SMEs, power crisis top on new Fapcci chief’s agenda

Hyderabad: Shiv Kumar Rungta, who recently assumed charge as the President of Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci) for 2014-15, is looking to solve the problems of Small and Medium Enterprises (SMEs) located across Andhra Pradesh and Telangana. Besides, he will also focus on the power shortages that have been crippling the industries in both the state.

“SMEs in both states are facing innumerable problems including financial problems, power cuts as well as NPAs. As this segment is the backbone of the economy in terms of revenue as well as employment generation, my first priority as Fapcci president is to work towards solving problems of the existing SMEs in addition to encouraging new industrial units in SME sector,” Rungta told The Hans India. According to him, both the governments in AP and Telangana should announce progressive industrial policies with the main objective of encouraging SMEs. “We need exclusive industrial parks for SME. Such a need is more acute in residuary Andhra Pradesh as promoters of SMEs can’t afford to shell out huge amounts for land. That’s where industrial parks with adequate infrastructure will play critical role. Land should be allocated to SMEs at affordable price and Fapcci will co-ordinate with the respective governments on this crucial issue,” he said.

Pointing out that the power crisis had crippled the industrial sector in the recent past; he said governments should buy power from elsewhere to save industrial units from power shortages. “We know it is not easy to increase our generation capacity overnight, but government, while formulating long term power generation strategies, should procure power from outside to tide over the crisis in short term. They have to purchase power from other states in advance. Otherwise, there will be grid problem also if other states book transmission lines ahead of us,” he explained.

He also urged the governments to focus on solar power. “Unlike other power plants which have long gestation periods, solar plants can be set up in six months. People are ready to set up 2000 MW solar plants if governments change existing policies and make them more investor-friendly,” he said.

The other important issue for the industry body is to attract foreign direct investment (FDI) into both the states. “We are expecting delegations from Australia, the US and other countries. In those interactions, our main focus will be on bringing FDI here,” he said.

Rungta, Managing Director of city-based Rungta Glasstech and management graduate from IIM-Ahmadabad, maintained that Fapcci would be active in both AP and Telangana states now. “Fapcci is a 97-year-old organization and it has global recognition. We will use our expertise and experience for the industrial development in both the states. Besides, we will co-ordinate with other industry bodies as everyone’s goal is to develop industrial sector,” he explained.