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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 country‟s 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.
Source: Andhra Pradesh state portal
^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 &
Planning Commission Databook, July 2014
Per capita GSDP^ (US$) 1,563.7 1,414.4 Andhra Pradesh State Portal, May 2014 &
Planning Commission Databook, July 2014
Physical Infrastructure
Installed power capacity (MW) 9,555.0 249,488.3 Central Electricity Authority, as of June 2014
and Business Line citation
Wireless subscribers (No)^ 67,192,201 910,157,975 Telecom Regulatory Authority of India,
as of May 2014
Broadband subscribers (No)^ 1,342,750** 65,330,000 Ministry of Communications & Information
Technology, as of May 2014
National highway length (km) 3,144 79,116.0 Ministry of Road Transport & Highways, Andhra
Pradesh State Portal
Major and minor ports (No) 1+14 13+187 Indian Ports Association
Airports (No) 8 133 Andhra Pradesh State Portal, AAI
^For undivided state, *Calculated in Indian Rupee terms from 2004-05, **As of December 2011, ^Estimates
Parameter Andhra
Pradesh All-States Source
Social Indicators
Literacy rate (%) 67.4 73.0 Provisional data - Census 2011
Birth rate (per 1,000 population)^ 17.5 21.6 SRS Bulletin (www.censusindia.gov.in),
October 2013
Investment
FDI equity inflows (US$ 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 Pradesh‟s 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.
Source: Andhra Pradesh state portal
*In Indian Rupee terms
GSDP of Andhra Pradesh at current prices
(in US$ billion)
CAGR
15.2%*
At current prices, Andhra Pradesh‟s 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*.
Source: Andhra Pradesh state portal
*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 Pradesh‟s 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.
Source: Andhra Pradesh state portal
*In Indian Rupee terms
Per capita calculated based on population growth
between 2001 and 2011 census figures
GSDP per capita of Andhra Pradesh at
current prices (in US$)
CAGR
14.2%*
583.4 643.7
734.4
993.6 968.4
1,080.8
1,303.3
1,441.5 1,410.1
2004-0
5
2005-0
6
2006-0
7
2007-0
8
2008-0
9
2009-1
0
2010-1
1 (
E)
2011-1
2 (
E)
2012-1
3 (
E)
Andhra Pradesh‟s per capita NSDP grew from US$ 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.
Source: Andhra Pradesh state portal
*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
current prices (in US$)
CAGR
14.4%*
579.3 639.4
730.2
987.7 961.7
1,065.3
1,287.5
1,424.0 1,400.0
2004-0
5
2005-0
6
2006-0
7
2007-0
8
2008-0
9
2009-1
0
2010-1
1
2011-1
2
2012-1
3
Andhra Pradesh‟s per capita income grew from US$ 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.
Source: Andhra Pradesh state portal
*In Indian rupee terms, E- Estimates
Per capita Income of Andhra Pradesh at
current prices (in US$)
CAGR
11.7%*
29.9% 27.3%
21.6% 23.0%
48.5% 49.7%
2004-05 2012-13
Agriculture Industry Services
During 2012-13, the service sector accounted for 49.7 per
cent (US$ 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%
Source: Andhra Pradesh state portal
*In Indian Rupee terms
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
Source: Andhra Pradesh state portal
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.
Source: Andhra Pradesh state portal
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$486 million in the
corresponding period a year earlier.
During the period, Vizag‟s share of seafood exports stood at
23 per cent in terms of value and 22 per cent in terms of
dollar realisation.
Exports from the port are expected to increase in the near
term as it has taken up two major projects to extend the
existing container terminal and modernisation & upgradation
of the iron ore handling complex. Source: Port of Visakhapatnam
Total exports turnover from Vizag Port
(million tonnes)
29 29 30 27
24 25
2008-0
9
2009-1
0
2010-1
1
2011-1
2
2012-1
3
2013-1
4
The divided Andhra Pradesh will grow as an economic
powerhouse as the state‟s coastal region will attract
investment which was earlier concentrated mainly towards
Hyderabad.
The location advantage of the state has helped it to witness
increasing investment in the coastal Andhra region over the
last few years. This was mainly from manufacturing sectors
like pharma, chemicals, mining, petrochemicals, etc.
The state has the potential to develop various growth
centres along the coastline like Visakhapatnam,
Vijayawada, Nellore and Anantapur.
Moreover, the proposed Visakhapatnam Kakinada
Petroleum, Chemicals and Petrochemicals Investment
Region (PCPIR) is expected to attract huge investment.
Recently, a commitment was made by the Industrial
Development Forum that Andhra Pradesh is expected to
receive investment to the tune of US$ 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
Source: Andhra Pradesh state portal
Source: Andhra Pradesh state portal
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 airport‟s
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
Divi‟s 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
Source: Andhra Pradesh state portal
*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 state‟s 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 APIIC‟s 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 company‟s 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 company‟s 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
world‟s 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 lion‟s 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 state‟s 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 Mondelēz International, Inc. It operates in five
categories – chocolate confectionery, beverages, biscuits, gum and candy. The company‟s
key brands in India include Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville,
Celebrations, Gems, Halls, Éclairs, 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. Cargill‟s 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 ITC‟s 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
state‟s 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 government‟s 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
S No Approvals and clearances required Respective departments of state Estimated time
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
Source: Commissionerate of Industries, Government of Andhra Pradesh
S No Approvals and clearances required Respective departments of state Estimated time
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
Source: Commissionerate of Industries, Government of Andhra Pradesh
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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