TG govt must offer more incentives to MSME sector

There is a huge amount pending towards the disbursement of sanctioned incentives to the eligible MSMEs for almost eight years. The objective of offering incentives and subsidies to the MSMEs is to make them sustainable and competitive by reducing the costs is nullified with this inordinate delay - Anil Agarwal, former President, FTCCI

Hyderabad: As the Congress government has come to power in Telangana, there are many expectations and aspirations among the people, particularly among the business community. Bizz Buzz spoke with several stakeholders, experts and leaders of various associations to seek their suggestions and recommendations on the ways to fuel industrial growth and attract more investments into the State.

Telangana has achieved tremendous progress in ease of doing business by becoming ‘Top-ranker’ among the States in India. The State industrial ecosystem has been an attractive destination for investors. To further continue its position as one of the leading industrial hubs in the country, the State government shall focus on employment generation and backward areas for balanced industrial growth.

In this context, keeping in view the pattern of industrial progress in the State and key challenges, the present and former members of the Federation of Telangana Chambers of Commerce and Industry (FTCCI) have made some recommendations to the State government.

Anil Agarwal, former President of FTCCI, has urged the Telangana government to support the micro, small and medium enterprises (MSMEs). He asked to promote and strengthen the MSME sector in the State by providing a tax holiday, instead of reimbursing the SGST (State Goods and Service Tax) and electricity charges.

He further said, “There is a huge amount pending towards the disbursement of sanctioned incentives to the eligible MSMEs for almost eight years. The main objective of offering incentives and subsidies to the MSMEs is to make them sustainable and competitive by reducing the costs is nullified with this inordinate delay.”

“The State government must come out with suitable fiscal incentives not as a reimbursement. It should provide the incentives at the point of payment. When the power subsidy is offered – the unit should get the subsidy in its electricity bill itself, rather than paying and applying for incentive half-yearly. This will provide much needed relief, particularly to MSMEs,” Agarwal suggested.