On the other hand, the Industries Department, after it had said on Monday that it never registered non-manufacturing units involved in peripheral activities as large or medium units, today maintained the same for the small-scale industries too.

Joint Secretary Mahesh Sharma said, “Reports received from general manager of industries in Solan, Sirmour, Una and Kangra districts say industrial set-ups which only take up activities like packaging, labeling and are not concerned with manufacturing activities in the small-scale industries sector were never registered by them.” This, Sharma emphasised, indicates that the state is not affected by the new amendment.

Meanwhile, Khushi Ram Balnatah today said, “Withdrawal of the excise exemption on peripheral activities like packing, labeling of containers and non-manufacturing industrial activity would affect the small entrepreneurs of Himachal origin. As per the special industrial package offered by the NDA government in 2003, such industrial units could get up to Rs 50 lakh excise exemption, total exemption from VAT and tax exemption up to Rs 20 lakh.”

An official spokesperson of the government, in a statement issued here, said that in case the recent notification goes against the interest of the state, the state government will take up the matter with the Central government “forcefully” so that the industrial package is implemented in its original shape. The spokesperson said all aspects of the new notification issued by the Central government pertaining to the new amendment were being studied so that the package available to the state is “not diluted”.