Hyderabad: Public Accounts Committee (PAC) chairman and YSRCP MLA Buggana Rajendranath Reddy has listed the benefits that would accrue from Special Category Status (SCS) for Andhra Pradesh.
He said despite his decades long experience in politics, Chandrababu doesn’t seem to know the benefits of the Special State Status.
Elaborating the various benefits from special status, Reddy explained: “Centre generally offers grants in the ratio of 70:30 to states, but it would be 90:10 for states with special status. Hence, states with special status get 90 per cent grant from the Centre and remaining 10 per cent as loan. Industries get 100 per cent excise duty exemption. In addition, we can also get CenVAT input credit as well. Which means, on a Rs 100 worth product, Rs 12 worth of central excise duty will be exempted. Equivalent to excise duty, Rs 12 input credit can also be availed. Income tax is also totally exempt for states with special status. We also get 30 per cent subsidy from the Centre on investments.”
Buggana further narrated the benefits of special status. He said: “Companies will also get insurance premium totally back from the Centre. For instance, if a company pays Rs one crore premium on its Rs 100-crore industrial unit, it would get back entire premium. Industrial sector will also get transport subsidy. The Centre will bear the freight charges on raw material transportation.”
Reddy further slammed Chandrababu Naidu over his statement that northeastern states did not make any substantial progress because of the special status. Reddy askd whether Chandrababu Naidu knows how horrible weather conditions are in northeastern states.
“People in those states are surviving just because of special status only,” said Buggana. In addition to quota in central excise, service tax and customs, states with special status will also get grants, subsidy and loans that would transform the economy into a totally growth-driven one, said Buggana.