AP poised for rapid industrial growth
Balancing welfare and development, the YS Jagan Mohan government has taken a proactive role in promoting industries and the state has attracted numerous big-ticket companies in core sectors that would give a fillip to the economy.
The Diplomatic Outreach Programme, followed by the US visit by Chief Minister, inflow of delegates from Eastern, European and American countries evincing keen interest to invest in infrastructure development, telecom, electric vehicles, steel, electronics, food processing and other sectors. The long coastline, abundant resources are the strong points, along with the transparency and corruption free governance.
In the first six months of YS Jagan Mohan Reddy governance, Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has allotted a total of 1057.75 acres of land to 1,010 companies and many more companies are heading to invest in the state. This track record was in just six months of the new government in the state. The big ticket companies include, JSW Steels, Panasonic, and POSCO which have the potential to provide employment to over 20,000 people. Steel, footwear and tyre sector occupies the major proportion in the investment. South Korean steel major POSCO would invest five billion dollars and employ 6,000 people, Tsingshan Holdings (China) and Intelligent SEZ Development Ltd. with an investment of two billion dollars and Rs 700 crore respectively would employ 10,000 people in each company. Panasonic Electronics with an investment of Rs 1000 crore would employ 3,000 people.
The State Government has pointed out the promotion of MSMEs and for the same, it has introduced the ‘YSR Navodayam’ scheme to develop MSMEs that were in deprived economical condition. This scheme with Rs 400 crore budget facilitates One Time Restructuring of MSME loans.
With the new investments coming up, the people of the state would witness huge employment opportunities. Adding to this, the Andhra Pradesh Employment of Local Candidates in the Industries/Factories Bill, 2019 that mandates all the existing and upcoming industries to allocate 75 per cent of the jobs to local candidates boosted up the youth.
In the first three months of the YSRCP rule, the government has organised the Diplomatic Outreach Programme which was attended by delegates of 34 countries including Ambassadors, High Commissioners and Consul Generals. The participants have expressed keen interest in investing in Tourism, Health and Energy sectors in the state.
Since June 2019, over 19 projects with an investment of Rs 15,648 crore have gone into production in the state. The projects have provided employment to over 25,967. Motherson (KIML) Automobile manufacturing company with an investment of Rs 200 crore would employ 3,000 people while South Korean Company KIA Motors has rolled out its first indigenous model.
Another eight units with and investment of Rs 7,916 crore which will provide employment to 4,086 people are in the trail production stage. Anrak Aluminium Ltd. is in the trail production stage with an investment of Rs 6,700 crore employing 2,300 people.
About eight other units have moved to the Machinery erection stage with an investment of Rs 8,663 crore and employment of 14,205. Hero MotoCorp Ltd. and Apollo Tyres Limited with an investment of Rs 1,600 crore and Rs 4,125 crore would employ 2,500 and 1,400 people respectively. There are eight projects with Rs 2,422 crore investment are in the commencement of the civil works stage. The projects will provide employment to 10,457 workers.
Attracting foreign investments as the major priority, the government at the same time is encouraging the locals to be part of the investments to develop the local belt in industrialisation.
Political stability, access to Southeast Asian markets, road and rail connectivity, large land bank and long coastline besides transparent governance contribute to make Andhra Pradesh as the investment destination.