Fapcci to develop industrial clusters

Srinivas Ayyadevara who took over the reins of the industry body recently says Fapcci's efforts will be channelled at making Andhra Pradesh a power-adequate state in a few years P Madhusudhan Reddy Srinivas Ayyadevara, a charted accountant by profession, has recently taken over the reins of Fapcci as its president for the year 2013-14. Known for his expertise in taxation and corporate law, he has been associated with the premier industry body for over a decade and worked at various levels before his elevation to new position. Ayyadevara says his foremost goal is to make Andhra Pradesh a power-adequate state at the earliest possible. Developing industrial clusters on behalf of Fapcci is also high on his agenda. "Power is the most important element of any industrial activity. Lack of power hampers industrial growth immensely. Fapcci will make concerted efforts to find a long-term solution for the power problems that the AP is facing," the new Fapcci president tells The Hans India in an exclusive interaction.

Excerpts: You have recently assumed charge as Fapcci president. What is high on your agenda? First and foremost thing on our agenda is to find a long-term solution for the power problem. In two or three years down the line, there should not be any power shortage in our State. To achieve this, we need to have three-pronged strategy. First one is to increase the installed capacity at least by 1,000 MW every year. Secondly, the State needs to have grid connectivity with other states and zones. This will be a better solution because power can be purchased at lower prices. Thirdly, we have to insist that gas should be supplied to existing plants in AP on priority basis. Power plants with combined capacity of 2,400 MW are idle in the State due to lack of gas. If we complete these initiatives, the State will have better power position by 2017-18.

Given the problems related to environment clearances and land acquisition for new power plants, is it possible to add so much generation capacity in the State? I know new power projects will face several challenges in the State, including financial constraints. But we have to find a way out. As on today, AP has an installed capacity of 17,000 MW, but we are generating just 12,000 to 13,000 MW due to various reasons. We are looking at a capacity addition of 6,000 to 7,000 MW in next five years. This needs lots of investments, but there is no alternative for the State. We will get a study done by ASCI on this issue and come out with a detailed report on the way forward.

What are the other things on your agenda? We will make plea to the government to come out with state manufacturing policy on the lines of the one we have at the national level. Fapcci is preparing a data base and inputs for the policy. We will submit them to the government. Besides, we also are planning to develop industrial clusters on behalf of Fapcci.

How many industrial clusters does Fapcci intend to develop? Initially, Fapcci will make an attempt to develop industrial clusters for SMEs and other sectors in and around Hyderabad. We will develop one or two with active support of the government. They will be useful for our members. Besides, we are also looking at developing industrial parks for handlooms and gems & jewellery. For example, we will make joint effort with APIIC to develop a park for handloom units at Gadwal in Mahabubnagar district. Our objective is to have around six such initiatives. In addition, Fapcci is also looking to hold an industrial and manufacturing exhibition in the city.

Will you make any efforts to bring all the industry bodies on to a common platform for combined attempts to solve the challenges that industries face in AP? Fapcci is always ready to work with other industry bodies in the State for the benefit of industry. We have no issues in this regard. We worked with CII, Ficci and Assocham in the past and will do so in future too.