Andhra Pradesh does a Gujarat with Rs6.5 lakh crore MoUs

The Andhra Pradesh government signed 243 memoranda of understanding (MoUs) promising a total investment of about Rs6.48 lakh crore in the state during the three-day CII Partnership Summit 2012, which concluded on Friday.

Though a toned down version of similar partnership events —- the Vibrant Gujarat 2011, for example, had generated about Rs20.83 lakh crore investment proposals for Gujarat —- the conversion rate of the MoUs signed at this event would be much higher, claim industry officials.

“We are expecting a conversion rate of about 50%, implying that at least half of the promised investment would actually take shape in due course,” B V R Mohan Reddy, former chairman of CII Southern Region and CMD of Infotech Enterprises, said.

There was some criticism that the state government had included some older proposals, which would have anyway come to the state, to boost the numbers.

Chief minister N Kiran Kumar Reddy, however, said proposals to the extent of Rs75,000 crore were already in process and were included in the list of investment proposals since the approvals for those projects were given on the occasion of the summit.

“We are going to appoint escort officers for each of the proposals and pursue them aggressively. I will be personally monitoring the progress of these proposals once in every month,” said Reddy.

Public sector units have pitched in with proposals totalling Rs125,696 crore, led by Rashtriya Ispat Nigam, which plans to invest Rs42,500 crore for expanding capacities at the Visakhapatnam Steel Plant.

Among others, Bharat Dynamics has committed to invest about Rs2,000 crore for setting up four units in the state, while Electronics Corporation of India has signed for an investment of Rs1,000 crore.

Midhani, GAIL, Kribhco, Singareni Collieries, Power Grid and two of AP’s power utilities have signed MoUs for bringing in the rest of the public sector investment.

The industrial sector, including manufacturing and services, has pledged to invest Rs208,064.94 crore, while the power sector alone brought in proposals worth Rs2,95,508 crore. IT projects worth Rs2,402.73 crore also figure in the list proposals.

Infrastructure project proposals total Rs33,300 crore, while tourism has brought in Rs1,700 crore.

Meanwhile, chief minister Reddy has said that Andhra Pradesh has been awarded the country’s first government to business (G2B) project by the Centre. Under this, a portal would be developed in the next three months for the businesses to file applications for various clearances.

“The portal would help in filing all the applications within the state government’s purview. However, some of the central issues like environment clearances will have to be sought separately. This portal would be a one-stop shop for investors,” he said.