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States - Andhra Pradesh
CII draws up ‘Vision Q1’ for industrial growth in AP


CII is planning to undertake a comprehensive study on the scope of industrial development in various districts of the State.




Mr Pradeep Dhobale, Chairman, CII, Andhra Pradesh.

G. Naga Sridhar

Hyderabad, Sept. 17 The Confederation of Indian Industry (CII), Andhra Pradesh, is planning a study, Vision Q1, for achieving all-round industrial development in State by end of first quarter of current century (2025).

“We will consult all stakeholders including bureaucrats, academics, farmers, traders and non-governmental organisations, among others by conducting roundtables in Hyderabad, Visakhapatnam and Rajahmundry soon,” Mr Pradeep Dhobale, Chairman of CII (AP), told Business Line.

Draft guidelines

Draft guidelines would be prepared to be shared with opinion leaders and policy-makers. “The document will be ready by the calendar year end. Different States under CII Southern Region can adopt different methods and time-frames for this,” he said.

In addition, CII is also planning to undertake a comprehensive study on the scope of industrial development in various districts of the State.

The apex industry body has recently completed a study, considered to be a pilot, in Anantapur, Kadapa and Chittoor. “In this survey, it has been found these three districts are aptly suited for developing mineral-based industries. They can also be developed as logistic hubs in view of their proximity to Bangalore and Chennai,” Mr Dhobale said.

To find out suitable industries for each district and suggest ways and means for their development, CII is planning to conduct similar surveys in other districts as well. “Going forward, we will extend the study to other districts in collaboration with the State Government. It will help in designing district-specific plans for industrial development,” he said.

Infrastructure

On the infrastructure, the CII Chairman said Andhra Pradesh was ahead of many other States, including Karnataka. “However, there is still a lot of scope for improvement. We should stop competing with other cities in India but look to countries such as China, Brazil and Russia in scaling up infrastructure,” he felt.

Development of ‘B’ Grade cities and towns should also be taken up more aggressively to support the future growth in industrial economy, he added.

However, there are some road blocks for faster development. “For example, one of the main concerns for industry is power. A long-term direction on power production is still an issue,” Mr Dhobale said.

Despite the efforts to set up ultra mega power projects in places such as Krishnapatnam, the gulf between demand and supply of power could be huge, he observed, adding “there is a need to conduct a study on power requirement in the State.”

Encouraging captive power generation could be a way out, he suggested. “If free-wheeling of production from captive power plants to grid is allowed, it would make a big difference. Electricity duty on captive power should also be eliminated,” he pointed out.

To ensure availability of manpower for industry, CII is focusing on skill development. The industry is facing acute shortage of manpower with low-employability of graduates.

“We will adopt 17 out of 36 ITIs for upgradation. By the end of this year, one can see results,” he said.

On the synergy between industry and agriculture, Mr Dhobale said, “the interaction between the two important facets of economy is slow at the moment.”

The CII is making special efforts to promote agriculture-industry interaction. “We had organised an event in Tirupati recently for farmer-industry interaction. It was attended by over 3,000 farmers and industry representatives. The aim was to get a feel of the farm sector and provide farmers a hint of industry’s requirements,” he explained.

To make farmers more amenable to industry, CII is adopting measures such as conducting proceedings in Telugu, among others. “We will have more such interaction with farmers on a regular basis,” he added.

The agro-based industries should gear up to meet increased farm productivity in future. “At the same time, there is possibility of manpower migration from agriculture to industry. We need to absorb them,” he said.

Reflecting on the Government’s role in bringing in investment, Mr Dhobale commended efforts of Andhra Pradesh Government. “The interaction between industry and Government has increased significantly of late. I see a physical demonstration of this tendency in how often corporate representatives are allowed to meet the popular officials. This is very impressive right now and investment scenario is bright,” he said.

“However, Andhra Pradesh has not attracted any global automaker which was successfully done by Tamil Nadu. Something should be done on this front,” he added.

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