EMPIRE FEATURE
ANDHRA BOOMING

Andhra Pradesh Industrial Infrastructure Corporation Ltd. (APIIC) is the principal facilitator for industrial investment in the state of Andhra Pradesh. It is a dynamic body and responsible for turning around the investment scenario in the state in a very telling manner. In a Q and A with INDIA EMPIRE, APIIC Vice Chairman and Managing Director Mr. B.P. Acharya explains why:


The largest SEZ in Andhra Pradesh is a multi-product one. The rest are spread over segments like IT, pharmaceuticals, gems and jewellery, semi-conductors, textiles, building products, formulation, biotechnology, leather


Q: Kindly provide an overview of the thrust areas of APIIC for making A.P. a preferred business destination worldwide…
A: APIIC performs the role of a facilitator for industrial investment. That includes planning, promoting, developing and implementing projects, including infrastructure projects, under a system of public-private partnerships. We are also the nodal agency for all industrial infrastructure projects including IT parks and Special Economic Zones in the state of Andhra Pradesh.

Q: What kind of area has been taken over for implementing your projects?
A: We have acquired over 38,000 acres for developing 264 parks. Over 20,000 acres of land have been allocated for different projects.

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The Vishakapatnam SEZ is one of the largest multi-product SEZs in the country. It is well connected to ports, airports and rail networks
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Q: Have you achieved your targets for land allotment?
A: Not only have we achieved our target, we have exceeded it. In 2005-06, we allotted land worth Rs 444.32 crore to industrial units against our target of Rs 343.37 crore.

Q: What is the extent of investment in projects that has flowed in?
A: While in 2002-03, investments were to the tune of Rs 468 crore, in 2005-06 the figure shot up to Rs 1,937 crore. The employment generation during this period has shot up from 24,000 to 52,000.

Q: Please take us through your SEZ projects…
A: Formal approval has been accorded to 43 SEZs, principal approval has been accorded to nine. Our distinction is that a fifth of the entire country's SEZs that have been formally approved are situated in the state of A.P.

Q: This is a telling achievement. What are the sectors that have come into the SEZs?
A: The largest SEZ is a multi-product one at Vishakapatnam. The rest are spread over segments like I.T., pharmaceuticals, gems and jewellery, semi-conductors, textiles, building products, formulation, bio-technology, leather goods.

Q: What is special about the SEZ at Vishakapatnam?
A: It is spread over 2,309 hectares making it one of the largest multi-product SEZs in the country. It has good connectivity to ports, airports and rail networks. The focus here is on chemical and petrochemical industries, with the anchor industry being HPCL with nearly Rs 30,000 crore of investment. Two other SEZs, Brandix (textiles) and SRF (chemicals) are in the vicinity.

Q: How about the Fab City?
A: An MoU for Fab City was signed between the Government of Andhra Pradesh and SemIndia in February. It is spread over 1,200 acres in Maheswaram Mandal in Ranga Reddy district. Phase I of the project on Assembly Test Markings and Packings has started. The approach road has been laid out by APIIC. The total investments that will be made in FabCity is up to U.S.$ 3 billion.

Q: We've heard about the Hyderabad Gems SEZ Ltd. Can you please elaborate on that?
A: Yes. The Government of A.P. has approved allotment of 200 acres in phases to the Hyderabad Gems SEZ Ltd. Of this 75 acres has been allocated at the Hardware Park in Hyderabad for developing a Gems and Jewellery Park in phase I of the project. There will be three phases to the project that will cost Rs 460 crore. When complete, total exports projects out of this SEZ will be Rs 5,000 crore. Besides, there will be an employment generation of about 50,000.

Q: What about the Pharma Sector?
A: The Jawaharlal Nehru Pharma City is a facility being promoted by APIIC and Ramky Infrastructure Ltd. The project covers 2,200 acres, investment is to the tune of Rs 313 crore. The first allotment over 42 acres was made to SNF India last year by our Hon'ble Chief Minister.

Q: We are given to understand that there is a large project on industrial water supply…
A: That is right. This a project being promoted by APIIC and others. The project cost is Rs 453 crore. It will be managed by the Vishakapatnam Industrial Water Supply Company.

Q: It is exciting to hear about a Textile SEZ…
A: The Brandix India Textile SEZ at Vishakapatnam covers an area of 405 hectares, will eventually employ 60,000 persons. It should be commissioned in February 2007.

Q: What about the Manchirevula Business District?
A: This business district will have trade towers that extend beyond 60 floors. The project spread over 97 acres is taking off at Manchirevula village of Rajendranagar Mandal in Ranga Reddy district. The estimated cost of the project is Rs 5,000 crore. Twenty one applications were received from national and international developers. Ten bidders have been short-listed.

November 2006

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