Hyderabad: The Andhra Pradesh government is creating a dedicated task force to protect industries after business representatives raised concerns over the disruption to industrial production because of the agitations over carving out a separate Telangana state.

State of affairs: Osmania University students demanding the creation of Telangana clash with police in Hyderabad.

Chief minister K. Rosaiah made the announcement after a meeting with representatives of industry lobby groups Confederation of Indian Industry (CII) and the Federation of Andhra Pradesh Chambers of Commerce and Industry. Citing examples of projects, orders and investments being cancelled across sectors in Andhra Pradesh on account of deteriorating law and order, Rosaiah said the state may suffer huge losses if the situation worsens.

Allaying the apprehensions of CII representatives on organizing their annual partnership summit in Hyderabad in the third week of January, Rosaiah said the state would extend protection for the meet and urged them not to shift the venue to Chennai.

He also urged home minister P. Chidambaram and commerce minister Anand Sharma to help protect the state’s industrial and investment atmosphere.

Meanwhile, the students’ joint action committee at Osmania University has called for all hotels, restaurants and resorts in the region to cancel New Year celebrations.

The all-party Telangana joint action committee had called for a shutdown in the 10 districts of the region on 30 December. Rosaiah postponed a Cabinet meeting that was scheduled for Wednesday on account of the call for the shutdown.