VIJAYAWADA: Andhra Pradesh YS Chief Minister Jagan Mohan Reddy reiterated on Saturday that rapid state industrialization is possible only if Special Category Status (SCS) is granted to the State.
He urged the Center to expedite the approval of the revised cost estimates of the Polavaram Irrigation Project for the timely completion of the project.
Attending the sixth meeting of Niti Aayog’s Steering Council chaired by Prime Minister Narendra Modi, the Prime Minister said the split resulted in the State being deprived of a Tier-1 city, infrastructure, employment opportunities and financial resources.
“The rapid industrialization of my country is possible only if it is given the status of a special category. “This was a commitment made on the floor of Parliament and it was a precondition for partition,” Jagan said.
“For India to become a formidable force in manufacturing, we need to conduct a thorough study and analyze the factors that have contributed to the success of countries that have demonstrated good progress in the manufacturing sector. In my opinion, the five important obstacles for the growth of the production sector are the excessive cost of funds available from our financial institutions, the high cost of energy, delays related to land procurement, delays and complexity in issuing legal permits and rigid labor laws. with each of these obstacles, State and Center governments need to take a deeper effort to understand the root cause and make a conscious effort to introduce reforms to mitigate these obstacles, “Jagan noted.
He said for the construction of infrastructure, even state-owned enterprises benefit from loans from financial institutions like PFC and REC with a higher interest rate of 10 to 11 percent per year. If this is the difficulty that PSUs face, one can imagine the dire situation of the private sector.
The Prime Minister affirmed that despite his government’s commitment to providing a business-friendly environment, industrialization has not yet gained the required growth momentum in the state.
“This is due to some restrictions, resulting from the unjust and unequal disruption of the former state of Andhra Pradesh,” he said, adding that under Special Category Status it is the only solution.
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