AP an ideal investment destination for investors: Gudivada Amarnath

Andhra Pradesh Government, which is oozing out confidence on getting tremendous response from investors from India and abroad at the first edition of Global Investors' Summit (GIS)-2023, believes that it is totally different from the Partnership Summits organised during the erstwhile TDP regime. After a thorough check on credentials they are signing MoU with those who are serious about investing in the State. The government has set a target of Rs2 lakh crore worth MoUs with majority of project proposals coming in the renewable energy sector.

"We have adopted a two-pronged strategy to boost the economy of AP after overcoming the challenges posed by the pandemic. We will be unveiling the New Industrial Policy effective from April 1, 2023, for a period of five years to ensure stability and continuity so as to win the confidence of the investors. Our thrust to seeking investments in various sectors is to improve the economy and provide employment opportunities to the youth. The new policy lays emphasis on fast-track clearance of projects so as to ensure their early grounding," Minister for Industries, Commerce and IT Gudivada Amarnath told Bizz Buzz in an exclusive interview as a prelude to GIS.

The Minister said the new policy will be most competitive and they are keen to reduce clearances by 23 departments under the single window policy in less than 21 days, adding on average they are now giving clearances within 12 days to most of the project proponents as part of improving Ease of Doing Business. He also hinted at including land allotment in the list of single window clearances to reduce the gestation period for an industry to get grounded.

Our government is keen on promoting IT with a robust startup ecosystem as we want innovation culture to be spread by the youngsters. At the World Economic Forum, Davos we spoke about encouraging startups to transform into unicorn companies by hand-holding them. The Chief Minister has already decided to develop a three lakh sqft of startup facility at Rushikonda of Visakhapatnam. An iconic tower will be built with a very good design. We will be inviting expressions of interest for the project after the GIS

In the past three and half years, we have attracted an investment to the tune of Rs1.90 lakh crore out of which projects worth Rs75,000 crore have been grounded-which itself is a record of sorts. The visionary leadership of Chief Minister YS Jagan Mohan Reddy is able to create an ideal investment climate in the State as many are coming forward to invest in various fields. We have attracted most of our investment in renewable energy. Our focus is also on sectors like green energy, port-led development, MSME and agriculture where a lot of employment potential is there

Tell us about the total private investments that Andhra Pradesh has received after YSRCP formed the government. Which sectors have attracted more investments?

In the past three-and-a-half years, we have attracted an investment to the tune of Rs1.90 lakh crore out of which projects worth Rs75,000 crore have been grounded-which itself is a record of sorts. The visionary leadership of Chief Minister YS Jagan Mohan Reddy is able to create an ideal investment climate in the State as many are coming forward to invest in various fields. We have attracted most of our investment in renewable energy. Our focus is also on sectors like green energy, port-led development, MSME and agriculture where a lot of employment potential is there.

We have a 974-km long coastline, the second largest after Gujarat with the largest usable coastline anywhere in India. With six operational ports and airports and very good connectivity and availability of skilled manpower, the State is all set to emerge as a favourite destination for investors. The State's target is to attract 120GW renewable power projects by 2025 after attracting investments to produce wind, solar and pumped hydro storage at 29 specified locations.

When will Andhra Pradesh announce its New Industrial Policy?

It is almost ready but due to a model code of conduct for MLC elections, it has not been released. We will unveil it at the earliest, as the present policy is valid for three years, which will lapse after March 31, 2023.

Some industrialists say the existing industrial policy is not attractive as it offers land on lease basis. Will the AP government offer land for outright sale in the New Industrial Policy?

Let me make it very clear. This government is against giving land on an outright basis as we attach a lot of conditions like providing jobs and grounding the project in a specified period. If we allow land on outright purchase basis, we cannot insist on fulfilling the conditions. If they don't fulfil the conditions, the government may scrap the land lease.

Startup ecosystem has evolved and India has a large number of unicorns now. What kind of efforts are being made to attract startups and investors into AP?

Our government is keen on promoting IT with a robust startup ecosystem as we want innovation culture to be spread by the youngsters. At the World Economic Forum, Davos we spoke about encouraging startups to transform into unicorn companies by hand-holding them. The Chief Minister has already decided to develop a three lakh sqft of startup facility at Rushikonda of Visakhapatnam. An iconic tower will be built with a very good design. We will be inviting expressions of interest for the project after the GIS.

Why is the AP government organising the GIS just one year before the elections?

You know we conducted a diplomats' conclave at Vijayawada in August, 2019. At that time, we wanted to hold an investors' conference in March or April, 2020. The Covid-19-induced restrictions came our way till early this year due to three waves of the pandemic. Still we have been able to take a slew of initiatives to secure No. 1 ranking in EDB besides putting up a good show in exports.

Previous TDP government organised Partnership Summits. How different will the GIS be?

They had signed MoUs worth Rs18 lakh crore, but in practice the realisation rate was just 10 per cent. Whereas we have achieved 89 per cent realisation rate from the MoUs signed by us. This is the difference between a government which indulges in cheap gimmicks to gain publicity and a government that is led by Jagan Mohan Reddy which means business. Early bird incentives including allotment of land under a single window is also being considered to bring more investments.

How is the response to the GIS? Do you have any investment targets for it?

The 'Advantage Andhra Pradesh-Where Abundance Meets' Campaign has evoked a big response at roadshows conducted in Hyderabad, Mumbai, Bengaluru, Chennai and the curtain-raiser diplomats' conclave followed by meetings with ASSOCHAM, FICCI and CII in New Delhi. Our target is Rs 2 lakh crore but going by response, this will certainly go up.

Which sectors are you focusing on at the summit?

We have identified 14 sectors which include renewable energy, IT and electronics, MSME, aerospace and defence, agriculture and food processing, electric vehicles and automobile components, port-led development, tourism, pharma and petrochemicals.

How many delegates are you expecting? Are any big names and billionaire investors coming to the summit?

With two days to go, 10,000 have already registered to participate. We are receiving delegates from 22 to 25 countries including 14 Ambassadors and eight to 10 second-in-command foreign dignitaries and a big delegation from European Union Chambers of Commerce. We have confirmation from several prominent industrialists including Mukesh Ambani, Kumaramngalam Birla, Sanjiv Bajaj, Naveen and Sajjan Jindal, Karan Adani and Krishna Ella.

Is AP taking any steps to position Visakhapatnam, the proposed executive capital, as an attractive investment destination?

Visakhapatnam is a vibrant city with a very good industrial base, two ports, IT and pharma units, cosmopolitan culture and plenty of engineering and management institutes to provide industry-ready workforce. A big player like Infosys is launching its operations in May. The city is certainly on top of our agenda.

Where do you see AP heading to in the next 10 years when it comes to industrial and IT segments?

Our State has huge potential to grow. Our government has already laid strong foundations. We are very ambitious about the future ahead despite attempts by the Opposition to throw mud at us due to political jealousy.