AP may attract Rs 25,000 cr investments in manufacturing

The Andhra Pradesh government is expecting to attract investments to the tune of Rs 25,000 crore in the manufacturing sector during the current year, according to state industries principal secretary, B Sam Bob.

Bob said there was a buoyancy in the state's manufacturing sector at present with manufacturing units coming up in 10-12 special economic zones (SEZs). These SEZs were being set up for the manufacture of footwear, apparel, semiconductors, pharmaceuticals, electronic hardware, paper and gems and jewellery.

"We are using the SEZs as a means to get employment in the rural areas," Bob told Business Standard, adding that the target this year was to create employment for 150,000 people.

According to the estimates of the AP Industrial Infrastructure Corporation (APIIC), the projected investment in the 53 notified SEZs in the state is Rs 33,000 crore. The SEZs together are expected to provide direct employment to 890,000 people and indirect employment to 1.68 million persons.

So far, investments to the tune of Rs 4,400 crore have been made, while employment has been provided to 14,750 people.

According to chief minister YS Rajasekhara Reddy, industrial investments amounting to Rs 12,350 crore during the last three-and-a-half years provided jobs to 1,72,616 persons. An additional 210 projects entailing investments of Rs 38,671 crore are being implemented. They have an employment potential of 1,30,458.

Incidentally, more than one-fourth of the total 195 notified SEZs in the country is located in Andhra. In contrast to AP's 53 notified SEZs, the neighbouring Tamil Nadu has 27, Maharashtra 24, Karnataka 20, Gujarat 16, Haryana 15 and Kerala and Uttar Pradesh 8 each.

Besides the notified SEZs, there are an additional 17 SEZs in Andhra that have got formal approval and 3 SEZs, which secured in-principle approval taking the total number of SEZs in the state to 73.

APIIC chairman and managing director, BP Acharya, said 9 SEZs in the state had commenced operations, while infrastructure works have been started on an additional 34 SEZs. The SEZs that have started operations include Apache in Nellore, Brandix in Visakhaptanam, Gems and Jewelry in Rangareddy, TCS Synergy Park and Sierra Atlantic IT SEZ in Hyderabad.

Meanwhile, on May 8, the UK-based Caparo Group is laying the foundation stone for the Rs 3,500-crore Caparo Industrial Park at Menakur village near Naidupet in Nellore district.

The first phase of the project is scheduled to be completed in 18 months, providing employment opportunity to 2,500 people. The state government has allotted 2,000 acres for the project at Rs 1 lakh an acre.

Initially, Caparo will be setting up a luxury bus manufacturing plant in collaboration with Hyundai Motors of South Korea. The buses meant for sale in the Indian market, for which a technical agreement has already been signed with Hyundai, will start rolling out in July 2009.

The Caparo Industrial Park has been envisaged for the production of automotive, engineering and aerospace components. However, it is learnt that Caparo is planning to set up a separate SEZ for the manufacture of aerospace components and has sought land from the state government in Anantapur district for the purpose. Sources said the government had also agreed to this proposal.