AP hires top consultants to boost investments

The government of Andhra Pradesh has selected high profile consultancy companies to suggest suitable steps to attract investments in identified sectors. The consultants have been hired for an initial period of six months.

The selected consultants and the sectors they have been requested to attened to are: Ernst & Young (agro, food processing, biotech), A F Ferguson (bulk drugs, pharma), PriceWaterHouse Coopers(mining, minerals), PriceWaterHouse Coopers (electronic hardware,telecom), KPMG (auto, auto components), Mega Ace Consultancy (apperel,textile, leather), and Alpic Finance (finance, insurance).

The seven sectors have been allocated to the consultants based on the recommendations made by the Cabinet sub-committee which was constituted to recommend steps to be taken for increasing
investment flows into the state.

Cabinet sub-committee has recommended to pay a retainer fee of RS 50,000 per month to each consultant and to reimburse the actual costs. Besides the sub-committee has recommended to pay a 'success fee' of one percent of the landed investment after the unit commences commercial operations.

The consultants have been appointed at a cost of RS 54 Lakh to the exchequer for the initial six months period. This has been done to ensure smooth flow of domestic and foreign investments into the short listed sectors in Andhra Pradesh.

19th June'00