To put it briefly

• As much as Rs 85,083 crore has been sanctioned out of it for the growth of industries across the country.
• The expenditure is expected to generate 33,966 new jobs across the economy.
• SIPB approved numerous high-value projects across ten high-weightage sectors.

The Minister for Finance and Industries Mr. N. Srikantha Reddy, in his briefing on the proposed policies for attracting investment in Andhra Pradesh in its first meeting of Andhra Pradesh State Investment Promotion Board (SIPB) with the Chief Minister Mr N. Chandrababu Naidu in chair, has accorded approval to an investment to the tune of Rs 85,083 crore. As the state expects an overall of 33,966 new job opportunities to be generated, this investment forms part of a strategic goal to address unemployment and drive economic development. The discoveries for the projected investments over the previous five months, and the status of Notes of Understanding (MOUs) signed between NTI and various companies formed the major highlight of the meeting.

Addressing the meeting, Chief Minister of Andhra Pradesh, Chandrababu Naidu pointed out the need to attract investors in the state at what they are already a stiff competition across the nation. He complained of the unfavourable policies that the previous administration put in place, stating that the latter not only did not contribute to the attraction of new investors but also pushed out current ones.

Emphasis on Business-Friendly Policies

The Chief Minister emphasised that the “terroristic policies” of the previous administration caused numerous businesses that had signed memorandums of understanding with the state to depart. Naidu encouraged the officials to put in a lot of effort and establish a business-friendly atmosphere while making sure that investors are respected and that collaboration is extended at all levels. “Investments result in employment, which is crucial for our youth’s future,” he stated.

Major Projects Approved by SIPB

The following SIPB meeting saw ten projects identified and approved, and ten were in the heavy industries and other high value. The best known of these is the ArcelorMittal-Nippon Steels project, which plans to set up an integrated steel plant newbie JV Nakkapalli at Bagaraiahpeta. First, by investing Rs.61,780 crore the company will generate around 21,000 employment. Other projects are, Kalyani Strategies System Limited for an investment of Rs 1,430 crore and anticipated employment of a total of 565; LG Electronics India Pvt Limited for an investment of Rs 5,001 crore and employment generation of a total of 1,495. Moreover, Azad India Mobility Limited’s outlay of Rs 1,046 crore plans to generate 2,381 direct employees and Phillips Carbon Black Limited’s outlay of Rs 3,798 crore plans to generate 200 direct employees only.

The Chief Minister therefore compared the policies of the earlier and current governments on corporate incentives. It is flooded in media reports that the TDP regime extended a subsidy of Rs 3,883 crore to industries and a mere Rs 1,961 crore as incentives during the previous regime. Adds Naidu, while it is important to support the companies, it has to be done while making sure that the welfare of those who supply the land for the development of such projects is not negated.

Land Acquisition Models and Skill Development Initiatives

Therefore, Naidu urged officials to evolve three diverse models of acquisition on land to avoid any sort of opacity and to choose the system of land pooling for the acquisition of land especially for the project of ArcelorMittal steel plant. Further, he suggested that those who agreed to donate land should undergo training through the skills developmental initiatives, and be offered employment opportunities in the new sectors. “While we are attracting such investments as big as the funds promised, what is equally important is the future of those who are providing the land,” said Naidu.

The Chief Minister also underlined that daily talking to investors and tracking the state of affairs is as important as the agreements. He appealed to the ministers and authorities for their collaboration in order to rid the path to implement these industrial projects of any possible hurdles and to ensure that these investments are anchored as soon as possible.

A number of senior officials presided over the meeting, including Neerab Kumar Prasad, Chief Secretary; while many important ministers graced the meeting for example; Deputy Chief Minister, Pawan Kalyan, and Minister for Information Technology, Nara Lokesh.