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Andhra Pradesh Andhra Pradesh India’s foremost Investment Destination Andhra Pradesh - Overview 8th largest state in India ~ $ 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 Amaravati 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 manufacturing 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 Hyderabad INDUSTRIAL HUB Bhogapuram (3 Airports, 3 Ports) Ports AMARAVATI Visakhapatnam– Chennai INDUSTRIAL HUB Industrial Corridor (VCIC) (2 Airports, 2 Ports) Chennai-Bengaluru Industrial Corridor (CBIC) Kakinada Bengaluru – Hyderabad proposed Corridor Tricity (Tirupati- ° 4 Major Ports, 4 Active Airports & NH7 Nellore-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 Krishnapatnam Node – will leverage its proximity to rapidly developing Krishnapatnam Port District/ State •Nellore district/ 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 Naidupeta on NH-5 •130 km from Sri City 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, Vijayawada and Guntur • 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.
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