AP, Telangana beat bifurcation blues to rank No. 1 in ease of doing business
Chandrababu Naidu and K Chadrashekar Rao have been touring various countries showcasing their advantages besides formulating new industrial policies decked with incentives.india Updated: Nov 04, 2016 18:44 IST
“Divided we fall,” former chief minister of united Andhra Pradesh N Kiran Kumar Reddy had warned three years ago when the state was set to be bifurcated.
“The gentleman had warned that there would be massive flight of capital if the combined state of AP was divided,” recalled Telangana Industries and Information Technology minister K T Rama Rao.
“But we have proved him wrong,” he claimed.
Both the Telugu states have jointly topped World Bank’s Ease of Doing Business (EoDB) rankings, announced by the Department of Industrial Policy and Promotion (DIPP) two days back.
With 98.78% score, they pushed last year’s topper Gujarat (98.21%) to the third position.
According to Rao, Telangana received 2,550 investment proposals worth Rs 44,791 crore in the last two and a half years, providing direct employment to 1.61 lakh people and indirect employment to over five lakh.
He said 60% of these proposals have materialised and industries have commenced their operations.
Andhra Pradesh, too, has claimed to have got 11,000 investment proposals worth Rs 4.5 lakh crore, promising seven lakh jobs.
A top government official said that though AP had lost the advantage of industrially-developed Hyderabad to Telangana, efforts are being made to gain lost ground and hoped to attract more investments at the January 2017 CII summit.
The chief ministers of the two states have been touring various countries showcasing their advantages besides formulating new industrial policies decked with incentives.
Telangana CM K Chandrasekhar Rao has visited Singapore while his son K T Rama Rao went to Malaysia, Taiwan and United States whereas AP CM N Chandrababu Naidu too toured Singapore, Malaysia, as well as Dubai, China, Turkey and Russia.
While the Telangana government came out with the TS-iPASS, an online portal for granting clearances based on self-certification by entrepreneurs, Andhra Pradesh established a single-desk portal.
Applicants who don’t get clearance within a certain period—two weeks in Telangana and three weeks in AP—are deemed to have got the same after the set time.
However, both the states have their limitations as well as advantages.
With the second longest coastline in the country, Andhra Pradesh can attract investments in LNG terminals, petro-chemical complexes, fertiliser, steel and cement industries, an industry analyst said.
“Besides, Rayalaseema region has huge iron ore reserves,” he said, but noted that the climate was unfavourable for hardware industry.
Telangana can get investments in information technology and pharmaceuticals, besides cement industries in places like Nalgonda, which have high limestone reserves, he said.