The AP government’s policy on 75 per cent quota for locals has dealt a serious blow to the major industries in the state. They are unhappy with the rule that even the existing companies have to implement the quota immediately. This is forcing the big companies to consider shifting their industries out of Andhra.

These companies’ managements have already started contacting Tamil Nadu government with their relocation proposals. TN senior officials are busy formulating strategies to quickly encash the opportunity. Tamil Nadu became the best destination for these companies because of the greater transparency and better pro-industry atmosphere.

The TN industry associations are overjoyed at the new trend. S. Chandramohan, chairman of the TN State council of the Confederation of Indian Industry (CII), says that these industries opted out of TN because of some incentives but now they are regretting it very badly. Some power generation companies are also in the list of those wanting to shift out of Andhra sooner than later. Industrialists are considering AP as a bad choice as change in governments is triggering changes in industrial policies as well.