With the Industrial Investment Promotion Policy (IIPP) 2010-15 set to expire on March 31, industry associations are insisting that the government pay due attention to sustaining existing units before rolling out the red carpet to new ones.
They are demanding tough negotiations with the Centre for getting special category status conferred to the State with the hope that both existing industries and potential investors will benefit from the slew of incentives that were promised at the time of bifurcation.
Listing out a few priorities, Confederation of Indian Industry (CII) Vijayawada Zone vice-chairman G. Venkateswara Rao said basically the IIPP should not be frozen for a period of five years if the industries were to adapt to the dynamic situations. Allotment of land should be on top of the government’s agenda.
It should ideally give land on lease basis and transfer ownership only after the units go for commercial production. Preserving land should be discouraged by imposing a “delay tax” as valuable lands could be ploughed into real estate business.
The Industrial Area Local Authorities (IALA) should be given enough funds to enable them to fill the infrastructure gaps so that the existing clusters would be optimally used.
The government has to take mega infra projects on its own on a war-footing if prospective entrepreneurs are to look at A.P as an investor-friendly destination. Infrastructure is equally important for units keen on expanding capacities. Andhra Chamber of Commerce and Industry Federation Director Executive Director P. Bhaskar Rao said improving the ‘ease of doing business’ was utmost important for both the existing and new industries. New industries pinned their hopes on ‘deemed clearances’, various tax concessions and the much-awaited sops to make rapid strides in the changed scenario.
Competition from progressive States like Tamil Nadu is formidable but Andhra Pradesh should not lose hope.
Instead, it should consolidate its strengths while covering up the chinks in its armour, Mr. Rao asserted.
‘Special category status will help both existing industries and potential investors benefit from incentives promised during bifurcation’
