Andhra MSMEs urge for tax holiday & revival of sick units

Vishakhapatnam, Sep 13 (KNN) The union Government should give tax holiday and other incentives for entrepreneurs to set up new units in Andhra Pradesh and the state government should also make genuine efforts to revive the sick micro, small and medium enterprises (MSME)s in the state, said B V Rama Rao, President of Federation of Andhra Pradesh Industries.

While addressing a press conference here, President said that in view of the ongoing controversy over special category status (SCS) for the State, the so-called special package offered by the Centre in lieu of the SCS would be of little use to the industries in the State.

“Therefore, tax holiday should be declared for a period of five to ten years for the units coming up in the State and only then investment can be attracted into the State,” he demanded.

Pointing out injustice to Andhra industries due to bifurcation of the state, Rao further said that in the past, tax holiday used to be declared for units in the backward areas and the practice should be revived for the sake of AP.

Rama Rao alleged that it was also unfortunate that the Chief Minister was paying little attention for the revival of the sick units in the State. Several units in the State, especially jute mills and co-operative sugar factories, besides many small units, were lying closed for years and steps should be taken to revive them immediately.

Further, he urged, land should be provided to the smaller units and loans at cheaper rates of interest, at four per cent or so.

He said the Make-in-India campaign can be turned into a great success only if cheaper finance is made available to the units and industrial infrastructure is built up in the country and the State. (KNN Bureau)