Asia Pulp and Paper to invest Rs 24K crore in Prakasam paper unit

The first phase of the project is expected to be completed along with Ramayapatnam port, which will be constructed by the Andhra Pradesh government at an investment of Rs 5,000 crore.

Published: 10th January 2019 08:43 AM  |   Last Updated: 10th January 2019 08:43 AM   |  A+A-

Chandrababu Naidu

Andhra Pradesh CM Chandrababu Naidu (File | EPS)

By Express News Service

VIJAYAWADA: Chief Minister N Chandrababu Naidu has said the twin projects of Ramayapatnam port and Asia Pulp and Paper (APP) industry will be a game changer for Prakasam district. He unveiled a pylon marking the launch of the port project and oversaw the exchange of Memorandum of Understanding (MoU) between Andhra Pradesh Economic Development Board and APP on Wednesday.

APP, a subsidiary of Sinarmas, is one of the largest industrial houses in Indonesia. Suresh Kilam, Executive Director of APP, and J Krishna Kishore, APEDB CEO, signed the MoU.APP will invest Rs 24,000 crore ($3.5 billion) in its pulp and paper manufacturing unit at Ravuru in Gudluru mandal of Prakasam district. It is the single biggest FDI so far in the State, perhaps in the country in recent times.

The project with a capacity of 5 million metric tonnes per annum will be the largest unit of APP at a single location. The business operations of APP are spread over 120 countries across the world. Its total production capacity is 18 million tonnes per annum.The APP unit in Prakasam district will come up in 2,471 acres of land and generate 4,000 direct and 12,000 indirect jobs. It will be completed in two phases.

The first phase of the project is expected to be completed along with Ramayapatnam port, which will be constructed by the Andhra Pradesh government at an investment of Rs 5,000 crore. APP has been allocated two out of the eight berths of the port as captive berths.

Chief Minister N Chandrababu Naidu unveils pylon for Ramayapatnam port in
Prakasam district on Wednesday |  Express

Speaking on the occasion, Naidu said the location chosen by APP for its unit is well connected with rail, road and air. Like never before, both the port and paper industry are coming up at the same time, which will ensure stable business for the port and at the same time will provide a better transport facility for the industry. “Most importantly, it will benefit 50,000 farmers in the district. The paper industry is dependent on pulpwood like subabul and eucalyptus,” he said and asked the APP management to commence operations in 18-20 months instead of the proposed 30 months.  

APP ED Suresh Kilam promised to commence operations at the earliest. He said APP, with its headquarters in Jakarta, was founded in 1978 with 10,000 MT production capacity and over the years it expanded as a premier industry. “Pulp and paper consumption in India is bound to increase from the present 18 million tonnes to 40 million tonnes in the coming years. We scouted eight locations, including Gujarat and Maharashtra, for setting up the unit, but zeroed in on Prakasam,” he said.

‘Win-win for farmers’    

Pointing out at Amaravati farmers giving 34,000 acres of land for the capital city, Naidu  sought cooperation from the ryots in land acquisition for both paper industry and the port. It is a win-win situation for  farmers, he said.

Paper unit to create 4,000 direct jobs

  • APP, a subsidiary of Sinarmas, is one of the largest industrial houses in Indonesia
  • Rs 24,000 crore to be invested at Ravuru in Gudluru mandal of Prakasam district is the single largest FDI so far in the State
  • Rs 15,000 cr invested by Kia Motors was second highest FDI in AP   
  • The project with a capacity of 5 million metric tonnes per annum will be the largest unit of APP at a single location
  • 4,000 direct and 12,000 indirect jobs to be generated by APP unit,  which will come up in 2,471 acres of land
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