Industry bodies hail Budget

The Confederation of Indian Industry (CII) in Andhra Pradesh has welcomed the Union Budget by stating that it is growth-oriented and shows the government's commitment to push forward the reform agenda.

According to M K Patodia, vice-chairman, CII-Andhra Pradesh, adequate thrust has been given to the textiles, sugar and fertilisers industries.

"Measures like reduction in customs duty on textile machinery and government's efforts to bring down the revenue and fiscal deficit are appreciable," Patodia said, according to a press release.

Anil Kumar Epur, past chairman, CII-southern region welcomed the thrust given on agri credit, micro irrigation and agri research.

"The removal of customs and excise duties on kerosene and LPG is a step in the right direction," D V Manohar, past chairman, CII-Andhra Pradesh and chairman, Shri Shakthi group said.

Harish Chandra Prasad, managing director, Lanco Kondapalli Power and convenor, infrastructure panel, CII-Andhra Pradesh, however, said, "The government should have taken a serious view on the transmission of power from the power surplus states to the deficit ones."

Meanwhile, the Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci) has welcomed the Union Budget and has stated that it is a growth-oriented Budget with a welfare objective. It has, however, criticised the imposition of four per cent countervailing duty on IT products and has also asked for greater measures on the FDI and the disinvestment front.

Speaking at a press conference, O P Goenka, president of Fapcci, said, "The budget has addressed the welfare issues by allocating funds for education, health, family welfare and rural electrification. The excise duty turnover limit for the small scale industry units has also been increased by Rs one crore to Rs four crore, which is a welcome move."

"This apart, the definition of securities has been amended to include mortgage debt and derivative contracts as well. Stamp duties on commercial paper has also been waived," Goenka said.

"Corporate tax has been reduced to 30 per cent from 35 per cent. But reduction of depreciation rate from 25 per cent to 15 per cent will discourage new investment in plant and machinery," he added.

The four per cent countervailing duty on imported IT products is also a retrogative step and does not conform to international standards. It might become a precursor for all imported items in future," Goenka said.

"We were also expecting some immediate measures on the disinvestment and the FDI front. These issues should have been addressed as well," he added.