Hyd, Vizag to be 'free trade zones'

Andhra's infrastructure projects likely to bring in Rs 9,800cr in next two years, says CM

Chief minister Y S Rajasekhara Reddy, who addressed the two-day SUMINFRA-the South India Summit of the Confederation of Indian Industry (CII) at Bangalore on Thursday announced that his government is committed to making Hyderabad, Vijayawada and Visakhapatnam cities as 'Free Trade and Warehousing Zones'.

He welcomed partners in development of trade related infrastructure through the framework of the new Foreign Trade Policy (FTP).

Stating that the new FTP announced by Union Commerce Minister Kamal Nath would provide the necessary fillip to the growth of trade and exports from the southern region, the chief minister expressed hope that the new policy would also enable emergence of many more towns of export excellence.

The chief minister said that the state government's strategy of 'public-private partnership mode' was aimed at completing several infrastructure projects that are intended to facilitate a spurt in industrialisation, at the shortest possible time.

The projects like Hyderabad International Airport, Gangavaram, Krishna Patnam ports Vizag Industrial Water Supply scheme, Jawaharlal Nehru Pharma City and the new gas-based power projects are expected to bring in investments of over Rs 9,800 crore in the next couple of years, he said.

Besides other advantages available for the investors, the chief minister said that the state could now provide power at an affordable tariff as Andhra Pradesh is on the verge of becoming a power bastion on account of new gas finds in the K-G Basin. In a clear indication to attract more operations by IT companies, the chief minister said that his government is prepared to incentivise the operations in Tier-II cities in view of the efforts of IT hubs aiming to reach the newer areas of development.

"The government believes in providing transparent and an enabling framework where investors are assured of quick project completion and adequate project returns. It is in this direction that the rules are being framed for the Andhra Pradesh Infrastructure Development Enabling Act which has been a lacuna so far," Reddy told the gathering.

He also dwelt upon the scope of investments in the areas of water supply and sanitation and retail infrastructure in urban areas. Terming the reliable water supply and clean environment are today's absolute necessities, the chief minister welcomed infrastructure investors in this area also.

With reference to investment in food processing infrastructure in the state, he suggested a farmer-centric model in a profit-oriented enterprise.

"The government has set the framework in place and is further ready to encourage food parks in these regions by bridging the gap in the infrastructure on a case-by-case approach albeit in a time-bound manner. Enterprise in these areas can meaningfully make the farmers as co-promoters and joint investors," he said.

Disclosing the plans of his government for the improvement in the living standards of farmers, the chief minister hoped that the recurring droughts and depleting ground water could no longer a cause of worry as his government was giving thrust to growing of bio-diesel plantations like jatropha, pungamia, neem and soyabean.

The chief minister also urged the agents of change, investors in infrastructure and enterprising entrepreneurs to resolve to make south India a growth corridor exemplifying the best virtues and practices in all areas of activity.