Business Daily from THE HINDU group of publications
Friday, Jul 14, 2006
Industry & Economy - Taxation
States - Andhra Pradesh
AP CM backs Nasscom's plea
What they say
Dr Reddy said the urban land ceiling law would be amended very soon.
These SMEs are the heart of the industry. They are the ones who are small today but would become giants tomorrow, Nasscom President, Mr Kiran Karnik, said.
New Delhi , July 13
The Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, on Thursday said that he would back Nasscom's demand for extending tax breaks currently available to the software and IT industry for some more years beyond the announced terminal year of 2009.
"Let me assure you that from my side, I have already taken up this issue with the Central Government. I will try to see that these incentives continue to be available to the industry for some more years," Dr Reddy told captains of industry at an interactive session organised by AP Invest here on Thursday.
The Chief Minister invited investors from India and abroad to invest in the State and make the most of its industry-friendly policies and administration.
Responding to queries raised on availability of large tracts of land, Dr Reddy said the urban land ceiling law would be amended very soon.
The Nasscom President, Mr Kiran Karnik, sought the Chief Minister's help in resolving certain issues faced by the industry at the level of the Central Government.
"Let me strongly express my deep concern over what would happen to the STPI scheme. This is a serious problem. Come 2009, companies are going to have a very serious problem and that problem is going to be amplified in the case of small and medium enterprises (SMEs).
"These companies (SMEs) are the heart of the industry. They are the ones who are small today but would become giants tomorrow. We should see how to encourage and facilitate their growth," Mr Karnik said.
He said that if the present arrangement came to an end in 2009, it would be a huge disappointment.
"I urge you to see if you can help us in telling the Central Government that here is a scheme that has worked wonders in the last ten years and made this industry India's number 1 exporter and biggest employment provider. Why do you want to withdraw it? We have an excellent relationship with STPI. They know our needs and we know how they function. Let's keep the scheme for some more time," Mr Karnik said.
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