‘Creation of investor-friendly atmosphere is not about money, but about the attitude of bureaucrats, political leaders and people towards investing companies’
In contrast to the popular opinion that special status of residuary Andhra Pradesh will bring in investments, the AP Inc., opines that the pace of economy and favourable ecosystem are more important than special status. The industry and civil society in Seemandhra and Telangana enhance pressure on political groups to create such an atmosphere to reconstruct the new political regions.
“Sikkim has special status, but there was no significant investment out there due to unfavourable conditions and ecosystem. Congenial infrastructure, attitude of political leaders, administration and people play a major role in attracting investments,” said Ch. Sreeni Raju, managing director and co-founder of the venture capital firm Peepul Capital.
Nellore-based Sri City SEZ could attract over Rs. 10,000 crore investments from 100 global firms only because of a favourable atmosphere and not just due to tax breaks which are available in the neighbouring States, according to him. This apart, the overall growth in GDP and economy, which is critically low, will also play a major role in investments in any given region, he added.
“Creation of atmosphere is not about money, but about the attitude of bureaucrats, political leaders and people at large towards investing companies. We, on behalf of an industrial body, will prepare the requirements and hand over to all the political parties to boost reconstruction of the Seemandhra region,” Mr. Raju said.
Telangana Joint Action Committee (TJAC) convener M. Kodandaram said Telangana needs a special policy that deals with specific issues of the region. “TJAC is working with the industrial groups in Telangana in preparing an action plan which will be promoted among key political parties,” he said.
In a recent public meeting, Telangana Rashtra Samithi legislator K.T. Rao said it’s time for creating a welcoming environment to encourage investments and to reassure people from other States. “Gone are the days of loaded statements. It’s time for us to ensure a peaceful and investor-friendly atmosphere,” he said.
Dispelling an argument that presumes shift of firms from Telangana to Andhra Pradesh owing to special status, industry players say that it could be expansions by some manufacturing firms which may shift. It does not make business sense for majority of companies to shift industrial establishments.