Telangana Fallout: Companies put plans on hold in Andhra

Hyderabad: The Telangana agitation over the Centre’s decision to create a new state in the region has forced several companies, including Bharat Forge, the Lakshmi Mittal Group and the NTPC-BHEL joint venture, to either put their expansion plans on hold or explore other states.

Projects moving out


Addressing the media here on Tuesday after a meeting with industry representatives, Chief Minister K Rosaiah said Bharat Forge, which planned to set up a nuclear power plant equipment unit at Nellore at an estimated cost of Rs 2,500 crore, was considering moving to Gujarat.
The proposed project was to generate employment opportunities for 5,000 people. Andhra Pradesh succeeded in getting the project after a stiff competition with Tamil Nadu.
Likewise, French car maker Peugeot, which was considering investments in the state, and steel major Lakshmi Mittal Group, which had also planned a unit here, were going slow on their expansion proposals.
The chief minister said Sri Lanka-based Brandix Apparel, which has units in Nellore and Visakhapatnam, was rethinking on its decision to set up a unit in the Telangana region. The company provides large-scale employment to the locals.

In June, the Andhra Cabinet had already approved allotment of 750 acre to bag the project for which the state had faced stiff competition from Rajasthan.
The NTPC-BHEL project was supposed to be the largest public sector investment in the state after the Vizag Steel Plant and had a potential to provide direct employment for 6,000 people, besides indirect employment for over 25,000. It had plans to manufacture equipment for thermal, hydro, gas and power plants.
Prime Minister Manmohan Singh was to lay the foundation stone for the unit but this was postponed following the death of former chief minister YS Rajasekhara Reddy. "We are not able to approach the prime minister asking to lay the foundation stone in view of the turmoil in the state," Rosaiah said.

Agitation intensifies
Meanwhile, the ongoing agitation for statehood to Andhra Pradesh's Telangana region intensified Tuesday as thousands of people from all walks of life came on to the streets in various districts to press for their demand.
Protests, road blockades, rallies, processions, meetings, human chains and cultural programmes were organised across the region by all political parties and other pro-Telangana groups.
Tension continued at Osmania University, the nerve centre of the agitation, as students took out a procession to the police station demanding release of their leaders. Police had a tough time controlling the angry students.
The protest was held even as police stepped up efforts to foil the plans of the Joint Action Committee (JAC) of the students for a 'Chalo Hyderabad' march and rally Jan 3. Police have denied permission for the protests and imposed prohibitory orders in and around the city.

However, the government Tuesday received a jolt with the state high court quashing its order for closure of all university hostels and messes in Telangana. The court directed that the hostels and messes be reopened with necessary measures to prevent the entry of outsiders.
Police went on alert in Hyderabad and other parts of the region a day ahead of the shutdown called by the all-party JAC. Additional forces, including paramilitary personnel, were deployed in the state capital and other towns.
The tussle between students on hunger strike and the police continued on the campuses of all universities in the region, especially the Kakatiya University in Warangal.

New Year celebrations under threat
Some student unions have threatened to disrupt New Year celebrations at Ramoji Film City on the outskirts of Hyderabad. A group of students staged a protest outside the film city owned by media baron Ramoji Rao.
Hyderabad Police Commissioner B. Parasada Rao has warned of strict action against those planning to disrupt New Year celebrations in the city.
Demanding withdrawal of cases booked against those participating in the agitation, lawyers staged a sit-in outside the Nampally criminal court complex.
In Warangal, students, lawyers and government employees came together to stage massive protests. Lawyers boycotted courts.

In Karimnagar town, hundreds of people marched through the streets demanding the immediate formation of Telangana state. Leaders of all parties vowed not to rest till the central government announced the formation of the state.
Protesters in various towns also used folk songs and cultural performances to highlight their demand.
In Mahabubnagar district, government employees resorted to a 'pen down' protest in support of the Telangana movement.
The 'fast unto death' and relay hunger strikes by students, lawyers and legislators cutting across party lines also continued.