Andhra Pradesh   

Investors keep A.P. Government guessing

N. Rahul

Top companies negotiating simultaneously with many States

HYDERABAD : Investors in the fields of automobile, chip making, aluminium and petroleum refining are keeping the Andhra Pradesh Government guessing whether they will really set up their facilities here by holding negotiations simultaneously with several States.

With different Governments offering a variety of concessions such as free water and land and power at concessional rates, teams from these companies are hopping from one State capital to the other trying to strike the best bargain for their proposed units.

The latest in the list is the SemIndia-AMD Inc., a silicon chip maker, which, after holding talks with Chief Minister Y. S. Rajasekhara Reddy last Sunday, extracted from the Karnataka Government on Wednesday an offer of 1,500 acres of land, free water and uninterrupted power supply besides a slew of infrastructure and financial concessions for the Rs. 15,000-crore project.

The Andhra Pradesh Government had asked SemIndia-AMD to furnish its wish list so that it would match what other States were offering. But, they never got back with their demands, a senior official said.

The German automobile major, Volkswagen, which raised hopes of setting up a unit first at Visakhapatnam and later at Tada, is now dropping hints of exploring sites in Tamil Nadu and Karnataka. A team from the company is scheduled to hold talks with the Tamil Nadu Government on December 13 and Andhra Pradesh Government on December 14. It is also expected to visit Bangalore for similar negotiations with Karnataka later.

Such a turnaround by Volkswagen has caught the Government off guard.

However, Major Industries Minister J. Geeta Reddy said that the upcoming visit of Volkswagen only showed the continued interest of the company in the State and only final points would have to be worked out. "But we should not have any complaints if they visit other States."

If these two companies are playing musical chairs with the Government, there are two others keeping officials on tenterhooks.

The Jindal group, which has tied up with the Government to mine bauxite for an aluminium unit in Visakhapantam, has run into problems with the local tribal groups resisting.

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