A presentation on Why Telangana State?


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A presentation given by Shri. Somarapu Satyanarayana to Shri Krishna

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A presentation on Why Telangana State?

  1. 1. TELANGANA AND INDUSTRIES To The Srikrishna Committee for Consultations on the Situation in Andhra Pradesh BY SOMARAPU SATYANARAYANA MLA -Independent
  2. 2. TELANGANA DISTRICTS • Adilabad • Nizamabad • Karimnagar • Medak • Hyderabad • Ranga Reddy • Nalgonda • Mahboobnagar • Warangal • Khammam
  4. 4. INDUSTRIES IN TELANGANA REGION• Industrial Backwardness of Telangana• After the Agriculture the Industry is the prominent sector for employment and growth.• A number of industrial estates and units have come up on peripheries of the Hyderabad city. Most of these units have been turned into sick units.• No industrial development in outside of Hyderabad• The strong kinship feeling amongst migrants, prevent employing the locals.• In Telangana there is a lot of mineral wealth. Especially coal reserves and iron ore reserves. It is easy to develop Telangana industrially. Due to high taxation and negligence of government only industries are less in Telangana except Hyderabad and surroundings.• Key sectors in manufacturing industries like Automobile and auto components, bulk drug industries, food and agro industries (SEZs AEZs) textile ,leather ,tourism projects and recent Pharma city also not many in Telangana.
  5. 5. INDUSTRIES IN TELANGANA REGION Micro Small & Medium industries existing in Telangana    Upto 31-3-2009S.No. District Units Investment (Rs. In Employment crores)1 Adilabad 1953 80.56 213652 Nizamabad 4032 161.73 375523 Karimnagar 5174 216.61 487984 Medak 5159 1008.83 699765 Hyderabad 15477 374.68 1253296 Rangareddy 21551 2961.44 2321757 Mahboobnagar 3517 250.95 335588 Nalgonda 7823 456.05 822039 Warangal 6423 189.09 5222610 Khammam 4812 331.31 44904 Total 75921 6031.25 748086
  6. 6. Scenario of sick Industries in Telangana Region SNO District No of SSI Existing 1 Adilabad 1943 508 2 Nalgonda 7066 2003 3 Medak 4226 1716 4 Rangareddy 25642 6093 5 Warangal 3033 * 6 Mahabubnagar 2277 1812 7 Karimnagar * * 8 Nizamabad * * 9 Khammam 5124 * *indicates figures not furnished by industries department•75% of small industries were turned to sick and closed.
  7. 7. Poor Encouragement to Telangana Entrepreneurs• The Banks and financial institutions executives are mostly of Andhra Region.• The Industries Department is dominated by officials from Andhra Region.• The Entrepreneurs of Andhra region are encouraged, supported to becomes successful unlike entrepreneurs from Telangana.• This is the main reason for sickness of many industires of Telangana.• Ancillary status price preference etc. are not considered in Telangana by which sufficient SSI units are not coming up in Telangana.
  8. 8. LARGE INDUSTRIES IN TELANGANA REGION Large scale Industries as on 31.3.2009    Upto 31-3-2009S.No. District Units Investment Employment (Rs. In crores)1 Adilabad 27 1107.06 562272 Nizamabad 26 229.91 37223 Karimnagar 20 1336.73 406214 Medak 819 7346.67 1210005 Hyderabad 390 1158.43 465146 Ranga Reddy 917 8864.95 1494467 Mahabubnagar 163 1583.59 225868 Nalgonda 245 6414.09 442659 Warangal 21 110.37 334210 Khammam 39 2254.82 151630  Total 2667 30406.62 639353
  9. 9. Telangana Major Industries benefitting Andhra Region• There are few Major industries in and around Hyderabad.• Mostly they are IT industries which can be packed and shifted any time unlike steel industry at Vizag and fertilizer industry at Kakinada.• Even from the Major industries in Telangana benefits to Andhra.• In Opencast coal mines the land oustees are not paid compensation for decades, no employment is given.• Majority of Officials and Contractors from Andhra are benefited through these mines of Telangana.• The Coal extracted is transported and power is generated in Andhra & Rayalseema regions.
  10. 10. The fate of Major Industries in Telangana• In 1956, when Telangana state (Hyderabad state) was merged to form Andhra Pradesh, the region was a buzz of activity with several large thriving industries, chief among which were the Azam Jahi Mills, Nizam Sugar Factory, DBR Mills, Sirpur Sir Silk Mills, Deccan Glass factory, Praga Tools, Soda factory, Iron factory , Firangula factory, and the Antargam spinning mills. These factories collectively employed over 1,00,000 workers in Telangana.• All the above industries have been nurtured to sickness and closure.•• Government sold the land to Seemandhra businessmen, who later converted the industrial land into housing colonies.• The Nizam Sugar Factory in Bodhan was at one time Asia’s biggest sugar factory.•• The factory was managed into sickness by the cadre which was primarily deputed from the Andhra region. It was finally sold at a throw away price to Gokaraju Rangaraju from W.Godavari district of Andhra Pradesh.• The story of the Azam Jahi Mills is similar, this was established in Warangal during Nizams rule and provided livelihood to about 15000 people in Warangal. It was also managed to sickness, closed down and the Mills lands sold as real estate . A housing colony is being built on this prime land in the heart of Warangal.• Contrast this Government have patronized in reviving the sick Vizag Steel Plant at a cost of 1,500 crores.• This Amount would have been sufficient to revive all the 8 industries in Telangana, and saved the livelihood of our people.
  11. 11. Ramagundam Industrial Belt Neglected• During the Period of Nizam,his Engineer Mr.Layaq Ali often said “Ramagundam would be Manchester of India.• The Thermal Plant of Nizams time is closed.• The Thermal Plant of 63MW is working beyond its lifetime. Any time it may close.• The APGENCO is not giving any pit head Thermal station to Ramagundam. However the coal is transported for hundreds of Kilometres and establish Thermal station at Cuddapah where there is no proper source of water at the cost of public.• The BPL project started about 12 years back has not commenced for no reason.• The Fertilizer industry which was at no cash loss was closed even though there was double the demand in neighbouring districts.• The Fertiliser Industry at Ramagundam has shown higher rate in capacity and less retention price whereas the Fertiliser Industry at Kakinada is shown lower rate capacity and given higher retention price and profits.• No small scale industries have come up as neither the ancillary status nor the price preference is given.
  12. 12. Except Hyderabad and Ranga ReddyOther 5 out of top performing7 districts are inAndhra.
  13. 13. Only 2 out of top 10 districts are inTelangana
  14. 14. •The benefits of all these Mega projects are mostly benefitted to the people of Seemandhra Region.
  15. 15. The benefits of tax freeholiday in labour loss goodincentives given to SEZs arein Andhra Region
  16. 16. AIRPORTS AND SEA PORTS AIRPORTS SEA PORTS• For growth of Industry we need Airports and sea Ports.•While Telangana Region has only one Airport, Andhra & Rayalseema region
  17. 17. The Industrial base of Seemandhrais no way less than Telangana
  18. 18. GROSS REGION WISE DOMESTIC PRODUCT OF ANDHRA PRADESH FROM MINING AND QUARRYING AT CURRENT PRICES (% IN CONTRIBUTION) Avera 1999-20 2001-0 2002-0 2003-0 2004-0 2005-0 2006-07 2007-08(p gSln Region 00 2000-01 2 3 4 5 6 ® ) e 1 Andhra 25.53 23.79 22.22 26.61 24.55 23.21 22.1 17.26 21.45 22.75 Rayalseem 2 a 6.32 6.48 8.47 7.44 8.44 8.2 14.77 41.02 35.72 15.21 3 Telangana 70.15 69.74 69.31 65.95 67.07 68.59 63.13 41.72 42.83 62.05
  19. 19. AP Existi Expected Rank in ng CapacitySector Major Projects on the Anvil All Capa addition in India city next 4 yearsPaper 1st 5.5 5.5 Lakh TPA •ITC, A.P.Paper Mills, White field Lakh paper Mills TPACement 1st 320.8 200 Lakh TPA •Jaypee, Grasim, Prism, 9 Bharathi,Anjani KCP, Andhra, BMM, Lakh Bhavya, Jayajyothi, JSW. TPATextiles 2nd 24 24 Lakh MtrPA •Idupuladu, NSL, Lalita Parameswari Lakh , Razivir Mtr. PAIron & 3rd /4th 100 105 Lakh Tons •Novus Steel , Sarda Metals &Steel Lakh Alloys, Brahmani Steels, SBQ Tons Steels, SJK Steels (Exp), Beekay Steels, Eko Steels , Rastriya Ispat Ltd (Exp), Cauvery Iron & Steel
  20. 20. Mega projects Under Implementation 1 (above 500 Crores) InvestmentS.No. Name & Address (Crores) EmploymentCement Industries 1 Ultra Tech Cement Ltd(Expansion),Kurnool 1,914 650 2 Jai prakash Associates Ltd,Krishna 1,650 975 3 Grasim Industries Ltd,Kurnool 1,473 900 4 Prism Cement Limited(Expn),Kurnool 1,100 700 5 JSW Cement Ltd,Kurnool 1,100 700 6 Gujrat Ambuja Cement,Guntur 849 860 7 Sree Jaya Cements Ltd,Kurnool 586 211Steel Industries 8 Rashtriya Ispat Nigam Ltd,Vishakapatnam(Exp) 13,307 1,901 9 Brahmani Industries Limited,Kadapa 7,639 2,275 10 Sarda Metals and Alloys Limited,Vizianagaram 1,997 2,185 11 SJK Steel Plant Ltd.(Expansion),Ananthapur 1,923 1,000 12 Beekay Steel Industries Ltd., Vizianagaram 566 975
  21. 21. Mega projects Under Implementation 2 (above 500 Crores)S.No Investment . Name & Address (Crores) EmploymentPaper Industries 13 ITC Lim ited,PSPD,Unit,Khammam 1,100 500 14 Whitefield Paper Mills Ltd,West Godavari Dist 1,000 12,000Power 15 Coastal Andhra powerLtd,Nellore(Dt) 16,000 400 16 east Coast Energy Private Ltd,Srikakulam Dist. 11,095 1,900 17 Krishnapatnam Power Corporation Ltd. ,Nellore 9,405 1,040 19 Nagarjuna Constructions Company Ltd,Srikakulam 8,906 300 20 Meenakshi Energy Pvt. Ltd. Nellore dist 2,680 2,211 21 Simhapuri Energy Pvt. Ltd,Nellore Dist. 2,659 480 22 Gautami Power Ltd. East Godavari Dist. 1,183 120 23 Geede Infrastructure Pvt. Ltd ,East Godavari dist 1,350 300 24 Konaseema Gas Power Ltd. East Godavari dist 1,183 120 Vemagiri Power Generation Limited ,east Godavari 25 dist. 1,124 160 26 Shalivahana Power Ltd. Adilabad 1,059 170
  22. 22. Mega projects Under Implementation 3 (above 500 Crores) InvestmentS.No. Name & Address (Crores) EmploymentPower 26 Lanco Kondapalli Power Limited,Krishna Dist 985 70 27 Austral Coke and Projects Limited,Vishaka Patnam(DT) 800 3,000 28 KVR Nilachal Power Pvt. Limted,Vishakapatnam 800 300 Priya darshini Jurala Hydro Electric Project, 29 Mahboobnagar 558 100 30 Karthik Rukmini Alloys & Energy Ltd. Adilabad Dist. 520 350Miscellaneous Industries 31 Anark Aluminium Limited ,Vishakapatnam (Dt) 7,060 41,250 32 Nano Tech Silicon India Pvt. Ltd,Ranga Reddy Dist 2,600 1,200 KSK Surya Photo Voltaic Venture Pvt Ltd ,Ranga 33 reddyDist 1,804 608 34 NCS Renewable Energies Limited ,Ranga Reddy Dist. 1,250 300 35 Tummanapalle Uranium,Kadapa Dist. 1,029 1,434 Total 1,10,319 81,135
  23. 23. Telangana totally neglected for Mega projects• Mega Projects Proposed are only 7 out of 35 in Telangana.• Creating employment for only 3228 out of 81,135 which is only about 2.5% in Telangana.• The Proposed Investment of 1,10,319 Crores only 8,890 Crores which is less than 8%in Telangana region.• This reminds the fund allocation during 2009-10 in case of Panchyath Raj in regard to NABARD and PMGSY funds• In case of rural development in regard to NREGS and• Many more such decisions deprieving the interest of Telangana.
  24. 24. Diversion of Revenue of Telangana to Andhra• 83% of contribution of sales tax is from Telangana.• The excise duty is also very huge from Telangana. But all these Revenues are diverted to Andhra Region for their Development.• This reminds me what Madam Bikhaji Kaama said at international Socialist Congress at Sputtgarj,Germany during British Rule.
  25. 25. Struggle to separate Telangana reminds the struggle for Independent India• She urged international community “to come forward to unite to emancipate India from clutches of British Domination. The average income per head in India was 3 farthings only because 35 milion pound sterlings were taken out of India every year which goes to England to make that wealthy country more and more wealthy. While in India owning to poverty we die half a millon every month”.• It also reminds me the words of Lion of Punjab Lala Lajpath Rai at Mumbai on Feb 1920.• That the Secretary of states speaks that there is glorious association of India and England. According to him the British saved India from Anarchy and if British leaves India then India will be again thrown into the arms of Anarchy.• He said that the greater Anarchy is to live under the yoke of a foreign power to be ruled under Government which does not allow you to have say in making the Law that shape your destiny.• When we have faced British rule we can face any thing. There cannot be any thing worse than this slavery. If British think that we fight and fall apart I am ready to face that also. We have been fighting each other for years now the time has come to work together.
  26. 26. CONCLUSION• Unless we stop diversion of funds• Unless we get the right to make our own law to shape our destiny• We cannot progress in Industrial sector• Hence I appeal the Hon’ble Committee to recommend for Separate Telangana state where we can progress
  27. 27. THANK YOUSomarapu Satyanarayana,MLA(Independent),23- Ramagundam