City Beat: Budget Gives Andhra Farmers A Reason To Cheer [Video]
A measure announced in the Union Budget 2017-18 would bring great relief to the farmers in Andhra Pradesh. Presenting the Union Budget on February 1, Union Finance Minister Arun Jaitley proposed to exempt from capital gains tax those farmers whose land is being pooled to build Andhra Pradesh's new capital Amaravati. It is worth mentioning here that the land for the creation of the capital city is being pooled through an innovative land-pooling mechanism without implementing the provisions of the Land Acquisition Act. Farmers, who participated in the land-pooling scheme and were holding land at the time of Andhra's bifurcation, are entitled to enjoy the tax waiver announced in the Budget.
It is worth mentioning here that the state of Andhra Pradesh was bifurcated and another state of Telangana was carved out on June 2, 2014.
The finance minister's announcement would benefit as many as 28,000 farmers, who gave up their land for the construction of Amaravati. Apart from that, the move is likely to boost the real estate markets of Krishna and Guntur districts. According to experts, the tax relief will also encourage other states to adopt similar land acquisition policy for their large-scale projects.
Meanwhile, commercial activity in Hyderabad is growing fast. This is evident from the fact that the office space absorption in the city has been gaining momentum and the City of Nizams has emerged as the most preferred office space destination. According to a CRISIL report, Hyderabad's commercial leasing sector saw a remarkable activity, with corporations leasing six million square foot of office space across the city and its peripheries. The agency expects a similar growth in Hyderabad's commercial leasing space this year too. In the report, Hyderabad stood ahead of India's financial capital Mumbai. Last year, Mumbai saw a total office space absorption of 2.75 million square foot, while Kolkata saw an office space absorption of 1.5 million square foot.