I am delighted to participate in the National Executive
Committee meeting of Federation of Indian Chambers of Commerce and Industry (FICCI).
I am happy that FICCI, being the oldest and largest apex business organization
has emerged as the voice of India's business and industry. It has been
recognized as a major source for inputs for policy interventions to Government
and other financial institutions. I appreciate FICCI for conducting studies on
various potential sectors from time to time. Such studies are helping for the
overall economic growth of the country.
While seeking support of the FICCI for promotion of trade
and investment in the state, I am happy to say that our state has achieved an
average annual economic growth rate of 9% for the 5 years period from 2004-09.
Andhra Pradesh is emerging as one of the fast growing economic states in the
The state has the second longest coastline of 970 Kms
backed by an extremely well developed hinterland. It has a very well diversified
manufacturing base, sound infrastructure and local entrepreneurship.
Realizing the natural gas potential in the Krishna Godavari
basin, our Government promoted major industrial corridor between Visakhapatnam
and Kakinada with major projects like AP Special Economic Zone, Jawaharlal Nehru
Pharma City, Brandix Apparel City, expansion project of Visakhapatnam Steel
Plant, Gangavaram port. Petroleum Chemical Petrochemical Investment Region (PCPIR)
in an area of 604 sq. Kms is being promoted to attract large number of
investments both domestic and Foreign Direct Investments in the Chemical &
In the south-east of the state, SPS Nellore-Chittoor region
was promoted as a major industrial corridor due to large number of investments
by the major Industrial players like Apache Footwear, Sri City SEZ,
Krishnapatnam Port etc. I am happy to inform that on 1st September, 2010,
Hon’ble Prime Minister has laid the foundation stone for Rs. 6,000 crore
BHEL-NTPC public sector investment project at Mannavaram near Tirupati and also
laid foundation stone for upgradation of Tirupati airport into International
Hyderabad is known as the bulk drug capital of India. Due
to presence of large number of IT/ITES global players, Biotech majors in ICICI
Knowledge Park, Biotech park, textile industries in Textile Park, large number
of public sector undertakings around Hyderabad Metro City, our Government have
promoted Hyderabad International Airport has been promoted under Public Private
Partnership have been promoted. The other major infrastructure projects like
Outer Ring Road, Hyderabad Metro Rail are under implementation. This region is
mainly focused on knowledge based industries like Biotech, IT/ITES, Electronic,
aerospace and Pharma.
APIIC is promoting aerospace and precision engineering
industries SEZ in Ranga Reddy district where Tata Advanced Systems Limited (TASL)
and US based Sikorsky Aircraft Corporation together are creating a global bench
mark in aerospace by setting up helicopter cabins manufacturing project with an
investment of Rs 1,000 crores.
Infrastructure development i.e., promotion of ports and
airports is the priority of Our Government. AP has entered MoUs with Airports
Authority of India for upgradation of Non-Metro Airports at Vijayawada,
Rajahmundry, Kadapa and Warangal. Our Government have promoted the new sea ports
at Krishnapatnam and Gangavaram under Public Private Partnership. Machilipatnam
and Vodarevu ports are under development through PPP.
The state is having huge natural gas potential in the
Krishna-Godavari basin. I am happy to inform that Petroleum & Natural Gas
Regulatory Board has entrusted for setting up of natural gas pipeline network in
the state which would help in attracting investments in gas based industries
also for supply of gas to domestic customers and transport sector.
The State Government recently announced Industrial
Investment Promotion Policy 2010-15 with a large number of fiscal and non-fiscal
incentives for setting up new industries in the state. The state is offering the
lowest power charges in the country among the industrially developed states, in
addition to this, power concession of Rs 0.75 Ps per unit for 5 years is also
extended, if it is food processing and textile industries, the power concession
is Rs 1.00 per unit. The thrust of this policy is to promote MSME sector. VAT
concessions 100% for Micro, 50% for Small and 25% for Medium and Large
industries are extended for a period of 5 years. Investment of Rs 250 crores and
above will be considered for extending Special Package of incentives under Mega
I appeal to
FICCI to extend their full support in transforming the Andhra Pradesh – the best
investment destination in the country. I thank President, FICCI and his team for
conducting this National Executive Committee in Hyderabad successfully.