Financial Daily from THE HINDU group of publications
Thursday, Jul 01, 2004
Industry & Economy
AP Govt meet on SSI revival next week
Visakhapatnam , June 30
THE State Government has convened a meet on July 6 in Hyderabad to formulate a draft policy for the revival of sick small units in Andhra Pradesh, estimated at 38,000 out of the total of 1,43,867, according to Mr B.V. Rama Rao, President of the Federation of Andhra Pradesh Industries (FAPI).
At a news conference on Wednesday, he said that SSI entrepreneurs should take the opportunity and attend the meeting with the requisite revival proposals.
The new Government is keen on helping the small units and as in other States it should give sales tax holidays and other incentives for the new units.
Mr Rama Rao said that he had recently met the Union Finance Minister, Mr P. Chidambaram, and submitted a memorandum on behalf of FAPI.
The current limit of Rs 1 crore should be enhanced to Rs 5 crore in view of the rising costs and credit should be provided to the units at cheaper rates, he added.
"The State financial corporations are not of much use and should be scrapped.
"Instead, SIDBI should open branches at the district level and disburse credit to the units directly instead of relying on refinance."
The FAPI has welcomed the introduction of VAT from April 2005 and urged the trade to have no apprehensions on the tax regime.
Mr Rama Rao said that GAIL should first ensure gas linkage to the units in the Krishna-Godavari basin for captive generation of power in the local units and then supply the remaining gas to other areas.
"This will be of great help to the local units and the State Government should take up the issue with the Union Government.'' The units will be able to generate power at a cost of Rs 2 or so per unit.
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