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Krishnapatnam Industrial Node Development Plan

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Krishnapatnam Industrial Node Development Plan Comprehensive Integrated Master Plan for Chennai Bengaluru Industrial Corridor Final Report Krishnapatnam Industrial Node Development Plan October 2015 Japan International Cooperation Agency PricewaterhouseCoopers Co., Ltd. Nippon Koei Co., Ltd. 4R JR 15-050 Table of Contents 1 Executive Summary 12 2 Introduction 57 2.1 Context of Industrial Corridors for Sustainable Growth 57 2.2 Objective of the Study 58 2.3 Selection of Nodes 59 2.4 Approach & Methodology 61 2.5 Vision for CBIC 64 2.6 Coverage of Final Report 65 3 Overview of Nellore District and Krishnapatnam Industrial Node 66 3.1 Regional Assessment of Krishnapatnam Area 66 3.2 Socio-Economic Profile of Nellore District 69 3.3 Industrial Infrastructure Profile 76 3.4 Overview of the Krishnapatnam Industrial Node 81 4 Node Development Vision – Krishnapatnam 86 4.1 Analytical Framework for Development of Node Vision 86 4.2 Potential as an Industrial Hub for Resource-driven Industries 86 4.3 Vision for Krishnapatnam – Building a Competitive Node 88 5 Industrial Development Analysis 94 5.1 Proposed Industries Mix for Krishnapatnam Industrial Node 94 5.2 Planning development of industry sectors for KPT Industrial node 96 5.3 Implementation of recommendations 141 6 Land Use Plan 144 6.1 Review of Existing Development Plan 144 6.2 Development Framework 146 6.3 Land Use Plan 147 6.4 Development Plan for Residential Area 151 6.5 Implementation Plan (Development Schedule) 152 6.6 Cost Estimate 153 7 Infrastructure Development Plan 154 7.1 Roads and Public Transport 154 7.2 Railways 192 7.3 Logistics 200 7.4 Power 210 7.5 Water 236 Final Report - Krishnapatnam Industrial Node Development Plan PwC/Nippon Koei 1 7.6 Solid Waste Management 266 8 Economic cost benefit assessment 287 8.1 Methodology for economic cost benefit assessment 287 8.2 Assumptions 287 8.3 Key Economic Benefits 290 8.4 Detailed cost-benefit analysis Krishnapatnam IN 292 8.5 Benefit-cost ratio 293 9 Financial Assessment and Planning 295 9.1 Basic assumptions for the Financial Model 295 9.2 Project cost 296 9.3 Revenues 299 9.4 Scenario and Sensitivity Analysis for Project Viability 300 10 Environmental and Social Considerations for Node Development Plan 303 10.1 Introduction 303 10.2 Necessary Environmental Studies for the Prioritized Nodes 303 10.3 Framework for EIA Studies for the Prioritized Node Developments 303 10.4 Initial Environmental Examination (IEE) Study 304 10.5 Recommendations（Necessary Action and Schedule） 311 11 Institutional and Financing Framework for Krishnapatnam Industrial Node 314 11.1 Approach towards formulation of Institutional Framework for CBIC 315 11.2 Assessment of key provisions of administrative and implementation framework for large area industrial developments in India 316 11.3 Key pointers for CBIC from stakeholder consultations on current DMIC structure 321 11.4 Summary of key learnings for CBIC 325 11.5 Proposed Institutional and Financing Framework for development of Krishnapatnam Node and CBIC in Andhra Pradesh 327 12 Investment Environment Improvement 337 12.1 Background 337 12.2 CBIC state investment environment status 337 12.3 Analytical framework 345 12.4 Analysis 346 12.5 Recommendations to improve investment environment 369 11.6 Policy Recommendation on Improvement of Soft Issues 370 13 Way Forward for Development of Nodes 377 Final Report - Krishnapatnam Industrial Node Development Plan PwC/Nippon Koei 2 List of Figures Figure 1.1: Vision and Objective of National Manufacturing Policy ......................................................................... 12 Figure 1.2: Nodes selected for CBIC ........................................................................................................................... 14 Figure 1.3: Industrial hubs in proximity to the Krishnapatnam Industrial Node ................................................... 15 Figure 1.4: Major components of GDDP of Nellore district ...................................................................................... 16 Figure 1.5: Investment composition, Nellore district, % ........................................................................................... 16 Figure 1.6: Node Boundary of Krishnapatnam ......................................................................................................... 30 Figure 1.7: Distribution of Settlements in Krishnapatnam Node ............................................................................ 30 Figure 1.8: Enhancement of Connectivity among Surrounding Cores .................................................................... 32 Figure 1.9: Infrastructure Development Plan for Krishnapatnam Industrial Node ............................................... 34 Figure 1.10: Water Balance for the Phase 3 .............................................................................................................. 39 Figure 1.11: Solid waste management in the Nodefor the Phase 3 ........................................................................... 41 Figure 1.12: Sensitivity Analysis – Master SPV......................................................................................................... 50 Figure 1.13: Sensitivity Analysis – unbundling of utilities ....................................................................................... 50 Figure 1.14: Central level institutional structure for CBIC in Andhra Pradesh ....................................................... 51 Figure 1.15: State level institutional structure for CBIC in Andhra Pradesh .......................................................... 52 Figure 1.16: Option 1- Financing framework for CBIC in Andhra Pradesh ............................................................. 53 Figure 1.17: Option 2- Financing framework for CBIC in Andhra Pradesh ............................................................ 53 Figure 2.1: Vision and Objective of National Manufacturing Policy ........................................................................ 57 Figure 2.2: Trend in manufacturing contribution to GDP across developing countries ......................................... 57 Figure 2.3: Industrial Corridor Development Projects ............................................................................................ 58 Figure 2.4: Study Framework .................................................................................................................................... 59 Figure 2.5: Nodes selected for CBIC including three nodes selected for Master plan development ...................... 61 Figure 2.6: Study Framework ..................................................................................................................................... 61 Figure 2.7: Parameters used for short-listing of potential sector in the corridor ................................................... 62 Figure 2.8: Industry Sectors to be promoted within the corridor ........................................................................... 63 Figure 2.9: Public Private Partnership in Node Development ................................................................................ 63 Figure 3.1: Infrastructure map of Krishnapatnam ................................................................................................... 67 Figure 3.2: Population density in 2013 of Krishnapatnam and the surrounding area ........................................... 67 Figure 3.3: Cluster development of South Nellore ................................................................................................... 68 Figure 3.4: Demographic profile of Nellore district ................................................................................................. 69 Figure 3.5: Employable population and distribution of workers across main categories ...................................... 70 Figure 3.6: GDP composition in Andhra Pradesh and Nellore district, % .............................................................. 70 Figure 3.7: Composition of secondary sector in Nellore district .............................................................................. 71 Figure 3.8: GDP at constant 2004-05 prices, Nellore district vs CBIC districts, Andhra Pradesh and India ...... 72 Figure 3.9: Major components of GDDP of Nellore district .................................................................................... 72 Figure 3.10: Composition of manufacturing sector of Nellore district.................................................................... 73 Figure 3.11: Distribution of employees in registered sector ..................................................................................... 73 Figure 3.12: Per capita income of Nellore district vs Andhra Pradesh and India ................................................... 74 Figure 3.13: Cumulative FDI in AP sector wise ........................................................................................................ 74 Figure 3.14: Upcoming investment in manufacturing sector, Nellore district ........................................................ 75 Figure 3.15: Value of exports in AP and India ........................................................................................................... 75 Figure 3.16: AP exports by major economic groups and dynamics of manufacturing sector exports in AP ......... 76 Figure 3.17: Industrial Hubs in proximity to Krishnapatnam Industrial Node ...................................................... 80 Figure 3.18: Node Boundary of Krishnapatnam .......................................................................................................
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