Industry relieved; hopes for lasting peace in Telangana, Seemandhra
Updated: Feb 21, 2014 05:32:25pm
Hyderabad, Feb 21 (KNN) With the Telangana issue getting clichéd, the industry in both Seemandhra and Telangana today expressed hope that the much needed peace will be restored and the days of frequent strikes and bandhs will come to an end.
Different industry associations of the state felt that while Hyderabad will remain the industrial hub of Telangana, Visakhapatnam and Vijayawada will become home for new centres of development of industries such as information technology. A large number of engineering colleges are located in this area.
Commenting on the impending bifurcation of the state of Andhra Pradesh, president FSME, APK Reddy told KNN, “Yes, peace will be restored in both the areas. But there is a fear in Telangana area that naxalism will provoke and influence the society in some areas, as earlier, such as before 1985 and that the episode of Chhattisgarh will replicate in Telangana region.”
“The civil unrest in the form of the strikes and bandhs etc, will come to an end at the earliest, but there will be some unrest in residuary Andhra Pradesh, since there is a huge gap of revenue and expenditure for them and the geographical location of their capital is still to be decided. However, both Rayalaseema and Coastal Andhra people are expecting the proposed capital in their respective regions; this may lead to some minor unrest in residuary Andhra Pradesh,” he added.
As to which areas will become the hubs of industrial activities in Seemandra, President Fapsia, V Bhaskara Rao said that the area is presently the centre for agri related industries. The only major industry is Rastriya Ispat Nigam Ltd (RINL vizag steel) and the proposed incentive is establishment of a new port in PSU sector. As a result port based business is likely to increase in places other than Visakhapatnam and Krishnapatnam (Nellore district) as well.
He further said that in recent days Visakhapatnam was becoming a hub for pharmaceutical industry, and with the incentives proposed, the pharma industry may further grow in the city and avail of excise duty and other incentives.
In addition, since the Seemandhra area is primarily agri-based, the proposed incentives will increase the opportunities for the food processing industry.
Bhaskara Rao also feels that if the new Government of Seemandhra gave focus to the IT sector it would flourish in Visakhapatnam and Vijayawada areas, since it is home to a huge number of engineering graduates. Also, considering that the present Microsoft CEO Satya Nadella is from that region, with his connections the IT sector or a part of it may be established in the region.
Commenting on the power situation, Secretary, CII, Vijayawada chapter, Y Seshasai Babu, a Financial Analyst said that Telangana region is short of 4000 MW to meet their immediate requirement and another 4000 mw will be needed, if the ongoing lift irrigation schemes are completed.
“For short term of 10 years the residuary Andhra Pradesh will sell their surplus power to Telangana. However, if their requirements increase, Telangana may face huge power deficit. The only way Telangana may get power is through the recently completed North-South power corridor. The entire South India is facing a power problem and thermal power is becoming costlier day by day. The increased power shortage in Telangana area is likely to affect the Industry considerably and any increase of power tariff due to intermediary purchase, will also affect the running costs of the industrial sector,” he said.
On the possibility of relocation of industries in both the states, the three leaders feel that in the tiny, micro sector some industries may relocate, to explore their new opportunities in residuary Andhra Pradesh and avail the tax incentives etc in that region.
Most of the industries (65 per cent) in and around Hyderabad belong to residuary Andhra Pradesh and the remaining to people across the country. In those industries, the labour incentive units feel that there might be a problem from Telangana political leaders, with their involvement in Trade Unions.
As far as Hyderabad is concerned, it will remain an IT centre with major units already established there by world IT leaders such as Microsoft, Wipro, CA, Infosys, TCS etc. However, some of the units may extend their arm to Visakhapatnam and Vijayawada.
Hyderabad will remain the industrial hub, while the development of other industrial centres will depend on the policy of the new government to be formed in Telangana. The major political party in Telangana has assured that it will try to develop Karimnagar as a Textile zone, Medak as automobile zone, Nalgonda as Food processing zone and also explore regional based industrial growth. (KNN/SD/ES)
Different industry associations of the state felt that while Hyderabad will remain the industrial hub of Telangana, Visakhapatnam and Vijayawada will become home for new centres of development of industries such as information technology. A large number of engineering colleges are located in this area.
Commenting on the impending bifurcation of the state of Andhra Pradesh, president FSME, APK Reddy told KNN, “Yes, peace will be restored in both the areas. But there is a fear in Telangana area that naxalism will provoke and influence the society in some areas, as earlier, such as before 1985 and that the episode of Chhattisgarh will replicate in Telangana region.”
“The civil unrest in the form of the strikes and bandhs etc, will come to an end at the earliest, but there will be some unrest in residuary Andhra Pradesh, since there is a huge gap of revenue and expenditure for them and the geographical location of their capital is still to be decided. However, both Rayalaseema and Coastal Andhra people are expecting the proposed capital in their respective regions; this may lead to some minor unrest in residuary Andhra Pradesh,” he added.
As to which areas will become the hubs of industrial activities in Seemandra, President Fapsia, V Bhaskara Rao said that the area is presently the centre for agri related industries. The only major industry is Rastriya Ispat Nigam Ltd (RINL vizag steel) and the proposed incentive is establishment of a new port in PSU sector. As a result port based business is likely to increase in places other than Visakhapatnam and Krishnapatnam (Nellore district) as well.
He further said that in recent days Visakhapatnam was becoming a hub for pharmaceutical industry, and with the incentives proposed, the pharma industry may further grow in the city and avail of excise duty and other incentives.
In addition, since the Seemandhra area is primarily agri-based, the proposed incentives will increase the opportunities for the food processing industry.
Bhaskara Rao also feels that if the new Government of Seemandhra gave focus to the IT sector it would flourish in Visakhapatnam and Vijayawada areas, since it is home to a huge number of engineering graduates. Also, considering that the present Microsoft CEO Satya Nadella is from that region, with his connections the IT sector or a part of it may be established in the region.
Commenting on the power situation, Secretary, CII, Vijayawada chapter, Y Seshasai Babu, a Financial Analyst said that Telangana region is short of 4000 MW to meet their immediate requirement and another 4000 mw will be needed, if the ongoing lift irrigation schemes are completed.
“For short term of 10 years the residuary Andhra Pradesh will sell their surplus power to Telangana. However, if their requirements increase, Telangana may face huge power deficit. The only way Telangana may get power is through the recently completed North-South power corridor. The entire South India is facing a power problem and thermal power is becoming costlier day by day. The increased power shortage in Telangana area is likely to affect the Industry considerably and any increase of power tariff due to intermediary purchase, will also affect the running costs of the industrial sector,” he said.
On the possibility of relocation of industries in both the states, the three leaders feel that in the tiny, micro sector some industries may relocate, to explore their new opportunities in residuary Andhra Pradesh and avail the tax incentives etc in that region.
Most of the industries (65 per cent) in and around Hyderabad belong to residuary Andhra Pradesh and the remaining to people across the country. In those industries, the labour incentive units feel that there might be a problem from Telangana political leaders, with their involvement in Trade Unions.
As far as Hyderabad is concerned, it will remain an IT centre with major units already established there by world IT leaders such as Microsoft, Wipro, CA, Infosys, TCS etc. However, some of the units may extend their arm to Visakhapatnam and Vijayawada.
Hyderabad will remain the industrial hub, while the development of other industrial centres will depend on the policy of the new government to be formed in Telangana. The major political party in Telangana has assured that it will try to develop Karimnagar as a Textile zone, Medak as automobile zone, Nalgonda as Food processing zone and also explore regional based industrial growth. (KNN/SD/ES)
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