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AP clears Rs 6,500 crore investment proposals

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BS Reporter Hyderabad
Last Updated : Jan 19 2014 | 10:35 PM IST
The Andhra Pradesh government on Saturday cleared six investment proposals worth Rs 6,500 crore by granting incentives, including a 50 per cent reimbursement in value added tax (VAT). Of these six projects, five belong to multinational companies.

The State Investment Promotion Board (SIPB) headed by chief minister N Kiran Kumar Reddy cleared the proposals of PepsciCo (Rs1,200 crore), Cadbury India (Rs 2,500 crore), Colgate Palmolive (Rs 275 crore), Johnson & Johnson (Rs 400 crore), Gerdau Steel (Rs1,270 crore) and ITC (Rs 828 crore), according to a statement. Any major incentives sought by companies for setting up manufacturing operations are to be cleared at the SIPB level.

All these companies had already entered into MoUs with the state government for their respective investment proposals. While PepsiCo,Cadbury, Johnson & Johnson, Colgate are setting up greenfield plants Gerdau Steel (steel manufacturing) and ITC (paper) are investing in capacity expansion of the existing plants. These investments are expected to create a potential for 18,500 new jobs in the state. The companies had already acquired land for executing the projects, officials said.

The SIPB also discussed an exclusive policy for the development of the life sciences sector targeting the $13.5 billion US market by 2019 with emphasis on biotechnology, medical device, bio-services, pharmaceuticals and nutreaceuticals, according to the chief minister's office. The proposed policy is expected to be placed before the state cabinet at the next meeting.

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First Published: Jan 19 2014 | 8:46 PM IST

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