Vijayawada: Andhra Pradesh Chief Minister N Chandrababu Naidu on Monday said his government envisaged an investment USD2-4 trillion for the development of Amaravati, the greenfield capital city.
Chief Minister N Chandrababu Naidu poses with the bull sculpture during the listing ceremony of Amaravati Bond 2018, in Mumbai on Monday
Addressing a gathering after listing of the 'Amaravati Bonds' on the Bombay Stock Exchange (BSE) on Monday, Naidu said he did not find mobilisation of the seemingly impossible investments difficult since there was a proper decision making and execution mechanism in place.
Naidu said his government always adopted new approaches to fast-track development and opened up new funding options for the development of Amaravati. "The success of Amaravati Bonds 2018 reflects the investor confidence in my government and the development of Amaravati," he added. He said Amaravati will be the most livable place, having electric vehicles and self-sustained and green buildings with central cooling systems.
Naidu expected that the state economy should touch USD1 trillion mark by 2029, and its GDP will increase at a CAGR of 12 per cent for the next 15-20 years, compared with 10.5 per cent at present.
Andhra Pradesh State Planning Board vice-chairman C Kutumba Rao said, "Only a small portion of Rs 2,000 crore in the entire project requirement of Rs 48,115 crore of Phase-I have been mobilised through bonds to support the financial requirement of Rs 10,000 crore within this financial year."
The Chief Minister said “My goal is to make Andhra Pradesh to be the best state in India by 2029. My government’s priority has been to build a non-corrupt, stable and peaceful society. To make such a society economic growth must go hand-in-hand with inclusiveness and environmental sustainability, he said.
The Amaravati Bonds 2018, which has a term of 10 years is offered at a fixed interest rate of 10.32% per annum, paid quarterly, with a 5 year moratorium on principal payment, which is redeemed on yearly basis for next 5 years at 20% every year. The issue is guaranteed by the Government of Andhra Pradesh and is rated by CRISIL, Brickwork and Auicte. M/s AK Capital Services officiated as the sole arranger.
Interacting with several industrial giants at Taj Palace in Mumbai, the Chief Minister explained to them the ecosystem available in the state for investments. Top industrialists of the country participated in the interaction with the Chief Minister.
On the occasion, the AP Economic Development Board signed MoUs with industrial groups, including Retailers Association of India, for growth of retail sector in AP. This MoU was signed by EDB CEO J Krishna Kishore and Kumar Rajagopalan chief Executive Officer, Retailers Association of India in the presence of the Chief Minister. The total retail market in India is Rs 47 lakh crore and it is growing at 7 per cent. A significant share of the market remains untapped by modern retail and this presents a huge opportunity for India and especially AP.
Another MoU signed was with Hikvision India. The Hikvision is one of the world's leading provider of innovative video surveillance products and solutions. The interaction with industrialists began after Mukesh Ambani of the Reliance group made a courtesy call on him.
Later Nadir Godrej, Managing Director of Godrej group met the Chief Minister and discussed the company expansion plans in AP. Sangeeta Prasad of Mahindra World City met the Chief Minister and explained the group's world city projects at Chennai and Jaipur. Aditya Birla Group Chairman Kumara Mangalam also met the Chief Minister and explained the infrastructure development projects.
Neel Chandru Raheja, president of the Raheja Group, experts in construction of hotels and convention centres and malls, explained their plans and employment opportunities to six to ten thousand youth. The Chief Minister asked the group to construct big convention centres and malls at Tirupati, Visakhapatnam and Vijayawada, a small outlet mall at Anantapur. He requested the group to impart training to youth in hotel management.
Balakrishna Goenka, chairman of Welspun, said that they are ready to enter into a joint venture in cultivation of organic cotton with AP farmers on buy-back mode. He assured that farmers would get 33 per cent more yield and a price more than MSP. Chief Minister asked him to submit the project.
Purnendu Chatterjee of Haldia Group made a proposal to set up a unit in AP to provide employment to five lakh people. Vikas Deep Gupta of Piramal Group, Mangal Prabhat Lodha of Lodha group, Subhas Chandra of Essel group, Venkat Subrahmanian, MD of St Gobain India limited met Chief Minister at a one on one meeting and discussed their proposals.