Rosaiah allays industry fears over Telangan unrest at FICCI meet

With the Telangana agitation casting a shadow on the Andhra Pradhesh, Indian as well as some foreign corporates are said to be exploring fresh options for their expansion plans in Hyderabad.

Acknowledging the uncertain political situation, chief minister K Rosaiah sought to allay fears during his interaction with industry representatives at the FICCI national executive meeting in Hyderabad today.

The caution of investors is likely to have an effect on the state's industrial growth rate, which has already been in steep decline due to the recession.

A delegation of IT and ITeS industry in Hyderabad called on the chief minister recently and voiced concerns over the unsettled conditions. The delegation said the industry was increasingly considering options other than AP for their expansion plans.

Also several companies are reported to be holding back investments in the state of which Asian Paints says it is in no hurry to finalise the location of its manufacturing plant in the current situation.

According to Ashwin Dani, non-executive vice chairman of Asian Paints, Andhra Pradesh being a central point in the country, the company was looking at setting up a plant there but for the moment observing the political and economic situation in the state and was in no hurry to finalise the decision.