New Delhi: Andhra Pradesh has been able to drum up investment from the likes of Ashok Leyland and ReNew besides bringing back alcohol majors United Spirits, Radico Khaitan and Diageo since N Chandrababu Naidu became chief minister in June last year. This is in addition to recent big-ticket investment plans by Reliance and ArcelorMittal/ Nippon Steel in Andhra Pradesh.
The state government has introduced new policies and eased government clearances to win back leading corporates.
The Hinduja Group's Ashok Leyland had been allotted 75 acres for a plant with a capacity of 4,800 buses in 2018 when Naidu was chief minister in his previous term. The plant in Vijaywada was 90% complete when Jagan Mohan Reddy succeeded Naidu in 2019. It couldn't be commissioned because it didn't get final clearances, forcing the company to abandon the project.
Naidu's son Nara Lokesh, the state minister for information technology, electronics and communications, real time governance and human resources development, has been steering new investments.
After a meeting in Hyderabad with Hinduja Group chairman Ashok Hinduja in December, the Ashok Leyland plant was commissioned last month. The group is considering plans to expand its presence in the state.
"We are exploring further business opportunities, particularly in manufacturing, financial services and renewable energy across our different verticals," said Ashok Leyland managing director and CEO Shenu Agarwal. "We are delighted to have commissioned the Ashok Leyland bus factory in Vijayawada."
Lokesh told ET that it hadn't been easy to convince businesses to return.
"It has been very challenging to draw back investments in this term as compared to 2014-19," he said. "But it is heartening to see that people believe in Mr Naidu's leadership. He and I have personally spoken to investors who have had family relations with us. If you look at the quantum of investments that we have attracted in the first 11 months of this government, we are second to none in terms of attracting domestic investments."
Green energy major ReNew had faced challenges as the previous Andhra Pradesh government had unilaterally reset tariffs that had been fixed under power purchase agreements for 777 MW. Although ReNew's claim was upheld in court, the company did not make any investments in the state.
A meeting at the World Economic Forum at Davos this year between Lokesh and ReNew chairman Sumant Sinha paved the way for its re-entry. ReNew is now building India's largest hybrid power project in Anantapur with an investment of Rs 22,000 crore in two phases, with a groundbreaking ceremony having been held on Friday.
"The state of Andhra Pradesh presents an attractive mix of investor-friendly policies, excellent transmission connectivity and abundant availability of solar and wind resources," Sinha told ET.
The state government has introduced new policies and eased government clearances to win back leading corporates.
The Hinduja Group's Ashok Leyland had been allotted 75 acres for a plant with a capacity of 4,800 buses in 2018 when Naidu was chief minister in his previous term. The plant in Vijaywada was 90% complete when Jagan Mohan Reddy succeeded Naidu in 2019. It couldn't be commissioned because it didn't get final clearances, forcing the company to abandon the project.
Naidu's son Nara Lokesh, the state minister for information technology, electronics and communications, real time governance and human resources development, has been steering new investments.
After a meeting in Hyderabad with Hinduja Group chairman Ashok Hinduja in December, the Ashok Leyland plant was commissioned last month. The group is considering plans to expand its presence in the state.
"We are exploring further business opportunities, particularly in manufacturing, financial services and renewable energy across our different verticals," said Ashok Leyland managing director and CEO Shenu Agarwal. "We are delighted to have commissioned the Ashok Leyland bus factory in Vijayawada."
Lokesh told ET that it hadn't been easy to convince businesses to return.
"It has been very challenging to draw back investments in this term as compared to 2014-19," he said. "But it is heartening to see that people believe in Mr Naidu's leadership. He and I have personally spoken to investors who have had family relations with us. If you look at the quantum of investments that we have attracted in the first 11 months of this government, we are second to none in terms of attracting domestic investments."
Green energy major ReNew had faced challenges as the previous Andhra Pradesh government had unilaterally reset tariffs that had been fixed under power purchase agreements for 777 MW. Although ReNew's claim was upheld in court, the company did not make any investments in the state.
A meeting at the World Economic Forum at Davos this year between Lokesh and ReNew chairman Sumant Sinha paved the way for its re-entry. ReNew is now building India's largest hybrid power project in Anantapur with an investment of Rs 22,000 crore in two phases, with a groundbreaking ceremony having been held on Friday.
"The state of Andhra Pradesh presents an attractive mix of investor-friendly policies, excellent transmission connectivity and abundant availability of solar and wind resources," Sinha told ET.
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