Andhra Pradesh is fast emerging as the most preferred destination for investment among other states. Centre for Monitoring Indian Economy (CMIE ) in a latest report said the state accounts for about 7% of all new investments in the country and ranks fourth in terms of attracting FDI. And if one were to look at the investment flow into the state, they would notice the huge line of commitments made by several international and domestic players across varied industries.
Investment to the tune of over Rs 12,000 crore has been committed for the state in the last three months. For instance, diversified business conglomerate, Tata?s has announced an investment of Rs 1,000 crore for setting up an aerospace and defence products manufacturing facility in Hyderabad, which would create over 4,000 jobs; the NTPC-Bhel joint venture has zeroed in on the state to establish Rs 6,000-crore power equipment manufacturing base in Chittoor district; SBQ Steels is planning to expand its integrated steel project with an total projected investment of Rs 2,250 crore and Rockon Construction of Howthorne Group is looking at making a Rs 100 crore investment within the state.
This is not all, foreign players in the bio-pharma and life sciences space are also in the process of setting foot print in AP. For instance, Switzerland-based Lonza has been drawn by the Genome Valley project developed by the state government on PPP model and has given an undertaking to invest $150 million (Rs 750 crore approximately) to set up their research and development and bio-pharmaceutical manufacturing facility.
Similarly, the US-based life science infrastructure giant, Alexandria has committed to pump in over Rs 1,000 crore for setting up their facility within the Genome Valley project.
The tag that AP is a hub for pharma and biotech companies because of the vast number of research institutes has worked well for the state as it has managed to draw several international and domestic companies to set up their base. But, the government, to avoid a lopsided growth and to get projected as a dynamic state worked on the development of infrastructure suitable to all industries.
Infact, a latest report of RBI on state finances for the year 2008-09, states that AP stands first in the country in respect of its allocation on Plan expenditure, development expenditure, social sector expenditure and capital expenditure. Both Andhra Pradesh and West Bengal have the same population and same GDP of Rs 3.50 lakh crore, but the revenues of AP stands at Rs 62,000 crore as against West Bengal revenues of Rs 35,000 crore.
The initiative of the government to promote the state has borne fruit already. Recently, an Israeli diary company-Elbiet has agreed to set up one of the world?s largest diary units in the state with an initial investment of Rs 100 crore. The company has proposed a dairy with 10,000 cows to start with and the project is coming up at Pulivendula-chief minister YS Rajasekhara Reddy?s constituency.
IMAC, another global giant has decided to pump in $100 million (about Rs 500 crore) in a livestock biotech park and SEZ. It would focus on zoonotic diseases such as H1N1(swine) flu and other life stock areas. Indian Immunologicals Ltd and Suguna Group are the other domestic players who have announced their plans to invest in the state.
