AP invites investment for Special Economic Zone

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.