Babu's China visit a big hit
The six-day trip to China by Chief Minister N Chandrababu Naidu concluded on Friday with successfully signing of 10 Memoranda of Understandings (MoUs) with the Chinese companies. Out of these, five MoUs were signed between the Government of Andhra Pradesh and Chinese companies. The MoUs signed between the GoAP and their Chinese counter parts are mainly related to bringing direct investment to give a fillip to the solar and alternative energy sectors in the State.
Hyderabad: The six-day trip to China by Chief Minister N Chandrababu Naidu concluded on Friday with successfully signing of 10 Memoranda of Understandings (MoUs) with the Chinese companies. Out of these, five MoUs were signed between the Government of Andhra Pradesh and Chinese companies. The MoUs signed between the GoAP and their Chinese counter parts are mainly related to bringing direct investment to give a fillip to the solar and alternative energy sectors in the State.
The Andhra Pradesh Government has been informed by JA Solar Holdings that they were keen to set up solar plants in Andhra Pradesh. President of JA Solar Xie Jian mentioned that they are looking for a long-term involvement in manufacturing for Indian and International market. As a start-up, they informed the Chief Minister that they are planning to explore 500MW plant.
Clearing their apprehensions over employing skilled labour, Chandrababu Naidu clarified that the State has excellent source of human resources. He also informed the delegation that the State has put in place Skill Development Corporation. “Setting up a manufacturing unit now will give you the first mover advantage,” the Chief Minister added. JA Solar Holdings is the world's largest solar cell producer. They design, develop, manufacture and sell solar cell and solar module products.
One of the MoUs singed relates to facilitating direct investments in the fields of Thermo-Mechanical Treatment (TMT), Insurance, health care and tourism. Another five MoUs signed between the private companies in Andhra Pradesh and China, under Business-to-Business (B2B) are related to manufacturing of toys in Kakinada Special Economic Zone (KSEZ), where the GMR and Hangzhou Juatong Inc would set up a unit to create an initial employment to about 1500 people with an export projection of $100 million of toys.
The same unit is expected to further expand after 18-months, with an export growth projection of $250 million per year, and to create employment to about 5000 people. Four more MoUs under this category were signed between Brandix India Apparel City and their Chinese counterparts to bring in investments in the field of home textiles. One more MoU has also been signed under this category in the solar energy sector. Apart from this, the Chief Minister had made a strong pitch before the Chinese investors explaining the opportunities to catch on in various sectors like communications, manufacturing, hardware, smart phones, research and development and the like.
As part of this, a MoU has been signed with Camel Group Co Ltd., and also, another with industry body, China Council for the Promotion of International Trade (CCPIT). The CCPIT promotes China's international economic and commercial interests. One of the important components for the GoAP looking in the construction was a MoU signed with CCPIT in that sector. Using the interest evinced by the Chinese investors, the efforts were firmed up with Guizhou International Investment Corporation delegates have expressed their willingness to investment in Visakhapatnam.
Also, Sinoma International Engineering, and New Hope Liuhe Co that is engaged in feed production, livestock breeding and the like. The Chief Minister had made a strong pitch during this trip to Beijing, Shanghai and Chengdu, participating in the round table conferences with the representatives of several leading companies to showcase the proposed State capital of Amarvathi, and assure that it would open up several opportunities for the investors in the fields of construction, transport, communications, services, IT and ITES, shipping, food processing and other sectors.
Promising a dedicated single Chinese desk, and with the growth momentum accelerated by the new government at the Centre, he pointed that AP would be the best destinations for the Chinese investors to seize the opportunity. Explaining the policy changes being made by his government with regard to business, Chandrababu Naidu said that the State is blessed with natural resources, and there would be no problem in allocation of land, providing power and water to the new industries in the State.