AP comes second in new investments for the quarter June- Sept 2014

CMIE reports that Andhra Pradesh attracted the second highest investment proposals right behind Tamil nadu for the quarter Jun -Sept 2014. While TN topped with 372 billion Rupees, AP was a close second with Rs 339 billion. Maharashtra, Karnataka, UP, Telangana and Gujarat followed in that order.

The figures pertain only to the truncated 13 districts- Andhra Pradesh which has no capital and has lost the main city of Hyderabad in the bifurcation process. The fact that it still competes with other states and comes second by beating the likes of Maharashtra, Karnataka and Gujarat is extremely encouraging. READ the complete CMIE report below.

andhra business

TN sees maximum new investments in Sept 2014

AP attracts substantial investments in solar energy

Announcement of new investments in India grew by 95.4 per cent y-o-y to Rs. 2,174 billion in the quarter ended September 2014, highest in the past nine quarters. These were largely led by announcement of investments worth Rs. 1,048 billion in the power sector.

Tamil Nadu topped the charts with new investments worth Rs. 373.2 billion, highest in the past four years. It was only in the June 2010 quarter that the flow of new investments in Tamil Nadu was higher at Rs. 494.8 billion. On 10 July 2014, Ministry of New & Renewable Energy (MNRE) announced setting up a 4,000 mw Tamil Nadu Solar Ultra Mega Power Project (UMPP) at Rs. 260 billion. Alongwith this, the State Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT) announced to set up a thermal power project at Tuticorin, with an investment of Rs. 32 billion. With a capacity of 800 mw, the plant will be a part of the Madurai-Thoothukudi Industrial Corridor. Tamil Nadu government had also announced a slew of industrial projects in the assembly on 24 July 2014. A desalination plant has been proposed at Kadaladi in the Ramanathapuram district, with Rs. 15 billion investment and a capacity of 15 million litres per day (mld). Another Rs. 72.7 billion investments were announced by the state government in the storage & distribution segment.

Andhra Pradesh stood second with substantial new investments worth Rs. 339 billion. Of these, Rs. 170.5 billion (nearly 50 per cent) belonged to the solar energy sector. Andhra Pradesh government has signed a Memorandum of Understanding (MoU) with the National Thermal Power Corporation (NTPC) for setting up a 1,000 mw solar park at Kadiri in Anantapur district at Rs. 70 billion. It has signed an MoU with NVVNL (NTPC Vidyut Vyapar Nigam Ltd) as well, for 1,000 mw Kurnool Solar Project at Rs. 65 billion. The Andhra Pradesh Power Generation Corp Ltd (APGENCO) has also announced a 500 mw Kadapa Solar Power Project costing Rs. 32.5 billion. KSR Maritime Projects Pvt Ltd has proposed to develop a port at Kummarapuram in Visakhapatnam district at a cost of Rs. 135 billion. It shall be developed over 3,500 acres, in a period of six years. The port will have a capacity to handle 60 million tonnes per annum (mtpa), which will further be increased to 100 mtpa.

Maharashtra stood third with new investments worth Rs. 267.6 billion. This includes announcement of a dry port at Aurangabad by Jawaharlal Nehru Port Trust (JNPT), with an investment of Rs. 150 billion. JNPT has also announced to develop a dry port at Wardha. Goods from these two dry ports shall be sent to the JNPT port for further exports by rail network.

Karnataka saw new investments worth Rs. 126.9 billion, mainly in the steel industry. Kalyani Steels has planned to double the capacity of its carbon alloy steel plant at Koppal to 1.4 million tonnes, at a cost of Rs. 55.3 billion. While, Sandur Manganese & Iron Ore Ltd received a Terms of Reference (ToR) approval from the Expert Appraisal Committee (EAC) for expansion of its existing ferro alloy plant capacity at Hanumanhalli in Hospet district. It will be expanded by installation of one mtpa steel plant, 40 mw waste heat recovery based power plant, 40 mw coal based captive power plant and an air separation plant of 500 tonnes per day, at a cost of Rs. 53 billion.

Uttar Pradesh saw the highest amount of new investments in the quarter in the past four years, at Rs. 126.1 billion. This includes approval of the Rs. 52.8 billion Meja Phase II Thermal Power Project by the state government, entailing two units of 660 mw each. Another Rs. 70.6 billion investments in Uttar Pradesh were announced in the power sector. In Rajasthan, new investments worth Rs. 125.9 billion were also led by the power sector. On 1 September 2014, Adani Power announced to expand the capacity at its Kawai Coal Based Thermal Plant by 1,600 mw (two units of 800 mw each) to 2,920 mw, at a cost of Rs. 91 billion.

New investments in Telangana were comparatively lower than Andhra Pradesh at Rs. 107.4 billion. Bharat Heavy Electrical Ltd (BHEL) is in talks with the Telangana government for engineering, procurement and construction (EPC) order for the Manuguru Coal Based Thermal Power Project. The Rs. 43.2 billion project entails four units of 270 mw each. Southern Power Distribution Corporation of Telangana Ltd (SPDCT) has also proposed to set up a 500 mw solar plant at Adilabad, with an investment of Rs. 32.5 billion.

Announcement of new investments in Gujarat was lower in the quarter at Rs. 65.3 billion, in comparison to Rs. 176.5 billion in June 2014. Investments worth Rs. 28.5 billion were seen in the shipping transport infrastructure segment alone. Adani Ports & Special Economic Zone Ltd announced development of a fourth container terminal at the Mundra port at a cost of Rs. 21 billion, with 1.3 million TEUs (twenty-foot equivalent unit) handling capacity. Reliance Industries Ltd also announced expansion of the Jamnagar Liquid Jetty Project, by setting up an additional berth having capacity to handle eight mtpa of liquid products and petrochemicals. The Rs. 7.5 billion project is awaiting Terms of Reference (ToR) from the Ministry of Environment & Forests (MoEF).

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