The industrial estates at Jaggaiahpet and Nuzvid with vacant plots in around 10 acres each and the 1-acre more at Machilipatnam are still awaiting prospective entrepreneurs to set up their units.
But, the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) appears to be facing some constraints in making fresh allotments of land, thanks to the delay in the process kick-started for revision of the land use policy which would subsequently enable the corporation to fix the prices at which fresh allotments could be made for industries. With this, the cost of land component for new industries is expected to shoot up due to the sharp rise in demand and the consequent increase in their prices.
The APIIC is waiting for guidelines on making new allotments and it is bound to take considerable time as the government has to conduct a major exercise to finalise modalities relating to management of lands available. Besides, the APIIC has not yet been bifurcated, owing to the time consuming process of allotment of All India Services officers to Andhra Pradesh and Telangana till a few days ago.
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Some industries, including a mega fertilizer manufacturing unit, coming up at Jayanthipuram near Jaggaiahpet, have secured land at prices as low as Rs 1 lakh per acre as the allotments were made in the past. But, the new ones will not have this luxury.
Public hearing for the fertilizer unit at Jayanthipuram has been completed and the ball is now in APIIC’s court to provide the land, APIIC Zonal Manager M. Murali Mohan told The Hindu.
Once the land policy comes up, industrialisation would pick up, he asserted, while agreeing that due emphasis ought to be laid on improving the infrastructure which is in a bad shape. Most entrepreneurs look to Vijayawada, Jaggaiahpet and Nuzvid as ideal places for running their business and they expect the government to keep a check on the skyrocketing land prices.
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