Hyderabad: The TS government has extended various incentives to 389 new mega industries so far, leaving the existing industries disgruntled since they are being denied the same.
Industries set up on a medium scale earlier turned mega industries over the years with expansion and are now seeking incentives on par with mega industries. Industries minister K.T. Rama Rao is said to have taken up the issue with Chief Minister K. Chandrasekhar Rao asking him to extend mega incentives to existing industries as well.
The industries department has drafted a package to revive all sick industries, especially ferroalloy units which faced closure during the last five years due to higher power tariff and power holidays.
Industries with investments worth over Rs 200 crore are categorised as ‘mega industries’. The government has offered a slew of incentives for such industries, including seed capital investment for first generation entrepreneurs, reimbursement of VAT, stamp duty, land cost rebate, land conversion cost, power cost reimbursement, training and skill development cost reimbursement, additional incentives for SC/ST, women and physically-challenged entrepreneurs.
However, the government has imposed a condition that these incentives will be applicable only to industries set up on or after January 2015 and before March 2019. With this, hundreds of existing mega industries lost the opportunity to avail the same incentives despite employing thousands of people and paying crores of rupees to government in taxes.
The Cabinet sub-committee comprising K.T. Rama Rao and finance minister Etela Rajender had met in the Secretariat on Wednesday and recommended the government to consider mega incentives for existing industries as well.
Mr Rama Rao said, “The government is positive on this issue. It was proposed to set up a special fund within the industries department to extend incentives to mega industries. Some portion of funds earned through industrial approvals under TS-iPASS could be used for this.”
He added that the government was ready to extend support for revival of Bheema Cements Ltd in Nalgonda district, provided the management comes forward to run the company on a full scale.
