The Hindu Business Line : AP to announce new industrial policy

The Governor, Mr Sushilkumar Shinde, addressing the first day of the Budget Session of the State Assembly in Hyderabad on Monday. At right is the Speaker, Mr K.R. Suresh Reddy. - P.V. Sivakumar

Hyderabad , Feb.14

THE State Government plans to bring down revenue deficit significantly over next two years by laying special emphasis on reforms with a human face. It also has plans to announce new industrial policy shortly to woo investors.

Addressing the Budget session of the State Legislative Assembly here today, the State Governor, Mr Sushilkumar Shinde, said that a new investment promotion policy would come into force from April 1, 2005.

It seeks to make domestic industry competitive and provide decisive edge to prospective investors. Adequate attention is being given to the small scale and medium sectors to provide them a level playing field.

The sugar cooperative sector units would be revived by restructuring them and modernisation, with emphasis on cogeneration and ethanol production. Government guarantees would be provided to financial institutions.

The revenue deficit, which constituted 44 per cent of the total loans raised during 1994-2004, is being brought down to 26 per cent during 2004-2005. This would be further cut to 19 per cent during 2005-2006. By 2006-2007, the entire revenue deficit would be wiped out.

Other highlights:

Committed to VAT from April 1, 2005.

Package for weavers.

Outer ring road with Rs 1600 crore.

Expediting International airport.

Financial closure of Gangavaram port by June 2006.

To continue peace efforts with Naxalite leaders.

Rs 1000 crore Krishna water project.

Stamp duty exemption for farm loans up to Rs 1 lakh.

Kharif estimates on course.

Continue thrust on housing for poor.

Abolition of user charges in Government hospitals.

Self help groups, minorities to get support.

Since mid 90's, the State has slipped into an irretrievable debt trap due to policies and the gap between the average Gross State Domestic product of the State and Gross Domestic Product of the country continues to be widening and hence reflects a disturbing trend, he said.

While reiterating the Government commitment on free power to the farm sector users, Mr Shinde said that the affordable section would partly bear the costs. Further, up to 50,000 connections will be provided every year along with the Tatkal scheme for the needy.

With regard to the irrigation sector, the Governor said, "The Government has identified 43 irrigation projects with an outlay of Rs 46,000 crore. This will also help generate about 2700 MW of power."

To harness the potential of technology sector, the Government has constituted four think tanks covering software, IT enabled services, hardware and animation. The effort is to capture about 33 per cent of national share in IT and IT ES.

Opposition leaders cutting across party lines said there was nothing new in the Budget speech and wanted the Government to implement the free power policy to farmers without any riders.

Earlier, the main Opposition Telugu Desam Party raised slogans against the Government and flashed posters. The BJP members sported posters of farmers committing suicide.

Budget on Friday: The first full-fledged Budget of the Reddy Government for the year 2005-2006 will be presented by the Finance Minister, Mr K. Rosaiah, on Friday at 12.45 pm.

The Budget session got underway on Monday, with the Governor, Mr Sushilkumar Shinde's address.

The discussion on the motion of thanks will be on February 16 and the reply by the Finance Minister is scheduled for February 28.

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