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Business Companies 06 Jun 2020 Andhra red-flags Gra ...

Andhra red-flags Grasim's caustic soda unit in East Godavari

Published Jun 6, 2020, 1:03 pm IST
Updated Jun 6, 2020, 1:03 pm IST
Chief minister Jagan Mohan Reddy says he opposed the project while in the opposition too
Grasim was scouting to set up a caustic soda manufacturing unit in East Godavari district.
 Grasim was scouting to set up a caustic soda manufacturing unit in East Godavari district.

Vijayawada: Andhra Pradesh chief minister Y S Jagan Mohan Reddy has red-flagged Grasim Industries' proposed caustic soda manufacturing facility near Balabhadrapuram in East Godavari district.

The chief minister said he had extended support to the people against the project while he was in the opposition and the project was then being promoted by KPR Industries.


“Just because Grasim took over KPR, what credibility will we have if we clear it now,” he pointed out.

To a tyre industry proposal too the chief minister said the environmental issues should be considered.

The chief minister also deferred the clearing of 'tailor-made' incentives of Rs 300 crore recommended by the State Industrial Promotion Committee over and above the incentives extended under the 2015-2020 policy.

Jagan Mohan Reddy referred to the recent LG Polymers gas leak in Visakhapatnam and said no one had a clue how styrene would react in certain conditions and the damage it could lead to. He wanted officials to identify clusters and allow industries there depending on the category. He wanted to discourage stand alone proposals wherein the industry acquires land at a place of its choice and then comes to the government for clearances and creation of infrastrcuture.

Suggesting a new process, the chief minister said any application for permitting a new industry should first be vetted by the Pollution Control Board which should tie up with international agencies having domain expertise. Once the PCB clears the proposal, the chief secretary-headed investment promotion committee should hold talks with the promoters and explain the industrial policy.

Depending on the investment ability and credibility of the promoters, the proposal should be referred to the chief minister-headed SIPB for final nod. All the clearances would be issued under the single window system and government would continue to hand hold the promoter on long term basis, he said.