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Telangana businessmen oppose special category status to residual AP

Telangana Joint Action Committee chairman M Kodandaram said industry would not survive in Telangana if other state enjoyed SCS

BS Reporter  |  Hyderabad 

Entrepreneurs and public representatives of the region on Friday opposed the special category status (SCS) being promised to the residual state of

They said the SCS, which also comprised a host of central to industries, would de-industrialise the state by triggering the flight of capital as well as closure of the remaining units that could never compete with those who enjoyed huge tax benefits in the

“All these will form 10-15 per cent of the sales revenue of a company. It is certain that nobody will come forward to set up units in if the neighbouring state begins to offer this level of incentives. All those who have their operations in will also shift their base to Forget about the manufacturing growth here,” said J Nrupender Rao, chairman of Hyderabad-based Pennar Group.

My Home Group chairman Rameshwar Rao said the entire south India would suffer along with if the Centre accorded the SCS to

Rao and other speakers who addressed a seminar on ‘Industrial development in Telangana, problems, prospects with focus on special category status’ organised by the Industrialists Federation(TIF) here demanded the Government of India to extend similar package of incentives to maintain a level-playing field between the two states.

“The SCS states enjoy concessions in excise and customs duties, income tax rates and corporate tax rates. This factor in the hands of a non-deserving state can have a devastating effect on other states,” TIF president K Sudhir Reddy said, while arguing that does not meet even a single criterion for SCS.

Joint Action Committee(JAC) chairman M Kodandaram said the industry would not survive in if the other state enjoyed the SCS. “The Government of India had promised that the two successor states will get equal incentives. Now, they have to keep their word,” he said, while asking the political leadership of the region to make industrial development as the number one priority.

Former industries minister J Geeta Reddy, Lok Sabha member G Vivekanand and other political leaders said they would lobby and fight for the equal status in terms of incentives for the industries in

Setting up of Development Bank with a capital base of Rs 5,000 crore, a venture capital fund to support the local entrepreneurs and an entrepreneur training institute to train the budding industrialists were among several suggestions that were discussed during the event.

First Published: Fri, February 28 2014. 20:47 IST