Investments In AP’s IT Sector Way Below ‘Committed’ Amount

Amaravati: An investment of Rs 1,765 crore came into the Information Technology sector in Andhra Pradesh in the last four years as against the 'committed' Rs 9,770 crore, according to figures provided in an official report.

As per the report, submitted at the ongoing two-day conference of district Collectors here today, only 26,475 jobs were created in the IT sector during the period. The state government had set a target of creating one lakh jobs in the sector but could only achieve about 26 per cent so far.

The "IT Blue Print" released by the state government in 2014 had set a target of attracting 2 billion USD investment to create three lakh jobs by 2018. When asked about the report, an official said many investments were in the pipeline and scores of jobs were expected to be created next year.

"Many marquee companies are ready to chip in with investments while several high impact projects in the Fintech Valley in Visakhapatnam are in the pipeline. So, we can expect scores of jobs to be created at least by next year," the senior bureaucrat in the IT Department said.

Another report on overall investments in different sectors, including industries, in the state, showed that most of the "committed" investments were still in the "red" category, indicating uncertainty. A senior Industries Department official said the state government was engaging with the entrepreneurs to facilitate movement of the proposals to the "next stage".

Most of the issues being faced by the investors relate to land allotment, electricity connections and approvals, Industries Commissioner Sidharth Jain said. Besides, the district authorities have been asked to step up efforts with regard to land allotment for such projects. "We are asking them to apply through the single desk portal so that all clearances could be obtained in 21 days," the official said.

"We could now convince certain investors, who were ready to invest a sum of Rs 1830.52 crore, to take this route so their projects could be commenced soon. This will help create over 14,000 jobs," the Industries Commissioner said.

"The gestation period for the projects is high but we are getting traction only now. When all the units come into production, we will get traction," he told PTI. The report said while a sum of Rs 15,83,563 crore has been "committed" for 2,850 projects in the last three years, Rs 11,29,677 crore is stuck in the red category.

In the case of 1,035 projects, entailing an investment of Rs 8,36,346 crore and 16,45,324 jobs, not even the requisite detailed project reports were submitted in the last three years, it said. According to the report, in the industries sector alone, as many as 691 projects, with a proposed investment of Rs 2,58,466 crore and employment potential of 10,43,971, were facing uncertainty.

In the case of 31 major industrial projects entailing an investment of Rs 24,995 crore, the promoters have sought government land for their units and the matter was pending, the report said. (PTI)