Buoyed by the response from Chinese firms and their keenness to invest in Andhra Pradesh, the State government has promised the “prospective investors” that it would ensure a direct flight between Tirupati, which is being developed as an electronics hub, and Hong Kong. The government is contemplating providing viability gap funding (VGF) to private airline operators who are willing to operate direct flights to Hong Kong.
The problem of air connectivity was raised by the Shenzhen-based electronics companies during IT Minister Nara Lokesh’s visit to China. Responding to it, the Minister assured them that a direct flight would be a “reality as early as possible.” The government is actively considering their request as a step towards its goal of making Tirupati a major player in electronics manufacturing.
When contacted, Mr. Lokesh said for the first time Chinese companies were coming outside to set up their units in the State. There was every need to improve facilities to international standards to avoid difficulties for the manufacturers coming here. Also, the CEOs of Chinese firms were keen on direct flights. The issue was brought to the notice of Chief Minister, who responded positively. The government would hold discussions with airline operators like Indigo shortly and was also ready to provide the VGF, say about ₹5 crore, to encourage them to operate direct flights, he said.
‘No competition for A.P.’
The government needed to address these ‘issues proactively’ if it were to make Andhra Pradesh as a destination for electronics manufacturing companies. In fact, there was ‘no big competition to A.P.’ in the country. Even Noida in Uttar Pradesh was having only a few companies functioning. But in Andhra Pradesh many major mobile and consumer electronics companies agreed to set up their units and some like Foxconn, Xiaomi, Jio, Holy Tech and Flextronics had already started functioning. China-based Astrum had signed an MoU for setting up a manufacturing unit with an investment of ₹100 crore, he explained.
The government had chalked out plans to set up electronics manufacturing cluster II in 322 acres at a cost of ₹2,827.5 crore near Tirupati. It had a potential to provide employment to 52,900 youths. For developing infrastructure, the State government would have to spend about ₹30.7 crore, he said.
