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AP, T Inc seek incentives, revised NPA norms
AP, T Inc seek incentives, revised NPA norms, Incentives for electronics and hardware manufacturing, liberal NPA norms and level playing field for small and medium software companies, top the Budget 2014 wish list of industrialists and trade bodies from Telangana and Andhra Pradesh.
Hyderabad: Incentives for electronics and hardware manufacturing, liberal NPA norms and level playing field for small and medium software companies, top the Budget 2014 wish list of industrialists and trade bodies from Telangana and Andhra Pradesh.
They are also seeking increase in the limits of income tax and central excise tax exemption for the small and medium enterprises (SMEs), industry status to infrastructure, bold labour reforms and congenial environment for the growth of start-ups.
“People have lots of hopes on the Modi government. So are also the industrialists and businessmen. Many are confident that he will replicate Gujarat success across the country. The maiden Budget of the new government should have enough incentives for electronics and hardware sectors which will create lots of jobs,” J A Chowdary, Co-Chairman, Andhra Pradesh and Telangana Chapter of Ficci and Convener, Industrial Development Forum, told The Hans India. He also said that the government should announce tax incentives for electronics sector.
A seasoned expert on software industry, he further pointed out there was no level playing field for SMEs in software sector. “All big software companies are enjoying tax holidays in SEZs while small and medium ones have no such luxury. The Budget 2014 should have adequate measures to remove this anomaly,” he said.
He has also batted for the infrastructure sector which, he says, should be treated on par with other industries. “The government needs to give enough incentives for infrastructure as India requires more roads, railway network and ports for faster development,” he said.
Pointing out that bold labour and other reforms were need of the hour for the country, he said the Union Budget 2014 should have enough encouragements for startups and angle investors.
A P K Reddy, President, Federation of Small and Medium Enterprises (FSME), said industrialist sector, particularly SMEs, received a huge jolt after NPA period was reduced from six months to three months under Basel norms. “Banks are declaring scores of companies as NPAs if repayment is delayed by three months. Nearly 230 SMEs are closing every day in AP and Telangana due to the NPA problem. The Centre should initiate measures to see that no SME unit is declared NPA as most of the loans given to SMEs are backed by securities,” he said.
Concurring with his views, J Nageswara Rao, President, Federation of Andhra Pradesh Small Industries Association (Fapsia), said the Finance Minister should extend the NPA period to at least six months as the three-month period stipulated by Basel norms is not suitable for Indian conditions and culture.
Rao also said the government should increase the income tax exemption by 30 per cent from the current Rs 1.5 crore to Rs 2 crore for SMEs. “The central excise duty exemption limit also should be increase to Rs 5 crore from the present Rs 1.5 crore as cost of equipment has gone up many fold,”
he said.
