Date:03/05/2005 URL: http://www.thehindu.com/2005/05/03/stories/2005050306460400.htm

Andhra Pradesh

Progressive cut in power tariff assured

Staff Reporter

Rajasekhara Reddy goes all out to woo industrialists

ANIMATEDLY SERIOUS: The Chief Minister, Y.S. Rajasekhara Reddy, having a discussion with Onkar S. Kanwar, president, FICCI, at the national executive committee meet of FICCI in Hyderabad on Monday. Photo: Satish H.

HYDERABAD: Notwithstanding the recent 75 per cent power tariff concession given to new industrial units by the State Government for the next five years, Chief Minister, Y.S. Rajasekhara Reddy, has promised a further reduction "year-after-year" to industry to woo investments.

Addressing the national executive committee meeting of the Federation of Indian Chambers of Commerce and Industry (FICCI) here on Monday, Dr. Reddy said the intention behind the power concessions was to provide a level-playing field to industry in the State as compared to the rest of the country. Sri Lanka had shown keen interest in starting operations in the State to exploit its vast resources but the Government wanted to give the Indian industry the first opportunity before throwing the doors open to outsiders.

Fall in investments

Unfortunately, Andhra Pradesh had not been among the favoured destinations of the industry in the last five years.

The total investment fell to Rs. 4,500 crores in 2001-05 against Rs. 11,500 crores in 1996-2000, the Chief Minister said.

Dr. Reddy called upon industry to reverse this trend with whatever mechanisms under its control to see that the State got back its due recognition. The Government was prepared to do whatever was sought by industry.

Tapping K-G basin

The Chief Minister said in reply to a question from a participant that the development of gas in the Krishna-Godavari basin would be completed in a tie-up with the Reliance Industries by the end 2007 or early 2008.

The two together and possibly Oil and Natural Gas Commission (ONGC) would produce sufficient gas to meet the requirements of industry.

All districts in the State would be connected through the gas grid and the price would also be fixed at reasonable rates.

The question, however, was to create a price regulatory authority for deciding gas price. He had suggested the same to the Prime Minister, Manmohan Singh, and was hopeful that it would be set up soon.

To another question, Dr. Reddy promised to bring down to "single digit'' the transmission loss of 28 per cent paid by the windmill industry for generation of power in the State.

A leading windmill industrialist, Sarvesh Kumar, explained to him that the State had the potential of producing 5,000 out of the 45,000 MW capacity of the country but what was actually generated was only 50 to 60 MW.

Dr. Reddy promised to take up with the Tobacco Board the question of partially replacing tobacco auctions with contract farming.

He also said that the State Government had recently set up a separate department for infrastructure and investment to make industrial infrastructure in the State comparable to the best in the world.

Satyam Computers Chairman, B. Ramalinga Raju, said the company would start its operations in Vizag soon.