Telangana gives up hopes on Center’s help!

Telangana government seem to have lost hopes on the Tax incentives promised to the state in Andhra Pradesh Reorganization Act. KCR government announced its new industrial policy in November with numerous tax benefits for investors. The policy was framed keep in the media the incentives of the Central government. But Center does not seem to be moving despite many letters from the state government and now, KCR decided that the state will now give the benefits to the investors.

However such move will curb the income of the state to a great extent. Telangana government is ready to forego the income and is gearing up to release the Operational Guidelines of the new industrial policy in this month itself. It is said that KCR even mentioned that it is waste to wait till Union Budget as Center is in no mood of helping the new state.

Analysts also say that Telangana may not get any benefits from the Center in near future. Besides political reasons, since Center did not even help the deficit budget ridden Andhra Pradesh, it will be an exaggeration to expect such benefits to Telangana which inherited Surplus Budget from State bifurcation, they say.