AP moots setting up of Southern Industrial Corridor

Hyderabad|India|June'2010:  Continuing its efforts to vigorously promote industrial development and leverage the potential of human and natural resources in the State, the State Govt. has come up with a fresh proposal to initiate the process for setting up Southern Industrial Corridor.

To be modelled on the lines of the Delhi - Mumbai industrial development corridor, the Southern corridor would span from Bangalore to Chennai covering Andhra Pradesh. Dr. K. Rosaiah said establishment of the southern corridor will enable the State to utilise Krishna-Godavari basin gas for the all round development of the State besides promoting satellite townships, with all modern facilities along the corridor.

In addition, the corridor would supplement the activities of the ambitious Petrol, Chemical and Petrochemical Investment Region (PCPIR) coming up between Kakinada and Visakhapatnam. The number of ports which are already operational along the region will help boost exports from the State.

The Chief Minister shared these views with Major Industries Minister Mr.Kanna Lakshminarayana and Chief Secretary Mr.S.V.Prasad during a teleconference on Sunday. Senior officials of Industries and APIIC including B. Sam Bob and B.R. Meena have been directed to prepare a blue print for the proposed corridor so that the State could seek the Centre's approval and its assistance in promoting industrial development.

The Chief Minister recalled his recent interaction with the representatives of the Confederation of Indian Industry and said the industry was keen to host the Global Investors Summit in Hyderabad during this year. The summit, aimed at showcasing the potential of the State and maintaining the State's brand image as most favoured destination, is expected to be held on November 22 and 23 with participation of several key personalities from global industry.

Dr. Rosaiah who informed the developments to Union Minister for Commerce and Industry Sri Anand Sarma, invited him to participate as chief guest at the Global Investors Summit. The Chief Minister has addressed a letter to the Union Minister explaining him about the initiatives taken by the Government and sought the Centre's help in making the event a grand success.

Dr. Rosaiah reminded that Andhra Pradesh has the lowest power tariff in the country compared to any other industrially developed states like Gujarat. For instance, industrial power tariff in AP is just 380 paise a unit while it is 491 in Gujarat, 520 in Maharashtra, 490 in Karnataka, 452 in Tamil Nadu, 404 in UP, 442 in West Bengal and 484 in Madhya Pradesh.

This clearly indicates our commitment and wholehearted determination to promote industries and attract investment. The power tariff subsidy can be leveraged to the fullest extent by the automobile sector, he said. The Chief Minister further disclosed that the State is determined to become the Power Capital of India with a road map for generation of over 16,865 MW by the end of 12th Plan period. Such a massive power generation activity will not only accelerate agriculture, but also help in speeding up industrial development, particularly the power-intensive automobile sector.

The Chief Minister who participated in the Auto Show - south-2010 last fortnight also reviewed the progress and investment activities and directed the officials to prepare a plan of action plan for a national auto show at Hyderabad. The State Government proposes to promote automobile parks on Visakhapatnam-Kakinada corridor and also closer to sea ports, airports and natural resources like water, power, natural gas and road connectivity.

Andhra Pradesh is bestowed with quality infrastructure like power, water, connectivity, skilled pool of man power, and industry friendly environment which will be a dream come true for any domestic or foreign investor. The Chief Minister said that the districts of SPS Nellore, Ranga Reddy, Visakhapatnam, Anantapur and Chittoor had full potential for setting up automobile manufacturing clusters. ‘To begin with, the APIIC has promoted three auto hubs at Toopran and Chevella (Ranga Reddy District) and also Naidupeta (SPS Nellore District)’, he said.

Dr. Rosaiah said the State has already made major inroads to provide infrastructural support to setting up of manufacturing and automobile sector. Six major airports including the Shamshabad international airport at Hyderabad are operational and plans are afoot to establish seven more airports at Nizamabad, Ramagundam, Tadepalligudem, Ongole, Kadapa and Nellore.

"In addition, AP has also promoted industrial parks in the border districts like Kadapa, Anantpur, Chittoor and SPS Nellore so that investors could have no restrictions in their access to nearby international airports at Bengaluru and Chennai". As a result the State accounted for 9 per cent of national automobile sales and 30 per cent of Southern India sales. ‘Both the State and Hyderabad are known as the largest users of Motor bikes in the country’. It may be noted that World Bank in its latest report has ranked A.P as the Best State in implementing reforms and also ranked Hyderabad as the ‘Most Business Friendly City’ among metros in India. ‘A.P has kept pace with the development creating a win-win situation for every investor’, the CM said.

Keeping in view the above favourable conditions and conducive atmosphere in the State in mind, "Come and invest in A.P. which is the choicest destination of investors and a State which is ready to offer infrastructure and other facilities along with speedy clearances for industry," Dr.K.Rosaiah said.

-June'' 2010