THE SHINE IS BACK

Armed with business-friendly policies and all set to prune bureaucratic procedure, Naidu sets out to woo investors

Branding his state ‘Sunrise Andhra Pradesh’, chief minister N. Chandrababu Naidu is capitalising on a slew of opportunities. “Every state is blessed with resources and manpower. But it can progress only if the government is progressive, visionary and investor-friendly,” he says. Starting virtually from scratch—most industrial investments in the erstwhile Andhra Pradesh were around Hyderabad—on June 2, 2014, following the hiving off of Telangana, Naidu is pushing quick and hard for rapid growth through a mix of public and private investments.

Not a week passes without him interacting with potential investors across the country. He has travelled abroad and even attended the 2015 and 2016 World Economic Forum sessions hard-selling the state. On March 11 and 12, he was in London, to woo investors in the United Kingdom.

“There will be no hassles and you’ll be given all help. Clearances will be given in 21 days—you’ll never regret investing in the state,” is his sales pitch. “I aim to transform AP into a manufacturing and export hub, foster information technology hardware and software facilities,” says Naidu, emphasising the need to resuscitate manufacturing and enable job creation to reverse the prolonged economic slump. He is keen to tap the potential of port-led development, rich minerals, water and land availability, 24x7 power supply and a 974-km-long coastline, the longest for any state.

NIndustry has responded overwhelmingly to the bonhomie between AP and the Centre. Post the split, Naidu emphasises, AP has attracted Rs 4,67,577 crore worth of investments through the 331 MoUs signed so far with Indian and foreign investors, including those from the US, China and several Asian countries. The investments, if realised, may result in 9.58 lakh jobs. Most MoUs and announcements were made during the CII Partnership Summit the state hosted mid-January in Visakhapatnam. To ensure that these fructify, Naidu plans to get actiontaken reports on the status and progress of the investment proposals. This is vital for a state which has little to boast about, except for the industries in and around Visakhapatnam, the smaller port town of Kakinada and Sri City, the 7,500-acre multi-product vibrant Special Economic Zone near the state’s border with Tamil Nadu.

HamstrungbythelossofHyderabad to Telangana, the CM is pulling out all stops to welcome investments to the residuary AP. To this end, the state has announced a first-ever retail policy that includes goods and grocery business retail enterprises under the Essential Services Maintenance Act, to leverage on costs, particularly of labour, compared with China. He is also expecting additional incentives from the central government to draw more international investors. “If there is no industry, there will be no income,” he says. “So, we have asked for export manufacturing incentives for countries who want to invest in India.”

The results are beginning to show.

ANIL AMBANI GREETS ANDHRA PRADESH

The chief minister has a slew of ideas for his state. These are among the more

prominent ones... Commission the AP Fibre Grid along power distribution lines to make highspeed internet available everywhere in the state at an aordable cost by July 2016 With no significant urban area or industrial hub, AP registered a growth rate of 8.39 per cent in 2014-15—a remarkable achievement for a truncated state. This despite the state’s grim financial situation. Revenue deficit shot up to Rs 7,919 crore by mid-February as against the Rs 7,299 crore projected in the budget estimates for 2015-16. The fiscal deficit stood at Rs 19,092 crore against the estimated Rs 17,584 crore for the year. Revenue receipts so far are only Rs 83,826 crore against the projected Rs 1,12,852 crore.