The Hindu Business Line : YSR offers industrial corridor to CEOs

WOOING CEOs of Southern States and those representing the multi-nationals, the Chief Minister, Dr Y.S. Rajasekhara Reddy, has said that the Government would make the Visakhapatnam-Kakinada industrial corridor a reality in the next few years.

At an interactive session with Chief Executive Officers (CEOs) here on Friday, the Chief Minister said that steel, aluminium and automobile companies had shown interest in setting up units along the corridor.

The session was organised to mark the annual meeting of the Confederation of Indian Industry's (CII) Southern Region.

The corridor would have the backing of energy through the huge natural gas reserves found in the Krishna-Godavari basin.

He said Visakhapatnam had already been opened up for information technology and pharmaceutical companies.

Listing various measures taken by his 11-month-old Government, Dr Rajasekhara Reddy said the Government was firm on developing the basic industry, which faced a downturn during 2001-04, in the next five years. Asking the CEOs to be "brutally frank on giving feedback," he said the Government would remove red tapism in administration and iron out bottlenecks. "We are trying to provide congenial atmosphere," he pointed out.

He said the State had one of the best policing mechanisms in the country. Referring to the Naxalite issue, he said it was restricted to only some interior areas.

"It is not a general issue. When we came to power, we wanted to give them (Naxalites) an opportunity to enter into dialogue. But it seems they are not interested in utilising it. We can promise you that we will ensure law and order," he added. "You won't regret your decision to invest in the State."

Defending the free power scheme, the Chief Minister said the State power utility won the top rank in the CRISIL ratings despite the scheme. "We could do this by reducing transmission and distribution losses and enhancing the efficiency of the system," he said.

Distribution losses had been reduced to 21.5 per cent from 23 per cent in a short span of time. "We passed on this benefit to the industry by reducing the tariff by four per cent," he said.

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