The Hindu Business Line : AP Govt allays fears of industry on priorities

The Chief Minister was addressing a seminar on `Industrial Opportunities in Andhra Pradesh' organised jointly by the Andhra Pradesh State Financial Corporation and Rajasthani Graduates Association on Saturday. He said there are widespread apprehensions that industrial development would be put on a backburner owing to the Government's preoccupation with agriculture and rural development.

"Our Government is fully aware of the importance of industrial sector, both manufacturing and services, and its contribution to the State's economy by way of employment, exports and income generation. More importantly, it adds value to agricultural produce and products," Dr Reddy said.

"We are an agro-based economy and most industries directly or indirectly depend upon the agriculture sector," he added.

On the Government's role in luring investments into the State from both within and outside the country, the Chief Minister cited the efforts to bring in a Volkswagen car-manufacturing unit to start its operations in Visakhapatnam. "This is expected to bring in investments to a tune of about Rs 5,000 crore and create considerable ancillary development and employment opportunities worth another Rs 5,000 crore."

According to him, the Government believes that infrastructure must be ahead of the needs of economy. Accordingly, the Government has set up a full-fledged Infrastructure Department for creating world- class infrastructure. "We have chalked out realistic plans to develop power capacity, roads, ports, airports, air and transport services and telecom facilities on par with international standards."

Dr Reddy said the Government has also unveiled an industrial investment policy that aims to make the State the most favoured destination of investors, while attempting to reinvigorate the rural economy. The policy favours the establishment of tiny and small-scale industries to achieve the twin objectives of employment generation and optimum of utilisation of local resources.

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