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Kiran Clears Rs. 25,672 Cr Industrial Investment In One Day

Posted by on February 27, 2011 0 Comment

Hyderabad: Andhra Pradesh made a giant leap in the industrial map of the country in
one day. The Chief Minister, Mr N Kiran Kumar Reddy, on a single day cleared industrial investment
worth Rs 25,672.40 crores (compared to Rs 37,993 crores in Major industries in last seven years) at the
State Investment Promotion Board meeting at Secretariat on last Wednesday. He had cleared 25 units
with an employment potential of 41,406 which will bring revenue to the State government through
VAT Rs 878.30 crores annually.

It is not only a boon but a record in the industrial growth of the State.
The Chief Minister was informed that investments worth Rs.3,07,178 crores are either under
implementation or on the pipeline. These include Bharat Dynamics Limited units at Anantapur for
manufacturing missiles, NTPV-BHEL Power Plant Equipment Project at Mannavaram, Srikalahasthi
(for which the Prime Minister has laid the foundation stone recently), Bharat Electronics Limited at
Anantapur etc.

This one day investment clearance of Rs.25,672 crores is compared to a total of Rs.37,993
crores investment in Major and Medium Industries from 2004 to 2011. However there was also an
investment of Rs.13,105 crores in Small Scale and Tiny Industries during this period thus a total of
Rs.51,098 crores. The average investment between 2000 to 2004 was a mere Rs.37,036 crores in Major
and Medium industries and between 1995 and 2000 was only Rs.11,058 crores.

The new Industries cleared by the SIPB are in the categories of Food &Agro (5 units), Automobile
(3), Cement (7), Glass (1), Steel and Ferro Alloy (5), Mineral (sand) (1), Chemical (1), Ceramic (1)
and Tyres (1) spread over 14 districts. The State is expected to get a total VAT of Rs.878.00 crores.
Meanwhile the Chief Minister ordered that the incentives due (reimbursements of VAT etc) to the new
units should be cleared at the earliest.

The New State Industrial Policy offers the best incentives and infrastructural facilities to
investors and new industries. The Power tariff for industries in Andhra Pradesh is also the lowest in the
country. Meanwhile SIPB agreed to exempt the new industrial units form payment of Electricity duty
on captive power generation for self consumption. The new 25 units cleared by the Chief Minister and
SIPB will be spread over 14 districts of East Godavari, Krishna, Nellore, Srikakulam, Vizianagaram,
West Godavari, Anantapur, Chittoor, Kadapa, Kurnool, Adilabad, Mahbubnagar, Medak and

The Investments in the pipeline include Rs.50,000 crores in the next four years. The public
sector investments to the State are flooding. Six PSUs have already submitted proposals to the Govt.
for investing Rs.44,800 crore. The Industries officials have informed that this amount may further
increase. The HPCL has decided to develop refinery complex at Visakhapatnam by investing
Rs.40,000 crore. This project is being set up in the PCPIR.

The BHEL-BEL jointly are jointly proposed to set up Solar PV Modules Unit at a cost of
Rs.2,000 crore in the FAB city and already submitted necessary proposals to the Govt. BDL already
expressed interest to set up two units in the State. It will set up missile units each at Ibrahimpatnam in
Ranga Reddy and another at Chilamattur in Anantapur district at a cost of Rs.500 crore each. It sought
438 acres and 634 acres for these units respectively. Around 5,000 persons would get employment
under these units, the Industries officials said.

The officials wanted to examine the feasibility and opportunities for setting up of BDL units at
Visakhapatnam and Nellore also. HAL based at Banagalore has also come forward to set up
Helicopters manufacturing unit at a cost of Rs.625 crore. Another PSU, ECIL has is also setting up
electronic equipment manufacturing unit at a cost of Rs.500 crore. BEL also proposed to set up Radar
Testing Unit in 1,000 acres at Palasamudram of Anantapur. According to officials, It is estimated that
the investment for this would be around Rs.675 crore. It may be recalled that NTPC-BHEL jointly
setting up power equipment manufacturing unit at Mannavaram in Chittoor district at a cost of

Rs.6,000 crore. It is a good sign that government lands are available at all the places which are
conducive for setting up industries. The fact that many defence units are available in the State are
stated to be the main reason for many a PSUs coming forward to invest here, the officials said.
Chief Minister said the ultimate objective of the Government is to make Andhra Pradesh as the
Number One industrialised State surpassing developed States like Gujarat, Maharashtra, Tamil Nadu
and Karnataka. Officials said the latest industrial policy envisages to achieve a manufacturing growth
rate of about 17%; create additional employment to over 5 lakh persons per year — 2 lakh directly and
3 lakh indirectly; with special focus on Micro, Small and Medium Enterprises (MSMEs) and Food
Processing; facilitate reduction of regional and sub-sector imbalances; leverage the existing sectoral
strengths as well as the natural resources for value addition.

The new industrial policy ensured creation of quality infrastructure in the Industrial Clusters,
Industrial Estates, promotion of Manufacturing Investment Regions along National Highways to
capitalize the strengths in line with GoI initiatives for value addition within the State; Encouraging
industrial estates in backward revenue divisions in PPP mode and provides differential rate of
incentives to MSMEs in backward revenue divisions to reduce regional imbalances. It also provides
sector specific Policies/Focus to capitalize the sectoral strengths like Textiles, Cement, Pharma, Food
Processing, Steel, Granite etc.; alignment of policy incentives to ensure optimum utilization of GoI
Schemes; Skill Development Policy to meet the industry requirement; build brand Andhra Pradesh
as a benchmark for quality; streamlining the single window clearances system; encouraging anchor
industries in thrust sectors to increase the ancillary base and comprehensive policy for revitalization of
MSME sector. (NSS)

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