Financial Daily from THE HINDU group of publications
Wednesday, Nov 03, 2004
Industry & Economy
`New industrial policy to fetch more investments'
Hyderabad , Nov. 2
THE State Government will soon come out with a new industrial policy to make the State an attractive investment destination.
The new policy envisages cutting down on power costs drastically to the industrial sector. "We are trying to make the tariff lowest in the country," Mr B. Satyanarayana, Minister for Major Industries, said.
Addressing a gathering to mark the Small Scale Industries Day-2004 here on Tuesday, the Minister said the Government's aim is to develop all the sectors and not just agriculture.
He said the new policy would attract investors to the State.
Referring to the revival of the SSI sector, he said the expert panel set up by the Government had identified 280 units for revival.
"We will come out with a comprehensive revival scheme for the sector," he said.
On the high interest rates charged by the AP State Financial Corporation for the SSI loans, the Minister said the Government had directed the Corporation to extend loans at 10 per cent. "We will subsidise the remaining amount," he said.
Appreciating ALEAP (Association of Lady Entrepreneurs of Andhra Pradesh) for taking initiative to launch a credit guarantee scheme for women, the Minister said the Government plans to expand the scheme to rest of the State.
On exclusive industrial parks for women, Mr Satyanarayana said such parks would be set up in all major cities. "Visakhapatnam, Guntur and Tirupati would be the immediate locations," he said.
Earlier, the Minister presented `Pearls of Andhra Pradesh' and `PMRY Awards' to SSI entrepreneurs.
Mr Manchukonda Prakasham (Manchukonda Prakasham and Company of Gudur) won the first best `Pearl of Andhra Pradesh' award.
The Federation of AP Small Industries Associations (FAPSIA), which co-sponsored the event along with the Industries Department, appealed to the Government to bring out a `Small Business Enterprises Bill', pending for the last three years.
Mr S.S. Raju, President of FAPSIA, suggested that excise duty should be exempted for SSIs with a turnover of less than Rs 3 crore. "This is very important to make SSIs competitive."
The Government should set up a public platform to redress grievances on value-added tax.
With regard to credit support to those units that opted for one-time settlement in the past, Mr Raju said such units were being treated as untouchables by other banks under the present RBI guidelines.
"Unless the RBI is influenced, the Government's bid to rehabilitate sick SSI will not have the desired effect," he observed.
Responding to this suggestion, the Minister said the Government would take up this issue with the RBI.
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