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Uncertainty over Telangana not yet over for industry

Uncertainty over Telangana not yet over for industry

The industries in the region still remain concerned about the ambiguity over Hyderabad and the safety and security of investments made and people working in the different locations.

Ever since the announcement of a new state of Telangana being carved out of Andhra Pradesh was made, entrepreneurs here continue to remain concerned about the future.

However, on Monday, (August 12th) Minister for Major Industries J. Geeta Reddy assured them that even if Telangana is formed, the incentives and benefits promised to industry will continue to be honoured in both states, as will be all  memorandums of understanding signed with the Andhra Pradesh government. All changes in policy will be prospective, not retrospective.

Though he expressed satisfaction over the state administration's effort to reach out to industry and allay its fears, CII AP State Chairman Ashok Reddy pointed out that concerns still remained. "The uncertainty is not yet over. Earlier, it was about division of the state and now there is ambiguity about Hyderabad ," he said.

Harish Yarlagadda, former chairman, CII, AP state, listed various issues industry had put forth before the minister and the state government following the announcement of a separate state of Telangana. These included the sharing of resources like power and water and the cost dynamics would be involved once the two states separated. For instance, the cost of power generation in the Telangana region will be cheaper than in the coastal region given that the thermal power generating units in Telangana are near the pit heads and therefore have lower transportation costs than those in the coastal region.

Industry
also wants more projects in the state to be declared 'national projects'. So far only one has been - the Polavarum irrigation project across the Godavari river. Concerns over the safety and security of investments made and people working in the different locations have also been raised. However, industry is keen to welcome any assurance from the government. This was evident when Yarlagadda referring to the industry representatives' meeting with the minister said: "This is the first meeting we have had with the government after this issue arose."