Congress victory in Seemandhra a challenge: Jairam
VISAKHAPATNAM: Union Rural Development Minister Jairam Ramesh has made it clear that the tax incentives announced by the Centre for both the successor states of Andhra Pradesh would be given only to new investments. He also evaded answering queries on whether the incentives would be applied to the existing companies that plan more investments for expansion.
Addressing reporters during his visit to the city on Monday, Jairam admitted that winning elections in Seemandhra region would be a challenge for the Congress under the existing circumstances.
He said there were several provisions in the Andhra Pradesh Reorganisation Bill to address the concerns of the Seemandhra people, particularly the special category status for the residuary state apart from the special financial package for four districts of Rayalaseema and three districts of north Coastal Andhra. Also, there are incentives on income tax and VAT and other subsidies for 10 years for the investors.
'The five-year special category status is worth about `50,000 crore, while the special financial package is estimated to be about `10,000 crore in addition to the tax incentives,' he said.
Jairam also clarified that tax incentives would be given only to new investments to promote industrialisation in the residuary state on the lines of Uttarakhand. The Union Minister said the Centre made enough provisions in the Bill to ensure that the interests of people of Seemandhra are fully protected under any circumstances.
'The objective of the bifurcation is to meet the democratic aspirations of the people of Telangana while fully protecting the interests of Seemandhra. Despite the division, we made all provisions for the protection of Seemandhra people in Hyderabad and also announced several incentives for the development of the region,' he said.
Interestingly, he hinted that the forthcoming elections would be a challenge for the Congress in the region.
'However, no party, but the ruling Congress, can protect the interests of residuary Andhra Pradesh at both state and national levels and ensure implementation of the provisions in the Reorganisation Bill,' he said.
News Posted: 4 March, 2014
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