Growing enterprise

At the Krishnapatnam port in Nellore district.-BY SPECIAL ARRANGEMENT

Nellore district, the land of paddy fields, is witnessing rapid industrialisation and making big strides in other sectors as well.

THE first thing that strikes one about Nellore district is its expanse of paddy fields. The name Nellore is thus said to have derived from the Tamil nell (paddy) and ore (town). Another account of the origin of the name gives credit to the presiding deity of Mulapet in Nellore, Sri Mulasthaneswara Swamy, who is believed to have manifested himself in the form of a lingam under a nelli (Philanthus emblica) tree. This land of plentiful paddy has now become the land of abundant industrial opportunities. Thanks to the development mantra of the Congress government headed by Y.S. Rajasekahra Reddy, the district is witnessing rapid industrialisation and is making big strides in other sectors as well.

As many as 13 mega projects, including five Special Economic Zones (SEZs), are proposed in the next few years, with an investment of Rs.50,000 crore. All these projects have the potential to change the industrial situation of Andhra Pradesh. They are expected to generate direct employment for 1,50,000 people and create indirect jobs for an equal number of people in the coming years.

Some of the major investment projects are the 4,000-MW coal-based Ultra Mega Power Project (UMPP) of Reliance Power Limited of the Anil Dhirubhai Ambani Group with an investment of Rs.20,000 crore and the 2800 MW Dr. Damodaram Sanjeevaiah Memorial Super Critical Thermal Power Project of AP Genco, with Rs.8,300 crore. Both these projects will come up near Krishnapatnam. About 2,532 acres of land have been acquired at Muthukur, Krishnapatnam and Eduru for the UMPP project and 2,945 acres of land have been identified at Krishnapatnam, Nelatur and Pynapuram for the AP Genco project, which is expected to commence commercial production by 2012.

MAS Fabric Park India Private Limited will create around 31,000 direct jobs. Apache SEZ Development India Private Limited will provide 30,000 jobs and Kisan SEZ 25,000. MAS Holdings has signed a memorandum of understanding to set up a state-of-the-art textile and apparel park.

The park will consist of 32 units, of which 20 are producing about 31.2 million pieces of raw fabric.

Apache, which became operational within 10 months of signing an MoU in February 2006, is one of the fastest growing start-up companies operated by a foreign holding in India, with a production target of 1,200,000 pieces of footwear a month.

Spread over 314 acres with an initial investment of over Rs.200 crore, which will go up to Rs.500 crore in the ensuing years, Apaches exports in 2007 were worth $8,515,862.

The Indian Farmers Fertilizers Cooperative Limited will develop a multi-product Kisan SEZ, spread over 2,527 acres in four phases, at Regidichelika and Racharlapadu villages of Kodavalur mandal. Considered the first of its kind in the country, the zone will focus on the agriculture and food-processing sectors. The first phase of the project is expected to be completed by 2011.

In the next few years, 10,000 new avenues for employment will be created by the Leather SEZ of the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) at Mambattu, the International Leather Complex at Krishnapatnam, the automotive engineering and aerospace park, and the component manufacturing unit of the United Kingdom-based Caparo group and the Taiwan Industrial Park. The Caparo group will set up a world-class auto and aerospace component hub with an investment of Rs.3,500 crore in a phased manner. Around 2,000 acres have been allocated for this, of which 1,500 acres will be set aside for the development of an industrial park and 500 acres for starting an export promotion SEZ.

The Krishnapatnam port, the largest private multipurpose port under construction in the eastern coast, is promoted by the Navayuga group on a 50-year build-operate-streamline-transfer basis and enjoys certain concessions from the State government. The port, with its state-of-the-art infrastructure, promises to handle all types of liquid, iron ore, coal, petrochemicals and containerised cargo besides catering to warehousing and storage needs. It also offers logistical advantage for trade in domestic as well as Asia-Pacific and far-eastern regions. It has four multipurpose 300-metre-long berths, each with a capacity to accommodate vessels of 65,000 DWT with a draft of 15 m. Its present cargo handling capacity of 35 million tonnes per annum is to be augmented to 125 million tonnes.

After tasting success in hydel power generation, the Meenakshi group has embarked on a 540-MW thermal power project at Krishnapatnam through Meenakshi Energy Private Limited. The project promoters have signed an MoU with PTC India Limited for the sale of power.

A small village, Mambattu in Tada mandal, is emerging as an industrial hub. It has already attracted six industries. Tata Ryerson Limited will produce cutting, bending, welding and general machine tools and have a fabrication unit for mild steel and alloy steel components; Eastern Mattresses Private Limited will have a mattress-making unit; Vinkem Labs Private Limited will produce oncology injectables; and Regen Power Tech Private Limited will manufacture wind energy converters of 1.5 MW.

Work is in progress with regard to the APIICs leather SEZ. Bharatiya International Limited, one of the worlds top five manufacturers of leather footwear, is establishing a leather park. Automotive Manufacturers Private Limited is starting an Ashok Leyland servicing centre and Geometrix Laser Solutions is planning a laser welding and cutting unit in the village.

The well-developed infrastructure facilities and the availability of raw materials as well as local workforce have made Mambattu and the district a favourite destination for a wide range of industries.