India's 1st coastal economic zone likely to come up in Andhra Pradesh
HYDERABAD: If things move swiftly, the country's first Coastal Economic Zone(CEZ) will come up in Andhra Pradesh. Visakhapatnam, Machilipatnam, Donakonda, Krishnapatnam or Srikalahasti-Yerpedu are among the places that the state government is scouting for to locate the zone.
According to sources, the setting up of the Coastal Economic Zone will be one of the major topics in the agenda of National Institution for Transforming India (NITI Aayog) vice-chairman Aravind Panagariya when he visits Amaravati on Tuesday and holds discussions with chief minister Chandrababu Naidu and other senior officials. The talks will mainly focus on taking inputs from the state government's proposals and requests on the location of the CEZ.
The first CEZs in the world came up in Shenzhen and Guangzhou provinces in China and are spread across Rs 2,500 sq km each. The proposed CEZs in the country including the first one in AP will be much bigger in size than the Special Economic Zones (SCZ) that have come up across the country.
The CEZs will come up on around 450 km of areas from the sea and will house big manufacturing and export-oriented units and labour-intensive industries manufacturing clothing, footwear, electronics as well as electrical manufacturing.
Among the many locations, Krishnapatnam in Nellore district appears to be the best location for the CEZ as it has the required port infrastructure to support import and export facility as well availability of land aplenty. "Being close to Rayalaseema, a CEZ in Krishnapatnam can turn into a job hub for that area," said the sources.
Panagariya in his note to the state government said in the context of the Sagaramala project (connecting all ports in the country), creating a Shenzhen style of CEZ in the western and eastern coast will boost economic activity and increase employment," said the sources.
AP government will present the scope for the CEZ and seek the support of the Centre in creating infrastructure, upgradations of ports as well as a liberal export regime. NITI Aayog had earlier said that a tax holiday period can be considered for firms that can create a threshold level of direct employment (50,000 jobs).
Within one CEZ, many sector specific zones and clusters can emerge. Apart from AP, Gujarat is also actively considering setting up a CEZ. Apart from support for the setting up of the CEZ, the AP government will request the NITI Aayog team to provide similar incentives that come in as part of special status for the industries to be set up in Prakasam and Kurnool districts as plenty of government land is available in these two districts. "For the CEZ and other projects, AP will seek policies similar to that of China which provide 10 years exemption of corporate tax," said officials. According to them, the state government is looking for incentives and other funds support be the tune of Rs 2.5 lakh crore.
10 years exemption of corporate tax... Now that is something I think we can all get behind!!
Companies in Guizhou Province Evince Interest to open an Industrial Park in AP
A delegation from Andhra Pradesh led by Mr. J Krishna Kishore, Chief Executive Officer, Andhra Pradesh Economic Development Board (APEDB) participated in the Cross Border Investment and Trade Fair, Guizhou Inland Opening - up Pilot Economic Zone, China, 2016 in Guiyang city, China today. This trade fair was organized by the Government of Guizhou and witnessed the participation of over 3000 delegates from over 30 countries. The fair aimed to provide a platform for business and political community to explore avenues of collaboration. Mr. Amit Narang, Hon’ble Deputy Chief of Mission, Embassy of India also participated in the trade fair. The delegation from Andhra Pradesh met Chinese counterpart led by Mr. Qin Rupei, Hon’ble Vice-Governor, Government of Guizhou Province and other government officials. The Hon’ble Vice-Governor shared his vision on creating conducive business relations between the two countries and said “China and India, one of the biggest economies in the world, have a natural synergy in leveraging their respective strengths in various sectors through mutual collaboration”. “The Guizhou Province is the 8th open economic zone in China and is in the process of developing an Inland Economic Zone in Gui’an New Area. This zone is a complete ecosystem for the region and includes education, manufacturing, skill development, tourism and healthcare and the Province is keen on developing relations with Andhra Pradesh for mutually beneficial investments” he added. Mr. J Krishna Kishore said “There is a sustained relationship between Andhra Pradesh & the Government of Guizhou Province and a Sister State Agreement was signed between us in April 2016. “I am fascinated with the fast pace of development work undergone in Guizhou and I invite companies to invest in India’s first Coastal Economic Zone along the coastlines of Andhra Pradesh. He added. Mr. Kishore also made a special request to the Hon’ble Vice Governor to appoint an official from Government of Guizhou Province in the advisory board of APEDB. The Indian delegation participated in the Sino Indian Industrial and Commercial Enterprises Forum which was attended by over 200 delegates from China and India. Mr. J Krishna Kishore made a presentation to the forum chaired by Mr. Li Hanyu, Vice Chairman of Guizhou Provincial CPPCC about various investment opportunities in Andhra Pradesh. The Andhra Pradesh Economic Development Board also urged the Government of Guizhou to regularly send business delegations to Andhra Pradesh and mobilize expression of interests into actual investments.
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