We're now in the era of speed of doing business, says Nara Lokesh

The Andhra Pradesh government on Tuesday signed a memorandum of understanding (MoU) with Reliance Industries under which the conglomerate will invest Rs 65,000 crore to set up 500 compressed biogas plants in the state in five years. Nara Lokesh, who led negotiations, tells Archis Mohan in an interview over telephone and email that the government moved from proposal to MoU in just 30 days, underscoring its conviction that the “era of ‘ease of doing business’ is over”. Popular in Andhra Pradesh as the “job creator in chief”, the state minister of IT, electronics & communications, and human resource development, says the mantra now is “speed of doing business”. Edited excerpts:

 

What are the expectations for Reliance’s investment in compressed biogas (CBG) plants in Andhra Pradesh (AP), and how does this align with your broader vision of positioning the state as a clean energy hub? Additionally, how was the RIL investment negotiated and finalised in 30 days?

 

Over the past five years, we had a deeply anti-business government. Rather than encouraging businesses, it created an environment of extortion and fear that stifled expansion. Several businesses left AP for neighbouring states.

Reliance is among India’s most valuable corporations with the finest track record of execution of projects at scale. They have been partners to AP over the past two-three decades across businesses spanning oil & gas, retail, and telecom. However, even their investments tapered in AP over the past few years. This investment commitment by RIL is extremely significant for us, because it reinforces a message: AP is open for business again. It is a matter of pride that we were able to move from proposal to MoU in 30 days, besides developing a favourable policy for the bio-fuel sector in the interim.

When I found that Reliance would like to expand their CBG footprint, I initiated an engagement at the highest level and put together an action plan to understand how we can make this investment happen. It’s a great example of our mantra of ‘speed of doing business’.

 

Your government has set ambitious investment targets for AP. Could you elaborate on the principles of the ‘speed of doing business’?

  We have been working on streamlining our investment process. We have established a single-window investment process. All investment proposals across sectors would be initiated at our Economic Development Board (EDB). This agency has now been revamped; fresh industry-specific teams have been set up. We distinguish ourselves through the “speed of doing business”.

We use technology and seamless coordination through zoom calls and WhatsApp groups for collaboration. Our e-governance system provides file tracking and processing on a real-time basis.  If a project makes sense for the state, we’ll execute it in record time. The era of “ease of doing business” is over; we’re now in the era of “speed of doing business”.

 

As chairman of the state Cabinet’s jobs creation sub-committee, you’ve earned the nickname “job creator in chief”. How will investments like the ArcelorMittal-Nippon Steel India (AM/NS) project support the Telugu Desam Party’s goal of creating two million jobs? 

Job creation is the centre of our universe. I always weigh the benefits that the state is giving to a new industry against jobs that are being generated. When fully built, the AM/NS plant would be equivalent in size to Tata Steel’s plant in Jamshedpur. If we combine downstream industries, we have a once-in-a-generation opportunity to create another steel city like Jamshedpur.

I am convinced hundreds of thousands of jobs will be created here over the next decade as they (the plant) achieve their full capacity of 18 mtpa. We need to stay the course and keep our commitments. Industries expect policy certainty, and we must give it to them.

 

The AM/NS plant has been approved, and land is being handed over to the company in record time…

  Mr Naidu (Chief Minister Chandrababu Naidu) has a track record of acquiring acres in a constructive and collaborative manner, be it for Hi-Tec city in Hyderabad or for Amaravati capital region. We will acquire land by giving the farmer a share of the development pie -- this is how we have been moving at such a fast pace. The AM/NS land handover is in final stages; we will ensure it is done in the next few weeks.

 

What are the takeaways from your US visit?

  The world is clearly looking for new avenues to invest. Diversification away from China is a big and growing area of interest for corporations. We need to gear up ourselves for an upcoming wave of investments by creating a clear transparent framework for investment promotion.

 

Your ally, Jana Sena chief Pawan Kalyan, has voiced concerns about the state’s law and order and recently criticised your home minister. Is there trouble in the five-month-old alliance?

  We are a collaborative government, open to feedback and suggestions from all segments. Pawan Kalyan is a senior leader and respected coalition partner, and our Home Minister, Anitha, has taken his suggestions constructively. We are working together to make AP a safe place.

 

What is the progress on a package for AP that the CM sought from the Centre? 

We are extremely happy with the progress in the support given by the central government. On specific requests – such as for the Polavaram and Amaravati projects -- you are already seeing that the committed funds have been made available. Construction works are commencing in full steam. We are thankful to the central government and look forward to get the same level of support in the future, as well.