Govt mulls making Buckingham Canal navigable

Keeping in view the potential of revenue inflows in water transport, the Andhra Pradesh government is contemplating making the Buckingham Canal (Krishna district) navigable.

Apart from this, the government will also be coming out with a policy on clusters for greater thrust on small-scale industry (SSI) units.

The 420-km-long Buckingham Canal was built as a salt water navigation canal. While around 250 kilometres of the canal lies in Andhra Pradesh, the remaining is in Tamil Nadu.

Earlier, the canal was used for the conveyance of goods via country boats. But after the cyclone in the 1960s, trade via the canal had been ceased.

Speaking at the 87th annual function of the Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci), chief minister Y S Rajasekhara Reddy said, "We are thinking of making the Buckingham Canal navigable because of the great revenue potential. Also, we will be coming out with a policy on clusters for the benefit of SSI units."

On Fapcci president O P Goenka's suggestion for creating a separate park for polluting industries like sponge iron and steel producing industries to tackle pollution problem and also encourage new sponge iron units, the chief minister said that the suggestion can be implemented.

Focussing on the needs of strengthening the manufacturing sector, Reddy said that while 14 per cent of the country's manufacturing firms are in Andhra Pradesh, their total output is just six per cent.

He added that the investment in the state has also come down from Rs 11,500 crore in the period between 1996 and 2000 to Rs 4,500 crore in 2001-05.

"We are, however, glad to announce that the industrial park "� Pharma City in Visakhapatnam "� has got the environmental clearance. So, now the industrial units in the park need not go for individual environmental clearance," he added.

While hailing the government's initiative of setting up a separate cell for infrastructure development and investment, Goenka said that the government needs to prevent migration of industries from Andhra Pradesh to other states like Assam, Himachal Pradesh and Uttaranchal because of income tax, excise duty concessions and cheap power available there.

Goenka said that they would be shortly associating with the Jawaharlal Nehru Technological University (JNTU) in formulation of syllabi.

"Towards the last week of May, we will also be holding a national seminar on 'Focus SME: Unleashing the Power', in association with the state government and the Indian School of Business (ISB)," he added.

On the occasion, companies including Tata Consultancy Services, KCP Ltd, Sanghi Polyesters and Singareni Collieries were given awards.