TELANGANA THE 29th STATE OF INDIA
MAY 2017 (As of 25 May 2017) For updated information, please visit www.ibef.org 1 TELANGANA THE 29th STATE OF INDIA
❖ Executive Summary………………..……. 3 ❖ Advantage State………………...…...…... 4 ❖ Telangana Vision ……………...…...……. 5 ❖ Telangana – An Introduction…….…...…. 6 ❖ Budget 2016-17………………………….. 18 ❖ Infrastructure Status……………….…..... 19 ❖ Business Opportunities………………..…38 ❖ Doing Business in Telangana…...……....52 ❖ State Act & Policies……………………….53
MAY 2017 For updated information, please visit www.ibef.org 2 TELANGANA THE 29th STATE OF INDIA
EXECUTIVE SUMMARY
Economic growth driven • At current prices, Telangana’s GSDP was estimated at US$ 89.10 billion during 2015-16. by service sector • Services sector is the major contributor in the GSDP of Telangana.
• Hyderabad is the major IT hub of the state across the country. During 2015-16, the value Hyderabad – The IT of IT exports from the state of Telangana was recorded at US$ 10.42 billion. The launch of hub of the state T-Hub in November 2015 has created most energetic community of entrepreneurs across the world for boosting the success stories of the start-ups in India.
Growth in annual • In 2016-17, the overall planned and non-planned allocation for various sectors of the state budget amounted to US$ 19.92 billion.
Promoting tourism & • In 2014-15, “Telangana Samskruthika Sarathi”, a distinct state level body was created to generate awareness about the cultural heritage of Telangana and provide information historical past regarding the various policies and schemes of the Government of Telangana.
Source: Telangana State Statistical Year book,2015
MAY 2017 For updated information, please visit www.ibef.org 3 TELANGANA THE 29th STATE OF INDIA
ADVANTAGE: TELANGANA
June 2016 GrowingGrowing economy demand and Rich labour pool 2018 improving infrastructure Installed • Majority of the prominent educational Installed power universities and institutions Telangana are • Telangana’s GSDP grew at a CAGR located in Hyderabad. These institutions power capacity: of 13.76% between 2005-06 and provides a massive pool of labour which capacity: 2015-16. 11,568.76 acts as a catalyst in the development of 23,675 MW MW the state. • The state government plans to build • The state government has announced more airports in the scholarships to attract more youth to state to improve connectivity. these institutions.
Advantage Telangana Availability of Policy and readymade capital institutional support
• Telangana accounts for easy access • Under the Department of Information to capital along with infrastructure Technology, Electronics & Communications, which is benefiting the state. the Government of Telangana introduced • Majority of the multinational three new policies in 2016, namely, companies holds production base in Telangana IT Policy, 2016, Telangana Hyderabad. Electronics Policy, 2016 and Telangana • Information technology and Innovation Policy, 2016. pharmaceutical sectors are the fastest growing sector of the state and driving the economic development of Telangana. Source: Telangana State Statistical Year Book, 2015 GSDP: Gross State Domestic Product MAY 2017 For updated information, please visit www.ibef.org 4 TELANGANA THE 29th STATE OF INDIA
TELANGANA VISION
• To develop Hyderabad as a slum • In next three years, Telangana is free city. expected to be developed as a • Effective implementation of power surplus state welfare schemes.
• Plans to announce industrial Quality of life Power • Ensure people centric, policy to encourage transparent and corruption of people investments in state. free development. • Setting up of faster Promoting • To take steps to eradicate clearances, a single window corruption. system. investments Governance Vision
• Waiver of agricultural loans • No negotiation on maintaining Agriculture Law & order up to Rs 1 lakh. law & order in the state. • Technological advancement • Encouraging people friendly police officials. in agriculture Promoting Infrastructure • Installing CCTV cameras for • Government to encourage research research in agricultural better vigilance. universities.
• Aim to make Telangana the • Hyderabad to have most Seed Bowl of India. Telangana advanced infrastructure facilities. is highly suitable for the • To have two new airports in growth of seeds. Hyderabad, near Shamirpet, • Endorsing greenhouse Jawaharnagar and Ghatkesar. technology and pilot projects. Source: Telangana Government
MAY 2017 For updated information, please visit www.ibef.org 5 TELANGANA THE 29th STATE OF INDIA
TELANGANA FACT FILE
Mahaboobnagar, Ranga Reddy, Hyderabad, Medak, Nizamabad, Adilabad, Karimnagar, Warangal, Khammam and Nalgonda are the 10 districts of Telangana.
Hyderabad, Secunderabad and Warangal are the key cities in the state.
Parameters Telangana Capital Hyderabad Geographical area (sq km) 114,840 Administrative districts (No) 10 Population density (persons per sq km) 312 Source: Maps of India Total population (million) 35.2
In June 2014, Telangana was introduced as the 29th state Male population (million) 17.7 of the India, Hyderabad is the capital of the state. Female population (million) 17.5
Telangana is surrounded by Andhra Pradesh from the south Sex ratio (females per 1,000 males) 988 and east end, Maharashtra and Karnataka from the west, Literacy rate (%) 66.5 and Odisha and Chhattisgarh from the north end.
Telugu is the generally spoken language in the state. Hindi, Source: Population Census 2011, Urdu and English are also usually spoken. Telangana State Statistical Abstract, May 2015
MAY 2017 For updated information, please visit www.ibef.org 6 TELANGANA THE 29th STATE OF INDIA
TELANGANA IN FIGURES … (1/2)
Parameter Telangana All states Source
Economy 2015-16 2015-16
Directorate of Economics & Statistics of GSDP as a percentage of all state’s GSDP 4.30 100.0 Telangana, Central Statistics Office
Directorate of Economics & Statistics of GSDP growth rate (%) 11.71 8.71 Telangana, Central Statistics Office
Directorate of Economics & Statistics of Per capita GSDP (US$) 2,530.7 1546 Telangana, Central Statistics Office
Physical Infrastructure
Installed power capacity (MW) 11,501.28 326,848.53 Central Electricity Authority, as of March 2017
Telecom Regulatory Authority of India, as of Wireless subscribers (No) 84,239,1441 1,164,200,000 February 2017
National Highway length (km) 2,635.84 100,087.08 NHAI & Roads and Building Department
Airports (No) 12 125 Airports Authority of India
1 For undivided State 2International operational airport
MAY 2017 For updated information, please visit www.ibef.org 7 TELANGANA THE 29th STATE OF INDIA
TELANGANA IN FIGURES … (2/2)
Parameter Telangana All states Source
Social Indicators
Literacy rate (%) 66.5 73.0 Census 2011
Birth rate (per 1,000 population) 17.5 21.6 SRS Bulletin Investment
Department of Industrial Policy & Promotion, FDI equity inflows (US$ billion) 13.201 324.47 from April 2000 to December 2016
Industrial Infrastructure
DEA, Ministry of Finance, Government of India, PPP projects Completed & Operational (No) 13 1,246 as of July 2016 Ministry of Commerce & Industry, Department Operational SEZs (No) 26 186 of Commerce, as of July 2016
1Including Andhra Pradesh, PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System
MAY 2017 For updated information, please visit www.ibef.org 8 TELANGANA THE 29th STATE OF INDIA
ECONOMIC SNAPSHOT – GSDP
At current prices, Telangana’s GSDP stood at US$ 89.1 GSDP of Telangana at current prices billion in 2015-16. (in US$ billion)
Between 2005-06 and 2015-16, GSDP of the state grew at a CAGR of 13.79%. 89.10
71.1 65.2 63.9 65.0 57.8
42.9 37.9 41.0 28.1
24.5
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office GSDP* - Socio Economic Outlook 2016
MAY 2017 For updated information, please visit www.ibef.org 9 TELANGANA THE 29th STATE OF INDIA
ECONOMIC SNAPSHOT – NSDP
At current prices, Telangana’s net state domestic product NSDP of Telangana at current prices (NSDP) was estimated at US$ 81.13 billion in 2015-16. (in US$ billion)
Between 2005-06 and 2015-16, the average annual NSDP growth rate was about 14.04%.
81.13
62.7 56.8 56.3 57.4 51.5 38.1 33.6 36.7 21.8 24.9
Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office, Socio Economic Outlook 2016
MAY 2017 For updated information, please visit www.ibef.org 10 TELANGANA THE 29th STATE OF INDIA
ECONOMIC SNAPSHOT – PER CAPITA GSDP
Telangana’s per capita GSDP^ increased to US$ 2,530.7 GSDP per capita of Telangana at current during 2015-16 from US$ 857 over 2005-06. prices (in US$)
Average per capita GSDP rose at a CAGR of 14.44% between 2005-06 and 2015-16.
2530.7
1602 1714 1468 1568 1582 985 1064 1096 657 739
Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office Per Capita GSDP^ - calculated using GSDP million USD / Population in million
MAY 2017 For updated information, please visit www.ibef.org 11 TELANGANA THE 29th STATE OF INDIA
ECONOMIC SNAPSHOT – PER CAPITA NSDP
Telangana’s per capita NSDP grew from US$ 584 during NSDP per capita of Telangana at current 2005-06 to US$ 2,184.89 over 2015-16. prices (in US$)
Average per capita NSDP increased at a CAGR of 14.1% between 2005-06 and 2015-16.
2184.89
1512 1306 1397 1382 1397
873 951 972 584 655
Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office, Socio Economic Outlook 2016
MAY 2017 For updated information, please visit www.ibef.org 12 TELANGANA THE 29th STATE OF INDIA
ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP
At a CAGR of 19.08%, services has been the fastest Percentage distribution of GSDP growing sector among agriculture, industry and services (Current prices) from 2004-05 to 2015-16.
The industry sector increased at a CAGR of 14.13% CAGR between 2004-05 and 2015-16, followed by agriculture (CAGR of 17.44%). 53.81% 19.08% 61.90%
In 2015-16, the services sector contributed 61.90% to the state’s GSDP at current prices. It was followed by the 14.13% 28.28% industry sector (20.40%) and agriculture sector (17.70%). 20.40%
17.91% 17.44% 17.70%
2004-05 2015-16
Primary Sector Secondary Sector Tertiary Sector
Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office Sector-wise %share of GSDPµ -Geometric mean of YoY calculation from 2004-05 to 2014-15
MAY 2017 For updated information, please visit www.ibef.org 13 TELANGANA THE 29th STATE OF INDIA
ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION Annual area & production of key crops Telangana is primarily a rain fed state & Annual Area Annual Production experiences irregular distribution of rain. Crop (‘000 hectare) (‘000 tones) During 2015-16, 5.56 lakh hectare of area 2014-15 2015-16 2014-15 2015-16 was under cultivation of maize, whereas Rice 1,415 951 4,545 2,979 pulses were cultivated over an area of 4.55 lakh hectare, in the state. Cereals 2205 1591 6955 4685 & millets Thus, after the divergence, the state is Pulses 263 408 455 250 expected to grasp a leading position in the Fruits 2613 2046 7218 4935 production of pulses & coarse grains. Cotton 1693 1778 3583 3608 As per state budget 2016-17, 2 waiver instalments out of 4 have been deposited into the bank accounts whereas the 3rd Production of horticulture crops (million MT) instalment is expected to be unconfined during 2016-17. 9.14 7.46 5.28 The state government has proposed an 4.07 2.84 2.66 amount of US$ 1.03 billion for the departments of Agriculture & Cooperation & Marketing. Production of Fruits Production of Production of Vegetables Plantation Crops 2014-15 2015-16 Source: Telangana Socio Economic Outlook 2016, Telangana State Budget 2016-17,
MAY 2017 For updated information, please visit www.ibef.org 14 TELANGANA THE 29th STATE OF INDIA
ECONOMIC SNAPSHOT – INVESTMENTS & EXPORTS
In June, 2015, the Government of Telangana Investment intentions in terms of IEMs filed, introduced a new industrial policy to attract LOIs/DILs issued in Telangana domestic as well as international investments in the industrial sector of the state, with emphasis on core manufacturing sectors. 3,294.06
Additionally, a legal framework has been provided 2,267.90 in the policy to make the existing industries more 2,090.90 1,822.20 competitive, which is expected to boost the quality 1,591.43 of goods manufactured in the state. 1,307.60 1,032.70
Telangana is one of the leading exporters of IT 13.23 services in India. In 2016-17, the overall IT 176 132 132 134 145 139 117 5 exports from Telangana were valued at US$ 12.71 billion. 2010 2011 2012 2013 2014 2015 2016 2017 Number of Investment Intentions Proposed Investments (US$ Million) According to the Department of Industrial Policy & Promotion (DIPP), cumulative FDI inflows(2) in Telangana from April 2000 to December 2016, Source: Department of Industrial Policy & Promotion, Government of India totaled US$ 13.2 billion. Ministry of Commerce & Industry, Government of India (1) As of January 2017 (2) Including Andhra Pradesh In January 2017, the state government signed IEMs – Industrial Entrepreneur Memoranda MOUs for several investments and strategic LOIs – Letters of Intent partnerships, worth USD 503.04 million. The DILs – Direct Industrial Licences investment also includes setting up of Life Sciences Infrastructure Fund in the state.
MAY 2017 For updated information, please visit www.ibef.org 15 TELANGANA THE 29th STATE OF INDIA
ECONOMIC SNAPSHOT – IRRIGATION....(1/2)
The major sources for water for irrigation purpose in the state are Godavari and Krishna Rivers & branches. Telangana also Irrigation projects status (as of October 2015) uses water from tanks & ponds for irrigation. Major irrigation projects Numbers
During 2015-16, share of Telangana in the water of Godavari & Completed 8 Krishna was recorded to be 1,250 thousand million cubic feet. Ongoing 17 Further, the state also has a share of 150 thousand million cubic feet in the surplus water. Moreover, Telangana’s Chief Minister Medium irrigation projects Numbers accomplished an understanding with Maharashtra’s Chief Minister for fulfilling the projects which are estimated to be Completed 34 developed over Pranahita, Godavari & Penganga rivers. Ongoing 9
In addition to these new projects, the state government is also trying to finish the major & medium projects, which are under process in the state. Gross Irrigated Area, Net Irrigated Area (‘000 ha) 2014-15 2015-16 (Kharif) In Telangana, every year around 9,000 tanks are being taken up for their restoration & during 2015-16, the restoration of the Gross Irrigated Area 2,529 1,324 tanks was done with the people’s active participation. Moreover, Net Irrigated Area 1,726 1,313 the phase-II of restoration is expected to be initiated within coming years. Irrigation Intensity 2014-15 1.47 The state government has proposed an amount of US$ 3.82 million for the construction of the above mentioned projects & for 2015-16 (Kharif) 1.01 the fulfilment of Mission Kakatiya during 2016-17.
Source: Irrigation and CAD Department, Government of Telangana
MAY 2017 For updated information, please visit www.ibef.org 16 TELANGANA THE 29th STATE OF INDIA
ECONOMIC SNAPSHOT – IRRIGATION….(2/2)
Major & Minor Irrigation Schemes and Projects being planned by Telangana Schemes and Projects Salient features
• To make available drinking water to Hyderabad from Krishna river
Palamuru-Ranga Reddy Lift Irrigation Scheme • Irrigation of 7 lakh acres in Mahabubnagar, 2.7 lakh acres in Ranga Reddy and 0.3 lakh acres in Nalgonda districts. This can be done by the lifting of 70 thousand million cubic feet of water from the Krishna River.
Nakkalagandi Project • With an aim to irrigate area of 3.41 lakh acres in Nalgonda and Mahabubnagar districts as these districts are affected by fluoride and drought conditions.
Irrigation sector investment - 2015-16 (US$ million) Irrigation sector investment- 2015-16 (US$ million) Projects Investment Projects Investment Major irrigation 946.26 Ground Water Department 0.90 Medium irrigation 37.74 Command area development 6.57 Minor irrigation (PWD) 295.81 Flood control and drainage 59.61 State Irrigation Development Corporation 49.77 Commissioner, CAD-EAP 12.24
Source: Telangana State Portal MAY 2017 For updated information, please visit www.ibef.org 17 TELANGANA THE 29th STATE OF INDIA
BUDGET 2016-17
In 2016-17, the overall planned and non-planned allocation amounted to US$ 19.92 billion for various sectors of Telangana. The allocation of funds was about 3.80% higher in comparison with the 2015-16 budget.
Annual Budget (Estimates in US$ million) Sector 2016-17
Agriculture and allied services 1,032.54
Rural development 1,639.32 Irrigation 3,819.13 Roads & Buildings 578.98 Industries 147.72
Education 1,640.39
Information Technology & Communication 38.80
YA,T&C Department 35.44
Health 911.55
In the state budget for 2016-17, planned allocation amounted to US$ 10.33 billion while non-planned allocation amounted to US$ 9.59 billion.
Source: Telangana State Portal, Department of Finance
MAY 2017 For updated information, please visit www.ibef.org 18 TELANGANA THE 29th STATE OF INDIA
PHYSICAL INFRASTRUCTURE – ROADS
Telangana is surrounded by Andhra Pradesh from the south and east end, Maharashtra and Karnataka from the west, and Odisha and Chhattisgarh from the north end. As of June 2015, state was home to 16 national highways with total length of 2,592 km. The overall road length for Telangana state was around 27,240.84 km as of 2015-16. Of the total road length in the state, 17,076 km of roads are of single lane, 772 km are of intermediate lane, 7,357 km are of double lane and the remaining are of 4-lane and above. In order to fulfil the purpose of laying double lane and four lane roads from Mandal headquarters to district headquarters and for linking every headquarter to Hyderabad, the department of R&D commenced construction of 2,570 km long new roads in a phased Source: Maps of India manner during 2015-16. Moreover, the state government has also undertaken various steps for renovation and repairing of about 4,000 Road type Road length (km) km roads in the state. Further, for the upliftment of roads and bridges, the Government of Telangana has proposed National highways 2,635.84 an amount of US$ 509.16 million. State highways 3,512 In December 2016, the central government approved five road projects worth US$ 1.18 billion. Major district roads 12,079 In April 2017, the Ministry of Road Transport and Highways has approved the project for the development of 14 roads Other district roads 9,014 with a total length of 570 Km for a cost of US$537.50 millon. Total 27,240.84 Source: Roads & Buildings Department, Government of Telangana, Budget 2016-17
MAY 2017 For updated information, please visit www.ibef.org 19 TELANGANA THE 29th STATE OF INDIA
PHYSICAL INFRASTRUCTURE –RAILWAYS
Telangana is well-connected to other parts of the country through the rail network. During 2014-15, the state had a railway network of 1,753 km having 228 railway stations. As per the state annual plan, the Government is planning to build rapid rail connectivity in the state. The rapid rail line will connect the capital of Telangana to the new capital of Andhra Pradesh. For construction of new railway lines in the state, the government proposed an investment of US$ 7.08 million in 2015-16. The metro rail project of the state is expected to be completed by July 2017, and as per the budget 2016-17, completion of this metro rail and other strategic plans in the state would help in minimizing traffic congestion across the state. Hyderabad Metro Rail project is being implemented through public private partnership (PPP) mode. Investment of US$ 2.1 billion has been approved by private partners and as of August 2015, combined viability gap funding (VGF) worth US$ 0.24 billion was approved by the central and state Source: Maps of India governments for the state. The two stretches of Hyderabad Metro Rail Ltd i.e. Miyapur- SR Nagar (11 km in corridor-I) and Nagole-Begumpet (16 Source: Telangana State Statistical Yearbook 2015, km in corridor-III) sections are expected to get completed by News articles the end of 2017.
MAY 2017 For updated information, please visit www.ibef.org 20 TELANGANA THE 29th STATE OF INDIA
PHYSICAL INFRASTRUCTURE –AIRPORTS…(1/2)
Telangana has one operating airport, Rajiv Gandhi International Airport (RGIA), Shamshabad owned and operated by International Airport Limited.
Rajiv Gandhi Hyderabad International Airport Limited (RGHIAL) is a joint venture. The airport is sponsored by GMR Group, Malaysia Airports Holding Berhad (MAHB), State Government and the Airports Authority of India with shares of 63%,11%,13% and 13% respectively.
The airport has two prime access points, one is the National Highway NH-7 and another one is Outer Ring Road (ORR) (western side) and Srisailam State Highway (eastern side).
Warangal Airport is a non-operational airport built over an area of 748.02 acres. In order to improve the civil aviation sector, the state government proposed an investment of US$ 3.30 million in 2015-16. The Government of Telangana sanctioned an amount of US$ 0.95 million to the Telangana Aviation Corporation.
An amount of US$ 138.52 thousand and US$ 1.65 thousand has been approved by the Government of Telangana for the development of Hyderabad airport and Source: Telangana State Statistical Yearbook 2015, regional airport, respectively. For the development of State Budget 2016-17 Warangal airport, the government proposed an investment of US$ 165.89 thousand during 2015-16.
MAY 2017 For updated information, please visit www.ibef.org 21 TELANGANA THE 29th STATE OF INDIA
PHYSICAL INFRASTRUCTURE –AIRPORTS…(2/2)
Hyderabad aircraft movement (nos.) Hyderabad passenger traffic (million)
12.38 105772 99,013 94,057 10.40 90,151 87,741 80,016 82,658 8.44 8.30 8.65 7.60 6.51
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Source: Airport Authority of India
During 2015-16, Hyderabad airport handled 110,033 tonnes of freight. In March 2016, the volume of freight handled at the airport stood at 9,876 tonnes.
MAY 2017 For updated information, please visit www.ibef.org 22 TELANGANA THE 29th STATE OF INDIA
PHYSICAL INFRASTRUCTURE – POWER
TSERC is the prime authority for power generation in Telangana. Per capita power consumption by district Telangana Power Generation Corporation Limited (TSGENCO) and (all categories) (KWh) Transmission Corporation of Telangana Limited (TSTRANCO) are the generation and transmission entities of the state. Medak 1,439 Nalgonda 1,342 As of March 2017, the total installed power capacity of Telangana Hyderabad 1,307 state was 11,501.28 MW. Out of this, 6,389.10 MW was contributed Ranga Reddy 1,209 by state utilities, 3085.33 MW by private utilities and 2,026.85 MW Mahaboobnagar 929 by central utilities. Thermal power was the largest contributor in the Karimnagar 716 state’s total installed capacity with 7,500.07 MW, followed by Warangal 682 hydropower with a contribution of 2,306.60 MW, renewable energy Nizamabad 749 with 1,545.88 MW and nuclear power with 148.73 MW. The Khammam 554 Government of Telangana is planning to increase the installed power capacity of the state to 23,912 MW by 2019. Adilabad 503 0 500 1000 1500 2000 The state holds two power distribution companies which are BHEL (Bharat Heavy Electricals Ltd) started the first unit Southern Power Distribution Company of Telangana State Limited of 4x30MW Pulichintala hydroelectric project in (TSSPDCL) and Northern Power Distribution Company of Telangana, on December 2, 2016. Telangana Limited (TSNPDCL). In April 2017, ReNew Power, an Indian renewable Various new power projects have been taken up in the state during independent power producer, commissioned the 2015-16, which include Pulichintala, Bhadadri Thermal Power construction of the largest PV plant in Telangana with a Station, Lower Jurala, Yadadri Thermal Power Station as well as capacity of 143MW Kothagudem Thermal Power Station. These projects have a capacity of 6,160 MW, collectively. Further, in order to set up In May 2017, Bharat Heavy Electricals (BHEL) bagged a thermal power plants of 6,000 MW capacity across the state, the project worth US$ 34.65 million for a steam and power generation package from Ramagundam Fertilizers and state government signed a MoU with Bharat Heavy Electricals, Ltd. Chemicals Ltd (RFCL). during 2015-16.
Source: Central Electricity Authority, State Budget 2016-17, State Portal MAY 2017 For updated information, please visit www.ibef.org 23 TELANGANA THE 29th STATE OF INDIA
KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS…(1/2)
Project cost Project name Sector Type of PPP Stage (US$ million) Railway track, Hyderabad Multi-Modal Suburban Build-Own-Operate-Transfer Under tunnel, viaducts, 58.7 Transportation Project - Phase II (BOOT) Construction bridges Roadways between Hyderabad - Bangalore Under Roads and bridges Build-Operate-Transfer (BOT) 103.9 Section Construction Build-Operate-Transfer (BOT) Road Upgradation (Kadtal-Armur NH-7) Project Roads and bridges 42.0 Operational Annuity Road Upgradation (Islam Nagar-Kadtal NH-7) Build-Operate-Transfer (BOT) Roads and bridges 79.2 Operational Project Annuity Road Upgradation (Armur-Adloor Yellareddy) Roads and bridges Build-Operate-Transfer (BOT) 58.3 Operational Project Municipal Solid Waste to Energy in Hyderabad Solid waste Build-Own-Operate-Transfer 13.0 Operational (Hyderabad, Gadamaguda, R.R.District) management (BOOT) Solid waste Build-Own-Operate-Transfer Municipal Solid Waste to Energy in Hyderabad 5.2 Operational management (BOOT) Integrated Solid Waste Management (3800 TPD) Solid waste Design-Build-Finance-Operate- Under 137.0 for Hyderabad management Transfer (DBFOT) Construction Hyderabad-Yadgiri Four-Lane NH-202 Road Design-Build-Finance-Operate- Roads and bridges 68.4 Operational Project Transfer (DBFOT) Build-Own-Operate-Transfer Hyderabad International Airport Airports 378.6 Operational (BOOT)
Source: Ministry of Commerce & Industry, Department of Commerce NA – Not Available
MAY 2017 For updated information, please visit www.ibef.org 24 TELANGANA THE 29th STATE OF INDIA
KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS…(2/2)
Project cost Project name Sector Type of PPP Stage (US$ million) Under Three Star Hotel at Madhapur, Hyderabad Tourism Build-Operate-Transfer (BOT) 0.8 Construction Under Multiplex & Shopping Mall at Secunderabad Tourism Build-Operate-Transfer (BOT) 4.1 Construction Common infrastructure for HITEC City Cyberabad Hyderabad Not Available 68.7 Operational industrial parks, SEZ Under Golf Course At Naya Quilla Hyderabad Tourism Build-Operate-Transfer (BOT) 1.9 Construction Food Courts Project at Lower Tankbund Road Under Tourism Build-Operate-Transfer (BOT) 1.1 Hyderabad Construction
Source: Ministry of Commerce & Industry, Department of Commerce
MAY 2017 For updated information, please visit www.ibef.org 25 TELANGANA THE 29th STATE OF INDIA
DEVELOPMENT PROJECTS: SEZs…(1/2)
For the supervision & execution of SEZs in the state, Telangana State Industrial Infrastructure Corporation is Sector-wise operational SEZs in Telangana (2015-16) the concerned authority. IT/ITES During 2015-16, a SEZ has been developed in Madikonda 1 1 village of Warangal district. IT/ITeS, formulation, biotech & 1 Biotech aerospace are the major sectors where SEZs are 1 operating. 1 Gems & Jewellery 1 In February 2016, Cognizant Technologies Services Pvt Aviation Sector Ltd sought government approval to set up a special economic zone (SEZ) in Telangana. Cognizant has Semiconductors proposed to set up an IT/ITeS SEZ in Ranga Reddy 20 Aerospace Engineering district of Telangana, over an area of 2.51 hectares. Industries Pharmaceuticals As of July 2016, Telangana had 123 SEZs; of which, 26 are operational, 44 are notified & 53 are formally approved.
As of 10th May, 2016, the total utilised area of notified Source: Ministry of Commerce & Industry, Government of India SEZs in Telangana stood at 1,957.22 hectares.
MAY 2017 For updated information, please visit www.ibef.org 26 TELANGANA THE 29th STATE OF INDIA
DEVELOPMENT PROJECTS: SEZs…(2/2)
Sector-wise Operational SEZs in Telangana Sector-wise Operational SEZs in Telangana No of Industry Name of SEZs SEZs Industry Name of SEZs No of SEZs • DivyaSree NSL Infrastructure Private Limited, RR Dist.\ Biotechnology APIIC Ltd 1 • DLF Commercial Developers Ltd Gachibowli, Hyderabad Gems SEZ Gems & jewellery 1 • APIIC Ltd – Nanakramguda Ltd, RR Dist • Wipro Limited, Gopannapally • Sundew Properties, Madhapur M/s GMR Hyderabad • Stargaze Properties Pvt Ltd, RR Dist, Aviation Aviation SEZ Limited, 1 • Serene Properties, Ghatkesar Hyderabad • JT Holdings Pvt Ltd, RR Dist. FAB City SPV (India) Pvt • Divyasree NSL, Raidurga Semiconductors 1 Ltd, RR Dist • Infosys Limited, Pocharam IT/ITeS • Tech Mahindra Limited (Satyam Computers), 20 M/s. APIIC Ltd., Adibatla, Madhapur, Aerospace engineering Ibrahim patnam, R .R. 1 • Tech Mahindra Limited (Satyam Computers), Dist, Bahadurpally APIIC Pharma SEZ - • Maytas Enterprises SEZ Pvt Ltd, Gopannpally Pharmaceuticals 1 • Indu Techzone Pvt Ltd, Mamidipally Jedcherla • Lanco Hills Technology, Manikonda • Wipro Limited, Manikonda • L&T Phoenix Infoparks, RR Dist • Navayuga Legala Estates Pvt Ltd, Serilingampally • Tata Consultancy Services Limited , RR Dist. • Hill County SEZ Private Limited , Bachupally Source: Ministry of Commerce & Industry, Government of India MAY 2017 For updated information, please visit www.ibef.org 27 TELANGANA THE 29th STATE OF INDIA
PHYSICAL INFRASTRUCTURE – TELECOM
According to the Telecom Regulatory Authority of India (TRAI), undivided Andhra Pradesh had nearly 84.23 Telecom infrastructure (As of February 2017) million wireless subscribers and 1.62 million wireline subscribers as of February 2017.
Wireless subscribers 84,239,144 As of December 2015, there were 5,780 post offices in the state. Wire-line subscribers 1,626,397 Airtel launched 4G services in the states with special Tele-density (in%) 96.44 focus on Hyderabad. Other players such as BSNL & Aircel are also entering in the 4G business of the state
In November 2016, Telangana State Road Transport Corporation, in conjugation with Airtel, announced Wi- Performance Status of NOFN Project Fi services for passengers of metro luxury buses. (As of April 2016) In December 2016, telecom company ‘Idea’ No. of GPs in Phase-I 2,097 announced investment of US$ 14.7 million for developing 4G infrastructure in Telangana. Pipe laid (km) 4,038 In order to provide broadband services to consumers Cabe Laid (km) 3,431 in the state, Bharat Sanchar Nigam Ltd. (BSNL) is tying up with local cable operators. As of May 2017, the company already tied up with operators in GPs for which cable laid 1,552 Warangal and Karimnagar.
No. of GPs lit 106 Source: Telecom Regulatory Authority of India, Ministry of Communications & Information Technology Telangana Statistical Yearbook - 2015
MAY 2017 For updated information, please visit www.ibef.org 28 TELANGANA THE 29th STATE OF INDIA
SOCIAL INFRASTRUCTURE – EDUCATION … (1/3)
Telangana’s share in educational institutions includes: As per budget 2016-17, the state government has 3 central universities located in Hyderabad: proposed an amount of US$ 258.78 million under plan University of Hyderabad, English & Foreign & US$ 1.38 billion under the non-plan. Languages University & Maulana Azad National Urdu University. Literacy rates (%)
Technological institutes such as IIT, IIIT & NIT. Literacy rate 66.5 Male literacy 74.9 Nalsar Law University, Indian School of Female literacy 57.9 Business as well as private institutes such as Symbiosis & TISS are located in the locality of Hyderabad. Enrolment of students in Schools (2015-16) The Telangana Government has announced fee compensations for students who belong to native & low Classes Total income backgrounds. During 2015-16, the spend on the Pre Primary 94,892 fee reimbursement was US$ 125.5 million. In 2015-16, the 3 newly established universities Sri. P.V. (I-V) 3,246,785 Narasimha Rao Telangana State Veterinary University, (VI-VIII) 1,758,189 Sri. Konda Laxman Horticulture University & Prof. Jayashankar Agricultural University have been allocated (IX-X) 1,058,284 with an investment budget of US$ 43.5 million. (XI-XII) 33,721 As of March 2017, to create awareness & encourage the students, the state government has decided to give USD2974.86 as incentive to each of those students who Source: Central Statistics Office, Budget 2016-17, Telangana have secured admission in the National Defence Finance Department, News Articles, Academy & have successfully completed their training. IIT: Indian Institute of Technology, IIIT: International Institute of Information Technology, NIT: National Institute of Technology, MAY 2017 For updated information, please visit www.ibef.org 29 TELANGANA THE 29th STATE OF INDIA
SOCIAL INFRASTRUCTURE – EDUCATION … (2/3)
As per budget 2016-17, the state government set up a total of 70 new English medium residential schools in the state, at an estimated cost of US$ 53.46 million, for minorities, which are expected to be active by 2016-17. For medical education, training & research department, the budget allocation during 2016-17 is expected to be US$ 32.18 million. T-Hub, a start-up incubator launched by the Telangana Government in March 2017, entered into an agreement with Anthill, a Hyderabad-based speed scaling platform for early-growth stage start-ups, to launch an international start-up initiative, the Smart Women Angels Network (SWAN). In May 2017, the state government announced its plan to hire 11,428 Vidya volunteers and 8,792 teachers in the academic year of 2017-18, with an aim to fill the vacant seats for teachers in various schools and universities across the state.
Budget Allocation for Education Sector in 2015-16 – US$ million Elementary education 763.35 Secondary education 707.95 Universal and higher education 255.23 Adult education 8.37 Language development 0.69 Technical education 69.14 General 12.09 Total 1,816.81
Source: State Budget 2016-17
MAY 2017 For updated information, please visit www.ibef.org 30 TELANGANA THE 29th STATE OF INDIA
SOCIAL INFRASTRUCTURE – EDUCATION … (3/3)
Proposed medical colleges in Telangana with investment (US$ million)
Construction of medical college and hospital at Nizamabad 15.26 Construction of new nursing college at Adilabad 0.11 Construction of new nursing college at Warangal 0.10 Construction of medical college and chest hospital, Hyderabad 0.06 Construction of nursing college and hostel at Gandhi Hospital Premises, Secunderabad 0.33 Construction of nursing college, Hyderabad 1.38 RIMS medical colleges 1.95
Source: Telangana State Statistical Abstract
MAY 2017 For updated information, please visit www.ibef.org 31 TELANGANA THE 29th STATE OF INDIA
SOCIAL INFRASTRUCTURE – HEALTH … (1/2) Out of the country’s pharma production, Telangana accounted for one-third share; the state government plans to enhance it Health infrastructure (as of November, 2015) further by promoting a pharma city. Some of the initiatives by the state government to promote the Primary health centres 675 healthcare sector are as follows: Sub centres 4,863 To double the budget allocation for the healthcare sector from the present 2% & increase public health delivery Community health centres 114 services. Area hospitals 42 Supporting private players who are willing to invest in the District hospitals 8 healthcare sector. The government announced investment of US$ 16.58 billion for establishment of super speciality hospitals in Budget allocation for health & family welfare in the state, till 2019. The upcoming hospitals would be 2016-17 – US$ million based on the same pattern as Nizam's Institute of Urban Health Services 495.88 Medical Sciences (NIMS) of Hyderabad. During 2015-16, Human Development Index of the state Rural Health Services 414.67 was recorded to be 0.81. Further, as per budget 2016- Total 910.55 17, the main areas of focus in the state are standardization, consolidation & stabilisation of services related to medical & health. For 2016-17, the state government has also proposed to establish 40 diagnostics and 40 dialysis centres in In January 2017, Telangana tied up with Cerestra the state. Further, the transmission of Community Advisors to set up country’s 1st Life Sciences Infra Fund, health centres to Vaidya Vidhana Parishad of with a corpus of USD148.74 million. Telangana is also expected to be accomplished during The state government in February 2017, launched an 2016-17. initiative “RICH – Research & Innovation Circle” with an initial investment USD7.43 million to make research establishments such as CCMB, IICT, LV Prasad Eye Source: Department of Health, Medical & Family Welfare & National Institute and ICRISAT. Health Mission, Government of Telangana Telangana Budget 2016-17 MAY 2017 For updated information, please visit www.ibef.org 32 TELANGANA THE 29th STATE OF INDIA
SOCIAL INFRASTRUCTURE – HEALTH … (2/2)
The state government proposed an endowment of US$ 91.65 million for purchase or replacement of equipment, US$ 48.27 million for implementing repair of civil works, purchase of diagnostic equipment, etc. and US$ 24.37 million for buying drugs, disposals and surgical, as per budget 2016-17. Further, an amount of US$ 8.55 million is also projected to be delivered to Medical and Health Department heads for fulfilling the growing needs of the healthcare during 2016-17. In March 2017, Telangana was the best performing state pan India, since the implementation of Mission Indra Dhanush. The mission aims at immunizing infants below two years of age and pregnant women.
Distribution of district hospitals, area hospitals Primary hospitals in Telangana, by district & CHCs in Telangana
Hyderabad 85 Mahbubnagar 84 Warangal 75 Adilabad 72 Nalgonda 72 Karimnagar 71 Medak 67 Khammam 57 Ranga Reddy 52 Nizamabad 40 0 20 40 60 80 100
Source: Department of Health, Medical & Family Welfare & National Health Mission, Government of Telangana CHC: Community Health Centres MAY 2017 For updated information, please visit www.ibef.org 33 TELANGANA THE 29th STATE OF INDIA
INDUSTRIAL INFRASTRUCTURE….(1/2) The industrial sector accounted for around 24% share in overall GVA of the state during 2015-16. In the state budget 2016-17, the Government of Telangana proposed Distribution of industrial parks in Telangana an investment of US$ 147.72 million for endorsement of various industries in the state.
The Telangana Government plans to encourage an industrial corridor. This industrial corridor would be in between Hyderabad & Warangal. After this industrial corridor, the employment opportunities are also expected to grow. The Telangana state plans to invest in power plants in a large way to back up its industrial infrastructure. With the launch of the Industrial policy in the state, all clearance certificates are being easily issued to around 1,609 units in the state involving an investment of US$ 5.06 billion. CETPs at Jeedimetla and Patancheru and TSDF at Dundigal These clearances have generated an employment under Jeedimetla Zone are established by the Government. potential of 120 thousand during 2015-16 in the state. TSIIC has recognised 150 industrial parks in 10 districts having Across 100 approvals from 1,609 units are associated land of about 74,133.18 acres with 13,165 units (enterprises). with the medium & large industrial units and have Under TSIIC, for the execution and monitoring of Infrastructure generated the employment potential of around 34 projects in the state, the government sanctioned an investment of thousand with an investment of US$ 1.29 billion. US$ 1.65 million.
Further, for establishing three Aerospace parks in the Source: Telangana State Statistical Year Book, 2015 state, the state government has been depicting various CETP- Common Effluent Treatment Plants proposals out of which the construction work of NIMZ TSDF- Treatment Storage Disposal Facility phase-I is projected to be accomplished during 2016-17. TSIIC-Telangana State Industrial Infrastructure Corporation
MAY 2017 For updated information, please visit www.ibef.org 34 TELANGANA THE 29th STATE OF INDIA
INDUSTRIAL INFRASTRUCTURE….(2/2)
Industrial Parks in Telangana
Industrial park No of plots No of sheds Vacant area (sq. m) Proposed industries name Automotive based industries, general engineering, steel re Jeedimetla 250 0 1,222,765 rolling, R&D of biotech, pharmaceuticals, vaccines Karimnagar 2 0 2,136 General Patancheru 68 15 345,963 Textile, cargo, edible oils Shamshabad 376 11 2,098,571 Aerospace, solar equipment, electronic hardware Warangal 57 1 101,874 IT & ITeS, general
Prime Minister's Employment Generation Programme (PMEGP) schemes in Telangana
Margin money Estimated employment Margin money Number of Year subsidy utilised – US$ generated subsidy released – US$ million projects assisted million (no. of persons)
2014-15 3.17 3.13 604 6,604
2015-16(1) 2.64 0.29 44 606
Source Telangana State Industrial Infrastructure Corporation (TSIIC) Ministry of Micro, Small and Medium Enterprises (1) As of July, 2015
MAY 2017 For updated information, please visit www.ibef.org 35 TELANGANA THE 29th STATE OF INDIA
AMRUT & SMART CITIES…(1/2)
As of June 2015, 5 cities of Telangana namely Hyderabad, Karimnagar, Nalgonda, Nizamabad & Warangal were announced to be developed as a smart cities. Out of those 5 cities, Greater Hyderabad & Greater Warangal were shortlisted in the list of 98 smart cities to be developed in India. In 2015, along with the smart cities, 15 cities of the Telangana state are selected for infrastructure development under the scheme Atal Mission for Rejuvenation and Urban Transformation (Amrut). The central government has approved a budget of US$ 8.3 billion for the first phase of the Amrut project. US$ 1.05 million was allocated to the state of Telangana for administrative & office expenses (A&OE) in order to prepare the Service Level Improvement Plan (SLIP)/Capacity Building (CB). In July, 2015, the Ministry of Urban Development of Government of India released US$ 0.46 million as advance for the 11 cities under Atal Mission for Rejuvenation & Urban Transformation (AMRUT) guidelines. In March 2017, as an initiative to make the city slum free, the state government announced its plans to hasten the 2 bedroom permanent housing projects on 600 acres of land situated on the outskirts & to Source: TechSci Research complete skyways in municipal areas.
MAY 2017 For updated information, please visit www.ibef.org 36 TELANGANA THE 29th STATE OF INDIA
AMRUT AND SMART CITIES…(2/2)
Smart cities in Telangana
Cities Population
Greater Hyderabad 6,731,790 Greater Warangal 819,406
Cities/towns in Telangana covered under AMRUT S. No. City/town 1. Khammam Greater Warangal 2. GHMC 3. Warangal 4. Nizamabad Greater Hyderabad 5. Karimnagar 6. Ramagundam 7. Mahbubnagar 8. Nalgonda 9. Adilabad 10. Suryapet 11. Miryalaguda Source: TechSci Research
MAY 2017 For updated information, please visit www.ibef.org 37 TELANGANA THE 29th STATE OF INDIA
KEY INDUSTRIES
The Information Technology (IT) and pharmaceuticals manufacturing sectors are catalysing the growth of Telangana’s Key industries in Telangana economy. Hyderabad is a major exporter of IT and ITeS products. Micro, small and medium enterprises are also • Information technology strengthening the economic growth of the state. During 2015- • Pharmaceuticals manufacturing 2016, 3,779 MSME units were established in the state with a • Tourism cumulative investment of US$ 242.32 million. • Textile • Mines and minerals The state government is in discussions with Steel Authority of India (SAIL) for establishing a steel factory comprising a deal of Source: Socio Economic Outlook 2015, Government of Telangana value US$ 5 billion on the Khammam-Warangal border. The MSME- Micro, Small and Medium Enterprises state government plans to improve cotton rich Warangal, the second major city after Hyderabad, in all aspects particularly by As per state budget 2016-17, the work on construction establishing textile parks analogous to those in Tirupur in Tamil of the textile hub & a new pharma city in Warangal is Nadu. The state aims to setting up of industry across under process. Moreover, Government of India has Telangana rather than limiting it to any specific city. also provided the state government with final approval Incorporation and implementation of Telangana State Industrial for establishing a food park across the district of Project Approval & Self Certification Systems is expected to Khammam in coming years. In addition, the state increase the investments in the state coming years. government has also proposed to establish 3 Aerospace parks in the state during 2016-17. Incentives for micro & small enterprises from the Government of Telangana: 100% reimbursement of stamp and transfer duty on the purchase of land for industrial use 100% reimbursement of Stamp duty for lease of land/shed/ buildings and also mortgages and hypothecations 25% rebate in land cost limited to US$ 16.58 thousand in industrial estates/ industrial parks
MAY 2017 For updated information, please visit www.ibef.org 38 TELANGANA THE 29th STATE OF INDIA
KEY INDUSTRIES – INFORMATION TECHNOLOGY … (1/2) Information technology is one of the fastest growing sectors in Telangana, contributing around 21% share in the total IT & ITeS exports from Telangana (US$ million) GSDP of the state. The central government has declared the realisation of an Information Technology Investment Region 2015-16 (ITIR) near Hyderabad. With the establishment of the ITIR, Exports 10.42 the Government plans to generate 1.5 million direct and 5.3 million indirect jobs in the IT sector in the next five years. IT Units 1,300 Telangana was the first state in India to initiate e- governance projects in India. Source: Telangana Economic Survey 2015- 16, The growth in the total exports of IT and ITeS products in IT/ITeS: Information Technology/Information Telangana is higher than India’s IT and ITeS exports by Technology enabled Services Sector, 2.7%. Hyderabad accounts for a majority of the share in the Under the Department of Information Technology, exports of IT products in the state. During 2015-16, exports of Electronics & Communications, the Government of IT products of Telangana stood at US$ 10.42 billion. Telangana has introduced Telangana IT Policy, 2016 in April 2016 for the uplifting the performance of the sector in As of May 2016, out of the 348 approved IT SEZs in India, 40 the state. are situated in Telangana. Datawind is going to set up a manufacturing facility in Leading IT companies like Facebook, Google, IBM and Hyderabad, with a investment of US$ 15.27 million. In the Microsoft hold significant presence in Hyderabad. first year of inception, the facility has a target of producing Continuous growth of these companies in conjunction with 20 lakh tablets and phones. expansion plans is expected to generate 40,000 direct jobs along with indirect employment of several thousands. The state government has set a target of connecting its 23 million residents via internet, by 2018. State government signed an MoU to explore cloud, machine learning with Microsoft Corporation, India, to improve healthcare and agriculture sectors in the state of Telangana.
MAY 2017 For updated information, please visit www.ibef.org 39 TELANGANA THE 29th STATE OF INDIA
KEY INDUSTRIES – INFORMATION TECHNOLOGY … (2/2)
Google • Google’s Hyderabad office played a essential role in the growth of the firm’s main products like Gmail, Chrome, Calendar and Docs. The engineers at Hyderabad make specially Google products for native markets and handling structures for agencies in India and other Asia Pacific markets. In 2015, Google announced plans to establish its largest campus in Hyderabad with an investment of US$ 166 million.
Microsoft • In July 2014, Microsoft declared its strategies to develop processes in Hyderabad. The state government has guaranteed land and other facilities essential for the development of project. • Microsoft’s CEO Satya Nadella visited Hyderabad in September 2014, and there are probabilities of discussions with the state government concerning growth of the IT industry in Hyderabad.
Amazon • In 2015, the company announced that it will establish its largest fulfilment centre in Telangana. Amazon aims to intensify its employee base by more than three fold from the existing 4,000 to 13,500 in phases.
• Facebook is a US-based online public networking provision company with set-ups in India. • The agency in Hyderabad was the 1st organisation for the company in Asia. Facebook India has Facebook designed a programme to strengthen Digital India and Skills India initiatives of the Government of India. The program named Small Business Boost was inaugurated by Telangana’s IT Minister K T Rama Rao in Hyderabad in August 2015. Facebook’s Small Business Boost initiative will serve as an incredible resource for the growth of these businesses by offer training on best practices for growing a small business online. The programme will also aim at encouraging and training the business owners to access international markets by branding on Facebook platform.
MAY 2017 For updated information, please visit www.ibef.org 40 TELANGANA THE 29th STATE OF INDIA
KEY INDUSTRIES – PHARMACEUTICALS … (1/2)
Hyderabad accounts for about 20% share in the total export of pharma products from India. This is making Hyderabad as a centre for the drug production. Funds for support for drugs & supplies under Mission Flexible Pool – 2014-15 Telangana backs nearly one-third of complete pharma manufacture in the (US$ million) country. The state government declared establishing a Pharma City to enhance the Approved Released pharmaceutical business in Telangana. 7.94 1.31 As of 2014-15, Telangana had about 429 and 185 pharma companies and bulk drug units, respectively. Companies like Dr Reddy’s and Aurobindo are continuously expanding and have already lined up vast investments for the same. Total R&D by pharmaceutical enterprises has grown by additional 20.6% in 2014-15, indicating the potential in Telangana. As per the socio-economic survey 2015-16, at a projected cost of US$ 2.0 billion, the Hyderabad Pharma City is being established, which will consist of R&D Lab, university, etc. The park is proposed to be established on 11,000 acres of land at Mucherla and is expected to create employment opportunities for 70,000 people.
Source: Ministry Of Health And Family Welfare, Government of India ,State Portal & News articles
MAY 2017 For updated information, please visit www.ibef.org 41 TELANGANA THE 29th STATE OF INDIA
KEY INDUSTRIES – PHARMACEUTICALS … (2/2)
Dr Reddy’s • Dr Reddy’s initiated its business processes as an Active Pharmaceutical Ingredients (API) producer in 1984 and added formulations procedures in 1987. • The enterprise entered in to international markets in 1991. In 2013-14, the company works with 50 R&D associates through out the world, having three major clusters in the US, Western Europe and India. In 2014-15, the company generated revenues of US$ 1,660.73 million. From April-September 2015, the company recorded revenues of US$ 899.53 million.
Aurobindo Pharma • Aurobindo Pharma was established in 1986 and turn into a public listed company in 1995. • The corporation trades its drugs to 125 countries and derives more than 70% of its total returns from global operations. The company has a group of about 650 scientists who carry out the operations in research and product development. • During the third quarter of 2015-16, ending in December 2015, the company recorded total revenue of US$ 361.26 million. Divi's Laboratories • Divis Laboratories, started in 1990, produces APIs & intermediates. • The company has 500 acres of 13 multi-purpose manufacture units in Hyderabad and a plant in Seemandhra. • At the end of third quarter of 2015-16, the total revenues recorded by the company were US$ 130.29 million.
Granules India Ltd • Granules India is an Indian pharmaceutical company with manufacturing facilities dispersed across India and China. • The company assists clienteles across 60 countries with four facilities in India, which include Hyderabad, and a facility in Jingmen, China. In 2013, it acquired Auctus Pharma for expansion of business. In 2015-16, the company generated revenues of US$ 218.63 million.
MAY 2017 For updated information, please visit www.ibef.org 42 TELANGANA THE 29th STATE OF INDIA
KEY INDUSTRIES – TOURISM….(1/3)
Dynasties such as Sathavahanas, Kakatiyas, Chalukyas, Qutubshahis, Mughals & Asafjahis have ruled the state of Telangana. Hyderabad, the capital of Telangana, is highly popular Number of tourist arrivals (Millions) for Charminar, Golconda Fort, pearls & biryani. The Kakatiya track with Warangal & Karimnagar are recognised as highly popular 1 2016 71.6 tourist places. Jinnaram near Kawal Tiger Sanctuary & the lake resorts at Kadem (Adilabad) & Alisagar Lake (Nizamabad) are places which are 2015 94.6 extremely popular. Amongst the new tourist spots, the state has established jungle resorts on the border of Telangana- Maharashtra. In order to encourage tourism, the state government 2014 72.5 has planned listing of a new public limited company, Telangana State Tourism Development Corporation Ltd. (TSTDC), under the 2013 54.2 Companies Act 2013. The Government of Telangana has set up Yadagirigutta Development Authority (YDA) for maintaining the historic Hindu & 2012 91.7 Jain monuments at Yadagirigutta & nearby regions. As per budget 2016-17, for renovation & renewal of historic temples in the state, the state government proposed an outlay of US$ 7.63 million as a 2011 49.7 one time grant during 2016-17. Moreover, the state government allocated an amount of US$ 35.44 million for the development of tourism & culture department during 2010 51.8 2016-17. The state's archaeology department in March 2017, discovered & 2009 51.2 unearthed the world's largest capstone weighing of 40 tonnes, after excavating an ancient human burial site in Narmeata village in Siddipet district 0 20 40 60 80 100
Source: News Articles, Telangana State Statistical Year Book, 2015 1- Includes Foreign Tourists Arrivals till November 2015 MAY 2017 For updated information, please visit www.ibef.org 43 TELANGANA THE 29th STATE OF INDIA
KEY INDUSTRIES – TOURISM….(2/3)
Key tourist spots Number of domestic tourist arrivals in Telangana (million)
Monuments 91.4 94.5 • Charminar 72.3 71.5 • Golconda Fort 50.6 50.5 50.4 51.5 49.4 54.0 • Qutb Shahi Tombs 43.0 32.1 • Chowmahalla Palace • Falaknuma Palace • Bhongir Fort • Ramoji Film City 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Religious Tourism • Thousand Pillar Temple Number of foreign tourist arrivals in Telangana (million) • Bhadrachalam Temple 0.75 • Nelakondapalli 0.7 0.72 • Dhulikatta Phanigiri 0.57 • Kolanpaka 0.47 • Mecca Masjid 0.29 Others 0.23 0.22 0.15 • Kuntala waterfall 0.12 0.14 0.07 • Pochera waterfalls • Nirmal Paintings 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1
Source: News Articles, Telangana State Statistical Year Book, 2015 1- Data till November 2015
MAY 2017 For updated information, please visit www.ibef.org 44 TELANGANA THE 29th STATE OF INDIA
KEY INDUSTRIES – TOURISM….(3/3)
Initiatives undertaken by the Government of Telangana: Creation of “Telangana Samskruthika Sarathi”, a distinct state level body to create awareness regarding the cultural heritage of Telangana & provide information about various schemes launched by the Government of Telangana & development of different policies.
Proposal to build a new mega Cinema City to promote the tourism film industry in Telangana. The proposed project is expected to span over 2,000 acres in the Nalgonda-Ranga Reddy border in Rachakonda.
Proposal to develop “Kaloji Kala Kendram” at Warangal and “Telangana Kala Bharati” at Hyderabad, to promote cultural activities in the state.
Allocation of US$ 16.59 million for the development of Yadagirigutta Devasthanam. Further, development of Narasimha Abhyaranyam has been planned in 400 acres of land. Meditation centres, Veda pathshalas, marriage halls, parks and cottages would be constructed in additional 1,600 acres of land.
With the skills & efforts of the local people & Masters Athletics Association of Telangana, the 38th National Masters Meet was conducted successfully at the Gachibowli Stadium, which witnessed participation of 3,700 athletes. With this succession, the Masters Athletics Federation of India (MAFI), can plan on the next level by selecting the team for India to participate in the Asian championship, which will be held in China in September 2017.
Source: News Articles, Telangana State Statistical Year Book, 2015 MAY 2017 For updated information, please visit www.ibef.org 45 TELANGANA THE 29th STATE OF INDIA
KEY INDUSTRIES – MINES AND MINERALS…(1/2)
Granite, coal, lime stone, bauxite and mica are the major mineral resources in Telangana. District Major Minerals
Limestone, Coal, Iron ore, Adilabad, Karimnagar, Khammam and Warangal are the Adilabad largest producers of coal in the state of Telangana. Manganese Lime stone, Coal, Iron ore, laterite Karimnagar The state have high volumes of limestone deposits, which & granite gratify various cement factories in the region. Limestone, Coal, Iron ore, quartz Karimnagar, Khammam and Adilabad, are the prime Khammam & granite, Steatite, districts for mining in the state of Telangana. These districts Dolomite, Barites, Corrundum accounts for 50% share in the mining business of the state. Mahbubnagar Amethyst, Feldspar, laterite, Quart
Karimnagar is considered as strong granite reserve districts Medak Amethyst, laterite, Granite in Telangana. Wide range of granites such as Tan Brown, Maple Red and Coffee Brown granite are available in the Nalgonda Limestone & Limestone Slabs district. Nizambad Quartz, laterite, Granite Telangana holds 426 quarries for colour granite and six Amethyst, laterite, Granite, quarries for black granite. Ranga Reddy Limestone
Khammam is emerging as the new growth engine with Warangal Amethyst, Granite, Coal around 15,000 acres of land being freed by the state government in the district.
Source: Indian Mineral Scenario – States, Ministry of Mines, ASSOCHAM India
MAY 2017 For updated information, please visit www.ibef.org 46 TELANGANA THE 29th STATE OF INDIA
KEY INDUSTRIES – MINES AND MINERALS…(2/2)
Coal industry is one of the prime segments for Telangana minerals & mines sector. Telangana coal deposits account for 20% share in India’s coal deposits. In 2015, a new website for Online Sand Sale Management & Monitoring System has been started & is being developed by Telangana State Mineral Development Corporation. The purpose of this website is to identify illegal mining of natural resources & maintain records of the revenues of the mining sector.
Production of major minerals, 2015-16(1) Production of minor minerals, 2015-16(1)
Minerals Production (tonnes) Minerals Unit Production Barytes 26,077 B.Granite Cubic meter 136,992 Coal 33,116,541 C. Granite Cubic meter 377,365 Dolomite 403,743 Gravel / Earth Cubic meter 17,021,456 Feldspar 361,887 Fuller's earth Tonnes 277,025 Garnet 9 L. stone slabs Meter Square 1,360,770 Latarite 1,780,239 Mosaic chips Tonnes 14,890 Lime Stone 13,166,012 Road metal Cubic meter 20,786,426 Manganese ore 1,400 Ordinary sand Cubic meter 1,618,019 Quartz 310,960 Shale 51,700 Stowing Sand 1,333,991 White clay 62,240 Source: Ministry of Commerce and Industry, Government of India Note: 2015-16(1) : till October 2015 MAY 2017 For updated information, please visit www.ibef.org 47 TELANGANA THE 29th STATE OF INDIA
KEY INDUSTRIES – APPARELS AND TEXTILES…(1/2)
Cotton is grown in almost all districts of the state except Hyderabad & Nizamabad. The state had 10 lakh spindles as of Proposed textile parks in Telangana Location 2014-15. Out of these spindles, about 8 lakh spindles utilise (as of October 2015) cotton & the rest use synthetic & viscose fibres. In 2014-15, Kanumukkala,N under Integrated Textile Park scheme, the state government Pochampally Handloom Park Limited proposed to set up 2 textile parks in Warangal & Sircilla cities. algonda These cities are based in Karimnagar district. Both parks will be Whitegold Integrated Spentex Park Ranga Reddy established similar to the parks present at Tirupur in Tamil Medak Nadu. The Government of Telangana sought authorization from Avantika Textile Park the central government for the conversion of forest area in Telengana Warangal, which is the largest cotton producing district in the state, into a mega textile park. Details of Handloom and Textile Industry (2015-16) As per the budget 2016-17, the work on textile hub in Warangal has initiated & is under process. As of March 2015, a new Handloom Co-operative Societies Number textile policy was introduced in Telangana. Purpose of this policy is to provide special incentives to the textiles sector. In Cotton 259 2015-16, the state produced 27 metric tonnes of raw silk, as of August, 2015. In order to promote the textile sector in the state, Silk Weaver Cooperative Societies (WCSs) 33 the Government of Telangana is working on a new textile policy Wool ICSs 44 to attract investments in the sector. Power loom WCSs 157
Tailor CSSs/ Garments CSs 122
Source: Telangana Economic Survey 2015-16
MAY 2017 For updated information, please visit www.ibef.org 48 TELANGANA THE 29th STATE OF INDIA
KEY INDUSTRIES – APPARELS AND TEXTILES…(2/2)
Financial assistance to the handloom weavers (in US$ million)
0.234
0.128
2014-15 2015-16
Source: Telangana Annual Plan, 2015-16
MAY 2017 For updated information, please visit www.ibef.org 49 TELANGANA THE 29th STATE OF INDIA
KEY APPROVALS REQUIRED
List of approvals and clearances required Department
Incorporation of company Registrar of Companies
Registration, Industrial Entrepreneurs Memorandum, industrial licences
Permission for land use Commerce and Industries Department
Allotment of land
Site environmental approval Telangana Pollution Control Board No-objection Certificate and consent under Water and Pollution Control Act
Registration under States Sales Tax Act and Central and State Excise Act Excise Department Commercial taxes
Sanction of power
Power feasibility Energy and Power Department
Power connection
Approval for construction activity and building plan Public Works Department
Water and sewerage clearance Water Security & Public Health Engineering Water connection Department
MAY 2017 For updated information, please visit www.ibef.org 50 TELANGANA THE 29th STATE OF INDIA
CONTACT LIST
Agency Contact information
6th Floor, Parisrama Bhavan, Fateh Maidan Road, Basheerbagh, Hyderabad – 500 004, Telangana, India Ph: +91-40-23237625, 23237626 Industrial Infrastructure Corporation Fax: +91-40-23240205, 23241385 Website: http://telangana.apiic.in/ email: [email protected]
Vidyutsoudha, Khairatabad, Hyderabad-500 082, Telangana State Power Generation Corporation Telangana, India (TSGENCO) Phone: 040-23499000/39839000 Fax: 040-23499101 email: [email protected]
Telangana Pollution Control Board Payavaran Bhawan, A-III, Industrial Estate, Telangana Pollution Control Board Sanath Nagar, Hyderabad - A.P. Website: http://appcb.ap.nic.in email: [email protected]
MAY 2017 For updated information, please visit www.ibef.org 51 TELANGANA THE 29th STATE OF INDIA
COST OF DOING BUSINESS IN TELANGANA
Parameter Cost estimate
Land price (US$ per sq m) 3.6–254.6
Labour cost (minimum wages per day) US$ 2.9–22.7
Commercial lease rent (US cents per sq ft per month) 5.4–714.3
Commercial: 9.5–19.4 Electricity (US cents per kWh) Industrial: 8.1–11.9
Residential rent (US cents per sq ft per month) 6.7–40.0
Five-star hotel room (US$ per night) 58–330
Industrial: 0.8-3 per 1,000 litres Water cost (US$) Commercial: 0.7-3 per 1000 litres
Source: Telangana State Electricity Regulatory Commission, Ministry of Labour, Telangana State Portal, Property sites, News articles, Travel sites
MAY 2017 For updated information, please visit www.ibef.org 52 TELANGANA THE 29th STATE OF INDIA
STATE ACTS & POLICIES
The Telangana Solar Power Policy 2015
Objectives • To promote regionalised and dispersed generation of solar energy. • Effective energy conservation by the stimulation of connected grid and off-grid solar tenders. • Endorsement of all skills related to solar power generation. • Addition of solar parks Read more
Telangana Full Fee Reimbursement Policy 2015
• To confirm a uniform scholarship for each category of study, as well as vocational Objectives training, which is independent of the fees charged. To guarantee that fees are lower than the subsidy quantities to help students to meet their living expenses. Read more
The New Industrial Policy 2014
• To improve 6 industrial corridors with emphasis on main industrialised sectors, with life sciences, IT Objectives and hardware being the major benefactors. Read more Objectives • To certify viable & comprehensive industrial development.
MAY 2017 For updated information, please visit www.ibef.org 53 TELANGANA THE 29th STATE OF INDIA
STATE ACTS & POLICIES
Telangana IT Policy 2016
• To make Telangana the most favoured destination for the IT companies. • To position the state among the leading global hubs for innovation and technology entrepreneurship Objectives in the country. Read more
Telangana Electronics Policy 2016
• To entice US$ 3 billion funds for the Electronics sector through 2020. Objective • To develop an employment potential of around 160 thousand by 2020. Read more
Telangana Innovation Policy
• To boost the start-ups present across the social & rural enterprises by the provision of additional Objectives incentives to them. • To endorse the innovative ideas through positive industrial engagement. Read more
Upcoming Policies in Telangana Telangana Innovation in Multimedia, Animation, Gaming and Entertainment Objectives Telangana Textile and Apparel Policy (T-TAP) Policy
MAY 2017 For updated information, please visit www.ibef.org 54 TELANGANA THE 29th STATE OF INDIA
Telangana
The capital of Telangana, i.e., Hyderabad is regarded as the IT hub of Telangana on the account of increasing growth in the exports of IT and ITeS products from the state. The tourism sector in the state is also being promoted by the state government through the initiative of Telangana Samskruthika Sarathi, which aims in creating awareness regarding the state’s culture among the tourists.
The major mineral resources being produced in the state include coal, granite, lime stone, mica and bauxite. The limestone deposits in the state are also present at high volume in the state due to which the mines and minerals sector is boosting the economic growth of Telangana across the country.
Source: Telangana Economic Survey 2014-15
MAY 2017 For updated information, please visit www.ibef.org 55 TELANGANA THE 29th STATE OF INDIA
CONFERENCES/SUMMITS FOR 2016-17
Venue of Summit / Summit / Conference Date Conference International Conference on Electrical, Electronics, Computer , Civil and Warangal 14th August, 2016 Mechanical Engineering (ICEECCME-16) International Conference On Applied Science Engineering and Hyderabad 24th September, 2016 Technology(ICSET-16) International Symposium on Current Research in Mechanical, Mechatronics, Warangal 25th September, 2016 Robotics and Civil Engineering (ISMMRCE-16) International Conference Digital Information Processing, Data Mining, and Hyderabad 13th November, 2016 Wireless Communications (ICDIPDMWC-16)
Source: India Conference Alerts MAY 2017 For updated information, please visit www.ibef.org 56 TELANGANA THE 29th STATE OF INDIA
ANNEXURE
Average exchange rates
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
2014-15 60.28
2015-16 65.46
2016-17E 67.23
Source: Reserve Bank of India MAY 2017 For updated information, please visit www.ibef.org 57 TELANGANA THE 29th STATE OF INDIA
DISCLAIMER
India Brand Equity Foundation (IBEF) engaged TechSci to prepare this presentation and the same has been prepared by TechSci in consultation with IBEF.
All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF.
This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of TechSci and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.
TechSci and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.
Neither TechSci nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.
MAY 2017 For updated information, please visit www.ibef.org 58