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State treading growth path despite hiccups, says FTCCI
Federation of Telangana Chambers of Commerce and Industry
Being the youngest State in India since its formation in 2014, Telangana’s growth in the last eight and half years has remained impressive with various policy measures taken up by the government.
Hyderabad: Being the youngest State in India since its formation in 2014, Telangana's growth in the last eight and half years has remained impressive with various policy measures taken up by the government.
In the financial year 2013-14, when Telangana was carved out from the erstwhile Andhra Pradesh, its Gross State Domestic Product (GSDP) was Rs.5.05 lakh crore, it has been increased to Rs 13.27 lakh crore in 2022-23 based on the data furnished by the Centre in Parliament. The State has recorded an average GSDP growth rate of 8.6 percent, the third highest in the country. Although Telangana made impressive strides in economic growth with various policies such as TS-iPass (Telangana State-Industrial
Project Approval and Self Certification System) and others,there are several challenges that impact the cost effectiveness of industries and Federation of Telangana Chambers of Commerce and Industry (FTCCI) urged the government to take proactive measures to support the industrial establishments in the State.
The major problem that industries in the State face today is the trade licensing fee. Earlier, industrial establishments paid a minimum rate of licence fees between Rs.4 and Rs. 7 per sft for built up area. Previously, the fee was a maximum of Rs.7,000 for three years term as per the GOs issued by Panchayat Raj and Rural Development and Municipalities around Hyderabad city by GHMC.
However, in the post-pandemic period, it has risen exorbitantly, where a trading unit previously paying Rs.7,000 is now demanded to pay in lakhs of rupees. According to FTCCI, this is nothing but double taxation upon the industries by the government as the property tax is already calculated on the basis of area.
Speaking to The Hans India, Chairman, FTCCI, Anil Agarwal said, "No other States such as Karnataka, Andhra Pradesh and Tamil Nadu collect such exorbitant licensing fee, even if they so it is very minimal." He urged the government to look into the same and do the needful in this regard.
There are also barriers for the industries in availing Open Access Power in State as there is a delay in getting a No Dues Certificate (NDC) for the same. In many States such as Karnataka, Tamil Nadu, and Uttar Pradesh, there are no requirements for getting NDC from Discoms. The industries are unable to avail open power access, due to which the rising operational costs are placing a financial burden on the industrial units.
The power tariff levied on the industries is one of the highest in the State.
In addition to these, the industrial incentives have not been paid since 2015, although sufficient budget allocations are made in every financial year, they have not been disbursed to the industries yet. For instance, of Rs.2503 crore allocated, only Rs.32.74 crore was disbursed towards incentives. The piling up of incentives disbursements does not augur well for the economy of the State as it affects the industries financially over a period of time.
