Andhra Pradesh

India’s foremost Investment Destination - Overview

8th

largest state in

~ $ 82 Bn 974 km/ 13%

SGDP (2014-15) of India’s coastline

Rich natural resource base

Rapidly urbanizing state • 30% of population is urban • Major urban centers in every district envisaged • Greenfield capital city of

4 Andhra Pradesh – India’s gateway to the world

AP’s location is ideal for emerging as global logistics hub of choice

Natural advantages like long Direct shipping calls from South Accelerated industrialization in the coastline and deep drafts enable East Asian economies to AP ports region, agglomeration of cargo ports which can act as linkages vis-à-vis ports on west coast will from distant hinterland and with major markets in the world save transit time of around 2-3 increased connectivity will create days windows of opportunity 5 Andhra Pradesh’s growth drivers

Physical Social Infrastructure Infrastructure

Skill Base

Leadership Industrial Policy Corridors Interventions

Ease of Doing Business

6 Infrastructure will form the backbone of development in AP

Power Land Connectivity

• First state in South • Transparent policy of • Ports – 14 under India to offer 24X7 land allotment operation, 6 under power to industry • Creating a land bank development and 5 • Generating capacity of 1 million acres planned to be developed – 8300 MW • Online Land Bank and • Capacity Addition – allocation • Airports – 6 existing, 17000 MW by 2019 1 mega Aerotropolis • Affordable land rates and 5 no-frills airports • Focus on Green • Scope for developing to be developed Energy Projects industrial parks on • Vast network of road, • Massive PPP/ private basis rail and inland Strengthening of • Fiscal incentives – waterway electricity grid 100% reimbursement connectivity of stamp and transfer duty

7 Andhra Pradesh is a leader in labour reforms to support the large number of skilled human resources in the state

POLICY INTERVENTIONS SKILL AVAILABILITY

First State to Amend Contract Labour Act 18 State Universities

Definition of factory (for applicability of Factories act) 368 Engineering Colleges relaxed - from minimum of 10/20 employees in a facility to 20/40 > 0.16 million students intake

Rules regarding government registration of contract 128 Pharmacy Colleges labour relaxed from minimum 5 to minimum of 50 > 11,700 students intake

Maximum limit of number of workers, where management can initiate lockout/ closure/ ~ 400 Management Schools retrenchment of facility without government > 46,500 students intake permission increased from 100 to 300

Defined “Go-Slow” as illegal activity 78 Government Industrial Training Institutes

11 Andhra Pradesh ranks amongst top 3 Indian states in creating conducive business environment

EASE OF DOING BUSINESS

INVESTMENT APPROVALS IN FACILITATION 21 DAYS OFFICERS

COUNTRY SINGLE DESK DESKS FOR INVESTMENT PORTAL STRATEGIC TRACKER PARTNERS

12 Andhra Pradesh has identified 10 focus sectors, where targeted approach is being followed

AUTOMOBILES AND AUTO AGRO AND FOOD PROCESSING COMPONENTS

PETROLEUM, CHEMICALS AND LIFE SCIENCES PETROCHEMICALS

TEXTILE AND APPAREL ENERGY

ELECTRONICS AND IT LEATHER

MINERAL BASED INDUSTRY AEROSPACE AND DEFENCE

15 Best-in Class Policy environment in Andhra Pradesh

Targets 2020

INDUSTRIAL Investment: Employment: DEVELOPMENT POLICY ` 2 Lakh Crore 10 Lakh (1 Mn.) (US$ 32 Bn) new jobs

Auto & Auto Aerospace & Textile & Apparel Biotechnology Components Defence SECTORAL POLICIES Electronics Food Processing MSME Industrial Parks Manufacturing

Development of Clusters

Skill Development BEST IN CLASS POLICY Tailor-made incentives for Mega Projects INSTRUMENTS Reimbursement of VAT/SGST/Stamp Duty

Capital, Interest and Power Cost subsidies

16 3 large Industrial Corridors and many Industrial hubs across State being developed

VISAKHAPATNAM Airports INDUSTRIAL HUB Bhogapuram (3 Airports, 3 Ports) Ports AMARAVATI – INDUSTRIAL HUB Industrial Corridor (VCIC) (2 Airports, 2 Ports) Chennai-Bengaluru Industrial Corridor (CBIC) Bengaluru – Hyderabad proposed Corridor

Tricity (- 4 Major Ports, 4 Active Airports & NH7 -Chittoor) which acts as a spine to AP (3 Airports, 2 Ports) Excellent Rail & Road Network 32 SEZs, 258 Industrial Parks Focus on upgrading Infrastructure VCIC & CBIC - $1.5 Billion Investment CHENNAI on Infrastructure BENGALURU

17 Node – will leverage its proximity to rapidly developing

District/ State •/ Andhra Pradesh state

Distance from Metropolitan/major city •170 km from city centre of Chennai along NH-5 and access road to Krishnapatnam port •40 km from Nellore city

Accessibility to trunk road and rail network •20 km from NH-5, however no direct access from the national

NH5 Krishnapatnam highway port • Railway access connects Krishnapatnam port to the mainline; however no railway access to the node area so far

Accessibility to major transport facilities (port, airport) •10 km from Krishnapatnam port •90 km from Tirupati airport 50 km Major industrial locations in the surrounding area NH5 •80 km from the proposed SEZ at on NH-5 •130 km from on NH-5 221 Demographic profile •South of Nellore District has a low population density (under 200 people/sq.km), except Nellore capital city - 1,000 people/sq.km. •There are no core cities in the hinterland of the node area 1 Andhra Pradesh’s engagement with Japan

Delegation from Andhra Pradesh (led by Hon’ble CM) visited Japan in November 2014 and July 2015 Met Hon’ble PM of Japan, Hon’ble Chief Cabinet Secretary, METI, MLIT, JBIC, JICA and private companies MoUs with METI, NEDO, Sumitomo Corporation, NEC, Mizuho Bank Potential areas of Collaboration Capital region – Amaravati Urban Development Infrastructure Development (Ports, Irrigation) Manufacturing Energy Systems Agriculture & Food Processing INVESTMENT SEMINAR WITH 50 JAPANESE COMPANIES HELD ON 5TH MARCH 2015

19 Proactive Governance to Promote Japanese Investments

• Promote cultural ties between AP and Japan • Japanese classes in Andhra University and Nagarjuna University • Japanese schools in Visakhapatnam, and

• Dedicated Japanese industrial townships and industrial clusters proposed

• Tax Reforms to boost investment sentiment (GST proposed to be implemented by April 2016) • Closer interaction with Japan • Joint working group with participation from METI, JICA and JETRO • Focused sector teams (Electronics, Food Processing, Marine, Energy, Engineering, Logistics) • Periodic visits of Government of AP to Japan

20 We welcome you to Sunrise Andhra Pradesh