Sun shines on the industrial front

The Andhra Pradesh Government is doing everything possible to woo investors to spur economic activity in the State. It is providing the industry with all possible support and help.
As per Government data, the State achieved an industrial growth of 8.26 per cent in 2007-08 and an overall growth GSDP growth of 10.64 per cent.
A recent survey done by the Associated Chamber of Commerce and Industry of India (Assocham) showed that the State recorded an investment of Rs 1,08,559 crore in the industrial sector in the first six months of the current year, with a potential of creating around three lakh new jobs.The Assocham study revealed that the investor-friendly industrial policy, along with a proactive administration, has ushered in a silent revolution in industrial sector in Andhra Pradesh, which is fully utilising its natural and human resources. Fifth largest economy
It further pointed out that Andhra Pradesh has emerged as the fifth largest economy in the country with potential to attract Rs 10 lakh crore investments by 2012.
According to RBI Corporate Investment Growth Report of 2006-07, Gujarat was first followed by Andhra Pradesh, Maharashtra, Tamil Nadu and Karnataka.
At a recent meeting, the Andhra Pradesh Chief Minister, Dr Y S Rajasekhara Reddy, said that the latest Indo-US civilian nuclear deal would facilitate an investment of Rs 50,000 crore in nuclear energy sector in Andhra Pradesh which has deposits of uranium and other radio active minerals.
He also pointed out that a uranium extraction plant and a nuclear power plant with a capacity of 2,000 MW would come up in Kadapa district.
Quoting the survey, Dr Reddy said sunrise sectors like bio-technology, nano technology, robotics and automation sectors were expected to attract investments of Rs 50,000 crore in the next two years. Gas find
At a recent session on India-US Economic Cooperation organised by CII, Mr Ron Somers, President, US India Business Council (USIBC), said that the recent gas find by Reliance Industries in the KG Basin, one of the largest in the world, will also spur a lot of economic activity.
“All along the pipeline there will be ancillary downstream facilities which will come up and be instrumental in transformation of the State’s economy,” he said.
He also felt that the State’s regulatory framework was very comfortable and ahead of others and it was important to bring businessmen to expose them to the opportunities where the regulatory framework was taking good shape.
“We are exploring the framework with regard to agriculture and learning so that we can find where the gaps are which will help us in giving recommendations the Governments,” Mr Somers said. Government data also shows that the development is not just in the area around the capital Hyderabad but also in other districts is helping industrial development in the State.
The data pointed out that the State had received sanctions for 97 Special Economic Zones (SEZs) of which 56 had been notified with an investment of Rs 1.5 lakh crore and a potential to create 25 lakh jobs in both private and public sector units. As of now, 55,000 persons were employed in 40 SEZs which became operational with an investment of Rs 5,120 crore.
Seventeen districts have so far benefited from the SEZs and the Government is also looking to ensure that SEZs were set up in the remaining districts too.Potential
The State Government’s proposal for promoting the Petroleum, Chemicals, Petrochemical Investment Region (PCPIR) spread over 1,48,719 acres with a potential of attracting Foreign Direct Investment to the tune of Rs 3.43 lakh crore and job potential of 12 lakh, is also pending with the Centre.
As part of the first phase, 603.58 sq km has been identified between Visakhapatnam and Kakinada for investments in various infrastructure projects.
Mittal Energy Investments, Total SA of France and oil refining and marketing major Hindustan Petroleum Corp (HPCL) have already said they would be investing Rs 32,000 crore in the proposed PCPIR.
The consortium will set up a 15 million metric tonne a year (mmtpa) refining-cum-petrochemical complex at the Andhra Pradesh SEZ within the region. Besides this, HPCL is expected invest another Rs 10,000 crore to double its existing 7.5 mmtpa refining capacity in the region.
Also the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is concentrating on developing bordering districts of the State to seize in on the non-availability of land in neighbouring Karnataka and Tamil Nadu.
The Corporation is looking at developing industrial zones in the border areas as there is a shortfall in the availability of land in the neighbouring States as the move is expected to facilitate more industries set up operations here.
For example, it is looking at developing Hindupur in Ananthapur district which is close to Bellary in Karnataka. In the same way it is also looking at developing Satyavedu in Chittor District and Tada in Nellore District which are close to the Tamil Nadu border.Industrial corridor
This is also one of the reasons why, the Andhra Pradesh Government is looking at joining the proposed industrial corridor covering Chennai-Bangalore-Mumbai.
State Government officials have had discussions with representatives from Infrastructure Development Finance Company Ltd to convey the State Government’s intention to be part of the proposed corridor.
As per initial plan, the State Government is proposing development stretch from Satyavedu to Chennai and also development of Nellore to Bangalore region covering Rajampet, Kadapa, Ananthapur and Hindupur covering a total distance of 300 kms in the State. The Andhra Pradesh Government is also proposing to create an infrastructure investment corridor, the third infrastructure corridor in the State, between Hyderabad and Machalipatnam. The proposed corridor is likely to cover a distance of approximately 290 kms and is being developed as the Hyderabad Krishna Deccan Corridor (HKD-IIC). It is would be developed under the Swiss Challenge method with a private component. The Swiss Challenge System is a bidding process to help private sector initiative in core sector projects. It’s an offer made by the original proponent to the Government ensuring his process to be best (in terms of effectiveness including both the factors cost and time) by his initiative as a result of his own innovative approach or on the demand of the Government to perform certain task. The system, like the bonus system, further allows third parties to make better offers for the project during a designated period with simple objective to discourage frivolous project or to avoid exaggerated project development costs.The Chief Minister has asked the Infrastructure Corporation of Andhra Pradesh (Incap) to go ahead with the project.