The Hindu : Andhra Pradesh News : Manufacturing sector to get priority

Online edition of India's National Newspaper
Tuesday, Apr 12, 2005

Andhra Pradesh

Andhra Pradesh

Manufacturing sector to get priority

By Our Special Correspondent

Aartee Patil, receiving the FAPCCI's `Best Woman Entrepreneur' award from the Chief Minister, Y.S. Rajasekhara Reddy, in Hyderabad on Monday. At left is O.P. Goenka, president of FAPCCI. Photo: P.V. Sivakumar

HYDERABAD, APRIL 11. The Government would focus on developing the manufacturing sector and in attracting investments, both of which suffered a setback in the past decade, and strive to reverse the trend, said the Chief Minister, Y.S. Rajasekhara Reddy.

He was addressing industrialists after presenting awards at the 87th annual function of the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) on Monday.

"Let us see the facts and figures and not give rosy picture," Dr. Reddy said, drawing attention to the fact that investments in the State fell drastically during 2001-2005 to Rs. 4,500 crores. During 1996-2000, investments were Rs.11,500 crores and during 1991-1995 they were Rs. 6,500 crores.

Thrust area

"I was astonished that investment was only Rs.4,500 crores despite falling rupee value. It is a matter of grave concern, and has to be addressed," he said. It was not enough to focus on the services sector alone. The `correct order' for development was agriculture, industry and then the services sector, he felt.

Assuring focus on agriculture and investments for the next five years, he urged industrialists to get as many joint ventures as possible. The Government would ensure quality infrastructure and a "congenial atmosphere." It would continue its thrust on providing 75 paisa per unit concession in the power tariff for new industries, and in a few years try to extend it to existing industries also.

The Government would identify half a dozen infrastructure projects to be taken up by the Infrastructure Department. It was also thinking of making the Buckingham Canal navigable once again. The department would also try to create more airports.

O.P. Goenka, president of FAPCCI, wanted power at Rs. 2.25 per unit for five years, and reduction in excise duty to prevent migration of industries from the State. The immediate past president of FAPCCI, S.S.R. Koteswara Rao ,welcomed.

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