The Hindu Business Line : Trade, industry seek clarifications in industrial policy

EVEN as the State is getting ready for the new industrial promotion policy, which targets to attract over Rs 15,000-crore worth investments during 2005-10, the trade and industry have come out with a wish-list, including certain clarifications regarding the incentives proposed in the new regime.

At a meeting organised here by the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) on Monday, representatives from trade and industry wanted the Government to have a time limit of 30 days with regard to reimbursements and subsidies offered in the policy.

The list of incentives offered in the policy included reimbursement of Stamp Duty and Transfer Duty, expenses incurred for quality certification and subsidy on interest. Those companies that commenced production on or after April 1, 2005, but before March 31, 2010, were eligible for the incentives.

It also wanted the Government to replace the word `nationalised bank' with `scheduled bank', keeping in mind the fact that even some leading private banks were also addressing the working capital requirements.

Presenting the industry's point of view, Mr Purushottam Malani, a FAPCCI leader, wanted the Government to clarify on the jargon used in the policy to explain the value added tax reimbursement. It was stated that the reimbursement would be "ploughed back to the industry as a grant by the Government".

The FAPCCI suggested that reimbursement (25 per cent) could be made when the companies filed the monthly returns.

Responding to the query, Mr Sutirtha Bhattacharya, Commissioner of Industries (Government of AP), said that it was not possible for monthly disbursements. He said the reimbursement was to help the industry. It would be ploughed back by companies into their businesses.

On other queries, the Commissioner asked the Chambers to come out with specific suggestions. "We will look into your proposals," he said.