Registra on Number of the News Paper APENG/2013/50384 July 2016 I Industrial View PUBLISHED BY

INDIA

VOLUME 02 ISSUE 38 JULY 2016 PAGES 52 Rs. 100

IndustrialFirst and only platform forMSMEs Triumphant 2Years

Branding KTR tours USA, East

Journalism MSMEsfor cause

NOT JUST SKILL IT IS SKILL WITH A VISION

SKILL DEVELOPMENT PROGRAMME ORGANISED BY THE FSME-INDIA IN ASSOCIATIOON WITH NI-MSME, ON FASHION DESIGNING CREATING A SELF EMPLOYMENT PROGRAMME FOR WOMEN Telangana Formation day Triumphant Years 2 8 Branding Telangana KTR’S USA TOUR Telangana is building bridges with the world. Though a just two-year old state, it is taking steps in the direction of becoming a dynamic and vibrant state in industry and IT. Two- week tour of the United States of America by the Minister for Industries, Information Technology and Municipal Administration has opened up new opportunities for Telangana. 18

4 I Industrial View I JULY 2016 JULY 2016I Industrial View I 49 Looking East for investments After a successful tour of USA now it’s look east for investments for Telangana. K T Rama Rao, Minister for Information Technology, Industries, and MA & UD, toured Singapore and Malaysia for three days staring from June 29, to attract the investments to the state.

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32 A visionary MSME policy soon

RAGHURAMA RAJU KALIDINDI MEDIA CONSULTANT 9849350555 PRINTED & PUBLISHED BY ARANI PRASANTH KUMAR REDDY ON BEHALF OF FEDERATION OF SMALL AND MEDIUM ENTERPRISES OF ANDHRAPRADESH, PRINTED AT HARSHITHA PRINTERS, 6‐2‐985, YOUSUF BUILDING, KHAIRATABAD, HYDERABAD ‐ 04. PUBLISHED AT FEDERATION OF SMALL AND MEDIUM ENTERPRISES OF ANDHRA PRADESH, FLOT.No. G1, DWARAKAMAI APART, HINDI NAGAR, DWARAKAPURI COLONY, PANJAGUTTA, HYDERABAD, A.P. EDITOR : ARANI PRASANTH KUMAR REDDY 48 I Industrial View I JULY 2016 JULY 2016I Industrial View I 5 Editorial

INDIA

CPM B.V. Raghavulu and Le Leaders on fast

Cherapalli Leader Sankara Chary, Chandra Sekhar Reddy, G.S. Reddy, M.M. Reddy, Sudhir Reddy, A.P.K.Reddy and others at the agitaon APK Reddy (Arani Prasanth Kumar Reddy)

EXPERIMENTING APK Reddy at a camp organised by le party in two states

Dharna by FSME‐AP & Kapra Micro Associaon members and president Laxmi Kanthaiah along with Telan‐ Sudhir Reddy, Telangana Industries Associaon gana Industries Associaon Sudheer Reddy at a protest

6 I Industrial View I JULY 2016 JULY 2016I Industrial View I 47 From the old issue (This story is being reproduced in this issue to help the readers to have a glimpse of the happening in the industrial sector in the past few years‐ Editor) FROM THE EDITOR-IN-CHIEF

mpty talk will not be ap- the MSME sector in these pilot dis- which we are assured of. Banks When the left, right and centre agreed preciated for long time. tricts is our goal. Though it looks and other financial institutions Mere demanding or advis- ambitious it is achievable as we have also need to cooperate with a hu- olitical parties rarely agree on an issue but all  Fix coal and gas price in proportion to production E ing will not reform a system. a committed resolve. mane approach towards the small political parties irrespective of their ideologies cost. Rate of gas should be finalized only in rupees FSME-India since its inception The rationale behind selecting entrepreneur in disbursing and came together to protest against the power cri- and not dollars. Importance to research in alterna- P took part in many official meet- these districts is specific to each dis- collecting the loans. sis. Power crisis that enveloped the state did not tive sources of energy like solar and wind. ings, deliberations and summits to trict. Nellore has the advantages of Apart from this FSME would spare anyone. Right from farmers, small and big in- Telugu Desam Party, YSRCP and BJP too took enhance the understanding of industry-friendly administration like to organise MSME Conclaves dustrialists to the daily wage earner all have been af- part actively and came out with their agenda. Both knowledge and practice of MSME under the leadership of the District in all these pilot districts to bring fected by the power cuts. TDP and YSRCP were of the view that the power tar- sector. We took active part in re- Collector M Janaki, strategic loca- all the stake holders on to one plat- Political party leaders from almost all parties iff should not be increased and uninterrupted power solving the issues of small and tion and people with entrepreneurial form to discuss, orient and pro- reached Dharna Chowk near Indira Park in Hyder- should be provided to the industries. Seven hours of medium enterprises with the help qualities. Presence of big public sec- ceed with the development of this abad when more than 27,000 entrepreneurs staged a power to the farmers also to be given is what they of administrative and financial in- tor industry and developed infra- sector. The MSME Conclave or- dharna protesting against power cuts. demanded. stitutions. structure are the qualities of ganised at Nellore was a roaring The left parties came With the formation of new gov- Visakhapatnam. In Telangana, success with a wide range of out with a 23 point alter- ernments in Telangana and Andhra Khammam with rich resources, both achievements, from general inspi- native power policy. Pradesh and at the centre two natural and human was chosen as the ration to getting specific boons They were vocal and years ago, new ideas and schemes pilot. Mahbubnagar, though adjacent like getting Diamond and jew- wanted the state to look were unveiled for MSME sector. to the capital city, is a victim of neg- ellery cluster from the Central into the issues of the in- At this juncture FSME took part in lect though being rich in resources, MSME Ministry. Taking lessons dustry. Top leaders of deliberations in the formulation of is the another short listed one. and inspiration from that we left parties felt that new policies by providing valuable While in Nellore, textile, aqua- would like to transform the atmos- power should be viewed inputs. based, pharma and small manufac- phere in all these four pilot dis- as a public utility service Now it’s time to put our propos- turing are the focus areas, In tricts into MSME heavens, to be and not as a commercial als in practice. That is why FSME- Visakhapatnam apart from aqua, emulated by the other districts. commodity. Allocation India has decided to experiment all MSMEs shall be developed as the In this great endeavour we in- of budget is required for the ideas we propose in some select ancillary to the heavy industry of vite all the stake holders, private AP Genco projects and districts in both the Telugu states. In this zone. Mahbubnagar, synony- and governmental to be our part- wanted it to generate Andhra Pradesh, Nellore and mous with the weavers of Gadwal ners to prove that MSMEs can 2,000 MW every year. Visakhapatnam and In Telangana and Narayanpet shall be the focus make the difference. The success Some of the points of Khammam and Mahbubnagar are area for developing clusters. Granite of the central schemes likes ‘Make the left alternative the select districts which will be the industry, forest-based food process- in India’ and innovative New In- power policy are: pilot districts. In all these four dis- ing and produce processing shall be dustrial Policies of Telangana and tricts with the help of the govern- the areas to be developed in Kham- Andhra Pradesh depend on the ini-  Scrap policy on mer- ment and financial agencies we will mam. tiatives like these. This is not an chant power projects Leaders felt that the previous governments han- be part of the entire process of estab- This is the way to innovate, ex- exaggeration, but the opinion de-  Withdraw permissions and allotment of energy for dled the power crisis better. Some leaders opined that lishment and nurturing of micro, periment and prove the ideas and rived out of good economics and such projects during Y S Rajashekar Reddy’s rule the reduced unit small and medium enterprises. concepts for the development of pro-people governance.  Not to privatise power distribution cost was 35 paise and the government scrapped nala Development of clusters, skill de- MSME sector, which we were talk- Arani Prashanth Kumar Reddy  Drop Fuel Surcharge Adjustment tax to provide employment to thousands. The gov- velopment and linking up educa- ing all these years. FSME has the re- (APK Reddy),  Return land to farmers that were taken for Sompet ernment then extended pavla vaddi to industries. tional institutions with industry, solve and what is required is the Ph.9642088889 and Kakarpally projects Grants to the extent of Rs 320 crore was released and facilitating with financial organisa- cooperation from the industrial National President  Give preference to Andhra Pradesh for KG Basin provided power subsidy of Rs 3 crore to 47 rice tions, creating scope for marketing- development corporations of (FSME- India) gas allotment mills. Even during TDP rule the power supply good, in one word, being part of the life of Andhra Pradesh and Telangana  ONGC must take over oil wells in Basin area felt the leaders.

46 I Industrial View I JULY 2016 JULY 2016I Industrial View I 7 IT annual report Telangana leads in IT growth rate he growth rate of exports in Information ity in the state. Already Thompson Electronics, Technology and Electronics of Telangana Celkon, and Micromax have started their operations Tstate is 13.26% which is better than the na- in Telangana. tional average of 12.3%. In the last one year the IT/ • Releasing of ICT Policy and four other sub- ITES sector provided employment to an additional Policies, inauguration of skill development initiative 35,611 professionals, taking the total workforce to of Telangana Government - Telangana Academy of 4,07,385. These are some of the few achievements Skill and Knowledge (TASK), and setting up of of Telangana in two years. India’s largest tech incubator set up T-Hub were the “Our pro-business policy, high quality infrastruc- important events last year. ture, cost-effectiveness, cosmopolitanism, presence • Telangana has become a favourite destination of institutions like TASK and T-Hub along with an for setting up or expanding their operations. Apple, overall pro-active approach has made the State Uber, Flipkart, Salesforce, and DBS are some of among the top IT destinations in the country” said, those companies, to name a few. Government has K T Rama Rao, Minster for IT while releasing the also been encouraging IT/ ITES companies to spread Annual Report of IT E&C Departmentfor the year to Tier II locations and announced incentives to this 2015-16 titled ‘Perfor- effect. mance report- Initiatives • Standing testi- and Achievements’. mony to the Telangana IT “We have continued to Department’s efforts to grow faster than the na- promote Tier II cities, tional average and have noted IT major Cyient also added thousands of has started its Develop- new jobs in the sector. The ment Centre at . first two years have given • Telangana us a very strong founda- emerged as the state with tion from where our leap number one citizen serv- into the future can only be ice delivery platform in higher and stronger”, said India with 30,423 e- the minster. transactions per thousand Jayesh Ranjan, Secretary IT E&C Department persons. The Electronic Services Delivery (ESD) said, “Through ICT Policy, we have endeavoured to wing served 3.51 crore persons during the last one create an extremely investor-friendly atmosphere and year. lay foundation for the State to take leadership posi- • Assisting, facilitating, supporting develop- tion in a number of emerging technology areas.” ment of ICT applications for other Government De- Important achievements of 2015-16 are- partments through portals, web applications, mobile • Telangana IT/ ITES exports achieved a apps and other digital means has transformed their healthy 13.26% growth rate better than the national functioning. Agri Phablet, RTA m-Wallet, ACB por- average of 12.3%. During the last one year the IT/ tal, Automatic Building Plan Approval System for ITES sector provided employment toan additional GHMC are some of those applications. 35,611 professionals, taking the total workforce to • IT E&C Department has won several awards 4,07,385. last year. Skoch Challenger Award in Start-up India • The Electronics Policy is expected to accel- category for Minister KT Rama Rao, PRCI erate the growth of electronics manufacturing in Chanakya Academic Excellence Award, 2015 for Telangana. Many major electronics companies are TASK, Skoch Smart Technology Award for Digital showing interest to set up their manufacturing facil- Telangana, MeeSeva 2.0, are some of them.

8 I Industrial View I JULY 2016 JULY 2016I Industrial View I 45 MSMEs to cater the needs of Indian army Telangana Formation day he Indian industry has good capability at home to develop the necessary equipment, but there is a need for further develop- Tment, said Lt General Subrata Saha, deputy chief of army staff of planning and systems. Speaking on the sidelines of a conference here, Lt Gen Saha said that “The needs of the army are two-fold. We want to procure defence equipment and products which cater to the present needs indigenously, but also want the Indian companies to de- velop futuristic technologies for our needs.” In the past two years the Ministry of Defence has encouraged Indian MSMEs to produce for the defence sector. The army itself needs to en- Triumphant gage directly with the industry to make them understand about the im- mense monetary potential for the Indian industry. “We have good capability at home to develop the necessary equip- ment. The ball has started rolling and there is room for further devel- opment. Products designed, developed and manufactured in India will have the highest priority,” he said.He further said that the revision in the Defence Procurement Procedure 2016 (DPP 2016), in line with the government's Make in India initiative, encourages indigenous design, development and production of defence-related equipment. Saha also said that the provision of threshold limit in the DPP would encourage the smaller companies to bid. “On one hand, we need prod- ucts while on the other we are in need of integrated solutions” he added. Years 44 I Industrial View I JULY 2016 2 JULY 2016I Industrial View I 9 wo years ago, on 2 June Governor ESL Narasimhan and Chief a beautiful dream turned Tinto reality. Decades-old Minister K. Chandrashekar Rao were the movement for self-rule culmi- Chief Guests at the Telangana State For- nated into the formation of a new state- which is known as mation Day Celebrations at HICC in Hy- Telangana. People were getting derabad. Telangana State Level Awards- re-organised to be part of the re- construction of Telangana. A 2016 were presented to Sixty Two persons lave lauded new state with new goals, new for their distinguished service in different government with a strong will to transform the decades-long fields. dreams, determination to con- The occasion was in a great jubilant vert decades-long demands into Live photos of the MSME Conclave at achievable victories. This is mood as the cultural performers and the Nellore posted precisely imprints the success. what Telangana stand for, today. people assembled represented the soul of Arun Khemka,Jharkhand Small Industry Association, Entire state celebrated second Trustee EGF and President GMY Telangana Formation day with Telangana. Well known writer, Singer, and joy, sense of victory and respon- performer, OSD to the Govt, The idea of MSME Conclave is wonderful and a sibility to build a developed state. Deshapati Srinivas’s speech and conduct- grand success.Please proceed further with the Chief Minister K Chan- ing the stage added a wonderful flavour of same inspiration for safeguarding the interests of drasekhar Rao in his formation MSME Sector which is facing enormous prob- day speech at Parade grounds Telangana culture. lems. You may conduct comprehensive aware- said that there was no point in ness, training and awareness quarrelling over sharing of river programmes to young Entrepre- waters, and both states of Telan- gana and Andhra Pradesh neurs.With more and more fresh should utilise their share of wa- entrepreneurs your dream of rapid ters as allocated by the tri- industrialization in MSME Sector bunals. This was a message to will be fulfilled and will pave way his counterpart N Chandrababu in eradicating un-employment. Naidu to live amicably and D Shankara Chary focus on the development in Managing Director two states. Super Forging Industry Cherlapally

10 I Industrial View I JULY 2016 JULY 2016I Industrial View I 43 MSME Conc MSME Conclave organised at Nellore was appreciated by many. Here are some of the responses.

Congratulations for mounting MSME Conclave at Nellore by FSME. It is always a good idea to do such programs. These programs generate interest, and motivate everyone, the entrepreneurs,officials, politicians, and the associationswho are involved in the process of development,. It is a good Initiative by FSME. I look forward to seeing more of such programs as we go by. M V Rajeshwara Rao CEO, CREDAI, Hyderabad

42 I Industrial View I JULY 2016 JULY 2016I Industrial View I 11 IBM partners with TASK To train graduates in Telangana engineering colleges

elangana Academy for and Big Data revolutionizing in- ices, IBM Software Group, IBM Skill & Knowledge dustries, it is imperative for stu- Asia Pacific said, “We are T(TASK) is roping in dents to be armed with relevant pleased to partner with TASK, Highlights of many top names in disseminat- knowledge in these areas. who can enable us to take the ing skills in the state. In this The objective is to enable the skills to the students necessary to process globally reputed IBM is learners with the latest skills that prepare for careers driven by partnering with TASK to build can be applied to any industry or new technologies like Cloud, KCR’s Speech skills on emerging areas of tech- function they choose to be in fu- Mobility and Big Data.” nology in the state of Telangana. ture. IBM will also set up co- Mr. Sujiv- Chief Executive The MOU was signed in May branded specialty Labs with Officer, TASK, expressed his would be an advantage for the select set of Institutes to provide confidence that the students of students. easy access to relevant software Telangana state will benefit from Under this collaboration, IBM and cloud platforms. This part- the offerings from career educa- will be conducting training pro- nership will enable students un- tion programs especially in grams in the area of Cloud & dergo experiential learning emerging technologies and this Mobile Based Applications and modules led by an innovative partnership between TASK and Big Data Analytics for the fac- curriculum developed and taught IBM Career Education will help ulty andstudents in the engineer- by IBM experts. students to access and learn the ing colleges across 10 districts of Commenting on the collabora- curriculum directly from IBM the state of Telangana. With tech- tion with TASK, Ms. Yeo Hwee thus improving their employabil- nology based on Cloud, Mobility Lee – Director, Software Serv- ity skills and become job ready.

12 I Industrial View I JULY 2016 JULY 2016I Industrial View I 41 • Water, funds and employment were the slogans of “I told Andhra Pradesh Chief Minis- • 2016-17 Budget Outlay was Rs 1,34,415 crore ter Chandrababu Naidu at Amaravati, • Aasara Pensions, Kalyana Lakshmi, Shadi Mubarak schemes for at the yagam and at other places that Centre should approve the poor we are neighbours and Telugus. There • 6 kg rice per head through PDS; fine rice for school students, is no need to quarrel. Telangana has from this year fine rice in college and university hostels sorted out issues with Maharashtra and Pharma City, NIMZ: KTR • 598 family members of martyrs to get jobs for the first time got 1 TMC from Kar- • Double bed room for poor, Journalists nataka for Jurala” he remarked. • Rs 5 lakh accident insurance for home guards, drivers, construc- “There is no need to quarrel on the tion labour and journalists water issue. I hope wisdom will prevail • No power cuts and the issue will be settled in an ami- • Mission Bhagiratha, drinking water supply to all house-holds by cable manner. The CWC has records of 2018 47 years of water flow. We have 2,654 • New irrigation projects like PalamuruEttipotala, Kaleswaram, tmc ft in Godavari and 1,204 tmc ft in Palamuru, Dindi, Sitarama, Pranahita with 2022 as the target of Krishna. We have 4,200 tmc ft, which is completion enough to irrigate four crore acres. Let • Completion of on-going projects like Kalwakurty, Nettempadu, AP utilise water for three crore acres and Bheema, Koilsagar, KomuramBheem, Nilvai, jagannathapuram leave water for one crore acres for us.” etc. KCR also set goals and a road map for • Mission Kakatiya to renovate 18,000 tanks the development of Telangana state in • New roads, 150 bridges constructed the next nine years. Any elected repre- • Got new National Highways sanctioned, Proposal for Regional sentative speaks of the targets till the Ring Road next elections but the confidence in KCR • Complete literacy as the target is not an unfounded one as the polity in • 250 Residential schools the state has changed rapidly in the past • 125 ft Ambedker statue at Hussain Sagar one year with the opposition being dec- • Improving public health system imated by desertions and joining the rul- • Eradication of illicit liquor ing party. This made the ruling • Innovative TS-ipass Telangana Rashtra Samithi to be confi- • Growth in the IT companies, IT companies to be spread in second dent of the victory in the next term and tier cities too thus they have set goals for the next nine • Harita Haram for afforestation years. • Saada Bainama to be regularised The Chief Minister explained his gov- ernment’s vision including creation of he Centre should help Telan- to begin with. He sought financial tax • Investigating the scenario in assigned lands and establishing As- more new districts for public and admin- gana by approving two pro- exemption for the SEZs and also sanc- signed Land Development Corporation for improving the situa- istrative convenience by this Dasara, Rs posed economic zones, Pharma tion of a leather park to the State. tion T • Forming 14-15 new districts by Dasara 2 lakh crore budget in 2019-2020, Rs 5 City and National Investment & Man- Rama Rao also requested the Union lakh crore budget by 2024, irrigation of ufacturing Zone (NIMZ), appealed K Minister to sanction multi-brand SEZs 1 lakh crore acres by 2022, 24-hour 3- Taraka Rama Rao when he met the to Telangana since the existing and phase power soon, eradication of drink- Union Minister of State for Commerce proposed ones were single-product ing water problems by mid-2018 and a Nirmala Seetharaman on 19 June. based. drought free state by 2022. During this meeting with the Union Andhra Pradesh and Telangana He also claimed that he had checked Minister in Delhi, Rama Rao sought a shared a commissionarate on SEZs lo- political corruption, and promises to financial assistance of Rs. 1,500 crore cated in Andhra Pradesh. He urged the weed out corruption at lower levels for the development of Pharma City. Centre to sanction an exclusive office through multiple actions including on- He claimed that Nirmala Seetharaman for Telangana with its headquarters at line transactions for permissions and had agreed to sanction Rs. 200 crore Hyderabad. others. Visualising a vibrant, economically

40 I Industrial View I JULY 2016 JULY 2016I Industrial View I 13 and industrially strong TS, Mr Rao reeled out various govern- ment developmental programmes and welfare schemes for the uplift of the poor. “Telangana’s growth rate is more than the na- Allocate Skill funds tional average. We have set the goal and laid a road map. You will see multiple, manifold growth. Let us all rededicate our- selves to uplift the poor and strive for development,” he said. The CM listed out the achievements of the Telangana gov- MP Constituency-wise ernment in power, welfare, housing, irrigation, drinking water, education, medical and health, infrastructure, industrial and IT sectors in two years. “Around 250 residential schools and col- MP Narsaiah Goud writes leges in English Medium for BCs, Minorities, SCs and STs are being opened this year as part of the KG-to-PG free education unds allocated for Skill De- scheme. This will reduce dropout rate among poorer sections” velopment in the country Chandrasekhar Rao added. Fshould be spent more effec- The Chief Minsiter said the government will soon set up four tively, feels Dr Boora Narsaiah multispecialty hospitals in Hyderabad and three in districts in Goud, a Telangana Rashtra Samiti government sector to make quality medical facilities accessible MP from Bhuvanagiri. He has re- to all, who cannot afford costly corporate hospitals. quested Rajiv Pratap Rudy, the Speaking on the financial condition of the state he said that Minister for Skill Development Telangana was poised to have a budget of Rs 2 lakh crore by through a letter in the month of 2020 and Rs 5 lakh crore budget by 2024. “It took about one December. Though it was sent year for the government to get clarity on the exact financial posi- long back it is being presented to tion. After knowing the income and expenditure, we presented the readers of Industrial View to over Rs 1.30 lakh crore budget during 2016-17 and now the state bring the important aspects of the was poised to move towards attaining Bangaru Telangana at a letter to the fore. faster pace”, the Chief Minister said. Though Rs 1500 crore were al- More than one lakh jobs have been created through the new in- located in this financial year for dustries set up in the last two years, the Chief Minister said. He skill development and statistical claimed success of his industrial policy, which emphasises on 'TS- data is being presented to say iPASS' (Telangana State Project Approval and Self-Certification that the scheme is a success, ‘the System) and promises to grant all statutory permissions through impact is not really felt on the a single window.Referring to Information Technology (IT) he said ground and more specifically in it will no more be confined to Hyderabad but will be expanded to terms of employability’, Narsa- tier two cities. Telangana had 1,300 new IT units after it became iah commented. His views are a state, separate from Andhra Pradesh. important as he is also a Member Fulfilling the promise of helping families of the martyrs who of the Parliamentary Standing laid down the lives during the Telangana movement for a separate committee on Labour and Em- state, Governor ESL Narasimhan and Chief Minister K Chan- ployment, Commerce and Indus- drashekar Rao handed over Government job appointment letters try. related to that constituency With these small but focussed to families. He suggested a few points for • Instead of establishing modifications, Boora Narsaiah is K Chandrashekar Rao hoisted the national flag at Parade consideration by the minister to multiple skill development cen- confident that the Skill Develop- Ground on the occassion of second anniversary of Telangana for- utilise the funds in a more useful tres, identify one ITI or institute ment Programme of the central mation. CM took salute and inspected the ceremonial guard of manner. The Bhuvanagiri MP where a state, central, private or government will yield good re- honor. Police medals for gallantry and meritorious service were suggested, public enterprise is located sults. Many MPs also signed this also presented by the Chief Minister on the occassion. • Allocation of Rs 3 crore • Make the member of Par- letter and supported the sugges- In the morning he paid floral tributes to Telangana Martyrs at per parliamentary Constituency liament as the mentor for the proj- tions of Dr Narsaiah. Gun Park and later he hoisted the largest Indian National Flag with a specific skill development ect in commemoration of Telangana State Formation Day at San- jeevaiah Park, Secunderabad.

14 I Industrial View I JULY 2016 JULY 2016I Industrial View I 39 Uttar Pradesh Journalism MSME status for for Sugarcane crushers MSMEs cause ere is the sweetest news for the sugarcane grow- Hers of Uttar Pradesh from the central government. In an ef- fort to provide an alternative source of earning to the sugar- cane growers of Uttar Pradesh, the central government is mulling revival of localised cane crushers by including them in the micro, small and medium enterprises (MSME) category. Once cate- gorised as an MSME, sugarcane crushers, used to make jaggery and khandsari, will be entitled to government benefits and tax con- cessions. A pilot project to restart the lo- calised jaggery making units is being planned in the districts Muzaffarnagar, Baghpat and Shamli in western Uttar Pradesh being planned with the minister sugar mills, who have recovery from the next sugar season, of MSMEs, Kalraj Mishra. Jag- rate over 10 per cent, are finding which starts from October.The gery(gur) now is produced lo- it difficult to make ends meet," districts are also home to some of cally as a cottage industry by Arun Khandelwal, president of the biggest private sugar mills. around 25,000 small units in UP. Muzaffarnagar Gur Manufactur- t’s a felicitation for journalism with a cause, In his 26 years of Journalism he focussed on the Officials said the state govern- Before liberalisation, mills con- ers Association said. recognition for development journalism and issues concerned with people and development and ment will also explore the possi- sumed around 20-25 per cent of He said unless there is a big Ihonouring a journalist for the cause of small penned about 400 edit page articles Eenadu. bility of relaxing norms for the cane grown in western UP, technological innovation in and medium industry. Aakarapu Mallesham, Sen- Among the industry circles he is known as a setting up crushers and also lower which has now risen to about 60 crushers, it will be very difficult ior Chief Reporter of Eenadu Telugu daily was fe- journalist for their cause. That is why Telangana taxes on these. per cent, while gur units consume to make the business viable. But, licitated for his contribution in the field of Industrialists Federation also felicitated him on 2 "The idea is to provide sugar- another 30 per cent. the government seems convinced. journalism on the occasion of the Second year of June for his achievement. He was also honoured cane growers of western UP an "The proposal, though it "Our assessment shows that with Telangana Formation Day. His contribution to by social organisations on June 26 attended by alternative source of income," sounds good, is unviable because an investment of around Rs 10 journalism in general and for the good of industry Bonthu Rammohan, Mayor of Hyderabad, Srini- Minister of State for Agriculture crushers can't have a recovery lakh, a mechanised crusher can in particular is well-known. vas Goud, TRS MLA and many other leaders. Sanjeev Kumar Balyan, who is rate of more than five-six per cent provide employment to about 20 Mallesham, who hail form a small town of FSME- India congratulates Mallesham for his spearheading the proposal. He and with sugarcane prices ruling people, which can help in gener- Narsampet in Warangal district, rose to the post of achievement and hope to see many more writings said the preliminary discussion is at around Rs 280 a quintal, they ating jobs in rural areas," Balyan Senior Chief Reporter from rural news contributor. form him in support of the cause of MSME sector. won't survive when even big said.

38 I Industrial View I JULY 2016 Spinning, ferroalloy units Gujarat Ministry plans KCR announces Seven MSME App for MSMEs sectors for power subsidy growth

ontinuing on its focus towards micro, small and medium enterprises, the Cstate government has identified seven sectors for inviting more investment in MSMEs. It will be done in collaboration with the Gujarat Chamber of Commerce and o inform and encourage small entrepreneurs the Industry (GCCI). The seven identified sec- MSME Ministry has come out with a mobile tors include Forest and Environment, En- Tfriendly single user application on schemes of ergy, Food and Health, Revenue & Urban the government for micro, small and medium enter- Development, Transport, Finance and Indus- prises. try. With this application, the details about various Gujarat government also announced set- schemes and initiatives like – UAM, CLCSS, LEAN, ting up of a separate MSME cell and also QMS, CGTMS and more can be viewed through the made an allocation to the MSME as per this same page. year’s budget.Gujarat Chief Minister The link for the page is : http://msme.gov.in/sin- Anandiben Patel stated that starting from gleapps/Reg/home.aspx May, every Monday for one hour various de- MSME sector has emerged as a highly vibrant and partments and stakeholders would be dis- dynamic sector of the Indian economy over the last six cussing industrial issues to identify the decades. MSMEs not only play crucial role in provid- solution for the same in her presence. ing large employment opportunities at comparatively “The MSME units need to take advantage lower capital cost than large industries but also help in of new market opportunities that arise ur- industrialization of rural & backward areas, thereby, re- gently to spur growth. The feasibility of set- ducing regional imbalances, assuring more equitable ting up an industrial zone by foreign distribution of national income and wealth, the Min- companies and top corporate is being looked istry said in a note. into to create novel investment chances in MSMEs are complementary to large industries as an- line with Make in India,” Rohit Patel, Presi- cillary units and this sector contributes enormously to dent of GCCI said. the socio-economic development of the country.

16 I Industrial View I JULY 2016 JULY 2016I Industrial View I 37 North East Pro-MSME schemes MSMEs must to boost potential leverage the Smart Cities Mission mart Cities programme of the Central Government is being viewed as an en- Sgine for economic growth. In this huge exercise what would be the gains for the micro, APK Reddy, National President of small and medium enterprise (MSME) sectors Federation of Small and Medium is a point of interest. Enterprises (FSME), welcomed the CRISIL, a global Rating, Re- decision to offer power subsidies and RISIL, a global analytical company providing search and Advi- said, “Chief Minister Ratings, Research and Risk & Policy Advisory sory company K Chandrasekhar Rao has taken a Cservicessees growth in Micro, small and believes that the good decision which will be very medium enterprises (MSMEs) of North-East. MSMEs MSMEs offering anagements of spinning mills, ferroalloys in the states of Arunachal Pradesh, Assam, Manipur, and workers of these industries got a boon helpful to scores of industrial units in healthcare, infor- spinning and ferroalloy sectors,” he Meghalaya, Mizoram, Nagaland, and Tripura - the mation technol- Mfrom Telangana government. These two 'seven sisters' stand to benefit from central government ogy and industries are badly affected due to power crisis since said. “Rice mills, foundries, plastic initiatives to encourage entrepreneurship, innovation IT-enabled serv- past decade could not overcome the losses. industry and biscuit manufacturing and sustained development in the sector. ices, education, In what could be termed as a major reprieve to ail- units are also in the same situation Various initiatives launched by the central govern- logistics, transport ing ferroalloy units and spinning mills, the Telangana and require similar subsidies”, ment in the NE region for skill development, entrepre- government on Monday announced subsidised and urban devel- he urged. neurship development, technology and incubation, and opment-related power tariff for them for a period of one year. K venture funds for start-ups will accelerate entrepre- Chandrasekhar Rao, the Chief Minister of Telangana services such as the key decision to help textile and steel industries neurship and boost the availability of skilled workers real estate and took a decision to help textile and steel industries by and development of MSMEs in this region to make providing subsidised power. With this, Ferroalloy in- and people working in them,” the press release said. waste manage- Most of the Spinning mills across Telangana, which them competitive.MSMEs of North-East face serve ment will be gainers. dustries will get power at Rs 1.5 a unit while it is Rs problems like concentrated operations, semi-automated 2 for spinning mills in the state. will benefit from the government’s decision, are lo- In January 2016, the government named 20 cated in Mahabubnagar, Medak, Karimnagar, Nalgo- or manual technology, weak infrastructure and lack of cities - out of 98 shortlisted for the mission - This will help the interests of the managements skilled lsbour. and as well as the interests of over 40,000 people nda and Warangal districts. that would be the first to receive funds to exe- KCR asked the officials to offer these subsidies to CRISIL's analysis of over 500 MSMEs in these cute their relevant projects.Being localised and spinning mill workers and 5000 workers employed states shows they face major challenges to growth in in the ferroalloy industries across Telangana. the two industrial sectors to boost their productivity. of a relatively low value, CRISIL opines that The subsidies will initially be offered for a period of the form of lack of access to technology, concentrated MSMEs are best placed to win contracts per- While power-intensive ferroalloy industries will operations and weak infrastructure. About 47 per cent get electricity at a subsidised rate of Rs 1.5 a unit, one year and will be reviewed after one year. taining to the Smart Cities Mission, given their This move will bring a small reprieve for the in- have concentrated operations (either in product, geog- regional experience and local infrastructure. the spinning mills can use power at Rs 2 per raphy or customers), and about 30 per cent have weak unit.Chief Minister decided to offer these power sops dustrial sector as the industry bodies expressed dis- The next two years will also see the remain- pleasure over the recent hike in power tariff which infrastructure. ing 78 cities shortlisted, kicking off their proj- after discussing with Chief Secretary Dr Rajiv The units face challenges in accessing skilled labour, Sharma and Additional Principal Secretary Shan- will come in to effect from July 1. The hike in power ects after receiving funds. CRISIL therefore tariff to industrial and other segments is by an aver- as only 45 per cent of the total employees are perma- foresees MSMEs benefiting significantly if the thiKumari on 27 June, about the problems being nent. About 48 per cent of these are operating in the faced by these industries. age 7.5 per cent. Overall impact of this power tariff Smart Cities Mission is successfully imple- hike would be up to 15 per cent as the maximum de- manufacturing sector, of which 95 per cent have semi- mented over the next few years. “The government has decided to offer subsidies in automated or manual technology. power tariff as a part of its efforts to rescue industries mand (MD) charges were also enhanced, lament the that are facing crisis. The Chief Minister has taken industry bodies.

36 I Industrial View I JULY 2016 JULY 2016I Industrial View I 17 Branding T KTR’S USA TOUR Telangana is building bridges with the world. Though a just two-year old state, it is taking steps in the direction of becoming a dynamic and vibrant state in industry and IT. Two- BIBINAGAR week tour of the United States of America by the Dry Port of Telangana Minister for For a state without coastal line, the only alternative or road to sea port. Bibinagar dry port would provide left is having a dry port. Telangana is a land - locked services like handling, temporary storage, inspection Industries, Information state with different state borders, has got an oppor- and customs clearance for international freight. tunity to get a dry port at Bibinagar in Nalgonda dis- This dry port is important for telangana as this will Technology and Municipal trict. This new dry port announced by the centre in cut the transport costs, transit time and will con- March. tribute for employment generation and spur invest- Administration has opened Bibinagar was selected among the three shot listed ments in this area. A major unit like dry port will sites, one at Amangal in Mahbubnagar district and definitely create opportunities for micro, small and up new opportunities the other is Kandukur in Ranga Reddy district. Lo- medium enterprise, if the government agencies and cated at 40 kilo meters away on Warangal highway financial systems like bank support the small entre- for Telangana. this site will be an inland terminal connected by rail preneur.

18 I Industrial View I JULY 2016 JULY 2016I Industrial View I 35 Business Incubators (LBI) to train the youth to set hance productivity and efficiency in 2016. In 2013- up small businesses, which can be integrated into the 14 these figures were 120,340 and 28,861 respec- local economy to meet one's livelihood needs. We tively. The figures speak for themselves. have Technology Business Incubators (TBI) to meet the skill needs of more ambitious individuals. We re- What about training? After all, one can't go alised that if we cannot fund the innovative ideas of straight from the tool room to start his/her own young visionary minds, this exercise is futile. So we business…. have come up with ASPIRE Fund of Funds (FoF). We have started a placement service, which has Telangana The Small Industries Development Bank of India shown good results. With assistance from the World (Sidbi) manages this FoF for us. We have placed Rs Bank, we will create 15 more tool rooms worth Rs 60 crore with Sidbi and finalised how it should run. 2,200 crore. As this financial year ends, the construc- We have sanctioned 22 LBIs and two TBIs; six LBIs tion of at least nine out of 15 tool rooms will have have already started functioning. reached an advanced stage. So we should be able to serve catchment MSMEs in the next fiscal year.

Suppose, I have struggled and set up an MSME using the facilities the government has provided. But if nobody buys what I produce, I am still going to starve…. Public procurement is one area where micro and small enterprises (MSE) can find a big window to sell their products. Under the Public Procurement Order, every central public sector unit has to neces- sarily buy 20 per cent share of its procurement from MSEs; 20 per cent of this, that is four per cent of the total procurement, should be bought from Scheduled Caste/Scheduled Tribe entrepreneurs. We have started rigorous monitoring to ensure that MSMEs get their due share in public procurement. We have made it clear that buyers can relax prior turnover and experience conditions to enable MSEs to participate in public procurement tenders. The 20 per cent public procurement clause became manda- tory from April 1, 2015. I am also reviewing it at my level. I am determined to provide MSEs their due share in public procurement from central public sec- tor undertakings and other central government enti- The failure of MSMEs is usually in getting access ties. to competitive, appropriate and intelligent technol- ogy… What about non-performing assets in the MSME True, MSMEs need modern technology. We have sector? 18 state-of-the-art tool rooms across the country to We have come up with a plan to revive and reha- meet the technological needs of this sector. All our bilitate sick industries. We are working on an ambi- tool rooms are profit-making ventures. In these tool tious and visionary MSME policy, which will be rooms we have trained 180,160 pupils in entrepre- unveiled soon. neurship and assisted 36,156 units directly to en- (Courtesy: Business Standard, May 28, 2016)

34 I Industrial View I JULY 2016 JULY 2016I Industrial View I 19 t’s bygone days when we use the developed country. abad share a strong bond and the to watch only the central min- In Chicago and Indianapolis the presence of large number of NRIs Iisters signing up MOUs in the delegation met Trey Childress, is a testimony to this. It’s two years since the Narendra Modi led Central Government Indian News Reel Shown in cin- Deputy Governor of Illinois State, Digital Healthcare Company ema halls. Now in the age of glob- Dr Ausaf Sayeed, Consul General Eclat Health Solutions came for- came to power. In these two years many new schemes were alisation states are globe-trotting of India- Chicago, Mike Pence, ward to invest 15 million dollars inviting investments. It is the new Governor of Indiana State and at- in Telangana providing employ- launched and even the MSME ministry itself got a separate age of trade, commerce and indus- tending the Indianpolis-Hyder- ment opportunities to around try where initiative is the key, and abad Sister Cities Committee thousand people. Redberry Corpo- identity. In this background, Kalraj Mishra, Minister of Micro, Telangana state never lost an op- meeting apart from meeting heads ration’s Chairman Mr Deepak Small and Medium Enterprises (MSMEs) was interviewed by portunity in these two-years of ex- of several companies. The Minis- Kant, Abaris Capital Advisors istence. ter discussed the potential areas of President Mr Omer Ahmed, Gen- Aditi Phadnis of Business standard. The ministry which was K Taraka Rama Rao, accompa- collaboration between Illinois and esis Pharmaceuticals Chairman nied by Arvind Kumar, Principal Telangana and elaborated on the Monif Matouk, Safye Holdings once considered as moribund is now got off the ground feels Secretary, Industries, Commerce State industrial policy-TS-iPASS CEO Mr Afi Hasan. Several & Power, Jayesh Ranjan, Secre- and ICT & allied policies, invest- MoUs were signed. the MSME minister. Here are the excerpts of the interview. tary IT E&C Department and ment opportunities in Pharma and Indianapolis in Indiana State, many more important officials 15- IT sectors. hosted the Indianapolis-Hyder- day tour was a complete package Trey Childress expressed Illi- abad Sister Cities Committee You've spent two years in office. What have you got MSME is imperative if an entrepreneur wants to ac- of establishing relations with dif- nois State’s interest for partnership meeting where KTR addressed a to show for it? cess schemes and government benefits. We noticed ferent states, business leaders and in the field of Innovation. Dr 500-strong audience of Telangana In general, our government has done spectacularly that registration of MSMEs was a cumbersome MNCs, inviting investments and Ausaf Sayeed, the Deputy Gover- NRIs. well. Just go back a few years and you will recall all process with lots of bureaucratic hurdles. We de- studying the systems working in nor said that Chicago and Hyder- the scams - 2G spectrum, coal block allocation... Our signed a simple, elegant, user -friendly and internet- government, on the other hand, has provided clean, based registration process and named it Udyog transparent governance. Coal blocks and telecom Aadhaar Memorandum (UAM). spectrum have been allocated with complete trans- Now, one can register a unit by filling a short on- parency. Do you hear phrases like Radia tapes, de line form and get registration within 10 minutes. facto and de jure power centres, which pointed to a Registration does not entail any visit to any office. weak, motivation-less and visionless United Progres- In the past eight months, more than 700,000 MSMEs sive Alliance regime? Nobody can dispute that a have registered on this platform. regime of personal gain and loot of public resources was replaced by one run on the strength of integrity If your ministry is the second-largest provider of and values, following the 2014 general elections. jobs, how have you fared in terms of jobs creation? The Prime Minister's Employment Guarantee Pro- What have you achieved in your area of responsi- gramme (PMEGP) is our flagship scheme. It ac- bility? counts for one third of the expenditure of our This a valid question. There are around 40 million ministry. We nurture around 45,000 micro-level en- MSMEs in India employing around 100 million peo- trepreneurs around the country through this pro- ple. Our share in manufacturing output is around 45 gramme and generate employment for around per cent and in mercantile exports 40 per cent. Our 335,000 people. Through constant monitoring and share in gross domestic product is eight per cent in review, we ensured the release of Rs 1,254.79 crore manufacturing and 30 per cent in services, so the of margin money for this programme in 2015-16; it total share stands at 38 per cent. After agriculture, was just Rs 988.36 crore in 2013-14. This scheme is our sector is the largest employer of Indians. MSME a launch pad for entrepreneurs who dream big. is the future job creator and provider. Last year, we launched ASPIRE (A Scheme for In the past two years, we observed this sector Promotion of Innovation, Entrepreneurship and closely and identified interventions necessary to un- Agro-based Industry). It takes care of the skill needs leash its real potential. For starters, registration of an of different sections of society. We have Livelihood

20 I Industrial View I JULY 2016 JULY 2016I Industrial View I 33 Interactive Intelligence to ment. “This MoU will open new nologies and Entrepreneur Ex- expand in Hyderabad avenues for exchange of innova- changes and Showcases CEO of Envista Corporation tive ideas between Startups in Through this agreement, the and discussed its expansion plans Telangana and Silicon Valley. I am companies that participate in the in Hyderabad. Envista is a supply confident that Startups in both ge- Telangana T-Hub will have access chain consulting and IT services ographies would benefit im- to resources and contacts within company, basked out of Indi- mensely from this MoU” said the GO-Biz Innovation Hub (I- anapolis. During the interaction, KTR. Hubs) network which stretches Minister KTR explained that it is “The agreement with the Telan- from Redding to San Diego and the right time to expand Envista gana government provides a includes 15 distinct I-Hubs mak- Inc operations in India, owing to framework for collaboration that ing it the largest state sponsored an explosion in Indian retail mar- will help innovative Indian com- innovation network in the US. ket. panies invest in California and Likewise, this agreement opens opportunities for California com- panies to connect with the partners and companies within T-Hub net- work.

Dream Big, Dream different DreamWorks, a reputed anima- tion companywhich is looking for expanding their production facili- ties in India sought partnership with Telangana for their long term plans. DreamWorks is also look- ing at creating high-end theatre ecosystem to promote their The Industries and IT Minister movies. In this regard Dream- help innovative companies in our also met the leadership team of In- Works has asked Telangana gov- state access the Indian market”, teractive Intelligence, a global ernment to create a conducive said Governor’s Office of Busi- leader of cloud services for cus- environment. ness & Economic Development tomer engagement, communica- DreamWorks which has plans (GO-Biz) Director PanoreaAvdis. tions and collaboration.The to cater Indian market can make TheMOUconnects innovation A visionary functionaries of Interactive Intel- Hyderabad as an ideal location, as programs, helps foster economic ligence appreciated the Telangana the city has talent pool and vibrant cooperation, facilitate joint R & D Government’s approach in solving film industry.DreamWorks and in industrial research and enhance the power shortage issue in the Telangana Government also business relationships and educa- State. Interactive Intelligence agreed to collaborate to create tional opportunities. The areas in- leadership assured that they would Dreamplay, a small scale theme clude, Start-up Ecoystem, soon be expanding their opera- center, which can become a tourist MSME tions in Hyderabad. Methodology and Knowledge Ex- attraction for city of Hyderabad. changes, Renewable Energy and California signed MOU for Minister K T Rama Rao ex- related Clean Technologies, Water Joint Innovation, Exchange and tended full support and coopera- Conservation and Management, Cooperation in alternative energy, tion in their plans. The minister Health IT and Biotechnology So- environmental technology, health, described the attributes of upcom- lutions. Advanced Manufacturing, agriculture and other technology ing film city in Hyderabad which Information and Communication based industry sectors, business would be an ideal location for the policy soon Technologies, Agricultural Tech- innovation, research and develop- future production facility of

32 I Industrial View I JULY 2016 JULY 2016I Industrial View I 21 DreamWorks.Jeffrey Katzenberg, (IRDA) and State Government is ment agency.He sought more in- CEO of DreamWorkspraised the trying to bring in more and more formation about the branding ef- route newly formed Telangana is FBSI institutions to the State, best forts of IEDC and how the agency taking in the path of industrial practices of Iowa can be replicated. collaborates with Universities to growth. Carmel and Indianapolis cities foster innovation and spur eco- At Iowa, a place for modern made their mark with best prac- nomic activity in the region. The agricultural practices, food pro- tices in local governance. During minister and Steve Akard agreed to cessing and growing insurance sec- the interaction with KT Rama Rao continue and strengthen the sister tor, the minister met several at Carmel City Hall, Mayor Mr. city relationship that Hyderabad important players from the agricul- James Brainard explained how and Indianapolis currently share. ture and food processing sectors they carry out the functions of Discussions with Nikesh Arora, like Mr Kenneth M. Quinn, Presi- drinking water supply, electricity CEO of Soft Bank were fruitful dent of World Food Prize Founda- distribution, public transport and and the chances of flow of invest- tion, Terry Branstard, Governor, sewage management. The two also ments to the state brightened, said Iowa State and others. KT Rama discussed the public private part- the minister. Linkedin also has hammam, a district with Rao wanted to learn the agricul- nership and other models to raise shown interest in associating with rich natural and human re- tural practices, technological inter- funds for fuelling the infrastructure telangana. Minister Haffman in- sources, entrepreneur ventions Iowa State vited KTR for the K community with enthusiasm is still has been implement- Startup festival in Sil- waiting for the direction in the path ing and adapt them icon Valley scheduled of industrial development. FSME for Telangana.Iowa in the coming Octo- has a clear vision and route map doesn’t use chemicals ber. ITC-BPL Cloning plants and Go- struction industry. for the industrialisation of this dis- in farming, instead The delegation met drej Palm oil plants grown in the Above three clusters need land trict. Telangana government’s pro- focuses on farm with the representa- district gained popularity in the for establishing and running these industry policies combined with mechanisation. tives of IT, Bio-tech- country. According to FSME’s es- units. Apart from the three clusters the strengths and requirements of The Minister met nology agri & Food- timate about 600 to 800 crore proposed, entrepreneurs are wait- the district should be assessed to representatives of processing, clean- saplings are produced here. In this ing for land allocation for food tap the resources to the fullest po- Agri-tech Company tech yielded good re- background, a green cluster should processing unit at Buggapadu and tential. DuPont and sought sults. The delegation be established to grow ornamental, another agri-based cluster near Establishing sector based indus- cooperation in food met representatives of medical and different varieties of Khammam town. Thousands of trial clusters in the will make the processing sector and N Vista, RR Donnel- plants which can provide employ- students are being produced every plans sync with the resources modernising agriculture.DuPont projects. ley, 3M, Slum Burge, Net App, ment for at least 50,000 people in year in the district. Tapping all available. FSME proposes to es- team agreed to train Telangana In the discussions between Sales Force, and IT Hub. They also the district. these resources can build a model tablish Sand Cluster, Green Cluster farmers in the state-of-the-art tech- KTR and Joe Hogsett, Mayor of visited bio-technology companies Granite waste reprocessing can Industial district in Khammam. and Granite cluster. Sand Cluster is nologies and best practices used in Indianapolis the discussion re- Genesis Pharmaceuticals, Boston be the nature of the Granite Clus- Establishing a Skill Training Cen- the sand processing and grading agriculture, which shall help in re- volved around city planning and Scientific, Medtronics and agri- ter. The district is known for world tre is the need of the hour to em- industries cluster, which depends alising the dream of the Chief Min- administration. The Bus Rapid MNCs like Cargill and Du Pont famous Z-Block granite. Entrepre- power the students and youth of on the Godavari river eco-system ister K Chandrasekhar Rao to Transit System built to support the and studied the how they work. neurs, bracing all odds have estab- the district by imparting skills to which has a great presence in the make Telangana the seed bowl of expanding city and growing popu- Over all, the tour could succeed lished about 1300 granite based them. district. Different sizes of sand and India. A round table meeting with lation was also discussed. in making the American investors industries to provide employment FSME also urges the govern- gravel can be produced or graded leaders of Agriculture & Food Pro- and companies believe that Telan- to 30,000 people. The wastage pro- ment to support the rice mills then traded through Telangana cessing sector from Iowa Statewas gana is fast turning into investors’ duced by these industries can be which are reeling under severe cri- Minister visits Indiana State Mining Development Corpo- organised. favourite destination. With TRS thoroughly utilised if there is en- sis. Entrepreneurs under the lead- Economic Development ration (TSMDC) bringing regu- Here he sought to know the best government's unique Single Win- couragement to establish granite ership of FSME-India are larised income to the state. practices in the insurance sector for Corporation dow Industrial Policy in the state, waste re-processing units. With the promising a industrially vibrant The minister met the officials of Green Cluster shall stand for a possible replication back home. KTR will be holding talks with the help of the Hydraulic Stone-cut- Khammam to be a jewel in Ban- Indiana Economic Development germination and growing of Spe- As Hyderabad is home to Insur- American industrialists on estab- ting machine, a German technol- garu Telangana, if their proposals Corporation (IEDC) t State of In- cial Plants. Already Khammam is ance Regulatory Authority of India lishing industries and investments. ogy granite based materials can be for establishing clusters become a diana’s lead economic develop- a biggest producer and provider of produced which is used in the con- reality. plants says the surveys and reports.

22 I Industrial View I JULY 2016 JULY 2016I Industrial View I 31 Vision for Khammam FSME proposes cluster Saving the existing ones based development

ne immediate step by the government can give Orespite to the existing in- Review meeng of Mining department dustries in the crisis. FSME urges the Minister of Industries to- hile the new TS-ipass created a new · Facilitate convening a special hope for ease of doing business, one SLBC meeting for Industry in Wthing was haunting in the industries circle. That is while the new policy makes busi- which the requests from the incipi- ness easier for new units but what about the ex- ent sick units to lift the court cases isting units. Bad governance of the past which are the result of the power governments in the undivided state pushed the in- crisis in the previous rule, looking dustry into crisis. into the demand of incentives can K Taraka Rama Rao immediately assuming the be done. FSME feels that though charge of Industries Ministry dispelled the appre- hension of industry circles and emphatically de- there are efforts from Industries de- clared, “The government will not neglect the partment and agencies, the same existing industries” and conveyed the resolve of concern is not seen with the banks. the state government in the overall development of industry. · Organise a Round Table Confer- Within days, he conducted the review of the de- ence on the issues of MSME sector partment and started working in this direction. He reviewed the functioning of the Mining depart- as early as possible to save the ex- ment and directed the bureaucracy to formulate isting industries. The Round Table and implement people-friendly and eco-friendly convened by the Chief Minister policies. He reviewed the State's readiness for the with the Industry Associations 'Ease of Doing Business' ranking index, with sen- yielded results which can be seen ior officers. now.

30 I Industrial View I JULY 2016 JULY 2016I Industrial View I 23 Looking East APSFC to extend for investments loans to MSMEs After a successful tour of USA now it’s look east for investments for Telangana. K T Rama Rao, Minister for Information Technology, Industries, and MA & UD, toured Singapore and Malaysia for three days staring from June 29, to attract the investments to the state.

mall entrepreneurs of “nearly 70 per cent of the amount “We borrow from banks and lend Andhra Pradesh get good will be sanctioned and dis- it to the units. We do not have re- Snews from the Andhra bursed.” Maximum number of finance facility,” he said. Pradesh State Financial Corpora- proposals (nine) were in the food In 2015-16 financial year, tion (APSFC). It is focusing on processing and agri-business sec- APSFC had disbursed Rs. 450 extending loans to MSMEs and tor, amounting to Rs. 50 crore , crore and the target for this year also cut interest rates recently. followed by software units is Rs. 750 crore. Though this is WVR Murthy the Managing Di- (eight) amounting to more than ambitious the APSFC is confi- rector of APSFC said that apart Rs. 40 crore. dent of achieving it, says the from MSMEs, service sector, Murthyalso informed that the Managing Director. He also in- commercial and residential proj- APSFC had recently cut interest formed that the APSFC was rated ects will also get loans. rates by 50 points and the mini- to be the best in the country. After He said that 53 proposals mum lending rate at present was the bifurcation the APSFC had worth Rs. 229 crore had been re- 12.5 per cent, which is higher by set up an office in Kakinada and ceived from entrepreneurs and one per cent or so more than that one more soon in Chittoor. others in the four districts and offered by commercial banks.

24 I Industrial View I JULY 2016 JULY 2016I Industrial View I 29 AP credit plan fixed at Rs 1.65 lakh crore An increase of 31% over the credit

targets of At Singapore, Minister discussed asked them to do a study on the to invest in infrastructure projects with the representatives of A star roads, electricity, drinking water like managing highways, urban agency (Agency for Science, and other infrastructure facilities mass transit, mass housing and previous year Technology and Research), a lead- in Hyderabad for which Cheong other projects in Telangana. ing science and technology- responded positively and assured KTR also met Malaysian Prime company which works as a bridge that a team would be sent to Hy- Minister's advisor and head of the between the academia and indus- derabad shortly. PEMANDU (Performance Man- try in the field of innovation. The At Taus industrial park the del- agement and Delivery Unit) Dato company representatives ex- egation visited the Biopolis Park 'Sri Idris Jala. The Economic Andhra Pradesh state level bankers committee pressed their willingness to work and clean tech park and enquired Transformation Program of this (SLBC) has approved the state credit plan with a with the RICH (Research and in- about the facilities in those parks. institution is an initiative by the total outlay of Rs 1,65,538 crore for FY17, an in- novation circle of Hyderabad) of At a business session organized Malaysian government to turn crease of 31% over the credit targets fixed for the the Telangana government. Both by the CII and Indian High Com- Malaysia into a high income econ- previous year.In 2015-16 the banks had disbursed RICH and A STAR have agreed to mission held at the High Commis- omy by the year of 2020. Rs 1,44,423 crore loans in the state for both prior- a bilateral agreement through sioner office, the Minister met “With eight percent of the ity and non-priority sectors while surpassing the which both will cooperate in the heads of 18 companies and Malaysian population consisting target of Rs 1,25,748 crore. field of innovation, incubation, re- through a power point presenta- of people of Indian origin, synergy In the current financial year the bankers com- search and commerce. Student ex- tion explained to them about the is possible with Malaysia”, KTR mittee has fixed a target of Rs 1,25,538 crore for change programme will be Industrial and IT policies of the said. He said the state has a huge the priority sector advances and Rs 40,000 crore organized as part of this agree- state. land bank for industrial use and it for the non-priority sector. Agriculture gets a ment. The Minister explained has set aside 2.5 lakh acres of land major share of Rs 83,000 crore followed by Rs about the research and small and for setting up new industrial units. 25,000 crore credit target for the MSME sector. Malaysia ties-up medium industries in the state. He sought the cooperation of The banks have raised the housing sector credit KTRama Rao met Malaysian The Minister met TeoEng Malaysia in setting up industrial target by 132% to Rs 12,000 crore from Rs 5,163 Prime Minister Dato' Sri Haji Mo- Cheong, CEO of SurbanaJurong parks, education, innovation, food crore in the previous year in anticipation of a good hammad Najib bin Tun Haji Abdul which looks after the housing pro- processing and services sectors. demand in the current year. The loan disburse- Razak and invited him to visit gramme and infrastructure in Sin- Arvind Kumar,Principal Secre- ments in the housing sector were only Rs 3,060 Telangana. gapore. KTR briefed Cheong tary, Industries and Commerce crore in the previous year.However, the loan dis- The Government of Malaysia's about the housing programme and Energy, Manick Raj, Com- bursals to the MSME sector in FY16 was far Construction Industry Develop- being taken up in the state and re- missioner Industries, Narasimha higher than the targets. The banks had lent Rs ment board (CIDB) has shown in- quested him to take up a multi-sto- Reddy, MD, TSIIC and other offi- 22,262 crore to SME sector compared to the credit terest to invest Rs 10,000 Crores ried building project in cials accompanied the minister in target of Rs 16,960 crore. in infrastructure projects of Telan- Hyderabad, sought partnership in gana state. The CIDB is interested this tour. the pharma city project. KTR

28 I Industrial View I JULY 2016 JULY 2016I Industrial View I 25 Revive sick units: FSME, COSMI appeals Ease of doing business @ Telangana ase of doing business is a magnet which attracts in- Evestors. Telangana state though a newly carved one, is ickness is an epidemic in the MSME sector in FSME & COSMI submied the same making all efforts to make the en- the last decade. Thousands of units became sick memorandum to Union Minister and vironment in the state, an entre- bringing the entrepreneurs and workers into S BJP leader Bandaru Daatreya also. preneur-friendly one.The number streets. Power crisis during 2009-2014 was the main of documents entrepreneurs need reason for the sickness of many sectors of MSME. Both, Daatreya and Laxman promised to submit while seeking approvals Though many announcements and policies were made the industry associaon leaders to be for projects has been reduced from to bring sick units out of red, they proved to be an on the side of the demands of MSME over 100 to a mere 12 in Telan- empty talk. sector. They promised to facilitate am gana.The State’s Commissioner of In this scenario, organisations representing micro, Industries, K Manicka Raj, high- small and medium sectors are demanding the centre meeng with the central leaders to lighted this change, made to make and states to use all means to come out of this situa- pursue the issue of revival of sick units. the process simpler, at a confer- tion. FSME- India National President APK Reddy and Not just facilitaon but also we will ence on ‘Ease of doing business in COSMI President M Rajmahender Reddy met K Lax- take up the issue with the central Telangana’ in Hyderabad on 22 man, floor leader of BJP in Telangana assembly and April. represented the issue. government, said the BJP leaders. “The thrust was not only on fa- The industry association leaders asked Dr K Lax- cilitating the process of setting up man MLA and the president of state BJP unit to influ- an enterprise, but also on conduct- ence the Central Government’s to intervene for the arethe important sectors in MSME which were af- ing business” said theCommis- which ease of doing business in houses in the country want to do Revival and Rehabilitation of incipient Sick Units in fected because of power crisis during 2009-14. APK sioner of Industries. He cited Telangana was better.Stating that business the noble way. But they MSME Sector. They submitted a memorandum and Reddy handed over to Dr K Laxman, a copy of the mobile phone maker Micromax’s the State was a forerunner, he said were “compelled to take recourse requested him to use his good offices with the Central memorandumsubmitted earlier by FSME India to plant near Hyderabad, a facility Finance Minister Etala Rajen- to some kind of corruption result- Government for Revival and Rehabilitation of incipi- Narendhra Modi, Prime Minister of India recommend- that went into production mode der said TS-iPASS comprises ing from too much of regulations ent Sick Units in MSME Sector. ing for creation of a Rs. 2,000 Crore Corpus Fund for seven months after the State gov- clearances from 22 and laws that have lost relevance”, Due to the Power Crisis during 2009-14, the small Revival and Rehabilitation of incipient Sick Units in ernment cleared the project. The departments.The State govern- he said. enterprises could not operate their factories to full ca- MSME Sector. TS-iPASS scheme and the vision ment was coming with a package “The State government has pacity, resulting in loss of Sales Revenue, due to the FSME-India appealed the Central Government to of the government brought down of incentives for industries, de- stood up to the expectations of the factors beyond their control. Banks have declared the intervene and instruct the banks to withdraw the Court the documents to be submitted by vised on its study of what was industry”, said Anil Reddy, presi- units as Non-Performing Assets and they are facing cases initiated against the small Entrepreneurs, and promoters from 104 to mere 12. being offered in other States. dent of FTAPCCI. He also said SARFAESI Act proceedings from the banks for the take up measures for Revival & Rehabilitation of the Manicka Raj suggested to in- Arun Kumar Jagatramka, that there is a need for a separate recovery of loans. Small Enterprises in granite indus- Sick Units. They also requested theCentral Govern- dustry body Assocham, to assess Chairman of Assocham National funding mechanism for micro, try, in Khammam district, Rice Mills, jute industry, ment to increase the Corpus Fund from Rs. 100 Cr to the perception of industry, rank Council on Ease of Doing Busi- small and medium enterprises in foundries & ferro alloys and handlooms & textiles 2,000 Crores for Revival of the Sick Industries. the States and identify sectors in ness, said that majority of business the state.

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