Nellore, Jan. 20: The ongoing agitation for unified state has started showing its impact on the industrial development in SPSR Nellore district.

The Apache Footwear Company, which was planning to establish few more units and increase the intake in its existing facility at Mambattu, decided to put off the expansion.

The bandhs and the labour refusal to work on holidays to compensate for the production shortfall led the organisation to differ its plans.

More than anything the demonstration in front of the factory demanding payment for strike days and damage caused to the glass panels by workers had hurt the feelings of the management, according to an insider. Succumbing to pressure from the workers, they have agreed to reimburse salary for the strike days without replacement of working days.

However, the chief executive officer of Apache, Mr Johnson, made it clear that they are reconsidering their plans to expand their operations in the district during a recent visit to Tada.

He alleged that the incidents in their factory have led two Taiwan-based industries drop their plans to set up units in the district and move to neighbouring Tamil Nadu to establish their ancillary units close to a shoe factory which produce for Nike.

The Apache senior executive, Mr Steve Huang, said that they have not reduced production or opted layoffs despite global recession, while expressing displeasure over recent incidents.

Referring to 5,800 personnel working in the unit, he said that it was a dream of former chief minister Y.S. Rajasekhar Reddy to transform the region as industrial hub.

“In the past three years, Apache has provided scholarships to poor students, repaired classrooms for schools, installed street lights for nearby villages and so on, “ he claimed.

He said that they have been paying a minimum salary of Rs 4,500 to the workers and their living conditions have improved by leaps and bounds.

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