Hyderabad|India|November'2009: The Chief Minister Mr K Rosaiah has
announced his Government's commitment to adopt a multi-pronged strategy to
promote industries and attract investments in the State. While the
Government was providing various concessions in the form of subsidies and
incentives to help industries become competitive and grow at a brisk pace,
the power tariff is being maintained at the lowest level, compared to
other States in the country. Andhra Pradesh is going to emerge as the best
destination for industrial investments in the country, the state
government focussing on manufacturing sector in a big way, he said.
The Chief Minister Mr.K.Rosaiah who is going to review the progress of
industrialisation in the state soon, today has asked the Minister for
Major Industries Mr.Kanna Lakshminarayana to be constant touch with
prospective investors for industrial promotion in the State. The Chief
Minister has directed Principal Secretary, Industries Mr.B.Sam Bob to
submit a detailed report on the status of industrialisation in the
forthcoming review meeting.
Mr Rosaiah said for small scale and new industries the Government had
provided a power subsidy of 75 paisa per unit. Single window clearance was
established to avoid any delay. To the entrepreneurs who are setting up
small scale industries, capital subsidies have been provided by the
Government. In addition, the Government was providing world-class
infrastructural facilities to make Andhra Pradesh the manufacturing hub
for national and international companies. Several world-class firms
offered to establish their production units in the State. The Chief
Minister said work on the first phase of the prestigious semi-conductor
manufacturing facility, 'Fab City' was underway.
For the benefit of handloom weavers and leather industry, textile and
leather parks were being established in all the regions of the State. In
2006, investment proposals worth Rs.93,000 crores, constituting 10.2 per
cent of investments in the country, were cleared by the State Government.
Andhra Pradesh stands in second position after Maharashtra when it comes
to attracting investments. The major objective of the Industrial
Investment Promotion Policy 2005-10, is to create employment in the State
through industrialisation. During the last three and a half years,
Rs.12,350 crores worth of investments in manufacturing sector were
commissioned creating employment for 1,72,616 persons.
In the next two to three years, Rs.38,671 crores are likely to be invested
creating an employment potential of 1,30,458. The most potential sectors
are Cement, Steel, Paper, Bulk Drugs and Pharmaceuticals and Textiles to
name a few, which are doubling their capacities in the next 2 years. Multi
National Companies (MNCs) are evincing interest in setting up units in
Andhra Pradesh. The State is promoting number of sector-specific Special
Economic Zones to attract large scale Foreign Direct Investments. Once
operational, the SEZs are envisaged to create employment to about 25 lakh
persons.
According to CII Survey, “Andhra Pradesh is the Best Performing State in
the manufacturing sector among the Southern States”. The World Bank Report
- “Doing Business in India 2009” has ranked Hyderabad as the 2nd best
Metro city in India among the 17 metro cities. During the last 5 years,
major fillip was given to manufacturing sector by promoting corridors
across the state.
Realizing the natural gas potential in the Krishna Godavari basin,
North-east belt of the state starting from Visakhapatnam to Kakinada has
been promoted as major industrial corridor with major projects like AP
Special Economic Zone, a multiproduct SEZ, Jawaharlal Nehru Pharma City,
Brandix Apparel City, Kakinada Multiproduct SEZ, Expansion of
Visakhapatnam Steel Plant, HPCL etc.
Petroleum Chemical Petrochemical Investment Region (PCPIR) project
sanctioned by Government of India in an area of 604 sq. kms is one of the
prestigious project in promoting petroleum, chemical, refinery sector.
PCPIR is expected to attract Rs.3.43 lakh crores of investment with an
employment potential of 12 lakhs. Gangavaram port which is close to Vizag
port has also been commissioned recently.
The Union Minister of State for Steel, Mr.A.Sai Prathap has requested the
Chief Minister Mr.K.Rosaiah to lay foundation stone for a Ferro Alloy unit
at Bobbili. The said project, with an initial capital of Rs.200 crores,
would be established by Rashtriya Ispat Nigam Limited, Visakhapatnam in
association with Maganese Ore India Limited, Nagpur. This unit will
provide employment to local youth and also give boost to ancillary
industries in that region. In addition to the Hyderabad International
Airport, Fab City and Hyderabad Gems & Jewellery Park, ICICI Knowledge
Park, Biotech park, IT Parks, Textile Park, Pharma Park are being
developed on the city outskirts. Tata group has proposed to establish
aerospace and defence products manufacturing facility in Hyderabad in its
50-acre SEZ in Ranga Reddy district entailing an investment of Rs.1,000
crore to create employment to 4,000 persons.
Reachout's News Bureau
November' 2009
