As Andhra Pradesh reaches the new normal after being in the grip of the COVID-19 pandemic for close to three years and green shoots began to appear in the economy, the State government seems to lay renewed thrust on the development of industrial and infrastructure sectors which have tremendous potential and have been largely untapped.
Ahead of the much-touted Global Investor Summit (GIS) scheduled in Visakhapatnam early next month, the government is likely to bring a new industrial policy to better cater to the requirements of existing and prospective entrepreneurs.
Maritime sector
The government is apparently betting big on the scope for investments in the maritime sector (especially on the construction of seaports), Visakhapatnam - Chennai, Chennai - Bangalore and Hyderabad - Bangalore industrial corridors, IT, electronics and communications (for which the State has a vast talent pool), pharmaceuticals, and in some standalone projects like the proposed integrated steel plant in Kadapa district.
Currently, civil works for Ramayapatnam port and a string of fishing harbours are underway.
In addition to the availability of physical infrastructure and support being extended in terms of tailor-made policies, the A.P. government is highlighting that it is consistently ranked No.1 in the country in ‘Ease-of-doing business’ as part of its efforts to catch the fancy of investors.
Amidst all this is what Chief Minister Y.S. Jagan Mohan Reddy sprang the other day in New Delhi came as a pleasant surprise for some. He said that Visakhapatnam is going to be the executive capital of the State in his bid to attract investments to the port city, which is by far A.P.’s largest city which had also been the State’s industrial hub followed by Nellore - Tirupati - Sri City (Chittoor) belt.
The State government clinched a major deal by obtaining the Central government’s in-principle approval for the development of a bulk drug park with the financial assistance of ₹1,000 crore in Thondangi Mandal of East Godavari district.
YSR Jagananna Mega Industrial Hub
A ‘YSR Jagananna Mega Industrial Hub’ is being developed on 6,739 acres near the Kopparthy node of VCIC and Phase-I of ‘YSR Electronics Manufacturing Cluster’ is being developed on a 540-acre of land parcel close by.
Then, the Government of India accorded its approval for the development of multi-modal logistics parks at Anantapur and Visakhapatnam while proposals for similar facilities at Orvakal (Kurnool) and Kopparthy (Kadapa) are through negotiations.
The AP Industrial Infrastructure Corporation (APIIC) is developing industrial parks under the Micro and Small Enterprises - Cluster Development Program (11 such parks have already been readied and 22 more are in the pipeline).
The APIIC has developed the common infrastructure at Guttapadu and three companies have been allocated land.
Orvakal, the happening place
“About 900 acres have been earmarked for ‘Red Category’ industries, and pharma companies from Hyderabad are looking towards Kurnool as the next destination”T. Venkateswara ReddyZonal Manager, APIIC
About 900 acres have been earmarked for ‘Red Category’ industries, and pharma companies from Hyderabad are looking towards Kurnool as the next destination, says APIIC Zonal Manager T. Venkateswara Reddy.
National Industrial Corridor Development and Implementation Trust (NICDIT) has granted permission to include Orvakal in the Hyderabad-Bengaluru Industrial Corridor (HBIC). The clusters are ready with environment clearance obtained for 4194.32 acres.
“It is not only the ‘Red Category’ but even a Flatted Factory Shed with plug and play facility investing ₹15 crore is proposed to be developed at Brahmanapalli under the Micro and Small Enterprises Cluster Development Programme (MSE-CDP) scheme of the Central Government for readymade garments cluster,” says Mr. Reddy, highlighting the diversity of the type of industries they were trying to attract.
Detailing the demand for the State Government’s Mega Industrial Hub at Orvakal on 10,257 acres and the industrial hub close to the Kurnool Airport and National Highway No. 40, he said, so far 413.19 acres was allotted to mega industry Jairaj Ispat Pvt. Ltd. for the establishment of an Integrated Steel Plant with an investment of ₹2,938 crore by employing 1,030 persons.
At Guttapadu Cluster, 41.46 acres were allotted to three companies—Sigachi Industries Limited, RPS Projects and Developers Private Limited and Primo Poly Pack. Infrastructure works like a 2.8 km approach road have been completed, and another ₹30 crore will be spent on infrastructure development in this cluster.
Water Supply will also be soon provided at the cost of ₹428 crore at the cluster with an estimated requirement of 1 tmcft. A tender has been given to lay a 57-km pipeline to bring Krishna water from Muchimarri, and it is likely to be completed by 2024-end.
Automobile sector
In the manufacturing sector, the government is in an upbeat mood that automobile majors like Kia Motors, Isuzu Motors, Hero Motors and Ashok Leyland had forayed into the State and ancillaries like Apollo Tyres and Bharat Forge have their presence too and some of them are in an expansion mode.
Government land is not available in and around Adoni for the establishment of Auto Nagar, but the Revenue authorities have identified 100 acres of Patta lands for the purpose. Chief Minister Y.S. Jagan Mohan Reddy had promised to set up the auto nagar at Adoni during his visit in July last year.
Aviation sector
The international airport at Bhogapuram in Vizianagaram district which was till recently hampered by court cases involving land acquisition issues, is now poised to take a tangible shape with all those hurdles cleared.
Some smaller greenfield airports are proposed to be developed with financial support under the Ministry of Civil Aviation’s regional connectivity (Ude Desh ka Aam Naagrik - UDAN) scheme. Due focus is laid on increasing the exports of drugs and pharmaceuticals, marine products, agricultural produce, handicrafts and engineering products among other things.
Elusive Special status
The Special Category Status (SCS) would have brought various incentives for those keen on investing in the State but it has been elusive as the Centre maintained that the Finance Commission does not distinguish between special category States and others.
To sum up, the government has achieved some success in the industrial sector despite the teething problems plaguing the ‘successor State of AP’ in the last ten years.
Nevertheless, a lot more remains to be done at a faster pace if AP intends to catch up with other progressive States, particularly the ones in south India. How its growth story unfolds in the run-up to the general elections in 2024 and beyond is to be seen.
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