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No funds from Centre to take up NIMZ project: AP govt body


Press Trust of India Amaravati
The Centre has sanctioned "no funds" till now to take up the National Investment and Manufacturing Zone project in Prakasam district, the Andhra Pradesh Industrial Infrastructure Corporation said today.
The state government body said without the Centre fulfilling any of its financial commitments, it would be "very difficult for the state" to take up a project of this scale.
The statement comes two days after BJP MP G V L Narasimha Rao wrote to chief minister N Chandrababu Naidu reportedly criticising the state government for failing to take up the NIMZ.
"As of now, total extent envisaged for development (of NIMZ) is 14,231 acres, of which APIIC is in the possession of 1,839 acres. As per NIMZ guidelines, the entire extent of land has to be acquired and transferred to the SPV within 18 months," APIIC vice-chairman and managing director Babu Ahamed said.
This forces the state government to spend an upfront amount of Rs 2,800 crore, on a very conservative basis, on land acquisition, he said.
"It may be noted that Government of India has sanctioned no funds till now to take up the NIMZ, even though the state government set up an SPV for the project."

Without any upfront budgetary commitment from the Centre and with Andhra Pradesh already under a huge deficit due to the state bifurcation, "it is very difficult for GoAP to take up a project of this scale without (the Centre) fulfilling any of its financial commitments," Babu said.
He said the Centre itself earmarked only Rs 3.35 crore in fiscal 2016-17 under the 'Scheme for Implementation of National Manufacturing Policy for 'Master Planning of NIMZs' and Technology Acquisition and Development Fund (TADF).
"Considering immediate financial pressures, the state government is strategically taking up smaller projects that are viable in nature to kick-start the process of industrialisation in Prakasam district," he said.
This was to ensure that long term projects like NIMZ get a sturdy platform and are smoothly taken up with additional support of local industry and through public-private participation, the APIIC MD added.
He listed various 'other' projects like industrial parks, mega food parks and a node under the Visakhapatnam-Chennai Industrial Corridor that were aimed at kick-starting the industrialisation process in Prakasam district.

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First Published: Jul 30 2018 | 7:56 PM IST

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