Investors poured out their woes over power cuts, enforcement of Coastal Regulation Zone (CRZ) notification and irrational taxation measures at an interaction with Union Minister of State for Commerce & Industry D. Purandeswari here on Wednesday.

At a meeting organised by a group of entrepreneurs to appraise her of the problems faced by them, the investors vented out their anguish over restriction on power supply. However, IT units thanked her profusely for exempting them from the purview of restriction & control (R&C) measures.

Hospira Healthcare India Ltd Managing Director K.V. Raju said their project at Jawaharlal Nehru Pharma City, Parawada was expected to achieve a turnover of Rs.1,500 crore with the export of 90,000 tonne speciality injectables by 2016. The infrastructure in the city should be ramped up for shipment of the cargo from Visakhapatnam Port or else they had to send it to the US via Chennai.

Managing Director of Eisai Pharmatechnology, JNPC, Sanjit Kumar Lamba said due to introduction of new taxation, the benefits they get for locating their unit in SEZ as an EOU was getting negated.

RINL General Manager (Power) P.K. Awasthi said despite investment of Rs.12,500 crore on expansion project and payment of huge taxes, Visakhapatnam Steel Plant had been slapped a penalty of Rs.95 crore by EPDCL.

Managing Director of Hotel Novotel Varun Beach V. Prabhu Kishore sought concession in property tax for hotels being part of hospitality sector, exemption from power cuts, reduction in value-added tax (VAT) to prevent revenue leakage and 24x7 bar licence.

Visakhapatnam Hotel and Restaurant Association president Satyanarayana Raju pointed out how five per cent sales tax was levied on hotels with below Rs.1.5 crore-turnover and 14.5 per cent on those having more.

Pro-active policies

Meeting convener O. Naresh Kumar said for integrated development they wanted pro-active policies and wondered how the city could attract investors with power supply restricted and permission not granted to construct on the beach road.

Rushikonda IT Park Association president P. Vishnu Kumar Raju said Visakhapatnam had registered a turnover of just Rs.1,000 crore in IT exports compared to Rs.50,000 crore from Hyderabad. He wanted de-notification of Hill No. 2 from SEZ area and reclassification of CRZ-III into II.

Maple Software CEO Shiv Kumar, Visakhapatnam Air Travellers Association president Ch. Ramakotaiah, Vizagapatnam Chamber of Commerce & Industries secretary P.V. Narayana Rao, Zonal CII Vice-Chairman G. Sambasiva Rao, Steel Exchange India Ltd Executive Director K.V. Bhaskar and others spoke.

  • VSP slapped a penalty of Rs.95 crore by EPDCL, says RINL GM (Power)

  • De-notification of Hill No. 2 from SEZ area and reclassification of CRZ-III into II sought