Can CM Naidu propelproject grounding rate?
Transitioning MoUs into real projects was not encouraging so far: NDA-led AP govt inks 613 MoUs worth `13.25 lakh cr investments in different sectors; It’s an uphill task for officials to escort projects as per timeline set by CM Naidu
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Visakhapatnam: The roaring success of 30th CII Partnership Summit by inking 613 MoUs envisaging an investment of Rs13.25 lakh crore in various fields in Andhra Pradesh has put a daunting task before the officials of AP Economic Development Board (APEDB), Industries Department and other connected departments to ground them as per the timelines finalised by Chief Minister N Chandrababu Naidu.
The success according to industrial leaders will position Visakhapatnam into a global hub for AI, data centers, deep tech and Global Capability Centers solidifying the heavy inflow of investments into the three economic corridors proposed by the State.
The Chief Minister, who was overwhelmed with the unprecedented response from the investors after months of campaign to showcase the investment potential across Coastal Andhra, Krishna-Guntur (Amaravati) and Rayalaseema regions hinted at forming a Group of Ministers to monitor the progress of the projects on a real-time basis and ground all the projects in next three and half years.
A cursory look at the gala jamboree of investment conclaves held post-bifurcation reveals that the grounding rate was not significant as projected. For instance, in the 2016 CII Partnership Summit, 331 MoUs were signed involving an investment of Rs4.78 lakh crore. The State again made news by walking away with MoUs worth Rs4.39 lakh crore in 2018 though it was not commensurate with 2016 and 2017 summits. The summit in 2017 saw a whopping Rs10.5 lakh crore worth proposals. Again when YSRCP after coming to power held the Global Investors Summit here in March, 2023, it signed MoUs worth Rs13.05 lakh crore.
A senior official connected with the roadshow held ahead of the 30th CII Partnership Summit, told Bizz Buzz that unlike in the past, the current political dispensation is very firm with a strong hunger to ground the projects at the earliest. A proposal has already been made to form escort teams to monitor mega projects and address bottlenecks/teething problems if any in grounding the projects. One of the most successful projects to take off ahead of schedule is the Bhogapuram International Airport project for which originally the concession agreement was signed during the previous stint of the TDP Government. A stone was laid again after the YSRCP formed the government by revising some conditions. GMR Group Founder-Chairman GM Rao at the just-concluded summit here announced that they would not only complete the prestigious project in June, 2026, six months ahead of schedule, but also set up the world’s largest MRO (Maintenance, Repair and Overhaul) complex with an aero city in an area of 500 acres.
In social media, the captains of the industry hailed the encouraging response to the summit on such a grand scale and many taking to Linkedin and X to say that they need regular grounding updates. May such a suggestion has been made due to the bitter experience in signing MoUs to create hype on potential job opportunities and economic prosperity ending up with just pipedreams.
Though the target for the 30th edition of the summit was Rs9.8 lakh crore, on the first day of the two-day summit itself the response was evident as MoUs were started signing a day ahead of the summit. On the first day itself, MoUs worth over Rs11 lakh crore including major deals with companies such as Reliance Industries were signed to provide employment to 1.3 million jobs. On the second and final day of the summit, it swelled to Rs13.25 lakh crore with a commitment to provide jobs to 1.63 million. Among them, majority were for investment in Visakhapatnam followed by Amaravati and Tirupati.
“It’s wrong to form the impression that we are focusing on developing only Visakhapatnam, the main industrial hub of Andhra Pradesh. We are drawing up plans for developing three regional economic corridors to ensure decentralised development in all three regions,” Chief Minister N Chandrababu Naidu, remarked after felicitating those who worked hard for the success of the current edition of the summit.”
