Hyderabad: Industry body Assocham on Tuesday said though Andhra Pradesh has attracted good amount of investments in the past, there are delays in implementing the projects which need special focus.
In a report, titled 'Strategy for Developing the New Andhra Pradesh State', conducted by the Associated Chambers of Commerce and Industry of India (Assocham), it also suggested setting up of an 'AP Entrepreneurship Mission' by the state, based on public-private partnership (PPP) approach to promote entrepreneurship and generate employment.
"However, most of the investment projects attracted by AP are facing significant delays in implementation owing to a plethora of reasons like land acquisition delays, fund constraints, delay in environmental and other clearances along with law and order problems.
"Andhra Pradesh paints a grim picture vis-a-vis implementation of investment projects as over 49 percent projects have remained non-starter. Of these about 28.5 percent projects are in announcement stage while implementation of about seven per cent projects has been stalled and there is no information about projects comprising 13.5 percent share in total outstanding investments," the report highlighted.
The new government in Andhra Pradesh must focus more on implementing the delayed projects on priority. Though projects with just 0.5 percent share have been completed in the state, projects under different stages of implementation hold majority share of about 51 percent in the investments attracted by residual AP, it said.
On the 'AP Entrepreneurship Mission', the report said: "Considering that cost of one rural entrepreneurial hub would be in a range of Rs 30-50 crore, it would require financial support worth Rs 6,000-10,000 crore to create requisite ecosystem during the course of next 10 years."
As in the case of special category state, 90 percent cost of creating this ecosystem will be though grants from the Government of India and the remaining will be treated as a loan to the Andhra Pradesh government, Assocham said.