Search the Internet            Tips

Naidu keen to make Hyderabad a one-stop financial, biz hub

George Iype in Hyderabad

Andhra Pradesh Chief Minister N Chandrababu Naidu, who pioneered the art of e-governance in the country, seeks to transform Hyderabad into a one-stop financial and business hub.

For the first time in India, an exclusive Financial District and a mega Green Park are being set up in Hyderabad to ensure that Andhra Pradesh gets sizeable investment opportunities from a variety of industries.

While the Andhra Pradesh government is developing the Financial District, investors from the United States and the Confederation of Indian Industry with active help from the state government will promote the Green Park.

According to state Industries Minister K Vidhyadher Rao, the Green Park will be developed on a 700-acre site and the Financial District in a 100-acre plot, both adjacent to the Hitec City that is home to a number of infotech companies in Hyderabad.

"We want to prove that Andhra Pradesh is not just about information technology alone. We are undertaking diversified projects in various directions so that Hyderabad becomes the investors' one-stop destination in India," Rao told rediff.com.

Rao said the Financial District is the first financial services hub of its kind being set up in the country. "We hope to attract a vast number of infrastructure projects which would related to the financial services," he said.

It seems that the rationale behind establishing the Financial District is to ensure that the Central government sets up the headquarters of the Insurance Regulatory and Development Authority in Hyderabad.

Ever since the Centre set up the IRDA to regulate the private players after the government opened up the insurance sector, the Andhra Pradesh chief minister has been lobbying hard to ensure that the government awards the prestigious insurance address to Hyderabad.

The Union finance ministry has not yet said 'No' to Naidu's request as his Telugu Desam Party is a powerful partner in the National Democratic Alliance at the Centre.

"With the setting up of an exclusive Financial District in Hyderabad, I think there is no other better place to locate the IRDA headquarters," Rao pointed out.

Establishment of a Green Park in Hyderabad with the support from US investors was one of the promises that the outgoing US President Bill Clinton had made during his visit to the city last year.

Since then the Confederation of India Industry has been drawing up plans to develop the Green Park. CII has already submitted its final project plan to the Andhra Pradesh government.

The Green Park will consist of a 'green business centre', a full-fledged research and development centre, and a host of environment-related companies.

According CII director general Tarun Das, the Green Park will be based on similar centres in California and Minnesota in the United States.

"The Green Park will promote environmental technologies, government initiatives on environment and operate technology-related services," he said.

He said that the Green Park will be the first such venture in Asia. "When completed, it will host companies engaged in environment, pollution control and green technologies. It will be the ultimate business centre to offer integrated services in the country," Das said.

The CII and the Andhra Pradesh government are both roping in banks and financial institutions to support the multi-million-rupee Green Park. The CII has also granted an initial expenditure of Rs 50 million towards to the project.

Das said that in keeping with the setting up of the Green Park, the CII has decided to move to Hyderabad its corporate headquarters for energy and environment.

The Andhra Pradesh government hopes that the proposed Financial District and Green Park projects will considerably attract investment during the ongoing CII-Partnership Summit. Officials project that investment worth more than Rs 280 billion will be finalised during the Summit.

Money

Business News

Tell us what you think of this report