An International Industrial Park with an expected investment of USD 6.4 billion will come up in the Indian state of Andhra Pradesh. The industrial park will comprise a Building Materials Park and Logistics Park; both will be set up in the area of 20 square km each at Donakonda in Prakasam district of AP.
A Memorandum of Understanding (MoU) in this regard has been signed between Andhra Pradesh government and China Association of Small and Medium Enterprises and China Small and Medium Investment Group Limited in Beijing on Monday. This is one of the major investments from China during current visit of 13-member delegation from the state led by Chief Minister N. Chandrababu Naidu to China.
This international industrial park is one of its kind in India and will give major boost to make in Andhra Pradesh, said an official statement from the CM’s office.
Building Materials Industrial Park will be set up in an area of 20 square km with an expected investment of USD 0.9 billion and will manufacture all kinds of building materials and low- carbon energy-saving new materials, it is expected to fetch 10,000 direct employment, said an official in CMO, reported Indian express.
AP government will also facilitate to build Modern Building Materials Logistics Park in the area of 20 square km with an expected investment of USD 5.5 billion to look after the logistics and distribution of these building material products, and setting up of this park will employ around 35,000 people directly.
The proposed project will be constructed in three phases with an investment of USD 6.4 billion in next 4-5 year period.
The Industrial park will manufacture different construction materials such as concrete, bricks, cement, tiles, stones, metals, ceramics, engineering plastics, composite materials, wood, bamboos etc. and will also manufacture decoration materials like paint, glass with special effects, coatings, ceramic tiles in all colours, cladding materials, veneering will be manufactured too.
Chinese Manufacturing and logistics companies and companies from other parts of the world will invest and set up their units in the Industrial Park. The manufactured products in the park will be supplied in domestic markets and will also be exported to other countries.
During his current visit to China, Andhra Pradesh’s Chief Minister has also signed another MoU with a group of three companies (China Huanqiu Contracting and Engineering Corporation, Isomeric Holdings, and LEPL Ventures) for setting up a gas-based fertilizer plant with an investment of Rs 10,183 crore in the Sate and this plant is expected to provide direct job to 5,000 people, said the government.
The State has been attracting huge investment from foreign and Indian companies for setting up of different plants and in its infrastructure development. Andhra Pradesh is going to be one the crucial market for construction equipment manufacturers as setting of these industrial parks, various other plants and infrastructure development in the state will require huge amount CE, which opens the door for players who are into the business of both new and used machines.