Power projects in AP are lying idle because of the non-supply of gas, says Kiran Kumar Reddy.
Chief Minister N Kiran Kumar Reddy, on Tuesday, blamed gas companies for the ongoing power crisis in Andhra Pradesh.
Speaking at a session titled "Advantage Andhra Pradesh" of the National Executive Committee meeting of the FICCI held in Hyderabad, the CM said that AP was not a power shortage state, and that power projects were lying idle because of the non-supply of gas.
"Before last year, we were the state with the least shortage," he claimed.
Further, he said that the power grid from North to South was not connected, and that this was also one of the problems. However, he said that the Power Grid Corporation has promised to solve the problem by 2013.
"Don't worry about the power problem in future," the CM said to the industrialists present, "Though there are lots of apprehensions, we are supplying free power to about 30 lakh agricultural pumpsets. The power subsidy today is Rs. 5,500 crore, which includes farmers and low income households," he said.
The CM spoke about the state government's MoU with GDF Suez LNG UK Ltd., a wholly owned company of GDF Suez, for the setting up of an RLNG Floating Storage Re-Gassification Unit (FSRU) Terminal. The FSRU will be the first of its kind in India, and will be established in the Kakinada Sea Port, Kiran Kumar Reddy said.
Stating that Andhra Pradesh has the best industrial policy in the country, he said theb industry plays a key role in the successful implementation of the state's employment generation program, Rajiv Yuva Kiranalu. He also emphasized the need to recruit local people for industries.
The CM said that the Partnership Summit held in January 2012 in Hyderabad was successful, and that it saw MoUs worth Rs 6.50 lakh crore being signed by various investors. He claimed that the total employment likely to be created through these MoUs would be about 6,78,597. He said that even before the summit, the SIPB chaired by him had cleared projects worth Rs. 75,000 crore on a single day. Reddy also said that the state government has been constantly pursuing these MoUs.
He spoke about skill upgradation and training having been taken up in a big way by the state government through its various departments. In the last few months, 1.60 lakh youth were trained and provided placements in different sectors, he said.
The CM said that the government's focus is now on industries around rural areas - including agricultural-based industries, horticulture, dairy, poultry and fisheries.
"We have income of about Rs. 11,000 crore from fisheries, and the budget outlay for it has been increased from Rs. 20 crore to Rs. 230 crore," he said.
He said that dairy development is another sector to be developed, and that bulk milk-cooling centres are being set up. He stated that the government aims to provide value additions to dairy products, and also compensate farmers with remunerative prices. He said AP is also strong in horticulture and cold storage chains.
Meanwhile, about 1.35 crore SHG women have been provided Rs. 11,500 crore as bank linkage at zero percent interest, Reddy said.
The CM said there would be discussions and deliberations by senior state officials and industry representatives on AP's progress on two major parameters affecting industry - land acquisition and the development of industrial clusters, and the single window mechanism. He said on the land acquisition front, it is the APIIC that provides support to industries, and assured industrialists that there would be uniformity in allotments.
Reddy said that a Petroleum Chemical And Petrochemical Investment Region (PCPIR), in about 603.58 sq. km. of land between Visakhapatnam and Kakinada, is being developed.
He also said that the state government is requesting the Centre to reduce interest rates to women from 14% to 7%, to bring them on par with farmers.
Kiran Kumar Reddy released a special report that assesses the 12 key factors that influence the business environment, and also makes recommendations for improving the business climate in the state.
Major Industries Minister Dr. J Geetha Reddy said that Andhra Pradesh was one of the best power utility states in the South. She said that several pro-active steps were being taken up to make AP a surplus-power state. (INN)