Chief minister allays industry fears on power tariffs

Andhra Pradesh chief minister Y S Rajeshekara Reddy on Saturday assured the industrialists that the power tariffs in the state would not be higher than what industries in the other states were paying.

Addressing the industrialists at the 86th annual awards function of the Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci), Reddy allayed fears of the industry.

"Concerns were raised regarding the power supply and tariffs in the state, but the government assures the industry that the costs would be on par with the best in the country," he said.

Reddy said that though the priority of the government is to promote agriculture in the state, it also understood the need to develop the industries.

"Industries not only provide large scale employment but also constitutes significantly to the economy and the government would not neglect this sector," he said.

Reddy said that the state government was committed and would extend all possible support required to promote local entrepreneurs.

"Though the state receives only four per cent of the total foreign direct investment, it is not too much of a concern as the potential to develop local investment and industry is high," he added.

"The government will put in a sincere effort to develop and promote this sector and create a level-playing field," Reddy said. "Another area that the government would focus on is to provide employment through the sector and develop women entrepreneurs in the state," he said.

Reddy said that the state government would try to revive the sick small-scale industries. He asked the federation to take a proactive role to help revive the sick small-scale industries. He also urged the industrialists to promote agri-business.

Earlier, Fapcci president S S Koteshwara Rao sought the chief minister to look into the demand of the federation for the speedy implementation of the value-added tax (VAT).

"VAT is beneficial to both the government and consumers as it increases the revenue collection on one hand, and on the other it reduces the cumulative effect of multiple taxes and would be beneficial to the consumer also," he said.