JSW Group today signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board (APEDB) at the World Economic Forum, Davos.
This Memorandum of Understanding was signed by J Krishna Kishore, Chief Executive Officer, Andhra Pradesh Economic Development Board (APEDB) and Sajjan Jindal, Chairman, Jindal Group in the presence of Nara Lokesh, Minister for Information Technology, Electronics, Communication and Panchayati Raj.
With this MoU, Jindal Group proposes to establish a jetty at Ramayapatnam in Prakasam district as part of the group’s plans to expand their logistics footprint in South Asia. The meeting was attended by Ahmed Babu, Managing Director, APIIC & Ajay Jain, Secretary, Energy, Government of Andhra Pradesh and representatives from the APEDB.
JSW Group will invest Rs. 1,000 Cr to establish a jetty at Ramayapatnam Port. Nara Lokesh, Minister for Information Technology invited Jindal Group to establish an integrated steel complex surrounding the coastal areas in Prakasam district to take advantages of logistics and supporting infrastructure in Andhra Pradesh. The Minister emphasized the State’s EV policy and invited Jindal Group to invest in electric mobility in Andhra Pradesh.
The Andhra Pradesh government has formed a special purpose vehicle, the AP Maritime Infrastructure Development Corporation Limited, to develop the Ramayapatnam port at a cost of Rs. 4,240 Cr (phase-1) with eight berths. The port, proposed to be developed on a 3,092-acre site, will have a capacity of 40 million tonnes per annum.
Earlier this month, Chief Minister of Andhra Pradesh Chandrababu Naidu had unveiled a pylon marking the launch of the Ramayapatnam port on 10th Jan 2019. The Asia Pulp & Paper Group is proposing to make an investment of Rs. 24,000 Cr (approx USD 3.5 billion) in its pulp and paper manufacturing unit at Ravuru in Gudluru Mandal of Prakasam district.
At the Smart Logistics Summit 2018 Amaravati, the Government of Andhra Pradesh and APEDB has rolled out a sector strategy on integrated logistics and economics efficiency with a view to fast-track movement of goods and cut transactions cost of businesses, to improve service delivery by simplifying processes and making it consumer friendly.
Speaking on the need for integrated logistics, Mr. Krishna Kishore, CEO, APEDB emphasized that trade and manufacturing are linked with logistics, and improvement in its efficiency would help boost economic development. He further added that “high costs on logistics impact business competitiveness and the state of Andhra Pradesh leading in ease of doing business will address these logistical inadequacies”.
As the State aspires to build Logistics as the backbone of the economy with strong integration of technology, innovation and human capital, the Andhra Pradesh Economic Development Board aims to promote investments and initiatives in integrated logistics, storage infrastructure and mobility infrastructure. This sector is the largest employer at the entry level; therefore skill development and integration of emerging technology are also covered.
Andhra Pradesh is working to develop an ecosystem which will integrate hinterland, logistics and industries to become the largest East Bound Cargo Handling State.