Two Years of Accomplishments
The State has extensively marketed the strategic and demographic advantages of our state, as well as the credibility of our Chief Minister’ s leadership to attract investments to the state.
From the day he took over, Chief Minister Chandrababu Naidu put in place, various best-in-class policy instruments and fiscal incentives to spur industrial growth. And the results have been overwhelming.
Andhra Pradesh has a healthy pipeline of over Rs 3 lakh crore of investments, which is more than the overall 5-year target envisaged under the Industrial Development Policy. The state has a strong investment pipeline of more than 300 projects, which when realized, could potentially create more than 6.7 lakh new jobs in the state.
The Single Desk Policy which aims to create a conducive ecosystem to provide all clearances required to setup industry within 21 working days has ensured a strong second place among Indian states in the Ease of Doing Business in the World Bank rankings. As of April 23, 2016, around 7,623 applications have been received through the Single Desk Portal with over 6,577 applications approved with around 91 % compliance of 21-days service level.
The State Government is taking strong steps in developing robust infrastructure to promote manufacturing through two large Industrial Corridors Chennai – Bengaluru Industrial Corridor( CBIC) and Visakhapatnam – Chennai Industrial Corridor( VCIC).
VCIC is being supported by the Asian Development Bank’ s( ADB) with a policy-based loan USD 125 million to support policy reforms, and institutional development as well as a multi-tranche financing facility( MFF) of USD 715 million for priority infrastructure projects.
Under CBIC, three potential Industrial nodes in Andhra Pradesh have been identified: Krishnapatnam in Nellore Dist, Yerpedu in Chittoor Dist and Hindupur in Anantapur Dist.
Andhra Pradesh is the first State in which Government of India has announced a NIMZ( National Investment and Manufacturing Zone). India’ s first NIMZ will be housed at Prakasam NIMZ at Pamuru. A second one at Chittoor is also proposed.
High-level delegations led by the CM to China and Japan have yielded fruitful results. A total of 17 Government to Business( G2B) and 12 Business to Business( B2B) MoUs were signed during the visit; MoU’ s were signed in several sectors including Energy, IT, Textiles, Construction and Engineering. Electronics giant Foxconn set up manufacturing facility in which Xiaomi and Gionee are making their mobile phones. Guizhou International Investment Corporation( GIIC) is setting up 1000 acres Industrial Park in Kakinada SEZ which would house leading Chinese manufacturing industries.
The CM visited Japan twice in these two years with significant outcomes. During the first visit, 4 Government to Government( G2G) and 25 Government to Business( B2B) meetings were held, and MoUs were signed during the visit with METI, NEDO and Sumitomo Corporation; MoU’ s were signed in sectors including overall infrastructure, energy, agriculture; Food Processing, Smart Cities and Capital City etc. In the next visit, two MoUs were signed with – Mizuho Bank and NEC.
During the Partnership Summit in Vizag held in January this year, a total of 328 MoUs with investment potential of Rs 4.67 lakh crores and employment potential of 9.58 lakhs, were signed, cutting across various sectors.
A few important facilities that have gone into production:
w Isuzu Motors with investment of Rs 3000 cr( employment- 2000) – at full production
w Mondelez with investment of Rs 1000 cr( employment – 1600 at full production)
w Hospira Healthcare with investment of Rs 1500 cr( employment – 3000)
w Sri Govindaraja Textiles with investment of Rs 600 cr( employment – 720)
w Pepsi Co. plant with investment of Rs 1,200 cr.( employment – 600)
w Berger Paints with investment of Rs 497 cr( employment – 1425)
w Amara Raja Batteries with investment of Rs 325 cr( employment – 600)
w Colgate Palmolive with investment of Rs 255 cr( employment – 150)
w Kellogg with investment of Rs 338 cr( employment – 360)
w Silica Ceramica with investment of Rs 173 cr( employment – 1850)
Overall, due to above measures, Industries sector registered growth of 11.1percent. for FY 2015-16. v JUNE 2016 ANDHRAPRADESHMAGAZINE. ORG 31