Debt-ridden Andhra Pradesh woos investors: Foxconn, Brookfield Corp, Suzlon Energy set to invest in state

Top global players, including Foxconn, Brookfield Corporation and Suzlon, are set to invest in Andhra Pradesh as the N Chandrababu Naidu-led government steps up efforts to attract investment to the debt-ridden state.

Foxconn, a Taiwanese multinational electronics contract manufacturer, is likely to set up manufacturing facilities in Andhra Pradesh. Foxconn India representative V Lee met the state's IT minister Naresh Lokesh in Amaravati on Monday to discuss investment plans.

The minister told the Foxconn representatives that a novel electronics policy will soon be formulated. "Since you are planning to expand your activities across India, I want you to establish, not a merely one more unit but a mega manufacturing city in the state. We will extend all cooperation for this," said Lokesh.

Suzlon Energy, which develops renewable energy solutions, is looking to expand its wind turbine manufacturing facility in Andhra Pradesh. The company is looking at an investment of up to Rs 300 crore. According to sources, top representatives of the company will meet Naidu this week.

Brookfield Corporation, one of the largest investment management companies globally, is slated to hold meetings with Naidu and government officials on Tuesday to take forward various investments in the state.

Apart from this, the Oberoi group has decided to set up five hotels in Amravati, Visakhapatnam, Tirupati, Gandikota and Horsely Hills. While sites have been identified at four locations, the government is yet to identify land in Amravati.

The Naidu government is looking at private investments to re-energise the state economy and deliver its poll promise of providing 20 lakh jobs over the next five years. Official data shows Andhra Pradesh's public debt has risen from 31.02 per cent of the Gross State Domestic Product (GSDP) in 2019-20 to 33.32 per cent in 2023-24, indicating worsening fiscal health over the last five years. In the recently-concluded Assembly session in July, Naidu said the government would take two more months to present the Budget due to "financial constraints."

On Monday, Naidu was in Tirupati to inaugurate projects and sign memorandums of understanding for investment worth ₹3,700 crore.