Professional Documents
Culture Documents
Andhra Pradesh August 2014
Andhra Pradesh August 2014
Andhra Pradesh August 2014
corridor
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.
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
Tourist destinations
Rich in hydrocarbon
and mineral resources
Large number of
operational SEZs
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.
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.
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.
Andhra Pradesh has 17 operational SEZs in the state across diversified sectors located
mainly across Visakhapatnam, East Godavari and Nellore.
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.
Police forces
High Court
Services of employees
Water resources
Energy
Higher education
New capital
High
economic
growth
Growing
demand
2013-14
Installed
power
capacity:
~9,555 MW
Long coastline
Advantage
Andhra
Pradesh
Adequate power
generation capacity
2020E
Installed
power
capacity:
~20,000
MW
Rich in hydrocarbon
reserves
Andhra
Pradesh
Parameters
Capital
Hyderabad^
160,205
13
308
49.4
24.7
24.6
996
67.4
Parameter
Andhra
Pradesh
All States
Economy
2012-13
2012-13
4.5
100.0
15.2
15.5
1,563.7
1,414.4
9,555.0
249,488.3
67,192,201
910,157,975
1,342,750**
65,330,000
3,144
79,116.0
1+14
13+187
133
Source
Physical Infrastructure
Installed power capacity (MW)
Airports (No)
^For undivided state, *Calculated in Indian Rupee terms from 2004-05, **As of December 2011, ^Estimates
Andhra
Pradesh
All-States
Source
67.4
73.0
17.5
21.6
8.8*
223.0
198.1
2,414.2
CMIE (2013-14)
120
1,339
SEZs (No)
42
392
Parameter
Social Indicators
Investment
FDI equity inflows (US$ billion)^
Outstanding investments (US$ billion)^
Industrial Infrastructure
51.4
2008-09
2010-11
38.6
2009-10
2005-06
77.2
70.1
57.6
52.7
2007-08
33.4
2006-07
30.1
2004-05
78.2
2012-13
CAGR
15.2%*
2011-12
46.6
71.2
70.2
2012-13 (E)
47.4
2008-09
2007-08
CAGR
15.4%*
2011-12 (E)
52.4
34.7
2010-11 (E)
2009-10
2006-07
2005-06
2004-05
27.1
30.1
CAGR
14.2%*
1,106.2 1,069.8
816.1
1,550.0
1,188.1
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
714.0
2005-06
2004-05
647.7
1,584.6
1,432.7
CAGR
14.4%*
993.6
968.4
1,441.5 1,410.1
1,303.3
1,080.8
734.4
2012-13 (E)
2011-12 (E)
2010-11 (E)
2009-10
2008-09
2007-08
2006-07
643.7
2005-06
2004-05
583.4
1,424.0
CAGR
11.7%*
987.7
1,287.5
1,400.0
1,065.3
961.7
730.2
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
639.4
2005-06
2004-05
579.3
15.6%
49.7%
21.6%
16.2%
23.0%
29.9%
14.0%
27.3%
2004-05
Agriculture
2012-13
Industry
Services
Area under
production
000 Ha (2012-13)
Crop production
000 tonnes
(2012-13)
Rice
2772.4
6863.0
Maize
233.4
NA
3210.7
9363.0
Pulses
1373.5
1133.0
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
Crop
Area covered
(million acres)
Completed
10
46.8
Ongoing
14
28.0
Contemplated
27.3
Area covered
(million acres)
Completed
50
0.6
Ongoing
11
0.2
Contemplated
0.1
29
30
27
24
25
2013-14
29
2012-13
2011-12
2010-11
2009-10
2008-09
1,303
1,350
900
450
173
0
Rayalaseema
Coastal Andhra
Road type
Source: Andhra Pradesh state portal
National Highways
3,144
Total roads
42,137
38,696
Concrete/metalled/unmetalled
3,441
64
66
68
67
59
59
2012-13
2013-14
54
36
18
0
2008-09
2009-10
2010-11
2011-12
15,036
16,095
16,949
17,495
13,409
11,639
8,176
9,555
Telangana
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.
Location
Primary industry
Vishakhapatnam
Multi-product, IT/ITeS
Achutapuram, Visakhapatnam
Textile
Mandal, Visakhapatnam
Pharmaceuticals
Pharmaceuticals
Footwear
Hetero Infrastructure
Nakkapalli
Pharmaceuticals
Parry Infrastructure
Kakinada
Food processing
East Godavari
IT/ITeS
Nellore
Multi product
Nellore
Leather sector
Nellore
Multi product
Source: www.sezindia.nic.in
SEZ: Special Economic Zone
Andhra Pradesh has five SEZs with valid in-principle approvals and 42 SEZs with formal approvals, as of July 2013.
Name/Developer
Location
Primary industry
Building materials
Ananthapur
Multi-product
Pharmaceuticals /APIs/formulations
Chemicals &
pharmaceuticals
Visakhapatnam
Source: www.sezindia.nic.in
Sector
Under
government
Project cost
(US$ million)
Stage
Energy
Central
2916.7
Construction
Krishnapatnam Port
Ports
State
866.7
Operational
Ports
State
659.3
Operational
Gangavaram Port
Ports
State
308.3
Operational
Vijayawada-Gundugolanu Section
Roads
Central
280.7
Bidding
Roads
Central
269.5
Bidding
Roads
Central
264.2
Construction
Ports
State
265.0
Construction
Energy
State
170.8
Operational
IT
State
75.0
Operational
Infrastructure
State
52.2
Operational
Urban development
State
4.5
Reversion
Project name
Krishnapatnam Ultra Mega Power Project
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.
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
Wireless subscribers^
67,192,201
Wire-line subscribers^
2,020,044
Broadband subscribers^
1,342,750*
Telephone exchanges^
4,266**
130,282**
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
Course
Junior colleges
Number of
colleges
(2011-12)
Number of
students
enrolled
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
17.1
42.8
275
Dispensaries
1,021
13
Regular doctors
5,086
Contract doctors
612
Beds available
25,769
266.0
225.0
150.0
75.0
20.4
21.2
11.3
0.9 1.3
7.4
Tirupati
Kakinada
0.0
Vizag
Vijayawada
2011-12
2012-13
Proposed ITIRs
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.
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.
Visakhapatnam ITIR
Tirupati/Anantapur/
Nellore ITIR
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.
Source: News articles
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
27
122.8
Employment ('000s)
Major indicator
5 per cent
Investments in IT
Broadband penetration
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.
Tech Mahindra
IBM
Wipro
Eisai
Granules India
Hospira
Dr Reddy's Laboratories
Aurobindo Pharma
Mylan
Omnichem
Aurobindo Pharma
Ltd
Dr Reddy's
Laboratories
Mylan Laboratories Ltd (formerly known as Matrix Laboratories Ltd) is a subsidiary of USbased 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.
CAGR
27.6%*
404.7
340.2
272.6
150.2
2006-07
149.2
2007-08
2008-09
2009-10
2010-11
2011-12
CAGR
35.5%
565.7
199.9
199.3
2008-09
2009-10
623.1
286.5
1010-11
2011-12
2012-13
2013-14*
Mondelez India
Foods Ltd
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 agrifoods, 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).
ITC
115.0
104.2
103.6
2010
2011
2012
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.
Minerals
Manganese ore
Mica
Steatite/talc
Copper
Graphite
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.
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.
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.
Agency
Contact information
S No
Registrar of Firms
Estimated time
7 days
7 days for up to
1,000 sq m
21 days for above
1,000 sq m
45 days
7 days
Town and Country Planning
Municipality
Urban Development Authority
45 days
Municipality
Source: Commissionerate of Industries, Government of Andhra Pradesh
S No
Green
6
Orange
Estimated time
7 days
21 days
Red
45 days
Green
7 days
Orange
Red
8
10
11
12
VAT/CST registration
21 days
45 days
15 days
30 days
Excise Department
7 days
7 days
7 days
S No
13
Power feasibility
Estimated time
7 days
Power connection
15
23 days
7 days
Factories department
16
Factory license
17
18
Water connection
19
7 days
7 days
23 days
Irrigation department
30 days
Parameter
Land price (US$ per sq m)
Labour cost (minimum wages per day)
Commercial Lease rent (US cents per sq ft per month)
Electricity (US cents per kWh)
Residential rent (US cents per sq ft per month)
Five-star hotel room (US$ per night)
Cost estimate
19.8 to 127.6
US$ 1.2 to US$ 7.9
15.2 to 112.2
Commercial: 8.0 to 18.7
Industrial: 7.6 to 12.5
4.7 to 29.4
60 to 92
Industrial (Visakhapatnam): 0.37 per 1,000 litres
*Residential: 2.58 to 3.68 per annum from Household Service
Connections
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
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
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
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 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
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
Read more
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
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