Telangana offers sweet deal to industry
Jun 02 2014 , Hyderabad
K Chandrasekhar Rao, fondly called KCR, was sworn in chief minister on Monday, marking the birth of India’s 29th state. He said the government would offer special status to pharma and IT industries, while the focus would equally be on developing the poultry, agriculture and real estate sectors. He promised to nurture the state into a ‘seed bowl’ of the country.
Industry and service sectors will be the key growth drivers of Telangana’s economy. In 2012-13, the service sector contributed 54 per cent, or Rs 1.81 lakh crore, to the state gross domestic product (at current prices), while industry’s contribution was 28.8 per cent at over Rs 96,000 crore. The agriculture sector's contribution was 17.2 per cent at over Rs 57,000 crore. Telangana’s gross domestic product stood at Rs 3,35,018 crore in 2012-13.
Official data shows 95 per cent of the revenue from the services sector was contributed by capital Hyderabad and surrounding areas. Telangana’s per capita income has grown phenomenally to Rs 83,020 in 2012-13 from Rs 24,409 in 2004-05, a PTI report said quoting government officials.
Rao promised policies to attract new investment to the state to ensure speedy industrial growth. A new industrial policy will be announced shortly after seeking suggestions form the industry.
The average annual growth in state GDP between 2004-05 and 2012-13 was 16.05 per cent.
The land-locked state is expected to have nearly Rs 4,000 crore surplus budget, but lingering electricity deficit may force the new government to spend more on the power purchase.
Telangana begins journey as a power-deficit state, but Rao said new capacities would get added in three years.
Rao plans to groom the state capital into a global city. Hyderabad, already demarcated as an information technology investment region, will soon have a surveillance system with about 10,000 close circuit television cameras (CCTVs). Also the chief minister promises to make the city slum free.
The police will be modernised with a focus on improving the law and order. He announced a special health allowance for traffic police personnel. Shortly after being sworn in, the chief minister delivered on his poll promise, by waiving farm loans up to Rs 1 lakh. He announced a slew of sops and promised to spend Rs 50,000 crore over time to uplift the weaker sections.
The chief minister said he would oversee the implementation of various schemes by keeping portfolios related to these with himself.
The state will strengthen agricultural research and education system. He promised a pilot project on green house farming on 1,000 acres, which will get up to 75 per cent loan subsidy. The new government will encourage the real estate industry as it currently provides employment to about two million people, Rao said.
Dedicating the formation of the new state to the people, he said all state employees would get a special Telangana increment, and he would strive to bring their salaries on par with central government staff. He promised to implement the pay revision commission recommendations.
He took two deputy chief ministers — Mohammed Mahmood Ali and T Rajaiah — and included his son Kalvakuntla Taraka Ramarao and nephew T Harish Rao in the cabinet.
Other members in the ministry included N Narsimha Reddy (home), Eetela Rajendar (revenue and civil supplies), G Jagadeeshwar Reddy (education), Kalvakuntla Taraka Ramarao (IT and panchayati raj), Pocharam Srinivas Reddy (agriculture), Ramanna Jogu (forests and environment), P Mahendar Reddy (transport), T Padma Rao (excise) and T Harish Rao (irrigation and legislative affairs).
The state, spread in 1,14,840 sq km, has 66.46 per cent literacy rate with a population of 3.52 crore.