AP okays new tourism policy
The Cabinet gives 100 crore to revive MSMEs, create more jobs
The Andhra Pradesh Cabinet has approved new policies for tourism, small, medium and micro industries, fisheries and e-procurement apart from some more decisions. The Cabinet meeting was held about 8 hours on Tuesday at Secretariat.
After the Cabinet meeting, ministers K. Atchannaidu and Prattipati Pulla Rao told the media that the Cabinet had decided to allow transfers on administrative grounds in all departments from May 15 to 31.
The MSMEs Policy, Mr Pulla Rao said, provided for 100 per cent VAT/CST/SGST reimbursement for 5 years from the commencement of commercial production apart from a slew of other benefits.
He said the Cabinet had decided to set up a `100 crore revival fund to support revival of sick MSMEs and additional employment generation, apart from others.
In the tourism policy, Mr Pulla Rao said, the government would provide a percentage of the value of investment as incentives.
Apart from exemption of VAT, CST and SGST, the gov- ernment would give industrial status to tourism projects and power would be supplied at the rate of Industrial power.
He said the government had identified 12 categories like beach tourism, heritage hotels, golf courses, botanical and others. He said the aim is to attract `10,000 crore investment in the tourism sector. Projects would be taken in the PPP and Swiss Challenge mod- els.
He said the Cabinet had decided to establish tourism, agriculture, horticulture and animal husbandry universities.
Regarding the e-procurement policy, Mr Pulla Rao said the rates will be revised every six months.
The government would follow the Swiss challenge, PPP and open auction systems.
He said the Cabinet has decided to develop coffee plantations in one lakh acres at the cost of `560 crore.
He said the Cabinet had decided to constitute an experts committee to submit a report on the functioning of microfinance institutions.
Regarding the Agro Gold scam, the minister said the company owed `8,000 crore to investors and it had assets worth `12,000 crore. He said the government was taking legal opinion to repay the investors by selling the company’s assets.
Mr Atchannaidu said the Cabinet had discussed the ongoing RTC staff strike for about an hour. He said Chief Minister N. Chandrababu Naidu had asked the Cabinet subcommittee to talk to RTC staff unions regarding their demands, and he would take a final decision.
Asked if the Andhra Pradesh government would follow suit if the Telangana government gave 43 per cent fitment to RTC workers, Mr Atchannaidu said Telangana was the richest state and Andhra Pradesh was facing financial problems. He said government will give a respectable fitment to the workers.