Economic Update
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Deccan Despatch – Economic December 2008 Confederation of Indian Industry Update Vol. 1 No.53 Southern Region IN THIS ISSUE ANDHRA PRADESH ¾ Policy Tracker ¾ Investment Tracker KARNATAKA ¾ Policy Tracker ¾ Investment Tracker KERALA Deccan Despatch–Economic ¾ Policy Tracker Update is a monthly review ¾ Investment Tracker through which we aim to present up-to-date news and PUDUCHERRY an analytical view of policies, investments and notifications, ¾ Notification Tracker issued by the southern states TAMIL NADU and that impact the industry. ¾ Policy Tracker ¾ Investment Tracker ¾ Notification Tracker Confederation of Indian Industry, Southern Region 98/1, Velacherry Main Road, Guindy Chennai – 600 032 Ph: 91-44-42444555, Fax: 91-44-42444510 E-mail: [email protected] Website: www.cii.in ANDHRA PRADESH POLICY TRACKER Sugar mills to be Andhra Pradesh government has decided to modernise 4 out of the 11 cooperative sugar mills in modernised in AP the state. In the initial phase, two mills - Chodavaram and Kovur mills – have been selected for modernisation while two other mills - Sri Venkateshwara and Thandava – will be taken up in the next phase. Modernisation of Chodavaram and Kovur sugar mills is likely to involve cost of about Rs55 crore. 700 acres of additional It has been decided by Andhra Pradesh to allot about 700 acre of more land to Vanpic land to Vanpic project (Vadarevu and Nizampatnam Port & Industrial Corridor) for developing the shipyard project, which includes a ship-building unit. This land is additional to the 2,000 acre already allotted for the Vadarevu port. New apartments in Andhra Pradesh Government has decided to exempt new apartments from the payment of AP to be exempted stamp duty from January 1, 2009, to December 31, 2010. The apartments should be up to from stamp duty 1,200sq ft in area and this decision has been taken for encouraging the construction of affordable housing. Currently, 7.5% stamp duty and registration charge is collected on new flats and apartments, but according to the new decision, only the 2.5% registration charge will be collected and 5% stamp duty on new flats and apartments up to 1,200sq ft will be exempted. Besides this, for new housing units having plinth area up to 1,200sq ft, exemption will also be given to the building approval fee and building permit fee. 2 ANDHRA PRADESH INVESTMENT TRACKER Domestic Investment 4 companies to start Four clean technology companies - Solar Semiconductor, KSK Energy Venture Limited, XL their operations in Telecom and Energy Limited and Surana Ventures Limited will soon start their operations at the Fab City soon Fab City in a month. 160 acre out of the total 1,172 acre in the Fab City has been allotted to these companies which will invest about Rs6,532 crore (US$ 1306.5 million) in phases in ten years. The list of investments to be made includes Rs5,500 crore by the Solar Semiconductor, Rs351.25 crore by KSK Energy Ventures, Rs381.25 crore by XL Telecom and Rs175 crore by Surana Ventures. AP logistics SEZs & State government is setting up logistics SEZs in Visakhapatnam and Naidupet and logistics Auto Parks to attract parks across the state. For this, about 500 acres of land has been allotted across the state. The Rs2,000 crore proposed logistics SEZs and parks are expected to attract investments up to Rs1,000 crore in investments the state during three to five years. Similarly, the government has decided to set up logistics parks in the automotive SEZ at Toopran in Medak district on 25 acre, at Manthal near Shamshabad on 25 acre, Adampudi in Visakhapatnam on 100 acre and at Yellamalla village on the Outer Ring Road (20 acre). These parks will take final shape in the duration of about three to six months. Jaypee proposal to set Jaypee Group has proposed to set up a cement plant near Jaggaiahpet in Krishna district of up cement plant in AP Andhra Pradesh. The plant will come up on about 250 acre of land and will involve the investment of about Rs1,600 crore. The annual production capacity of the plant will be five million tonnes. The group will invest in the phased manner in two years. Lodha group planning Lodha Group has planned to set up ‘Sky Villas’ on 45-floor high rise towers in Hyderabad. For to set up ‘Sky Villas’ this, group will make an investment of Rs900 crore in the first phase and first phase of the project is expected to be completed by 2011. The project is titled Lodha Belleza and is modelled on California style living on high rises. The project will be located across 12.9 acre of land with 45 floors. 17 companies to invest 17 companies have signed MoU with Chennai-based Sri City Pvt Ltd for making investment of in AP SEZ of Sri City around Rs800 crore in the multi-product special economic zone (SEZ) of Sri City Pvt Ltd in Andhra Pradesh. The first manufacturing unit of the SEZ is likely to begin production in March 2009. The SEZ will come up on 5,000 acres of land at Tada in Nellore district of Andhra Pradesh in public-private partnership and is likely to attract the investment of Rs17,500 crore by 2012-13. The SEZ will create around 100,000 direct and 75,000 indirect jobs. Janapriya, Sun-Apollo Janapriya Engineers Syndicate along with private equity firm Sun-Apollo has formed a special to develop satellite purpose vehicle (SPV) to develop a satellite township, keeping the focus on affordable housing. township Investment of Rs400 crore will be made in the first phase of SPV named Janapriya Nile Valley, located on 44 acre of land. First phase of the project will involve developing 14 lakh square feet of built-up space in about 13.5 acres out of 44 acres of land. MTAR Tech to invest Hyderabad-based MTAR Technologies Private Limited, engaged in high precision machining, in aero SEZ fabrication and design centre with latest machines and testing facilities, is investing Rs200 crore for setting up a manufacturing facility, in the aerospace and precision engineering Special Economic Zone (SEZ) at Adibhatla in Rangareddy district of Andhra Pradesh. SEZ is coming 3 up on 280 acre of land and is likely be fully operational by 2011. Schwing Stetter Schwing Stetter India Private Limited, a wholly-owned subsidiary of Germany based Schwing planning training GmbH, is planning to set up a training centre in Hyderabad for engineers and operators of its centre in Hyderabad products like batching plants and ready-mix concrete (RMC) trucks at the cost of Rs6 crore. This training centre is expected to be ready in a year. 4 KARNATAKA POLICY TRACKER Karnataka to sweeten Karnataka government has come up with a new buying plan after choosing to buy expensive sugar mills power deal power from private power producers like GMR and Jindal. It shall now revise rate at which power will be purchased by it from sugar mills, having co-generation units. The state government, currently buying power at the rate of Rs2.80-3.86 per unit from sugar mills, is likely to raise the price to bring it at the same level make it on a par with other private power producers, which is in excess of Rs8 per unit. Besides this, government has also planned of procuring power from private producers to overcome the power crisis in the state. Karnataka to control In order to conserve and discourage the export of the ore in the raw form, a push has been free iron ore exports given to value-added iron ore-based products only. The new mining policy - 2008 cleared by the Karnataka government in December 2008, will encourage mining of iron ore and other minerals only from the view point of value-addition made by them. No fresh licence will be issued in the state for mining. This policy has been mainly framed to encourage the application of modern technology in processing minerals. 4,300 acres land Karnataka government has cleared seven proposals for converting agricultural land to be used conversion approved by by industries in the state. 4,300 acres of land has been involved in these proposals out of which government 3,400 acres of agricultural land will be used for industrial purpose by three major cement companies in the state. State to double Department of Ports and Inland Water Transport in Karnataka will carry out capacity expansion capacity at old of the old Mangalore port for doubling its vessel handling capacity from the current level of 25 Mangalore port vessels. The proposal to construct a new jetty in the centre of the port has been recently approved by the department at an estimated cost of Rs5 crore. According to the port officials, Kochi-based Geotech Constructions has been given this work and the work is expected to be completed by the end of 2009. Government awarded Karnataka government has given the contract involving development and operation of Bijapur airport contract greenfield airport at Bijapur to Chennai-based MARG Ltd which will be built on the Build, to MARG Operate & Transfer (BOT) basis. The airport will come up on 727 acres of land in Burnapur village under public-private partnership. The duration of contract for designing, developing, operating and managing the airport is 30 years. CTTP for 6 cities in A Comprehensive Traffic and Transport Plan (CTTP) has been prepared for 6 tier II cities in Karnataka Karnataka. The cities for which the CTTP has been prepared are Mysore, Mangalore, Belgaum, Hubli- Dharwad, Bellary and Gulbarga. The draft of these plans has been made on the basis of directions received from Directorate for Urban Land Transport.