Andhra Pradesh in an investment raising overdrive, woos investors from across the globe

Andhra Pradesh’s mainstay has been agriculture for many years. A long coastline and fertile soil ensured its farmers were a contended lot. Now, the state is looking to get a healthy share of the industrialisation capex. This is through wooing investors from different parts of the world.

First off was a $15 billion investment from Google’s parent company Alphabet to set up the company’s AI hub in Visakhapatnam. Google Cloud Global CEO, Thomas Kurien in mid-October, while making the announcement, said the hub would be the largest investment anywhere in the world outside the US. Importantly, the plan also includes Google Cloud transforming Visakhapatnam into a global connectivity hub by landing its subsea cable infrastructure in the coastal city. The $15 billion investment will be spread over five years and Alphabet’s CEO, Sundar Pichai said the facility will bring “our industry-leading technology to enterprises and users in India” to accelerate AI innovation and driving growth across India.

It was in the late 1990s when the first phase of big-ticket investments in Andhra Pradesh took place, with most of it in the IT/ITes industries. It led to the city becoming home to some of the biggest names among which were Microsoft, Google, Meta to name a few. This time, the approach is to get in money across sectors. In a recent development, the Hinduja Group inked a deal with the state government to invest Rs 20,000 crore in power generation, renewable energy and electric mobility. Andhra Pradesh Chief Minister, N Chandrababu Naidu was in London to meet Ashok Hinduja, group Chairman.

The MoU states that the Hinduja Group will increase its power generation capacity of their thermal power plant (now at 1050 MW) in Visakhapatnam by another 1,600 MW, through two new 800 MW units. Also, on the anvil are plans to setting up an EV manufacturing plant, and developing both wind and solar projects. The upcoming CII partnership summit to be held on November 14-15 is expected to make a few more big announcements.

On renewables, Brookfield Asset Management is expected to invest $12 billion in the state over the next three years. Broadly, this will go into the entire green energy value chain.

Another significant development in the state, according to media reports, has been the Union Ministry of Environment, Forest and Climate Change giving the environmental clearance for ArcelorMittal’s 8.2 million tonnes per annum at Anakapalli.

Meanwhile, the state’s IT and HRD Minister, Nara Lokesh told the media that the CII Partnership Summit will see 410 MoUs worth Rs 9.8 lakh crore being signed, which can create 7.5 lakh jobs.