Industrialists backtrack Process ending at MOUs

Industrialists backtrack Process ending at MOUs

Hyderabad, Velugu: The propagation and campaign of the Government regarding the progress of the State in industrial sector have not been matching its deeds. It also say that with regard to investments  the State on top of all states in the nation. But the facts and truth in this respect is the other way round. Except for the loud statements nothing substantial has taken place so far. All the agreements entered into so far confined to papers only. No new company has come and the process seemed to have ended at MOU stage.  Leave off the coming of new industries another staring fact is that during the last seven years,13 thousand small industries were closed and a staggering four and half lakh workers lost employment. While the Government proudly says during the last seven years it has provided16 lakh jobs and as per the  survey details of  Centre for Monitoring Indian Economy(CMIE) the unemployment rate in Telangana is 4.7percent.

Ends at MOUs

In the initial years of State formation the government entered into MOUs with 16 China companies. And the activity ended there itself as no company has started its business in the state as yet.  It was also widely campaigned that 700 companies in Warangal Textile Park would start production, but nothing except Kitex started production. During the last seven years permissions have been given to 17,277 companies through IPass, out of these , the industry sources say, 13,053 companies have started production.  As per the industrial and unofficial sources the number of companies that did not start production would be around seven thousand.  But the TS IPass website says that It is providing employment  even in the industries that got permission and did not start production. The same details were revealed by Minister by Minister KTR in the state Assembly. Generally the industrialists announce that the number of jobs that they would be providing if their companies start production. But the same figure is being indicated by the government as if it has provided employment. The employment figures are reaching lakhs even without the start of companies. It is a million dolor question how could anyone provide employment and jobs in the companies that have not yet been started.

No incentives

The government has announced a number of concessions to Micro, Small and Medium industries if they come to state. It said in order to encourage industries locally and on the basis of ease of doing business it is providing concessions and as such brought out an industrial policy. As part of the policy the government announced a number of subsidies to give a boost to industries in the state. But nothing has happened as expected.  A subsidy amount of Rs. 1500cr to be paid to the industralists is said to be pending. Out of this the amount due to SC, ST industrialists is Rs.837cr. As this is the case with subsidies and incentives the industrialists are said to be backtracking. With the closing of hundreds of companies due to pandemic lakhs of people have lost jobs and have been on the roads. And many companies in order to cut the expenditure  reduced  the work force. A number of industrialists like Sway Goud and  Chandan  explained the problems being faced by them on a number of counts including incentives, subsidies, and provision of employment.