AP to adopt Gujarat SEZ Act to boost industrialisation

Also Mulls promoting industrial clusters in private Sector

The Andhra Pradesh government, which is always on the lookout for ways to boost industrialisation in the state, has now come up with yet another strategy.

This time, it is gearing up to prepare an action plan for "industrialisation through special economic zones (SEZs)'' and the source of inspiration is none other than Gujarat.

Impressed with the Gujarat model during his recent visit to the state to participate in the Dandi Yatra, chief minister Y S Rajasekhara Reddy has decided to use SEZ model on the lines of Gujarat SEZ Act to promote industries in Andhra.

Reddy has already directed the state industries department officials to prepare the action plan, and a meeting on this was held by minister for major industries B Satyanarayana with the senior officials on Friday.

Apart from incorporating certain features of the Gujarat Act in the action plan, the government is also actively considering the idea of promoting industrial clusters in private sector.

"If any private firm or an individual comes forward to develop a new industrial cluster, the government will give the required land at nominal price along with partly bearing the infrastructure development cost of the project," Satyanarayana told Business Standard.

According to the minister, the government will lay down certain parameters for the private developers in terms of employment generation and the volume of operations before transferring the land in their names.

"We are also open to take equity in projects by promoting such clusters as joint venture projects with public-private participation," the minister added. A team of officials is on the job to finalise the modalities of this scheme.

The minister also said that his government is keen on taking advantage of having more than 1,000 km seacoast along the Bay of Bengal. He said that the government is mulling to develop a series of port-based SEZs along the sea coast.

"We are planning to acquire land along the seacoast and develop special economic activities there involving the scores of villages which fall in those areas," he said.

When asked about how keen is the government to adopt provisions of Gujarat SEZ Act, the minister said that the state government will adopt any positive practice followed in any state of the country or across the world.