Existing firms yet to get incentives
No new industries have come up so far
By : amrita didyala
Update: 2014-12-17 06:52 GMT
Hyderabad: While the Telangana government’s new industrial policy has doled out incentives to attract new investment, the existing firms established after 2010, who were promised incentives under the 2010-15 policy, are yet to get their dues.
At least Rs 700 crore of incentives including stamp duty, power subsidy, VAT and waiver on interest are currently pending in the two states (maximum in TS). Interestingly, firm bodies say that no new industries have come up so far and the delay might be a dampener in attracting new firms.
“While the new industrial policy too has a lot of incentives like the previous one, the best part is the single window system. However, the most important thing is implementation. Even the previous 2010-15 policy was a very good one but it has not been properly implemented and the incentives promised to the firms in the policy are yet to be given by the state government,” said V. Anil Reddy, senior vice president, Federation of AP and TS Chambers of Commerce and Industry.
As per the TS state State Level Committee meeting ahead of bifurcation, a total of Rs 700 crore in incentives is due to the industries. But due to a technical flaw in the previous policy, the release of this amount has not yet started.
On one hand inspections are pending for the large investments made by firms and on the other hand there is no provision under the policy for direct transfer of the due to the owners. “There are these issues which need to be sorted out.
The GO needs to be amended so that the technical flaws are removed and the dues can be given. We have got indications from the industrial sector that they will feel more confident once they see incentives being actually handed over in time,” said source from the industrial department.
Sources also point out that the firms are now pushing for getting the old incentives which will be divided between the two states. “Mine is a self financed firm and in 2012 we went in for an expansion worth Rs 1 cr but till date I have not received my power subsidy, tax or investment subsidy.
I have been told that since there is no provision to give the incentive money to me, it has to be given to the bank, but then the expansion has not been financed by the bank. Hence, it’s a technical flaw which is coming in way of transferring the incentive.
Also since the amount is Rs 1 crore, it requires inspection. But post bifurcation, the officials have not been able to figure out whom to send for inspection,” said a plastic firm owner from Seemandhra.