Wahh Modiji, 20 Months to Honour a Promise Made!

Way back in February 2015, just before the Delhi Assembly elections, Central government announced incentives like 15 percent additional depreciation for the first year and 15% investment allowance (in new plant and machinery) for the next five years. It is about One Year and Seven Months since the announcement came, which back then was said to appease the Telugu people living in Delhi.

[m9ad]

But then Central Board of Direct Taxes (CBDT) had just notified the Seven Backward Districts of Andhra Pradesh under Income Tax Act. Anantapur, Chittoor, Cuddapah, Kurnool, Srikakulam, Vishakapatnam and Vizianagaram districts will entail the benefits and it will be applicable for the period of April 1st, 2015 to March 31st, 2020.

Notification taking more than One and Half Years reveal Central Government’s commitment to the state. The State Government already clarified that these incentives will be of no great use and asked at least to extend them to all the districts of the state. But the Center refused. Moreover, a backward district like Prakasam is also ignored.

On the other side, the state had asked the Center for Special Industrial Incentives to help the Industrial Growth in the area but then the center did not agree. Probably these are the only incentives the state is going to get further. The Cash Strapped State will have to bear all the incentives it gives to the industries from its own exchequer.