IPAN: Chandrababu Naidu, Architect of India's Hi-tech Revolution, to Set Up Shenzhen-style Economic Zone in New York, On February 5, to Woo Investors.

Business Editors

HYDERABAD, India--(BUSINESS WIRE)--Jan. 30, 2002

N Chandrababu Naidu, Chief Minister of the Indian state of Andhra Pradesh, arrives in the US on February 5, to seek investment for an innovative economic zone in the state.

Andhra Pradesh has played a key role in driving the crucial US-India hi-tech partnership over the last decade.

The Andhra Pradesh Special Economic Zone (APSEZ), a 9,000-acre, duty-free, commercial enclave near the port city of Vishakhapatnam, will offer world-class infrastructure and support services to corporations.

KPMG, the leading international accounting and consulting firm, is the strategic advisor to the project. The policy framework of the SEZ is being developed by Infrastructure Leasing and Financial Services Ltd, a premier Indian financial institution that specializes in private infrastructure development.

Andhra Pradesh Industrial Infrastructure Corporation Ltd (APIIC) is the nodal agency for developing the Zone.

Mr Naidu will tap the US market for partners to design, finance, market and operate APSEZ, whose first phase alone will cost an estimated US$500 million. He will meet with business leaders and financiers in New York.

The APSEZ has been designed along the lines of Shenzhen City in China. Some years ago, a Special Economic Zone was established in Shenzen. Today, it is one of the most dynamic commercial regions in the world. Shenzhen flourished because its government succeeded in creating an ideal business environment for foreign investors. Mr Naidu is working towards the same goal.

The SEZ offers significant incentives to corporations. It provides substantial tax benefits, including complete exemption of state taxes such as sales tax, value-added tax and state duties. A multipurpose port will come up near the Zone and a new international airport in the state's capital, Hyderabad.

Mr Naidu will present the blueprint of the project on February 5, between 11 am and 12:30 pm, at the Majestic East and West, Rihga Royal Hotel, 151 West 54th Street, New York. He and his team, comprising Mr K Vidyadhar Rao, Minister for Major Industries in the state government; Mr MVS Prasad, Managing Director, APIIC; and Mr T Krishna Prasad, Executive Director, APIIC, will be available to meet journalists at the same venue after the event.