FAPCCI requested CM to Postponement of bills

A ten member delegation team from the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) inclusive of Mr. V.S. Raju, President, Mr. Devendra Surana, Sr. Vice President, Mr. Srinivas Ayyadevara, Vice President, Mr. Shekhar Agarwal, Past President, Mr. K. Bhaskara Reddy, Chairman Agriculture Committee, Mr. Meela Jayadev, Chairman, Indirect Taxes Committee, Mr. V. Anil Reddy, Chairman, Energy Committee, Mr. Anil Agarwal, Co Chairman, Energy Committee and Mr. M.V. Rajeshwara Rao, Secretary General meet the Hon’ble Chief Minister of Andhra Pradesh Mr N. Kiran Kumar Reddy, on 14^th October 2011 at CM Camp Office, Begumpet, Hyderabad to explain the ‘Effect of “Sakala Janula Samme” and Power Holidays on Industry’. The FAPCCI team also requested the Chief Minister for ‘Postponement of payment of power bills, VAT, Excise duties and bank installments’.

The Industry has already lost Rs. 8,750 crore in the last 30 days of “sakala janula samme”. The loss accounts for 2.9 percent of industry’s annual production and 0.72 percent of GSDP – a major loss to the State and its economy. Sir, the condition is most critical and grave and it is deteriorating day by day. It cannot wait any more and the prime need is 100 percent power supply. Otherwise it will collapse.

Today the industry gets power only for three days in a week with 4-hour power cut during the peak hours of the day. Effectively, the industry gets power only for 40 percent of the time in a week. So it is losing 60 percent of its productive capacity.

This has serious implications for the survival and sustainability of the industry. Many MSME units have become sick and many are on the verge of sickness. Even medium and large units are running into financial problems.

In view of the above, we request the Hon’ble Chief Minister to come to the rescue of the Industry and consider the following:

1. We request the restoration of power supply to the industry by 100 percent. Thereafter, the industry should be allowed to pay the power bills one month after the due date. Till that time the power bills should be kept pending.

2. Similarly, we request the payment of VAT to be postponed by one month after the power has been restored by 100 percent. Till such time all the tax collections should kept in abeyance.

3. There is also a problem to pay the excise duties and bank installments. We request the Hon’ble Chief Minister to write to central government authorities to postpone the payments of taxes and similar to banks as well as to the RBI for payment of installments by one month from the date of restoring the power to the industry by 100 percent.

This facility will relieve the suffering of the industry to some extent. We earnestly request the Hon’ble Chief Minister to consider it favourably.