Move afoot to prevent flight of capital

Our Bureau

`While it is important to make the State industrially developed, one should not pollute the environment.'

Hyderabad, April 28

The Union Government might extend the sops being offered in some hill States to some backward districts of Andhra Pradesh. These sops helped those States attract investments from other States.

Addressing a FAPCCI meeting here on Friday, Dr Y.S. Rajasekhara Reddy, Chief Minister, said the Union Government might either extend those sops to the backward districts or do away with such sops. "It looks like considering the issue," he said.

Referring to the flight of capital from to hill States such as Assam, Himachal Pradesh and Uttaranchal, the Chief Minister said he had brought the issue to the notice of the Centre and he was given to understand that the backward districts might also be made eligible for certain Central incentives.

On polluting industries, he observed that while it was important to make the State industrially developed, one should not pollute the environment. He suggested that a group of industries could set up common facilities to treat effluents.

Stating that industrial power tariff was the lowest in the State, he assured the industry that the tariff would be reduced further.

Awards presented

Earlier, he presented awards to the winners at the 88th annual fete of the chambers. The Visakhapatnam Steel Plant was adjudged the `Best industrial productivity award'.

The Andhra Pradesh State Financial Corporation (APSFC) received the `Best all-round performance award'. Mr J Rambabu, Chairman of APSFC, Mr M. Gopalakrishna, its former Chairman, received the Amancherla Ramamurthy Silver Rolling Trophy instituted by VBC Industries.

Mr Shakti Sagar, Managing Director of ADP Private Ltd, received the `Best Information Technology Company' award.

Award withdrawn

Interestingly, the FAPCCI has cancelled the `Outstanding contribution for welfare of destitute women' award won by Asmitha Microfin Ltd.

"We have decided to cancel it, keeping in mind the sensitivities involved," sources in the chamber said. On Thursday, the FAPCCI had announced that the micro-finance company was among the 19 winners of awards in various categories.

The decision to select a micro-finance company for the award had attracted sharp criticism, following reports of horrendous stories of harassment by such companies in rural areas.

The sources said the CMO too felt that the award should be withdrawn, as it would be embarrassing for the Chief Minister to present the award.

(This article was published in the Business Line print edition dated April 29, 2006)
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