Hyderabad: Many industries are requesting additional sops over and above existing incentives of industrial policy. Interestingly the industries got permission two years ago and incentives according to the then industrial policy. Now they are requesting additional sops according to the existing industrial policy.
About 12 industries got incentives worth Rs 4,550.22 crore and now they are asking for over and above the policy worth Rs 9,573.25 crore. The empowered committee of secretaries, headed by AP chief secretary, has discussed this issue and referred to AP State Investment Promotion Board, headed by the Chief Minister.
The common request from the industries is reimbursement of 100 per cent stamp duty and transfer duty and reimbursement of 100 per cent VAT, CST and SGST paid by units on purchases of intermediate product and raw material. Some of the requests of the industries were rejected by the industrial department itself. Some of the industries have requested to reduce the cost the land allotted to them.
Vasantha Industries was established in Guntur district in 2005 and now it has decided to undertake expansion with an investment of Rs 159 crore. The company has requested outside the industrial policy to reimbursement of net VAT/CST/SGST for tax collected on end product to the extent of 100 per cent for a period of eight years.
The industries department says the request need not be considered as there is no precedence. The department said the reimbursement of net VAT/CST/SGST for tax collected on end product within entire value chain to the extent of 100 per cent for 1 period of five years.
Britannia Industries has proposed to set up a Green Field Project Biscuits and Rusk manufacturing unit with the investment of Rs 145 crore in Kuppam in Chittoor district. The company has requested 100 per cent VAT reimbursement for a period of 10 years and up to 200 per cent of fixed capital investment.
The industries department said as per the food processing policy 2015-20 50 per cent VAT/CST will be reimbursed for a period of seven years, limited to 100 per cent of the investment. The department has suggested to the Investment Promotion Board to take a view on the request of the company as being a mega project.
The industries department has referred requests of the industries within the policy and out of the policy to the State Investment Promotion Board (SIPB) to take a decision. The industries department in its report has calculated the industry and the worth of incentives within the policy and the worth of requests outside the policy.
