Leading trade and industrial organisations have hailed the Centre’s announcement to extend tax benefits to investors for a period of five years in seven districts of Andhra Pradesh.

They say that capital subsidy will help develop the backward areas of North Andhra as well as Rayalaseema.

Leaders of various bodies, Confederation of Indian Industry (CII)-AP Chairman G.S. Shiv Kumar said that the incentives would give a boost to investors in the MSME sector. Though the benefits should have been given long ago, still they would send the right signal to the investor community, he opined.

AP Chambers of Commerce and Industry Federation welcomed the announcement extending tax incentives to give a fillip to the industrial activity.

Federation President G. Sambasiva Rao said that incentives such as 15 per cent additional depreciation and 15 per cent investment allowance on the cost of plant and machinery in the manufacturing sector in line with the A.P. Reorganisation Act, 2014, were a shot in the arm, and could give the much- needed impetus to developing the region.

“At the same time, we feel that there is a dire need for extending the incentives by another five years in others sectors, especially service and tourism, in all the districts of Rayalaseema and North Andhra”, he said.

Predicting a bright future for the State due to the vast coastline and availability of several minerals, and a robust industrial base in Visakhapatnam, FTAPCCI President Ravindra Modi said that due to the proactive policies, the State was set to attract a lot of investors.

Stating that there was an overwhelming response from investors at the CII Partnership Summit organised early this year, he said incentives such as capital subsidy and ease of doing business would attract investors from all around the world to Andhra Pradesh.

Source: The Hindu