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| Assocham wants AP to set up nodal agency for investment issues |
| BS Reporter / Chennai/ Hyderabad Nov 06, 2009, 00:08 IST |
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The Associated Chambers of Commerce and Industry of India (Assocham) wants the Andhra Pradesh government to set up a special nodal agency with powers to settle the issues affecting investment projects.
Assocham stated that more than 42 per cent of 1,517 projects in the state, involving an investment of Rs 6,92,721 crore, were still in an announcement stage. The first quarter of 2009-10 saw completion of 18 investment projects involving an amount of Rs 38,352 crore, which account for a mere 5.5 percent of the ongoing investment.
“At this rate, it will take at least five years before the fruits of these investments are available to the public,” Assocham stated, adding that it was essential to fix a definite time line for achieving financial closure and operationalise the proposed projects.
Releasing a paper on ‘Assocham Roadmap - Double Digit Growth in AP’ here on Thursday, association president, Swati A Piramal, said the state government should recognise food processing and agriculture as high technology industry and extend necessary reliefs to this sector.
Assocham also suggested that the state government take steps for the execution of the Rs 1,590-crore Machilipatnam port modernisation project, linking the port with an eight-lane highway, setting up an inland container depot near Hyderabad, execution of the Rs 16,800-crore Vadarevu-Nizampatnam industrial corridor and revival of state finance institutes for funding small and medium enterprises.
On its part, Piramal said, Assocham would hold an ‘investmart’ in the state early next year with the twin objectives of doubling the inflow of new investments and help sort out various issues coming in the way of execution of ongoing projects.
Assocham also intends to prepare a detailed framework for propelling the state economy into a higher sphere of growth. Next month, it will be bring to the state the representatives of six South Asian countries for promoting trade and industry.
...building economic awareness campaign
The Associated Chambers of Commerce and Industry of India (Assocham) is building a national ‘economic awareness’ campaign, particularly on the proposed direct tax code, according to its president, Swati A Piramal.
Addressing a press conference here, Piramal said that the industry was seriously concerned about some of the provisions in the draft direct tax code. “The draft is a worry for everybody.”
Stating that the provision for asset-based taxation would hamper the growth in investment, Piramal said, "this means that you have to pay taxes even before you start production. This is not an international practice. Only two countries in the world, Nicaragua and Argentina, have such taxation."
Piramal pointed out that credit offtake in the country was already low because people were not investing. In such a situation, the government should do the 'reverse' instead of resorting to asset-based taxation.
She said Assocham had already represented its views to the finance ministry and she would also discuss it when she meets the Prime Minister today.
Among others, it wants continuation of the stimulus package for a couple of years, implementation of GST at 12 per cent by April 2010 and stabilisation of interest rates.
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