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Industry calls for joint rehabilitation team in cyclone-hit areas

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A joint rehabilitation team needs to be constituted by both Union and Andhra Pradesh governments in order to provide support to the industry in cyclone-hit areas of Andhra Pradesh north coast battered by 'Hudhud', Assocham today said.

"The situation on the ground calls for the State and Union Governments to act collectively to bring back the industrial activity on the path of normalcy. "A joint 'Industry Rehabilitation Team' needs to be constituted by both the Union and state governments in order to provide support to the industry in the affected areas," Assocham said.

The extent of damages suffered by both large and small firms in the cyclone affected area points towards increased incidence of industrial sickness, the industry body said. "As it is well known, industrial sickness has direct implications for output and employment growth. It will also result in revenue loss to the Government, reduced flow of institutional finance, increase in non-productive assets etc.

Therefore, it is imperative for timely addressal of industrial sickness," Assocham National Secretary General D S Rawat said. Assocham noted that as a partial fulfillment of the provisions of the AP Re-organisation Act, 2014, the development package outlined for the residual Andhra Pradesh include a special category status for five years which envisages that investments in the state would attract tax incentives on the lines made available to other states.

Therefore, keeping these provisions in view, the investments in the affected areas need to be considered as new and must be made eligible to claim fiscal incentives, it said. In this context, Assocham suggested exemption of debt servicing for at least six months; exemption from sales tax, stamps duty & registration charges, customs duty on imports, central excise duty on goods procured, reimbursement of central sales tax paid on domestic purchase, 100 per cent income tax exemption for five years, exemption from payment of VAT and payment of royalties and cess on construction materials.

Rawat suggested introduction of single window concept for implementing the fiscal package. "For incentivising the banks/financial institutes to support rehabilitation measures, they must be given priority on cash flows/ security in respect of additional finance provided by them as a part of rehabilitation package," he added.

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