A major contribution from the industrial sector only will help achieve double digit growth, said Chief Minister N Chandrababu Naidu.
In a review meeting on jute, sugar, ferro alloys and textile industries at the Camp Office in Vijayawada, the Chief Minister asked the officials to prepare a comprehensive report on sick industries.
The Chief Minister instructed the officials to study the status of aluminium, manganese, silica and other ferro alloy industries and find out how the Centre and the State can come to their rescue. The officials told him that while there were a total of 35 units in north coastal Andhra, only 27 were operational. Stiff power tariff is a major hurdle being faced by these units, they explained. These industries are now seeking concessions in power tariff and exemption of 6 paise per unit on electricity duty. The Chief Minister opined that technology upgradation can only help them survive. He asked the officials to explore the exemptions on central excise, vat etc to help these units tide over the crisis.
The officials told the Chief Minister that in the last 3 years, the textile industry had not been doing well internationally. There were as many as 62 textile units in 2005-10, which have now down to 33 in 2010-15. The Chief Minister felt that textile and apparel sectors should be combined for effective results. Skill development is required for the labour in these industries, he said.
The jute industry is also not doing well, the officials explained. While 18 units are now sick, 24 units are operational in the state. The imports from Bangladesh have negatively impacted the jute industry in the country, they explained. These industries are also seeking rebate in electricity tariff and vat exemption.
The status of cooperative sugar industry in the state is also not very encouraging, the officials said. Out of 10 existing industries in this sector, only 4 are in working condition. The Chief Minister asked the officials to study how the sugar units privatised earlier are doing at present and take a decision in this regard. Delegating the management of this industry to professionals and extending incentives can be some of the ways in which the cooperative sugar industry can be revived, the Chief Minister said. (INN)