AP grows at 10.99%, reaches GSDP of $100 bn in FY15-16

Sairaj Iyer

Andhra Pradesh, India’s eighth largest state, has grown by 10.99% in the financial year 2015-16 and reached a cumulative gross state domestic product (GSDP) of $100 billion, a figure 5% above the national average, said a senior state official.

“India’s eighth largest state has grown by 10.99% in 2015-16 to reach a cumulative $100 billion GSDP (Gross State Domestic Product), a figure 5% over the national average, said Ajay Jain, the state Government’s principal secretary, while speaking at The Andhra Pradesh Investment Roadshow at Mumbai organized by CII on Monday.

While addressing the event, Jain also shared the master-plan which outlined infrastructure, sectoral policies, new industrial corridors, and details of the state’s capital in Amaravati.

Elucidating the plans on infrastructure he shared that industry development depends upon the availability of markets, raw materials, infrastructure and people. The industrial policy of the state government includes the development of Visakhapatnam-Chennai, and Chennai-Bengaluru Industrial Corridors. The plan also includes development and launch of major SEZs, besides revamping and commissioning of airports and ports. In the first phase, huge land banks have already been procured.

Explaining the available land-banks for the proposed development, Jain shares, “We have huge land banks and have setup corridors and identified various nodes. We have nearly 10,000 acres of land in Macchilipattinam node, nearly 15,000 acres of land in Donakonda north of Chennai, 15,000 acres of land to the South of Bengaluru, and huge chunks of land in Rayalseema. We also have more than 10,000 acres of land near Hindupur.”

In spite of boasting 6 functional airports, the state government is planning to develop a few more. “The current one at Vishakapatnam is a naval enclave, hence we are developing a new airport. The plan is basically a Greenfield airport at Gogapuram and one near Orvakkal. Our aim is to reach 14 ports by 2029 and 12 airports by 2020.”

“We are setting up an LNG terminal at Kakinada, a first on the east coast. We have nearly 1100 MMT of gas available in this reserve. This is in addition to the presence of Reliance, HP, Indian Oil, and Gail that have a huge presence in the Krishna Godavari basin. The HPCL refinery in Vishakhaphatnam is expanding, and a new cracker complex is also being proposed by HPCL. There would be abundant gas supply available,” explains Jain.

He informed that a five-year state policy has been set up for various sectors. “The 5-year policy has been set up for sectors such as food processing, industrial parks, MSME, aerospace and defense, textiles, IT innovation and startup, and tourism as well,” he stated.

When asked when the state capital of Amaravati would be ready, the Secretary answered that Rome was not built in a day, “But, as per the available Master plan, the first phase should be ready by 2019-20. The government complex, secretariats, residences of nearly 20,000 employees & their families, besides five institutions, and facilities for healthcare & education would be functional.”