Construction sector to be cash cow for AP?

The Cash Strapped Andhra Pradesh after the bifurcation is trying its level best to improve its revenues. The state’s major expense in the immediate future will be the Capital Construction and it is likely to be the major source of income too. The real estate in Krishna and Guntur is on a rise due to the capital announcement and it will continue the Northward trend after the construction really begins.

Already the demand for Cement, Ceramic and asbestos increased in these districts bring good income to the government from Excise Taxes. The economy is expected to boom further if the government and the developers of the Capital procure all the raw materials for the constructions locally. Most local cement manufacturing companies are expecting 100% or more growth once the capital construction begins.

Central Excise revenues from cement industry for Guntur in 2014-2015 saw an increase of Rs. 46.36 crore, registering a growth of 14.88 per cent. In the case of ceramic products, the revenue registered a growth rate of 23.99 per cent and asbestos 25.32 per cent, indicating a marked increase in revenues.