BANGALORE: Andhra Pradesh chief minister N Chandrababu Naidu, has unveiled
the blueprint of the Andhra Pradesh Special Economic Zone (APSEZ), dubbed as a
high-tech commercial enclave to be set up in the state.
Naidu, who has played a key role in driving the US-India corporate
partnership over the last decade, is seeking investment for this innovative
economic zone. He addressed an audience comprising senior representatives of the
US business community at the Majestic East and West, Rihga Royal Hotel, New York
City.
APSEZ, a 9,000 acre, duty-free commercial enclave, to be set up near the port
city of Vishakhapatnam, will offer world-class infrastructure and support
services to corporations.
The chief minister’s presentation was the first in a series of roadshows,
to be held in several cities in the US, Europe and the Middle East, to initiate
dialogue with potential investors in the APSEZ project. The chief minister of
Andhra Pradesh is here to tap the US market for partners to design, finance,
market and operate the Zone, whose first phase alone will cost an estimated
US$500 million.
KPMG, the leading international accounting and consulting firm, is the
strategic advisor to the project. Infrastructure Leasing and Financial Services
Ltd. (IL&FS) are developing the policy framework of the SEZ, a premier
Indian financial institution that specializes in private infrastructure
development.
Naidu has appointed Andhra Pradesh Industrial Infrastructure Corporation Ltd.
(APIIC) as the nodal agency to facilitate the process of developing the Zone on
behalf of his government. Naidu's government is gearing up to transform the
state into an economic hub for the Asia Pacific region. It has recently
announced the Special Economic Zone policy that will govern the SEZ.
The policy offers significant incentives to corporations. It provides
substantial tax benefits for SEZ partners, including complete exemption of state
taxes such as sales tax, value-added tax and state duties. It also announces a
relaxation of import duties.
The policy states that the state government will be responsible for providing
world-class water, power, and Internet infrastructure to the SEZ, and will
guarantee transport links to national and international markets.
The government has already finalized its plans of building a multipurpose
port near the Zone and a new international airport in the state's capital,
Hyderabad, to cater to the requirements of SEZ partners.