Visakhapatnam: In March 2023, then CM Jagan Mohan Reddy held a two-day Global Investors’ Summit at Visakhapatnam and in conclusion announced the receipt of 340 proposals for industrial investments in Andhra Pradesh worth Rs 13 lakh crore.
Now, present Andhra Pradesh CM Chandrababu Naidu has conducted a two-day summit in partnership with CII, at the same Andhra University Engineering College grounds, hosting various sessions—some country-specific like Japan, Singapore—conferences, exhibitions and a grand display of Naidu’s ambitions for data centres, quantum computing, AI etc.
Calling the summit a “super-hit”, Naidu on the concluding day revealed that the state had attracted investment plans worth Rs 13.25 lakh crore, with 613 MoUs signed over the two days with various companies. The CM said the investments will create over 16 lakh employment opportunities for the youth.
The energy sector alone attracted investment proposals worth Rs 5.3 lakh crore, with marquee investors like ABC Cleantech (Evren) & Axis Energy proposing Rs 1.1 lakh crore investment in renewable energy projects. Ecoren Energy committed Rs 38,250 crore, as per the official data.
When similarities to the Jagan event and investment figures was pointed out by the ThePrint, Andhra Pradesh officials said that this time things were going to be done differently, and proactively, and proposals would be taken to fruition.
“Companies driven by speed choose AP,” declared the billboards put up across the port city—AP’s largest and most industrialised—to welcome corporate leaders and delegates, as CM Naidu kept repeating the state’s new slogan of “Speed of Doing Business” during the summit held 14-15 November.
In a major initiative to secure investors’ confidence, Naidu, during the summit, announced the setting up of an escrow account into which the government would deposit the amount corresponding to the incentives promised to industries as they advance in setting up their units in Andhra Pradesh.
“Once you come forward to invest in AP, an escrow account will be created automatically, and funds will be released via the bank in real time. There will be no need to meet and pursue anyone for incentives. If needed, we will also give sovereign guarantee,” Naidu said in the inaugural session to a cheerful response from the audience.
The Naidu government has offered various incentives to investors under its new policies, unveiled last October, for industrial development, integrated clean energy, MSME and entrepreneur development, food processing, electronics manufacturing, and private industrial parks—which together aim to create over 25 lakh jobs by attracting over Rs 41 lakh crore investment in five years i.e., 2024-29.
The incentives proposed include a capital subsidy of 30 percent of fixed capital investment for early bird projects. Companies promising higher employment will be offered up to 10 percent higher incentives.
In a first in the country, companies reducing carbon footprint, i.e., pollution/waste minimisation and power, water efficiency initiatives—will be incentivised with an additional de-carb subsidy of up to 6 percent FCI. The incentive structure is kept simple without any linkages to market risks.
The incentives under the AP Electronics Manufacturing Policy 4.0 (2024-29) include 100 percent reimbursement of net SGST for five years, power subsidy of Rs 1 per unit for five years, 100 percent reimbursement on stamp duty charges, recruitment assistance of Rs 4,000 per month for male and Rs 6,000 per month for female (first time employees) for six months, after one year of operations.
Speaking to ThePrint, N. Yuvaraj, secretary, industries department, AP, said that Whatsapp groups will be created for each investment plan of Rs 50 crore and above, with the company representative, relevant department secretary, minister and collector of the district where the unit is coming up as members, in order to promptly discuss and resolve any issues.
“We already have such interactive Whatsapp groups for BPCL, LG, Lulu, etc.—companies setting up units in different parts of the state,” said Yuvaraj.
When asked about the status of proposals and plans received during the summit Jagan had held two and a half years ago, IT, electronics and HRD minister Nara Lokesh said that his government is diligently pursing those agreements too.
“Governments operate in continuity despite the time-to-time political changes. We are committed to growth of the state regardless of who initiated any project or roped in a firm,” Lokesh told ThePrint.
Officials show figures to demonstrate the TDP-led government’s “ultra-activeness” in promoting industrial growth in the state.
“Since June 2024, AP has received over 50 projects with an investment plan of over Rs 1,000 crore. While the State Investment Promotion Board, chaired by CM Naidu, met 12 times in 17 months, such meetings were held 13 times in five years from 2019 to 2024,” said a senior official.
“We were able to receive a committed investment of Rs 8.4 lakh crore since June 2024, while the figure for 2019-24 is Rs 2.4 lakh crore.”
CM Naidu said the summit was not confined to attracting investments but was organised in a hybrid model with knowledge sharing sessions and discussions on the global industrial scenario.
“Over 450 students participated as we intend to develop them as prospective entrepreneurs,” said the CM, while adding that the Ratan Tata Innovation Hub is serving as a platform for prospective entrepreneurs.
MSME parks will be set up in all 175 constituencies to promote entrepreneurs, while common infrastructure and marketing facilities will be provided to promote industries.
Citing the Sri City, an industrial cluster near Chennai, the chief minister said that 240 units were operating there with participation by 31 countries, a number expected to increase to 50.
Though the summits under Naidu are being held each time at Vizag, in north Andhra, the CM says his is plan is decentralisation of industries with Visakhapatnam, Amaravati and Tirupati as the state’s three economic regions.
Stating that all the investment proposals this time are serious, and will be materialised in three years, Naidu said a group of ministers under Lokesh will follow up the proposals continuously until the projects become a reality, while the state creates all the necessary infrastructure.
“The confidence of investors was lost because of the previous government’s reckless policies. We are now building confidence with measures like escrow account to win back their trust,” said the CM.
(Edited by Viny Mishra)