Industrial Policy attracts investors
Vanam Jwala Narasimha Rao
As on today as part of TS-iPASS, 52 industries with
a total investment of Rs. 3633 Crores to provide employment to 11, 746 persons have
been given approval letters by State Government.
Industrialization holds the potential for
fulfilling the dreams and aspirations of the people of Telangana. It
accelerates in fostering economic growth, creating employment and ushering in prosperity
to the people. Accordingly Chief Minister K. Chandrashekhar Rao and his Government
decided to bring in a new Industrial Policy that would inspire both
international and domestic industry groups, investors and entrepreneurs to
choose Telangana as their destination of first choice. Towards this the
Government first unveiled the new industrial policy framework by bringing
legislation. Prior to this industrial policies of several countries and states
in India were studied and the best one has been drafted. The stated vision for
industrialization is, "Research to Innovation,
Innovation to Industry and Industry to prosperity." The
motto of industrialization in the state is “Innovate in Telangana, Invest in
Telangana and Incorporate in Telangana”.
Chief Minister unveiled the
policy on June 12, 2015 at the Hyderabad International Convention Center (HICC)
in the presence of about 2000 specially invited industrialists from India and
abroad. In the meeting CM promised to clear industrial proposals within two
weeks of their application and also assured to facilitate basic requirements
like land, water and power. He said that the policy provides for quick, hazel
free, transparent and time bound approvals for project proposals. To realize
this, special chasing cell has been created in CM Office and is headed by a
senior officer of the rank of Principal Secretary to Government.
Telangana State Industrial
Project Approval and Self-certification System (TS-iPASS) is a “single window
without grills” for clearing all investment proposals. The Chief Minister says that
creating appropriate industrial environment is crucial for development on the
lines of welfare measures and promotion of agriculture. At a time when there is
heavy competition among states and among countries it requires expertise by
state government to attract investors. Power crisis which was a major problem
earlier is no more now. Effective planning has been made to take the state to
24,000 MW production capacity by 2018. As it is, the state has done away with
power cuts. For industrial development Telangana State and Hyderabad is in an
advantageous position compared to many states and cities. Hyderabad is in the
earthquake free and non-extreme weather zone. Adequate power, land, water and
hassle free administration is in place. Several investors are in queue to
establish industries in the state. About 1.5 lakhs of Acres of land is readily
available in the state for allotment to investors and another 5 Lakh Acres will
also be made available in due course.
Ever since K Chandrashekhar Rao became the chief
minister of the Telangana state, number of Industrialists and potential
investors within the country and abroad called on him in anticipation of an
investor friendly industrial policy that was in planning stage then. Majority
of them attended the launch program and some of them even announced then and
there, their willingness to invest in Telangana.
Chief Minister always
wanted to create a hassle free environment to entrepreneurs in obtaining
approvals and ease of doing business. He conducted series of meeting with
Industrial Associations, prospective investors and Entrepreneurs to formulate appropriate
guidelines for Single Point Approval system. In fact, the new system was in
operation on trial basis at least six months prior to the launch as Chief
Minister wanted to ascertain that the time limits are followed for issuing necessary
clearances and approvals for establishing an enterprise. CM preferred to launch
the policy only after he satisfied. As promised by the Chief Minister he personally
handed over the first phase of letter of TS-iPASS approvals to investors for
establishing 17 Industries with a proposed investment of Rs. 1500 Crores and
employment potential of 3437 persons.
The main
attraction of the first phase of TS-iPASS Approvals is the ITC promoted mega
industry. An announcement was made by the Chairman ITC at the time of launch of
TS-iPASS, that they are committed to invest an amount of Rs.8000 Crore in the
state of Telangana. Accordingly, when ITC
applied for establishing a Food Processing unit with an investment of Rs. 774
Crore in Medak District, the State Government immediately reciprocated in
issuing all the approvals to the unit in a record time of 12 days. CM among
others handed over approval letter to them also.
Telangana State is
a Pharmaceutical Hub. The state is receiving investments in this sector ranging
from Small to Large. These are: MSN Life Sciences (Bulk Drugs and
Intermediates, Nizamabad District) with an investment of Rs. 75.6 Crores
creating an employment for 570 people, Aizant Drug Research Solutions (Tablets,
Capsules, Liquid Orals, Rangareddy District) with an investment of Rs. 59
Crores creating an employment for 400 people, Solithro (Bulk Drug Intermediate
in Medak District) with an investment of Rs. 30.26 Crores creating an
employment for 200 people, Covalent Laboratories (Pharmaceutical Products,
Medak District) with an investment of Rs. 26 Crores creating an employment for
43 people and EPR Center For Cancer Research and Bio-Informatics (Bio-Tech Research
and MFG Unit, Rangareddy District) with an investment of Rs. 25 Crores creating
an employment for 110 people.
The HIL, a Birla
Group as part of their on-going expansion programme proposed to setup a CPVC
pipes unit in their existing facility at Mahaboobnagar. Duraline a US based
company shifted its manufacturing facility from Goa to Mahaboobnagar to
manufacture HDPE Conduit which caters to the needs of Tele-Communication. They
were also given approval letters. Besides these two units from plastic sector,
four units from solar sector also got approvals. Telangana state is the most
preferred destination for solar units as the radiation levels in the state are
highly productive for solar units. There is an overwhelming response from the
entrepreneurs to establish solar power generation units. Others are: Dodla
Dairy, Sneha Farms, Anjani Cements and Pioneer Torsteel Mills.
The second Phase
of TS-iPASS approvals were issued to 19 industries with a proposed investment
of Rs. 1087.40 Crore and providing employment to 5321 persons on 22nd
July-exactly a month after first phase approvals.
The
Japanese power equipment giant Toshiba
has taken over Vijay Electricals power equipment and switchgear, Medak. They, with an investment of Rs 290 Crore and providing
additional employment to 325 persons are going for expansion and got approvals.
3F Fuji Foods is investing Rs.80 Crore in the
Mahaboobnagar District for manufacturing of Non-Whipping Cream. Others are: Bhagwati Products for Cell Phone
manufacturing (Rs. 80 Crores investment and 1250 employment potential), Shrinath
Rotopack for Plastic Packaging (Rs. 165 Crores investment and 1200 employment
potential), SR Brahmas Agro Products for manufacturing
of Cotton Seed Oil,
Fortune Foam to manufacture Mattresses, Golden Leaves to setup Granite
Manufacturing unit etc.
In
phase-III of (TS-iPASS) 16 more industries including solar, pharmaceuticals,
LPG bottling, beverages, automobile tubes and tyres and other industries were
given approval letters on 6th September 2015. The total investment of
these third phase industries amounts to Rs 1,046 Crore and would provide
employment for 2,988 persons in the five districts of Medak, Mahaboobnagar,
Nalgonda, Warangal and Rangareddy. These include among others Hetero
Labs, My Home Industries, two units of Aurobindo
Pharma, Hindustan Coco-Cola Beverages and Pemmasani
Solar Power.
Telangana
Industrial policy is being discussed widely all over the world and in
particular in European countries, USA, Japan, China and Germany. It has not
only caught the attention of many but also largely appreciated. That is one of
the reasons Chief Minister Chandrashekhar Rao has been specially invited by the
World Economic Forum meet to be held in China during second week of September
2015 and to address the investors from several countries-a rare honor given to
only one CM from India. End
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