The Hindu Business Line : AP Chambers welcome Budget proposals

According to CII, the budgetary allocation of Rs 15,450 crore, an increase by 17.75 per cent over last year, was a move in the right direction as it talks of planned efforts of the Government towards growth and development of the economy.

"It is really heartening to note the Government's initiative to wipe out revenue deficit by 2006-07," the CII Andhra Pradesh Chapter Chairman, Mr Ramesh Datla, said in a press release.

Stating that there has been a focus on infrastructure both at the rural and urban levels, the Chamber said the budgetary allocation for R&B (roads & buildings) to the tune of Rs 1,404 crore was a welcome step. There has been a major focus on irrigation, with an allocation of Rs 6,350 crore, which would strengthen the rural economy.

Apart from these, allocation to other sectors such as urban development, education, medical and health, power and fuel and tourism was also encouraging, Mr Ramesh Datla said.

The CII also appreciated the efforts of the Government in completion of the Krishna water project, rural electrification, development of 600 Internet kiosks and development of Agri Export Zone at Guntur.

However, it said, looking at the long-term growth of industrialisation of the State, the allocation of Rs 293 crore was not sufficient at all. "For the State to become a strong industrial base the Government must look into rapid infrastructure development and for that substantial investment is required," he said.

The FICCI Andhra Pradesh Council Chairman, Mr C. Parthasarathy, also the Chairman and Managing Director of the Karvy group, in a press release, has lauded the Government for the increased budgetary allocation for irrigation, industries and handloom sectors.

The increased allocation for the irrigation sector will have multiple advantages for sectors such as agriculture and industries such as cement, iron and steel. It will also result in job opportunities for rural people, he said.

FICCI congratulated the State Government for the increased allocation of plan outlay for industries.

Mr Parthasarathy praised the Government for its initiative in setting up a seed fund for infrastructure development. However, he suggested the Government could take steps to provide easy financing to small and medium enterprises in the apparel sector. He also called for certain relaxation in labour laws, which would help the textile and apparel sectors in the State to growth.

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