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Andhra Pradesh
By Our Special Correspondent
Mr. Naidu also welcomed suggestions and concepts like the Mega Chemical Industrial Complexes (MCIC), which was made by K.V.Raghavan, Director of the Indian Institute of Chemical Technology (IICT), in a presentation, and was clearly the highlight of the inaugural session. Andhra Pradesh was leading in the modern chemical sector and Hyderabad leads in R&D contribution. It was the centre of many reputed R&D institutions, and more institutions were added recently like the Indian Institute of Information Technology (IIIT), Indian School of Business (ISB), and National Academy of Construction. The Government also encouraged the setting up of the ICICI- Knowledge Park, and the adjacent Biotechnology Park, and declared a Genome Valley too. Phase I of the Knowledge Park was completed and phase II (which has since been taken up) will be completed by August or September, he said. He agreed that the Vizag-Kakinada belt with its gas and oil resources was ideal for an integrated petrochemicals complex. The State Government was also keen to explore another suggestion by Dr. Raghavan - of a triumvirate of countries (India, Japan and Singapore) for the development of chemical industries with A.P as the hub, he said. In India, he said that West Bengal, Orissa, Andhra Pradesh and Tamil Nadu on the East Coast, and Gujarat, Maharashtra, Karnataka and Kerala on the West Coast, were potential States to host MCICs. Their relative advantages and disadvantages need to be carefully assessed by a high-level committee of national and international experts. The Government of India has to take a policy decision to establish MCICs in the country to attract overseas investment, he said. Andhra Pradesh, he said, had the potential to host MCICs, given its strengths in the petro, gas and agro-based resources, intellectual capabilities and R&D institutions. The correct setting for locating an MCIC was the Vizag-Kakinada belt which provides direct access to oil and gas resources. The proposal to establish a pharma city, an LNG terminal and exclusive port for chemical handling in this region augurs well for establishing an MCIC, he felt. The estimated cost of an MCIC project would be in the region of Rs. 15,000 crores, and anticipated investments of Rs. 35,000 crores. Companies in such a complex could be in the region of 100 to 150, with direct employment potential for 25,000, he said. The Minister for Major Industries, K. Vidyadhar Rao, said in the post-WTO situation, there were reports that production and profitability had fallen, and the industry faces a great challenge. Andhra Pradesh, he said, accounts for one third of bulk drug production in the country and turns out 2,000 skilled professionals (for chemical sector) every year. The herbal and biotech sectors were important emerging areas in Andhra Pradesh, he said. Shyam S. Bhartia, Chairman of FICCI Chemical Committee and also Chairman of Jubilant Organosys said the Indian chemical industry would have to `restructure' itself to become globally competitive. The global chemical industry was put at about $400 billion, with 75,000 commercial products. The US had 12,000 chemical firms accounting for 24 per cent of global production. India, however, had a fragmented chemical industry with 6,000 firms accounting for about 1.5 per cent of global production, he said. The Chairman of Dr. Reddy's Laboratories, K. Anji Reddy, said the country had tremendous opportunities in the area of clinical development and many multinational corporations (MNCs) were already taking advantage of this. R.S.Lodha, President of FICCI, wanted simplification of procedures, a single window for customs clearance, and said development of infrastructure was a must for the much needed `cutting edge' to local industry. To develop and sustain these sectors in Andhra Pradesh, it needs significantly higher `knowledge building' and skill building.
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