Industrial Policy attracts investors

By: Vanam Jwala Narasimha Rao 
[The writer is CPRO to Telangana CM]

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. Chandrashekar 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 Chandrashekar 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 Chandrashekar 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.

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