Andhra gets Rs.5.57 lakh crore investment at Partnership Summit (Lead)

January 12th, 2012 - 11:42 pm ICT by IANS  

Hyderabad, Jan 12 (IANS) Andhra Pradesh has bagged projects involving investment of Rs.5.57 lakh crore, of which the MoUs for about Rs.1 lakh crore were signed Thursday on the first day of the CII Partnership Summit.

Various companies signed the Memorandums of Understandings (MoUs) with the state government for land and other incentives. Agreements for more than Rs.4 lakh crore are expected to be signed Friday.

Several MoUs were signed in the presence of Chief Minister Kiran Kumar Reddy and Major Industries Minister J. Geeta Reddy on the first day of the CII Partnership Summit 2012.

Geeta Reddy said 233 MoUs for total investment of Rs.5.57 lakh crore would be signed during the summit, which is concluding Friday. These agreements will create 4.33 lakh jobs.

A top official said MoUs of Rs.2 lakh crore investment in energy sector would be signed on the last day of the event.

GMR Holdings Pvt Ltd will set up a greenfield refinery-cum-petrochemicals complex and an integrated township at Kakinada at a cost of Rs.33,000 crore.

While the refinery will come up with an investment of Rs.30,000 crore, an integrated industrial township will see an additional investment of Rs.3,000 crore.

S.G. Kishore, COO, GMR, told reporters that the company is looking for a strategic partner for refinery. The company is expected to commercialise the plant in the next five years.

GMR’s MoU followed Oil and Natural Gas Corporation (ONGC) withdrawing from Kakinada greenfield petroleum refinery and petrochemicals project.

ONGC, which has signed an agreement with the state government in 2006, pulled out in 2008 after it found the project to be non-profitable venture.

The originally planned 7.5 million tonne per annum (mtpa) refinery was replanned with a capacity of 15 mtpa after the smaller refinery was found to be financially unviable.

The refinery cum-petrochemical complex will be a multi-product special economic zone and will also be part of Petroleum, Chemical and Petrochemical Investment Region (PCPIR), planned along 150 km Vishakapatnam-Kakinada corridor.

Under another MoU signed Thursday, B.R. Shetty and Group will set up a petroleum refinery in Visakhapatnam with an investment of Rs.30,000 crore. The project will come up in PCPIR and will provide employment to 3,000 people.

Gas Authority of India Limited (GAIL) also signed a MoU with the state government for setting up LNG terminal at a cost of Rs.5,000 crore. The company is yet to decide the location for the project.

The Yash Birla group signed three MoUs with the state government for setting up three projects with a total investment of Rs.13,000 crore.

The projects include Rs 10,000 crore polysilicon plant, Rs.2000 crore international-standard sports city and Rs.1,000 crore ayurvedic village.

GVK Power will set up 2,400 MW thermal power plant in coastal Andhra Pradesh with an investment of Rs.10,000 crore. The location for the project is yet to be decided.

G.V. Sanjay Reddy, vice chairman, GVK Power, told reporters that the coal for the project would be imported from Australia. The MoU for the project will be signed on Friday.

National Thermal Power Corporation (NTPC) will be signing MoU for 4,000 MW projects while Andhra Pradesh Generation Corporation (AP Genco) will enter into agreements for 9,760 MW.

About 2500 delegates from 43 countries are attending the 18th Partnership Summit organized by the Confederation of Indian Industry (CII).

Addressing the inaugural session, Chief Minister Kiran Kumar Reddy said the state achieved a growth rate of 9.07 percent for the five-year period 2004-09.

Inviting investors to invest liberally in the state, he assured them full support and co-operation from the government.

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