AP: No.1 in the country in attracting investments

Hyderabad|India|October'2008: In a major achievement, Andhra Pradesh has recorded a massive 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, due to the pro-industry policies of the State Government.

Chief Minister Dr Y S Rajasekhara Reddy disclosed this while reviewing the industrial investments in the State at his camp office. Dr. Reddy referred to a recent survey by the Associated Chamber of Commerce and Industry of India (Assocham) which revealed "the investor-friendly industrial policy along with proactive administration ushered in silent revolution in industrial sector in Andhra Pradesh which is fully utilizing its natural and human resources. The survey further pointed out that Andhra Pradesh has emerged as the fifth largest economy in the country with potential to attract Rs.10,00,000 (Ten lakh ) crore investments by 2012.

Quoting the survey, the Chief Minister said the latest 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. A Uranium extraction plant and a Nuclear Power Plant with a capacity of 2,000 MW would come up in Kadapa district, he pointed out.

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. The Krishna-Godavari basin with the new oil and gas finds would enable another Rs 50,000 crore investment in fertilizer and power sectors.

He said the proactive steps of the State government in boosting agriculture and industrial infrastructure in the last 4 ½ years helped AP in becoming the second best investment destination in the country from its earlier seventh position.

According to RBI Corporate Investment Growth Report of 2006-07, Gujarat stood at No.1 followed by Andhra Pradesh, Maharashtra at No.3, Tamil Nadu at No.4 and Karnataka at No.5.

The Chief Minister further said the State achieved a record industrial growth of 8.26 per cent in 2007-08 and an overall growth GSDP growth of 10.64 per cent as against only 5.79 per cent during the previous TDP rule. He said the Confederation of Indian Industries, too adjudged AP as the best performing state in manufacturing sector among the southern States. It recorded 2,13,915 jobs (67 per cent growth), Rs.16,735 crore private investments (210 per cent growth) during the period 2004-08.

He said the State had received sanctions for 97 Special Economic Zones 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.

He said the Apache group, manufacturers of the world famous Adidas shoes, employed over 6,000 women at their plant in Nellore district and textiles giant Brandix set up an integrated apparel park near Visakhapatnam employing over 2,000 women.

The Chief Minister said 17 districts had the benefit of SEZs and effort was made to ensure that SEZs were set up in the remaining districts too. 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, was pending with the Centre, he said.

Dr.Reddy further said Tata group had come forward to invest in the Aerospace and Precision Engineering SEZ coming up on the outskirts of Hyderabad and set up a high technology research centre in 50 acres. The second campus of the Tata Institute of Fundamental Research was coming up in Hyderabad over 210 acres with an investment of Rs 2,500 crore over a period of 12-15 years. "It would be another feather in the cap of Andhra Pradesh which has attracted several high quality institutions of higher learning like the IIT, WCCU (National University), NIPER, SPA, BITS campus (private) and ISM campus," he said.

"My goal is to achieve saturation level and provide employment opportunities to every unemployed youth in the State, so that every eligible person gets work" the Chief Minister asserted.