State may release a portion of incentives to industrial units

Pending incentives due to industries in the State is ₹2,100 crore

Published - July 03, 2020 10:16 pm IST - HYDERABAD

A proposal to release one, small portion of the pending government incentives to all industrial units as a measure to help them emerge from the COVID-19 triggered disruption is being readied in Telangana.

Though the State budget, presented in February, had provided ₹1,500 crore towards clearing all incentives till last year, the implemention of the same seems a tough task given the stress on revenue following the pandemic outbreak.

It is in this backdrop discussions were underway to examine the possibility of providing as an interim relief a small part of the incentives for all units. This is expected to translate into some relief in hand for the enterprises, Industries Secretary Jayesh Ranjan said on Friday.

Calculations related to the part incentive disbursal were being undertaken and soon a proposal in this regard would be presented to the Finance Department. The intention behind opting for such part disbursement of the incentives was to help everyone, in the present times of crisis, as opposed to issuing incentives in full to units based on the seniority in the waiting list. He was addressing an online session organised by FICCI on ‘Making Telangana a golden State for MSMEs’.

“Idea is to give some support to everyone,” the senior official said, explaining that once cleared by the Finance Department the proposal would be placed before the Cabinet for approval. Overall, the pending incentives due to industries in the State is ₹2,100 crore.

Adjustments

Another proposal being evaluated is that of the State government creating an instrument, based on the incentives and tax adjustments it owes to industrial units that the latter as a guarantee to seek working capital loans from banks.

“We are on the job, very shortly you will hear something,” Mr.Ranjan said, adding discussions with the State Level Bankers’ Committee (SLBC) on this were required.

On the post-COVID restart process for industries, the senior official, who was addressing a webinar organised by FICCI, said there was need for industries to explore alternatives to the migrant workers that had returned to their home States. These include training local people or automating the process.

Elaborating on the labour issue, he said had the industrial units treated them well the migrant workers would have stayed back. “If you have been nice to them, they will come back. Treat them with respect, do not deny them their rights,” he said.

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