Singapore: Visiting Telangana Chief Minister K Chandrashekhar Rao today said he would like India's newest state to grow along the lines of ‘Singapore model'. “Í am impressed by the zero corruption, the discipline, the time management (in Singapore)”.
“After witnessing the best in Singapore, I have no doubt in my mind that the state of Telangana can be developed on similar plans,” Rao said addressing the Indian Institute of Management conference (IIMPACT-2014) here.
“The government will offer the best incentives to investors than any other state in the country”. Industries across the spectrum could avail the tax benefit, the Chief Minister said.
In response to a question on the percentage of tax in the likely “pioneer status” for investors, he said: “I don't say the percentage, but it would be lower than any other states.” To attract investments, all the states in India give various kind to incentives to investors.
“(But) I have studied the incentives that are offered by the neighbouring states, my government will come up with a package of incentives that are much better than what is being offered by other states,” he said.
He also dismissed concerns over power shortage in the state, assuring that his administration would overcome this critical requirement of the industries in 2-1/2 to 3 years.
“We will overcome the power shortage in 2-1/2 to three years,” he said after addressing the conference. “By the time your industry comes up, we will have power surplus,” Rao added.
Rao also said that he was aware of the fact that industrialization was the lead for fostering economic growth and was pressing ahead for the massive development required in Telangana that came into existence in June.
Experts familiar with Indian corporate tax, which is about 35 per cent, said Indian states need to make investment “very competitive to attract investor dollar”.
Tax incentives for pioneering investors are about 10 per cent in some of the investment seeking states in South East Asia, led by Singapore, a corporate tax official said.
