We Will Try To Achieve An MoU Strike Rate Of 80% This Year, Says Andhra Pradesh's Industry Minister 

The Global Investor Summit of Andhra Pradesh, titled 'Advantage Andhra Pradesh' has just concluded in Vishakhapatnam with much fanfare. The two-day event not only witnessed the presence of industry stalwarts but also attracted investment proposals worth Rs 13 lakh crore. The man behind the show, Gudivada Amarnath, Minister of Industries, Infrastructure, Investment and Commerce, Government of Andhra Pradesh, on the sidelines of the summit spoke to Outlook Business exclusively and gave a picture beyond the numbers. Referring to the investment proposals, he said that the state government will try to have a MoU strike rate of 80 per cent. Edited excerpts:

Signing MoUs is one thing and getting it grounded is another. What is the track record of your state government on this and what is your target this year? 

We have a different track record. In the last 3.5 years, we have had a lot of MoUs but now, the Chief Minister’s office is at different stages. Our average realisation rate in the past stood at 89 per cent. So probably, if it is a big number this time, we will try to have a realisation rate of 80 per cent this year. Also, our chief minister has just constituted a committee for MoUs. So, now we have chief secretary as a chair of the committee, special chief secretary industries, and director industries in the committee as well. We have a review meeting every week; so, going forward, we will make it happen. 

Across states, we have seen that land acquisition for the investors has been a big problem, how is Andhra government is tackling this issue? 

We have 48,000 acre of industrial land readily available and we are the only state with three industrial corridors- Visakhapatnam - Chennai Industrial Corridor (VCIC), Chennai - Bangalore Industrial Corridor (CBIC), and Hyderabad – Bangalore Industrial Corridor (HBIC). All these have the best-in-class infrastructure in industrial parks and in various locations. Now, this is undisputed land, and we know industry wants undisputed land, uninterrupted power and robust infrastructure, roads, ports, etc. So, we have a single window system to get 96 clearances of 23 departments. Please note that not only in India, but across the world you have to go to multiple offices for getting the aforementioned clearances. 

However, in Andhra Pradesh, any investor gets clearances within 21 days of applying. On an average, we are giving all clearances within 12 days, except the land. As far as land is concerned, up to 5 acres, the land is allotted by the district collector, from 5 to 50 acres, Andhra Pradesh Industrial Infrastructure Corporation allots the land. We also have a meeting every month. When it is above 50 acres, it has to be approved by the cabinet. 

Andhra Pradesh’s debt has risen exponentially over the years. We know the state is cash-strapped;  so, what is the objective of organising a grand summit like this in financially difficult times? 

The two major objectives of organizing the summit like this are to strengthen the economy, and to create jobs. Also, these kinds of investments will mobilise financial resources for the state exchequer. 

With the net zero target, we know there is thrust on doing responsible business. What is your take on ESG? 

I think doing responsible business is the need of the hour. Our major investments are in the renewable sector; we have 44 GW capacity of wind power, 38 GW capacity of solar, pump storage and that happens to be one of the biggest. We also have one of the biggest integrated solar, wind and hydropower pump storage project of almost 5.2 GW coming up in Kurnool district in the next one year. At Davos, our chief minister Jagan Mohan Reddy ensured that Andhra Pradesh is and will be the leading destination of the country for these kinds of achievements.  

The state has been thrusting on its natural advantages. What about the incentives because incentives also play a key role in driving investments? 

Investors never come for the sake of incentives; incentives are like a support to the investors. We are providing incentives as per our policy and we have different categories such as MSMEs. Secondly, on the basis of employment opportunities generated by the companies, we will be having tailor-made incentives for the investors.