Chennai|India|January'2009: As we ring in the New Year, I extend my best wishes to all the distinguished guests and delegates for a year of prosperity, good health and peace.

These are the times when the global economic slow down is threatening to cast its shadow on our economic progress. The appropriate measures taken by Govt of India will certainly bolster our economic growth and deserve our appreciation.


The national growth rate in 2007-08 was recorded to be 9.03%. I am proud to place on record here that Andhra Pradesh has achieved a GSDP growth rate of 10.64%, immensely contributing to the growth of the national economy.

The first and the foremost task of my government were to ensure an inclusive growth encompassing all sectors like Industry, IT, Pharma, Biotechnology, rural development, agriculture, irrigation and social security etc.,

Rural development includes 'Jalayagnam', intended to convert one crore acres of dry land into fertile soil, and agricultural growth through measures like free power and subsidized fertilizers. Agriculture growth rate has gone up to 12.20% for the 2007-08 increasing its contribution to the Gross State Domestic Product. Food grain production rose from 136.97 lakh tonnes in 2003-04 to 198.17 lakh tonnes in 2007-08. This got reflected in growth of our GSDP.

Any investor looks for a State bestowed with quality infrastructure like power, air connectivity, water, skilled human resources and conducive environment, free from frequent law and order problems.

The infrastructure we developed through Public Private Partnership (PPP) mode during the last few years includes many.

The strides we made in this regard can be gauged from projects like Rajiv Gandhi International Airport, which is India's first green field International Airport in India, Gangavaram Seaport, Jawaharlal Nehru Pharma City, Hyderabad International Convention Center, etc. I am glad to mention that there are several such large infrastructure projects which are on the anvil like the Hyderabad Metro Rail, Petroleum, Chemical and Petrochemical Investment Region (PCPIR), 8-track access control Hyderabad Outer Ring Road, Sea Ports at Krishnapatnam, Machilipatnam, Vodarevu and Visakhapatnam, a semiconductor manufacturing SEZ – Fabcity. These are some of the projects which are distinguishing in the state as sought after destination for investments.

Andhra Pradesh is the third largest power hub in the country. The state will be surplus in power by the end of '11th Five Year Plan'.

We have taken up a massive program of adding 15880 MW in the next four years through 21 power projects, including that of setting up a super critical power station at Vodarevu with 4000 MW and a nuclear plant of 2000 MW at Kadapa.

We are one of the few states in the country offering investor friendly energy policy to encourage renewable energy industry to flourish in the state. I am also glad that due to our policy initiatives industrial power charges are the lowest in the country during the past four years.

Union government has granted the supply of gas from Krishna-Godavari Basin (KG Basin) to various power plants in the state to augment the power generation capacity in the state.

Our earnest effort has resulted in abolition of import duty on Naphtha, facilitating the growth of Naphtha based power generation entrepreneurship.

The state has registered a healthy performance in both power generation and distribution and won the 'Best State Award'. There has not been a power hike even in domestic power tariff for the past four years.

A free-market economy and plentiful of English speaking skilled human resources, cost-effective services has made Andhra Pradesh the most attractive business destination to prospective investors in the recent past.

Today the state is rich with 303 Industrial Parks and 98 approved SEZs located across the state that offer huge investment opportunities of particular mention would be - Petroleum, Chemical and Petrochemical Investment Region (PCPIR).

Investments implemented in the manufacturing sector alone are Rs 16,735 crores (USD 3.49 billion) during 2004-08 against Rs. 5,392 crores ( USD 1.12 billion) for the period 2000-04. The proposed investments into my state are more than Rs. 2,15,000 crores (USD 44.79 billion) for implementation in the next 3 to 5 years time frame.

There are plentiful of opportunities for investors in IT & ITES, biotech, Pharma, renewable energy, tourism, food processing and many other sectors to build their business plans into success stories.

The state has recorded a growth rate of 41% in IT exports during 2007-08, as against the national growth rate of 32%, contributing 15% share in the entire IT exports from India.

In the last four years, 675 IT companies, mostly global giants have settled in Hyderabad and Visakhapatnam, a prominent Tier-II city in the state.

So far 98 SEZs have been approved, of which 57 have been notified. In all, 40 of them are in operation stage. These SEZs are expected to bring in an investment of Rs. 1,50,000 crores (USD 31.25 billion). The resultant employment generation, both directly and indirectly, should be over 4.0 million.

We have an IT policy in place, operative upto 2010, which provides special package for Mega Projects, SMEs, Tier II locations and provision of world class infrastructure to augment IT promotion in the state. The State is leveraging ICT for achieving an INFO-AGE (Inclusive, Networked, Fast, Open, Accountable, Globally benchmarked and Efficient) government.

We have the distinction of being rated as 'Most preferred investment destination for IT & ITES' by Gartner and NeoIT, 'Hi-tech Capital of the Subcontinent' and Hyderabad, the capital city of AP, as 'Next Silicon Valley' by National Geographic. Truly matching the developments in the sector, USA has established a Consulate in Hyderabad realizing the growing importance of Andhra Pradesh.

To add further impetus to this development, we invite you to join our mission to make the state a global digital destination.

A conscious attempt is made by Andhra Pradesh not only to make the state self sufficient but also to make it a perennial source for food security by insulating it from the possible food crisis in the decades to come. The State is all set to become India's number one producer in food grain. Strong initiatives were taken in marketing and establishing processing units for agricultural output.

AP is No. 1 in producing Mangoes, Chillies, Turmeric, Oil Palm, vegetable production and Citrus in the country, and has abundant Marine food resources offer adequate investment opportunities in Food Processing sector. An independent department is created to administer the development of Food Processing industry in the state.

The thriving cities, nature's bounty in the form of 970 Kms of coastline with golden beaches, forest cover, verdant hills & valleys and flora & fauna make Andhra Pradesh a unique destination for tourism.

We offer an investor-friendly 'Tourism Policy' to invite private investment to join hands with Government and forge Public Private Partnership. An Exclusive Tourism Policy 2006 is made to encourage quality investments to come into this sector. We encourage investments in medical tourism on a large scale.

In the light of plethora of developmental activities taking place in every sphere of economic activity, rapid progress achieved in providing world class infrastructure has made Andhra Pradesh an ideal global investment destination. I once again strongly feel that it is time for quality investments to reap the benefits of this opportunity.

I am sure some of you must have availed the services of APInvest, which is an independent nodal agency for investment promotion. This organisation acts as single point of contact to facilitate and hand hold the investors to extend every possible support.

Some of my senior officials are here today. I request you to interact with them on all possible investment opportunities that beckon you.

I welcome you to Andhra Pradesh to be part of this glorious development to sculpture a new era in golden letters in the history of Andhra Pradesh.

-Dr. Y.S. Rajasekhara Reddy
Chief Minister
Government of Andhra Pradesh


 

Reachout's News Bureau
 January' 2009