Special Package, Special Status Raise The Hopes Of Investors In Andhra Pradesh
Special Package for development In Andhra Pradesh, Special Status for development In Andhra Pradesh, Business People to invest in Andhra Pradesh, invest in Andhra Pradesh, Business in Andhra Pradesh, investment in Andhra Pradesh
The investor community has pinned high hopes on the backward area development package and special category State status promised by the Centre for the Seemandhra region.
They say once it materialises, which they want for 10 to 15 years instead of five years as announced in the Rajya Sabha during the debate on Telangana Bill, the North Andhra region will get the much-needed ‘booster dose’ for development in the field of industries and infrastructure.
Lack of clarity
“Industry’s expectation is very high but as of now there is no clarity. We want that both the package and special category State status should be given for 10 years with legal sanctity to give a fillip to the manufacturing sector ensuring a cascading effect for growth in all other allied sectors,” CII Vizag zone chairman G. Sambasiva Rao said.
Investors whom The Hindu contacted expect that besides 90 per cent in the form of grant in the funds to be released by the Centre, income tax, customs, excise, service tax and other exemptions as part of package given in hilly States, Koraput, Bolangir and Kalahandi (KBK) region of Odisha will come under North Andhra.
“If both tax holidays and special category State status are accorded and is made applicable to existing industries in addition to new units, it will lead to revival of both manufacturing and service sector in these areas,” O. Naresh Kumar, vice-president of Vizag Development Council, said.
The pharma and textile industry will boom as this will be new growth engine as the region is home to several pharma and textile units at JNPC, Parawada, Hetero Pharma City, Nakkapalli and Brandix India Apparel City, Atchutapuram. Foreign exchange earnings will automatically go up.
If tax exemptions materialise, will give a boost to the MSME sector and offer a boom time to the hotel and tourism sector, said Ramakrishna Narapareddy, president of Visakha Autonagar Small Scale Industrialists’ Welfare Association.
According to the Gadgil formula, a special category State gets preferential treatment in federal assistance and tax breaks – significant excise duty concessions. Thus, these States attract a large number of industrial units to establish manufacturing facilities within their territory leading to their economy flourishing.