Andhra invites big retailers with open arms

Others may be discouraging big retailers from setting up shop in their states. But  Andhra Pradesh is ready to roll out the red carpet for  them.

"Big retail outlets are welcome in the state of Andhra Pradesh. We have got no doubt about it. Our experience in the past one year is that they can give a better price to farmers and they are able to give consumers better products at an affordable cost," Chief Minister Y S R Reddy said.

Organised retail chains would  hurt only the intermediaries and brokers in the farm trade business, he said, adding "they are trying to increase their turnover and reduce their margin. They are giving better rates to farmers and a better deal to consumers. I think we should encourage it".

Asked whether big retailers would not hit millions of small shopkeepers in the state, Reddy said they "will always have their way of earning. But that does not mean if a particular thing is not remunerative, one continues the same trade and same avocation. I do not think that is right".

Ultimately, he said, efficiency and productivity have to improve in an era of globalisation and liberalisation. "Even the farmers will not be happy if the productivity does not go up," he said.

Reddy's remarks assume significance in the context of organised retailers like Reliance Retail facing protests in states like Uttar Pradesh, Orissa, Kerala and Jharkhand.

About another controversial subject of Special Economic Zones, Reddy said 43 such zones are coming up in the state.

He said SEZs are "future growth areas whether in Information Technology or in general category. There is no doubt about it".

However, he added the governments must ensure that minimum number of farmers are displaced in setting up SEZs.

Andhra Pradesh has been one of the leading states which has attracted large investment in SEZs. Reddy said the Congress Government has proved the skeptics wrong by not only sustaining the IT growth in the state but also improving upon the performance of the previous TDP regime.

"IT growth has been phenomenal... IT exports have grown to Rs 19,000 crore (in 2006-07) from Rs 12,000 crore in the previous year. Our (state) is (at) number fourth position among the IT exporting states," he said.

He said the state remains a favoured destination for investment and industrialisation. His government has also reduced the industrial power tariff, he said.

"In the past three years, we have successfully reduced the industrial power tariff - we charge the lowest tariff. That was the reason for major industries coming to Andhra Pradesh," he said.

Reddy said as compared to Rs 4,524 crore during 2001-2004 period, industrial investment of Rs 10,295 crore materialised in the first three years of his government.

"The way things are happening, the way people are coming forward to establish new industries, I am quite sure that growth will be phenomenal in the next few years," he said.