The residuary Andhra Pradesh State has attracted a total outstanding investments worth about Rs 8.2 lakh crore as on March 31, 2014. While the power sector attracted 28 per cent, manufacturing (other than food processing) got 18 per cent, infrastructure (17 per cent) and refinery (12 per cent).

According to a study by the ASSOCHAM, mining (8 per cent), irrigation ( 7 per cent), construction and real estate (4 per cent) and information technology and electronics ( 2 per cent) are other sectors with significant share.

In terms of ownership, private sector (both Indian and foreign) accounts for almost 65 per cent of the total investments attracted, with domestic private sector garnering lion’s share of about 62 per cent. The Central Government accounts for over 21 per cent share while 13 per cent is the share of State.

“Andhra Pradesh paints a grim picture vis-à-vis implementation of investment projects as over 49 per cent projects have remained non-starter as of these about 28.5 per cent projects are in announcement stage while implementation of about seven per cent projects has been stalled and there is no information about projects comprising 13.5 per cent share in total outstanding investments,” the Chambers pointed out.

The major reasons for tardy implementation are land acquisition delays, fund constraints, delay in environmental and other clearances along with law and order problems, the Assocham noted.

The Assocham has suggested a wide range of strategies for different sectors to transform APs economy in the strategic study paper. These include agriculture reforms, promoting the cultivation of horticulture, floriculture, medicinal herbs and plants; transforming dairy farmers into entrepreneurs to make value addition; setting up solar parks and wind turbine generators; revival of inland waterways; providing long-term finance to marginal, small and medium enterprises (MSMEs).

A world-class hub airport at Vijayawada with required convenience, connectivity and network needs to be developed. An inland container depot with all logistics facilities needs to be set up near Hyderabad and linked to Machilipatnam port (to be modernised) with a ten-lane road network.

AP should set up the Maritime Board as a nodal agency to boost each of the identified natural ports alongside the state’s 1,000 kilometers long coastline and entrust this job to the private sector, thereby taking a cue from Gujarat on the Western Coast which has been successful in such a venture.

Food processing, IT and ITeS, health tourism and education based clusters on both sides of the proposed Vizag-Chennai Industrial Corridor. In addition, employment generation through acceleration of entrepreneurship and business creation to tap rural markets a mission with the aim to facilitating 200 business and convenience hubs that provide services and facilities to both rural industries and households is required, the Assocham study noted.

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