Thaindian News

Hyderabad, Jan 13 (IANS) Andhra Pradesh garnered investment proposals worth about Rs.6.50 lakh crore during the Partnership Summit 2012 which concluded here Friday, signalling that the state was a safe business destination after two dismal years wracked by political instability.

“I am sure all the doubts in the minds of investors with regard to the recent happenings have been cleared,” said Chief Minister N. Kiran Kumar Reddy.

He told reporters that the government signed memoranda of understanding with about 250 companies during the summit organised by the Confederation of Indian Industry (CII).

The investments came as a big boost for the state as they came after months of protests over the demand for a separate Telangana state and political wrangle within the ruling Congress party. The government managed to successfully organise the summit after nine years.

Reddy said the state received 243 proposals for investment of Rs.647,832 crore, which is expected to generate employment for 678,597 people.

The chief minister also announced that for every major project an escort officer would be appointed to ensure hassle free clearances.

“There are hassles because of land acquisition, pollution control and environmental clearances, but the companies and the government will overcome them.”

“I will be monitoring the progress of the projects every month,” he said.

On the last day of the summit, he handed over sanction letters to 23 companies, whose proposals for investment of Rs.71,859 crore were cleared last month.

The investment proposals include those involving Foreign Direct Investment (FDI) of about Rs.100,000 crore.

The investment also includes Rs.125,696 crore by central and state public sector undertakings. Among the major proposals by PSUs are expansion of the Visakhapatnam Steel Plant with Rs.42,500 crore investment by the Rashtriya Ispat Nigam Limited (RINL), 9,760 MW power projects by APGENCO at a cost of Rs.51,211 crore and Rs.5,000 crore RLNG terminal by GAIL.

Of total investment proposals, those that pertain to energy sector involve investments of Rs.295,508 crore, industrial sector Rs.223,064 crore, infrastructure Rs.33,300 crore, information technology Rs.22,400 crore and tourism Rs.1,700 crore.

Among the major private players, GVK Energy Ventures will invest Rs.40,000 crore in four projects to produce 6,400 MW.

GMR Holdings Private Limited will invest Rs.30,000 crore to develop a refinery-cum-petrochemicals complex at Kakinada and another Rs.3,000 crore for an integrated industrial township. BR Shetty and Group will set up a Rs.30,000 crore refinery at Visakhapatnam.

He said the state would launch a government to business portal in three months to enable businessmen to submit online their investment proposals.

Reddy said with the MoUs signed during the summit, the state would add 54,000 MW of power. The projects include coal, gas, hydro, wind and solar power. The public sector undertakings alone would be adding 9200 MW.

“It is only a matter of time before the state becomes power surplus,” he said, denying that there is any power shortage.

He pointed out that the existing power capacity is 15,700 MW while the peak demand is 13,200 MW. The usage is expected to go up to 22,200 MW by 2017.

The chief minister said arrangements were being made for medium-term procurement of 2000 MW. In private sector, projects to generate 15,000 MW were already under execution.