The Hindu Business Line : Investments in AP remain only on paper, says Assocham

Ms Swati Piramal, President of the Associated Chambers of Commerce and Industry of India (Assocham) unveils Assocham’s economic roadmap for India with a special emphasis on Andhra Pradesh in Hyderabad on Thursday. Also seen are (from left) Mr Sachine Dev Duggal, youth leader in computers and electronics, Mr D. S Rawat, Secretary-General, and Ms Upasna Kamineni, in-charge of health sector. —

Our Bureau

Hyderabad, Nov. 5

The investment take off has been very tardy in Andhra Pradesh, according to the Associated Chambers of Commerce and Industry (Assocham).

“The distribution of Government investments in the State as of March 2009 was about Rs 2.80 lakh crore. However, most investment projects are remaining only in the announcement stage for a long time,” Ms Swati Piramal, President, Assocham told newspersons after releasing Assocham’s road map for double digit growth in the State here on Thursday.

The issues of land acquisition and rehabilitation of the displaced should be given more attention. It was also essential to fix definite time line for achieving financial closure and operationlisation of the projects, she said.

“A special nodal agency with powers to settle the issues affecting the investment projects in the State needs to be set up,” she suggested.

Sector-wise investments

The State had attracted 7.5 per cent of total private and public investment proposals which stood at Rs 88,71,867 crore in 2008-09. In this, the manufacturing sector attracted a major share of 28 per cent followed by electricity (20.7 per cent), services (18.9 per cent), irrigation (15.2 per cent), real estate (12.1 per cent) and mining (5.2 per cent).

Food processing industry

For accelerating industrial growth in double digits, the State should focus on food processing industry and export of value added food items, she opined.

“The enabling framework for realising this objective should be put in place immediately,” Ms Piramal said.

A 350 km-long industrial corridor should be developed between Hyderabad and Machilipatnam. “This is an ideal place for developing food processing and pharmaceutical industries,” the Assocham President said.

In view of the difficulties for small and medium enterprises in accessing credit, the State- level development finance institutes/corporations should lend to SMEs actively, she added.

More Stories on : Industry Associations | Economy | Andhra Pradesh

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