No reversal on foreign investment, IT policies: YSR Reddy

Industry department told to write letters to major companies

The Congress government in the state yesterday said that its pro-farmer government did not mean the reversal of policies with regards to IT sector or the foreign investment pursued by the previous government.

Chief minister Y S Rajasekhara Reddy (YSR) yesterday sent this message across to the corporate world, especially the software industry and other foreign companies.

According to highly placed sources, the new chief minister has directed the industry department officials to write individual letters to all those companies reaffirming that the pro-active policies pursued by the previous government in providing incentives or other facilities to IT and foreign investment would be continued.

Making clear his views on various sectors to senior officials of the industry department, Rajasekhara Reddy is learnt to have told them that the previous government's efforts in lobbying for Volkswagen plant at Vizag and other such projects should continue and also take them to their logical conclusion.

According to sources, YSR has particularly asked the officials to impress upon the software companies and the other potential foreign investors that the Congress government would extend all support in expanding their corporate activities in the state.

"Industries commissioner Sameer Sarma will soon write letters to all the companies with over and above Rs 100 crore turnover, reaffirming the government's commitment towards their development," a senior official told Business Standard.

Apart from reassuring IT and other service sectors, the chief minister has asked the industry department to focus on the revival of sick units in the state. Sources said that the chief minister is keen to hold a meeting with the managements of sick units on the question of their possible revival.

Industry officials are expected to come out with a preliminary report on the issue before the meeting. In its election manifesto, the state Congress party has promised to work on the revival of the sick industrial units, the number of which runs into thousands across the state.

YSR considers this as a first step in strengthening the secondary sector in the state. The chief minister is also planning to visit some of the important industrial estates to get first hand information on the status of the industrial sector besides the implementation of various government schemes in this regard.