Caparo group, which supplies aerospace components to global aviation companies, also plans to develop aerospace park in Andhra Pradesh. "Depending on the feedback from the market, we will take up more projects," Angad Paul said after a meeting with the chief minister in Hyderabad Wednesday.

YSR, as the chief minister is popularly known by his initials, assured all support to the group and said the government was determined to take the state to the number one position in the country in attracting industrial investment.

He said the government was keen to develop Nellore district as a major growth centre because of its strategic location. An international leather complex is being set up at Krishnapatnam, a 4,000 MW ultra mega power project and a kisan (farmers) SEZ are among major projects coming up in Nellore.

The south coastal district has the advantage of being in close proximity to Tamil Nadu, which has many automotive plants.

According to the Reserve Bank of India (RBI) report released in August, Andhra Pradesh stood second after Gujarat in attracting investment. The state received investments worth Rs.251.73 billion during 2006-07.