Andhra Pradesh August 2014

Proposed industrial

corridor

The proposed Visakhapatnam-Chennai industrial corridor is expected to attract investment

to the tune of US$ 16.7 billion and will create more than 50,000 jobs.

Vizag among top five

ports in India

The Visakhapatnam port ranks amongst the top five of 13 major ports in the country.

During 2013-14, it handled 58.5 million tonnes of cargo.

Power surplus state

Seemandhra, comprising Rayalaseema and coastal Andhra, has most of the power

projects of undivided Andhra Pradesh. Coal based power plants are mostly located in the

state due to proximity to the ports.

FDI investment

scattered across state

FDI in Andhra Pradesh is scattered across the state both in Coastal Andhra and

Rayalaseema.

Largest exporter of

marine products

Andhra Pradesh is one of the largest producers of brackish water shrimps and freshwater

prawns. It contributes more than 20 per cent to the countrys total marine exports.

Home to various

pharma players

Various pharmaceutical companies have set up their manufacturing hubs in

Visakhapatnam and Srikakulam districts. The state provides ample growth opportunities

due to availability of ports, pharma city, large parcels of land for expansion etc.

Tourist destinations The state has a large coast line of nearly 1,000 kms, temple destinations, lush green

forests and spicy cuisine which led to increase in domestic tourism in the last few years.

Rich in hydrocarbon

and mineral resources

According to the Director General of Hydrocarbons (DGH), Andhra Pradesh has huge oil

and gas reserves; the state is also rich in mineral resources which include manganese,

limestone, mica, steatite, copper, graphite etc.

Setting up PCPIR and

NIMZs

The state is in the process of setting up two National Investment and Manufacturing Zones

in Chittoor and Prakasam districts. Moreover, the upcoming PCPIR in the region would

boost refining, petrochemicals and chemical industries.

Large number of

operational SEZs

Andhra Pradesh has 17 operational SEZs in the state across diversified sectors located

mainly across Visakhapatnam, East Godavari and Nellore.

PCPIR: Petroleum, Chemicals and Petrochemicals Investment Region

Andhra Pradesh Reorganisation Act, 2014 or the Telangana Act is a parliamentary declaration of the bifurcation of Andhra

Pradesh state into two states, Telangana and residuary Andhra Pradesh (Seemandhra).

The act consisted of the aspects of division of assets and liabilities, the boundaries of the proposed new states and status of

the capital city Hyderabad after the separation of the state.

Greater Hyderabad Municipal Corporation area of Hyderabad would be the common capital for the states for a period not more than 10 years.

Both states to have a common Governor. Common capital and Governor

Central government to provide assistance to raise additional forces.

New training center for Seemandhra would be established. Police forces

High court at Hyderabad would be a common High Court till a separate High court is established for Seemandhra.

The expenditure is to be allocated on the basis of population ratio. High Court

Central government to make appropriate grants, provide adequate benefits and incentives in the form of a special development package for Seemandhra.

This will ensure expansion of physical and social infrastructure.

Special development package

For central government employees, an advisory committee would be appointed to draw up guidelines and take up the allocation exercise.

For state government employees, district, zonal and multi-zonal cadres falling in one of the successor states are deemed to be allotted to that state; else employees would be allocated based on options.

Services of employees

Two separate boards would be created by the central government for Krishna and Godavari Rivers to look after administration, regulation, maintenance and operation of notified projects.

Water resources

Existing PPAs would continue; units of APGENCO and assets of APTRANSCO would be divided based on location.

Central power would be allotted on actual energy consumption trend. Energy

The Government of India shall take steps to establish institutions of national importance in the newly formed state.

The Government of India shall establish one AIIMS-type super-specialty hospital-cum-teaching institution.

Admissions in higher, technical and medical education would be common for ten years.

Quotas under article 371-D would also continue.

Higher education

Central government to provide financial support for creation of a new capital.

An expert committee to be constituted by the central government to study various alternatives and make a recommendation within six months.

New capital

Source: Andhra Pradesh state portal

DGH: Director General of Hydrocarbons, GSDP: Gross State Domestic Product

Growing demand High economic growth

GSDP expanded at a compound annual growth rate (CAGR) of 15.2 per cent between 2004-05 and 2012-13 to US$ 77.2 billion.

Per capita income improved at a CAGR of 11.7 per cent between 2004-05 and 2012-13 to US$ 1,400.

Andhra Pradesh is a leading agricultural state in India.

Rich in hydrocarbon

reserves

According to DGH, the state has huge oil and natural gas reserves.

The KG basin in the east coast has been categorised as a region with proven commercial productivity of hydrocarbons by DGH.

Over 39,000 sq km stretch in Kadapa district has been earmarked by DGH as a potential exploration site for rare natural resources.

Adequate power

generation capacity

Most of the coal based power plants are located in the coastal regions due to their connectivity to the ports.

As gas production from Krishna Godavari Basin (KG basin) picks up, gas based power plants will generate more power leading to the state to become a power surplus state.

A 6,000MW nuclear power plant is to be set up in Srikakulam District.

2013-14

Installed

power

capacity:

~9,555 MW

2020E

Installed

power

capacity:

~20,000

MW

Long coastline

A 972-km long coastline provides numerous opportunities for the state to develop a number of ports.

Currently has 14 notified non-major ports and one major port.

The coastline and ports open opportunities for hydrocarbons, developing LNG terminals, setting up of pharmaceutical, aqua and agri

corridors. Advantage

Andhra

Pradesh

Andhra Pradesh is located in the southern peninsula of

India and has a coast line of 972 km.

The state of Andhra Pradesh is bound by Chhattisgarh on

the north, Odisha on the northeast, Telangana and

Karnataka on the west, Tamil Nadu on the south, and the

Bay of Bengal on the east.

Visakhapatnam, Vijayawada, Tirupati, Rajahmundry,

Guntur, Kakinada, Ongole, Nellore and Kurnool are some of

the key cities in the state.

Most commonly spoken language is Telugu. Urdu, Hindi,

Tamil, Kannada and Oriya are the other languages used.


^Share with Telangana for 10 years

Parameters Andhra

Pradesh

Capital Hyderabad^

Geographical area (sq km) 160,205

Administrative districts (No) 13

Population density (persons per sq

km) 308

Total population (million) 49.4

Male population (million) 24.7

Female population (million) 24.6

Sex ratio (females per 1,000 males) 996

Literacy rate (%) 67.4

Source: Maps of India

Parameter Andhra

Pradesh All States Source

Economy 2012-13 2012-13

GSDP as a percentage of all states GSDP 4.5 100.0 Andhra Pradesh State Portal, May 2014 &

Planning Commission Databook, July 2014

Average GSDP growth rate (%)* 15.2 15.5 Andhra Pradesh State Portal, May 2014 &


Per capita GSDP^ (US$) 1,563.7 1,414.4 Andhra Pradesh State Portal, May 2014 &


Physical Infrastructure

Installed power capacity (MW) 9,555.0 249,488.3 Central Electricity Authority, as of June 2014

and Business Line citation

Wireless subscribers (No)^ 67,192,201 910,157,975 Telecom Regulatory Authority of India,

as of May 2014

Broadband subscribers (No)^ 1,342,750** 65,330,000 Ministry of Communications & Information

Technology, as of May 2014

National highway length (km) 3,144 79,116.0 Ministry of Road Transport & Highways, Andhra

Pradesh State Portal

Major and minor ports (No) 1+14 13+187 Indian Ports Association

Airports (No) 8 133 Andhra Pradesh State Portal, AAI

^For undivided state, *Calculated in Indian Rupee terms from 2004-05, **As of December 2011, ^Estimates

Parameter Andhra

Pradesh All-States Source

Social Indicators

Literacy rate (%) 67.4 73.0 Provisional data - Census 2011

Birth rate (per 1,000 population)^ 17.5 21.6 SRS Bulletin (www.censusindia.gov.in),

October 2013

Investment

FDI equity inflows (US$ billion)^ 8.8* 223.0 Department of Industrial Policy & Promotion,

April 2000 to May 2014

Outstanding investments (US$ billion)^ 198.1 2,414.2 CMIE (2013-14)

Industrial Infrastructure

PPP projects (No) 120 1,339 www.pppindiadatabase.com, PPP Cell, Andhra

Pradesh, March 2014

SEZs (No) 42 392 Notified as of July 2013, www.sezindia.nic.in

^For undivided state, PPP: Public-Private Partnership,

SEZ: Special Economic Zone, SRS: Sample Registration System, *Data shared by RBI Hyderabad

30.1 33.4 38.6

52.7 51.4 57.6

70.1

78.2 77.2

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

2011-1

2

2012-1

3

At current prices, Andhra Pradeshs Gross State Domestic Product (GSDP) was estimated at US$ 77.2 billion over

2012-13.

Between 2004-05 and 2012-13, the average annual GSDP

growth rate was 15.2 per cent*.

Growth was mainly driven by industrial and services

sectors.


*In Indian Rupee terms

GSDP of Andhra Pradesh at current prices

(in US$ billion)

CAGR

15.2%*

At current prices, Andhra Pradeshs Net State Domestic Product (NSDP) was estimated at US$ 70.2 billion over

2012-13.

Between 2004-05 and 2012-13, the average annual NSDP

growth rate was about 15.4 per cent*.


*In Indian Rupee terms, E- Estimates

NSDP of Andhra Pradesh at current prices

(in US$ billion)

27.1 30.1

34.7

47.4 46.6 52.4

63.8 71.2 70.2

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1 (

E)

2011-1

2 (

E)

2012-1

3 (

E)

CAGR

15.4%*

647.7 714.0

816.1

1,106.2 1,069.8 1,188.1

1,432.7

1,584.6 1,550.0

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

2011-1

2

2012-1

3

Andhra Pradeshs per capita GSDP increased to US$ 1,550.0 during 2012-13 from US$ 647.7 over 2004-05.

Average per capita GSDP rose at a CAGR of 14.2 per cent*

between 2004-05 and 2012-13.



Per capita calculated based on population growth

between 2001 and 2011 census figures

GSDP per capita of Andhra Pradesh at

current prices (in US$)

CAGR

14.2%*

583.4 643.7

734.4

993.6 968.4

1,080.8

1,303.3

1,441.5 1,410.1

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1 (

E)

2011-1

2 (

E)

2012-1

3 (

E)

Andhra Pradeshs per capita NSDP grew from US$ 583.4 during 2004-05 to US$ 1,410.1 over 2012-13.

Average per capita NSDP increased at a CAGR of 14.4 per

cent* between 2004-05 and 2012-13.


*In Indian Rupee terms, E- Estimates

Per capita calculated based on population growth between 2001

and 2011 census figures

NSDP per capita of Andhra Pradesh at


CAGR

14.4%*

579.3 639.4

730.2

987.7 961.7

1,065.3

1,287.5

1,424.0 1,400.0

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

2011-1

2

2012-1

3

Andhra Pradeshs per capita income grew from US$ 579.3 during 2004-05 to US$ 1,400.0 over 2012-13.

Average per capita income increased at a CAGR of 11.7 per

cent* between 2004-05 and 2012-13.


*In Indian rupee terms, E- Estimates

Per capita Income of Andhra Pradesh at


CAGR

11.7%*

29.9% 27.3%

21.6% 23.0%

48.5% 49.7%

2004-05 2012-13

Agriculture Industry Services

During 2012-13, the service sector accounted for 49.7 per

cent (US$ 38.4 billion) of GSDP (at current prices), followed

by agriculture (27.3 per cent; US$ 21.1 billion), and industry

(23.0 per cent; US$ 17.8 billion).

The industry sector grew the fastest at a CAGR of 16.2 per

cent*, followed by services (CAGR of 15.6 per cent*) and

agriculture (CAGR of 14.0 per cent*) between 2004-05 and

2012-13.

GSDP composition by sector

CAGR*

14.0%

15.6%

16.2%



During 2012-13, total gross area under crop production in

Andhra Pradesh was 8.6 million hectares of which 6.7

million hectares was net sown area.

Overall production of cereals and millets during 2012-13

stood at 9.4 million tonnes.

Major food grains produced in Andhra Pradesh are rice,

maize and pulses.

Sugarcane, cotton, tobacco and groundnut are some of the

other major crops produced in the state.

The state has the groundnut rich Rayalaseema area, which

produces nearly 90 per cent of the groundnut. This area

also produces most of the sugarcane in the state.

During 2012-13, total production of oilseeds in the state was

estimated at 2.0 million tonnes.

Crop

Area under

production

000 Ha (2012-13)

Crop production

000 tonnes (2012-13)

Rice 2772.4 6863.0

Maize 233.4 NA

Cereals & millets 3210.7 9363.0

Pulses 1373.5 1133.0

Total food grains 4585.0 NA

Groundnut 1426.1 NA

Oilseeds 1974.1 1988.0

Vegetables 159.7 NA

Fruits 618.3 NA

Cotton 389.0 1543.0

Fodder crops 66.8 NA


NA Not Available

During 2010-11, nearly 50 per cent of the irrigation in the

state was dependent on canal water, more than 35 per cent

on ground water and more than 10 per cent on tank water.

The undivided state has embarked an water projects in the

country called Jalayagnam with an estimated cost of nearly

US$ 20 billion.

This water management program was introduced in 2009 to

bring a larger parcel of land in the undivided Andhra

Pradesh under irrigation.

Currently, out of the 29 major irrigation projects in

Seemandhra, 10 are completed and 14 projects are

ongoing. Moreover, of the 63 medium irrigation projects, 50

are completed and 11 are ongoing.

The completion of the ongoing projects will further help the

state to increase penetration of canal water harvesting and

irrigate the 10 million acres of arid and dry land in the

southern part of the state.


Jalayagnam project status - May 2014

Major irrigation projects Numbers Area covered

(million acres)

Completed 10 46.8

Ongoing 14 28.0

Contemplated 5 27.3

Medium irrigation projects Numbers Area covered

(million acres)

Completed 50 0.6

Ongoing 11 0.2

Contemplated 2 0.1

Exports from Visakhapatnam Port, one of 13 major ports in

India, stood at 25.0 million tonnes during 2013-14.

The port has also emerged as the leading port in marine

exports in India.

Marine exports from the port during April to December 2013

stood at US$ 826 million compared to US$486 million in the

corresponding period a year earlier.

During the period, Vizags share of seafood exports stood at 23 per cent in terms of value and 22 per cent in terms of

dollar realisation.

Exports from the port are expected to increase in the near

term as it has taken up two major projects to extend the

existing container terminal and modernisation & upgradation

of the iron ore handling complex. Source: Port of Visakhapatnam

Total exports turnover from Vizag Port

(million tonnes)

29 29 30 27

24 25

2008-0

9

2009-1

0

2010-1

1

2011-1

2

2012-1

3

2013-1

4

The divided Andhra Pradesh will grow as an economic

powerhouse as the states coastal region will attract investment which was earlier concentrated mainly towards

Hyderabad.

The location advantage of the state has helped it to witness

increasing investment in the coastal Andhra region over the

last few years. This was mainly from manufacturing sectors

like pharma, chemicals, mining, petrochemicals, etc.

The state has the potential to develop various growth

centres along the coastline like Visakhapatnam,

Vijayawada, Nellore and Anantapur.

Moreover, the proposed Visakhapatnam Kakinada

Petroleum, Chemicals and Petrochemicals Investment

Region (PCPIR) is expected to attract huge investment.

Recently, a commitment was made by the Industrial

Development Forum that Andhra Pradesh is expected to

receive investment to the tune of US$ 933.3 million in the

next two to three years.

Tax holiday, special status and other incentives are

anticipated to further boost investment.

Foreign direct investment in Andhra Pradesh over the last

20 years stood at US$ 1,476.5 million. Majority of the

investment was done in coastal Andhra region.

Source: News article

Total FDI in undivided Andhra Pradesh from 1991 to 2010 = US$ 3,014.5 million,

Average exchange rate used INR 42.2/US$

FDI across Andhra Pradesh over 1991-2010

(US$ million)

173

1,303

0

450

900

1,350

1,800

Rayalaseema Coastal Andhra

By the end of 2012-13, the state was connected via 3,144

km of national highways and 42,137 km of other roads.

The proposed Chennai Visakhapatnam corridor under the

Reorganisation Act will aid development of road projects.

The proposed Chennai-Bangalore corridor is anticipated to

further support development of road projects in the region.

Recently, the finance minister stated that the master plan for

both the projects will be ready soon and development work

will start within the proposed timeline.

Moreover, the government has also planned to identify

important towns and cities in the state and build a network

of express highways connecting those important cities.

Road type Road length (km)

FY 12-13

National Highways 3,144

Total roads 42,137

Black top and asphalt 38,696

Concrete/metalled/unmetalled 3,441



Road network across the state

The state is well connected through the rail network.

Visakhapatnam, the largest city in the state, has rail

accessibility to nine district headquarters out of 13 in the

new state.

The city is also well connected to the neighbouring states of

Odisha and Chhattisgarh.

The state is also planning to form a separate railway zone,

namely South Coast Railway, with Vizag as its headquarter.

Vizag is proposed to be the headquarter of the zone as the

region houses major industrial as well as commercial

establishments and is a busy railway junction in terms of

passenger and freight traffic.

The new zone will consist of Waltair Division of the East

Coast Railway (ECoR) as well as Vijayawada, Guntur and

Guntakal divisions of South Central Railway.

The government has also planned to set up a high speed

train between Hyderabad and the new capital city to ease

traffic movement between the two states.

The Union Government has also planned to develop metro

rail projects at three locations in the state, including

Visakhapatnam, Guntur and Vijayawada.

The Visakhapatnam project, estimated to cost US$ 833.3

million, will develop four important routes that are not well

connected currently.

Source: Maps of India

Rail network across the state

Andhra Pradesh has eight operational airports/air strips at

Visakhapatnam, Tirupati, Rajahmundry, Vijayawada,

Bobbili, Nagarjuna Sagar and Puttaparthi.

Apart from these, Donakonda airport is non-operational

(closed) whereas four are under development in Nellore,

Kurnool, Ongole and Kadapa.

Visakhapatnam, also popular as Vizag, has an international

airport, which is under the Navy's command.

The state is planning to develop a second runway at Vizag

only for commercial operations

Moreover, the state is also planning to extend the airports operating time to 24/7, which is expected to bring more

airlines to Vizag.

Various international airlines have expressed interest in

commencing or increasing existing operations. The

relaxation of the timing will also enable various domestic

airlines to introduce additional flights in Vizag.

This will increase employment opportunities in the region as

more industries will come from abroad, bringing

investments.

Source: Andhra Pradesh state portal, Airports Authority of India

Airports across the state

Andhra Pradesh has a 972 km long coastline and the

second highest cargo handling port.

The Visakhapatnam port ranks amongst the top five of 13

major ports in the country. During 2013-14, it handled 58.5

million tonnes of cargo.

Coking coal, iron ore, petroleum products and thermal coal

are some of the key products handled by the port. It also

has a high volume of container traffic.

Other than Visakhapatnam, the state has five more

operational ports. Apart from these, seven more ports are

under development and three are proposed to be

developed.

The extension of the existing container terminal and the

modernisation and upgrading of the iron ore handling

complex will enable the port to increase its cargo handling

capacity in the near term.

The first project, estimated to cost over US$ 100 million, has

been awarded to the Visakha Container Terminal Private

Ltd and the second, estimated to cost US$ 137.5 million,

was awarded to Essar Ports.

Source: Port of Visakhapatnam

Visakhapatnam port traffic (million tonnes)

64 66 68 67

59 59

0

18

36

54

72

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

As of June 2014, Andhra Pradesh had a total installed

power generation capacity of nearly 9,555MW.

The state has nine hydro power projects under operation

and one under development. Moreover, the state has one

operational wind power project.

Most of the coal based power plants are located in the

coastal regions because of their connectivity to the ports.

The state also has three thermal power projects under

operation, two projects under development and two projects

under construction.

Per capita consumption of electricity in Andhra Pradesh

stood at 685.1 kWh during 2012-13.

The state is planning to add another 8,400 MW power

capacity under the public sector which includes a 600 MW

plant at RTPP, Muddanur, 4,000 MW near Vodarevu in

Prakasam district, 2,400 MW plant in Srikakulam and a

2,000 MW nuclear power project.

Furthermore, an additional 3,000 MW of power generation is

planned by private players in the state.

Source: Central Electricity Authority

*As of June 2014 based on Business Line citation

Installed power capacity (MW)

The setting up of an LNG terminal by Petronet LNG at

Gangavaram will make gas available for six gas based

power plants, with a capacity of 2,700 MW, which currently

produce only 700 MW due to shortage of gas.

Taking into consideration all the existing and planned power

plants to be operational, total power available in the state is

expected to reach 18,000 MW to 20,000 MW in the

upcoming years.

11,639 13,409

15,036 16,095

16,949 17,495

9,555

8,176

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15*

Andhra Pradesh Telangana

Source: www.sezindia.nic.in

SEZ: Special Economic Zone

Name/Developer Location Primary industry

Andhra Pradesh Industrial Infrastructure Corporation Ltd Vishakhapatnam Multi-product, IT/ITeS

Brandix India Apparel City Private Ltd Achutapuram, Visakhapatnam Textile

Ramky Pharma City Pvt Ltd Mandal, Visakhapatnam Pharmaceuticals

Divis Laboratories Chippada Village, Visakhapatnam Pharmaceuticals

Apache SEZ Development India Mandal Tada, Nellore Footwear

Hetero Infrastructure Nakkapalli Pharmaceuticals

Parry Infrastructure Kakinada Food processing

Andhra Pradesh Industrial Infrastructure Corporation Ltd East Godavari IT/ITeS

IFFCO Kisan SEZ Nellore Multi product

Bharatiya International SEZ Nellore Leather sector

Andhra Pradesh Industrial Infrastructure Corporation Ltd Nellore Multi product

Some of the operational SEZs in Andhra Pradesh

Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is the agency responsible for the supervision and execution of

SEZs in the state.

As of July 2014, the state has 17 operational SEZs in the state across diversified sectors which include textiles and apparel,

food processing, footwear and leather products, multi-product, pharma, IT SEZs etc.

Source: www.sezindia.nic.in

Name/Developer Location Primary industry

South Coast Infrastructure Development Co of

Andhra Pradesh Private Ltd (SCIDCAP)

NH-5 between Prakasam and

Nellore District Building materials

Lepakshi Knowledge Hub Private Ltd Ananthapur Multi-product

M/s Drugs & Pharmaceuticals Manufactures

Association Nakkapalli Mandal, Visakhapatnam Pharmaceuticals /APIs/formulations

M/s Vivimed Labs Ltd

Boyapalem, Naruva & Chittivalasa

villages, Ranasthalam Mandal,

Srikakulam

Chemicals &

pharmaceuticals

M/s Planet SEZ Private Limited Visakhapatnam Petroleum and oil & gas

industry

SEZs with valid in-principle approvals

Andhra Pradesh has five SEZs with valid in-principle approvals and 42 SEZs with formal approvals, as of July 2013.

Project name Sector Under

government

Project cost

(US$ million) Stage

Krishnapatnam Ultra Mega Power Project Energy Central 2916.7 Construction

Krishnapatnam Port Ports State 866.7 Operational

Kakinada Deep Water Port Ports State 659.3 Operational

Gangavaram Port Ports State 308.3 Operational

Vijayawada-Gundugolanu Section Roads Central 280.7 Bidding

Six-laning of Gundugolanu Rajamundry Roads Central 269.5 Bidding

Four laning of Cuddappah-Kurnool section Roads Central 264.2 Construction

Machilipatnam Port Development Ports State 265.0 Construction

GVK Jegurupadu Combined Cycle Power Project Energy State 170.8 Operational

IT/ITeS SEZ, Vijayawada IT State 75.0 Operational

Jawaharlal Nehru Pharma City, Visakhapatnam Infrastructure State 52.2 Operational

Dispensary site at Maddilapalem Urban development State 4.5 Reversion

Source: Public Private Partnership in India Database

P-P-P: Public-Private Partnership, As of March 2014, Converted using flat exchange rate of INR 60 / USD

Two new NIMZs

During the tenure of the last central government, the state received in-principle approval from the government for setting up two National Investment and Manufacturing Zones

(NIMZs) in Chittoor and Prakasam districts.

The state will develop NIMZs as integrated industrial townships, with state of the art

infrastructure and land use on the basis of zoning, clean and energy efficient technology,

necessary social infrastructure and skill development facilities.

They are expected to attract investment of more than US$ 8.0 billion and would have an

employment potential of 0.3 million each.

New capital city and 10

smart cities

The new government is planning to set up the new capital for the state between

Vijayawada and Guntur.

These fast growing cities (Vijayawada and Guntur) with substantial infrastructure can be

transformed into a mega capital city.

Moreover, the government plans to develop many mega cities across the state as part of

the decentralised development agenda.

Industrial corridors

The proposed Visakhapatnam-Chennai industrial corridor is expected to attract investment

of US$ 16.7 billion and will create more than 50,000 jobs.

This will be developed in two or three phases spanning more than 15 years.

Moreover, Visakhapatnam has been included in the upcoming Chennai-Bangalore

Industrial Corridor.

The former will provide a thrust to industrial development across various districts and

villages in the state along the stretch of the corridor, whereas the latter will lead to

development across Anantapur, Chittoor and Nellore.

Telecom infrastructure (as of May 2014)

Wireless subscribers^ 67,192,201

Wire-line subscribers^ 2,020,044

Broadband subscribers^ 1,342,750*

Telephone exchanges^ 4,266**

Public Call Offices (PCOs)^ 130,282**

Source: Telecom Regulatory Authority of India,

Department of Telecommunications, Annual Report 2011-12,

Ministry of Communications & Information Technology, India Post

*As of December 2011

**As of March 2012

^For undivided Andhra Pradesh

BSNL: Bharat Sanchar Nigam Limited

According to the Telecom Regulatory Authority of India

(TRAI), undivided Andhra Pradesh had nearly 67.2 million

wireless subscribers and 2.0 million wireline subscribers as

of May 2014.

According to the Department of Telecommunications,

Government of India, the undivided state had 4,266^

telephone exchanges and 130,282^ public call offices

(PCOs) as of March 2012.

The overall tele-density in undivided Andhra Pradesh stood

at 79.4^ per cent as of May 2014.

Optical fibre cable networks of BSNL with 44,500^ km,

Reliance with 6,000^ km, Bharat with 3,450^ km and Tata

with 1,700^ km provide a wide range of communication

networks to Andhra Pradesh.

As of July 2014, there were 16,161^ post offices in the

state.

BSNL announced that there will be no charge of inter-state

roaming between Telangana and Seemandhra until 2024.

In 2024 when the licensing of spectrum ends, a new

spectrum auction would be conducted for the two states and

the norms would be set at that time for inter-state roaming.

Airtel is planning to launch 4G services in the states of

residual Andhra Pradesh by the end of this financial year

with special focus in the cities of Vijayawada and

Visakhapatnam.

Classes Number of schools

(2012-13*)

(I-V) 40,929

(I-VII/VIII) 9,575

(I-XII) 161

(I-X) 705

(VI-X) 9,289

Andhra Pradesh has a literacy rate of 67.9 per cent,

according to provisional data released by Census 2011.

During 2012-13*, 7.2 million students were enrolled in

60,659 schools. There were 40,929 primary schools, 9,575

upper primary schools, 9,994 high schools and 161 higher

secondary schools. The total number of teachers reached

104,047.

In medical education, Andhra Pradesh has 21 medical

colleges with eight in the government sector.

Andhra Pradesh has 20 state run universities, with 10 in the

coastal Andhra region and the other 10 in the Rayalaseema

region.

The State Reorganisation Act has ensured the retention of

existing admission quotas in educational institutions for a

period of 10 years.

In order to provide equal benefits to the students of the

newly formed states, the government has given its nod to

set up an IIT, an IIM, three central universities, an IISER

and an IIIT among other institutes in Andhra Pradesh.

Course

Number of

colleges

(2011-12)

Number of

students

enrolled

Junior colleges 2,886 886,762

B Ed training colleges 365 39,049

Engineering 366 156,177

Pharmacy colleges 120 11,040

MBA colleges 438 39,491

Polytechnics 163 48,980

Source: Commissioner & Director of School Education, Andhra Pradesh state portal

*Data as on 30 September 2012

Major hospitals

Apollo Hospital

Care Hospital

Manipal Hospital

Krishna Institute of Medical Sciences


*Per thousand persons, **Per thousand live births

Health indicators (estimates) (2010)

Birth rate* 17.1

Infant mortality rate** 42.8

Medical facilities (2011-12)

Hospitals 275

Primary health centres 1,021

Dispensaries 13

Regular doctors 5,086

Contract doctors 612

Beds available 25,769

By the end of 2011-12, Andhra Pradesh had 275 allopathic

hospitals, 1,021 primary health centres and 25,769 beds.

Moreover, the state also had three ayurvedic hospitals and

three homoeopathic hospitals.

Recently, various super-specialty hospitals are coming up

across the state mainly in the coastal area of Vijayawada.

The city is anticipated to become the largest destination for

medicare in coastal Andhra.

Various hospitals are planning to set up operations in the

state and some are in the process of expanding their

existing facilities. This includes doubling of bed strength by

The Krishna Institute of Medical Science and setting up of

three hospitals comprising of 800 beds by Apollo Group.

Moreover, a central government funded health institute,

similar to All India Institute of Medical Sciences, is expected

to come up in Vijayawada.

The government has already sanctioned US$ 200 million as

the first instalment for the purpose and another US$ 48.7

million has been sanctioned for the development of all the

hospitals in Krishna district.

Stadiums and sports complexes in

Visakhapatnam

Aqua Sports Complex

Port Trust Golden Jubilee Stadium

South Eastern Railway Stadium

Police Stadium

Indira Priyadarshini Stadium

Steel Plant Township Stadium

Zinc Stadium

GITAM Engineering College Synthetic Tennis Court

ACA-Visakhapatnam District Cricket Association's

Stadium

Golden Jubilee Indoor Stadium

Swarnabharathi Indoor Stadium

GITAM Indoor Sports Stadium

Andhra University Grounds

There are several sports complexes in the state spreading

across Visakhapatnam, Tirupati and other cities. Although

cricket and tennis are the major sports, other games are

also popular.

Visakhapatnam has seven cricket stadiums which are used

for Ranji Trophy matches whereas a few of them are also

used for one day international matches. The city has a golf

course named the East Point Golf Club.

The Tirupati temple and Kanakadurga temple makes the

state one of the leading religious tourism spots in the

country.

Moreover, the project for developing the beach corridor from

Visakhapatnam to Bhimili is progressing rapidly and tenders

have been called for development of RK Beach and

Rishikonda.

Furthermore, the states long coastline offers high potential to develop beach resorts that can turn into tourist hotspots.

Other revenue generating tourist hotspots of the state

include the Buddhist sites in Krishna and Guntur districts

and the Chandragiri Fort in Chittoor.

The government is planning to make the state an IT power

house in the coming years.

According to an announcement made by the Minister for

Information Technology in July 2014, Visakhapatnam is set

to be developed into the IT capital of the state.

Madhurawada, located in the north-east of Visakhapatnam,

has already been developed as an IT hub. Various IT firms

were allocated land in this area to develop and start their

operations while few of them are already operational.

Big brands such as IBM, Tech Mahindra and Wipro already

operate in Vizag.

Moreover the city has close to three universities which

produce more than 35,000 IT graduates every year.

As part of the state government's commitment to transform

Vizag into a major IT hub, lands have been allocated to

three major companies.

Source: Andhra Pradesh IT department, News articles

These include allocation of an SEZ to Wipro, 10 acres to

Tech Mahindra & 13 acres to Society for Applied Microwave

Electronics Engineering and Research.

Apart from Visakhapatnam, cities such as Vijayawada,

Tirupati, Kakinada and Anantapur will also be developed

into IT hubs.

Revenue from IT industry (in US$ million)

256.0

20.4 0.9 7.4

266.0

21.2 1.3 11.3

0.0

75.0

150.0

225.0

300.0

Vizag Vijayawada Tirupati Kakinada

2011-12 2012-13

Source: News articles

Proposed ITIRs Andhra Pradesh government is planning to set up Information Technology Investment

Regions (ITIR) in Visakhapatnam, Anantapur and Chittoor districts.

Visakhapatnam ITIR A detailed report on the proposed Visakhapatnam ITIR, which would spread across

12,000 acres, has been prepared and submitted to the state government and is expected

to be implemented over a period of 25 years in two phases.

Tirupati/Anantapur/

Nellore ITIR

Another ITIR is proposed to be set up across 4,000 acres of land near the international

airport at Tirupati, 4,000 acres of land at Anantapur, near Karnataka border and another

4,000 acres at APIICs industrial corridor of Chittoor-Nellore.

Investment potential of

US$ 40.4 billion from

Vizag

The state expects the Visakhapatnam ITIR project to have an investment potential of US$

7.5 billion and revenue of US$ 6.2 billion.

Direct and indirect employment generated from the project is estimated at 0.43 million and

1.71 million, respectively, once it is fully functional.

IT exports from Andhra Pradesh stood at nearly US$ 122.8 million and employ nearly 4,000 people.

In order to increase the contribution of IT export and employment from Seemandhra, the state has drafted a guideline to

address the key determinants of successful growth in the IT and Electronics sectors.

Parameter Contribution from Seemandhra

Exporting units registered with STPI 27

Export turnover of STPI units (US$ million) 122.8

Employment ('000s) 4

Major indicator Goal to be achieved by 2020

Make all government to citizens and government to

business services available online and on mobile

To attain number one position in eTAAL by 2017 and maintain it through 2020

Share in the national IT exports 5 per cent

Investments in IT US$ 2 billion by 2017 & US$ 5 billion by 2020

Investments in electronics manufacturing US$ 5 billion by 2017 and US$ 10 billion by 2020

Employment created in electronics and IT 0.3 million by 2018 and 0.5 million by 2020

Broadband penetration Gigabit to all gram panchayats by 2017 and to all villages by

2020

Source: Andhra Pradesh IT vision

Tech Mahindra

IBM

Wipro

Tech Mahindra, part of Mahindra Group conglomerate and headquartered at Mumbai,

provides information technology, networking technology solutions and business support

services to the telecommunications industry. The company, having operations in

Visakhapatnam, merged with Mahindra Satyam on March 21, 2012 and together the new

entity serves 540 corporate customers across 49 countries. The company reported a

revenue of US$ 3.1 billion during the financial year 2013-14.

IBM is a leading global IT services and solutions provider, with operations in over 170

countries across the world. Products offered by the companys Indian operations include software, storage, systems and servers and semiconductors. IBM has been present in India

since 1992. Since inception, IBM in India has expanded its operations considerably, with

regional headquarters in Bengaluru and presence in over 200 cities and towns across the

country; including a global delivery centre in Visakhapatnam.

Established in 1945, Wipro ventured into the IT services industry in the 1990s. The

company was among the pioneers in developing the Offshore Development Centre concept

in India. In order to focus on core IT business, it separated its non-IT businesses into a

separate entity named Wipro Enterprises Limited with effect from 31 March 2013. Currently,

the former company provides information technology, consulting and outsourcing services

to over 900 clients across more than 175 cities across 6 continents. In 2012, the company

opened a delivery centre in Vishakhapatnam. The company has an employee base of

146,053 and posted revenues of US$ 7.3 billion for the financial year ended Mar 31, 2014.

Andhra Pradesh is home to many global and national

pharma players; various companies have set up their

manufacturing hubs in Visakhapatnam and Srikakulam

districts.

Parawada, Nakkapalli, Pydibhimavaram and Ranasthalam

are the largest pharma manufacturing centres in the state

that have attracted several investments, particularly in bulk

drug sector. While Parwada and Nakkapali are located in

Vishakapatnam, the other two are located in Srikakulam.

Jawaharlal Nehru Pharma City, an integrated industrial park

located in Visakhapatnam, has various bulk drug

manufacturers, pharmaceutical companies and fine

chemical manufacturers, with nearly 45 pharmaceutical

companies.

The state provides ample opportunities for pharma

companies due to availability of ports, pharma city,

international airport, large parcels of land for expansion and

good effluent treatment facilities.

Various global pharma companies have already set up their

manufacturing hubs across the state which include

Japanese and US giants such as Eisai, Ajinomoto, Mylan

and Hospira.

Some of the key players

Eisai

Granules India

Hospira

Dr Reddy's Laboratories

Aurobindo Pharma

Mylan

Omnichem

Few of the national players to set up their manufacturing

hubs in the state include Dr Reddy's Laboratories,

Aurobindo Pharma, Hetero Drugs etc.

Source: News articles

Aurobindo Pharma

Ltd

Dr Reddy's

Laboratories

Mylan Laboratories Ltd

Granules India Ltd

Founded in 1986, Aurobindo Pharma is an India based pharmaceutical manufacturing

company. The company, which manufactures generic pharmaceuticals and active

pharmaceutical ingredients, markets these products across 125 countries. The company

has a manufacturing plant in Vizag. During 2013-14, the company generated revenues of

US$ 1.3 billion.

Incorporated in 1984, Dr Reddy's Laboratories manufactures and markets a wide range of

pharmaceuticals across domestic and overseas markets. The companys products include generic formulations, APIs, bio-similars etc. It has expanded its presence across the globe

through steady organic growth, partnerships and acquisitions. During 2013-14, the company

generated revenue of US$ 2.2 billion.

Mylan Laboratories Ltd (formerly known as Matrix Laboratories Ltd) is a subsidiary of US-

based Mylan Inc and has one USFDA-approved facility in Visakhapatnam. It is one of the

worlds largest manufacturers and suppliers of active pharmaceutical ingredients (APIs) for a wide range of therapeutic categories including antibacterials, central nervous system

agents, antihistamine/anti-asthmatics, cardiovasculars, antivirals, antidiabetics, antifungals,

proton pump inhibitors and pain management drugs.

Granules India is a Indian pharmaceutical company with manufacturing facilities spreading

across India and China. The company serves customers across 60 countries with four

facilities in India, which includes Vizag and a fifth facility in Jingmen, China. The company

recently acquired Auctus Pharma and is looking towards further expansion of its business

through both organic and inorganic routes.

150.2

272.6

149.2

340.2

404.7

479.3

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Andhra Pradesh produces medium grade and superior long

staple varieties of cotton. During 2013-14, the state

produced nearly 2.8 million bales (170 kg each) of cotton.

Few of the major cotton producing districts in the state

include Vizianagaram, East Godavari, Guntur, Prakasam

and Kurnool.

The undivided Andhra Pradesh government has identified

the textile sector as one of the long term growth engines. To

utilise the potential of the sector, the government has

established five apparel export parks (AEPs) and seven

textile parks. It has proposed to establish a few more AEPs

and textile parks in the state.

There are over 150 spinning mills including a number of 100

per cent export oriented units with state-of-the-art

machinery; producing cotton, synthetic and blended yarns in

the undivided state.

Between April 2006 and February 2012, 55 handloom

clusters were sanctioned under the Integrated Handlooms

Development Scheme in the Seemandhra and Telangana

regions.

Source: Andhra Pradesh Socio-Economic Survey 2012-13,

News articles, *In Indian Rupee terms

Andhra Pradesh has emerged as a large textile processing

centre. There are nearly 100 mills in the state, with coastal

Andhra having a lions share.

Handloom and textile exports for undivided

Andhra Pradesh (in US$ million)

CAGR

27.6%*

199.9 199.3 286.5

565.7 623.1

914.0

2008-09 2009-10 1010-11 2011-12 2012-13 2013-14*

The presence of rich climatic and soil conditions is expected

to make Seemandhra a major agricultural belt. Few of the

leading crops produced in the state include rice, chilly,

oilseeds, cotton, pulses and gram.

The states Krishna, Guntur, East and West Godavari districts have good irrigation facilities which help it to

produce a large amount of rice.

During 2010-11, out of a total cropped area of 8.6 million

hectares, 4.6 million hectares was utilised for food grain

production. Around 3.2 million hectares was used for

producing cereals & millets, out of which 2.8 million hectares

was used to produce rice.

The districts of Nellore, Krishna and Guntur are very fertile,

with above average production of cereals, pulses, groundnut

and cotton.

The state produced 6.9 million tonnes of rice, 1.1 million

tonnes of pulses, 2.0 million tonnes of oil seeds and 1.5

million tonnes of cotton during the financial year 2011-12.

The central government is planning to develop Tirupati or

Chittoor as agro-based and food-processing hubs and

Visakhapatnam as the fisheries and sea-food hub.

Source: Vizag Industrial Scan Industrial newspaper, Andhra Pradesh state portal,

*Till January 2014

CAGR

35.5%

Seafood exports from Andhra Pradesh

(in US$ million)

Mondelez India

Foods Ltd

Cargill India Pvt Ltd

ITC

Andhra Pradesh Dairy

Development Cooperative

Federation (APDDCF)

Mondelez India Foods Ltd is part of Mondelz International, Inc. It operates in five categories chocolate confectionery, beverages, biscuits, gum and candy. The companys key brands in India include Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville,

Celebrations, Gems, Halls, clairs, Bubbaloo, Tang and Oreo. The company is planning to

launch a Cadbury chocolate production plant in Chittoor district with an estimated cost of

US$ 166.7 million and would commence production from mid 2015.

Cargill maintains a number of businesses in India, with operations including handling and

processing of a wide range of products such as refined oils, grain and oilseeds, sugar,

cotton and animal feed. Cargills presence in India has been growing since it began a joint venture (JV) operation in 1987. In 2006, it entered into a JV and subsequently took over a

leading shrimp feed manufacturing farm in Rajahmundry. It has also entered into a JV with

EID Parry for a sugar refinery at Kakinada in the state.

ITC is a large Indian business conglomerate with diverse business interests including agri-

foods, paper, fast moving consumer goods, lifestyle and retailing and hotels. Over 2012-13,

its revenue reached around US$ 5.9 billion. A substantial part of ITCs agri-business is located in Andhra Pradesh. The company has a unit in Anaparti and Chirala, and a research

centre in Rajamundhry. The company also runs its innovative internet based e-Choupal initiative in the state for the benefit of farmers.

APDDCF runs 12 dairy plants and manufactures milk products under the Vijaya brand.

These plants together have a production capacity of 2,437 thousand litres per day. Products

include butter, ultra-high-temperature (UHT) milk, milk powder, ghee, flavoured milk, khoya,

kulfi and processed cheese. It is one of the 15 dairy cooperatives operating under the

National Dairy Development Board (NDDB).

Andhra Pradesh is known for its pristine beaches, sacred

places of worship, lush green forests, spicy cuisine and

hospitable people.

The state continued to witness increase in domestic tourist

arrivals over the last few years.

Number of tourist increased to 115 million in 2012 from

104.2 million recorded in 2010.

Most of the tourist destinations in the state are concentrated

in Visakhapatnam, Simhachalam, Araku and the beaches of

East and West Godavari. Tirupati and Bhadrachalam are

major temple destinations attracting a large chunk of

travellers.

Few of the prospective locations that can be developed for

tourism include the backwaters of Konaseema, beach

resorts along the long coastal line, the Buddhist sites in

Krishna and Guntur districts and the Chandragiri Fort in

Chittoor.

Moreover, wild life tourism can be developed in Pulikat Lake

in Nellore, the Kolleru Lake in Krishna and West Godavari

districts.

Source: Ministry of Tourism, Government of India; News articles

Arrival of domestic tourists in Andhra Pradesh

(in million)

104.2 103.6

115.0

2010 2011 2012

The Tourism Corporation has already initiated the process

and is working towards the development of a beach corridor

from Visakhapatnam to Bhimili which includes the RK

Beach and Rishikonda.

According to the Director General of Hydrocarbons (DGH), Andhra Pradesh has huge oil and natural gas reserves. The

states Krishna-Godavari basin, spread over an area of nearly 52,000 sq km, has a total hydrocarbon resource base of 1,130 million metric tonnes.

Andhra Pradesh is the second Indian state, after Gujarat, to enter the oil and gas exploration and production segment

through bids for oil and gas blocks under the central governments New Exploration Licensing Policy (NELP).

The Andhra Pradesh government decided to enter the oil and gas exploration and development sector and set up a special

purpose vehicle (SPV), the Andhra Pradesh Gas Infrastructure Corp Limited (APGIC), as a joint venture between two state

owned entities.

The infrastructure provider for industries in the state, Andhra Pradesh Industrial Infrastructure Corporation (APIIC), owns

51.0 per cent in the SPV and the remaining is held by AP Genco.

APGIC secured four blocks under auction as part of a consortium led by ONGC. APGIC owns 10 per cent in the consortium,

while other partners ONGC, British Gas and Oil India hold 40 per cent, 35 per cent and 15 per cent, respectively.

Recently, the DGH has earmarked a stretch of more than 39,000 sq km in Kadapa district in Rayalaseema region as a

potential exploration site for natural resources. This region is most likely to be lined up for bidding in the upcoming rounds of

NELP.

Source: Ministry of Petroleum and Natural Gas, News articles

Recently, the Visakhapatnam-Kakinada Petroleum,

Chemical and Petrochemical Investment Region Special

Development Authority (VK- PCPIR SDA) has released the

final draft master plan and zonal development plans with the

land use proposals.

The PCPIR project would boost refining, petrochemicals

and chemical industries and also the manufacturing sectors

in the state.

The project will bring investment in the state and will help to

boost trade, revive exports, develop infrastructure and

increase employment.

HPCL is considering the setting up of a greenfield 15

mmtpa refinery-cum-petrochemical complex in the region

which would require investments to the tune of US$ 10-12

billion.

Moreover, the company is about to expand capacity at its

refinery in Visakhapatnam from the current 8.3 mmtpa to 15

mmtpa over 3 to 4 years with an investment of US$ 0.9

billion.

Source: Andhra Pradesh PCPIR

MMTPA: Million Metric Tonnes Per Annum

Major investors in PCPIR

Key features of PCPIR

The investments generated in the PCPIR are estimated to

be around US$ 72.3 billion.

Total area 640 sq km; Processing area 270 sq km

The project is said to have an employment generation

capacity of 1.2 million

As per the latest update, total committed investments

stood at US$ 57.2 billion

The petroleum and petrochemical sector accounted for

around 63 per cent of total committed investment.

Seemandhra is rich in mineral resources which include

manganese, limestone, mica, steatite, copper, graphite etc.

Manganese ore is located across Nellore, Prakasam,

Vizianagaram and Srikakulam, mica is found around

Krishna, Nellore, Visakhapatnam etc whereas limestone is

found around Kadapa district.

During 2012-13, the state generated annual mineral

revenues of US$ 149.4 million compared to a target

revenue of US$ 177.4 million.

The total mineral revenues comprised of US$ 58.7 million

from major minerals and US$ 90.8 million from minor

minerals.

Seemandhra region has abundant reserves of uranium in

Tumalapalli village located in Kadapa. According to a study

conducted by the Atomic Energy Commission of India, the

mine is expected to have the largest reserves of uranium in

the world.

The Government of India has started exploration of sizable

uranium deposits in YSR districts in Andhra Pradesh

through M/s. Uranium Corporation India Ltd, a public sector

undertaking.

Source: Indian Mineral Scenario States, Ministry of Mines website, www.mines.nic.in

Minerals Availability across districts

Manganese ore Nellore, Prakasam, Vizianagaram and

Srikakulam

Mica

Krishna, Nellore, Chittoor, Ananthapur,

West Godavari, Visakhapatnam, Guntur,

Chittoor, Ananthapur,and West

Godavari

Steatite/talc Ananthapur, Chittoor, Cuddapah and

Kurnool

Copper Cuddapah, Guntur, Kurnool, Nellore and

Prakasam

Graphite East Godavari, West Godavari,

Visakhapatnam and Srikakulam

Leather

The state is a major producer of hides and skins. Majority of the leather production is done

in the Nellore region.

The government provides financial assistance in the form of investment grants to the

extent of 30.0 per cent of cost of plant and machinery for small scale industries (SSI) and

20.0 per cent of cost of plant and machinery for other units, subject to a ceiling of US$

120,000 for technology upgradation or/and expansion.

The state government plans to promote a few more leather clusters across the state for

providing basic infrastructure for artisans and small and medium enterprises.

Moreover, the government is also planning to set up a leather complex in Kothapatnam,

close to Krishnapatnam port and 160 km from Chennai and Ennore Ports.

Gems and Jewellery

The state produces a wide array of precious and semi-precious stones as well as pearls.

Gold is mostly available across Anantpur, Chittoor and Kurnool districts of the state.

During the year 2009-10, the government has identified new gold deposit areas in the

northern part of Ramagiri-Penakacherla of Anantapur district

Diamond is mostly found at Cuddapah, Anantapur, Kurnool, Krishna, Godavari and Guntur

districts.

APTDC: Andhra Pradesh Tourism Development Corporation

Hospitality, leisure and

entertainment

Being a major tourist hub in the country, the state is making rapid strides in the hospitality

industry.

With various corporates planning to have their footprint in the state, it will help in the

development of the industry.

The industry will get a further boost once the central government finalises the new capital

for the state.

In order to support the growth of the industry, APTDC is planning to implement various

projects which include the introduction of cottages, jetties, houseboats in Krishna and

Godavari rivers.

Some of the other projects of the corporation include the Visakhapatnam-Bheemli beach

corridor project, the Kalingapatnam temple circuit, a beach resort at Chintapalli in

Vizianagaram and a budget hotel at Arasavalli, etc.

Steel

The state also produces steel from its Visakhapatnam Steel Plant

The company exports steel products to Japan, Germany, United States, Singapore, Dubai,

Australia and various South American countries

Apart from the plant, the government is planning to set up a public sector steel plant (Steel

Authority of India) in Kadapa.

The company will examine the feasibility of establishing an integrated steel plant in the

location within six months from the appointed date.

Andhra Pradesh is the first state in the country to have enacted the Industrial Single Window Clearance Act No 17 of 2002.

The Act made it compulsory for new industries to register with the single-window to obtain clearances quickly. It also

simplified procedures for getting industrial clearances.

Committees were constituted at district and state levels to communicate to the applicant the status of their clearances. It has

set time slots for issuing clearances and incorporated a provision for deemed approval after the expiry of the time limit.

District level committees can clear investments not exceeding US$ 219,442. State level committees can clear those

exceeding US$ 219,442.

Above the district and state level committees is an empowered committee headed by the Chief Secretary of the state

government, who reviews and monitors disposal of applications. Overall, a State Board under the chairmanship of the Chief

Minister oversees the progress of the scheme.

The maximum time taken to issue clearance of applications at all stages is 45 days. Violation of the provisions of the Act

made either through self-assessment or otherwise would invite a penalty of US$ 109 in the first instance and US$ 219 in the

second instance.

Corporations under Industries and Commerce Department

Andhra Pradesh Industrial Development Corporation (APIDC)

Andhra Pradesh Industrial Infrastructure Corporation (APIIC)

Andhra Pradesh Mineral Development Corporation (APMDC)

Andhra Pradesh State Finance Corporation (APSFC)

Andhra Pradesh State Trading Corporation (APSTC)

Andhra Pradesh State Handloom Weavers Co-operative Society Limited (APCO)

Leather Industries Development Corporation of Andhra Pradesh (LIDCAP)

Andhra Pradesh Handicrafts Development Corporation (APHDC)

Andhra Pradesh Khadi & Village Industries Board (KVIB)

Agency Contact information

Andhra Pradesh Industrial Infrastructure

Corporation

6th Floor, Parisrama Bhavan Fateh Maidan Road, Basheerbagh

Hyderabad - 500 004 Phone: 91-40-2323 7622, 2321 2798

Fax: 91-40-2323 3393, 2323 3251 E-mail: [email protected]

Website: www.apiic.in

Department of Industries and Commerce

Industries and Commerce Department 2nd Floor, D Block, Room No-348A

Secretariat Hyderabad - 500022

Phone: 91-040-23454449 Fax: 91-040-23452985

E-mail: [email protected] Website: http://industriesportal.apcgg.gov.in/

S No Approvals and clearances required Respective departments of state Estimated time

1 Registration, Industrial Entrepreneurs

Memorandum (IEM), Industrial Licenses Registrar of Firms 7 days

2 Allotment of Land/Shed in Industrial Estates or Industrial Areas

Andhra Pradesh Industrial Development Corporation

7 days for up to 1,000 sq m

21 days for above 1,000 sq m

3 Acquisition and alienation of government lands

Chief Commissioner of Land Administration (CCLA)

45 days

4 Site and Building Plan Approval

Panchayat Raj Department

7 days

Urban Development Authority

Town and Country Planning

Municipality

5 Change of land use

Urban Development Authority

45 days Town and Country Planning

Municipality

Source: Commissionerate of Industries, Government of Andhra Pradesh


6 Consent for establishment under Pollution Control

Green

AP Pollution Control Board

7 days

Orange 21 days

Red 45 days

7 Consent for operation

under Pollution Control

Green

AP Pollution Control Board

7 days

Orange 21 days

Red 45 days

8 No-Objection Certificate for Fire Safety Fire Services Department 15 days

9 Permission for Establishment of Distillery

Excise Department

30 days

10 Licence for possession and use of Rectified Spirit

7 days

11 Licence for possession and use of Denatured Spirit

7 days

12 VAT/CST registration Commercial Taxes Department 7 days



13 Power feasibility

Power distribution companies

7 days

14 Power connection 23 days

15 Approval of factory plans

Factories department

7 days

16 Factory license 7 days

17 Sanction of water supply Vijayawada Municipal Corporation, Visakhapatnam Industrial Water Supply Company

7 days

18 Water connection 23 days

19 Permission to draw water from rivers and/or public tanks

Irrigation department 30 days


Parameter Cost estimate

Land price (US$ per sq m) 19.8 to 127.6

Labour cost (minimum wages per day) US$ 1.2 to US$ 7.9

Commercial Lease rent (US cents per sq ft per month) 15.2 to 112.2

Electricity (US cents per kWh) Commercial: 8.0 to 18.7

Industrial: 7.6 to 12.5

Residential rent (US cents per sq ft per month) 4.7 to 29.4

Five-star hotel room (US$ per night) 60 to 92

Water cost (US$)

Industrial (Visakhapatnam): 0.37 per 1,000 litres

*Residential: 2.58 to 3.68 per annum from Household Service

Connections

Source: Vijayawada Municipal Corporation, Visakhapatnam Industrial Water

Supply Company, Property Sites, News articles, Travel Sites

Electronic Hardware Policy 2012-2017

To provide special incentives and facilities for the electronic hardware sector in line with the

present ICT policy. The policy would cover areas such as industrial electronics, communication &

broadcast equipment, computers & peripherals, and strategic electronics & components

(semiconductors, solar & displays).

Read more

Objective

Andhra Pradesh Solar Power Policy - 2012

To encourage, develop and promote solar power generation in the state with a view to meet

growing demand for power in an environmentally and economically sustainable manner.

To attract investment in the state for the establishment of solar power plants. Read more

Objectives

Food Processing Policy 2010-2015

To provide a special focus to the food processing industry by extending the benefits for five years

from April 2010 to March 2015. The policy would cover areas such as horticulture, agriculture,

animal husbandry, fisheries, agro food processing industries and allied industries.

Read more

Objective

Industrial Investment Promotion Policy (IIPP) 2010-2015

To build a strong and vibrant industrial economy that spins off large capital formation in the

state and advances inclusive development of all sections of the population and industry that

creates increasing employment opportunities, and raises wage incomes to higher levels

through skill upgradation to improve the quality of life of citizens of the state. Read more

Objective

Information and Communications Technology (ICT) Policy 2010-15

To make Andhra Pradesh one of the fore runners in the IT sector in the country The objective would

be achieved through the following initiatives:

Provision of congenial, industry friendly and proactive climate for IT companies to locate, grow

and sustain their operations in a most competitive and hassle-free environment.

Creation of employment opportunities for the educated youth of all sections of the society across

regions.

Achieving higher levels of exports, resulting in enhanced productivity and augmentation of GSDP

To spread IT to every nook and corner of the state.

Leverage IT as a tool for the socioeconomic development of the state. Read more

Objective

Biotechnology Policy 2001

To undertake a detailed inventory evaluation of bio-resources in the state to encourage research

and development (R&D), develop high quality infrastructure and provide special incentives to the

biotech industry. Read more

Objective

Tourism Policy 2010

To position the state competitively for attracting private sector investments in the tourism and

hospitality sectors.

To target incentives to the private sector better as per the state government's priorities in terms

of geographical areas and tourism products.

To focus on maximum generation of employment in the sector by the development of human

resources through capacity building.

Read more

Objectives

Year INR equivalent of one US$

2004-05 44.81

2005-06 44.14

2006-07 45.14

2007-08 40.27

2008-09 46.14

2009-10 47.42

2010-11 45.62

2011-12 46.88

2012-13 54.31

2013-14 60.28

Average exchange rates

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Andhra Pradesh August 2014

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