KTR seeks Rs. 5,000 crore for upcoming projects

HYDERABAD: As the Central government has approved several projects in Telangana, the information technology minister K. T. Rama Rao requested the Union finance minister Nirmala Sitharaman to allocate Rs 5,000 crore funds to the state in the ensuing Budget to set up the projects in the state.

The minister wrote to Nirmala Sitharaman explaining the projects being taken up by the state government and their capacity in providing jobs to lakhs of people in Telangana. Rama Rao said the world’s largest pharmaceutical cluster was being developed by the Telangana government with an objective of promoting domestic manufacturing and exports of pharmaceuticals in line with the “Make in India” initiative of the Union government.

“The project has received the final approval for ‘National Investment and Manufacturing Zone’ (NIMZ) status from the department for promotion of industry and internal trade (DPIIT). In various meetings in the department, Hyderabad Pharma City has been recognised as a project of national importance,” Rama Rao said.

He further stated that the Telangana government had already constituted Hyderabad Pharma City Limited and initiated the implementation of Phase-1 (in sub-phases). “The project has received overwhelming response from both domestic and global companies to set up manufacturing units. Overall investment potential of the project is estimated to be around Rs 64,000 crore with a capacity of generation of 5.6 lakh jobs direct and indirect,” the IT minister said.

Rama Rao requested the Union finance minister to consider extending financial support to the projection of the following items as per the NIMZ scheme guidelines. Detailed project report (DPR) and a financial feasibility report were already submitted to the department. He reiterated that Hyderabad Pharma City promised to position India as the global manufacturing hub for pharmaceuticals. For a project of this nature, it was imperative to have strong support from the Centre, he said.

KTR seeks Centre’s aid for National Design Centre

The Telangana government is setting up the first National Design Centre (NDC) in Hyderabad. “The government is not setting up a new greenfield campus for NDC, instead, we are now planning to take up some space in the existing building of National Academy of Construction (NAC) for starting the NDC activities,” said K. T. Rama Rao.

He requested the Union finance minister’s support for the initial capital expenditure mainly towards making the NDC functional through interior works, lab equipment and machinery, IT infrastructure and consultation expenses. The cost-sharing by the state government in operational expenditure will be in addition to the rent advantage that the state government has been able to obtain from NAC for renting the premises at Rs 28 per sq. ft. instead of Rs 43 per sq. ft. per month for the 14,000 sq. ft. space being considered for NDC operations.

Fundings for industrial corridors

The Union government must consider including the Hyderabad – Warangal and Hyderabad – Nagpur industrial corridors by NICDIT and for considering funding initially two nodes such as the Hyderabad Pharma City (HPC) and National Industrial Manufacturing Zone (NIMZ), Zaheerabad, requested IT minister K. T. Rama Rao on Sunday. According to him, the SPVs for both the nodes are in place and the required land is already acquired, the estimated project cost for taking infrastructure development in these two nodes is about Rs 3,000 crore and Rs 2,000 crore respectively. The IT minister requested the Union finance minister to include the budget to the extent of at least Rs 2,000 crores for each of the nodes under Hyderabad -Warangal, Hyderabad -Nagpur and additional nodes at Mancherial in the budget estimates for 2022-23.

Inclusion of Hyd in defence corridors sought

There are two Defence Industrial Production Corridors proposed in the Union Budget 2018-19. The Telangana IT minister requested the Union finance minister to consider including Hyderabad in the proposed Defence Industrial Production Corridor to augment and support the growth of defence manufacturing from Telangana. Telangana is strategically located in the centre of the country and home to several public sector defence enterprises.

KTR asks Nirmala Sitharaman for infra grants in upcoming budget

KTR in his letters asked for funds for several initiatives planned by the state government ranging from the establishment of the National Design Centre to the Hyderabad pharma city project.

Hyderabad: Telangana Industries Minister KT Rama Rao on Sunday wrote a series of letters to Union Finance Minister Nirmala Sitaraman and asked for ample allocation of funds for infrastructure development in the upcoming Union budget 2022-23.

The Finance Minister is going to present the budget in the parliament on February 1.

KTR in his letters asked for funds for several initiatives planned by the state government ranging from the establishment of the National Design Centre in the state to the Hyderabad pharma city project.

“As you may recall, we have had repeated interactions regarding setting up of the first National Design Centre (NDC) in Hyderabad. As advised by you, we are not setting up a new greenfield campus for NDC, instead we are now planning to take up some space in the existing building of National Academy of Construction (NAC) for starting the NDC activities. We request your support for the initial capital expenditure mainly towards making the NDC functional through interior works, lab equipment and machinery, IT infrastructure, consultation expenses etc. Thereafter, support on the operational expenditure will be required initially for approximately 8 years, post which the Centre is envisaged to become self-sustaining,” he wrote in the letter.

He then thanked her for the centre for including Hyderabad – Warangal & Hyderabad – Nagpur Industrial Corridors by NICDIT and for considering funding initially two nodes viz., the Hyderabad Pharma City(HPC) and National Industrial Manufacturing Zone(NIMZ), Zaheerabad and further requested that the additional node at Manchirialunder Hyderabad – Nagpur corridor be considered for sanction of funds.

“It is, therefore, requested to include the budget to the extent of at least ₹2,000 Crores for each of the above nodes(2,000 X 3 nodes = 6,000 Crores) under Hyderabad -Warangal, Hyderabad -Nagpur and additional node at Mancherial in the budget estimates for 2022-23 of your esteemed Ministry and oblige,” he said.

In the letter regarding funds for industrial corridors, KTR requested her to include an allocation of at least Rs. 1500 crore for Hyderabad-Bengaluru (HBIC), Hyderabad-Vijayawada (HVIC) industrial corridors, which the state government is very keen to take up.

KTR requested Nirmala Sitaraman to include the city of Hyderabad in the Defence Industrial production corridor that she had recently announced. “I would like you to consider including Hyderabad in the proposed Defence Industrial Production Corridor to augment and support the growth of Defence manufacturing from the State of Telangana,” he said.

“The State already has a vibrant ecosystem in the private sector with several established companies in Aerospace and Defence sector. Several private firms such as Tata Advanced Systems Limited, MTAR, ATL, SEC, ASTRA, VEM, ZEN, HBL, PEL, IDL, etc. have established themselves as manufacturing partners for domestic and foreign OEMs. Several prestigious National Defence and Space programmes were supported by Telangana based industries,” he added.

The industries minister in another letter asked for necessary support for the development of the Hyderabad Pharma City which has already been approved as per the National Investment and Manufacturing Zones (NIMZ) scheme of the Central government.

As per this, KTR requested an allocation of Rs 50 crores for the overall concept level masterplan, Rs 1399 crores Towards Road Linkages, Water Supply, Power Supply, Rail Connectivity and Air Strip / Heliport and Rs 3,554 Crores towards ZLD based CETP (INR2023 Cr), Solid Waste Management Facility, internal roads, power infra, water supply, stormwater drains, site development and landscaping.

“I would like to reiterate that Hyderabad Pharma City promises to position India as the global manufacturing hub for pharmaceuticals. In order for the project of this nature and scale to succeed, it is imperative to have strong support from the Government of India,” he said.

UK startup One Moto to invest Rs 250 crore in EV, battery facility in Zaheerabad

Hyderabad: British EVtech startup One Moto will be investing Rs250 crore in setting up an electric vehicles and lithium ion battery manufacturing facility at the Zaheerabad National Investment and Manufacturing Zone (NIMZ) in Telangana.

The facility, to be spread over 15 acres, will have major automation integration with additional semi-robotics, and latest manufacturing machinery to produce cutting edge products and is expected to become operational by the end of the year.

It will have a capacity to manufacture around 40,000 bikes per annum in phase 1, going up to around one lakh EVs per annum over the next two years, One Moto India partner and promoter Muzammil Riyaz said on Monday.

One Moto’s India manufacturing facility will not just cater to the domestic EV market but will also ship to exports markets as well.

The facility will also make Li-ion batteries starting with a capacity of around 50,000 batteries per annum and scaling up to around 2 lakhs per annum capacities in future, Riyaz said, adding that the company is also working towards acquiring a batter tech startup in the future.

Currently, the 3 year old startup is assembling around 1,000-1,500 bikes on a monthly basis in Hyderabad. “We are currently doing CKD (completely knocked down) assembly in Hyderbad. We import the kits from China and UK. But once the new facility goes operational we will be manufacturing everything from scratch in India”, he explained

The proposed plant in expected to generate around 500 direct jobs and provide indirect employment to about 2,000 people. One Moto also inked an MoU with the Telangana Govt. for the facility on Monday.

Zaheerabad becomes new investment destination

The unit to be spread over 511 acres will be established with an investment of about ₹ 1,000 crore and the work is expected to be completed in the next five years. The facility will manufacture end-to-end next generation weapons system, including missiles, radars, fighter planes and helicopters. The industry is expected to provide employment to about 2,000 people.

Four months earlier, on June 24 electric vehicles manufacturing giant from United States — Triton — signed an agreement with the State government for setting up a manufacturing unit at Yelgoi. The company proposed to establish ultra-modern electric vehicles manufacturing unit at an estimated cost of ₹ 2100 crore. The company manufactures mini trucks, sedans, luxury SUVs and rickshaws. Once completed the Triton is expected to provide employment for about 25,000 persons. A team from Triton accompanied by the Telangana State Industrial Infrastructure Corporation (TSIIC) Vice-Chairman and Managing Director E.V. Narasimha Reddy visited Yelgoi recently to examine the area that was proposed to be allocated to them.

Yelgoi is one of the 17 villages in both Jharsangam and Nyalakal mandals that constitute the upcoming National Investment and Manufacturing Zone (NIMZ).

These two developments have attracted many and investment in land has been increasing. For instance the land rates, that was about ₹ 2 lakh and ₹ 3 lakh per acre in around Yelgoi, have sky-rocketed and one can see vehicles carrying investors from far off places at the registrations section of the Mandal Revenue Office. The present rate was put between ₹ 30 lakh per acre and ₹ 50 lakh per acre, depending on the location and access to the place. Several real estate ventures with huge boards have also sprung up near NIMZ.

Triton EV team visits NIMZ Zaheerabad site for upcoming Rs 2,100-crore unit

Hyderabad: The leadership team of Triton EV, which is going to set up its Rs 2,100-crore electric vehicle (EV) manufacturing facility at NIMZ Zaheerabad, has visited the site and further land related procedures will ensue shortly.

The Government of Telangana and Triton EV entered into a memorandum of understanding (MoU) on June 24th, 2021. According to the MoU, Triton agreed to set up a world-class EV manufacturing facility with an investment of Rs 2,100 crore. The industrial park layout of NIMZ Zaheerabad was discussed in detail virtually and few plots were identified for the facility.

The Triton team comprising CEO and chairman Himanshu Patel, India Development head Mohammad Mansoor and Triton associate Akbar Rasheed met Telangana Industries minister KTR to take the discussions forward. Principal secretary Jayesh Ranjan and director-Automotive Gopalakrishnan VC were present in the meeting.

On minister KTR’s insistence, the Triton team was taken to the site at NIMZ Zaheerabad in a chopper and the plots were physically inspected. TSIIC VC and MD Narasimha Reddy also accompanied the Triton team during the site visit.

Triton is looking to construct their facility and get products out at the earliest to reduce the carbon footprint in transportation space.

Triton team meets Telangana minister over land for proposed plant

The Triton team comprising CEO and Chairman Himanshu Patel, India Development Head Mohammad Mansoor and Triton associate Akbar Rasheed met the minister, in the presence of Principal Secretary Jayesh Ranjan and Director Automotive Gopalakrishnan.

Hyderabad: Officials from the Triton Electric Vehicle on Thursday met Telangana’s Industry Minister K.T. Rama Rao to take the discussion forward for setting up a world-class EV manufacturing facility in state with an investment of Rs 2,100 crore.

The Triton team comprising CEO and Chairman Himanshu Patel, India Development Head Mohammad Mansoor and Triton associate Akbar Rasheed met the minister, in the presence of Principal Secretary Jayesh Ranjan and Director Automotive Gopalakrishnan.

The meeting took place a day after a Triton team visited the National Investment and Manufacturing Zone (NIMZ) at Zaheerabad in Sangareddy district.

According to an official release, at the minister’s insistence, the Triton team was taken to the site at NIMZ Zaheerabad in a chopper and the plots were physically inspected.

The vice-chairman and managing director of Telangana State Industrial Infrastructure Corporation (TSIIC), Narasimha Reddy, also accompanied the Triton team during the site visit. Further land related procedures will ensue shortly.

Triton is looking to construct its facility and get the products out at the earliest to reduce carbon footprints in the transportation space, said the statement.

The Telangana government and Triton EV had signed an MoU on June 24, 2021. According to the MoU, Triton has agreed to set up a manufacturing unit for electric vehicles in the state.

The industrial park layout of NIMZ Zaheerabad was discussed in detail virtually and few plots were identified.

It was then announced that the project will employ more than 25,000 people and manufacture 50,000 vehicles over the first five years, including semi-trucks, sedans, luxury SUVs, and rickshaws.

Expert panel defers green nod for NIMZ

An Expert Appraisal Committee of the Union Ministry of Environment, Forest & Climate Change has deferred decision on environment clearance for the Zaheerabad National Investment and Manufacturing Zone (NIMZ).

It did so, citing the need for additional documents and information on various aspects, including land acquisition, protection of trees – around 2,300 trees are envisaged to be cut – as well clear demarcation of industrial units based on their category as per pollution norms.

An ambitious project, the NIMZ has been proposed on 12,635 acres in Nyalkal and Jharasangam mandals, near Zaheerabad, in Sangareddy district.

Project proponent Telangana State Industrial Infrastructure Corporation said the land came under 17 revenue villages and mostly comprise barren and vacant lands with a few pockets of farmlands.

Detailed deliberation

The EAC meeting on March 17-18 had detailed deliberation on the submissions made by TSIIC before deciding to defer the proposal, minutes of the meeting said. On land acquisition, the committee said many representations on land acquisition and compensation paid had been received by the Union Environment Ministry. In this backdrop, it wanted the Ministry to forward the representations to TSIIC so that a “detailed response in a tabular form [can] be submitted on the issues raised. An elaborate report on land acquired, compensatory details and the period for settlement has to be sorted according to the State government Policy,” the EAC said.

Referring to the norms, the EAC asked TSIIC to list activities needed for implementing the commitments made during the public hearing, of the project, with cost estimates in the Environment Management Plan and submit it as part of Environment Impact Assessment report to the Ministry. Calling for a greenery and conservation management plan to sustain existing greenery, the EAC said all tall, old and heritage native trees should be enumerated, GPS-tagged and detailed in EIA EMP.

The “plotting design should be such that all such trees are protected,” it said.

TSIIC had said about 2,300 trees were envisaged to be cut. The total green area planned is 1974.4 acres (15.6%) under layout periphery green belt, traffic rotaries, green buffer areas and open green spaces. Also, 33% of each industrial plot is to be maintained as green belt as per TSPCB guidelines.

Around 8.87 lakh trees are proposed to be planted in NIMZ and their survival is to be monitored frequently. The rate of survival during operational phase will not be less than 80%.

A capital cost of ₹13.5 crore is to be earmarked for this purpose and ₹60.75 lakh allocated for recurring expenses towards green belt development and maintenance,” TSIIC said.

Recommending a detailed risk assessment and management of the project, the EAC meeting said since “hamlets proposed in the industrial area would lead to a negative impact [their] settlements have to be planned in a safe zone and a modified plan be submitted. It wanted phase-wise industrial planning submitted and since automobile industry – one of the many industries proposed in the NIMZ – should be engaging in painting activity, which comes under Red category, all industries need to be clearly demarcated.

Zaheerabad NIMZ: Telangana takes a leap in attracting industry, talent

HYDERABAD: With the Pharma City project gathering steam, the Telangana government is now sharpening focus on the Zaheerabad NIMZ (National Investment and Manufacturing Zone) to boost the manufacturing sector in the region. The Pharma City project too was accorded NIMZ status and the state government has already received environmental clearance for it.

“We are commencing the environmental impact assessment process later this month,” Telangana IT and industries principal secretary Jayesh Ranjan said. “Once the environment assessment is completed, work on development of infrastructure will commence,” he said, adding that the public hearing is scheduled for January 20 and officials will explain pollution-related safeguards to the villagers.

The state government had recently requested the Centre to allocate Rs500 crore for Phase I development of the project.

Ranjan said that it is only after the environmental clearance that the state government will be able to provide land to investors.

Land in Zaheerabad NIMZ can be offered at a much lower rate, approximately 50% lower as compared to land in Pharma City, because it is in the rural area, Ranjan said.

Currently, only around 2,900 acres of the total 13,500 acres earmarked for the project is in possession of the state government and it expects to acquire the rest this year.

Ranjan pointed out that apart from attractive land prices, Zaheerabad NIMZ scores very high in terms of road, rail, port as well as air connectivity, and the region also has a good mix of talent availability due to the presence of many industries in nearby areas.

Even as the state government bets big on NIMZ projects, professor Chandan Chowdhury, senior associate dean at the Indian School of Business, said, “To make our NIMZ successful, we need to think beyond traditional interventions and focus on promoting R&D and digital innovation. The government shares 50% of the total expenditure for filing for an international patent to encourage innovation in NIMZ. Such initiatives will help manufacturing companies within NIMZ to drive strategies for global competitiveness.”

Adil Zaidi, partner and leader, economic development advisory, EY India, said that post Covid-19, it is essential to ensure enough provisions for workers’ accommodation and social amenities for them to live within the manufacturing zone. This will reduce the cost of manpower for industries, as well as help tackle large-scale labour migration, he said.

“NIMZs have the potential to foster a collaborative working model between different players along the value chain,” Zaidi said. “For this, the need of the hour is to provide various statutory approvals at NIMZ level, along with plug-and-play infrastructure for key sectors such as ESDM, food processing, and textiles, among others, so that the overall cost of doing business for manufacturing units reduces and India becomes competitive.”

Allocate funds for Pharma City and NIMZ, KTR writes to Piyush Goyal

Telangana Information Technology and Industries Minister KT Rama Rao asked Union Commerce and Industry Minister Piyush Goyal to allocate special funds for projects such as Hyderabad Pharma City (HPC), National Industrial Manufacturing Zone (NIMZ, Zaheerabad) and National Design Centre (NDC) in the Union Budget for 2021-22.

He also asked Goyal to allocate funds for setting up of an industrial corridor in the State.

The estimated project cost for taking infrastructure development in the two nodes at HPC and NIMZ is put at  3,000 and  2,000 crore respectively.

“We are very keen to take up the development of these two projects on a fast-track basis. We request you to allocate at least 50 per cent of the project cost in the budget estimates for 2021-22,” he said in a letter to the Union Minister on Wednesday.

He said the HPC was being developed in tune with the Centre’s ‘Make in India’ and ‘Atma Nirbhar Bharat’ initiatives. It would consolidate India’s leadership position in the pharmaceutical sector. It has the potential to attract investments to the tune of 64,000 crore and generate 5.6 lakh jobs, the Minister said.

“We seek 4,922 crore from the Union government for the development of external and internal infrastructure. We request you to allocate 870 crore for HPC in the upcoming budget,” he said.

For the 9,500-crore NIMZ project at Zaheerabad, he asked the Centre to initially release 500 crore for the developmental works in the first phase.

With regard to the National Design Centre (NDC), he said the State has already submitted a Detailed Project Report with inputs from all National Institute of Designs (NIDs).

“We are very keen to develop this unique institution in Hyderabad and have also identified 30 acres on the University of Hyderabad campus. This land will be offered free of cost by the State,” he said. He wanted the Union Government to allocate 200 crore in the upcoming budget to start work on the project.

 

KTR seeks Rs 4,070 cr for TS industrial projects in Union Budget 2021-22

IT and Industries Minister KT Rama Rao on Wednesday requested the Union government to allocate at least Rs 4,070 crore as special funds for major projects like Hyderabad Pharma City, National Industrial Manufacturing Zone (NIMZ)-Zaheerabad, National Design Centre (NDC) and for establishment of an Industrial Corridor in the State.

The Minister wrote to Union Commerce and Industry Minister Piyush Goyal in this regard, seeking budgetory allocations for these projects in the Union Budget 2021-22.

Thanking the Ministry for including Hyderabad–Warangal and Hyderabad–Nagpur Industrial Corridors in the National Industrial Corridor Development and Implementation Trust (NICDIT), Rama Rao said the estimated project cost for taking up infrastructure development in these two nodes was about Rs 3,000 and Rs 2,000 crores respectively. Pointing out that the State government was keen on developing these two projects on the fast track mode, he sought allocation of funds to the extent of at least 50 per cent of the project cost in the budget estimates for 2021-22.

The Minister said that the State government was developing Hyderabad Pharma City (HPC) as the world’s largest integrated pharma park to promote domestic manufacture of pharmaceuticals in line with the ‘Make in India’ and ‘Atma Nirbhar Bharat’ initiatives of the Union government and to consolidate the leadership position of India in the pharmaceutical sector.

“The project is envisaged to become a first-of-its-kind featuring state-of-the-art infrastructure comprising common facilities including Zero Liquid Discharge (ZLD) based Common Effluent Treatment Plant (CETP), integrated solid waste management facility, district heating and cooling systems, logistic parks, Global Pharma University, regulatory facilitation cells, common drug development and testing laboratories, and Startup/SME Hub, among others,” he said.