A presentation given by Shri. Somarapu Satyanarayana to Shri Krishna

1. TELANGANA AND INDUSTRIES
To
The Srikrishna Committee for
Consultations on the Situation in
Andhra Pradesh
BY
SOMARAPU SATYANARAYANA
MLA -Independent

2. TELANGANA DISTRICTS
• Adilabad
• Nizamabad
• Karimnagar
• Medak
• Hyderabad
• Ranga Reddy
• Nalgonda
• Mahboobnagar
• Warangal
• Khammam

3. INDUSTRIES IN TELANGANA REGION

4. INDUSTRIES IN TELANGANA REGION
• Industrial Backwardness of Telangana
• After the Agriculture the Industry is the prominent sector for employment and
growth.
• A number of industrial estates and units have come up on peripheries of the
Hyderabad city. Most of these units have been turned into sick units.
• No industrial development in outside of Hyderabad
• The strong kinship feeling amongst migrants, prevent employing the locals.
• In Telangana there is a lot of mineral wealth. Especially coal reserves and iron
ore reserves. It is easy to develop Telangana industrially. Due to high taxation
and negligence of government only industries are less in Telangana except
Hyderabad and surroundings.
• Key sectors in manufacturing industries like Automobile and auto components,
bulk drug industries, food and agro industries (SEZs AEZs) textile ,leather
,tourism projects and recent Pharma city also not many in Telangana.

5. INDUSTRIES IN TELANGANA REGION
Micro Small & Medium industries existing in Telangana
Upto 31-3-2009
S.No. District Units Investment (Rs. In Employment
crores)
1 Adilabad 1953 80.56 21365
2 Nizamabad 4032 161.73 37552
3 Karimnagar 5174 216.61 48798
4 Medak 5159 1008.83 69976
5 Hyderabad 15477 374.68 125329
6 Rangareddy 21551 2961.44 232175
7 Mahboobnagar 3517 250.95 33558
8 Nalgonda 7823 456.05 82203
9 Warangal 6423 189.09 52226
10 Khammam 4812 331.31 44904
Total 75921 6031.25 748086

6. Scenario of sick Industries in
Telangana Region
SNO District No of SSI Existing
1 Adilabad 1943 508
2 Nalgonda 7066 2003
3 Medak 4226 1716
4 Rangareddy 25642 6093
5 Warangal 3033 *
6 Mahabubnagar 2277 1812
7 Karimnagar * *
8 Nizamabad * *
9 Khammam 5124 *
*indicates figures not furnished by industries department
•75% of small industries were turned to sick and closed.

7. Poor Encouragement to Telangana
Entrepreneurs
• The Banks and financial institutions executives are
mostly of Andhra Region.
• The Industries Department is dominated by officials from
Andhra Region.
• The Entrepreneurs of Andhra region are encouraged,
supported to becomes successful unlike entrepreneurs
from Telangana.
• This is the main reason for sickness of many industires
of Telangana.
• Ancillary status price preference etc. are not considered
in Telangana by which sufficient SSI units are not
coming up in Telangana.

8. LARGE INDUSTRIES IN TELANGANA REGION
Large scale Industries as on 31.3.2009
Upto 31-3-2009
S.No. District Units Investment Employment
(Rs. In crores)
1 Adilabad 27 1107.06 56227
2 Nizamabad 26 229.91 3722
3 Karimnagar 20 1336.73 40621
4 Medak 819 7346.67 121000
5 Hyderabad 390 1158.43 46514
6 Ranga Reddy 917 8864.95 149446
7 Mahabubnagar 163 1583.59 22586
8 Nalgonda 245 6414.09 44265
9 Warangal 21 110.37 3342
10 Khammam 39 2254.82 151630
Total 2667 30406.62 639353

9. Telangana Major Industries
benefitting Andhra Region
• There are few Major industries in and around
Hyderabad.
• Mostly they are IT industries which can be packed and
shifted any time unlike steel industry at Vizag and
fertilizer industry at Kakinada.
• Even from the Major industries in Telangana benefits to
Andhra.
• In Opencast coal mines the land oustees are not paid
compensation for decades, no employment is given.
• Majority of Officials and Contractors from Andhra are
benefited through these mines of Telangana.
• The Coal extracted is transported and power is
generated in Andhra & Rayalseema regions.

10. The fate of Major Industries in Telangana
• In 1956, when Telangana state (Hyderabad state) was merged to form Andhra Pradesh,
the region was a buzz of activity with several large thriving industries, chief among
which were the Azam Jahi Mills, Nizam Sugar Factory, DBR Mills, Sirpur Sir Silk Mills,
Deccan Glass factory, Praga Tools, Soda factory, Iron factory , Firangula factory, and
the Antargam spinning mills. These factories collectively employed over 1,00,000
workers in Telangana.
• All the above industries have been nurtured to sickness and closure.
•
• Government sold the land to Seemandhra businessmen, who later converted the
industrial land into housing colonies.
• The Nizam Sugar Factory in Bodhan was at one time Asia’s biggest sugar factory.
•
• The factory was managed into sickness by the cadre which was primarily deputed from
the Andhra region. It was finally sold at a throw away price to Gokaraju Rangaraju from
W.Godavari district of Andhra Pradesh.
• The story of the Azam Jahi Mills is similar, this was established in Warangal during
Nizams rule and provided livelihood to about 15000 people in Warangal. It was also
managed to sickness, closed down and the Mills lands sold as real estate . A housing
colony is being built on this prime land in the heart of Warangal.
• Contrast this Government have patronized in reviving the sick Vizag Steel Plant at a
cost of 1,500 crores.
• This Amount would have been sufficient to revive all the 8 industries in Telangana, and
saved the livelihood of our people.

11. Ramagundam Industrial Belt
Neglected
• During the Period of Nizam,his Engineer Mr.Layaq Ali often said
“Ramagundam would be Manchester of India.
• The Thermal Plant of Nizams time is closed.
• The Thermal Plant of 63MW is working beyond its lifetime. Any time it may
close.
• The APGENCO is not giving any pit head Thermal station to Ramagundam.
However the coal is transported for hundreds of Kilometres and establish
Thermal station at Cuddapah where there is no proper source of water at
the cost of public.
• The BPL project started about 12 years back has not commenced for no
reason.
• The Fertilizer industry which was at no cash loss was closed even though
there was double the demand in neighbouring districts.
• The Fertiliser Industry at Ramagundam has shown higher rate in capacity
and less retention price whereas the Fertiliser Industry at Kakinada is shown
lower rate capacity and given higher retention price and profits.
• No small scale industries have come up as neither the ancillary status nor
the price preference is given.

12. Except Hyderabad and Ranga Reddy
Other 5 out of top performing
7 districts are in
Andhra.

13. Only 2 out of top 10 districts are in
Telangana

14. •The benefits of all these Mega
projects are mostly benefitted
to the people of Seemandhra
Region.

15. The benefits of tax free
holiday in labour loss good
incentives given to SEZs are
in Andhra Region

16. AIRPORTS AND SEA PORTS
AIRPORTS SEA PORTS
• For growth of Industry we need Airports and sea Ports.
•While Telangana Region has only one Airport, Andhra & Rayalseema region

17. The Industrial base of Seemandhra
is no way less than Telangana

18. GROSS REGION WISE DOMESTIC PRODUCT OF ANDHRA PRADESH FROM MINING AND
QUARRYING AT CURRENT PRICES (% IN CONTRIBUTION)
Avera
1999-20 2001-0 2002-0 2003-0 2004-0 2005-0 2006-07 2007-08(p g
Sln Region 00 2000-01 2 3 4 5 6 ® ) e
1 Andhra 25.53 23.79 22.22 26.61 24.55 23.21 22.1 17.26 21.45 22.75
Rayalseem
2 a 6.32 6.48 8.47 7.44 8.44 8.2 14.77 41.02 35.72 15.21
3 Telangana 70.15 69.74 69.31 65.95 67.07 68.59 63.13 41.72 42.83 62.05

19. AP Existi Expected
Rank in ng Capacity
Sector Major Projects on the Anvil
All Capa addition in
India city next 4 years
Paper 1st 5.5 5.5 Lakh TPA •ITC, A.P.Paper Mills, White field
Lakh paper Mills
TPA
Cement 1st 320.8 200 Lakh TPA •Jaypee, Grasim, Prism,
9 Bharathi,Anjani KCP, Andhra, BMM,
Lakh Bhavya, Jayajyothi, JSW.
TPA
Textiles 2nd 24 24 Lakh MtrPA •Idupuladu, NSL, Lalita Parameswari
Lakh , Razivir
Mtr.
PA
Iron & 3rd /4th 100 105 Lakh Tons •Novus Steel , Sarda Metals &
Steel Lakh Alloys, Brahmani Steels, SBQ
Tons Steels, SJK Steels (Exp), Beekay
Steels, Eko Steels , Rastriya Ispat
Ltd (Exp), Cauvery Iron & Steel

20. Mega projects Under Implementation 1
(above 500 Crores)
Investment
S.No. Name & Address (Crores) Employment
Cement Industries
1 Ultra Tech Cement Ltd(Expansion),Kurnool 1,914 650
2 Jai prakash Associates Ltd,Krishna 1,650 975
3 Grasim Industries Ltd,Kurnool 1,473 900
4 Prism Cement Limited(Expn),Kurnool 1,100 700
5 JSW Cement Ltd,Kurnool 1,100 700
6 Gujrat Ambuja Cement,Guntur 849 860
7 Sree Jaya Cements Ltd,Kurnool 586 211
Steel Industries
8 Rashtriya Ispat Nigam Ltd,Vishakapatnam(Exp) 13,307 1,901
9 Brahmani Industries Limited,Kadapa 7,639 2,275
10 Sarda Metals and Alloys Limited,Vizianagaram 1,997 2,185
11 SJK Steel Plant Ltd.(Expansion),Ananthapur 1,923 1,000
12 Beekay Steel Industries Ltd., Vizianagaram 566 975

21. Mega projects Under Implementation 2
(above 500 Crores)
S.No Investment
. Name & Address (Crores) Employment
Paper Industries
13 ITC Lim ited,PSPD,Unit,Khammam 1,100 500
14 Whitefield Paper Mills Ltd,West Godavari Dist 1,000 12,000
Power
15 Coastal Andhra powerLtd,Nellore(Dt) 16,000 400
16 east Coast Energy Private Ltd,Srikakulam Dist. 11,095 1,900
17 Krishnapatnam Power Corporation Ltd. ,Nellore 9,405 1,040
19 Nagarjuna Constructions Company Ltd,Srikakulam 8,906 300
20 Meenakshi Energy Pvt. Ltd. Nellore dist 2,680 2,211
21 Simhapuri Energy Pvt. Ltd,Nellore Dist. 2,659 480
22 Gautami Power Ltd. East Godavari Dist. 1,183 120
23 Geede Infrastructure Pvt. Ltd ,East Godavari dist 1,350 300
24 Konaseema Gas Power Ltd. East Godavari dist 1,183 120
Vemagiri Power Generation Limited ,east Godavari
25 dist. 1,124 160
26 Shalivahana Power Ltd. Adilabad 1,059 170

22. Mega projects Under Implementation 3
(above 500 Crores)
Investment
S.No. Name & Address (Crores) Employment
Power
26 Lanco Kondapalli Power Limited,Krishna Dist 985 70
27 Austral Coke and Projects Limited,Vishaka Patnam(DT) 800 3,000
28 KVR Nilachal Power Pvt. Limted,Vishakapatnam 800 300
Priya darshini Jurala Hydro Electric Project,
29 Mahboobnagar 558 100
30 Karthik Rukmini Alloys & Energy Ltd. Adilabad Dist. 520 350
Miscellaneous Industries
31 Anark Aluminium Limited ,Vishakapatnam (Dt) 7,060 41,250
32 Nano Tech Silicon India Pvt. Ltd,Ranga Reddy Dist 2,600 1,200
KSK Surya Photo Voltaic Venture Pvt Ltd ,Ranga
33 reddyDist 1,804 608
34 NCS Renewable Energies Limited ,Ranga Reddy Dist. 1,250 300
35 Tummanapalle Uranium,Kadapa Dist. 1,029 1,434
Total 1,10,319 81,135

23. Telangana totally neglected for Mega projects
• Mega Projects Proposed are only 7 out of 35 in Telangana.
• Creating employment for only 3228 out of 81,135 which is only
about 2.5% in Telangana.
• The Proposed Investment of 1,10,319 Crores only 8,890 Crores
which is less than 8%in Telangana region.
• This reminds the fund allocation during 2009-10 in case of
Panchyath Raj in regard to NABARD and PMGSY funds
• In case of rural development in regard to NREGS and
• Many more such decisions deprieving the interest of Telangana.

24. Diversion of Revenue of Telangana
to Andhra
• 83% of contribution of sales tax is from
Telangana.
• The excise duty is also very huge from
Telangana. But all these Revenues are diverted
to Andhra Region for their Development.
• This reminds me what Madam Bikhaji Kaama
said at international Socialist Congress at
Sputtgarj,Germany during British Rule.

25. Struggle to separate Telangana reminds the
struggle for Independent India
• She urged international community “to come forward to unite to emancipate
India from clutches of British Domination. The average income per head in
India was 3 farthings only because 35 milion pound sterlings were taken out
of India every year which goes to England to make that wealthy country
more and more wealthy. While in India owning to poverty we die half a
millon every month”.
• It also reminds me the words of Lion of Punjab Lala Lajpath Rai at Mumbai
on Feb 1920.
• That the Secretary of states speaks that there is glorious association of
India and England. According to him the British saved India from Anarchy
and if British leaves India then India will be again thrown into the arms of
Anarchy.
• He said that the greater Anarchy is to live under the yoke of a foreign power
to be ruled under Government which does not allow you to have say in
making the Law that shape your destiny.
• When we have faced British rule we can face any thing. There cannot be
any thing worse than this slavery. If British think that we fight and fall apart I
am ready to face that also. We have been fighting each other for years now
the time has come to work together.

26. CONCLUSION
• Unless we stop diversion of funds
• Unless we get the right to make our own law to
shape our destiny
• We cannot progress in Industrial sector
• Hence I appeal the Hon’ble Committee to
recommend for Separate Telangana state where
we can progress

27. THANK YOU
Somarapu Satyanarayana,MLA(Independent),23- Ramagundam