While states like Haryana and Andhra Pradesh are insisting on locals only for jobs in private companies, experts and analysts said it would be in fitness of things to link subsidies withjob creationas a condition to promote EMPLOYMENT potential.
Data shows that approximately 1,880 eligible manufacturing units in Telangana have claimed to have provided 1.93 lakh jobs in the last seven years. This would imply that each unit has generated approximately 100 jobs.
According toYerramraju Behara, a board member ofTelangana Industrial Health Clinic Limited(TIHCL), companies claims on jobs should be taken with a pinch of salt because the standard Industry norm now is for every crore worth of investment, six jobs should be generated in an MSME.
The State Government has sanctioned Rs 1,365 crore as an SGST reimbursement subsidy with the exception of 40 types of industries. The rest of the MSMEs in the state are eligible for the incentives. Units are eligible for a variety of incentives, ranging from land cost subsidies to power subsidies and SGST reimbursement. The next instalment payment proposal of Rs 600 crore is ready from this Rs 1,365 crore.
Another estimate is that job creation can be considered good by manufacturing units when 7 per cent or more of the cost of production is spent on human Resources.