Hyderabad is investor-friendly, reiterates industry

TIMES NEWS NETWORK

Hyderabad: Industrialists and business groups on Friday hailed the recent report which described Hyderabad as the second best destination for investors in the country.
A recent report released by the International Finance Corporation-World Bank titled ‘Doing Business in India 2009’ has described the ‘City of Pearls’ and IT hub as the second most preferred business destination in India ahead of Mumbai, Delhi, Chennai, Bengaluru, Kolkata and Kochi. Apparently Hyderabad scores high on construction permits and closing a deal. Incidentally, the report names Ludhiana in Punjab as the most preferred destination.
In a statement on Friday, the chief minister’s office said: “The main finding of the study is that doing business is easier in Ludhiana and Hyderabad while it is more difficult to start and operate a business in Kochi and Kolkata. If other states also initiate reforms to cut the time of issuing construction permits to that of Hyderabad, which is
80 days, it would put India ahead of Germany.’’
The parameters on the basis of which the IFC-WB report was prepared included starting a business, dealing with construction permits, registering property, paying taxes, enforcing contracts, trading across borders and the ease of closing business.
The industry seconds the findings of the report. “We are happy with the legal framework in Hyderabad. Thanks to early privatisation, the bureaucracy in the state became proactive almost a decade ago. Other factors like low cost of living, ready availability of apartments and residential complexes as well as abundant manpower made the city a favourite business destination,” said Y Harishchandra Prasad, chairman of Confederation of Indian Industries, Andhra Pradesh.
Prasad thinks the state has done well in wooing investments. “For example, the state SEZ act was not passed due to some labour issues raised by the Centre. However, after we represented to them, the state pro actively issued GOs. In all, the state sorted out about 10 to 115 issues
that we had by issuing GOs. The APIIC too voluntarily laid roads in the financial district, an impossible feat for the private sector ,” he said.
Agreeing with the CII regional chairman is K Harishchandra Prasad, president of the Andhra Pradesh Chamber of Commerce and Industries (APCCI). “It is a welcome sign. While some may say that 80 days is too long for construction permits, when compared to developed countries, the progress made by Hyderabad is a step in the right direction. If bureaucratic and political reforms are speeded up and procedures set in place, the city can become even more attractive for investors,” the FAPCCI president said.
Buoyed by the report, chief minister Y S Rajasekhara Reddy now wants to displace Gujarat as the number one industrially advanced state in the country.
Hyderabad and AP scored because of a pro-active government, lowest power tariff, good climate, political stability and overall peace to help attract huge investments, state government officials claimed.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: