Telangana Industries hit panic button

The Power Crisis in the newest state of the country has deepened to the extent of threatening the state’s industrial future. According to the highly placed sources in the government, the industries department had sent in a report to the Chief Minister that 100s of proposals submitted to make investments in the state by setting up industries, especially in the Small and Medium-sized Enterprises (SMEs) sector were being taken back. If not for the huge incentives, big industries too have gone for mass withdrawals but there are significant withdrawals in that segment too.

Representatives also met KTR and provided a detailed report about the 7,632 proposals they have received but 1,824 have been dropped already which would result in crores and with a loss of 3 lakh jobs.

Telangana which is currently on a Power emergency is going for two Power holidays for all the industries in the state over the last two months. The report also said that unless the government does some thing to arrest this situation, the state may face dire situations going further. Experts say that the Chief Minister’s comments of nothing can be done for the next 2-3 years to improve the power situation of the state is lowering the confidence of the investors.

Also the government is more confined to having the blame on to previous governments than taking any steps to improve the situation. Investors are of the opinion that even if the state purchases power at higher rate from the open market, its priority will be catering to the needs of agricultural and domestic uses and so are rethinking on their ideas to set up industries in the state. Analysts expect this situation to be a boon to the neighbouring Tamil Nadu, Karnataka and particularly Andhra Pradesh.