CM Reddy aspires for Andhra Pradesh to become South Asia’s logistics hub

Visakhapatnam in Andhra Pradesh is all set to host the Global Investment Summit 2023 on 3rd and 4th March 2023 and in an interview with Business Insider, Andhra Pradesh Chief Minister Jagan Mohan Reddy gave his insights on the state’s industrial road map, key sectors that it is focusing on, and its thrust on sustainable development. In a trending statement he said, “We want to make Andhra a logistics hub for South Asia.” We seek what he plans for the logistics infrastructure of the state with growth rate of 11.43% and GDP of 5.05%

Reddy said that the new industrial policy – which will be unveiled during the upcoming Summit – will focus on creating Ease of Doing Business by providing speedy approvals, supporting operational activity as well as helping to scale up.

“Renewable energy has been our focus, we are expanding the RE base through support to the green energy, electric vehicle manufacturing, ethanol manufacturing and pumped storage. Some priority areas are economic corridors, petrochemical regions, bulk drug parks, and a logistics policy,” said Reddy while talking about the sustainability initiatives his government is weighing on.

The state is already home to the Vizag Port, which is one of India’s 13 major ports, the third largest state-owned port by volume of cargo handled and largest on the Eastern Coast. Reddy mentioned that his government is working towards development of integrated logistics-based infrastructure. The State will, in near future, bear witness to port-led industrialisation with ultra-modern or multi-purpose ports.

On the other hand, we can also expect road and rail based economic corridors connecting large industrial hubs, processing zones and more. With focus on movement of industrial cargo, the State government also plans to develop airports and is exploring the idea of constructing an aerotropolis (a metropolitan region whose infrastructure and economy are centred on an airport). 

Currently, the State is developing greenfield airports at Bhogapuram in Vizianagaram district and Dagadarthi in Nellore district on the PPP model, in addition to existing airports at Visakhapatnam, Vijayawada, and Tirupati. In order to promote multimodal connectivity, all airports are going to be connected by road, rail and possibly sea (via ports in close proximity) to maximise their potential and improve regional logistics.

The Chief Minister gave an example of Singapore, which with its favourable policy structure, use of IT, skilled manpower and supply chain SOPs, emerged as a logistics hub in India. Key thrust areas have been identified by the Andhra Pradesh government to focus on during the Summit, and all of them will have a direct impact on the growth of the logistics and supply chain industry.

Andhra has MSME parks with basic facilities that offer plug-and-play facilities, including a ready built factory shell. Similarly the AP government is exploring options to make power available for industries at cheaper price and set up incubation centers to promote start-up culture in the State.

Andhra Pradesh is the only state implementing three industrial corridors under the National Industrial Corridor Development Programme. These corridors are Visakhapatnam-Chennai Industrial Corridor, Chennai-Bengaluru Industrial Corridor, and Hyderabad-Bangalore Industrial Corridor.

Additionally, in line with the Center’s efforts of skill development across the country, 26 world class skill colleges, one additional skill college in Pulivendula, and one skill university are to be developed to bridge the skill gap between industry and academia and to ensure continuous supply of workforce. The curriculum at these institutions will be developed based on industry needs.

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