Industry lauds TS budget

Published on March 12, 2015 20:00:05 PM
Business

-Sector to improve from 0.1% to 4% this fiscal

-Additional capacity of 19,000 MW by 2018 requires 6,000 MW per year, but the allocation made to Energy sector is only Rs 7,400 crore which needs to be enhanced.

 

The Telangana Budget for the year 2015-16 presented by the Finance minister with a total outlay of Rs 1,15,689 crore and with a revenue surplus of Rs 531 crore and a fiscal deficit of Rs 16,969 crore is commendable in its laying down of priorities.

 

The budget has kept industries as the third priority sector and industry bodies in the State welcome this announcement by the government.

Shiv Kumar Rungta, president of Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI) said, "The budget reflects the commitment of the government towards achieving rapid progress of industrial sector. It is heartening to note that the budget has allocated Rs 973.74 crore towards payment of industrial incentives for the year 2015-16 but care should be taken that the allocated amount is fully released in the year for the benefit of the industrialists.”

He further said, "It is a matter of concern that the Telangana State has faced huge shortfall in the central grants amounting to Rs 20,227 crore which affected the welfare expenditure adversely. The government must seek compensation by demanding more grants under flagship schemes and also to design State specific schemes as per their requirements. It is an encouraging sign that industry sector is estimated to improve from 0.1 per cent in 2013-14 to 4 per cent in 2014-15.”

The restoration and up gradation of road network to improve the connectivity will definitely contribute to industrial development in the long-run as infrastructure development is the key to industrial progress, particularly, good transport facilities.

 

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.

Manufacturing sector must be given a boost and revival of viable sick units must be given priority, he added. In the power sector, the additional generating capacity of 19,000 MW by 2018 requires an additional generation capacity of more than 6,000 MW per year but, the allocation made to Energy sector is only Rs 7,400 crore. The allocation to the energy sector needs to be enhanced considerably to achieve the target as power is the key input for industrial sector.

Sudhir Reddy, president, Telangana Industrialists Federation (TIF) has given 10 out of 10 marks for the State budget during an interaction on 'Reflections on Telangana State Budget' in Hyderabad on Wednesday.

 

Based on the budget allocations made by the State government, he expected more investments into the State as well as more employments opportunities in the coming years.