Echoing industry’s disappointment over the delay in enacting the Goods and Services Tax (GST) Bill, Maruti Suzuki Chairman R.C. Bhargava on Friday said political establishment must re-look at measures that are clearly in national interest.
“I am sure people at large, who are concerned about the economy, will be very disappointed that due to purely political reasons, with no clear economic considerations being apparent, the GST has not been approved,” he said.
Mr. Bhargava, who was addressing shareholders at the company's annual general meeting here, said added, “I think that is very disappointing and as industry we believe that the entire political establishment must re-look at measures, which are clearly in national interest.”
Seeking reduced taxation, the auto industry has been pitching for speedy implementation of GST for a long time.
On Wednesday, the outgoing President of Society of Indian Automobile Manufacturers had expressed similar views, saying that the industry was ‘disheartened’ at the lack of political consensus on the issue. Meanwhile, Mr. Bhargava added that the delayed minority shareholders' voting on allowing parent Suzuki to own and invest in the Gujarat plant was likely to happen soon.
“The minority shareholder voting on the Gujarat plant which was delayed because we found that the government had moved some amendments in 2013 Companies Act...We thought it would be imprudent of us to vote on under an Act which is under an amendment. So, we postponed that,” he said.
Under pressure from institutional investors over the proposed takeover of its Gujarat plant by Suzuki, MSI had tweaked its proposals related to the plant and decided to seek the approval of minority shareholders for the same.
On the importance of the Gujarat plant, which will be its third, Mr. Bhargava said: “This year if we grow in double digits our capacity utilisation will become almost 100 per cent. We will be producing over 1.4 million vehicles during this fiscal.” “Certainly in 2016-17 we hope that we will somehow manage. In 2017-18 we will need the Gujarat plant.
Work is going on the plant at full swing and we will be on schedule to commission the plant,” he said.
