India Inc Commits Rs 11.87 Trn To Andhra On Day-1 Of Investor Summit

The renewable energy sector received the maximum attention on Day-one of the Andhra Pradesh Global Investors Summit (GIS) on Friday. As many as 92 memorandums of understanding (MoUs) were signed for investments worth about Rs 11.87 trillion and an employment generating potential of 392,000 jobs.

State-run power major NTPC signed three MoUs for investments amounting to Rs 2.35 trillion, while industry majors Adani Group, Reliance Industries, ABC Ltd, Renew Power and JSW Group announced big-ticket investments in the state. On Saturday, another Rs 1.15 trillion worth of MoUs are set to be signed, taking the total to Rs 13 trillion.

The state’s energy department attracted as many as 35 investment proposals worth Rs 8.25 trillion and with an employment generating potential of 133,000 jobs. “With decarbonisation being the global emphasis, our focus is also on renewable,” said chief minister Y S Jagan Mohan Reddy in his address to the summit. A senior NTPC executive told Business Standard that the firm is investing to develop a hydrogen ecosystem park at Pudimadaka, a 2.6 giga watt (Gw) pump storage power plant, and 20 Gw of renewable energy capacity.

“...the state has received 340 investment proposals with worth about Rs 13 trillion, and with a potential to employ almost 600,000 people across 20 sectors. As of today, we will execute 92 MoUs worth Rs 11 trillion, the remaining will be executed tomorrow,” Reddy said.

JSW Group signed six MoUs, the largest among the lotm with an investment of Rs 50,632 crore. These are expected to generate employment for 9,500 people. ABB Ltd signed an MoU worth Rs 1.2 trillion, and a job generating potential for 7,000 people. Adani Green Energy signed two MoUs worth Rs 21,820 crore collectively (employment potential: 14,000 jobs). Aditya Birla Group signed two MoUs worth Rs 9,300 crore(employment potential: 2,850 jobs). Jindal Steel signed an MoU worth Rs 7,500 crore (employment potential: 2,500 jobs).

“We see Andhra Pradesh as an energy hub of the future. Single-window clearances and investor development policy have created a good ecosystem for investors in the state. We are working on a three-million-tonne steel plant near Krishnapatnam,” said Naveen Jindal, Chairman, Jindal Steel & Power.

Other than the energy sector, the state industries and commerce department has attracted 41 proposals worth Rs 3.20 trillion that will generate employment for 179,000 people. The IT and ITES department received six proposals (Rs 32,944 crore and 64,815 jobs). The tourism department received 10 proposals (Rs 8,718 crore and 13,400 jobs).

“We have come a long way in such a short time due to the ecosystem and the policy framework by the Prime Minister and the state chief minister. As a result, I'm very happy to announce our investment of Rs 80,000 crores in the state in green energy and decarbonization sectors in AP over the next five to seven years,” said Sumant Sinha, chairman and managing director, Renew Power.