Investments worth Rs.3,07,178 crs in the pipeline for AP

Hyderabad|India|February'2011: Andhra Pradesh made a giant leap in the industrial map of the country in one day. The Chief Minister N Kiran Kumar Reddy on a single day cleared industrial investment worth Rs.25,672.40 crores (compared to Rs.37,993 crs in Major industries in last 7 years) at the State Investment Promotion Board meeting at Secretariat on last Wednesday (23rd Feb). He has cleared 25 units with an employment potential of 41,406 which will bring revenue to the State Government through VAT Rs.878.30 crores annually. It is not only a boon but a record in the industrial growth of the State.

The Chief Minister was informed that investments worth Rs.3,07,178 crores are either under implementation or on the pipeline. These include Bharat Dynamics Limited units at Anantapur for manufacturing missiles, NTPV-BHEL Power Plant Equipment Project at Mannavaram, Srikalahasthi (for which the Prime Minister has laid the foundation stone recently), Bharat Electronics Limited at Anantapur etc.

This one day investment clearance of Rs.25,672 crores is compared to a total of Rs.37,993 crores investment in Major and Medium Industries from 2004 to 2011. However there was also an investment of Rs.13,105 crores in Small Scale and Tiny Industries during this period thus a total of Rs.51,098 crores. The average investment between 2000 to 2004 was a mere Rs.37,036 crores in Major and Medium industries and between 1995 and 2000 was only Rs.11,058 crores.

The new Industries cleared by the SIPB are in the categories of Food &Agro (5 units), Automobile (3), Cement (7), Glass (1), Steel and Ferro Alloy (5), Mineral (sand) (1), Chemical (1), Ceramic (1) and Tyres (1) spread over 14 districts. The State is expected to get a total VAT of Rs.878.00 crores. Meanwhile the Chief Minister ordered that the incentives due (reimbursements of VAT etc) to the new units should be cleared at the earliest.

The New State Industrial Policy offers the best incentives and infrastructural facilities to investors and new industries. The Power tariff for industries in Andhra Pradesh is also the lowest in the country. Meanwhile SIPB agreed to exempt the new industrial units form payment of Electricity duty on captive power generation for self consumption. The new 25 units cleared by the Chief Minister and SIPB will be spread over 14 districts of East Godavari, Krishna, Nellore, Srikakulam, Vizianagaram, West Godavari, Anantapur, Chittoor, Kadapa, Kurnool, Adilabad, Mahbubnagar, Medak and Nalgonda.

The Investments in the pipeline include Rs.50,000 crores in the next four years. The public sector investments to the State are flooding. Six PSUs have already submitted proposals to the Govt. for investing Rs.44,800 crore. The Industries officials have informed that this amount may further increase. The HPCL has decided to develop refinery complex at Visakhapatnam by investing Rs.40,000 crore. This project is being set up in the PCPIR.

The BHEL-BEL jointly are jointly proposed to set up Solar PV Modules Unit at a cost of Rs.2,000 crore in the FAB city and already submitted necessary proposals to the Govt. BDL already expressed interest to set up two units in the State. It will set up missile units each at Ibrahimpatnam in Ranga Reddy and another at Chilamattur in Anantapur district at a cost of Rs.500 crore each. It sought 438 acres and 634 acres for these units respectively. Around 5,000 persons would get employment under these units, the Industries officials said.

The officials wanted to examine the feasibility and opportunities for setting up of BDL units at Visakhapatnam and Nellore also. HAL based at Banagalore has also come forward to set up Helicopters manufacturing unit at a cost of Rs.625 crore. Another PSU, ECIL has is also setting up electronic equipment manufacturing unit at a cost of Rs.500 crore. BEL also proposed to set up Radar Testing Unit in 1,000 acres at Palasamudram of Anantapur. According to officials, It is estimated that the investment for this would be around Rs.675 crore. It may be recalled that NTPC-BHEL jointly setting up power equipment manufacturing unit at Mannavaram in Chittoor district at a cost of Rs.6,000 crore. It is a good sign that government lands are available at all the places which are conducive for setting up industries. The fact that many defence units are available in the State are stated to be the main reason for many a PSUs coming forward to invest here, the officials said.

Chief Minister said the ultimate objective of the Government is to make Andhra Pradesh as the Number One industrialised State surpassing developed States like Gujarat, Maharashtra, Tamil Nadu and Karnataka. Officials said the latest industrial policy envisages to achieve a manufacturing growth rate of about 17%; create additional employment to over 5 lakh persons per year -- 2 lakh directly and 3 lakh indirectly; with special focus on Micro, Small and Medium Enterprises (MSMEs) and Food Processing; facilitate reduction of regional and sub-sector imbalances; leverage the existing sectoral strengths as well as the natural resources for value addition.

The new industrial policy ensured creation of quality infrastructure in the Industrial Clusters, Industrial Estates, promotion of Manufacturing Investment Regions along National Highways to capitalize the strengths in line with GoI initiatives for value addition within the State; Encouraging industrial estates in backward revenue divisions in PPP mode and provides differential rate of incentives to MSMEs in backward revenue divisions to reduce regional imbalances. It also provides sector specific Policies/Focus to capitalize the sectoral strengths like Textiles, Cement, Pharma, Food Processing, Steel, Granite etc.; alignment of policy incentives to ensure optimum utilization of GoI Schemes; Skill Development Policy to meet the industry requirement; build brand Andhra Pradesh as a benchmark for quality; streamlining the single window clearances system; encouraging anchor industries in thrust sectors to increase the ancillary base and comprehensive policy for revitalization of MSME sector.