Amaravati Japan

7/25/2019 Amaravati Japan

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Japans initial proposal forAndhra Pradesh(AP)

New Capital City development

PricewaterhouseCoopers Co., Ltd.Nikken Sekkei Ltd.

2015/3/31


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Disclaimer

This content is for general information purposes only, and should not be used as a substitute for

consultation with professional advisors.


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Exploring seamless value chains across the Indo-Pacific Region

1. Japan and Andhra Pradesh can take the lead of economic integration in the inter-connectedIndo-Pacific region.

2. More enhanced connectivity in the Indo-Pacific region will be significantly contributing tothe Indian Governments policy goal of Make in India as well as development ofinternational trade and investment of Japan, India and other Asian countries. It is cruciallyimportant to explore industrial and production networks, transport and logistics networks,and enhance value chains across the Indo-Pacific region.

3. The strong partnership between the Japanese Government and the State Government ofAndhra Pradesh will encourage Japanese companies in more investment and trade in

Andhra Pradesh.Urbanization rate : about 32%

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Why Japan? From burnt field to abundant society

AP is in a very similar economic position as Japan 50 yearsback, namely there are unlimited opportunities and potential

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5,000

10,000

15,000

20,000

25,000

30,000

35,000

GDP per capita (USD) Urbanization rate (%)Growth of Kanagawa Prefecture*

*Kanagawa Prefecture is one of the districts ofJapan, including the Yokohama city.

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2. Subway

1. Highway

5. Bay bridge

3. New residential town (Kohoku)

6. Central Business District (Minato-Mirai 21)

4. New industrial & residential area (Kanazawa)

Waste (3R)

The 6 strategic projects

planned in 1965

Smart City

Urban development history in Yokohama city

GDP per capita : about 1,500 (USD) Urbanization rate : about 32%Current Indias situation (2013)

Burnt field (1945)

Source: Y0kohama City International Affair Bureau Home Page (http://www.city.yokohama.lg.jp/kokusai/en/)


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New capital development can be a model for inclusivedevelopment as Peoples Capital ; Japan is a right partner

Farmers

Old & retired

Local Gov.

Foreigners

Investors

IT skilled Students

ResidentsLocal

Companies

Governmentofficers

Disabled

Mothers/infants

Peoples Capital

Inclusive growththrough dialogues

Japan is a worldleader in

promotinginclusive growth

by using anddeveloping

technology

1873 575

38500

1500

Japan India

Per capita GDP ($US)

1950 2014

Why Japan? Peoples capital

Source: Nationmaster (http://www.nationmaster.com/country-info/profiles/India) 6


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Phase 1

Connect the dots

Phase 2

Establishmultipolar

Phase 3

Holisticdevelopment

Connect the core areas with high-qualitytransportation system

Form multipolar as the foundations of development

Develop the area holistically with enhancement ofentire eco system

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PLAN

ACTION

DO

CHECK

Japanese cities have developed a unique approach ofMultipolar and holistic development to achieve sustainableand resilient cities

Why Japan? Peoples capital


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Guntur

Tirupati

Tourism

KrishnapatnamIndustry and trading

Agri business Exporting gate

Machilipatnam

Vijayawada

Industry

Farmers

Tourist

Foreign Manufacturer

Manufacturer

Trading

IT experts

Students

Why Japan? Multipolar and holistic development

Japan will partner with AP for the multipolar and holisticdevelopment of the AP state, leading to the improvement of all

the peoples lives

Strategic accumulationof Japanese factories

Port & Roadsdevelopment

Connectivity projects &core infrastructures

Collaborativedevelopment askey port

Agri bizexpansion

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Industry

Sricity

IT experts

New Capital

Urban and Utilitiesmanagement

IT technology & Port centricdevelopment through

Sagarmala project

Visakhapatnam

HyderabadKey Urban center and

Industries basePetroleum, Chemicalsand Petrochemicals

Investment Region

Kakinada

Key industrial nodeKey industrial node

Source: Government of Andhra Pradesh(http://www.ap.gov.in/)


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1960Master Plan

for 40 km sq area

1969Kashima

Port

1973Opening of theindustrial zone

160companies22,000jobs

1970Kashima

Rail

Present

1991Professionalsoccer team

2002FIFA

World Cup

Fromsmall fishing villageHosting the FIFA World Cup

Icon of Japanesedevelopment

Tothe Largest industrial zone in Ibaraki

Transportationinfrastructures

Source: Kashima city Home Page (http://www.city.kashima.ibaraki.jp/)

Why Japan? Experience in Development from zero

Kashimas experience in developing the coastal area from asmall fishing village to a large industrial zone can provide a

model for comprehensive development

Railway

Port

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Yomigaeru Daichi

Kashima Paradise


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KyotoUniv

KPR

RitsumeikanUniv

NijoCastle

Honganji

temple

TojiTemple

Kiyomizudera

templeDaigojitemple

UjigamiJinja

Kamigami

jinja

Historical Heritage

Advanced facilities

Master plan of Kyoto City (2001-2010)

Peaceful life-Human right promotion with sustainable life-Resilient city building

-City promotion with transportation

Prosperous city-Beautiful city promotion with waste reduction-Promote collaboration b/t culture and technology-Incentive to key players in advanced industry

Aiming to build relationships of deep trustwith citizens-Re construct the key infra for more efficiency-Promote citizen participation into the city planning-Enhance public service system through IT

Kyoto University- 9 No bel prize winnersrelated to the univ.

Kyoto Research Park340 ventures

Regulations to preserve the landscape

Tradition & Culture Innovation & Technology

Population : 1.5 million (6thin Japan)GDP : 6.3 trillionyen (6thin Japan)Manufacturing : 2.4 trillionyen

(10thin Japan)

# of World heritage : 17# of temples & shrines : 2493# of tourists : 51 mil people/year

Tourism industry:700 bil yen/year

Core economic zone in JapanThe Soul of Japan

Source: Kyoto City Home Page(http://www.city.kyoto.lg.jp/)

Why Japan? Experience in Cultural Creative City

Also the Kyoto experience of Cultural Creative Citycan be a model to maximize the great value of cultural asset

of the new capital region

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Nintendo OMRON KYOCERA ROHM GS Yuasa etc.


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Japan as a Partner

Japan will position AP as a core partner of the political &economic corridor the Sunrise corridor to achieve thesustainable growth and eco-system in the Indo-Pacific

Andhra PradeshSunrise Capital

Japan Country where sun rises

The Sunrise corridor of the Indo-Pacific

where People rise to maximize their valuesand capabilities in an egalitarian society

where Companies rise to developsmart solutions for a sustainable society

where Governments rise for the Indo-Pacific where peace and prosperity are achievedwith non-violence 12


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Why Japan as Partner

Japans Proposal for the New Capital City

Goal and Next steps


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JapansProposal for the New Capital City

Japan can provide the out of the box approach and createsynergy with Master Plan in a state-wide & inclusive way

How to synergize the developmentsof coreand surrounding area in the capital region

How to stimulate the development bynetworking & connecting within/outside thecapital region

How to leverage smart solutions to expandthe existing business in the capital region

How to provide opportunity to grow tovarious types of existing and new residents in thearea

How to prepare the fund to finance thevarious projects

1 . Multipolar and holisticplanning

2. Connectivity and smartinfrastructure

3. Integrate Old & New

4. Inclusive growth

5. Multiple sources of funding

7. AP/JP joint development andcapability sharing

How to partner local people, companiesand Japan to achieve common goals

ProposalsKey areas for synergy

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How to attract global industries to provideemployment opportunities

6. Make in AP,Supported by JP


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Proposal 2. Connectivity & smart infraConnectivity to the other existing cities will enhance thesmooth flow of people, then energizing the business

MRT connectivity withexisting cities

Connectivity with newport Machilipatnam

Connectivity with otherMetropolitan areas

Smooth flow of people

within and with outsidethe capital regionpromotes holistic

business development

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Proposal 2. Connectivity & smart infraTransit Oriented Development(TOD)

Urban structure with connectivity & linkage, and High-densitycompact development will enable the holistic development


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Urban structure withconnectivity & linkage

High-density compactdevelopment around stations


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Proposal 2. Connectivity & smart infra TOD exampleThe integrated station city development will

further enhance the value of the city

Source: APEC LCMT project phase, Tianjin, China


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Proposal 2. Connectivity & smart infra Smart infra example2To make the life more efficient and comfortable, Japanesecompanies can provide various solutions (2/3)

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Intelligent watermanagement

Waste to Energysolution

Water Waste

Hitachi Zosen CorporationJFE Engineering Corporation

Hitachi, Ltd.Hitachi Zosen Corporation

JFE Engineering CorporationTOSHIBA CORPORATION

Note: The companies shown are attendees of NEDO Site tour of March/5-6 2015

Source: New Energy and Industrial Technology Development Organization

Seminar: "Expanding Technology Cooperation for Smart Community inAndhra Pradesh, India (http://www.nedo.go.jp/english/event_20150304-06.html)


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Proposal 2. Connectivity & smart infra Smart infra example3To make the life more efficient and comfortable, Japanesecompanies can provide various solutions (3/3)

Safe & speedylogistics services

Logistics

Resilient infra &buildings

BCP

Physical and logicalsecurity solutions

Security

Marubeni CorporationKonoike Transport Co., Ltd.

NEC CorporationOMRON Corporation

JGC CORPORATIONKajima Corporation

SHIMIZU CORPORATION

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Note: The companies shown are attendees of NEDO Site tour of March/5-6 2015

Source: New Energy and Industrial Technology Development Organization

Seminar: "Expanding Technology Cooperation for Smart Community inAndhra Pradesh, India (http://www.nedo.go.jp/english/event_20150304-06.html)


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Japans Proposal for the New Capital CityProposal 3. Integrate Old & New - Advanced tourismAdvanced tourism can be a new business opportunity for theNew Capital Region

ChathurmukhaBrahma Temple

Amaravathi

Durga Temple

VijayawadaAirport

Sample route of the bus tour

Augmented Reality Projection mapping Multi language guidance

App

DB

Push advertising based on theGPS information

GPStechnology

Guntur

Vijayawada

Heritage Touraround the New AP Capital

NewCapital

Various applications tosupport

Tour coordination supportfrom Japan experts

Source: Government of Andhra Pradesh Home Page ((http://www.ap.gov.in/), MLIT Home Page (http://www.mlit.go.jp/en/index.html)METI Strategy Council report on the development and promotion of bus vehicle: Re-design of Bus (http://www.meti.go.jp/english/press/2014/1117_01.html) 22


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Proposal 4. Inclusive growth Agricultural innovationJapanese companies can also contribute to development ofagri-business with Japan original unique know-how

Technology forbetter productivity

Expertise forbetter products

Enhancement ofprocess/logistics

Materials

Services Functions

Agri business

23Note: Companies shown are cited from JETRO report (Japanese company operating in India in 2013)

Ajinomoto KagomeKMB

Investment Singapore) KikkomanYakult etc.

Komatsu Kubota MitsubishiAgriculturalMachinery

Yanmar Iseki etc.

JFE engineering

Mayekawa MFG Sumitomo corp.

etc.

Source: Japan External Trade Organization List of Japanese companies in India (http://www.in.emb-japan.go.jp/Japanese/J_cos_list_j_2013_10.pdf)


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Proposal 4. Inclusive growth Agricultural capacity buildingJapan can set out leadership program to boost agriculturebusiness in the new capital region

Interactive leadership program in Agriculture(example from South America)

Conductseminar at localto share theknowledge/experience ofJapan

Send experts toconductshands-ontraining to thelocals

Invite the leader candidate to Japanfor experiencing and learning theessence of Japan agriculturebusiness

Interactive trainingLocal activity

Marketingseminar

Sales operation

Quality check

Source: Ministry of Agriculture, Forestry, and Fisheries Report on collaborative program for South America(http://www.maff.go.jp/j/kokusai/kokkyo/nousui_bunya/pdf/latin25.pdf)


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Proposal 4. Inclusive growth Developing cold chainAdvanced technology, plant factory and cold chain, canenable the high-value agriculture business

Machili-patnam

High qualityvegetable plant factory

Vegetableplant factory

Fruit plant factory

High qualitycold Chain

Export todomestic/

globalmarket

New

capitalregion

Source: Ministry of Agriculture, Forestry, and Fisheries Home Page (http://www.maff.go.jp/)

Ministry of Agriculture, Forestry, and Fisheries Certified case of recycling business plan based onthe Food Recycling Law(http://www.maff.go.jp/j/shokusan/recycle/syokuhin/) 25


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Proposal 4. Inclusive growth Education programs(on-demand)With leveraging the private sectors know-how, Japan cansupport building the low cost/high quality online program

ElementaryBasic writing/reading

program

SecondaryDiversified study

program

Tertiary/Univ.Free course by India/JP

top schools

VocationalCollaborative coursewith private sector

Stable onlinenetwork

NewCapital

26Source: Government of India (http://dipp.nic.in/English/default.aspx)Ministry of Internal Affairs and Communications ICT Dream School (http://www.soumu.go.jp/main_content/000318246.pdf)


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Proposal 5. Multiple sources of fundingJapan has a wide variety of funding experience for India

Transport

Water

Education

InfrastructuresEnvironment

Manufacturingand Services

Machinery andEquipment

10 billion USD JICA loanwithin 5 years (2009 2013)

DelhiMass Rapid TransportSystem Project Phase 3 (II)

14,000 (crore yen) $ $ $$ $

AgraWater Supply Project (II)

1,628 (crore yen) $

Campus Development Project ofIndian Institute of Technology,Hyderabad(Phase 1&2)

2,304 (crore yen) $ $

Supercritical Coal-fired PowerGeneration Project , Rajpura

630(crore yen)

Building Factory forAutomobiles and MotorScooters , Bangalore

unknown

India's National ThermalPower Company , Kudgi

3,100(crore yen) $ $$

Source: JICA, JBIC Home Page (http://www2.jica.go.jp/ja/yen_loan/index.php)


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Proposal 6. Make in AP, Supported by JPJapanese manufacturing industries can jointly pursue topromote job creation

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USD

billio

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Trend of country wise total FDI of key contributors(during April 2000- June 2014)

Japan accounts for 7.46% of total FDI equityinflows into India.Japan is the 4thlargest FDI contributor toIndia, with major interests inpharmaceuticals, automobiles and servicessectors

India is an attractive investmentdestination for Japanesecompanies, with 1,072 Japanese

companies having 2,542 businessbases in India

Around 60 fortune 500 firms arefrom Japanhuge potential to tapfrom Japan

GoAP though METI, JETRO andother organizations can jointlypursue private sector companiesin Japan through proactivebusiness events, B2G events andcontinuous dialogue

Source: Government of India (http://dipp.nic.in/English/default.aspx)World Bank (http://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD)


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JapaneseCompanies

Trading

Electronics

Auto

Infra.

Engineering

Etc.

Infrastructurecompanies

Railway

Construction

Water Mgmt

Waste Mgmt

Power

Etc.

Agreementfor collaborative

activities

Japan AP New CapitalTaskforce

AP State

Discussion tobuild InfraMaster Plan

MLIT

MOFA

MOF

MAFF

JETRO

JBIC

JICA

NEDO

CabinetSecretary

JOIN

METI (Coordinator)

PMO

Finance

MA & UD

Infra &Investment

Transportetc

Energy

Industry &Commerce

IT,Electronics

Agri &cooperation

Planning

Etc.

CRDA (Coordinator)

PMOCollaboration Collaboration

Proposal 7. AP/JP Joint Development and capability sharingPMO will coordinate the entire projects till the org is formallyestablished. Will also share Japanese expertise in key sectors



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