Sleepy southern areas wake up to a new growth phase

ANDHRA`S LONG MARCH

Factors like a push from the state government, proximity to Chennai and Bangalore, readily-available infrastructure and vast land (about 25,000 acres), are changing the face of these areas, which have large multi-product special economic zones (SEZs) like Sri City, Naidupet Industrial Park and a Kisan SEZ.

To realise the area's potential, the state government is planning to set up a manufacturing investment region (MIR), which will qualify for infrastructure grants from the Centre, between the port town of Krishnapatnam and Satyavedu on National Highway-5.

The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has asked L&T Ramboll to prepare the master plan and the feasibility report. This is being seen as the state's answer to the Tamil Nadu government's proposed MIR on the Chennai-Bangalore highway.

State officials say an MIR with good infrastructure will attract the labour-intensive manufacturing industry, which has so far been the forte of Tamil Nadu in the south.

APIIC Chairman and Managing Director BP Acharya said over Rs 27,000 crore worth of investments had been lined up in the area in manufacturing alone. If the six power projects proposed to be built near Krishnapatnam are included, the amount will be over Rs 60,000 crore. "The MIR proposal is also being discussed at the government of India level," he said.

The area's major advantage is connectivity, say officials. Besides the four-lane NH-5, which connects Chennai and Kolkata, the 75-km stretch between Krishnapatnam and Satyavedu is well connected by rail. This is in addition to Krishnapatnam port, to be inaugurated next month.

Though Tirupati and Chennai airports can meet the demand for air travel in the short term, a new airport has been proposed in Nellore. In addition to the existing SEZs, a 10,000-acre port-based SEZ is being planned, for which the APIIC is in the process of acquiring land, Acharya said.

The proposed manufacturing projects in the region include Rs 2,400-crore Kisan SEZ being set up by Iffco, Rs 880-crore textile and apparel SEZ by MAS Holdings, Rs 1,100-crore steel project of SBQ Steels Ltd, and Rs 3,500-crore industrial park and SEZ by the Caparo group.

Other projects include the Rs 500-crore Apache footwear SEZ, Rs 650-crore leather and leather products SEZ by Bharatiya International Ltd, Rs 100-crore leather SEZ by the Tatas and a consortium of shoe manufacturers, and Rs 18,000-crore Sri City multi-product SEZ.

The SEZ of Taiwan-based Apache Footwear