Andhra govt plans Rs 9.3 lakh cr investment push through Visakhapatnam Economic Region
The Andhra Pradesh government has envisaged investments of up to Rs 9.3 lakh crore across sectors under the proposed VER.
Under the Visakhapatnam Economic Region project, the state government plans to invest up to Rs 4 lakh crore and attract Rs 5.3 lakh crore in private investment, taking the total proposed investment to Rs 9.3 lakh crore, according to a press release issued on Wednesday.
Chief Minister N Chandrababu Naidu reviewed the VER development plan at his camp office in Undavalli.
The government plans to anchor the VER project around the proposed Bay City development.
"The goal of the VER project is to develop the entire Visakhapatnam region through micro-level planning," Naidu said.
The proposed development plan covers an AI data centre ecosystem, port-based industries, tourism, hydrogen, clean technology and energy projects, the release said.
Naidu directed officials to extend VER development from Mulapeta Port to the proposed Akhanda Godavari project in Rajahmundry.
He called for convergence of available funds and the use of Viability Gap Funding wherever required.
The CM also directed officials to prepare micro-level plans for the region's comprehensive development, ensuring that no area or sector is left behind.
He said experience zones should be developed wherever necessary and all projects integrated to ensure balanced regional growth.
He stressed the need to secure greater funding from the Centre, as well.
Naidu said the urban development authorities within VER should undergo a significant transformation, supported by world-class infrastructure.
Officials said projects such as the Google AI Data Centre and the ArcelorMittal Nippon Steel plant had already strengthened Visakhapatnam and the North Andhra region's position as emerging investment destinations.
They said Visakhapatnam already has a strong ecosystem for IT, data centres and allied sectors, and that the VER development plan has been designed around these strengths, with the Bay City project serving as its anchor.
Officials briefed the CM on the proposed projects in the region, the Coastal Regulation Zone reclassification, the Bay City project and the proposed Bay City Authority.
Naidu directed officials to constitute a special Executive Committee to implement the Bay City project.
He said integrating major projects would yield better outcomes and stressed the need to focus on Global Capability Centres, fintech and logistics.
Naidu said the concept of East-West Connectivity was being discussed at the national level, with Prime Minister Narendra Modi also recently highlighting its importance.
He said project planning and investment mobilisation should be aligned with this vision.
Naidu emphasised the need to strengthen road and rail connectivity, saying Kakinada and Visakhapatnam should be better connected with western India.
He said integrating four airports and three ports would accelerate development and help attract greater investments.
Naidu, in addition, directed officials to upgrade the Visakhapatnam Zoological Park into an international-standard tourist attraction.
"As Visakhapatnam evolves into a global city, its zoological park has the potential to become a premier tourism destination," he added.
Meanwhile, the Andhra Pradesh government has selected KPMG Advisory Services Pvt Ltd as the strategic support agency and knowledge partner for preparing the economic development plan for the Tirupati Economic Region at a cost of nearly Rs 3.5 crore.
Interestingly, KPMG has emerged as the H1 (highest) bidder in the e-tender invited to engage an agency and knowledge partner for preparing the economic development plan for the Tirupati Economic Region (TER), Peeyush Kumar, principal secretary, Planning Department, said in a government order (GO) on Wednesday.
"After careful examination of the matter, Government hereby accord Administrative Sanction for engagement of KPMG Advisory Services Pvt Ltd as the strategic support agency/knowledge partner for preparation of the Economic Development Plan for the Tirupati Economic Region (TER) at a project cost of Rs 3.54 crores," Kumar said in the GO.
The government has divided the state into three economic regions - Visakhapatnam Economic Region (VER), TER and Amaravati Economic Region (AER) - for developing the state.
