Close on the heels of the Holitech and Reliance, two or three more major companies are all set to start operations with big investments of about ₹3,000 crore in the Electronics Manufacturing Cluster (EMC) near the temple town of Tirupati.
K. Vijayanand, Principal Secretary, IT, Electronics and Communications Department, told The Hindu that these companies would be set up soon, giving a push to industrialisation and employment generation.
He refused to identify the companies citing intense competition from other States. “They are big firms and we will reveal the names at the right time.”
He said the government’s innovative policy initiatives and aggressive promotion for attracting IT and electronics was yielding results with the best recent example being Holitech Technology.
“The fact that Holitech looked beyond China and decided to set up shop in Andhra Pradesh reflects our policy and our efforts.” The EMCs designed to cater to the electronic system design and manufacturing have already attracted marquee companies such as Foxconn, Celkon, Dixon, and Flextronics.
‘Big breakthrough’
Getting Holitech Technology that makes components for mobile phones of leading brands, including Xiaomi, to set up its plant on 75-acre site near Tirupati with an investment of ₹1,400 crore was a “big breakthrough, as convincing Chinese companies is not an easy task.” An MoU was signed between Holitech and the government five days ago.
Reliance project
Soon after a meeting with Chief Minister N. Chandrababu Naidu in February this year, Reliance Group chairman Mukesh Ambani promised to locate electronic manufacturing plant spread over 150 acres also near Tirupati, he said.
The exclusive electronic enclave will host a plant to make Jio mobile phones, besides making television sets, batteries and set-top boxes.
‘Best IT policy’
Mr. Vijayanand said the updated consolidated IT policy 2018-2020, cleared by the Cabinet recently, was the best in the country, offering fiscal incentives that includes a rebate on the cost of land at ₹60,000 per employee to mega IT and telecom firms and ₹40,000 per employee for other IT and telecom firms, subject to maximum of 80% of the land cost as determined by the allotment agency. For IT and telecom park developers, a rebate on the cost of land is being provided at 50% of the land cost as prescribed by the APIIC. “The policy has been made attractive for private developers assuring rentals too, the objective being creation of more space. Five parties have shown interest to create space under this model,” he added.
It was because of the policy, top rank in EODB, and Mr. Naidu “being our best brand ambassador” and IT Minister N. Lokesh, a number of companies were coming to the State, he said.
Adopting a dispersed development model and in tune with IT companies scouting for space in Tier II cities, the government was keen on developing the IT sector not just in Visakhapatnam but in Amaravati, Chittoor and Anantapur, he said. A strategic place is being identified in Anantapur district, in close proximity to Bengaluru. The government is looking forward to set up four additional SEZs in these four places.
