Friday, August 19, 2016

AP mulls offering incentives to industries in 'negative list

Hyderabad: The Andhra Pradesh government is mulling to offer industrial incentives to soft drink units by relaxing the norms of the 'negative list'. The industries department maintains a 'negative list' that includes industries, which are ineligible to claim special incentives. Such industries include non-fruit based soft drink, plastic, tobacco-based, coal-based thermal power and chemical industries. As many as 60 types of industries fall under this category. A soft drink manufacturer has proposed to set up five units in AP including one in Visakhapatnam district. The AP government recently directed the APIIC to allot 100 acres for the soft drink plant in the port city. Environment activists have opposed the unit on the grounds that it causes water pollution. The company has proposed to invest about Rs 400 crore and create jobs for about 1,200 people.

However, the company is not eligible for any kind of industrial incentive as the policy bars aerated water-based units from claiming the benefit. According to sources, the AP government has agreed in principle to grant exemption as the company promised to create over 1,000 jobs. If the government gives the exemption, soft drink units will get 100 per cent reimbursement of stamp duty and transfer duty paid by it while purchasing land. The government will also reimburse power charges at 75 paise per unit consumed during the first year of operation. It will also get subsidy on power for another four years.

When contacted, industries commissioner Kartikeya Misra said "this is a case to case basis consideration. We are looking at the incentives keeping the number of jobs that will be generated". He, however, maintained that the AP government will not amend the 'negative' list.

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