The Hindu : Other States / Pondicherry News : Yanam member seeks relief package for industries

Online edition of India's National Newspaper
Wednesday, Apr 13, 2005

Other States

Other States - Pondicherry

Yanam member seeks relief package for industries

By Our Staff Reporter

PONDICHERRY, APRIL 12. Malladi Krishna Rao (Ind.) the lone member from Yanam, an enclave of the Union Territory of Pondicherry in Andhra Pradesh, today appealed to the government to announce a package of relief and rehabilitation measures to enable industries face the situation arising out of the implementation of VAT in neighbouring Andhra Pradesh.

Participating in the inconclusive debate on Social Welfare and Industries in the Assembly, Mr Rao said that the Andhra Pradesh Government had enforced VAT from April 1 and consequently industrial units located in Yanam were forced to cut their sale prices by about 10 per cent to maintain the price levels.

The Yanam Chamber of Commerce and Industry (YCCI) had presented a petition to the government with suggestions on the relief measures the government could provide such as power and fuel subsidy to the extent of 50 percent, interest subsidy of five percent on bank loans, transport freight subsidy and cash reimbursement certificate.

He said that proper rehabilitation should be provided to industries being affected by VAT.

The implementation of VAT without abolishing Central Sales Tax (CST) would impact on the industries as all the inputs and finished goods were handled under inter State sale transactions, he said.

Mr. Rao suggested that the Directorate of Industries could study the various aspects of the industrial policies of various States to frame a better industrial policy for the sustained growth of industries here.

R.V. Janakiraman (DMK) said that he was glad that the government was encouraging industries that did not pollute environment.

But when VAT was enforced no industrialists would come forward to start industries either in Polagam industrial growth centre at Karaikal or in Electronic park in Tirubuvanai near here.

Hence the government should attract globally based entrepreneurs for industrialisation here.

A.M.Krishnamoorthy (BJP) said that the Administration should not implement VAT, as it would ruin industry. The Centre should be persuaded to exempt industries in Pondicherry from CST, he said.

Printer friendly page
Send this article to Friends by E-Mail

Other States

News Update

Stories in this Section

Pandemonium in Assembly

Yanam member seeks relief package for industries

Take steps to recognise STs: Ramadass

Houses for all tsunami-hit fisherfolk soon: Rangasamy

AIADMK member alleges sale of lottery tickets