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COVER STORY:
NARA CHANDRABABU NAIDU
"We Believe in Doing"He is a CEO in the garb of a policy-maker. His organisation: Andhra
Pradesh. His mission: eradicating poverty. BT's Dilip Maitra caught up with the
indefatigable Andhra Pradesh Chief Minister, Nara Chandrababu Naidu, 48, to understand his
vision for Hyderabad. Excerpts from a late-night chat in a car, punctuated by the blaring
sirens outside and the restlessness of the policemen inside:
 Mr Naidu, Hyderabad has had a meteoric rise in the 1998 BT
Ä Gallup MBA survey of the Best Cities For Business: from No. 12 in 1996 to No. 3 this
year. What are the factors behind this rise?
The process of creating an investor-friendly state started nearly 3 years ago,
when Andhra Pradesh was nearly bankrupt. I decided to first focus on the infotech industry
to attract investments. After all, infotech is a fast-growth industry, which can attract
big global labels. That is what happened. Our policies attracted Microsoft, IBM, Oracle
Another major change that I brought about was in Andhra Pradesh's industrial policy. I
travelled to Maharashtra, Gujarat, Karnataka, and Tamil Nadu, and examined their policies
and business environment closely.
Now, I regularly ask industrialists about their problems
and the modifications that they desire in the government's rules and regulations. On the
8th of every month, I meet the officials of the industry and the small-scale ministries to
track the progress of all the projects they oversee. If a project has not been cleared, I
am keen on knowing why. I check all kinds of clearances--be it power, pollution-control,
or land--to find out whether there is any cause for delay. I go to the root of the
problem, and issue instructions to sort it out. All this has created a positive impression
in the mind of the investor. The message that I try to convey is simple: this government
does not believe in talking. It believes in doing things.
Are the changes real or just perceptual? Do you
think business' expectations have risen too high?
We have a tremendous responsibility to deliver since we have promised so many things. It
is not easy to fulfil all the expectations, but we are trying our best. We also tell
people that we are new to our job. We also have lots of limitations. Although the state's
finances are better now, they still aren't fully satisfactory. Business understands that
we cannot deliver a miracle. They also know that our intentions are honest, and that we
are trying hard. I want the state machinery to be run professionally as an efficient
organisation rather than as a bureaucracy entangled in red tape.
Our survey shows marked preference by CEOs for
cities that offer a good lifestyle. How has Hyderabad taken care of this?
Hyderabad is, probably, the most liveable city in India. We are widening the roads, and
building flyovers to reduce traffic-congestion. The city's environment is relatively clean
as there are no polluting industries. In fact, with the setting up of a large number of
hospitals in the recent past, Hyderabad is gradually emerging as South India's medical
capital. Hyderabad has good schools as well. It will be the location for the Indian School
of Business, which is billed as the biggest B-school in the country. We already have the
School for Information Technology, the only of its kind in India. Our aim is to provide a
clean and green atmosphere to the people of Hyderabad so that living becomes a pleasure
here.
You have attempted to computerise the city and the
state administration. Yet, investors and businessmen find offices in Tamil Nadu and
Karnataka more accessible. Why have you not been able to make your bureaucrats more
business-friendly?
I agree that I haven't been able to win over my all my officials. But you will agree too
that we have had several disruptions in governance: 2 Assembly elections and one
Parliamentary election. Elections strain the administration We have had droughts and
cyclones. I am not trying to provide excuses, but such emergencies affect the smooth
functioning of the government. Then, you have to deal with a mindset built up over the
last 50 years; it is difficult to change it. I am trying to change it, and I believe I
have achieved some success. But we still have a long way to go
You have said that Andhra Pradesh is, financially,
in a better position than before. Do your lenders and investors subscribe to that view?
Yes, surely. The Credit Rating Information Services of India has recently upgraded Andhra
Pradesh's rating from AÄ to A. If you look at the responses to the various bonds floated
by state government agencies, you will see a distinct improvement in fund-mobilisation. In
August, 1997, the Andhra Pradesh Water Resource Development Corporation raised Rs 300
crore against a target of Rs 100 crore. In August, 1998, the State Electricity Board
raised Rs 600 crore against a target of Rs 100 crore. Recently, the Industrial Credit
& Investment Corporation of India floated Safety Bonds of Rs 400 crore with an option
to invest money in Andhra Pradesh. This is the first time that such an option was offered
in the country.
Have you made any progress in cutting down
procedural delays?
We are committed to providing a responsive administration. I have been propagating the
idea of a smart government, where smart stands for Simple, Moral, Accountable, Responsive,
and Transparent. To do away with red tape, we have set up the State Investment Promotion
Board. This is not hype; it is real. The average time taken by the State Electricity Board
to release power to an industrial unit is 16 days today against 59 days in 1995. The
Pollution Control Board clears applications in 40 days now against 143 days in 1995. And,
the Factories Department clears a proposal in just 11 days compared to 21 days 3 years
ago.
Change is presumed to be Naidu-driven. What happens
if your party does not continue to be in power, or if you do not remain as the chief
minister after the 1999 Assembly elections?
If we achieve tangible results, the people will vote us back to power. But even if I do
not come back, the (reforms) thrust will continue. That is why I am trying to change the
mindset of the people who matter. By using infotech, I am trying to institutionalise
procedures. I am setting up transparent systems, and trying to reduce the role of
policy-makers in the decision-making process. Once you set up a system with well-defined
parameters, there is no reason why others cannot follow it too. If you do things which are
good for the state, and once people know that clearances take a certain amount of days,
they are going to demand that. And no government can put down a demand that is just. This
is what a transparent system does
All your development is directed at the infotech
industry. Aren't you ignoring other industries?
I have emphasised infotech because it is the fastest-growing industry in the world.
Because of its software talent, India has the potential to capture the global market. So,
why shouldn't I capitalise on this opportunity? Andhra Pradesh has also employed infotech
for better governance, which will bring in major changes in the lives of the common people
We are trying to provide single-network services in areas like transport, employment, and
public utilities. These value-added services will be available across the state in a year
from now. Simultaneously, we are trying to develop agro-based industries--like tobacco,
rice, oilseeds, sugarcane, and cotton--and the core sectors, like petrochemicals and steel
Mr Naidu, thank you.
Thank you too, for taking so much interest in our state. |
