Hardly anything to cheer for investors in AP in Covid-hit year
Barring a few significant developments, the State has failed to get any big ticket projects in the field of IT, tourism and manufacturing sector
Visakhapatnam: The year 2021 though raised hopes for a few months has nothing much to cheer for the investors in Andhra Pradesh due to the fallout of Covid-19 pandemic with the first half dominated by Delta variant amid severe shortage of oxygen supply and the last part shaking the entire world over the Omicron scare.
Most of the investors who have put their plans on hold due to the pandemic-hit economy and doubts over ROI (return on investment) factor, hope that even 2022 fate will be decided on how long Omicron continues to wreak havoc during the New Year. The decision to roll out vaccines to 15-18 age groups and allow senior citizens to take a third shot on medical grounds is also hailed as a good initiative to tackle the threat of more new mutants in future.
Barring a few significant developments, the State has failed to get any big ticket projects in the field of IT, tourism and manufacturing sector. Not even a single mega industrial investment has been grounded except the inauguration of Mega Industrial Hub and Electronic Manufacturing Cluster in Kopparthi in Kadapa. The Centre's decision to sell Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, has rocked the entire year with protests by the employees, ruling YSRCP and other Opposition parties.
Though 130 acres has been allotted to Adani Group, it is yet to launch work on a data park project at Kapulauppada near Visakhapatnam at a cost of Rs14,600 crore. However, the Adani Ports and Special Economic Zone (APSEZ) sprang a surprise in the investment circles by completing the acquisition of Gangavaram Port Limited at a fast pace.
Gangavaram Port, which has a capacity of 64 million tonne came under complete acquisition of APSEZ with Andhra Pradesh Government selling its 10.4 percent stake at Rs.645 crore. Prior to this APSEZ picked up 31.5 percent share of Windy Lakeside Investments Ltd and later DVS Raju and family's 58.1 percent. The completion of Visakh Refinery expansion from 8.33 to 15 million tonne by HPCL at a cost of $3.1 billion, which should have been completed by December, 2020 got hit due to the pandemic and other reasons. Company sources said it is likely to be completed in 2022.
Visakhapatnam Port is also hopeful that Visakha Container Terminal Private Limited (VCTPL) expansion by JM Baxi and Co, a BOT operator, will be completed by the end of 2021-22. The project cost was estimated at Rs 633 crore.
Both the much touted Metro Rail in Visakhapatnam and Vijayawada and international airport at Bhogapuram have remained non-starters.
On the infrastructure front, there is not much speed in going ahead with Visakhapatnam-Chennai Industrial Corridor and Raipur-Vizianagaram 6-lane expressway. Only good sign is the formal inauguration of NAD flyover in Visakhapatnam for which Rs186 crore was spent.
The business district project conceived at Madhurawada was shelved after expression of interest was invited seeking proposals from investors. However, on the tourism front the government announced its plan to develop several mega projects including giving a facelift to Kailasagiri Hill Park and opening a five star hotel and international convention centre at Shilparamam in Visakhapatnam.
The sudden decision to repeal legislation on trifurcation of capital and proposal to table another bill after consulting the stakeholders has created doubts over plans to develop executive capital in Visakhapatnam in the near future.
