Entrepreneurs keep their fingers crossed

March 18, 2015 07:23 pm | Updated 07:23 pm IST - VIJAYAWADA:

With the Industrial Investment Promotion Policy 2010-15 set to expire on March 31, prospective 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 activity. 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 the financial crisis caused by bifurcation.

Some industrialists believe that the special category status on which industrial development of Andhra Pradesh is heavily dependent, will not come so easily due to the Central government's compulsions.

According to official sources, a good number of new industries are in a hurry to go into production mode amid apprehensions that certain benefits in the existing policy might be done away with after March 31 due to the fund constraints faced by government.

While sounding optimistic that the new industrial policy will be a better one, 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 immediate 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 Goods and Services Tax is set to be rolled out, the Central government will in all likelihood desist from offering major concessions in the Central Sales Tax and other benefits as it will create an imbalance among the States", Mr. Prasad observed.

On its part, the State government could supply power at fixed tariffs for five years, provide incentives for employment generation and take decisive action on other policy fronts without delay.

An official of the Industries Department said on the condition of anonymity that the government was treading on a difficult path because of the financial crisis faced by it. Making land available at cheaper rates will be helpful for those keen on foraying into the fledgling State. Development of seaports deserved top priority as they would attract large, export-oriented units, the official asserted.

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