For a state that believes the Center is putting it on the backburner, fresh investments are important.
For a state that believes the Center is putting it on the backburner, fresh investments are important.
The World Economic Forum (WEF) in Davos last week provided an opportunity to help Telangana consolidate its position as one of the preferred investment destinations in India. Led by state IT, Industry and Commerce Minister KT Rama Rao, the delegation to the annual gathering of world political and corporate leaders received investment commitments from several firms in various sectors. The minister tweeted, the 10-day visit to UK and Davos helped Telangana to invest Rs 4,200 crore.
Sri Rama Rao also used the opportunity to take a dig at the Centre. He talked about what India should do to ensure that projects on paper are implemented faster and more investments are achieved. India needs revolutionary reforms to strengthen its life science sector and compete with the world, he said, touching on the ambitious Hyderabad Pharma City project of the Telangana government. At a meeting in London, he said that Telangana has overcome all odds to emerge as a preferred destination for global investment.
Less than a week ago, Prime Minister Narendra Modi said in Hyderabad that there have been continuous reforms since his government came to power in 2014. “Today the world is realizing that India means business,” he said.
Sri Rama Rao’s comments may not have received much attention against the backdrop of strained relations between the TRS-ruled state and the Center since the Huzurabad assembly constituency bypoll. Sitting TRS MLA E. Rajendra had resigned amid allegations of corruption, switched to BJP and won the elections. Soon the relations between the two sides deteriorated. They worsened when the Center refused to procure more paddy grown in the state. Where Chief Minister K. Chandrashekhar Rao is stepping up efforts to create a non-Congress, non-BJP front, while the local BJP leadership continues to pressurize the state government.
TRS working president and widely regarded as the front-runner for the chief minister’s post, Sri Rama Rao has been critical of the Modi government in recent times. Telangana feels that it has been put on the backburner of approving major projects in various sectors. The list includes the approval given by the Center to the Uttar Pradesh Defense Industrial Corridor, for which Hyderabad and Bengaluru, with their existing ecosystems, would probably be best suited; Lack of financial support for Hyderabad Pharma City; Also approval of bullet train projects to Gujarat. Sri Rama Rao has also been accusing the Center of going back on the old promise of a rail coach factory in Telangana. In this context, the joint venture between Swiss firm Stadler Rail and Medha Servo for ₹1,000 crore rail coach manufacturing unit in Telangana assumes significance. In addition, Ferring Pharma has announced that it will invest around €60 million over the next 2-3 years to set up another manufacturing facility in the state. Schneider Electric has decided to set up a second manufacturing unit in Hyderabad and Hyundai has said it will invest ₹1,400 crore to set up a proving ground. By attracting numerous investments in the pharma sector, Hyderabad continues to build on its strength as the pharma hub of India.
These investments will not only generate revenue but also employment. With the assembly elections due next year, the emphasis is on employment generation. Not long ago, the state government announced that it would fill 80,000 vacancies through direct recruitment and regularize over 11,000 contract employees.
Now all the attention will be focused on how quickly the investment materialises and how the political winds blow.
ravikumar.n@thehindu.co.in