| Confirming the move, B Satyanarayana, minister for major industries, said that the government may increase the power subsidy to textile and food processing industries by another 50 paise. |
| This means new units in both the sectors will enjoy a subsidy of Rs 1.25 on each unit of energy consumed. In the new Industrial Policy, the government announced a power subsidy of 75 paise for all new units across the table. |
| If the government increases the power subsidy by another 50 paise, new units will get power at a tariff below Rs 2.50 per unit. |
| According to the minister, a meeting with various industrial associations will be convened on May 28 and May 29 for the final feedback on what more can be done to encourage industrial growth. |
| The industries department is planning to add some more incentives to the new Industrial Policy announced last month. Though the new policy is effective from April 1, 2005 up to 2010, the GO (Government Orders) with regard to the incentives, which form part of the policy are yet to be issued as the department wants to add some more measures to it. |
| The government wants to give an additional push to textile and food processing sectors to ensure value-addition to agriculture produce in the state and tap the new employment opportunities that the textile sector offers to the rural folk , the minister said. |
| Recently, a consortium of textile and apparel companies from Sri Lanka expressed its willingness to set a huge production base at the port city of Vizag. |
| "As far as the new incentives package announced by our government is concerned, no other state at present matches it. Even the tax sops announced for the special category states will not hamper our investment prospects as there is little scope for them to be extended beyond 2007 due to the pressure from other states including ours," Satyanarayana said. |
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