Hyderabad, Aug. 15 During 2007-2008, Andhra Pradesh has managed to attract investments next only to Gujarat and Maharashtra, maintaining good show in the previous fiscal.

Last fiscal (2006-2007), Andhra Pradesh was ranked second in the country with a total investment of Rs. 25,173 crore surpassing Maharashtra and Tamil Nadu, and only Gujarat was ranked higher in overall corporate investments, according to an RBI study.

The Chief Minister, Dr Y.S. Rajasekhara Reddy, who reviewed the flow of investments to the State, resolved to ensure that this investment trend continued.

According to a statement from the Chief Minister’s Office, this was possible due to pro-active support extended to the industries. Power tariff was slashed twice in the last three years. During 2007-2008, AP attracted 105 new projects securing third place while Gujarat and Maharashtra were ahead.

Quoting the latest study undertaken by the RBI on the outlook for corporate investments, Dr Reddy said that the State continued to attract fresh investments. However, during 1999-2004 even though memoranda of understanding was entered into by the State, most of the projects did not materialise.

The Chief Minister said that a recent study by the World Bank and IFC showed Hyderabad as the most business friendly Indian city.

Though AP lost out on the Volkswagen car manufacturing plant to Maharashtra, the State could attract MLR Motors to take up a car project in the Medak district.

Quoting some of the major projects, Dr Reddy said the Visahapatnam Steel Plant expansion would entail investment of Rs 9,000 crore, HPCL expansion (Rs12,000 crore) and ONGC move to set up a 15 million tonne refinery at Kakinada with (Rs 30,000 crore). In addition, Brahmani Steel had proposals to invest Rs. 20,000 crore.

Referring to some of the projects now under way, Dr Reddy said these include manufacturing unit of Adidas, textile unit of Brandix and fresh investments in existing cement plants to meet the increasing demand from the construction sector.

The Chief Minisiter said that the Fab City project was progressing as per schedule.

By projecting the State as ‘knowledge epicentre’, the State expects to attract Rs.1.5 lakh crore in investment and create about 5 lakh additional jobs.

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