labels: industry - general, economy - general
Industry and IT not to go on back burner: YSR Reddy news
Our Economy Bureau
15 June 2004

Hyderabad: Since assuming charge as chief minister of Andhra Pradesh Y.S. Rajasekhara Reddy, stance has been to project himself as the 'son of the soil' basically to appeal to the farmers and rural populace who proved to be the undoing of ex-cm Chandra Babu Naidu.

Thus announcements of free power to farmers and rescinding of power purchase agreements with power companies came within short succession of each other within a short time of his assuming power causing no small alarm to industry and even to prime minister Manmohan Singh.

However, in recent speeches after holding office for a little over a month he focused on areas where the future revenue is most likely to come from — Industry.

Speaking at a recent industry forum YS R Reddy's talk was all about promoting basic industry, which he said would be his government's priority along with agriculture and rural development. To spread some degree of calm among industrialists he said, "When I said agriculture and rural development was my priority, it didn't mean that industry was not my agenda. It is of no less priority for the government," he said.

He further assured the industry that the Government would do every thing required to increase FDI into the state. He said the state has received just 4 percent of the total FDI coming into the country, "a meagre Rs 1,608 crore as against a total FDIs of Rs 51,600 crore," he said.

Apart from basic industry, the IT also may have no need to worry as the IT department has been given the go ahead to look out for possible joint venture partners across the country for infrastructure development.

An internal survey, conducted by the state IT ministry with inputs from various consultancy agencies, software companies, enquiries from overseas companies, expansion of companies in both IT services and BPO/IT enabled service sector, projected investments, has sought 30 million sq ft area of basic infrastructure with necessary bandwidth, water, power and other basic facilities.

The government is said to be looking out for major infrastructure developers in the country to develop facilities not only in Hyderabad but in second-level cities such as Visakhapatnam, Vijayawada, Warangal, Tirupati and Guntur. "The government believes that infrastructure majors could not only be able to market the state easily but bring in potential customers, particularly overseas customers who seek quality infrastructure with adequate manpower to start with.

Among the measures initiated by the government are initiating talks with major infrastructure developers in the country such as Rahejas, L&T Infocity, Ascendas, DLF, Divyashree, RMZ apart from other Malaysian and Singapore companies to develop and bring in potential customers to the state.

Establishing satellite links in cities like Warangal, Tirupati, Guntur, Vijayawada, Visakhapatnam with the STPI.

With the entry of new companies such as Quallcom, NCR Corporation, 3Com, Google, Computer Associates, Computer Science Corporation, Cypress Semiconductors apart from the massive expansion of existing companies such as Satyam, Wipro, Infosys, Keane India, Nipuna and others officials in the government are certain that the state will emerge as one of the top three IT destinations in India, up from its fourth position.


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Industry and IT not to go on back burner: YSR Reddy