Kakinada: The violent incident at Tuni in East Godavari district during Kapu Aikhya Garjana may have an adverse impact on investments flowing into the state, after the bifurcation, trade and industry circles fear.
Chief Minister N. Chandrababu Naidu has been globe-hopping to attract investments. The CII partner summit that held in Visakhapatnam in January saw MoUs worth over Rs 4 lakh crore being signed by the state government with various private companies for setting up projects.
“Such violent incidents and movements may affect investments in the industry sector and the political unrest in the state would also affect inflow of investments. If investments inflows dip, industrialists will not come forward to set up industries, leading to huge losses to the state, both in terms of development and job creation,” said CII AP Chapter vice president G. Samabasiva Rao.
The violence at Tuni may incur a 10 per cent loss, but if such a scenario is repeated, the losses would be immence, Mr Sambasiva Rao said.
He cited the example of attack on Regency Ceramics at Yanam, where the company managing director was killed and the company was burnt. Now, there is no industrial growth in Yanam. Such violent incidents have applied brakes to the industrial growth and nobody will be willing to invest in such conditions, he said.
Cocanada Chamber of Commerce Chairman Dantu Surya Rao said that “peaceful working environment” is necessary for industrialists to set up their units and trade to flourish.
“Industries can function only in a friendly atmosphere and cooperation of the locals. If the unrest prevails, it is difficult to attract investments from other states or countries,” Mr Surya Rao said.
However, CII executive director Potluri Bhaskara Rao said that will be little impact on industries coming up in the state due to the Tuni incident.
“Continuous unrest like the Telangana movement would definitely affect investments and industrial growth,” he said.
Sources said that the violence may have an impact on the Kakinada Special
Economic Zone prospects as the incident occurred adjacent to KSEZ area.
