Andhra govt to get tough on firms delaying projects

In spite of the MoUs being signed, many projects in Andhra Pradesh are yet to take off. This inordinate delay in take off has become a cause for concern for the state government.

Chief minister YS Rajasekhara Reddy, who reviewed the status of MoUs entered into by various companies recently in sectors like textile, manufacturing and IT on Monday, asked the officials to help companies in removing any last mile issue related to government support while being tough on those taking unduly longer time for starting their operations.

The review meeting was held in the wake of reported bureaucratic delays related to issues like land transfer and also in the wake of some of the companies either backing out or not making any considerable progress in terms of project implementation.

While Vrindavan Textiles, which had proposed to set up a unit in South India Mills Association (SIMA)-promoted textile park at Naidupeta, has changed its plan, EBC Bearings, which has proposed to set up a bearings manufacturing unit at Hyderabad, has been preoccupied with shareholder issues that are apparently coming in way of its Hyderabad plans.

Officials who attended the review meeting said the chief minister was very keen on the speedy execution of textile projects.

The chief minister has asked the officials to serve notices to companies if undue delay was being reported on their part and cancel the MoUs if necessary to make way for others, a press release issued by the chief minister's office said.

The officials have apprised the chief minister of the status of the projects to be set up by textile units in the mini textile park at Nacharam in the city.

Companies like Gokaldas Exports, Orient Craft Limited, Texport Syndicate have proposed to set up their garment manufacturing units here.