Telangana’s Industrial Single Window Policy Will Be Implemented Like RTI

Jayesh Ranjan, VC & MD, Telangana Industrial Infrastructure Corporation, shares the spirit of the Telangana industrial policy, that is to be unveiled shortly, in an interview with ToI.

How interested is industry and the investor community since the new Telangana government has taken charge?

Just about 2 months have passed by since the new state has been formed and the new government has taken charge. The kind of enthusiasm that has come from international, domestic and local industrialists and investors, I haven’t seen such a phenomenon before. Practically the who’s who of the business community has paid a call to Hyderabad to meet the Chief Minister. No single week has passed without one mega investment decision or the other getting announced. So it’s all very exhilarating, very positive.

How much does the city of Hyderabad contribute to the positive sentiments among the potential investors?

One very fundamental thing to understand is that certain advantages that nature has endowed to Hyderabad, are unparalleled. No other city can match that. The location of the city, the weather, the welcoming nature of the city and her people is there to stay. The other features that we have created over time, for example the airport, the outer ring road, an outstanding pool of education institutions and medical facilities all add up to make the destination unbeatable.
Mercer Ratings for the past ten years rate Hyderabad in the top three always for the quality of living .

It’s true that in the recent past investment decisions in Hyderabad have been deferred… people who wanted to invest had adopted a `wait and watch’ policy. But mostly, corporates have waited to see what the final outcome is like after the bifurcation. A decision to move away from Hyderabad is not an easy one, as the trade-offs are very high. People are now gravitating back, since the situation is clearly now stable and also very welcoming.

Infact, in the very first month, IKEA, which is an iconic international brand, announced it is going to open their store in Hyderabad. This is a very good indication of future trends. Coca Cola is exploring whether they can set up a bottling unit here. We are in early-stage talks with several international players, these are just a couple I have mentioned here. There are concerns about the deficit power situation in the new state though.

Post bifurcation this state has become power deficit. In real terms it’s close to a 3600 MW deficit, as most of the erstwhile composite state’s power generating facilities are now located in the residuary state of Andhra Pradesh. This has of course been envisaged be fore, and the government of India has committed to overcome this power deficit by commissioning a 4000 MW plant through NTPC.

That will take 2-3 years. However, we are not willing to wait that long for the situation to change and things to ease out. So two-three interim steps are being implemented. One is to find surplus power, in states such as Chhattisgarh which have a reasonable tariff. Power lines to transmit from Chhatisgarh state are being developed. So tomorrow when the state becomes self sufficient, we will have a good backup. Secondly, on the coast in the residuary state, power plants are working below capacity; so over a period of time, many will come into full production. As per the Reorganization Act, they will share it through a power purchase agreement with Telangana. That will also help in easing the situation.

Finally, Industrial Infrastructure Corporation is tasked to develop a 1000 MW solar power park. We have partnered with SECI (Solar Energy Corporation of India) and are commencing the development of solar power over a 5000-acre park, for 1000 MW in a year.

All this should make the state quite comfortable in 3 4 years. Also, a dedicated discom is envisaged for industries in Telangana.

Can you shed light on some features of the up coming Telangana Industrial Policy, how will it be different from any thing industry has experienced all along?
The new policy will be out shortly, but I can still list a few significant highlights of the upcoming policy. First of all, our approach to land allotment will be different. All the states talk about industrial land bank, claiming that the state will provide industrial lands to a corporate as per the requirement. We are going one step further, stating precisely where the land parcels are, survey number wise, and also explaining the features of the land available. Our intention is to create a land bank of three to five lakh acres, which will be the largest by far in India.

Further, the infrastructure development will be comprehensively completed before actual allotments are made.
So in effect, an industry can move in and start building from day one. Next, all clearances and permissions will come through an effective single window. To encourage transparency and efficiency, we are in the process of creating a mechanism wherein we have to show results within a specified time period. The tool which we are going to use to achieve that is parallel to the Right to Information Act. An entity can appeal against the agency if they have not been given information deliberately.

We are introducing the same system that governs the RTI, that anyone involved in these transactions, has to be answerable. This is a first in the country, nowhere else is assurance given that you will be delivered your permission in two weeks, and penal action will be taken if it is bit done so.

In your experience, how well do incentives work in bringing in investors?
It’s not just about incentives alone. All states give incentives, some a little more than others. How quick, timely and certain incentives will be, is imperative. A state agency may issue a paper order, and say that a corporate is eligible for, say, a Rs 20 lakh incentive, but if it takes more than three years to fructify, there is no value to the incentive. Through our new policy, we will create a time-bound and attractive package. We also hope the Government of India will also add to that as it is provided for in the Reorganization Act. We are yet to know what the central incentives specifically will be, but there are a few central taxes, and we hope there will be some concessions, rebates in that.

Water supply could become an issue with rapid industrialization All water sources in the state will reserve 10 percent of their water for industry. The cumulative water supply is more than what industry requires, so we are assured of the industries requirements being taken care of. -(ToI)