As Finance Minister Nirmala Sitharaman will be presenting the Union Budget on February 1 (Wednesday), industry captains in Visakhapatnam are of the opinion that she should primarily concentrate on the projects that are earmarked, or allotted to Andhra Pradesh under the A.P. Reorganisation Act, especially the ones in the North Andhra region, which are pending completion due to a number of reasons, including fund crunch.
Many projects such as the Central Tribal University are still pending completion.
Another aspect that needs to address is infrastructure development, they say.
Connectivity
“There is a need to scale up the infrastructure in the State. If Visakhapatnam is to be brought on a par with Hyderabad, then we need to investment on improving the road network and building more ports and airports. Connectivity is the key to development,” says O. Naresh Kumar of Vizag Development Council.
“Rail and road networks should be improved. Funds should be released and work started on a war-footing on the projects that have been sanctioned by Union Minister for Road Transport Nitin Gadkari such as seven flyovers in Visakhapatnam and the coastal corridor,” he adds.
Murali Bulusu of Sankhya Technology says that angel investments have been a key source of funding for the startups the world over. “So, in order to steer investments into startups, there is a need for tax incentives to the angels, especially in smaller cities such as Visakhapatnam,” he adds.
Another factor that has been slowing industrial growth in smaller cities is the lack of senior level resources. If there are incentives for large IT companies to spread out to smaller cities, it should make things better and accelerate growth of the industry.
With respect to GST, refund of GST collected from direct licensing of technology products from Indian firms will benefit startups in conserving funds, while encouraging domestic tech companies, he says.
Mr. Naresh also says that the incentives that are earmarked for the animation and gaming industry should be extended and provisions be made in the budget.
Pydah Krishna Prasad, president of A.P. Chambers of Commerce and Industry Federation, says certain issues in the GST should be ironed out. The Finance Minister should reduce the penalty rate for GST from the present 18-24% to 12%.
Published - January 31, 2023 08:34 pm IST
