VIJAYAWADA: Union Minister for MSME Nitin Gadkari made it clear that provision of special tax incentives or any special GST concession to Andhra Pradesh is not possible, while replying to a question raised by YSRC MP YS Avinash Reddy in the Lok Sabha on Thursday.
Avinash Reddy said Andhra Pradesh has been suffering due to lack of industrial growth post bifurcation and there is severe unemployment problem in the state.
Pointing out that even the promised Special Category status was not given to Andhra Pradesh, he asked Nitin Gadkari if his ministry will provide special incentives to Andhra Pradesh such as tax exemption and provision of subsidy to MSMEs that are being set up in the State to promote industrial growth and address the unemployment problem.
The MP also wanted to know the status of the 23 proposals for the cluster development programme submitted to the ministry.
The Union Minister said it is not possible to give any special tax incentives or GST concession to a particular state. “As there is a GST Council with finance ministers from all States, even provision of a concession in the Goods and Services Tax to Andhra Pradesh is not possible,” he explained.
However, Gadkari said the Centre will extend all cooperation to Andhra Pradesh for the growth of employment and its economic development by considering the proposals from the State with regard to various clusters and other new projects.
Stating that the Centre is prioritising the MSME cluster development and even contemplating easing restrictions, Gadkari said a proposal has been made to the Chief Minister of Andhra Pradesh for the expansion of medical devices cluster, which is doing well.
“Now, medical devices worth Rs 50,000 crore are being imported. The cost of imported MRI equipment is Rs 4.5 crore and the same can be manufactured in India at Rs 98 lakh.
For encouraging manufacture of medical devices, including stents and knee Andhra Pradeshs, we have forwarded a proposal to the Andhra Pradesh CM.
VisakhAndhra Pradeshatnam cluster will be the main one and it will be linked to 5-6 clusters proposed in other States. It will create more business for the Andhra Pradesh cluster, besides generating employment,” Gadkari said.
When Avinash Reddy asked the Union Minister to consider extension of the 2 per cent interest subvention for MSMEs announced by the Prime Minister to the units which have taken credit from the Andhra Pradesh State Finance Corporation, he promised to look into the proposal.