With the Industrial Investment Promotion Policy 2010-15 set to expire on March 31, entrepreneurs are keeping their fingers crossed on the new industrial policy to be announced by the State government.
The industry is uncertain on whether the government would incorporate the slew of incentives it promised post-bifurcation to give fillip to the industrial sector. Foremost on the wish-list are deemed clearances and a variety of tax concessions but when it comes to fiscal incentives, the government is not expected to straightaway deliver what all it had announced as it grapples with financial crisis. Some industrialists believe that the special category status on which industrial development of AP is heavily dependent, will not come so easily due to the Centre’s compulsions. Official sources say, a good number of new industries are in a hurry to go into production mode amid fear that certain benefits in the existing policy might be done away with after March 31 owing to fund crunch. While sounding optimistic about the new industrial policy, Andhra Chamber of Commerce and Industry Federation Secretary Ch. R.K. Prasad said the government would do well to encourage small-scale industries in the future and try to attract large industries in the long term during which period the requisite infrastructure could be created.
“At a time when the GST is set to be rolled out, the Centre, in all likelihood, will desist from offering major concessions in the CST and others as it will create imbalance among the States,” Mr. Prasad said. The government could supply power at fixed tariffs for five years, provide incentives for job creation and take action on other policy fronts without delay. Making land available at cheaper rates will be helpful for those keen on foraying into the AP. Development of seaports deserved top priority as they would attract export-oriented units, said an official of the Industries Department.
