Incentives sought for industrial development

Industry bodies in the State submit memorandum to the government

Prospective entrepreneurs in Andhra Pradesh are seeking various fiscal incentives under the proposed ‘special category status’ for establishing their units in the vast hinterland that remains untapped for several decades.

They are favouring an industrial policy that should incorporate incentives on the lines of those enjoyed by new and existing industries in Uttarakhand and Himachal Pradesh. Industry bodies recently presented a memorandum to the State government asking for full excise duty exemption for a period of 10 years from the date of commencement of commercial production, cent per cent income tax exemption for an initial period of five years, investment subsidy of 15 per cent on plant and machinery subject to a ceiling of Rs.30 lakh and enhancement of the cap on subsidy amount from Rs.30 lakh to Rs.50 lakh for Micro, Small and Medium enterprises.

These benefits are sought to be made applicable for new industrial units and existing industrial units on their expansion in growth centres, industrial infrastructure development centres, industrial estates, export processing zones, theme parks (food processing parks, software technology parks etc.) and other areas as notified from time to time by the Central government.

A Confederation of Indian Industry representative told

The Hindu that under the Growth Centre Scheme, the Central assistance of Rs.10 crore per unit was sought to be raised to Rs.15 crore. The financing pattern of Integrated Infrastructure Development Centres (IIDC) between Government of India and SIDBI was to be changed from 2:3 to 4:1.

These and other incentives and tax concessions would accelerate the growth of industry leading to overall development, he opined.

Development of industrial infrastructure should be given due priority with emphasis on seaports while giving financial incentives to facilitate faster industrial growth in the fledgling state. While this is so, a city-based entrepreneur, who came to participate in the meeting with Chief Minister N. Chandrababu Naidu, expressed displeasure at the Government’s intent. He said that it did not reflect in deeds as the response at the local-level continued to be as lethargic as it has been for past many years. “My plan to set up an animal vaccine manufacturing unit in Kadapa district is stuck in land allotment,” he said on condition of anonymity.