Amaravati set to emerge as the world’s best greenfield capital, says Bhaskara Rao, president, APCCIF

Potluri Bhaskara Rao is a well-known entrepreneur of Andhra Pradesh. He is a senior professional entrepreneur with a 40-years track record in building, managing and growing companies. His extensive experience includes business development, operational and organisational skills. Most recently, he worked as the President and CEO of Nelito Systems Ltd (a Tata group company) where he turned it around into a large successful company. He also has extensive experience in agricultural, financial, industry and IT sectors. As banking professional, he had the opportunity to represent high- powered committees constituted by Reserve Bank of India, IDRBT and Indian Banks 'Association.

He is the founder president of APFPIF (Andhra Pradesh Food Processing Industries Federation) 2017-2019 and honorary president since 2019, Co-Chair, ASSOCHAM, AP State Council 2018-19, steering committee member, IPR, KL University, advisory committee member, food technology, JNTU, Anantapur. In an exclusive interview to Bizz Buzz, he said the present industrial climate is quite conducive for investments and exuded confidence that with around 20 sector-specific policies in place with a clear cut guidelines and speed of doing business as the focus of the government.

How is the industrial climate in Andhra Pradesh?

There is a positive vibe everywhere to develop Andhra Pradesh into a $2.14 trillion economy by 2047 as part of Swarnandhra Vision with an annual growth rate of 9%. The confidence-building measures initiated by Chief Minister N. Chandrababu Naidu are yielding positive results. The rich dividends are typified by the investments being attracted by AP over past one year or so. Being part of the NDA coalition, the State Government is getting all-out support from the Centre.

A welcome feature was the formation of a special task force with the CM as the Chairman and Tata Sons Executive Chairman N. Chandrasekharan as Co-Chairman to finalise a blueprint for effective implementation of Swarnandhra Vision-2047. The task force is mandated to identify infrastructure gaps, evaluate existing policy frameworks and suggest measures on how to mobilise funds for steering growth.

The vision highlights 10 key sectors as growth engines including agriculture, fisheries, horticulture, industries, commerce, logistics, services sector, IT, healthcare and medical infrastructure, education and skill development.

After bifurcation, AP was left with a wide base of agriculture accounting for 60 to 70% of its economy. Industrial progress was way behind as the united AP had all the development centered around Hyderabad. Only Visakhapatnam had some public sector enterprises and Sri City in erstwhile Chittoor district turned into a successful industrial cluster.

However, AP is now in the forefront of developing industrial infrastructure. The government has unveiled almost 20 policies for promoting all sectors including emerging ones like circular economy, defence and aerospace manufacturing, drone policy, electronics manufacturing. Sector-specific development approach to encourage growth in textiles, food processing, pharmaceuticals, biotechnology, life sciences, electronics and green energy are being adopted. We are successful in retaining our ranking in Ease of Doing Business. Now the government has changed its strategy to ensure Speed of Doing Business.

A major push is given to green energy. Electronics industry is encouraged in Renigunta-Tirupati area. Chittoor and other parts of Rayalaseema are being transformed into horticulture and food processing hub. Pharma units are being rolled out a red carpet in Vizianagaram, Srikakulam and Visakhapatnam districts. Despite the setback received during 2019-24, now the growth momentum is being witnessed in AP due to proactive policies and approaches.

At the AP Maritime and Logistics Summit held recently, CM Chandrababu Naidu announced plans to make the State a logistics hub. What does the industry expect to achieve?

Infrastructure strengthening is vital for drastically bringing down the logistics cost. Due to our strategic location with a nearly 1,000 km long coastline, the government has drawn up plans to give a big boost to port-led development.

There are plans to develop one port at a distance of 50 km with proper rail connectivity. New airports are being developed in PPP mode. Bhogapuram International Airport being developed by GMR Group near Visakhapatnam is getting ready for operations in mid-next year.

AP is the only State to get administrative sanction for development of three industrial corridors namely, Chennai Bengaluru Industrial Corridor (CBIC) and East Coast Economic Corridor (ECEC) with Visakhapatnam-Chennai Industrial Corridor (VCIC) as part of it. AP has the right logistics infra to promote as “Logistic hub of South India” and “Gateway to South East Asia”

Amaravati is being projected as a futuristic global city with plans to make the first phase operational in three years. How do you see its future in the coming years?

Amaravati has turned into a beehive of activity drawing global attention. Investors from various domains be it edutech, healthtech or drone technology or artificial intelligence, are showing interest to set up their ventures. In fact, many are excited over the prospects of transformation of Amaravati into a world-class city with a good connectivity and green-friendly environment.

As part of Amaravati Relaunch marking revival of capital city development, projects worth Rs58,000 crore were launched by Prime Minister Narendra Modi on May 2. Now works on iconic towers, road, and air connectivity is being given topmost priority. Land is also being allotted judiciously to educational campuses and other projects keeping in mind the requirements to create a futuristic city.

Ratan Tata Innovation Hub has already been launched in Amaravati. World's first Quantum Valley Park is getting ready. CRDA has allotted 50 acres to the ambitious project. MoU has already been signed with TCS, L&T and IBM for installation of super computers. It may become operational by February or March, 2026. I am pretty sure Amaravati will emerge as the best greenfield capital in the world. The government wants fast-track development to complete in three years.

Do you think the roadshows and investment summits being organised by the State Government to promote Brand Andhra are yielding the desired results?

Certainly, yes. In world where everything is competitive and the businessman invests in a place where the speed of development with proactive governance, the results are bound to be positive. Roadshows and investors' conclaves will provide an opportunity for networking and the prospective investors to know about the right opportunity to invest.

How was the response from investors at the World Economic Forum annual meeting in Davos?

A high-level team led by Chief Minister Naidu held several rounds of interactions with global leaders to showcase investment opportunities in green energy, emerging technologies, innovation and sustainable development. The focus was on energy transition, green industries and AI-propelled digital transformation and data security.

CM Chandrababu Naidu could draw the attention of top honchos of several multinational and Fortune 500 companies towards exploring investment opportunities in Andhra Pradesh.

The State Government has decided to accord industry status to the hospitality sector. In view of this, how do you see the future of the tourism sector?

It's a very good move. Industry and tourism will move hand-in-hand in attracting various projects. AP has tremendous potential to become a tourist destination with famous temples, Buddhist monuments, beaches, hills and rivers.

How is the real estate sector after the decision to scrap NALA Act?

Real estate sector, which received a severe jolt due to prolonged spell of the pandemic and uncertainty over capital development and policy initiatives during 2019-2024 is now picking up as the traction on developing Amaravati as the only capital of the State and to ensure development of various regions in focus on cluster-based and domain-specific development strategies post-general elections.

What are your suggestions to improve the present ecosystem to improve the investment climate so as to create job opportunities and give a boost to MSMEs.

MSMEs generate mass employment and development in each and every part if the right environment and encouragement is provided. Any big industrial cluster, for instance be it Sri City or Jawaharlal Nehru Pharma City or major manufacturing units like Visakhapatnam Steel Plant, Hindustan Shipyard Limited (HSL) or Bharat Heavy Electricals Limited (BHEL) will provide a lot of opportunities for tiny, small and medium enterprises to grow.

A solid vendor base is essential for all the major industries to cut down costs. This will also provide new opportunities to several MSME entrepreneurs. The decision to set up MSME parks in all the Assembly constituencies is a praise-worthy decision by the State Government, recognising the importance of MSMEs to accelerate development process in the nook and corners of the State.

How do you see the future of seafood exports from Andhra Pradesh?

The State exports a large quantity of frozen shrimp to the United States, Chna, and the European Union. Following the levying of a 50% tariff by the Trump Administration, we have asked the Government of India to address the issue to hammer out a solution.

The entrepreneurs are also exploring alternate market opportunities. Over the years due to the popularity of aquaculture in a big way white-leg shrimp has been in high demand in the overseas market due to its affordable price and culinary taste.