The Hindu Business Line : FAPI seeks revival of development corporation

THE Federation of Andhra Pradesh Industries (FAPI) has urged the State Government to initiate immediate steps to revive the Andhra Pradesh Small-scale Industrial Development Corporation (APSSIDC), which was wound up by the previous Government in 1999.

Mr B.V. Rama Rao, President of FAPI, said at a press meet here on Tuesday that the APSSIDC used to participate in the equity of SSIs besides extending marketing support and other help. "The Telugu Desam Government, which did not care for the SSI sector, closed it down. It is the duty of the present Congress Government to revive it for the sake of SSIs,'' he said.

He said as many as 38,000 SSIs in the State had gone sick and several of them could be revived with a little financial assistance from the banks and support from the Government.

He said the banks were unfortunately not willing to give loans again to SSIs, which had opted for one-time settlement. He urged the banks to change the policy. Referring to the rice milling industry in the State, Mr Rama Rao said the State Government had constituted a sub-committee in December for looking into the problems of the sector and he was one of the members.

"There are more than 5,500 rice mills in the State, most of them in the two Godavari districts, and 2,000 of them have become sick. The sector is in a serious crisis,'' he said.

He urged the State Government to waive the 1 per cent marketing cess on paddy and 1 per cent more levied on rice. No VAT should be imposed on rice and other foodgrains, he said. "The sector is not in a position to bear the 4 per cent VAT,'' he said.

Further, he said, the investment subsidy of 25 per cent was not being given to the rice mills set up in the State after April 1, 2004. These mills should also be given the concession, he added.

He said FAPI would organise a meet here on February 4 for the benefit of industrialists from the three north-coastal districts of Visakhapatnam, Vizianagaram and Srikakulam.

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