The Budget presented by Mr. Chidambaram, Hon’ble Minister for
Finance has nothing to incentivize and promote industrial growth and has not
provided for any tax incentives to benefit MSME sector.
Budget is mainly aimed
at increasing the potential growth rate to 8% which has recorded only 5% for
2012-13. Regarding the proposed industry corridors to be developed in the first
half of FY-2013 namely Chennai-Bangalore industrial corridor and Bangalore-Mumbai
industrial corridor FAPCCI stated that they do not benefit Andhra Pradesh state
except for a small portion of the border Districts like Chitoor.
However allocation of one major port to Andhra Pradesh is on
positive side. It is disappointing to note that the road projects are awarded
to Gujarat, Madhya Pradesh, Maharashtra, and Uttar Pradesh.
The proposed 15% of investment allowance to the companies
investing Rs. 100 Cr are more in blank and machinery during the period 14 /2/2013
to 31/3/2015 will not benefit medium or most of the large scale industries this
seems to be targeted at attracting FDI into the economy.
No announcement was made on development of National Water Way
No.4 which benefits the Andhra Pradesh.
Thou power is in shortage all over the country and the power
scenario is not improving no specific measures were announced to improve power
situation in the country except to say that guidelines for financial
restructuring of DISCOMs have been announced.
The announcement that Oil and Gas exploration policy will be
reviewed and also Price Policy will be reviewed brings some hope to Andhra
Pradesh and we expect to have more allocations for the state.
The proposal to retain the benefit of preferences with the Small and medium enterprises for 3
years after they graduate to higher category is a welcome step but keeping in
view the amount of investment required and the cost of the credit it should be
for a longer period i.e., from 5 to 7 years.
Fapcci welcomed the importance and
extension of the sectors for skill development given in the Budget proposals.
The proposed 1% Tax Deduction at Source
(TDS) on transfer of immovable property worth over Rs 50 lakhs will affect the
middle income groups adversely.
FAPCCI is disappointed to note that there is no clear cut
direction on GST. Work on Draft Constitution Amendment Bill and GST Law
expected to be taken forward.
FAPCCI feels that Crop loans scheme
must be implemented throughout the year to protect the farmers. The scheme shall be applicable to all those
farmers who have obtained short term crop loans from scheduled banks. Watershed
management scheme is very crucial to increase the crop productivity as well as
land. More funds are required under this scheme.
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