Something to cheer about: Vizag gets biz boost

By SNV Sudhir

Visakhapatnam, Oct 25: In a welcome development, finally Vizag joined the league of country’s top investment destinations along the likes of big metro cities Banglore, Chennai, Mumbai and Hyderabad. Until now it was only Hyderabad which was always seen as the city with investment potential in Andhra Pradesh from the global and national perspective.

 Global Initiative for Restructuring Environment and Management (GIREM), a non profit industry body, which had surveyed various investment potential cities across the country, had ranked Vizag at 21. Though Vizag is the last among the cities that were given ranking, the report is expected to generate interest among the investors to open ventures in the city which is strategically located on the east coat with two private ports and one in the public sector.

GIREM works in the areas of urbanization and future cities, with focus on providing eco-socio infrastructure for businesses to operate and flourish.

The report also assumes significance at the time when the state is mired in controversies.  Seemandhra is witnessing fierce agitations after the union government decided to bifurcate Andhra Pradesh and Vizag vying to be the capital of residuary state.  

The report rated the cities based on 16 parameters such as human capital, energy, water, transport, housing, healthcare, climate, office space availability, schools and colleges, getaways, malls and multiplexes, ability to attract talent and city culture. These constitute the basic eco-socio-economic factors critical in determining the growth of the city.

Vizag scored 111.68 out of the 160 points whereas Banglore which topped the list scored the highest points of 129.56, followed by Chennai -127.84, Mumbai- 123.64 and Pune 122.64. These cities emerged as the first four most preferred business destinations in the country.

“Vizag stands at 21st position in terms of attracting investors, in spite of facilities like International airport and railways. Even small cities like Bhubaneshwar and Calicut are placed better. Why? Because the idea of Brand Vizag is still missing. Most people when I say I hail from Andhra Pradesh instantaneously say Hyderabad. Which personally I hate and I explain them that I am from the best city in Andhra Vizag. Vizag has a lot of potential but our politicians have not done much,” observed Surya, an MBA graduate.

GIREM observed that Vizag has good water supply, schools and colleges, better health care services and availability of helping hands. But, the remaining 11 parameters scored low for the city, which needs to be addressed soon otherwise the city will lose the opportunity to attract investments. Parameters like city culture, malls and multiplexes, climate, housing had got 40 percent shortfall of the individual scores.

The industry body also observed that the recent political and administrative disturbance has created lot of ripples across the industries.

At present, most of the functioning of the government is stalled because of the Telangana issue which is not only hampering day to day business, but also the confidence in the city in the minds of the investors outside, the report said.

However local industry heads are hopeful about the future of the city. “Vizag has this advantage of strategically located on the east coast midway between Kolkata and Chennai and is well connected by rail, air, road and sea. There is huge scope in investments into export and import oriented units once PCPIR and ITIR take off. If at least two to three international flights are launched investments will just  pour into Vizag by the MNCs,” Confederation of Indian Industry (CII), Vizag chapter, chairman, G Sambasiva Rao told this correspondent.