Naidu's failures hamper industrial growth: Goutham Reddy

Amravati: The present government has been paying a heavy price for the failures and impractical promises of the previous government, with regard to the industrial sector, explained the Minister for Industries M Goutham Reddy.

He said that the then Chief Minister and TDP president N Chandrababu Naidu gave unrealistic promises to the investors and committed to giving many subsidies, worth thousands of crores. But, at the end of the day, Chandrababu Naidu did not honour his promises, which became a bane to the present government in attracting new industries, he blamed, at a press conference here at the secretariat on Tuesday.

Revealing the burden on the state government as on date, Goutham Reddy said that the state government has to pay at least Rs 2,500 crore dues, pertaining to industrial subsidies. The industrial sector has been expecting to clear these dues before asking the new industrialists to invest in the state, he added.

Assuring the existing investors in the state, the Minister informed that the state government has decided to clear all the dues and working for that with the Ministry of Finance. All the pending amount of the industrial subsidies will be released, in a phased manner, he added.

TDP has been wanted to do negative propaganda against the state government that, Ït is not the industrial friendly government." he said that the state government is more concerned about the industrial promotion and will be industrial friendly.

He said that the investors are scared for not implementing the commitment made by the previous government from the last five years, he added. "What was the point in making a promise to industrialists when we could not abide by it? On the other hand, the previous government gave a promise that it would give subsidies to the industries, on the other hand, it did not clear the dues. What would it indicate? How could a new company come and establish their industries in our state, if they don't trust our policies?".

He also added that, for instance, the state government has to pay more than Rs 22,000 crore to the Kia Motors itself as industrial subsidies over the next twenty years.

The Minister further informed that the state government has decided to scrap the present Industrial Policy and introduce the new one by replacing it. Anyway, the existing IP is going to end by March 2020, hence the new policy to be introduced as early as possible. He added that the government constituted an expert committee to bring the new policy, which is on its way. He said that once the expert committee would submit the suggestions, then the government will release the draft Industrial Policy for the next five years.

When reacting on a news coming in the media on the allegedly going out the Asian Pulp and Papers (APP) company from AP to other states, the minister explained it was malicious propaganda with malafide intention. He informed that the company, which entered a Memorandum of Understanding with the state government to establish a manufacturing unit in the state, is very much committed to continuing here.

He said that the government never said that it would cancel the Power Purchase Agreements (PPAs) entered in the previous government, but called them for renegotiation. He informed that the government just asked them to substantiate their power production costs. Beyond that there was no intention of renegotiating the PPAs, he added.