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International Investment Summit in City
Blue Print to Attract More Investments
International Investment Summit proposed to be held around March in Hyderabad.

Hyderabad|India|January'2010: Chief Minister K. Rosaiah has asked the Industries department to focus on evolving the new industrial policy with focus on redressing regional imbalances and ensuring that the State's resources are used to maximum extent. Emphasis should be laid on medium and small scale industries that have the potential of generating maximum employment and at the same time, priority should be given to entrepreneurs who come forward to set up industries in rural and backward areas in three regions of the State, i.e., Telangana, Coastal Andhra and Rayalaseema, he stressed.

The Union Minister of Commerce and Industry Sri Anand Sharma who spoke to the Chief Minister informed the Central Government's inclination to hold the International Investment Summit, slated to be held in March this year, in Hyderabad. The Chief Minister has instructed the officials to strive hard to utilise the event basically to attract investments in petrochemical, petroleum sector in Kakinada and Visakhapatnam and Fabcity in Hyderabad. Special focus should be made by preparing a blue print to attract I.T industries in Tier-2 cities like Warangal, Vijayawada, Tirupati etc.

Disclosing this at an informal meeting on the status of industrial development in the State convened in view of the proposed International Investment Summit in Hyderabad, the Chief Minister K Rosaiah wanted the Major Industries Minister Kanna Lakshminarayana to expedite the preparation of State's new Industrial Investment Promotion Policy for 2010-15. Principal Secretary, Industries Sam Bob informed the Chief Minister that the department was studying the policies adopted in leading States like Gujarat, Maharashtra and Tamil Nadu. Extensive Consultations are being held with Industries Associations at State & District Levels while workshops for analysing Strength, Weaknesses, Opportunities, Threats (SWOT) are being held. The new industrial policy is being prepared in consultation with leading industrial houses and ISB.

The Chief Minister unveiled the road map of the new industrial policy 2010-15 which incorporates the goals like raising the contribution of Manufacturing Sector to GSDP to 17% (against the current level of 11%); achieving enhanced annual growth rate of manufacturing sector from 12 to 15% and ensuring investments to a level of Rs.12,000 to 15,000 crores every year. Creation of 5 lakh jobs a year (4 lakhs in MSME and 1 lakh in large industries), increasing the share of MSME sector to around 50 to 60% (with the sector's share in GSDP to be around 9 to 10%) and double the existing Food Processing Capacity from the current to 10% to 20% would form the other highlights of the new policy.

The objective is to provide special thrust to Pharma, Bulk Drugs, Automotive, Textiles, Defense/Aerospace, Hardware, Renewable Energy (Wind and Solar) Food Processing and Leather sectors as the employment-intensive sectors will go a long way in minimizing regional and sub-sector imbalances. At the same time, efforts will be made to evolve policy framework that will help revitalise MSME sector and encourage green energy promotion. The new policy will incorporate a Comprehensive Infrastructure Policy with focus on MSME Sector and Skill Development. The Chief Minister emphasised that new industrial policy should have incentives for women, S.C and S.T entrepreneurs.

The total industrial investment proposals in the large sector during 2008-09 was Rs.1,33,448 crores while it was Rs. 66,865 crores during 2007-08 with a growth rate of 11.62%, the 3rd highest in the country. This includes industrial entrepreneurs' memorandum, letters of intent and direct industrial license. Investments under implementation as on date is worth Rs. 81,092 crores with an employment potential of 1,11,387 while those in initial stages are estimated at Rs.1,43,768 crores with an employment potential of 2,24,691, taking the total to Rs. 2,24,860 crores with a total employment potential of 3,36,078.

It may be stated here that MSME sector is the second largest provider of employment in India next to agriculture employing around 42 million people in about 13 million MSMEs in the country. The sector accounts to about 45 per cent of manufacturing value and 40 per cent of total exports. This sector is the provider of essential products and services to the people and registered a higher growth rate of 13% than the rest of the industrial sector.

As far as food processing industry in Andhra Pradesh is concerned, it is the 4th largest State in the country in terms of area with seven agro-climatic zones and a variety of soils supporting cultivation of a wide range of crops. Andhra Pradesh continues to be the best destination of investors, particularly food processing industry in the country, as the State is consistently leading the others in the production of rice, citrus, chilly, oil palm, prawn, egg, broiler and meat. It ranks second in fish, mango, tomato and coriander and third in the production of Pomegranate and tapioca. The food processing industry in Andhra Pradesh contributes to 19.26% of the total industrial production.

The Chief Minister said that normalcy is being restored in the State and assured the industrialists and investors that the interests of the Industry will be protected at any cost.

Reachout's News Bureau
 January' 2010

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