feng4

His business plan was perfect there were few transformer manufacturers in the state, capital and land were cheap and it was Links of London too hard to get the small numbers of skilled labourers. Also, governments are liberal with subsidies and tax breaks. Entrepreneur Nisar A. Baba ProvenanceThirdgeneration trader in electrical equipment began repairing transformers in the s, now makes them Company Alba Power Performance Turnover was Rs crore in profit was per cent of this. Has employees 'The indifference of the bureaucracy in Kashmir to business very often makes me want to move out of here'So Baba's Links of London Charms, Alba Power, is profitable. But, eight years after it was set up, Alba Power has been unable to get on to the national stage, barring a few orders from Rajasthan. Alba Power's biggest worry is its production schedule. To plan for disruptions, it has to maintain big inventories. It is also hard to get technicians from outside the state. The bureaucracy is indifferent at best. "The babus in the Valley do not recognise the importance of business," says Baba. As for government incentives, Baba says they have riders that are fine for other states but have no meaning in Kashmir, and figuring and complying with them is frustrating. "Links of London Cowboy Boot Charm I wish there were no incentives," Baba rues. Even the exemption from valueadded tax or VAT? Yes. Baba points out that, to be eligible for the exemption, per cent of a unit's staff have to be locals and it is impossible to hold on to Kashmiri engineers. Businesses fail so frequently that any engineer or doctor is ready to quit the private sector for a government job even if it means a huge pay cut. Businesses have to bring in people from outside the state on short contracts at higher rates. Then, Alba Power's working capital could be cheaper but for the rule that the subsidy on the interest will be given only in a year of growing production. Baba reckons that Alba lost ` lakh as the subsidy it would have received had it not been forced this summer to stop production. Jammu Kashmir has a Links of London D Charm tax on contracts that costs Alba Power its business and limits its market. Contractors buying transformers have to pay a contract tax and the VAT. This contract tax may be credited against the VAT only if the equipment has been bought from outside the state.