Proposed 24K Crore Investment of AP Going to Maha or Gujarat?

Asian Paper and Pulp, a subsidiary of Sinarmas, is one of the largest industrial houses in Indonesia had signed an MOU with Andhra Pradesh Government in 2018. According to that, APP will invest Rs 24,000 crore ($3.5 billion) in its proposed pulp and paper manufacturing unit at Ravuru in Gudluru Mandal of Prakasam district.

It is supposed the single biggest FDI so far in the country. The project with a capacity of 5 million metric tonnes per annum will be the largest unit of APP at a single location. The unit was supposed to come up in 2,471 acres of land and generate 4,000 direct and 12,000 indirect jobs.

A few months ago, there were reports that the company is no longer interested in investing in Andhra Pradesh but the State Government released Press Statement saying that it is malicious propaganda and added that the government is in active contact with the senior management of Asian Pulp and Paper Company on a regular basis assisting them in making their final investment in AP.

The latest update is that the company has stopped responding to the letters of the State Government, according to a report in Eenadu. There are some reports that the company management is in talks with the states of Maharashtra and Gujarat for moving the proposed plant there.