INDORE: Air conditioning and refrigeration major – Blue Star on Thursday said it has put on hold Rs 220 crore investment in Jammu and Kashmir due to ambiguity over excise duty relief continuation in the State following GST levy.
Jammu and Kashmir Government has not clarified whether the relief in excise duty is going to continue in that State after the Goods and Services Tax (GST) imposition, Blue Stars Room Air Conditioners Division vice president CP Mukundan Menon told reporters here.
As a result of this, we have put on hold a Rs 220 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, 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 Rs 180 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.
Be Part of Quality Journalism
Quality journalism takes a lot of time, money and hard work to produce and despite all the hardships we still do it. Our reporters and editors are working overtime in Kashmir and beyond to cover what you care about, break big stories, and expose injustices that can change lives. Today more people are reading Kashmir Observer than ever, but only a handful are paying while advertising revenues are falling fast.