As the public impression gains ground that the BJP government at the centre is also showing the congress symbol of an “empty hand” to Andhra Pradesh, Central government took a small step and has released Rs 500 crore for Andhra Pradesh as `ad hoc support’ to bridge the resource gap for the current financial year as well as Rs 350 crore as special development package for the backward areas in Rayalaseema and north coastal districts. While announcing Rs 500 crore, the Centre said this was only by way of an ad hoc support for the current financial year.The four districts of Anantapur, Chittoor, Kadapa and Kurnool in Rayalaseema and three districts of Visakhapatnam, Vizianagaram and Srikakulam in north coastal Andhra will get Rs 50 crore each for development activities for 2014-15.
- Accordingly, the manufacturing units set up in the backward region are to be given 15 per cent additional depreciation on new plant and machinery in the first year of installation.
- Besides, an additional investment allowance of 15 per cent is to be given to industries set up in the backward regions for investments made in new plant and machinery in any of the 5 years for which additional concession would be notified.
- Even if the investment is made in the 5th year, the investment allowance would be available, the finance ministry press release said.
- The additional depreciation allowance and investment allowance will be provided without insisting on an investment of above Rs 25 crore, the Centre said.
These concessions have been granted under Section 94 (1) of the AP Reorganisation Act by which the Centre has to provide appropriate fiscal measures including tax incentives to the successor states to promote industrialisation and economic growth in both the states. Therefore, these industrial concessions will apply for Telangana as well.