Secrets Behind Increasing FDI in Andhra Pradesh
FDI’s has always a big concern for India since times and during the planning period various plans and strategies were developed to attract foreign direct investment in India thus enhancing India’s growth.
Andhra Pradesh being one such state which attracts max FDI mainly in the Energy and Real estate sector. Andhra Pradesh ranks amongst the top three states in attracting corporate investors in 2009 and recorded investment plans to the tune of US$ 27.9 billion in the same year.
Power generation being one such controversial sector for foreign investments, AP has gained the max FDI in this sector in the year 2009 Andhra Pradesh ranks third among the states in terms of power producing capacity. . It has a power capacity of nearly 14,000MW, of which nearly 18 per cent is with private firms, a large portion it from gas-based projects and the rest from mini-hydel, wind, co-generation, waste heat and biomass.
The huge gas discovery by Reliance Industries in the KG-basin of the state has opened up huge and attractive power investment opportunities in the state.
Stats of the Sate [/b][/b]
Important power projectsin the State are:- the Nagarjunasagar and Neelam SanjivaReddy Sagar(Srisailam Hydel Project), Upper Sileru, Lower Sileru, Tungabhadra Hydel Projects and Nellore, Ramagundam, Kothagudem, Vijayawada and Muddanur thermal power projects. The Srisailam Hydro Electric Project with an installed capacity of 770 MW and the Nagarjunasagar Complex with 960 MW are the principal sources of hydel generation.
While, Vijayawada Thermal Power Station with an installed capacity of 1,260 MW and Kothagudem Thermal Power Station with 1200 MW are the main sources of thermal power generation. The 1,000 MW coal-based Simhadri Thermal Power Station aims at supplying the entire energy generated to the State. Singapore's Sembcorp signed the agreement with Gayatri Projects, a Hyderabad-based infrastructure firm, to set up the super-critical thermal power plant.
Power Generation Corporation of Andhra Pradesh Limited has been given the green signal to take up a massive capacity addition of 17,558 MW to meet future power requirements.
Power Generation being one such sector which has the only possibility of growth no matter where it exists, with all the facts Andhra Pradesh has proven its capacity of power generation with its upcoming projects along with the existing ones till date, can be featured as source of Investment & gains. Another concern for the other states could probably arise in relation to the energy shortage resulting in internal imports. Even the Andhra Pradesh Chief Minister K. Rosaiah urged the union minister to speed up the clearances for the power projects in the state. He said the state was uniquely positioned to emerge as a power hub as it has abundant coal and natural gas reserves. Thus AP is Shining at least in the Energy sector and real sector.