        Proposed industrial • The proposed Visakhapatnam-Chennai industrial corridor is expected to attract investment corridor to the tune of US$ 16.7 billion and will create more than 50,000 jobs.

Vizag among top five • The Visakhapatnam port ranks amongst the top five of 13 major ports in the country. ports in India During 2013-14, it handled 58.5 million tonnes of cargo.

• Seemandhra, comprising Rayalaseema and , has most of the power Power surplus state projects of undivided . Coal based power plants are mostly located in the state due to proximity to the ports.

FDI investment • FDI in Andhra Pradesh is scattered across the state both in Coastal Andhra and scattered across state Rayalaseema.

Largest exporter of • Andhra Pradesh is one of the largest producers of brackish water shrimps and freshwater marine products prawns. It contributes more than 20 per cent to the country‟s total marine exports. Home to various • Various pharmaceutical companies have set up their manufacturing hubs in Visakhapatnam and Srikakulam districts. The state provides ample growth opportunities pharma players due to availability of ports, pharma city, large parcels of land for expansion etc.

Tourist destinations • The state has a large coast line of nearly 1,000 kms, temple destinations, lush green forests and spicy cuisine which led to increase in domestic tourism in the last few years.

• According to the Director General of Hydrocarbons (DGH), Andhra Pradesh has huge oil Rich in hydrocarbon and gas reserves; the state is also rich in mineral resources which include manganese, and mineral resources limestone, mica, steatite, copper, graphite etc.

• The state is in the process of setting up two National Investment and Manufacturing Zones Setting up PCPIR and in Chittoor and Prakasam districts. Moreover, the upcoming PCPIR in the region would NIMZs boost refining, petrochemicals and chemical industries.

Large number of • Andhra Pradesh has 17 operational SEZs in the state across diversified sectors located operational SEZs mainly across Visakhapatnam, East Godavari and Nellore.

PCPIR: Petroleum, Chemicals and Petrochemicals Investment Region Andhra Pradesh Reorganisation Act, 2014 or the Act is a parliamentary declaration of the bifurcation of Andhra Pradesh state into two states, Telangana and residuary Andhra Pradesh (Seemandhra).

The act consisted of the aspects of division of assets and liabilities, the boundaries of the proposed new states and status of the capital city Hyderabad after the separation of the state.

• Greater Hyderabad Municipal Corporation area of Hyderabad would be Common capital and Governor the common capital for the states for a period not more than 10 years. • Both states to have a common Governor.

• Central government to provide assistance to raise additional forces. Police forces • New training center for Seemandhra would be established.

• High court at Hyderabad would be a common High Court till a separate High Court High court is established for Seemandhra. • The expenditure is to be allocated on the basis of population ratio.

• Central government to make appropriate grants, provide adequate benefits and incentives in the form of a special development package for Special development package Seemandhra. • This will ensure expansion of physical and social infrastructure. • For central government employees, an advisory committee would be appointed to draw up guidelines and take up the allocation exercise. Services of employees • For state government employees, district, zonal and multi-zonal cadres falling in one of the successor states are deemed to be allotted to that state; else employees would be allocated based on options.

• Two separate boards would be created by the central government for Water resources Krishna and Godavari Rivers to look after administration, regulation, maintenance and operation of notified projects.

• Existing PPAs would continue; units of APGENCO and assets of Energy APTRANSCO would be divided based on location. • Central power would be allotted on actual energy consumption trend.

• The Government of India shall take steps to establish institutions of national importance in the newly formed state. • The Government of India shall establish one AIIMS-type super-specialty Higher education hospital-cum-teaching institution. • Admissions in higher, technical and medical education would be common for ten years. • Quotas under article 371-D would also continue.

• Central government to provide financial support for creation of a new capital. New capital • An expert committee to be constituted by the central government to study various alternatives and make a recommendation within six months. 2013-14 HighGrowing economic demand growth Long coastline 2020E • GSDP expanded at a compound • A 972-km long coastline provides Installed Installed annual growth rate (CAGR) of 15.2 numerous opportunities for the state to per cent between 2004-05 and 2012- develop a number of ports. power power 13 to US$ 77.2 billion. • Currently has 14 notified non-major capacity: capacity: • Per capita income improved at a ports and one major port. ~20,000 ~9,555 MW CAGR of 11.7 per cent between 2004- • The coastline and ports open MW 05 and 2012-13 to US$ 1,400. opportunities for hydrocarbons, • Andhra Pradesh is a leading developing LNG terminals, setting up agricultural state in India. of pharmaceutical, aqua and agri corridors. Advantage Andhra Pradesh Adequate power Rich in hydrocarbon generation capacity reserves

• Most of the coal based power plants • According to DGH, the state has huge are located in the coastal regions due oil and natural gas reserves. to their connectivity to the ports. • The KG basin in the east coast has • As gas production from Krishna been categorised as a region with Godavari Basin (KG basin) picks up, proven commercial productivity of gas based power plants will generate hydrocarbons by DGH. more power leading to the state to • Over 39,000 sq km stretch in Kadapa become a power surplus state. district has been earmarked by DGH • A 6,000MW nuclear power plant is to as a potential exploration site for rare be set up in Srikakulam District. natural resources.

Source: Andhra Pradesh state portal DGH: Director General of Hydrocarbons, GSDP: Gross State Domestic Product Most commonly spoken language is Telugu. , , Tamil, Kannada and Oriya are the other languages used.

Andhra Parameters Pradesh Capital Hyderabad^ Geographical area (sq km) 160,205 Administrative districts (No) 13 Population density (persons per sq 308 Source: Maps of India km) Total population (million) 49.4 Andhra Pradesh is located in the southern peninsula of Male population (million) 24.7 India and has a coast line of 972 km. Female population (million) 24.6 The state of Andhra Pradesh is bound by on Sex ratio (females per 1,000 males) 996 the north, on the northeast, Telangana and on the west, Tamil Nadu on the south, and the Literacy rate (%) 67.4 Bay of Bengal on the east.

Visakhapatnam, , Tirupati, , Guntur, , Ongole, Nellore and Kurnool are some of Source: Andhra Pradesh state portal the key cities in the state. ^Share with Telangana for 10 years Andhra Parameter All States Source Pradesh Economy 2012-13 2012-13

Andhra Pradesh State Portal, May 2014 & GSDP as a percentage of all states‟ GSDP 4.5 100.0 Planning Commission Databook, July 2014 Andhra Pradesh State Portal, May 2014 & Average GSDP growth rate (%)* 15.2 15.5 Planning Commission Databook, July 2014 Andhra Pradesh State Portal, May 2014 & Per capita GSDP^ (US$) 1,563.7 1,414.4 Planning Commission Databook, July 2014 Physical Infrastructure Central Electricity Authority, as of June 2014 Installed power capacity (MW) 9,555.0 249,488.3 and Business Line citation Telecom Regulatory Authority of India, Wireless subscribers (No)^ 67,192,201 910,157,975 as of May 2014 Ministry of Communications & Information Broadband subscribers (No)^ 1,342,750** 65,330,000 Technology, as of May 2014 Ministry of Road Transport & Highways, Andhra National highway length (km) 3,144 79,116.0 Pradesh State Portal

Major and minor ports (No) 1+14 13+187 Indian Ports Association

Airports (No) 8 133 Andhra Pradesh State Portal, AAI

^For undivided state, *Calculated in Indian Rupee terms from 2004-05, **As of December 2011, ^Estimates Andhra Parameter All-States Source Pradesh Social Indicators

Literacy rate (%) 67.4 73.0 Provisional data - Census 2011

SRS Bulletin (www.censusindia.gov.in), Birth rate (per 1,000 population)^ 17.5 21.6 October 2013 Investment

Department of Industrial Policy & Promotion, FDI equity inflows (US$ billion)^ 8.8* 223.0 April 2000 to May 2014

Outstanding investments (US$ billion)^ 198.1 2,414.2 CMIE (2013-14)

Industrial Infrastructure

www.pppindiadatabase.com, PPP Cell, Andhra PPP projects (No) 120 1,339 Pradesh, March 2014

SEZs (No) 42 392 Notified as of July 2013, www.sezindia.nic.in

^For undivided state, PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System, *Data shared by RBI Hyderabad At current prices, Andhra Pradesh‟s Gross State Domestic GSDP of Andhra Pradesh at current prices Product (GSDP) was estimated at US$ 77.2 billion over (in US$ billion) 2012-13.

78.2 77.2 Between 2004-05 and 2012-13, the average annual GSDP CAGR 15.2%* 70.1 growth rate was 15.2 per cent*. 57.6 52.7 51.4 Growth was mainly driven by industrial and services 38.6

sectors. 30.1 33.4

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Source: Andhra Pradesh state portal *In Indian Rupee terms At current prices, Andhra Pradesh‟s Net State Domestic NSDP of Andhra Pradesh at current prices Product (NSDP) was estimated at US$ 70.2 billion over (in US$ billion) 2012-13. CAGR 71.2 70.2 63.8 Between 2004-05 and 2012-13, the average annual NSDP 15.4%* growth rate was about 15.4 per cent*. 52.4 47.4 46.6 34.7 30.1

27.1

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

2010-11 (E) 2010-11 (E) 2011-12 (E) 2012-13

Source: Andhra Pradesh state portal *In Indian Rupee terms, E- Estimates Andhra Pradesh‟s per capita GSDP increased to US$ GSDP per capita of Andhra Pradesh at 1,550.0 during 2012-13 from US$ 647.7 over 2004-05. current prices (in US$)

1,584.6 Average per capita GSDP rose at a CAGR of 14.2 per cent* CAGR 1,550.0 between 2004-05 and 2012-13. 14.2%* 1,432.7 1,188.1 1,106.2 1,069.8 816.1 714.0

647.7

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Source: Andhra Pradesh state portal *In Indian Rupee terms Per capita calculated based on population growth between 2001 and 2011 census figures Andhra Pradesh‟s per capita NSDP grew from US$ 583.4 NSDP per capita of Andhra Pradesh at during 2004-05 to US$ 1,410.1 over 2012-13. current prices (in US$)

Average per capita NSDP increased at a CAGR of 14.4 per cent* between 2004-05 and 2012-13. CAGR 1,441.5 1,410.1 14.4%* 1,303.3 993.6 1,080.8 968.4 734.4

583.4 643.7

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

2010-11 (E) 2010-11 (E) 2011-12 (E) 2012-13

Source: Andhra Pradesh state portal *In Indian Rupee terms, E- Estimates Per capita calculated based on population growth between 2001 and 2011 census figures Andhra Pradesh‟s per capita income grew from US$ 579.3 Per capita Income of Andhra Pradesh at during 2004-05 to US$ 1,400.0 over 2012-13. current prices (in US$)

Average per capita income increased at a CAGR of 11.7 per 1,424.0 CAGR 1,400.0 1,287.5 cent* between 2004-05 and 2012-13. 11.7%* 1,065.3 987.7 961.7 730.2 639.4

579.3

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Source: Andhra Pradesh state portal *In Indian rupee terms, E- Estimates During 2012-13, the service sector accounted for 49.7 per GSDP composition by sector cent (US$ 38.4 billion) of GSDP (at current prices), followed by agriculture (27.3 per cent; US$ 21.1 billion), and industry CAGR* (23.0 per cent; US$ 17.8 billion).

48.5% 15.6% 49.7% The industry sector grew the fastest at a CAGR of 16.2 per cent*, followed by services (CAGR of 15.6 per cent*) and agriculture (CAGR of 14.0 per cent*) between 2004-05 and 2012-13. 21.6% 16.2% 23.0%

29.9% 14.0% 27.3%

2004-05 2012-13 Agriculture Industry Services

Source: Andhra Pradesh state portal *In Indian Rupee terms During 2012-13, total gross area under crop production in Area under Crop production Andhra Pradesh was 8.6 million hectares of which 6.7 million hectares was net sown area. Crop production „000 tonnes „000 Ha (2012-13) (2012-13)

Overall production of cereals and millets during 2012-13 Rice 2772.4 6863.0 stood at 9.4 million tonnes. Maize 233.4 NA Major food grains produced in Andhra Pradesh are rice, Cereals & millets 3210.7 9363.0 maize and pulses. Pulses 1373.5 1133.0 Sugarcane, cotton, tobacco and groundnut are some of the Total food grains 4585.0 NA other major crops produced in the state. Groundnut 1426.1 NA The state has the groundnut rich Rayalaseema area, which Oilseeds 1974.1 1988.0 produces nearly 90 per cent of the groundnut. This area also produces most of the sugarcane in the state. Vegetables 159.7 NA

During 2012-13, total production of oilseeds in the state was Fruits 618.3 NA estimated at 2.0 million tonnes. Cotton 389.0 1543.0

Fodder crops 66.8 NA

Source: Andhra Pradesh state portal NA – Not Available During 2010-11, nearly 50 per cent of the irrigation in the state was dependent on canal water, more than 35 per cent Jalayagnam project status - May 2014 on ground water and more than 10 per cent on tank water. Area covered Major irrigation projects Numbers (million acres) The undivided state has embarked an water projects in the Completed 10 46.8 country called Jalayagnam with an estimated cost of nearly US$ 20 billion. Ongoing 14 28.0

This water management program was introduced in 2009 to Contemplated 5 27.3 bring a larger parcel of land in the undivided Andhra Area covered Pradesh under irrigation. Medium irrigation projects Numbers (million acres)

Currently, out of the 29 major irrigation projects in Completed 50 0.6 Seemandhra, 10 are completed and 14 projects are Ongoing 11 0.2 ongoing. Moreover, of the 63 medium irrigation projects, 50 are completed and 11 are ongoing. Contemplated 2 0.1

The completion of the ongoing projects will further help the state to increase penetration of canal water harvesting and Source: Andhra Pradesh state portal irrigate the 10 million acres of arid and dry land in the southern part of the state. Exports from Visakhapatnam Port, one of 13 major ports in Total exports turnover from Vizag Port India, stood at 25.0 million tonnes during 2013-14. (million tonnes)

The port has also emerged as the leading port in marine 29 29 30 exports in India. 27 25 24 Marine exports from the port during April to December 2013 stood at US$ 826 million compared to US$486 million in the corresponding period a year earlier.

During the period, Vizag‟s share of seafood exports stood at 23 per cent in terms of value and 22 per cent in terms of dollar realisation.

2009-10 2010-11 2011-12 2012-13 2013-14 Exports from the port are expected to increase in the near 2008-09 term as it has taken up two major projects to extend the existing container terminal and modernisation & upgradation Source: Port of Visakhapatnam of the iron ore handling complex. The divided Andhra Pradesh will grow as an economic Foreign direct investment in Andhra Pradesh over the last powerhouse as the state‟s coastal region will attract 20 years stood at US$ 1,476.5 million. Majority of the investment which was earlier concentrated mainly towards investment was done in coastal Andhra region. Hyderabad.

FDI across Andhra Pradesh over 1991-2010 The location advantage of the state has helped it to witness (US$ million) increasing investment in the coastal Andhra region over the last few years. This was mainly from manufacturing sectors 1,800 like pharma, chemicals, mining, petrochemicals, etc.

1,303 The state has the potential to develop various growth 1,350 centres along the coastline like Visakhapatnam, Vijayawada, Nellore and Anantapur. 900

Moreover, the proposed Visakhapatnam Kakinada Petroleum, Chemicals and Petrochemicals Investment 450 Region (PCPIR) is expected to attract huge investment. 173

0 Recently, a commitment was made by the Industrial Rayalaseema Coastal Andhra Development Forum that Andhra Pradesh is expected to receive investment to the tune of US$ 933.3 million in the next two to three years. Source: News article Total FDI in undivided Andhra Pradesh from 1991 to 2010 = US$ 3,014.5 million, Average exchange rate used INR 42.2/US$ Tax holiday, special status and other incentives are anticipated to further boost investment. Road network across the state Recently, the finance minister stated that the master plan for both the projects will be ready soon and development work will start within the proposed timeline.

Moreover, the government has also planned to identify important towns and cities in the state and build a network of express highways connecting those important cities.

Road length (km) Road type FY 12-13

Source: Andhra Pradesh state portal National Highways 3,144 Total roads 42,137 By the end of 2012-13, the state was connected via 3,144 Black top and asphalt 38,696 km of national highways and 42,137 km of other roads. Concrete/metalled/unmetalled 3,441 The proposed Chennai Visakhapatnam corridor under the Reorganisation Act will aid development of road projects. Source: Andhra Pradesh state portal The proposed Chennai-Bangalore corridor is anticipated to further support development of road projects in the region. The state is well connected through the rail network. The Union Government has also planned to develop metro Visakhapatnam, the largest city in the state, has rail rail projects at three locations in the state, including accessibility to nine district headquarters out of 13 in the Visakhapatnam, Guntur and Vijayawada. new state. The Visakhapatnam project, estimated to cost US$ 833.3 The city is also well connected to the neighbouring states of million, will develop four important routes that are not well Odisha and Chhattisgarh. connected currently.

The state is also planning to form a separate railway zone, Rail network across the state namely South Coast Railway, with Vizag as its headquarter.

Vizag is proposed to be the headquarter of the zone as the region houses major industrial as well as commercial establishments and is a busy railway junction in terms of passenger and freight traffic.

The new zone will consist of Waltair Division of the East Coast Railway (ECoR) as well as Vijayawada, Guntur and Guntakal divisions of South Central Railway.

The government has also planned to set up a high speed train between Hyderabad and the new capital city to ease traffic movement between the two states. Source: Maps of India Andhra Pradesh has eight operational airports/air strips at Airports across the state Visakhapatnam, Tirupati, Rajahmundry, Vijayawada, Bobbili, Nagarjuna Sagar and Puttaparthi.

Apart from these, Donakonda airport is non-operational (closed) whereas four are under development in Nellore, Kurnool, Ongole and Kadapa.

Visakhapatnam, also popular as Vizag, has an international airport, which is under the Navy's command.

The state is planning to develop a second runway at Vizag only for commercial operations

Moreover, the state is also planning to extend the airport‟s operating time to 24/7, which is expected to bring more airlines to Vizag.

Various international airlines have expressed interest in commencing or increasing existing operations. The relaxation of the timing will also enable various domestic airlines to introduce additional flights in Vizag.

This will increase employment opportunities in the region as Source: Andhra Pradesh state portal, Airports Authority of India more industries will come from abroad, bringing investments. Andhra Pradesh has a 972 km long coastline and the Visakhapatnam port traffic (million tonnes) second highest cargo handling port. 72 66 68 67 64 The Visakhapatnam port ranks amongst the top five of 13 59 59 major ports in the country. During 2013-14, it handled 58.5 million tonnes of cargo. 54

Coking coal, iron ore, petroleum products and thermal coal 36 are some of the key products handled by the port. It also has a high volume of container traffic.

18 Other than Visakhapatnam, the state has five more operational ports. Apart from these, seven more ports are under development and three are proposed to be 0 developed. 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

The extension of the existing container terminal and the modernisation and upgrading of the iron ore handling Source: Port of Visakhapatnam complex will enable the port to increase its cargo handling capacity in the near term.

The first project, estimated to cost over US$ 100 million, has been awarded to the Visakha Container Terminal Private Ltd and the second, estimated to cost US$ 137.5 million, was awarded to Essar Ports. As of June 2014, Andhra Pradesh had a total installed Installed power capacity (MW) power generation capacity of nearly 9,555MW.

8,176 16,949 17,495 The state has nine hydro power projects under operation 16,095 and one under development. Moreover, the state has one 15,036 13,409 operational wind power project. 11,639

Most of the coal based power plants are located in the coastal regions because of their connectivity to the ports. 9,555

The state also has three thermal power projects under operation, two projects under development and two projects under construction. 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15*

Andhra Pradesh Telangana Per capita consumption of electricity in Andhra Pradesh stood at 685.1 kWh during 2012-13. Source: Central Electricity Authority *As of June 2014 based on Business Line citation The state is planning to add another 8,400 MW power capacity under the public sector which includes a 600 MW The setting up of an LNG terminal by Petronet LNG at plant at RTPP, Muddanur, 4,000 MW near Vodarevu in Gangavaram will make gas available for six gas based Prakasam district, 2,400 MW plant in Srikakulam and a power plants, with a capacity of 2,700 MW, which currently 2,000 MW nuclear power project. produce only 700 MW due to shortage of gas.

Furthermore, an additional 3,000 MW of power generation is Taking into consideration all the existing and planned power planned by private players in the state. plants to be operational, total power available in the state is expected to reach 18,000 MW to 20,000 MW in the upcoming years. Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is the agency responsible for the supervision and execution of SEZs in the state.

As of July 2014, the state has 17 operational SEZs in the state across diversified sectors which include textiles and apparel, food processing, footwear and leather products, multi-product, pharma, IT SEZs etc. Some of the operational SEZs in Andhra Pradesh

Name/Developer Location Primary industry

Andhra Pradesh Industrial Infrastructure Corporation Ltd Vishakhapatnam Multi-product, IT/ITeS

Brandix India Apparel City Private Ltd Achutapuram, Visakhapatnam Textile

Ramky Pharma City Pvt Ltd Mandal, Visakhapatnam Pharmaceuticals

Divi‟s Laboratories Chippada Village, Visakhapatnam Pharmaceuticals

Apache SEZ Development India Mandal Tada, Nellore Footwear

Hetero Infrastructure Nakkapalli Pharmaceuticals

Parry Infrastructure Kakinada Food processing

Andhra Pradesh Industrial Infrastructure Corporation Ltd East Godavari IT/ITeS

IFFCO Kisan SEZ Nellore Multi product

Bharatiya International SEZ Nellore Leather sector

Andhra Pradesh Industrial Infrastructure Corporation Ltd Nellore Multi product

Source: www.sezindia.nic.in SEZ: Special Economic Zone Andhra Pradesh has five SEZs with valid in-principle approvals and 42 SEZs with formal approvals, as of July 2013.

SEZs with valid in-principle approvals

Name/Developer Location Primary industry

South Coast Infrastructure Development Co of NH-5 between Prakasam and Building materials Andhra Pradesh Private Ltd (SCIDCAP) Nellore District

Lepakshi Knowledge Hub Private Ltd Ananthapur Multi-product

M/s Drugs & Pharmaceuticals Manufactures Nakkapalli Mandal, Visakhapatnam Pharmaceuticals /APIs/formulations Association

Boyapalem, Naruva & Chittivalasa Chemicals & M/s Vivimed Labs Ltd villages, Ranasthalam Mandal, pharmaceuticals Srikakulam

Petroleum and oil & gas M/s Planet SEZ Private Limited Visakhapatnam industry

Source: www.sezindia.nic.in Under Project cost Project name Sector Stage government (US$ million)

Krishnapatnam Ultra Mega Power Project Energy Central 2916.7 Construction

Krishnapatnam Port Ports State 866.7 Operational Kakinada Deep Water Port Ports State 659.3 Operational Gangavaram Port Ports State 308.3 Operational

Vijayawada-Gundugolanu Section Roads Central 280.7 Bidding

Six-laning of Gundugolanu Rajamundry Roads Central 269.5 Bidding

Four laning of Cuddappah-Kurnool section Roads Central 264.2 Construction

Machilipatnam Port Development Ports State 265.0 Construction

GVK Jegurupadu Combined Cycle Power Project Energy State 170.8 Operational

IT/ITeS SEZ, Vijayawada IT State 75.0 Operational

Jawaharlal Nehru Pharma City, Visakhapatnam Infrastructure State 52.2 Operational

Dispensary site at Maddilapalem Urban development State 4.5 Reversion

Source: Public Private Partnership in India Database P-P-P: Public-Private Partnership, As of March 2014, Converted using flat exchange rate of INR 60 / USD • During the tenure of the last central government, the state received „in-principle‟ approval from the government for setting up two National Investment and Manufacturing Zones (NIMZs) in Chittoor and Prakasam districts. • The state will develop NIMZs as integrated industrial townships, with state of the art Two new NIMZs infrastructure and land use on the basis of zoning, clean and energy efficient technology, necessary social infrastructure and skill development facilities. • They are expected to attract investment of more than US$ 8.0 billion and would have an employment potential of 0.3 million each.

• The new government is planning to set up the new capital for the state between Vijayawada and Guntur. New capital city and 10 • These fast growing cities (Vijayawada and Guntur) with substantial infrastructure can be smart cities transformed into a mega capital city. • Moreover, the government plans to develop many mega cities across the state as part of the decentralised development agenda.

• The proposed Visakhapatnam-Chennai industrial corridor is expected to attract investment of US$ 16.7 billion and will create more than 50,000 jobs. • This will be developed in two or three phases spanning more than 15 years. • Moreover, Visakhapatnam has been included in the upcoming Chennai-Bangalore Industrial corridors Industrial Corridor. • The former will provide a thrust to industrial development across various districts and villages in the state along the stretch of the corridor, whereas the latter will lead to development across Anantapur, Chittoor and Nellore.

According to the Telecom Regulatory Authority of India Airtel is planning to launch 4G services in the states of (TRAI), undivided Andhra Pradesh had nearly 67.2 million residual Andhra Pradesh by the end of this financial year wireless subscribers and 2.0 million wireline subscribers as with special focus in the cities of Vijayawada and of May 2014. Visakhapatnam.

According to the Department of Telecommunications, Government of India, the undivided state had 4,266^ telephone exchanges and 130,282^ public call offices Telecom infrastructure (as of May 2014) (PCOs) as of March 2012. Wireless subscribers^ 67,192,201

The overall tele-density in undivided Andhra Pradesh stood Wire-line subscribers^ 2,020,044 at 79.4^ per cent as of May 2014. Broadband subscribers^ 1,342,750* Optical fibre cable networks of BSNL with 44,500^ km, Reliance with 6,000^ km, Bharat with 3,450^ km and Tata Telephone exchanges^ 4,266** with 1,700^ km provide a wide range of communication networks to Andhra Pradesh. Public Call Offices (PCOs)^ 130,282**

As of July 2014, there were 16,161^ post offices in the state. Source: Telecom Regulatory Authority of India, Department of Telecommunications, Annual Report 2011-12, BSNL announced that there will be no charge of inter-state Ministry of Communications & Information Technology, India Post roaming between Telangana and Seemandhra until 2024. *As of December 2011 **As of March 2012

^For undivided Andhra Pradesh In 2024 when the licensing of spectrum ends, a new BSNL: Bharat Sanchar Nigam Limited spectrum auction would be conducted for the two states and the norms would be set at that time for inter-state roaming. Number of schools Andhra Pradesh has a literacy rate of 67.9 per cent, Classes according to provisional data released by Census 2011. (2012-13*) (I-V) 40,929 During 2012-13*, 7.2 million students were enrolled in (I-VII/VIII) 9,575 60,659 schools. There were 40,929 primary schools, 9,575 upper primary schools, 9,994 high schools and 161 higher (I-XII) 161 secondary schools. The total number of teachers reached 104,047. (I-X) 705 (VI-X) 9,289 In medical education, Andhra Pradesh has 21 medical colleges with eight in the government sector. Number of Number of Andhra Pradesh has 20 state run universities, with 10 in the Course colleges students coastal Andhra region and the other 10 in the Rayalaseema (2011-12) enrolled region. Junior colleges 2,886 886,762

The State Reorganisation Act has ensured the retention of B Ed training colleges 365 39,049 existing admission quotas in educational institutions for a Engineering 366 156,177 period of 10 years. Pharmacy colleges 120 11,040 In order to provide equal benefits to the students of the MBA colleges 438 39,491 newly formed states, the government has given its nod to set up an IIT, an IIM, three central universities, an IISER Polytechnics 163 48,980 and an IIIT among other institutes in Andhra Pradesh. Source: Commissioner & Director of School Education, Andhra Pradesh state portal *Data as on 30 September 2012 Major hospitals By the end of 2011-12, Andhra Pradesh had 275 allopathic hospitals, 1,021 primary health centres and 25,769 beds. Apollo Hospital Moreover, the state also had three ayurvedic hospitals and Care Hospital three homoeopathic hospitals. Manipal Hospital Recently, various super-specialty hospitals are coming up Krishna Institute of Medical Sciences across the state mainly in the coastal area of Vijayawada. The city is anticipated to become the largest destination for medicare in coastal Andhra. Health indicators (estimates) (2010)

Birth rate* 17.1 Various hospitals are planning to set up operations in the state and some are in the process of expanding their Infant mortality rate** 42.8 existing facilities. This includes doubling of bed strength by The Krishna Institute of Medical Science and setting up of Medical facilities (2011-12) three hospitals comprising of 800 beds by Apollo Group. Hospitals 275 Primary health centres 1,021 Moreover, a central government funded health institute, similar to All India Institute of Medical Sciences, is expected Dispensaries 13 to come up in Vijayawada. Regular doctors 5,086

Contract doctors 612 The government has already sanctioned US$ 200 million as the first instalment for the purpose and another US$ 48.7 Beds available 25,769 million has been sanctioned for the development of all the hospitals in Krishna district. Source: Andhra Pradesh state portal *Per thousand persons, **Per thousand live births There are several sports complexes in the state spreading across Visakhapatnam, Tirupati and other cities. Although Stadiums and sports complexes in cricket and tennis are the major sports, other games are Visakhapatnam also popular. Aqua Sports Complex

Visakhapatnam has seven cricket stadiums which are used Port Trust Golden Jubilee Stadium for Ranji Trophy matches whereas a few of them are also used for one day international matches. The city has a golf South Eastern Railway Stadium course named the East Point Golf Club. Police Stadium

The Tirupati temple and Kanakadurga temple makes the Indira Priyadarshini Stadium state one of the leading religious tourism spots in the Steel Plant Township Stadium country. Zinc Stadium Moreover, the project for developing the beach corridor from GITAM Engineering College Synthetic Tennis Court Visakhapatnam to Bhimili is progressing rapidly and tenders have been called for development of RK Beach and ACA-Visakhapatnam District Cricket Association's Rishikonda. Stadium

Golden Jubilee Indoor Stadium Furthermore, the state‟s long coastline offers high potential to develop beach resorts that can turn into tourist hotspots. Swarnabharathi Indoor Stadium Other revenue generating tourist hotspots of the state include the Buddhist sites in Krishna and Guntur districts GITAM Indoor Sports Stadium and the Chandragiri Fort in Chittoor. Andhra University Grounds The government is planning to make the state an IT power These include allocation of an SEZ to Wipro, 10 acres to house in the coming years. Tech Mahindra & 13 acres to Society for Applied Microwave Electronics Engineering and Research. According to an announcement made by the Minister for Information Technology in July 2014, Visakhapatnam is set Apart from Visakhapatnam, cities such as Vijayawada, to be developed into the „IT capital‟ of the state. Tirupati, Kakinada and Anantapur will also be developed into IT hubs. Madhurawada, located in the north-east of Visakhapatnam, has already been developed as an IT hub. Various IT firms Revenue from IT industry (in US$ million) were allocated land in this area to develop and start their operations while few of them are already operational. 300.0 266.0 256.0 Big brands such as IBM, Tech Mahindra and Wipro already 225.0 operate in Vizag.

150.0 Moreover the city has close to three universities which produce more than 35,000 IT graduates every year. 75.0 21.2 20.4 11.3 As part of the state government's commitment to transform 0.9 1.3 7.4 Vizag into a major IT hub, lands have been allocated to 0.0 three major companies. Vizag Vijayawada Tirupati Kakinada 2011-12 2012-13

Source: Andhra Pradesh IT department, News articles • Andhra Pradesh government is planning to set up Information Technology Investment Proposed ITIRs Regions (ITIR) in Visakhapatnam, Anantapur and Chittoor districts.

• A detailed report on the proposed Visakhapatnam ITIR, which would spread across Visakhapatnam ITIR 12,000 acres, has been prepared and submitted to the state government and is expected to be implemented over a period of 25 years in two phases.

Tirupati/Anantapur/ • Another ITIR is proposed to be set up across 4,000 acres of land near the international airport at Tirupati, 4,000 acres of land at Anantapur, near Karnataka border and another Nellore ITIR 4,000 acres at APIIC‟s industrial corridor of Chittoor-Nellore.

Investment potential of • The state expects the Visakhapatnam ITIR project to have an investment potential of US$ 7.5 billion and revenue of US$ 6.2 billion. US$ 40.4 billion from • Direct and indirect employment generated from the project is estimated at 0.43 million and Vizag 1.71 million, respectively, once it is fully functional.

Source: News articles IT exports from Andhra Pradesh stood at nearly US$ 122.8 million and employ nearly 4,000 people.

In order to increase the contribution of IT export and employment from Seemandhra, the state has drafted a guideline to address the key determinants of successful growth in the IT and Electronics sectors.

Parameter Contribution from Seemandhra

Exporting units registered with STPI 27

Export turnover of STPI units (US$ million) 122.8

Employment ('000s) 4

Major indicator Goal to be achieved by 2020

Make all government to citizens and government to To attain number one position in „eTAAL‟ by 2017 and maintain business services available online and on mobile it through 2020 Share in the national IT exports 5 per cent

Investments in IT US$ 2 billion by 2017 & US$ 5 billion by 2020

Investments in electronics manufacturing US$ 5 billion by 2017 and US$ 10 billion by 2020

Employment created in electronics and IT 0.3 million by 2018 and 0.5 million by 2020 Gigabit to all gram panchayats by 2017 and to all villages by Broadband penetration 2020

Source: Andhra Pradesh IT vision • Tech Mahindra, part of Mahindra Group conglomerate and headquartered at Mumbai, Tech Mahindra provides information technology, networking technology solutions and business support services to the telecommunications industry. The company, having operations in Visakhapatnam, merged with Mahindra Satyam on March 21, 2012 and together the new entity serves 540 corporate customers across 49 countries. The company reported a revenue of US$ 3.1 billion during the financial year 2013-14.

• IBM is a leading global IT services and solutions provider, with operations in over 170 IBM countries across the world. Products offered by the company‟s Indian operations include software, storage, systems and servers and semiconductors. IBM has been present in India since 1992. Since inception, IBM in India has expanded its operations considerably, with regional headquarters in Bengaluru and presence in over 200 cities and towns across the country; including a global delivery centre in Visakhapatnam.

• Established in 1945, Wipro ventured into the IT services industry in the 1990s. The company was among the pioneers in developing the Offshore Development Centre concept Wipro in India. In order to focus on core IT business, it separated its non-IT businesses into a separate entity named Wipro Enterprises Limited with effect from 31 March 2013. Currently, the former company provides information technology, consulting and outsourcing services to over 900 clients across more than 175 cities across 6 continents. In 2012, the company opened a delivery centre in Vishakhapatnam. The company has an employee base of 146,053 and posted revenues of US$ 7.3 billion for the financial year ended Mar 31, 2014. Andhra Pradesh is home to many global and national Few of the national players to set up their manufacturing pharma players; various companies have set up their hubs in the state include Dr Reddy's Laboratories, manufacturing hubs in Visakhapatnam and Srikakulam Aurobindo Pharma, Hetero Drugs etc. districts.

Some of the key players Parawada, Nakkapalli, Pydibhimavaram and Ranasthalam are the largest pharma manufacturing centres in the state • Eisai that have attracted several investments, particularly in bulk • Granules India drug sector. While Parwada and Nakkapali are located in • Hospira Vishakapatnam, the other two are located in Srikakulam. • Dr Reddy's Laboratories

• Aurobindo Pharma Jawaharlal Nehru Pharma City, an integrated industrial park • Mylan located in Visakhapatnam, has various bulk drug • Omnichem manufacturers, pharmaceutical companies and fine chemical manufacturers, with nearly 45 pharmaceutical companies. Source: News articles The state provides ample opportunities for pharma companies due to availability of ports, pharma city, international airport, large parcels of land for expansion and good effluent treatment facilities.

Various global pharma companies have already set up their manufacturing hubs across the state which include Japanese and US giants such as Eisai, Ajinomoto, Mylan and Hospira. Aurobindo Pharma • Founded in 1986, Aurobindo Pharma is an India based pharmaceutical manufacturing Ltd company. The company, which manufactures generic pharmaceuticals and active pharmaceutical ingredients, markets these products across 125 countries. The company has a manufacturing plant in Vizag. During 2013-14, the company generated revenues of US$ 1.3 billion.

Dr Reddy's • Incorporated in 1984, Dr Reddy's Laboratories manufactures and markets a wide range of Laboratories pharmaceuticals across domestic and overseas markets. The company‟s products include generic formulations, APIs, bio-similars etc. It has expanded its presence across the globe through steady organic growth, partnerships and acquisitions. During 2013-14, the company generated revenue of US$ 2.2 billion.

• Mylan Laboratories Ltd (formerly known as Matrix Laboratories Ltd) is a subsidiary of US- Mylan Laboratories Ltd based Mylan Inc and has one USFDA-approved facility in Visakhapatnam. It is one of the world‟s largest manufacturers and suppliers of active pharmaceutical ingredients (APIs) for a wide range of therapeutic categories including antibacterials, central nervous system agents, antihistamine/anti-asthmatics, cardiovasculars, antivirals, antidiabetics, antifungals, proton pump inhibitors and pain management drugs.

Granules India Ltd • Granules India is a Indian pharmaceutical company with manufacturing facilities spreading across India and China. The company serves customers across 60 countries with four facilities in India, which includes Vizag and a fifth facility in Jingmen, China. The company recently acquired Auctus Pharma and is looking towards further expansion of its business through both organic and inorganic routes. Andhra Pradesh produces medium grade and superior long Andhra Pradesh has emerged as a large textile processing staple varieties of cotton. During 2013-14, the state centre. There are nearly 100 mills in the state, with coastal produced nearly 2.8 million bales (170 kg each) of cotton. Andhra having a lion‟s share.

Few of the major cotton producing districts in the state include Vizianagaram, East Godavari, Guntur, Prakasam Handloom and textile exports for undivided and Kurnool. Andhra Pradesh (in US$ million) 479.3 The undivided Andhra Pradesh government has identified the textile sector as one of the long term growth engines. To CAGR 404.7 utilise the potential of the sector, the government has 27.6%* established five apparel export parks (AEPs) and seven 340.2 textile parks. It has proposed to establish a few more AEPs and textile parks in the state. 272.6

There are over 150 spinning mills including a number of 100 per cent export oriented units with state-of-the-art 150.2 149.2 machinery; producing cotton, synthetic and blended yarns in the undivided state. 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Between April 2006 and February 2012, 55 handloom clusters were sanctioned under the Integrated Handlooms Source: Andhra Pradesh Socio-Economic Survey 2012-13, Development Scheme in the Seemandhra and Telangana News articles, *In Indian Rupee terms regions. The presence of rich climatic and soil conditions is expected Seafood exports from Andhra Pradesh to make Seemandhra a major agricultural belt. Few of the (in US$ million) leading crops produced in the state include rice, chilly, oilseeds, cotton, pulses and gram. 914.0

The state‟s Krishna, Guntur, East and West Godavari CAGR 35.5% districts have good irrigation facilities which help it to 623.1 produce a large amount of rice. 565.7

During 2010-11, out of a total cropped area of 8.6 million hectares, 4.6 million hectares was utilised for food grain 286.5 production. Around 3.2 million hectares was used for 199.9 199.3 producing cereals & millets, out of which 2.8 million hectares was used to produce rice.

The districts of Nellore, Krishna and Guntur are very fertile, 2008-09 2009-10 1010-11 2011-12 2012-13 2013-14* with above average production of cereals, pulses, groundnut and cotton. Source: Vizag Industrial Scan – Industrial newspaper, Andhra Pradesh state portal, The state produced 6.9 million tonnes of rice, 1.1 million *Till January 2014 tonnes of pulses, 2.0 million tonnes of oil seeds and 1.5 million tonnes of cotton during the financial year 2011-12.

The central government is planning to develop Tirupati or Chittoor as agro-based and food-processing hubs and Visakhapatnam as the fisheries and sea-food hub. Mondelez India • Mondelez India Foods Ltd is part of Mondelēz International, Inc. It operates in five Foods Ltd categories – chocolate confectionery, beverages, biscuits, gum and candy. The company‟s key brands in India include Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, Éclairs, Bubbaloo, Tang and Oreo. The company is planning to launch a Cadbury chocolate production plant in Chittoor district with an estimated cost of US$ 166.7 million and would commence production from mid 2015. • Cargill maintains a number of businesses in India, with operations including handling and Cargill India Pvt Ltd processing of a wide range of products such as refined oils, grain and oilseeds, sugar, cotton and animal feed. Cargill‟s presence in India has been growing since it began a joint venture (JV) operation in 1987. In 2006, it entered into a JV and subsequently took over a leading shrimp feed manufacturing farm in Rajahmundry. It has also entered into a JV with EID Parry for a sugar refinery at Kakinada in the state.

ITC • ITC is a large Indian business conglomerate with diverse business interests including agri- foods, paper, fast moving consumer goods, lifestyle and retailing and hotels. Over 2012-13, its revenue reached around US$ 5.9 billion. A substantial part of ITC‟s agri-business is located in Andhra Pradesh. The company has a unit in Anaparti and Chirala, and a research centre in Rajamundhry. The company also runs its innovative internet based “e-Choupal” initiative in the state for the benefit of farmers.

Andhra Pradesh Dairy • APDDCF runs 12 dairy plants and manufactures milk products under the Vijaya brand. Development Cooperative These plants together have a production capacity of 2,437 thousand litres per day. Products Federation (APDDCF) include butter, ultra-high-temperature (UHT) milk, milk powder, ghee, flavoured milk, khoya, kulfi and processed cheese. It is one of the 15 dairy cooperatives operating under the National Dairy Development Board (NDDB). Andhra Pradesh is known for its pristine beaches, sacred The Tourism Corporation has already initiated the process places of worship, lush green forests, spicy cuisine and and is working towards the development of a beach corridor hospitable people. from Visakhapatnam to Bhimili which includes the RK Beach and Rishikonda. The state continued to witness increase in domestic tourist arrivals over the last few years. Arrival of domestic tourists in Andhra Pradesh Number of tourist increased to 115 million in 2012 from (in million) 104.2 million recorded in 2010.

Most of the tourist destinations in the state are concentrated in Visakhapatnam, Simhachalam, Araku and the beaches of 115.0 East and West Godavari. Tirupati and Bhadrachalam are major temple destinations attracting a large chunk of travellers.

Few of the prospective locations that can be developed for 104.2 103.6 tourism include the backwaters of , beach resorts along the long coastal line, the Buddhist sites in Krishna and Guntur districts and the Chandragiri Fort in Chittoor. 2010 2011 2012

Moreover, wild life tourism can be developed in Pulikat Lake Source: Ministry of Tourism, Government of India; News articles in Nellore, the Kolleru Lake in Krishna and West Godavari districts. According to the Director General of Hydrocarbons (DGH), Andhra Pradesh has huge oil and natural gas reserves. The state‟s Krishna-Godavari basin, spread over an area of nearly 52,000 sq km, has a total hydrocarbon resource base of 1,130 million metric tonnes.

Andhra Pradesh is the second Indian state, after Gujarat, to enter the oil and gas exploration and production segment through bids for oil and gas blocks under the central government‟s New Exploration Licensing Policy (NELP).

The Andhra Pradesh government decided to enter the oil and gas exploration and development sector and set up a special purpose vehicle (SPV), the Andhra Pradesh Gas Infrastructure Corp Limited (APGIC), as a joint venture between two state owned entities.

The infrastructure provider for industries in the state, Andhra Pradesh Industrial Infrastructure Corporation (APIIC), owns 51.0 per cent in the SPV and the remaining is held by AP Genco.

APGIC secured four blocks under auction as part of a consortium led by ONGC. APGIC owns 10 per cent in the consortium, while other partners ONGC, British Gas and hold 40 per cent, 35 per cent and 15 per cent, respectively.

Recently, the DGH has earmarked a stretch of more than 39,000 sq km in Kadapa district in Rayalaseema region as a potential exploration site for natural resources. This region is most likely to be lined up for bidding in the upcoming rounds of NELP.

Source: Ministry of Petroleum and Natural Gas, News articles Recently, the Visakhapatnam-Kakinada Petroleum, Key features of PCPIR Chemical and Petrochemical Investment Region Special Development Authority (VK- PCPIR SDA) has released the The investments generated in the PCPIR are estimated to final draft master plan and zonal development plans with the be around US$ 72.3 billion. land use proposals. Total area 640 sq km; Processing area 270 sq km

The PCPIR project would boost refining, petrochemicals The project is said to have an employment generation and chemical industries and also the manufacturing sectors capacity of 1.2 million in the state. As per the latest update, total committed investments stood at US$ 57.2 billion The project will bring investment in the state and will help to boost trade, revive exports, develop infrastructure and The petroleum and petrochemical sector accounted for around 63 per cent of total committed investment. increase employment.

HPCL is considering the setting up of a greenfield 15 Major investors in PCPIR mmtpa refinery-cum-petrochemical complex in the region which would require investments to the tune of US$ 10-12 billion.

Moreover, the company is about to expand capacity at its refinery in Visakhapatnam from the current 8.3 mmtpa to 15 mmtpa over 3 to 4 years with an investment of US$ 0.9 billion.

Source: Andhra Pradesh PCPIR MMTPA: Million Metric Tonnes Per Annum Seemandhra is rich in mineral resources which include manganese, limestone, mica, steatite, copper, graphite etc. Minerals Availability across districts

Manganese ore is located across Nellore, Prakasam, Nellore, Prakasam, Vizianagaram and Vizianagaram and Srikakulam, mica is found around Manganese ore Krishna, Nellore, Visakhapatnam etc whereas limestone is Srikakulam found around Kadapa district. Krishna, Nellore, Chittoor, Ananthapur, West Godavari, Visakhapatnam, Guntur, During 2012-13, the state generated annual mineral Mica revenues of US$ 149.4 million compared to a target Chittoor, Ananthapur,and West revenue of US$ 177.4 million. Godavari

The total mineral revenues comprised of US$ 58.7 million Ananthapur, Chittoor, Cuddapah and Steatite/talc from major minerals and US$ 90.8 million from minor Kurnool minerals.

Cuddapah, Guntur, Kurnool, Nellore and Seemandhra region has abundant reserves of uranium in Copper Tumalapalli village located in Kadapa. According to a study Prakasam conducted by the Atomic Energy Commission of India, the mine is expected to have the largest reserves of uranium in East Godavari, West Godavari, Graphite the world. Visakhapatnam and Srikakulam

The Government of India has started exploration of sizable uranium deposits in YSR districts in Andhra Pradesh through M/s. Uranium Corporation India Ltd, a public sector Source: Indian Mineral Scenario – States, undertaking. Ministry of Mines website, www.mines.nic.in • The state is a major producer of hides and skins. Majority of the leather production is done in the Nellore region. • The government provides financial assistance in the form of investment grants to the extent of 30.0 per cent of cost of plant and machinery for small scale industries (SSI) and 20.0 per cent of cost of plant and machinery for other units, subject to a ceiling of US$ Leather 120,000 for technology upgradation or/and expansion. • The state government plans to promote a few more leather clusters across the state for providing basic infrastructure for artisans and small and medium enterprises. • Moreover, the government is also planning to set up a leather complex in Kothapatnam, close to Krishnapatnam port and 160 km from Chennai and Ennore Ports.

• The state produces a wide array of precious and semi-precious stones as well as pearls. • Gold is mostly available across Anantpur, Chittoor and Kurnool districts of the state. • During the year 2009-10, the government has identified new gold deposit areas in the Gems and Jewellery northern part of Ramagiri-Penakacherla of Anantapur district • Diamond is mostly found at Cuddapah, Anantapur, Kurnool, Krishna, Godavari and Guntur districts. • Being a major tourist hub in the country, the state is making rapid strides in the hospitality industry. • With various corporates planning to have their footprint in the state, it will help in the development of the industry. • The industry will get a further boost once the central government finalises the new capital Hospitality, leisure and for the state. entertainment • In order to support the growth of the industry, APTDC is planning to implement various projects which include the introduction of cottages, jetties, houseboats in Krishna and Godavari rivers. • Some of the other projects of the corporation include the Visakhapatnam-Bheemli beach corridor project, the Kalingapatnam temple circuit, a beach resort at Chintapalli in Vizianagaram and a budget hotel at Arasavalli, etc.

• The state also produces steel from its Visakhapatnam Steel Plant • The company exports steel products to Japan, Germany, United States, Singapore, Dubai, Australia and various South American countries Steel • Apart from the plant, the government is planning to set up a public sector steel plant (Steel Authority of India) in Kadapa. • The company will examine the feasibility of establishing an integrated steel plant in the location within six months from the appointed date.

APTDC: Andhra Pradesh Tourism Development Corporation Andhra Pradesh is the first state in the country to have enacted the Industrial Single Window Clearance Act No 17 of 2002. The Act made it compulsory for new industries to register with the single-window to obtain clearances quickly. It also simplified procedures for getting industrial clearances.

Committees were constituted at district and state levels to communicate to the applicant the status of their clearances. It has set time slots for issuing clearances and incorporated a provision for deemed approval after the expiry of the time limit.

District level committees can clear investments not exceeding US$ 219,442. State level committees can clear those exceeding US$ 219,442.

Above the district and state level committees is an empowered committee headed by the Chief Secretary of the state government, who reviews and monitors disposal of applications. Overall, a State Board under the chairmanship of the Chief Minister oversees the progress of the scheme.

The maximum time taken to issue clearance of applications at all stages is 45 days. Violation of the provisions of the Act made either through self-assessment or otherwise would invite a penalty of US$ 109 in the first instance and US$ 219 in the second instance. Corporations under Industries and Commerce Department

Andhra Pradesh Industrial Development Corporation (APIDC)

Andhra Pradesh Industrial Infrastructure Corporation (APIIC)

Andhra Pradesh Mineral Development Corporation (APMDC)

Andhra Pradesh State Finance Corporation (APSFC)

Andhra Pradesh State Trading Corporation (APSTC)

Andhra Pradesh State Handloom Weavers Co-operative Society Limited (APCO)

Leather Industries Development Corporation of Andhra Pradesh (LIDCAP)

Andhra Pradesh Handicrafts Development Corporation (APHDC)

Andhra Pradesh Khadi & Village Industries Board (KVIB) Agency Contact information

6th Floor, Parisrama Bhavan Fateh Maidan Road, Basheerbagh Hyderabad - 500 004 Andhra Pradesh Industrial Infrastructure Phone: 91-40-2323 7622, 2321 2798 Corporation Fax: 91-40-2323 3393, 2323 3251 E-mail: [email protected] Website: www.apiic.in

Industries and Commerce Department 2nd Floor, D Block, Room No-348A Secretariat Hyderabad - 500022 Department of Industries and Commerce Phone: 91-040-23454449 Fax: 91-040-23452985 E-mail: [email protected] Website: http://industriesportal.apcgg.gov.in/ S No Approvals and clearances required Respective departments of state Estimated time

Registration, Industrial Entrepreneurs 1 Registrar of Firms 7 days Memorandum (IEM), Industrial Licenses

7 days for up to Allotment of Land/Shed in Industrial Andhra Pradesh Industrial 1,000 sq m 2 Estates or Industrial Areas Development Corporation 21 days for above 1,000 sq m

Acquisition and alienation of government Chief Commissioner of Land 3 45 days lands Administration (CCLA)

Panchayat Raj Department

Urban Development Authority 4 Site and Building Plan Approval 7 days Town and Country Planning

Municipality

Urban Development Authority

5 Change of land use Town and Country Planning 45 days

Municipality

Source: Commissionerate of Industries, Government of Andhra Pradesh S No Approvals and clearances required Respective departments of state Estimated time

Green 7 days Consent for establishment 6 Orange AP Pollution Control Board 21 days under Pollution Control Red 45 days

Green 7 days Consent for operation 7 Orange AP Pollution Control Board 21 days under Pollution Control Red 45 days

8 No-Objection Certificate for Fire Safety Fire Services Department 15 days

9 Permission for Establishment of Distillery 30 days

Licence for possession and use of 10 7 days Rectified Spirit Excise Department Licence for possession and use of 11 7 days Denatured Spirit

12 VAT/CST registration Commercial Taxes Department 7 days

Source: Commissionerate of Industries, Government of Andhra Pradesh S No Approvals and clearances required Respective departments of state Estimated time

13 Power feasibility 7 days Power distribution companies 14 Power connection 23 days

15 Approval of factory plans 7 days Factories department 16 Factory license 7 days

17 Sanction of water supply Vijayawada Municipal Corporation, 7 days Visakhapatnam Industrial Water 18 Water connection Supply Company 23 days

Permission to draw water from rivers 19 Irrigation department 30 days and/or public tanks

Source: Commissionerate of Industries, Government of Andhra Pradesh Parameter Cost estimate

Land price (US$ per sq m) 19.8 to 127.6

Labour cost (minimum wages per day) US$ 1.2 to US$ 7.9

Commercial Lease rent (US cents per sq ft per month) 15.2 to 112.2

Commercial: 8.0 to 18.7 Electricity (US cents per kWh) Industrial: 7.6 to 12.5

Residential rent (US cents per sq ft per month) 4.7 to 29.4

Five-star hotel room (US$ per night) 60 to 92

Industrial (Visakhapatnam): 0.37 per 1,000 litres Water cost (US$) *Residential: 2.58 to 3.68 per annum from Household Service Connections

Source: Vijayawada Municipal Corporation, Visakhapatnam Industrial Water Supply Company, Property Sites, News articles, Travel Sites Andhra Pradesh Solar Power Policy - 2012

Objectives • To encourage, develop and promote solar power generation in the state with a view to meet growing demand for power in an environmentally and economically sustainable manner. • To attract investment in the state for the establishment of solar power plants. Read more

Electronic Hardware Policy 2012-2017

Objective • To provide special incentives and facilities for the electronic hardware sector in line with the present ICT policy. The policy would cover areas such as industrial electronics, communication & broadcast equipment, computers & peripherals, and strategic electronics & components (semiconductors, solar & displays).

Read more

Food Processing Policy 2010-2015

• To provide a special focus to the food processing industry by extending the benefits for five years Objective from April 2010 to March 2015. The policy would cover areas such as horticulture, agriculture, animal husbandry, fisheries, agro food processing industries and allied industries. Read more Information and Communications Technology (ICT) Policy 2010-15

Objective To make Andhra Pradesh one of the fore runners in the IT sector in the country The objective would be achieved through the following initiatives: • Provision of congenial, industry friendly and proactive climate for IT companies to locate, grow and sustain their operations in a most competitive and hassle-free environment. • Creation of employment opportunities for the educated youth of all sections of the society across regions. • Achieving higher levels of exports, resulting in enhanced productivity and augmentation of GSDP • To spread IT to every nook and corner of the state. • Leverage IT as a tool for the socioeconomic development of the state. Read more

Industrial Investment Promotion Policy (IIPP) 2010-2015

Objective • To build a strong and vibrant industrial economy that spins off large capital formation in the state and advances inclusive development of all sections of the population and industry that creates increasing employment opportunities, and raises wage incomes to higher levels through skill upgradation to improve the quality of life of citizens of the state. Read more Tourism Policy 2010

• To position the state competitively for attracting private sector investments in the tourism and Objectives hospitality sectors. • To target incentives to the private sector better as per the state government's priorities in terms of geographical areas and tourism products. • To focus on maximum generation of employment in the sector by the development of human resources through capacity building. Read more

Biotechnology Policy 2001

Objective • To undertake a detailed inventory evaluation of bio-resources in the state to encourage research and development (R&D), develop high quality infrastructure and provide special incentives to the biotech industry. Read more 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 India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with IBEF.

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