hyderabad: The Andhra Pradesh government, directed by YS Jaganmohan Reddy, plans to junk blanket incentives and extend them only to sunrise and kind of employment generating sectors. This is a powerful shift from the previous regime's policy of doling out large industrial incentives to attract global giants.
The new developed government, which finds the large industrial incentives as troublesome
On the already financially disabled state, will reveal a new industrial policy before the next Budget, said industries minister Mekapati Goutham Reddy (in the picture), in an interaction with the ET editorial team on Tuesday.
The state has an obligation thousands of crores to industry. Terming industrial incentives as an illusion that misleads the investors, the minister said incentives adversely impact the monetary discipline of the state and that his government cannot promise large incentives that its Budget cannot afford us.
Further, he said, such unviable incentives would also adversely affect his government’s ability to meet the promises on social welfare programs. “Why there was an outstanding of Four Thousand Crores (Rs 4,000 crores) (of industrial incentives and subsidies) is basically because we (the previous regime) had overpromised. And, today, I (the new government) have to make budget provisions for all those (pending incentives and subsidies),” said Goutham Reddy. While accusing the previous regime of devising a lopsided incentive policy, the state minister said, "I would rather create incentives for sunrise industries. I rather would want to give incentives to startups setup. I would rather give incentives to multiple mass employment (sectors) like apparel parks."
