Public sector undertaking Bharat Dynamics Limited (BDL), a manufacturer of precision guided munitions and guided missile systems based out of Hyderabad, is planning to establish two missile manufacturing units in Andhra Pradesh, with an investment of around Rs 1,400 crore.
“The state government will allot BDL 600 acre at Ibrahimpatnam in Ranga reddy district and 500 acre at the Lepakshi Aerospace and Defence Cluster located in Anantapur district for the purpose,” government officials said here on Thursday.
Earlier, announcing the Industrial Investment Promotion Policy (IIPP 2010-15) at the Secretariat today, chief minister K Rosaiah said though the government had announced some incentives in the 200-5-10 policy, it somehow failed to fulfil all the objectives. “We are confident of implementing all the incentives committed in the new policy,” he said.
Despite being an attractive investment destination, the chief minister said Andhra Pradesh could not fully harness its potential. It was expecting about 15 per cent growth in investments to Rs 75,000 crore before the policy expires in 2015.
“Power tariff of 75 paise per unit being offered to the industrial sector in the state is the lowest in the country. Though it is a loss to the exchequer, we are passing on the benefits to the industry,” he said, while calling upon industry bodies like the Confederation of Indian Industry (CII) to act as ambassadors to unlock the latent potential and attract more investments to the state.
Terming the NTPC-BHEL power project equipment manufacturing unit, to be set up with an outlay of Rs 6,000 crore, as the largest venture the state had attracted in the last two decades, Rosaiah said once operational, the project will create 6,000 direct and 25,000 indirect jobs.
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To increase the growth rate in the manufacturing sector from 12 per cent to 17 per cent, the IIPP 2010-15 envisages creating additional employment of 500,000 per year (200,000 directly and 300,000 indirectly) with special focus on micro, small and medium enterprises with emphasis on food processing.
Under the IIPP 2010-15, the government would provide Rs 100 crore in the state Budget every year for promotion of industrial estates, besides reserving 30 per cent to 40 per cent of the land for micro and small enterprises in the existing and upcoming industrial estates and parks developed by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC).
Rosaiah said about five per cent of the enterprises were currently managed by women and there was a need to improve the contribution of women entrepreneurs in starting enterprises in the next five years.
“To facilitate creation of women entrepreneurs, 5 per cent additional investment subsidy limit to Rs 5 lakh (totalling to 20 per cent) and another 5 per cent additional subsidy to SC/ST women (totalling to 40 per cent) will be extended, besides reserving 10 per cent of land in industrial estates and parks developed by APIIC,” the chief minister said.