HYDERABAD: Stating that China’s restrictions on export of rare earth elements are having a serious impact on the manufacturing sector in Telangana, IT & Industries Minister D Sridhar Babu on Wednesday urged Union Commerce and Industry Minister Piyush Goyal to intervene immediately and focus on viable alternatives.
Sridhar, who met Goyal in New Delhi, said: “Rare earth magnets, critical raw materials and chemicals required for the production of electronics and electric vehicles are largely imported from China. That country has recently imposed restrictions on the export of such materials. This has affected the industries manufacturing electronics and EVs. If this situation continues, it could lead to significant losses. Telangana’s manufacturing sector is particularly vulnerable to this impact.”
He also urged the Union minister to extend the Centre’s full support for the development of industrial infrastructure in the state. The minister elaborated on plans for the Hyderabad-Nagpur, Hyderabad-Warangal, Hyderabad-Bengaluru and Hyderabad-Vijayawada industrial corridors. He sought sanction of Rs 400 crore under the PM Gati Shakti scheme for essential infrastructure under the Industrial Smart City project being developed in Zaheerabad.
Sridhar Babu, meanwhile, informed the Union minister that the Hyderabad-Warangal Industrial Corridor (HWIC) had come to a standstill due to negligence of the previous government. But the present government is now developing the Pharma City, which is part of this corridor, into a “Future City”, he said while seeking the Union government’s cooperation in this initiative. He also urged the Centre to set up a national design centre in Hyderabad.
‘Revive sick CPSUs or pay compensation to TG’
Meanwhile, Sridhar Babu urged the Centre to formulate and implement a concrete revival plan for non-functional and sick CPSUs in Telangana, thereby fulfilling the original purpose of land allotments, boosting industrial activity, and generating local employment.
“If revival is not viable, the state must be compensated at current market value for the lands before proceeding with any disinvestment plans,” he said and added that Telangana reserves the right to reclaim such lands if no productive use is foreseen.
The minister submitted a representation to Union Heavy Industries Minister HD Kumaraswamy, seeking urgent resolution of long-pending issues related to lands allotted to CPSUs in the state.
Raising concerns over thousands of acres of prime land in Telangana, originally allotted at a concessional rate to CPSUs during the 1960s to promote industrial development and employment, he said : “These lands were given in good faith by the erstwhile government of Andhra Pradesh to support the Union government’s industrial vision. However, the core objective — creation of a vibrant industrial ecosystem and sustained local employment — remains largely unfulfilled.”
He said that out of 27 CPSUs with land in Telangana, many are now non-functional or have ceased operations entirely.
“The Cement Corporation of India (CCI) unit in Adilabad district, for which 2,272 acres were allotted, has remained defunct since 1998 with no steps taken for revival. Several CPSUs, including some still functional, are seeking No Objection Certificates (NOCs) to monetise these lands as real estate assets — defeating the original industrial purpose,” he elaborated.
He expressed strong concern that, in the current approach, these valuable land parcels -- strategic assets of the state -- may end up being transferred to private entities without any compensation given to Telangana. “The state government remains fully committed to partnering with the Ministry of Heavy Industries to accelerate India’s industrial transformation. But this must be based on principles of fairness, federal cooperation, and respect for State resources,” he added.