Economy of Visakhapatnam

Areal view of Visakhapatnam city

Visakhapatnam is the largest city of Andhra Pradesh and the 10th largest city by GDP in India with $26 billion with CAGR of 16% [1][2] Fishing industry, road–rail connectivity, many heavy industries like Vizag Steel, GAIL,

Hindustan Shipyard, Visakhapatnam Steel Plant etc., are the factors that made the city into an industrial hub,

from a small hamlet.[3] Tourism also plays an important role in generating revenue, with numerous tourist

destinations in and around the city.[4] Blessed with a natural harbour and one of the largest ports of India, sea

trade was made possible with other countries which also boosts the economy.[5]

With a population of around 30 lakhs, visakhapatnam is the finance capital of andhra pradesh.

Visakhapatnam is also top 10th

richest city in India.

http://www.hellotravel.com/stories/top-10-richest-cities-in-india

Fisheries

Fishermen at work, Visakhapatnam

Fishing is a major occupation in Visakhapatnam, as many fishermen depend on fishing for their livelihood. The

fishing harbour at Visakhapatnam Port Trust is one of the biggest in the coastal corridor of Andhra Pradesh and

also exports seafood such as Tuna.[3][6] Fish preserving by drying, processing and curing activities takes place at

the harbour. The dried fish is sent to markets in Tamil Nadu, Karnataka, and Orissa, and also exported to Sri

Lanka, Singapore, Burma and others.[7] Ice factories in and outside the Visakhapatnam Fishing Harbour can

produce tonnes of ice, catering to the needs of the fishermen and also provides industrial employment.[8][9]

Ports

The City, overlooking seaport

Visakhapatnam Port is one of the largest cargo handling ports in India. It can accommodate 150,000 DWT

vessels and draft up to 17 m (56 ft).[10][11] The port during 2013-14 period, handled 58 million tonnes of cargo and

also a cape size vessel in the outer harbour. Neighboring ports, current projects, decline in iron ore exports,

Gangavaram Port, lead to loss of cargo to Visakhapatnam Port.[12]

A ₹13000 (US$200) crores modernisation and expansion program of the port is underway, to increase the

capacity to 130 million tonnes by 2016–17.[13] Products moved through the port include petroleum, steel,

minerals, and foods.[14]

The inauguration of the Gangavaram Port, located 15 km away from the Visakhapatnam Port, has led to a

significant diversion of traffic away from Visakhapatnam. It has the capacity of accommodating ocean liners of

200,000–250,000 DWT. The Visakhapatnam Port Trust plans to develop a satellite port at Bheemunipatnam to

reduce the traffic.[15]

SEZs and Industrial parks

There are Special Economic Zones (SEZs) and industrial corridors such as Visakhapatnam Special Economic

Zone (VSEZ),[16] APSEZ, APIIC, Aganumpudi Industrial Park, Visakha Dairy, JNPC.[17] Brandix Apparel City,

are located in and around the city. APIIC, is special economic zone for industries such as Pokarna Limited,

Nagarjuna AgriChem, Abhijit Ferro Alloys etc. Brandix India Apparel City, a textile-based SEZ in

Atchutapuram is situated in an area covering 1,000 acres (400 ha).[18] This SEZ has textile manufacturering

companies like Pioneer Elastic Fiber, Quantum Clothing etc.[19]

Drugs and pharmaceuticals

Ramky Pharma City (India) Limited, renamed as Jawaharlal Nehru Pharma City, is a Public Private Partnership

between Government of Andhra Pradesh and Ramky Group. It is a special purpose entity, setup for the

manufacturing of Bulk Drugs and Pharmaceuticals. It is the first industrial township in India, spread over an

extent of 2,400 acres (970 ha) with 102 companies and 8698 employees, presently in operational.[20] PharmaZell

of Germany and Eisai Pharma of Japan, French collaboration with SNF Ltd, and joint US venture Aptuit Laurus

Labs are the major companies in the pharma city.[21][22]

Heavy industries

Hindustan shipyard

The defense administered Hindustan Shipyard Limited, built the first ship of India in 1948, which was named as

Jala Usha and also built 167 various size of ships.[23] The ports and shipyard in the city led to the establishment

of several large scale industries such as, GAIL, RINL, HPCL, BHEL, Hindustan Zinc, Dredging Corporation of

India, Coromandel Fertilizers, Reliance and Brandix etc.[24][25]

Steel plant

Visakhapatnam Steel Plant, whose corporate entity RINL is the second largest state-run steel industry. The

capacity of the plant has been upgraded to 6.3MT, and it covers an area of 20,000 acres (81 km2). It is planned

to become a 20MT plant in the future, the largest plant in a single location. The plant had revenues of ₹144570

million (US$2 billion) for 2011–2012 and has about 17,800 employees.[26]

Software industry

Tech Mahindra Development Centre

The ITES and IT sector is growing at its pace in the city of Visakhapatnam, the generated revenue from these

sectors are a boon to the economy.[27] The IT special economic zone and incubation center exists at Rushikonda

Hills, of the city. There are many national and multi–national IT/ITes and banking firms such as Mahindra

Satyam, Wipro, Kenexa, Infotech, IBM, Sutherland, and HSBC etc. Software exports from Visakhapatnam have

increased by nearly 90% each year.[28]

The IT exports from the city for 2012 were Rs 1200 crore and 16,000 people were employed. According to data

released by the state IT department for the financial year 2012–13, IT industry registered an impressive in

IT/ITeS revenues, that generated ₹1445 crore (US$220 million), an increase of 20%, compared to the previous

financial year. The same year saw an increase in employment, generated by the IT/ITeS industry, with 16,988

jobs as compared to 16,000 in 2011–12 period.[29] The Information Technology Investment Region (ITIR)

project, planned by the Government of Andhra Pradesh, may generate employment to approximately, up to 15

lakh IT professionals and also the it can generate revenue for the economy, of up to ₹3.11 crore

(US$470,000).[30]

Minerals and resources

Visakhapatnam and its surrounding areas are having mineral deposits of quartzite, bauxite, graphite,

manganese, titanium, silica sand and 1,000 MT of bauxite reserves. The Iron ore and other minerals, from the

neighbouring states are transported through rail and road to Visakhapatnam. These minerals are exported

through sea to other countries.[31] Ilmenite is used for extraction of titanium and Monazite for extraction of

thorium are found at Bheemunipatnam.[32] Ferroalloy plants, Aluminium refineries (such as Anrak Aluminium

and Jindal Aluminium) are developing, due to the close proximity of manganese and bauxite.[33]

HPCL Petrochemical Complex

Petro corridor

Visakhapatnam holds crude oil reserves with Hindustan Petroleum Corporation Refinery, IOC and BPCL have

their bottling units in the city.[34] Visakhapatnam is a part of the Visakhapatnam–Kakinada Petroleum, Chemical

and Petrochemical Investment Region (VK PCPIR), proposed between Visakhapatnam and Kakinada.[35]

Power plants

Simhadri Super Thermal Power Plant is a coal-based power plant under the ownership of NTPC Limited. It has

a capacity of 2000 MW with 4 units of 500 MW each.[36] Hindujas has begun construction of a 1,040 MW coal-

based thermal power plant in Visakhapatnam district with two 520 MW units.[37]

Tourism

“The highest revenue earner for the AP Tourism Department is the Visakhapatnam region,” The famous temple

of Sri Varaha Lakshmi Nrusimha Swamy at Simhachalam, Araku, Borra Caves, Buddhist heritage sites dotting

the city and district, ‘Erramatti Dibbalu’, the beaches in the city and at Bheemunipatnam, and Kailasagiri draw

tourists not only from various parts of Andhra Pradesh but also from other states as also abroad.