VIJAYAWADA: Terming his government’s commitment to corruption-free governance and fair and transparent policies as a deal clincher, Chief Minister YS Jagan Mohan Reddy made a strong pitch for investments in Andhra Pradesh at the day-long Diplomatic Outreach programme organised jointly by the State government and the Ministry of External Affairs here Friday.
Addressing diplomats and delegates from 35 countries, he cited the familiar strengths of the State such as the 975-km long coastline, four ports and six airports but conscious of the apprehensions among investors and diplomatic corps over his recent controversial moves - scrapping of wind and solar power purchase agreements (PPAs) and enacting a legislation mandating 75 per cent job quota for locals in all industries -- the Chief Minister took pains to explain the rationale behind the decisions going so far as to term them ‘pro-industry.’
“Most of you are aware that a few of the decisions we have taken are slightly controversial. I should address these to give you confidence,” he conceded and urged them to listen to his side of the story. Drawing their attention to the fact that distribution companies in the State owe a staggering `20,000 crore to power suppliers, he said at his first review meeting he was informed that the outstanding dues hadn’t been paid for one to one-and-a-half years.
“What is the point in having PPAs? Discoms are already crumbling. We need to do something about it even though it is slightly controversial. We need to come up with a win-win formula for everyone,” he observed.
The thrust of his argument was that Discoms cannot function when revenues are lower than the cost of procurement and the only way out is a sustainable model where rates come down. “Probably investment could be treated as a debt with a soft loan... if we don’t come up with innovative policies, there will be nothing left to offer anybody anything,” he pointed out, adding that higher tariffs wouldn’t benefit the industrial sector either.
On the 75 per cent quota, he cited the example of America where jobs for locals has been a major issue. The same situation is prevalent all over the world, he said, and presented pretty much the same argument he had advanced in the recent Assembly session. Any industry adds to pollution levels in some measure, he reasoned, and asked why would anyone give land if there was no hope of getting a job. “One should look at it proactively. This (job quota) is pro-industry. We need to give hope. When we do that people will actually want industries. This should be treated as a pro-active step,” he insisted.
The Chief Minister reiterated that his government would impart requisite skillset to local youth to provide manpower for industries and clarified that he wasn’t seeking funds for the same. He explained that skill development centres would be set up in each parliamentary constituency and sought help in training the locals. Jagan was candid enough to admit that the State hasn’t got everything on a platter for investors, not even a tier-1 city like Bengaluru, Chennai or Hyderabad. But he didn’t go into the nitty-gritty of his industrial policy. Instead, he repeatedly stressed on his government’s credentials as a stable, honest, sincere and committed one with cordial relations with the Centre and neighbouring States.
Whether this cut ice with the delegates is anybody’s guess. It is learnt that several diplomats are none too happy with the 75 per cent quota and cancellation of PPAs. An informed source told TNIE that during Jagan’s recent meeting with the then US Consul General Katherine Hadda in Hyderabad, the latter raised the quota issue. Similarly, envoys from another country, which is keen on diversifying trade relations with India, expressed disappointment over the government’s controversial decisions.
On the brighter side, the Chief Minister listed various sectors in which the State would be glad to invite investments - from airports, refineries, and steel projects to water management and interlinking of rivers. He also made it known that the government was seriously contemplating the development of metro rail in Visakhapatnam and has on its mind the same for Vijayawada and Guntur. The Diplomatic Outreach programme was organised for the first time in Andhra.
Manpower for units
CM Jagan said that his government would impart requisite skillset to local youth to provide manpower for industries by setting up skill development centres in State