The Hindu Business Line : Mixed reaction from AP Chambers

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Hyderabad March 1 The Union Budget has attracted mixed reaction from chambers and business houses representing various sectors in Andhra Pradesh. The reactions have ranged from `good' to lukewarm to disappointing.

Mr Y. Harish Chandra Prasad, Vice-Chairman and Managing Director of Malaxmi group, has felt that the Budget has been lukewarm as far as infrastructure was concerned.

While there was a great scope for merchant power plants, the Finance Minister gave no detailed proposal to encourage these units, which could well address the power shortage in several parts of the country. "There is an urgent for increasing transmission capacity by at least 25 per cent. Backed by such robust lines, the merchant plants could well supply power from the power-surplus regions to power-starving States," he said.

Welcoming the Budget, Dr G Vivekanand, Chairman of CII (Andhra Pradesh), said the focus on education, health, infrastructure and skill development were in the right direction. The emphasis on public-private partnership model for the overall growth too was encouraging.

Terming the Budget disappointing, Mr D V Manohar, Chairman of Shakti group, said the sops given to the hospitality industry in Delhi should have been extended to the whole of country, keeping in mind the severe shortage for hotel rooms.

Stating that tourism sector had received a raw deal with a marginal increase in allocations for tourism-related infrastructure development, he said the sector needed to be given infrastructure status, keeping in mind its potential for employment generation.

Mr Anil Kumar Epur, past chairman of CII (South), said major plantation crops in mango and mosambi did not get the plantation status.

Manufacturing sector upset

The All India Manufacturers' Association (Andhra Pradesh chapter) said it was disappointing for the manufacturer sector.

"The Finance Minister complimented the sector for showing a healthy growth rates in the last three years. But he has not addressed many of the issues the sector had sought relief. Customs duty has been reduced across the board, which will make imports cheaper. But no corresponding reduction has been made in respect of excise duty, rendering local manufacturing uncompetitive," the association.

Opportunity missed

Mr C Parthasarathy, Chairman of FICCI (Federation of Indian Chambers of Commerce and Industry - AP), felt that an opportunity for reaching a two-digit growth trajectory had been missed.

"The Finance Minister described manufacturing sector as the main driver of growth. But there are not many encouragements. Economy cannot just survive on service sector only," he felt.

Terming the Budget as pro-poor, Mr Ammanabolu Vijay Kumar, Andhra Pradesh Federation of Textile Associations, said the textile industry would be benefited because of the increased allocations for textile parks and insurance cover for handloom weavers.

Mr Vijay Kumar, who is also the President of AP Federation of Chambers of Commerce and Trade, criticised the Government for retaining the fringe benefit tax. "We have been asking for its removal. Instead, the Finance Minister included ESOPS in that," he said.

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