The Hindu : Andhra Pradesh News : Destination AP: spurt in industrial growth

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Thursday, Nov 01, 2007
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Andhra Pradesh

Andhra Pradesh

Destination AP: spurt in industrial growth

A. Saye Sekhar

HYDERABAD: Andhra Pradesh is becoming the most favoured destination for numerous industries – from manufacturing to services.

The State, which is a home for 3,855 large and medium industries with an investment of Rs. 57,935 crore, is planning to perk up the industrial activity by luring more and more investors. Nearly 11 lakh persons are employed in these industries.

The government is also giving a fillip to the proposals that have already been firmed up, besides formulating an industrial investment promotion policy.

The incentives offered by the State government include providing infrastructure, subsidised power tariff, reimbursement of 25 per cent of value-added tax paid, 100 per cent reimbursement of stamp duty and registration fee paid and special package for mega projects investing more than Rs. 100 crore. As many as 432 large and medium industries with an investment close to Rs. 10,000 crore were established in the last three-and-a-half years, providing employment to nearly 57,000 people. As many as 6,576 small enterprises with an investment of Rs. 2,000 crore, employing about one lakh persons, were set up during the period.

Sources in the Industries Department say that 210 large and medium industries are under execution with an investment of Rs. 38,671 crore to create employment for 1.30 lakh people. Most of them will become operational by the end of 2008-09. Important projects that have been implemented are from sectors like iron and steel, sponge iron, paper, cement, cotton yarn, ceramics and food processing. The State government has received 70 proposals for the setting up of Special Economic Zones (SEZs) which will act as growth engines for industrialisation, according to B.P. Acharya, Chairman and Managing Director of AP Industrial Infrastructure Corporation .

APIIC plan

The Corporation, which has acquired a land bank of over 50,000 acres, plans to scale up its business to over US $ 1 billion, considering its present growth rate. The corporation has not seen such a spurt in its business ever since its inception 25 years ago, says Mr. Acharya.

While 42 SEZs have been notified, 21 have been given formal approvals. Another seven SEZs have got an in-principle approval.

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