January 20, 2014 2:47:02 am
The uncertain political situation in Andhra Pradesh has not prevented corporates from making investments. The State Investment Promotion Board (SIPB) chaired by Chief Minister N Krian Kumar Reddy approved six major investment proposals totalling Rs 6,500 crore with an employment potential of 18,500.
These proposals, which were approved during the weekend include those of PepsiCo, Cadbury, Colgate, Johnson & Johnson, Gerdau Steels and ITC, looking to expand operations in the state. Since 2011, industrial investments to the tune of over Rs 2 lakh crore were cleared by the SIPB, which can employ over 4 lakh, are in various stages of implementation, Reddy said. PepsiCo will build the largest beverage bottling plant in the country with an investment of Rs 1,200 crore.
Pharmaceuticals and FMCG leader Johnson & Johnson, has chosen to locate their facility in Mahabubnagar district of Telangana region. Cadbury, the world’s second largest and the country’s largest confectionary company is setting up their facility in Sri City near Chittoor with an investment of Rs 2,500 crore.
Among the projects approved by SIPB since 2011, 42 mega projects have commenced operations with an investment of Rs 27,984 crore and created employment for over 70,000 persons. Another 52 are under active implementation with an investment of Rs 92,437 crore providing employment for 1.65 lakh. There are 36 projects under initial stages with an investment of Rs. 79,601 crore with a potential to create employment for over 2 lakh persons. These proposals include Proctor & Gamble, Hospira, MRF, US Gypsum, West Pharmaceutical packaging, Century Ply, Green Ply.
Hospira, a global provider of injectible drugs and infusion technologies, is setting up its largest manufacturing unit in the world near Visakhapatnam. Similarly, US Gypsum Company the largest distributor of wallboard in the US is setting up its first unit. The SIPB also discussed an exclusive policy for development of the life sciences sector in Andhra Pradesh.
This policy aims at a $ 13.5 billion market by 2019 with emphasis on biotechnology, medical devices, bio services, pharmaceuticals and nutraceuticals. This policy will lead to Rs 20,000 crore of new investment and 50,000 skilled employment besides augmenting exports to Rs 60,000 crore by 2019. The policy will be implemented in mission mode over a period of five years, officials said. Several initiatives have been proposed in the policy including promotion of infrastructure under PPP mode, setting up the Medical devices Park. The state will become a major attraction for the life sciences industry in the coming years.
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