So far, Tamil Nadu has emerged as the most preferred state for investors after Gujarat due to ease of single window process with the help of guidance.
Paraparakas joined the Andhra Pradesh State Administration on January 2. This is a big shock for Tamil Nadu as he was responsible for all inbound investments.
His hiring is the first step toward strengthening the Economic Development Board, which was nearly dysfunctional due to staff shortages under the previous government of President Jaganmohan Reddy.
The state government is currently taking steps to strengthen the board, which is the sole body of all government departments for attracting investment. So far, 10 top executives have been hired from various consulting firms. The two were hired by Invest India. The new team will spearhead the Andorran prime minister’s efforts to attract foreign investors at the World Economic Forum in Davos. The team marks a return home for about six senior executives who served on the board during Prime Minister Naidu’s previous term. IT Minister Nala Lokesh, who is leading the government’s efforts to revive the board, told ET, “Andhra Pradesh has already suffered a lot in the first six months of government.” We differentiate ourselves from other states through the three S’s: scale, speed, and a world-class skilled workforce. We are in a position to provide world-class infrastructure and skilled talent to large industrial investors, and we are able to provide the fastest delivery times to industrial sectors. We have already demonstrated this at scale. EDB is the single point of contact that coordinates the various government departments and provides a fast and comfortable experience for the industry.”
In contrast to the strong investment environment in neighboring Tamil Nadu, the new government is positioning Andhra Pradesh as an investment destination where “speed of business” is the most attractive. Earlier this week, the Naidu cabinet approved energy projects worth Rs 78,000 crore. Government orders for these four projects were issued on January 6. Looking at the timeline from proposal date to issuance of government order, we find that the average time it takes for a state to approve a project and put it into action is 60 to 65 days.
Andhra Pradesh is also trying to play to its strengths by attracting land- and water-intensive industries.
A senior official, who requested anonymity, told ET: “Land has become very expensive in Tamil Nadu. This is why Andhra is trying to acquire industries that are water- and land-intensive.Tamil Nadu moves towards electronics and automobiles On the other hand, Andhra Pradesh provides land- and water-intensive industries such as steel and petrochemicals. Both states are currently playing to their strengths.”
Earlier, in an interview with ET, when asked if the investment environment in Tamil Nadu was difficult, Naidu said, “All these setbacks are temporary.”
