AP sails into port-led growth voyage

Visakhapatnam: Recovering fast from the onslaught of Covid-19 pandemic, Andhra Pradesh is marching ahead in port-led development. Further, the State government is aiming to reduce logistics cost for the industry and business firms.

The AP government has already unveiled an action plan to develop new ports and fishing harbours. The Greenfield ports are coming up at Machilipatnam (35 MT) envisaging an investment of Rs2,600 crore, Ramayapatnam (25 MT) at Rs3,650 crore, which are close to rich hinterlands of undivided coastal districts Krishna, West Godavari, Guntur, Prakasam and Nellore. Moreover, the new ports in progress are near to land-locked Telangana and Chennai port with scope for traffic diversion. Another port is also developed at Bhavanapadu in Srikakulam district, which is close to Odisha and Chhattisgarh. Visakhapatnam-Kakinada Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) is mooted for development in an area of 603 sq km envisaging an investment of Rs3.43 lakh crore. In the region, the expansion of HPCL Visakh Refinery from 8.33 million tonne to 15 million tonne with an estimated investment of Rs20,928 crore is on verge of completion. A petro corridor at Kakinada is also being developed with an investment of Rs25,000 crore.

Another initiative to change the industrial landscape is the proposed beach corridor project, a six lane road from Bheemunipatnam to Bhogapuram. The Centre recently gave in-principle clearance to construction of an international airport by the State Government and GMR Group under PPP mode. Bhogapuram is located 40 km from Visakhapatnam.

The upcoming power plants, Special Economic Zones (SEZs), agricultural, tobacco and aqua products in addition to coal cargo are expected to provide business for Machilipatnam and Ramayapatnam ports. There is a proposal to set up a mega nuclear power plant at Kovvada in Srikakulam district by the Nuclear Power Corporation of India Limited (NPCIL) with an estimated investment of Rs1 lakh crore. The Centre recently gave its nod for six nuclear reactors each of 1,208 MW capacity.

Development of industrial corridors like Vizag-Chennai Industrial Corridor (VCIC) will contribute to increase in container traffic to the ports. The major commodities identified for handling of existing and upcoming ports will be coal, agro products, coal, granite, fertilizer, edible oil, cotton, tobacco, seafood and project cargo.

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal recently informed the Parliament that they have identified as many as 119 projects under Sagarmala envisaging an investment of Rs1 lakh crore in Andhra Pradesh.

Officials in the State Industries Department say of the total 91 large & mega units, about 18 units have been grounded in the Coastal Andhra region since June 2019 with committed investments of Rs2,971.5 crore and employment of 11,181. Of the 22,844 MSMEs, 13,134 units are grounded in Coastal Andhra with investments worth Rs3,037.3 crore and employment of 78,905. Projects worth Rs34,532 crore with jobs for 72,319 are at various stages of implementation since June 2019.

AP has initiated measures for developing secondary food processing units with modern infrastructure meeting global standards in areas of food processing, horticulture, dairy, agriculture and aqua production. The product-specific processing units, where related raw material is available in surplus, will be established and owned by the government through SPVs.

The state government has developed the Mega Food Park at Mallavalli in Bapulapadu mandal in undivided Krishna district under the Mega Food Park Scheme of Ministry of Food Processing Industries for establishment of food processing units to provide a mechanism to link agricultural production to the market by bringing together farmers, food processors and retailers. The Mega Food Park is established over an extent of 60 acre with a project cost of Rs100 crore,

supported by an efficient supply chain, which would include Collection Centers (CCs), Cold Chain Infrastructure (CCI) and a Core Processing Centre (CPC) comprising facilities such as 6 MT/hour of aseptic pulp and concentration line, ripening chamber with 120 MT/ chamber, 3000 MT Cold Storage Unit, 4,000 MT Dry Warehouse and other allied facilities.

In addition to the Mega Food Park, APIIC is also developing a State Food Park adjacent to the Mega Food Park spread over an extent of 50 acres, so that more units can take advantage of the CPC facility. Model Industrial Park, Mallavalli, located 43 kms from Vijayawada, is emerging as a key manufacturing destination, over an extent of 1200 acres.

The State is developing nine fishing harbors and four fish landing centres with world-class facilities suited to meet the present and future needs of trades, and socio-economic development of the poor fishermen community. The harbours will come up in two phases with the total cost of Rs3,820 cr with potential to generate employment to 61,500 fishermen.

As part of Centre's National Manufacturing Policy, 2011, AP is developing NIMZ as an integrated industrial townships with state-of-the art infrastructure and land use on the basis of zoning, clean and energy efficient technology, necessary social infrastructure, and skill development facilities in an area of 14,390 acres in Prakasam. APIIC has incorporated a project specific SPV for NIMZ, which is a wholly-owned subsidiary of APIIC under the name of 'Prakasam National Manufacturing Zone Limited.'

Another welcome development is the Donakonda Industrial Hub in over 800 acres for agro & food processing, engineering goods, non-metallic minerals, wood processing, defence & aerospace, with a logistics hub. The park is very close to Ramayapatnam and Krishnapatnam ports to give ease of access to export-focused industries.

Under the Chennai-Bengaluru Industrial Corridor (CBIC), Nellore and Krishnapatnam nodes are expected to accelerate economic activity in the region. CBIC connects multiple industrial regions right from Bengaluru to Chennai.

KRIS City is being implemented with financial assistance from NICDIT at Krishnapatnam spread over an extent of 12,000 acre. Under the first phase, approvals have been obtained for a master plan for development in 2,500 acre at an estimated cost of Rs1,500 crore. The project is expected to attract an investment of Rs37,500 crore. The Centre has already released Rs2,139 crore for the first phase works of Krishnapatnam node, while the State gave exemption for stamp duty and registration charges.