KCR WANTS PROJECTS OFF GST LIST

Chief Minister K. Chandrasekhar Rao on Tuesday said that he would write to Prime Minister Narendra Modi seeking exemption of the schemes taken up under irrigation and drinking water projects from the Goods and Services Tax.

Mr Rao reviewed various projects on Tuesday at Pragathi Bhavan with ministers and higher officials who brought to the CM’s notice that contractors for various schemes may have to pay more under GST as granite industry and irrigation and drinking water schemes have been included in the list.

Earlier, these sectors were exempted from the Central Excise Tax so that state governments could save at least 3 to 5 per cent on overall funding of the project.

Now, these schemes are also being included under GST which will burden the state governments as it would have to pay taxes depending on the materials utilised for the schemes.

To this, Mr Rao said he would write to the Prime Minister immediately, seeking exemption.

Meanwhile, the CM said he was saddened that a few activists, who are bent upon opposing irrigation projects in the state, have decided to approach National Green Tribunal on the construction of Sundilla Barrage across the River Godavari.

He said when Supreme Court and High Court refused to entertain petitions from the activists, it was unfortunate that they now want to approach the NGT.

He told officials to counter the moves by the activists who are opposing projects in the guise of farmers and project oustees.

Reviewing various new projects taken up by the government, Mr Rao indicated to the officials that future drinking water requirements of Hyderabad city would be met from Mallannasagar project which will have 50 tmc ft capacity.