Industry-friendly steps key for AP to get investors: CII Vizag
CII Vizag chief says AP to become an attractive investment destination, the government should consider fiscal incentives as part of its New Industrial Policy
A special focus is required on providing financial support to promote MSMEs through capital subsidy, interest subsidy, exemption from power charges to strengthen their ability to compete globally and integrate into the global supply chain - Grandhi Rajesh, CII Visakhapatnam zone chairman
Visakhapatnam: With TDP national president N Chandrababu Naidu back in the saddle as Chief Minister, the industrial bodies, who consider him as pro-corporate, hope that a conducive investment climate will be created across Andhra Pradesh by transforming Visakhapatnam into an economic powerhouse and the capital city Amaravati as an educational and tourism hub.
Confederation of Indian Industry (CII), Associated Chambers of Commerce & Industry of India (ASSOCHAM), AP Chambers and Commerce and Industry Federation and other industrialists’ organisations have exuded confidence that with Naidu’s reputation as the CEO of undivided Andhra Pradesh Inc and the person who laid strong foundation for Hyderabad emerging as an IT hub, will steer the residual State of AP into a new destination for investors. There is hope that Naidu will revive Sunrise Partnership Summits and roll out a red carpet to investors by doling out sops.
New Industries, Commerce and Food Processing Minister TG Bharat after assuming charge declared that they will emulate the success story of Gujarat by creating a conducive climate for the industries in the next five years. He said there was flight of industries during the erstwhile YSRCP rule due to wrong priorities.
In an interview to Bizz Buzz, CII Visakhapatnam zone Chairman and Integral Trading & Logistics Managing Partner Grandhi Rajesh said industry-friendly policies play a key role in attracting investments across various sectors and demonstrates the State Government’s commitment to fostering economic and employment growth.
He said to position Andhra Pradesh as an attractive investment destination the government should consider three categories of fiscal incentives as part of its New Industrial Policy. On Capital Linked Incentives, he said the State should consider subsidies on fixed capital investment, exemption or reimbursement of stamp duty and interest subvention of loans. Under Expenditure Linked Incentives: exemption or reimbursement of electricity duty, tariff rebate for power/water/gas and aid for setting up of green production measures should be introduced.
As part of Sales Linked Incentives, he suggested reimbursement of State Net/Gross GST and incentive linked to percentage of turnover.
“A special focus is required on providing financial support to promote MSMEs through capital subsidy, interest subsidy, exemption from power charges to strengthen their ability to compete globally and integrate into the global supply chain,” he stated.
Rajesh said there is quite a surge in R&D spending across the globe, with progressive human capital in Andhra Pradesh, a special emphasis to attract global players to set up R&D in the areas of automotive, electronics, mechanical engineering, scientific & biotech is required. The State could consider financial assistance for standalone R&D projects, reimbursement of 50 per cent expenditure incurred towards registration of patent, copyright, trademarks and geographical Indicators, he pointed out.