government of Gujarat’s VAT revenue had already increased significantly—by up to 36%—making it feasible to provide much-needed relief to industries. Demonstrating its unwavering commitment to supporting the industrial sector, FGI persistently advocated for the repeal of the amendment, enabling businesses to sustain their operations amidst growing competitive pressures.
The Federation of Gujarat Industries (FGI) has submitted a representation to the Union Ministry of Civil Aviation advocating for an increase in the number of flights from Vadodara and an extension of Air Traffic Control (ATC) watch hours. Despite Vadodara being a central hub for road and rail communications, it lacks sufficient air links to major cities across India. FGI highlighted the inadequacy of flight services, particularly pointing out that airfare from Vadodara to Mumbai was disproportionately high compared to flights from Ahmedabad to Mumbai. The representation also emphasized the presence of numerous private aircraft stationed at Harni Airport, underlining the need for extended ATC operations to accommodate both civil and corporate aviation traffic. FGI continued to push for improved air connectivity to support the city’s industrial growth and regional connectivity.
FGI office bearers engaged in a productive meeting with Jet Airways officials, Mr. Rajkumar Bhattacharya, Manager – Key Accounts, and Mr. Harshwardhan Singh Solanki, Assistant Manager – Sales, to address critical concerns regarding air connectivity for Vadodara. FGI strongly advocated for the introduction of two additional flights—one in the morning on the Delhi-Vadodara-Delhi route and one in the evening on the Mumbai-Vadodara-Mumbai route—to enhance connectivity for businesses. The need for intra-Gujarat flights was also emphasized to improve regional access, alongside a proposal for corporate concessions to benefit FGI members. Furthermore, FGI highlighted the importance of streamlining luggage handling systems at Vadodara Airport to enhance overall travel experience. Jet Airways officials responded positively to these representations, offering a promising outlook for improved air services, which will significantly benefit the industrial community in Vadodara.
Shri K.S. Chhabra, the FGI nominee on the RAC-II Committee, attended a meeting with the RAC-II Commissionerate, where a key issue was raised regarding Trade Facility Notice No. 2/2011, dated June 14, 2011. This notice outlined the procedures for the supervision of stuffing and sealing of containerized cargo by Field Officers, which was causing confusion among exporters due to its suggested time frame and imposing additional financial burdens. FGI emphasized these concerns, and it was assured that the issue would be addressed to prevent any negative impact on the exporting community.
Shri Janak Sheth, representing FGI, attended the Grievance Cell meeting at the Office of the Joint Director General of Foreign Trade (DGFT), where he successfully raised and addressed the concerns of FGI members. Through his efforts and strong rapport with the department, Shri Sheth facilitated the closure of pending cases for industries dating back to 2008. FGI informed its members about this opportunity and encouraged them to respond promptly, ensuring they could benefit from the favourable action taken by the DGFT in resolving outstanding matters.
Shri Milin Mehta, Chartered Accountant and FGI Consultant, thoroughly reviewed and analysed key provisions of the Direct Tax Code. Based on his expert suggestions, FGI compiled a detailed representation highlighting important considerations and submitted it to the Hon’ble Union Finance Minister. The representation aimed to ensure that the concerns and recommendations of the industrial sector were considered during the framing of the Direct Tax Code, to support the growth and sustainability of businesses.
FGI submitted a comprehensive representation to the Union Ministry of Finance, incorporating valuable suggestions from its members on both direct and indirect taxation. These suggestions were forwarded for consideration during the formulation of the Union Budget proposals for 2012-13. The representation aimed to ensure that the concerns of the industrial sector were adequately addressed in the budget, fostering a more conducive environment for business growth and development.
FGI represented industries in response to a petition filed by VMC in the Hon’ble High Court of Gujarat, regarding the demand for contributions from industries towards the revamping of Sewage Treatment Plants (STPs). In 2000, VMC sought contributions totalling ₹1129 lakhs from 117 industries, with an additional ₹500 lakhs for the subsequent five years. After over a decade, the matter was revived in court. FGI raised key issues on behalf of industries, including the inclusion of all industrial units (approximately 3,000), allowing payment in instalments over three years, granting set-off for amounts already paid, revising effluent norms, and providing relief for closed units. A detailed civil application was filed by FGI’s advocate, Nanavati & Associates, to address these concerns.
FGI raised concerns at the Trade Facilitation Committee Meeting organized by the Customs Commissionerate in Ahmedabad regarding delays in the clearance of goods booked by airways. The issue was that customs authorities at Ahmedabad Airport were not clearing cargo until the draft was encashed by their nominated bank, Bank of Baroda. FGI representative, Shri Janak Sheth, highlighted this concern at the meeting, and the Customs Commissionerate took up the matter with the Ahmedabad Airport authorities for prompt resolution.
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