Excerpts:

You seem to have built up good equity with the business community both at home and abroad. The question is whether this is translating into real investments for the state.

We have to do that. The country's present mindset has been there for almost the past 50 years. They think that that is the right direction. That has to change if this is to be possible. But at the same time, many entreprenuers have become multi-millionaires within 20 years. Now if individuals and companies can do this, why shouldn't the government not be able to doit? I am travelling in that direction. I am confident I can do it.

How much of government is actually business. Can it be run like a corporte entity?

Governments must always be innovative and creative. In my dictionary, there is nothing like `cannot do'. I am asking my officials, too, to do the same thing. I am sending them abroad so that they pick up new skills. They are also highly motivated.

Where foreign investments are concerned, it is not just your government which is involved. The centre also has an equal role to play. Do you see this kind of change in the centre's way of functioning?

The centre has to change, the state has to change; as a matter of fact, governance has to change. As of today we are all involved in routine and ad hoc decisions, creating much confusion. Now we have to change; only then will the country survive. The centre has a role and the state has its own role. The centre can create a good policy environment; then the states will follow suit.

But thequestion is whether the centre is creating that policy environment. My reference is to the anti-MNC lobby within the government.

There are problems, yes, but they have to realise that there is no other way out. I am confident they will. I have taken it up with Yashwant Sinha and Vajapyee several times, and I will take it up again.

My reference is to the Rothmans' case. What is the position?

The Rothmans' case cannot be compared with other investments as there is a social angle to it. So I do not want to comment further (on that), but, yes, in general there are problems.

You have embarked on an ambitious reform programme which entails a huge amount of external borrowing. Is the state economy geared to bear the debt burden?

Economic restructuring is just one part of the reform. But today I am doing so many other things that will pay back in due course. I am investing on infrastructure and other things, which will get more money to repay.

But there is a gestation period. Theother clock will start ticking immediately.

We will have to wait.

You have been in power for more than three years now. What are your three major achievements?

My main aim is to eradicate poverty. I want to create more rural employment. I am going in for mega projects, industries, tourism and information technology as a tool, where I will create assets for future rural employment. Then I would like to bring about a new work culture. Rural employment, people participation in development activities, irrigation and overall development of the state. Simultaneously, I am concentrating on information technology, which is incidental and only a tool for development.

You may have to take some tough decisions on the power front. For instance, you may have to hike tariffs. Are you geared for it?

At the end of the day reforms are necessary. Wherever it is possible to privatise I am going ahead. Where government is needed I will be there in a big way. In the end, reforms will create moreemployment. I have spread that message for three years now. In another year's time, it will show results. As for the power reforms, there are small problems. To resolve this, we have called a meeting of the co-ordination committee, and we are going ahead with reforms.

Including a tariff increase?

Reforms are meant to bring about efficiency, and I want to improve efficiency. Power reforms are different from tariff increases. I want to segregate the two.

What was the response to your US visit? Have you been able to size up the quantum of investments expected?

The response was very good, but we cannot always quantify the results; it is continuous process.

You have been able to attract quite a of bit of interest in the IT sector. But the manufacturing sector in the state has lagged behind. How do you explain this?

Nowhere is the manufacturing sector growing in the world; more so in India. The only growth sectors are IT and services. Any new investment in the country is coming toAndhra.

But what steps have you taken to give the manufacturing sector a fillip?

While the SSI policy has just been released, I am going in a big way for roping in large corporates for rural uplift and tying up with programmes such as DWACRA, CMEY and rural artisans' programmes, where I am spending close to Rs 600 crore annually. Here I want to integrate with the industry, and I want to attract investments where marketing, banking and quality upgradation can be done by corporates. They can brand the products and even export them. I am holding workshops for this soon, and the industry has responded well.

Making Hyderabad the financial capital of the country is your professed dream. How do you propose to do it? Bombay is considered the Mecca of financial services. Can you compete with it?

Bombay is already overcrowded, and people want to move out. Hyderabad is centrally located and IT is well developed here.

I have already set the process in motion and have held discussions with severalcompanies which I do not want to name now. Let me tell you that financial and insurance services will come to Hyderabad. A lot of companies have shown interest.

How is your party preparing itself for the polls next year?

I am activating the party. People will believe only in performance, and I feel they will understand what I have done is good for them.