Investors adopt wait-and-watch policy on capital Amaravati

Amaravati: The investors who signed Memorandum of Understandings (MoUs) with the AP Capital Region Development Authority (APCRDA) are apparently on wait and watch policy to invest in Capital city, Amaravati.

Though the APCRDA signed MoUs with several business houses with a total investment of Rs 1.24 lakh crore during the second partnership summit in Visakhapatnam in January, 2017, only five projects have gone into production while some corporate houses dropped their investment proposals.

Although the APCRDA officials are expressing hope that all the MoUs would be materialised, some industry experts and officials opined that there were some doubts among the domestic and global investors. “As the general elections are expected in a year, the investors, who signed MoUs, are not hasty to invest thousands of crores in Amaravati,” said a senior officer of Industry department on condition of anonymity.

The APCRDA signed a total of 62 MoUs with a total investment of Rs 1.24 lakh crore and a potential job creation of about 2.00 Lakh
during 2nd AP investment meet at Visakhapatnam in January, 2017. It also signed four MoUs during partnership Summit in 2016 for total investments of Rs.13,300 crores. But, several corporate houses dropped their proposals and did not attend the tendering process. State government allotted land to 43  organisations so far.  

According to sources, the APCRDA has expectations on 63 projects only. The total investment projected of these projects is Rs 96,708.74 crore and the projected employment is 3.79 lakh.  The APCRDA has divided the 63 projects into two categories. 

In the first category, only five companies have gone into production. The companies promised Rs 14,680 crore of investment and 8,645 employment.  One company is at trail production, one has erected machinery, four have started civil works and 11 are ready to lay foundation stone. Total investment committed by these 22 companies is Rs 63,289 crore.

In the second category, 41 companies with a committed investment of Rs 33,417 crore have not taken any activity. Though, 13 of these companies were given lands by the state government, they have not started any activity. Some companies did not submit even detailed project reports.

The Indo-UK Institute of Health promised investment of Rs 1,000 crore and 10,000 employment, was given 150 acres and laid foundation stone in August, 2017. But it is still at the stage of preparing documents.

The BRS Medcity Healthcare & Research Pvt. Ltd, promised investment of Rs 5,450 crore and 6,700 employment and was given 100 acres. Foundation stone laid for it in August, 2017, but is also still at the stage of preparing documents. There are several other similar cases.

“It is fact that the corporate companies are on wait watch policy to invest in Amaravati. So the government is requesting the Union government institutions to start their offices to show some activity in Amaravati,’’  said a senior official of APCRDA.