The Andhra Pradesh Government should fight in right earnest for the promised special category status, and the not merely be content with the special package, as only the former will stimulate industrial growth in the State, according to B.V Rama Rao, the president of the Federation of Andhra Pradesh Industry (FAPI).

In a press release issued here on Wednesday, he said it was most unfortunate that the Chief Minister and other ministers were making misleading statements that the special package would in fact be more beneficial to the State than the special category status. "Only the special category status, with industrial incentives, can attract large-scale investment into the State and the two CII partnership summits conducted by the State Government here for the past two years are of no avail," he said and urged the Government to work in that direction.

Power tariff hike : He said the proposed power tariff hike for the industrial consumers would spell ruin to the industry, especially small-scale units, and the State Government should give up the idea. It would be ideal, he said, if there were uniform power tariff for all industrial units throughout the country.

Rama Rao said there were arrears of Rs 500 crores to be paid by the State Government to the industrial units in the form of incentives and subsidies and the Government should take urgent steps to clear them.

He said the small-scale units in the State in particular were going through a huge crisis, especially after demonetisation, and the Government should go their rescue. "The Government should focus as much on saving the existing units as on attracting new investment into the State. Jute units, paper recycling industries and other small units are going through a terrible crisis," he added.

sarma.rs@thehindu.co.in