Date:26/12/2003 URL: http://www.thehindu.com/2003/12/26/stories/2003122603720400.htm

Southern States - Andhra Pradesh

Congress hindering development: TDP

By Our Staff Reporter

HYDERABAD Dec. 25. The Telugu Desam Party (TDP) has made a frontal attack on the former Congress Legislature Party (CLP) leader, Y.S. Rajasekhara Reddy, for obstructing development by threatening the companies coming forward to invest in the State.

The Congress has become a major hurdle to investments, particularly in the IT sector, the Information Minister, S. Chandramohan Reddy, told reporters here on Thursday.

Mr. Reddy said there was not a single foreign IT company operating in the State when the TDP took over the reins from the Congress in 1994 when there were as many as 20 companies in Bangalore.

The situation underwent a sea change since then with Hyderabad registering a growth rate of 66.8 per cent and Bangalore only 49.5 per cent in IT sector during the period between 1998 and 2003. The export of IT-Enabled Services (ITES) from Hyderabad was of the value of Rs. 1,111 crores while it was only Rs. 988 crores from Bangalore this year.

The State Government showed no special favours in land allotment or in capital subsidies to the companies in IT enabled services coming to the State.

The Rahejas was allotted land by the State Government at the rate of Rs. 50 lakhs an acre while similar majors got for Rs. 20 lakhs an acre in Kerala, Rs. 5 lakhs an acre in Goa, Rs. 20 lakhs an acre in Pune, Rs. 13 lakhs an acre in Chennai and Rs. 12 lakhs an acre in Bhubaneswar. The Rajasthan Government gave land free of cost.

The capital subsidies given by the State Government were to the extent of Rs. 20 lakhs whereas the Tamil Nadu Government gave Rs. 1 crore and West Bengal Rs. 2.5 crores.