TS Inc hails Budget as industry-friendly

Hyderabad: Industrialists and industry bodies hailed the Budget presented on Wednesday by the Telangana government for the financial year 2015-16 as industrial-friendly and growth-oriented.They complimented the government for allocating Rs 973.74 crore for industrial sector and towards investment incentives, saying this budgetary support will boost confidence of micro,small and medium enterprises MSMEs and major industrial sector.

• Says it will encourage industrial growth across the State
• Underlines the need for higher outlay for power sector

“The budget has kept industries sector as third priority, which is a welcome step. It reflects the commitment of the government towards achieving rapid progress of industrial sector,” said Shiv Kumar Rungta, President, Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI). Thanking the government for allocating Rs. 973.74 cr towards payment of industrial incentives during the course of next financial year, he said, “Care should be taken that the allocated amount is fully released in the year for the benefit of the industrialists”.

According to him, the industry is concerned at the stagnant economic growth, both at domestic and international level, and the various difficulties faced by the industrial units. “This is evident from the subdued VAT collection and it needs lot of stimulus from government for the revival of economic growth,” he said.Rungta also underlined the need for allocation of more funds for the power sector as the government planned to create additional generation capacity of 19,000 MW by 2018.

Anil Reddy Vennam, Sr Vice President, FTAPCCi, pointed out that the macroeconomic indicators showed that agriculture sector recorded negative growth of 10.3 per cent which might lead to shortage of food grains and food inflation. “Measures to check hoarding of food grains should be taken, and also agriculture infrastructure need to be strengthened,” he added.He also sought encouragement for manufacturing sector and revival of viable sick units on a priority basis.

Stating the TS government had initiated several measures in the Budget for development of industrial sector, K Sudhir Reddy, President, Telangana Industrialists Federation (TIF), said the power sector which had been neglected for decades received a boost in the new Budget. Focus on Hyderabad-Warangal industrial corridor, 11000-acre pharma city, agri-business and power generation will go a long way in spurring industrial growth across the state, he added.

Reddy further said the government had given top priority for infrastructure, education, agriculture and employment generation, despite drastic reduction in financial support from the central government. “These steps are likely to support industrial gowth in a big way,” he added. A P K Reddy, President, Federation of Small and Medium Enterprises (FSME), said the budgetary allocation would encourage the MSME sector.

With continuous power supply available now, industrial sector will grow by leaps and bounds. He however urged the government to bring in Transparency Procurement Act which would provide marketing support to the MSME sector. “Government should also create a corpus fund to help the existing industrial units which are in trouble,” he said.

Sectoral Allocations Total (Rs in Cr)

Agriculture & Co.Op 6,528

Animal Husbandry,

Dairy Develop. & Fisheries 750

Agriculture Marketing

& Co-Op 605

Bc Welfare 2,172

Environment, Forest,

Science & Tech 554

Higher Education 2,162

Energy 7,400

Secondary Education 9,054

Food & Civil Supplies 2,340

Finance 20,558

General Administration 452

HM & FW 4,932

Home 4,313

Housing 874

Irrigation 11,734

Infra. & Investment 31

Industries & Commerce 974

IT & C 134

Labour & Employment 451

Law 816

Legislative 76

MA&UD 4,024

Minorities Welfare 1,105

Public Enterprises 1

Planning 830

PR&RD 13,184

Revenue 2,350

Rain Shadow Areas Devl. 1

SC Development 6,154

TR&B 5,917

Tribal Welfare 3,309

WD&CW 1,559

Youth Advancement,

Tourism & Culture 344

Total 1,15,689