GOLKONDA FORT NEAR HYDERABAD,

TELANGANA

PHARMACEUTICAL HUB OF INDIA

For updated information, please visit www.ibef.org April 2018 Table of Content

Executive Summary .…………….….…….3

Advantage State …...…..………………….4

Telangana Vision ………………………….5

Telangana – An Introduction …….……….6

Budget 2018-19 …………..………...……16

Infrastructure Status ...... 17

Business Opportunities ……..………...... 36

Doing Business in Telangana ………...….50

State Acts & Policies …….………...... 51 EXECUTIVE SUMMARY

Economic growth . At current prices, Telangana’s GSDP was estimated at US$ 113.68 billion during 2017-18. driven 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 2016-17, the value of IT exports from Hyderabad – The IT the state of Telangana was recorded at US$ 13.27 billion. The launch of T-Hub in November 2015 has hub of the state created most energetic community of entrepreneurs across the world for boosting the success stories of the start-ups in India.

Growth in annual . In Budget 2018-19, total expenditure of the state increased 22.42 per cent to Rs 1,74,48,228.34 lakh (US$ budget 27.07 billion).^

Promoting tourism & . In September 2017, Telangana received eight national awards for promotion of tourism and cleanliness. Out of these eight awards, five were won by the state’s tourism department while the rest were awarded to public- historical past private enterprises.

Note: ^From Revised Estimate of 2017-18 Source: Telangana State Statistical Year book,2015, MOSPI, Budget 2018-19

3 TELANGANA For updated information, please visit www.ibef.org ADVANTAGE: TELANGANA

March 2018 2018E Growing economy and improving infrastructure Rich labour pool

Installed . Telangana’s GSDP grew at a CAGR of 12.60 per cent . Majority of the prominent educational universities and power between 2011-12 and 2017-18. institutions Telangana are located in Hyderabad. These Installed capacity: . The state government plans to build more airports in institutions provides a massive pool of labour which power acts as a catalyst in the development of the state. capacity: 15,087.13 the state to improve connectivity. . The state government has announced scholarships to 17,000 MW MW attract more youth to these institutions.

Advantage Telangana Availability of Policy and readymade capital institutional support

. Telangana accounts for easy access to capital along . Under the Department of Information Technology, with infrastructure which is benefiting the state. Electronics & Communications, the introduced three new policies in 2016, . Majority of the multinational companies holds namely, Telangana IT Policy, 2016, Telangana production base in Hyderabad. Electronics Policy, 2016 and Telangana Innovation . Information technology and pharmaceutical sectors are Policy, 2016. the fastest growing sector of the state and driving the economic development of Telangana.

Note: E - Estimate Source: Telangana State Statistical Year Book, 2015, GSDP: Gross State Domestic Product, Central Electricity Authority

4 TELANGANA For updated information, please visit www.ibef.org TELANGANA VISION

. To develop Hyderabad as a slum free . In next three years, Telangana is city. expected to be developed as a . Effective implementation of welfare power surplus state schemes.

Quality of life of . Plans to announce industrial policy to people Power . Ensure people centric, encourage investments in state. transparent and corruption free . Setting up of faster clearances, a development. single window system. Promoting . To take steps to eradicate investments Governance corruption. Vision . No negotiation on maintaining . Waiver of agricultural loans up to Agriculture Law & order law & order in the state. Rs 1 lakh. . Encouraging people friendly . Technological advancement in police officials. agriculture Promoting research Infrastructure . Installing CCTV cameras for . Government to encourage research better vigilance. in agricultural universities.

. Aim to make Telangana the Seed . Hyderabad to have most advanced Bowl of India. Telangana is highly infrastructure facilities. suitable for the growth of seeds. . To have two new airports in . Endorsing greenhouse technology Hyderabad, near Shamirpet, and pilot projects. Jawaharnagar and Ghatkesar.

Source: Telangana Government

5 TELANGANA For updated information, please visit www.ibef.org TELANGANA FACT FILE

. Hyderabad, Secunderabad and Warangal are the key cities in the state.

Parameters Telangana

Capital Hyderabad

Geographical area (lakh sq. km) 114,840

Source: TS Portal Administrative districts (No) 31 . In June 2014, Telangana was introduced as the 29th state of the India, Hyderabad is the capital of the state. Population density (persons per sq. km) 312

. Telangana is situated on the Deccan Plateau. It is home to three Total population (million) 35.2 national parks and eight wildlife sanctuaries.

. It is surrounded by Andhra Pradesh from the south and east end, Male population (million) 17.7 Maharashtra and Karnataka from the west, and Odisha and Chhattisgarh from the north end. Female population (million) 17.5 . Telugu is the generally spoken language in the state. Hindi, Urdu and Sex ratio (females per 1,000 males) 988 English are also usually spoken.

Literacy rate (%) 66.5

Source: Population Census 2011, Telangana State Statistical Abstract, May 2015

6 TELANGANA For updated information, please visit www.ibef.org TELANGANA IN FIGURES … (1/2)

Parameter Telangana All states Source

Economy 2017-18 2017-18

Directorate of Economics & Statistics of Telangana, GSDP as a percentage of all states’ GSDP 4.38 100.0 Central Statistics Office

Directorate of Economics & Statistics of Telangana, GSDP growth rate (%) 14.1 9.8 Central Statistics Office

Directorate of Economics & Statistics of Telangana, Per capita GSDP (US$) 3,000.93 1,975.05 Central Statistics Office

Physical Infrastructure

Installed power capacity (MW) 15,087.13 344,002.39 Central Electricity Authority, as of March 2018

1 Telecom Regulatory Authority of India, as of Wireless subscribers (No) 84,639,369 1,156,867,852 February 2018

NHAI, Roads and Building Department- National highway length (km) 3,786 122,432 Government of India, as of February 2018

2 Airports (No) 1 125 Airports Authority of India

Note: 1For undivided State, 2International operational airport

7 TELANGANA For updated information, please visit www.ibef.org 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

1 Department of Industrial Policy & Promotion, April FDI equity inflows (US$ billion) 14.524 367.932 2000 to December 2017

Industrial Infrastructure

DEA , Ministry of Finance, Government of India, PPP projects Completed & Operational (No) 14 740 December 2017

Notified as of September 2017, Ministry of Operational SEZs (No) 30 222 Commerce & Industry, Department of Commerce, December 2017

Note: 1Including Andhra Pradesh, PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System

8 TELANGANA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – GSDP

GSDP of Telangana at current prices GSDP per capita of Telangana at current prices

120.00 CAGR (in Rs) 12.60% 8.00 3500.00 CAGR (in Rs) 11.49% 250000

7.00 3000.00

100.00 200000

7.33

113.68 6.00

2500.00

6.42

80.00

95.69 3,000.93

5.00

150000

5.63

2000.00

86.06

82.72 5.06

60.00 4.00 2,551.40

1,93,410.15

74.96

74.64

73.75

4.52

2,317.58

1500.00

2,249.98 100000

1,71,173.18 4.02

3.00 2,100.78

2,050.53 2,046.47

40.00 3.59 1000.00 1,51,708.95

2.00 1,37,586.08

1,24,057.03 50000 20.00

1.00 500.00 1,11,430.08 1,00,732.58

0.00 0.00 0.00 0

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

US$ billion Rs trillion US$ Rs

. At current prices, Telangana’s GSDP stood at Rs 7.33 trillion . Telangana’s per capita GSDP^ increased to Rs 1,93,410.15 (US$ 113.68 billion) in 2017-18. (US$ 3,000.93) during 2017-18 from Rs 1,00,732.58 (US$ 2,100.78) in 2011-12. . Between 2011-12 and 2017-18, GSDP of the state grew at a CAGR of 12.60 per cent. . Average per capita GSDP rose at a CAGR of 11.49 per cent between 2011-12 and 2017-18.

Source: Telangana Socio Economic Outlook 2018

9 TELANGANA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – NSDP

NSDP of Telangana at current prices NSDP per capita of Telangana at current prices

120.00 CAGR (in Rs) 12.66% 7.00 3000 200000

CAGR (in Rs) 11.55%

180000

6.00

100.00 6.65 2500

160000

5.80 5.00

2,723.57 140000

103.17

80.00

2000

5.08

120000

1,75,534.00 86.50

4.00

2,306.36

4.56

60.00 77.66 1500 100000

1,54,734.00

74.62

2,091.43

4.08

2,029.50

3.00

67.81

67.48

66.86

1,900.33

3.64

1,855.04 1,853.92 1,36,905.00 80000

40.00 3.25

1000 1,24,104.00

2.00 60000

1,12,162.00 1,01,007.00 91,121.00 40000 20.00 1.00 500 20000 0.00 0.00

0 0

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 US$ billion Rs trillion US$ Rs . At current prices, Telangana’s net state domestic product . Telangana’s per capita NSDP grew from Rs 91,121.00 (US$ (NSDP) was estimated at Rs 6.65 trillion (US$ 103.17 billion) in 1,900.33) during 2011-12 to Rs 1,75,534.00 (US$ 2,723.57) 2017-18. over 2017-18. . Between 2011-12 and 2017-18, the average annual NSDP . Average per capita NSDP increased at a CAGR of 11.55 per growth rate was about 12.66 per cent. cent between 2011-12 and 2017-18.

Source: Telangana Socio Economic Outlook 2018

10 TELANGANA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP

. At a CAGR of 15.99 per cent, tertiary has been the fastest growing Percentage distribution of GSDP (Current prices) sector in the state between 2011-12 and 2017-18.

. The primary sector increased at a CAGR of 10.59 per cent between 100% 2011-12 and 2017-18, followed by secondary sector (CAGR of 2.63 49.41% CAGR (in Rs) 59.03% per cent). 90%

. In 2017-18, the tertiary sector contributed 59.03 per cent to the 80% 15.99% state’s GSDP at current prices. It was followed by the primary sector (16.40 per cent) and secondary sector (14.80 per cent). 70%

60%

50% 25.81% 40% 2.63% 30% 14.80%

20% 18.27% 16.40% 10% 10.59% 0% 2011-12 2017-18

Primary Sector Secondary Sector Tertiary Sector

Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office

11 TELANGANA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION

. During 2017-18, 606,000 hectares of area was under cultivation of Annual area & production of key crops (2017-18) maize, whereas pulses were cultivated over an area of 534,000 hectares, in the state. Annual Area Annual Production Crop (‘000 hectare) (‘000 tonnes) . In 2017-18, Telangana produced 6.56 million tonnes and 513,000 tonnes of rice and pulses, respectively. 2017-18 2017-18 . The state government has proposed an amount of US$ 2.45 billion in Rice 1,972 6,558 State Budget 2018-19 for Agriculture and Marketing.

. Production of fruits, vegetables and plantation crops reach 1.77 Cereals & millets 2,653 8,988 million tonnes, 1.52 million tonnes and 1.31 million tonnes, Pulses 534 513 respectively, in 2017-18*. Fruits 164.83 1765.90

Cotton 1903 43.23

Production of horticulture crops (million MT)

2.00

1.50

1.77

1.65

1.00 1.52

1.44

1.31 1.20 0.50

0.00 Production of Fruits Production of Production of Vegetables Plantation Crops 2016-17 2017-18*

Note: 2017-18* - As per 1st advance estimates Source: Telangana Socio Economic Outlook 2018, Telangana State Budget 2016-17

12 TELANGANA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – INVESTMENTS & EXPORTS

. In January 2018, the state government held talks with Japan Investment intentions in terms of IEMs filed, LOIs/DILs issued International Cooperation Agency (JICA) and South Korea for in Telangana investments in the second phase of Hyderabad Metro, Pharma City, 3500

Kakatiya Textile Park.

. Additionally, a legal framework has been provided in the policy to 3000 make the existing industries more competitive, which is expected to

boost the quality of goods manufactured in the state. 3,294.06 2500 . Telangana is one of the leading exporters of IT services in India. In

2016-17, the overall IT exports from Telangana were valued at US$

13.27 billion. 2000

2,503.71

. According to the Department of Industrial Policy & Promotion (DIPP), 2,267.90

cumulative FDI inflows(1) in Telangana from April 2000 to December 1500 2,090.90

2017, totalled US$ 14.524 billion.

1,822.20

. In January 2017, the state government signed MOUs for several 1,591.43 1000

investments and strategic partnerships, worth US$ 503.04 million. 1,307.60

The investment also includes setting up of Life Sciences

500 1,032.70 Infrastructure Fund in the state.

176 132 132 134 117 145 139 114 174.24 . The number of investment intentions filed were 10 and the proposed 10 0 investments amounted to Rs 1,123 crore (US$ 174.24 million) till

February 2018.

2010 2011 2012 2013 2014 2015 2016 2017 2018*

Number of Investment Intentions Proposed Investments (US$ Million)

Note: (1) Including Andhra Pradesh, IEMs – Industrial Entrepreneur Memoranda, LOIs – Letters of Intent, DILs – Direct Industrial Licences, 2018* - up to February 2018 Source: Department of Industrial Policy & Promotion, Government of India, Ministry of Commerce & Industry, Government of India

13 TELANGANA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – IRRIGATION....(1/2)

. The major sources for water for irrigation purpose in the state are Irrigation projects status (as of June 2017) Godavari and Krishna Rivers & branches. Telangana also uses water from tanks & ponds for irrigation. Major irrigation projects Numbers

. During 2015-16, share of Telangana in the water of Godavari & Completed 13 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 developed over Completed 37 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 Gross Irrigated Area, Net Irrigated Area (‘000 ha) state.

. In Telangana, every year around 9,000 tanks are being taken up for 2014-15 2015-16 their restoration under Mission Kakatiya and during 2016-17, the Gross Irrigated Area 2,529 2,028 restoration of the tanks was done with the people’s active participation. Moreover, the phase-III of restoration is expected to be Net Irrigated Area 1,726 1,486 initiated soon. Irrigation Intensity . In State Budget 2017-18, it was proposed to take up Manair River Front Project at an estimated cost of US$ 74.58 million. 2014-15 1.47

2015-16 (Kharif) 1.01

Source: Irrigation and CAD Department, Government of Telangana

14 TELANGANA For updated information, please visit www.ibef.org 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 – 2018-19 (US$ million)

Projects Investment

Major and medium irrigation 3,396.57

Minor irrigation 425.70

C.A.D 38.94

Flood control and damage 17.76

Source: Telangana State Portal

15 TELANGANA For updated information, please visit www.ibef.org BUDGET 2018-19

. In 2018-19, the overall budgeted allocation amounted to US$ 27.07 Annual Budget (Estimates in US$ billion) billion for various sectors of Telangana. The allocation of funds was about 22.42 per cent higher in comparison with the revised estimates Sector 2018-19 of 2017-18. Agriculture, allied activities and rural 3.23 development

Irrigation 3.31

Power 0.59

Social Services 7.06

Transport 0.69

Others (Industries, General Economic 1.38 Services etc)

Source: Telangana State Portal, Department of Finance

16 TELANGANA For updated information, please visit www.ibef.org 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 February 2018, the state was home to 18 national highways with total length of 3,786 km. The overall road length for Telangana state was around 28,290 km as of 2016-2017. . The density of notified national highways in Telangana is 2.90km/100 sq. km against the nation wide average of 2.84 km/ 100sq. Km. . 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 has taken up widening of 139 roads from single lane to double lane. Source: Maps of India . An allocation of Rs 5,575 crore (US$ 8.65 billion) was made in State Budget 2018-19 for Telangana roads and buildings Department. . The state government started a process to monetise toll-operate- Road type Road length (km) transfer asset projects. The process to monetise the Nehru Outer Ring Road (NORR) has also been initiated. The project is expected National highways 3,786* generate a significant amount of extra-budgetary resources that can be used for other infrastructure assets. State highways 2,731

Major district roads 13,058

Other district roads 9,161

Total 28,290

Note: *AS of February 2018 Source: Roads & Buildings Department, Government of Telangana, Budget 2016-17

17 TELANGANA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – RAILWAYS

. Telangana is well-connected to other parts of the country through the rail network. As of December 2016, the state had a railway network of 1,736.67 km. . For construction of new railway lines in the state, the government proposed an investment of US$ 3.10 million in 2017-18. . A rapid metro transit system is being implemented in the state through public private partnership (PPP) mode. The project is expected to be completed by November 2018, 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. . The project is made up of two phases. The first phase includes 3 lines covering over 66 kilometres. The state government has proposed 83 km in five stretches for the second phase. . In November 2017, the Prime Minister inaugurated a 30 kilometre long phase of the metro rail project, which is a part of phase 1 of the project. . Work on two stretches is in progress and these are expected to be commissioned by June 2018.

Source: Maps of India

Source: Telangana State Statistical Yearbook 2015, Telangana Economic Survey, News articles

18 TELANGANA For updated information, please visit www.ibef.org 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$ 3.09 million in 2017-18. The Government of Telangana sanctioned an amount of US$ 2.02 million to the Telangana Aviation Corporation.

. In October 2017, GMR group decided expansion of Rajiv Gandhi international airport. The airport currently has a capacity of 25 million passengers and handled 17 million passengers in 2016. To meet the growing needs, capacity expansion in the form of another runway and a new terminal will be taken up by the group. The project is expected to be completed within the next three years.

Source: Telangana State Statistical Yearbook 2015, State Budget 2016-17

19 TELANGANA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – AIRPORTS … (2/2)

. Passenger traffic at Hyderabad airport increased by 20.26 per cent Hyderabad aircraft movement (nos.) year-on-year to 18.16 million in FY18.

. Aircraft movement at Hyderabad airport increased by 14.43 per cent 1,60,000 1,40,000

year-on-year to 1,49,581 in FY18. 1,20,000

1,00,000

. As per statistics of Airports Authority of India, freight traffic at

1,49,581

80,000

Hyderabad airport increased by 10.10 per cent year-on-year to 60,000 1,30,713

99,013 94,057 134.14 million tonnes in FY18. 1,05,772

40,000 90,151

87,741 82,658 20,000 80,016

0

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Hyderabad passenger traffic (million)

20.00

15.00

18.16

10.00

15.10

5.00 12.38

10.40

8.65

8.44

8.30

7.60 6.51

0.00

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Source: Airport Authority of India

20 TELANGANA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – POWER

. TSERC is the prime authority for power generation in Telangana. . The state is aiming to achieve a power generation capacity of 28 Telangana Power Generation Corporation Limited (TSGENCO) and GW. In November 2017, the state government announced it is Transmission Corporation of Telangana Limited (TSTRANCO) are planning to invest around US$ 14 billion to make the state a ‘power the generation and transmission entities of the state. surplus’ state.

. As of March 2018, the total installed power capacity of Telangana . In April 2017, ReNew Power, an Indian renewable independent state was 15,087.13 MW. Out of this, 7,572.65 MW was contributed power producer, commissioned the construction of the largest PV by state utilities, 5,399.63 MW by private utilities and 2,114.85 MW plant in Telangana with a capacity of 143 MW. by central utilities. Thermal power was the largest contributor in the state’s total installed capacity with 8,828.95 MW, followed by hydropower with a contribution of 2,449.93 MW, renewable energy with 3,659.52 MW and nuclear power with 148.73 MW.

. The state holds two power distribution companies which are Southern Power Distribution Company of Telangana State Limited (TSSPDCL) and Northern Power Distribution Company of Telangana Limited (TSNPDCL).

. As of June 2017, three thermal power projects, with a combined capacity of 2,680 MW are under construction in the state. Also, Renovation and Modernisation (R&M) of two hydro power projects is under implementation and is expected to be completed by 2018-19.

. Under State Budget 2018-19, an amount of Rs 5,650 crore (US$ 876.65 million) was allocated for the power sector.

Source: Central Electricity Authority, State Budget 2018-19, Telangana State Statistical Abstract 2017

21 TELANGANA For updated information, please visit www.ibef.org KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS…(1/2)

Project Cost Project name Sector Type of PPP Stage (US$ million)

Hyderabad Multi-Modal Suburban Railway track, tunnel, Build-Own-Operate-Transfer (BOOT) 58.7 Under construction Transportation Project - Phase II viaducts, bridges

Roadways between Hyderabad - Roads and bridges Build-Operate-Transfer (BOT) 103.9 Under construction Bangalore Section

Road Upgradation (Kadtal-Armur NH- Build-Operate-Transfer (BOT) Roads and bridges 42.0 Operational 7) Project Annuity

Road Upgradation (Islam Nagar-Kadtal Build-Operate-Transfer (BOT) Roads and bridges 79.2 Operational NH-7) Project Annuity

Road Upgradation (Armur-Adloor Roads and bridges Build-Operate-Transfer (BOT) 58.3 Operational Yellareddy) Project

Municipal Solid Waste to Energy in Solid waste Hyderabad (Hyderabad, Build-Own-Operate-Transfer (BOOT) 13.0 Operational management Gadamaguda, R.R.District)

Municipal Solid Waste to Energy in Solid waste Build-Own-Operate-Transfer (BOOT) 5.2 Operational Hyderabad management

Integrated Solid Waste Management Solid waste Design-Build-Finance-Operate- 137.0 Under construction (3800 TPD) for Hyderabad management Transfer (DBFOT)

Hyderabad-Yadgiri Four-Lane NH-202 Design-Build-Finance-Operate- Roads and bridges 68.4 Operational Road Project Transfer (DBFOT)

Hyderabad International Airport Airports Build-Own-Operate-Transfer (BOOT) 378.6 Operational

Note: NA – Not Available Source: Ministry of Commerce & Industry, Department of Commerce

22 TELANGANA For updated information, please visit www.ibef.org KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS…(2/2)

Project Cost Project name Sector Type of PPP Stage (US$ million)

Three Star Hotel at Madhapur, Tourism Build-Operate-Transfer (BOT) 0.8 Under construction Hyderabad

Multiplex & Shopping Mall at Tourism Build-Operate-Transfer (BOT) 4.1 Under construction Secunderabad

Common infrastructure HITEC City Cyberabad Hyderabad Not Available 68.7 Operational for industrial parks, SEZ

Golf Course At Naya Quilla Hyderabad Tourism Build-Operate-Transfer (BOT) 1.9 Under construction

Food Courts Project at Lower Tourism Build-Operate-Transfer (BOT) 1.1 Under construction Tankbund Road Hyderabad

Source: Ministry of Commerce & Industry, Department of Commerce

23 TELANGANA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: SEZs…(1/2)

. For the supervision & execution of SEZs in the state, Telangana Sector-wise operational SEZs in Telangana (December 2017) State Industrial Infrastructure Corporation is the concerned authority.

. In August 2017, a proposed electronic hardware SEZ got clearance IT/ITES from the State-level Expert Appraisal Committee (SEAC). The SEZ is 1 1 1 Biotech proposed to be set up over 339.75 acres in Maheshwaram at a cost 1 of US$ 18 million. 1 Gems & Jewellery 1 . As of December 2017, Telangana had 151 SEZs; of which, 30 are Aviation Sector 2 operational, 57 are notified & 64 are formally approved Semiconductors

. As of September 2017, the total area of notified SEZs in Telangana Aerospace Engineering stood at 1,992.28 hectares. Industries 22 Pharmaceuticals

Electronic hardware and software

Source: Ministry of Commerce & Industry, Government of India

24 TELANGANA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: SEZs…(2/2)

Sector-wise Operational SEZs in Telangana Sector-wise Operational SEZs in Telangana No of No of Industry Name of SEZs Industry Name of SEZs SEZs SEZs . DivyaSree NSL Infrastructure Private APIIC Ltd Biotechnology 2 Limited, RR Dist. Shantha Biotechnics Pvt. Ltd. . DLF Commercial Developers Ltd Hyderabad Gems SEZ Ltd, RR Gachibowli, Gems & jewellery 1 . APIIC Ltd – Nanakramguda Dist . Wipro Limited, Gopannapally M/s GMR Hyderabad Aviation . Sundew Properties, Madhapur Aviation 1 SEZ Limited, Hyderabad . Stargaze Properties Pvt Ltd, RR Dist, . Serene Properties, Ghatkesar FAB City SPV (India) Pvt Ltd, RR Semiconductors 1 . JT Holdings Pvt Ltd, RR Dist. Dist . Infosys Limited, Pocharam Aerospace M/s. APIIC Ltd., Adibatla, Ibrahim . Tech Mahindra Limited (Satyam Computers), 1 Madhapur, engineering patnam, R .R. Dist, IT/ITeS . Tech Mahindra Limited (Satyam Computers), 22 Bahadurpally Pharmaceuticals APIIC Pharma SEZ - Jedcherla 1 . Indu Techzone Pvt Ltd, Mamidipally . Lanco Hills Technology, Manikonda Electronic Radiant Corporation Private . Wipro Limited, Manikonda Hardware and 1 Limited . L&T Phoenix Infoparks, RR Dist Software . Navayuga Legala Estates Pvt Ltd, Serilingampally . Tata Consultancy Services Limited , RR Dist. . Hill County SEZ Private Limited , Bachupally . CMC Limited, RR Dist . Mantri Developers Pvt. Ltd. . APIIC Ltd – Madikonda . NSL SEZ(Hyd) Pvt. Ltd. , Secunderabad

Source: Ministry of Commerce & Industry, Government of India

25 TELANGANA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – TELECOM

. According to the Telecom Regulatory Authority of India (TRAI), Telecom Infrastructure (As of December 2017)1 undivided Andhra Pradesh had nearly 84.64 million wireless subscribers and 1.49 million wireline subscribers as of January Wireless subscribers 84,639,369 2018. Wireline subscribers 1,492,315 . As of March 2017, there were 5,788 post offices in the state. Tele density (in %) 96.03 . Airtel launched 4G services in the states with special focus on Hyderabad. Other players such as BSNL & Aircel are also entering in the 4G business of the state. Performance status of NOFN project (as of December 2017)

. In November 2016, Telangana State Road Transport Corporation, in No. of GPs in Phase-I 2,017 conjugation with Airtel, announced Wi-Fi services for passengers of

metro luxury buses. Pipe laid (kms.) 4,538 . In December 2016, telecom company ‘Idea’ announced investment of US$ 14.7 million for developing 4G infrastructure in Telangana. Cable laid (kms.) 4,488 . In order to provide broadband services to consumers in the state, Bharat Sanchar Nigam Ltd. (BSNL) is tying up with local cable GPs for which cable laid 2,038 operators. As of May 2017, the company already tied up with

operators in Warangal and Karimnagar. No. of GPs Lit 206

Note: 1 For undivided state Source: Telecom Regulatory Authority of India, Ministry of Communications & Information Technology, Telangana Statistical Yearbook – 2015

26 TELANGANA For updated information, please visit www.ibef.org SOCIAL INFRASTRUCTURE – EDUCATION … (1/3)

. Telangana’s share in educational institutions includes: Literacy rates (%) • 3 central universities located in Hyderabad: University of Hyderabad, English & Foreign Languages University & Maulana Literacy rate 66.5 Azad National Urdu University. Male literacy 74.9 • Technological institutes such as IIT, IIIT & NIT.

• Nalsar Law University, Indian School of Business as well as Female literacy 57.9 private institutes such as Symbiosis & TISS are located in the locality of Hyderabad. Year-wise Enrolment Details . Under State Budget 2018-19, allocations of Rs 10,830 crore (US$ 1.68 billion) and Rs 2,448 crore (US$ 379.83 million) were made for Enrolment No. of for school education and higher education, respectively. Year Total schools Class 6-10 Intermediate . As of March 2017, to create awareness & encourage the students, Strength the state government has decided to give US$ 2,974.86 as incentive 2015-16 182 72,283 13,897 86,180 to each of those students who have secured admission in the National Defence Academy & have successfully completed their 2016-17 192 86,827 21,049 1,07,876 training. 2017-18 194 91,919 33,711 1,25,630

Note: IT- Indian Institute of Technology, IIIT- International Institute of Information Technology, NIT- National Institute of Technology, Source: Census 2011, Telangana Socio-Economic Survey 2018, State Budget 2018-19, New Articles

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. As per budget 2017-18, the state government plans set up a total of Central funds released under Sarva Shiksha Abhiyan (US$ 119 new English medium residential schools in the state, which million) would provide quality education to more than 75,000 students. 140.0

. T-Hub, a start-up incubator launched by the Telangana Government 120.0 in March 2017, entered into an agreement with Anthill, a Hyderabad- based speed scaling platform for early-growth stage start-ups, to 133.13 100.0 launch an international start-up initiative, the Smart Women Angels Network (SWAN). 80.0

. 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- 60.0

18, with an aim to fill the vacant seats for teachers in various schools 68.35

and universities across the state. 40.0 62.27

. In June 2017, the National Institute of Tourism & Hospitality 20.0

Management (NITHM) signed a Memorandum of Understanding with 33.27 the Indian Overseas Bank Gachibowli Branch to facilitate education 0.0 loans to the students, without any guarantee or collateral security.

. Government of India released Rs 440.50 crore (US$ 68.35 million)

2014-15 2015-16 2016-17 under Sarva Shiksha Abhiyan for Telangana in 2017-18*. 2017-18*

Note: 2017-18* - up to december 26, 2017 Source: State Budget 2016-17, 2017-18

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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

29 TELANGANA For updated information, please visit www.ibef.org SOCIAL INFRASTRUCTURE – HEALTH … (1/2)

. Out of the country’s pharma production, Telangana accounted for Health infrastructure (as of May 7, 2018) one-third share; the state government plans to enhance it further by promoting a pharma city. Primary health centres 837 . Some of the initiatives by the state government to promote the healthcare sector are as follows: Sub centres 4,745

• To double the budget allocation for the healthcare sector from the Community health centres 96 present 2% & increase public health delivery services. Sub District hospitals 57 • Supporting private players who are willing to invest in the healthcare sector. District hospitals 15 • The government announced investment of US$ 16.58 billion for establishment of super speciality hospitals in the state, till 2019. The upcoming hospitals would be based on the same pattern as Budget allocation for health – US$ million Nizam's Institute of Medical Sciences (NIMS) of Hyderabad.

• In January 2017, Telangana tied up with Cerestra Advisors to set 2016-17 910.55 up country’s 1st Life Sciences Infra Fund, with a corpus of US$148.74 million. 2017-18 927.58 • The state government in February 2017, launched an initiative 2018-19 1,143.52 “RICH – Research & Innovation Circle” with an initial investment US$7.43 million to make research establishments such as CCMB, IICT, LV Prasad Eye Institute and ICRISAT. . As per State Budget 2018-19, the government is conducting free medical tests to prevent diseases. Also, the government will • In June 2017, the state government inaugurated the largest undertake free eye checkups and provide spectacles free of cost. dedicated medical devices park of the country. Companies such as Apollo Hospitals, Cyient Ltd. Sandor Medicaids, and 11 other companies have already been allocated 50 acres in the 250-acre park in Sultanpurof Sangareddy district.

Source: Department of Health, Medical & Family Welfare & National Health Mission, Government of Telangana, Telangana Budget 2016-17

30 TELANGANA For updated information, please visit www.ibef.org SOCIAL INFRASTRUCTURE – HEALTH … (2/2)

. The state government proposed an endowment of US$ 91.65 million Distribution of district hospitals, area hospitals & CHCs in for purchase or replacement of equipment, US$ 48.27 million for Telangana 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$ 890.77 million was allocated to Medical and Health Department for fulfilling the growing needs of healthcare during 2017-18. . In March 2017, Telangana was the best performing state pan India under Mission Indra Dhanush, since its implementation in December 2014. The mission aims at immunizing infants below two years of age and pregnant women against seven vaccine preventable diseases.

Primary hospitals in Telangana, by district

Hyderabad 85 Mehbubnagar 84 Warangal 75 Nalgonda 72 Adilabad 72 Karimnagar 71 Medak 67 Khamman 57 Ranga Reddy 52 Nizamabad 40 0 20 40 60 80 100

Note: CHC: Community Health Centres Source: Department of Health, Medical & Family Welfare & National Health Mission, Government of Telangana

31 TELANGANA For updated information, please visit www.ibef.org INDUSTRIAL INFRASTRUCTURE … (1/2)

. The secondary sector accounted for around 14.80 per cent share in . CETPs at Jeedimetla and Patancheru and TSDF at Dundigal under overall GVA of the state during 2017-18. In the State Budget 2018- Jeedimetla Zone are established by the Government. TSIIC has 19, the Government of Telangana proposed an investment of Rs recognised 150 industrial parks in 10 districts having land of about 1,286 crore (US$ 199.53 million) for industry and commerce. 74,133.18 acres with 13,165 units (enterprises). Under TSIIC, for the execution and monitoring of Infrastructure projects in the state, the . The Telangana Government plans to encourage an industrial government sanctioned an investment of US$ 1.65 million. 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 Distribution of industrial parks in Telangana 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. . These clearances have generated an employment potential of 120 thousand during 2015-16 in the state. Across 100 approvals from 1,609 units are associated with the medium & large industrial units and have generated the employment potential of around 34 thousand with an investment of US$ 1.29 billion. . Further, for establishing three Aerospace parks in the state, the state government has been depicting various proposals out of which the construction work of NIMZ phase-I is projected to be accomplished during 2016-17.

Note: CETP- Common Effluent Treatment Plants, TSDF- Treatment Storage Disposal Facility, TSIIC-Telangana State Industrial Infrastructure Corporation Source: Telangana State Statistical Year Book, 2015, Economic Survey

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Industrial Parks in Telangana

Industrial park name No of plots No of sheds Vacant area (sq. m) Proposed industries

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

Aerospace, solar equipment, Shamshabad 376 11 2,098,571 electronic hardware

Warangal 57 1 101,874 IT & ITeS, general

Prime Minister's Employment Generation Programme (PMEGP) schemes in Telangana

Margin money Margin money Estimated employment Number of Year subsidy released – US$ subsidy utilised – US$ generated projects assisted million million (no. of persons)

2014-15 3.24 3.13 604 6,604

2015-16 3.20 3.39 660 7,761

2016-17 2.99 3.82 664 6,445

2017-18* -0.31 0.18 934 304

Note: (1) As of July, 2015, (2)As of June 2016, 2017-18* - Up to January 2018 Source: Telangana State Industrial Infrastructure Corporation (TSIIC), Ministry of Micro, Small and Medium Enterprises

33 TELANGANA For updated information, please visit www.ibef.org AMRUT AND SMART CITIES … (1/2)

. As of January 2018, 2 cities of Telangana namely Karimnagar and Warangal are to be developed as smart cities.

. 12 cities of the Telangana state have also been 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 complete skyways in municipal areas.

34 TELANGANA For updated information, please visit www.ibef.org AMRUT AND SMART CITIES … (2/2)

Cities/towns in Telangana covered under AMRUT

S. No. City/town

1. Khammam

2. GHMC Karimnagar 3. Warangal Greater Warangal 4. Nizamabad

5. Karimnagar

6. Ramagundam

Source: Aranca Research 7. Mahbubnagar

8. Nalgonda Smart cities in Telangana 9. Adilabad S. No. City/town 10. Suryapet

Karimnagar 261,185 11. Miryalaguda

Greater 819,406 Warangal 12. Siddipet

35 TELANGANA For updated information, please visit www.ibef.org KEY INDUSTRIES

. The Information Technology (IT) and pharmaceuticals manufacturing Key industries in Telangana

sectors are catalysing the growth of Telangana’s economy. . Information technology Hyderabad is a major exporter of IT and ITeS products. Micro, small and medium enterprises are also strengthening the economic growth . Pharmaceuticals manufacturing of the state. Since June 2014, 13,671 MSME units have been . Tourism established in the state with a cumulative investment of Rs 7,130 crore (US$ 242.32 million) which generated employment of 1,45,512. . Textile

. The state government is in discussions with Steel Authority of India . Mines and minerals (SAIL) for establishing a steel factory comprising a deal of value US$ 5 billion on the Khammam-Warangal border. The state government Source: Socio Economic Outlook 2015, Government of Telangana, MSME- Micro, Small and Medium Enterprises plans to improve cotton rich Warangal, the second major city after Hyderabad, in all aspects particularly by establishing textile parks analogous to those in Tirupur in Tamil Nadu. The state aims to . Incentives for micro & small enterprises from the Government of setting up of industry across Telangana rather than limiting it to any Telangana: specific city. Incorporation and implementation of Telangana State • 100% reimbursement of stamp and transfer duty on the purchase Industrial Project Approval & Self Certification Systems is expected of land for industrial use to increase the investments in the state coming years. • 100% reimbursement of Stamp duty for lease of land/shed/ . As per state budget 2018-19, the work on establishment of a new buildings and also mortgages and hypothecations eco-pharma city is under process. Moreover, Government of India • 25% rebate in land cost limited to US$ 16.58 thousand in has also provided the state government with final approval for industrial estates/ industrial parks establishing a food park across the district of Khammam in coming years.

36 TELANGANA For updated information, please visit www.ibef.org KEY INDUSTRIES – INFORMATION TECHNOLOGY … (1/2)

. Information technology is one of the fastest growing sectors in IT & ITeS exports from Telangana (US$ billion) Telangana, contributing around 21% share in the total GSDP of the state. The central government has declared the realisation of an 2016-17 Information Technology Investment Region (ITIR) near Hyderabad. With the establishment of the ITIR, the government plans to Exports 12.74 generate 1.5 million direct and 5.3 million indirect jobs in the IT sector in the next five years. Telangana was the first state in India to initiate e-governance projects in India. IT Units 1,500 . IT and ITeS exports from Telangana grew 13.85 per cent compared to India’s export growth of 7.41 per cent in FY17. In FY17, Telangana’s exports of IT and ITeS reached US$ 12.74 billion. Source: Telangana socio-economic outlook 2017, IT/ITeS: Information Technology/Information Technology enabled Services Sector, (1) For 2015-16 . As of December 2017, out of the 274 formally approved IT SEZs in India, 22 are situated in Telangana. . Leading IT companies like Facebook, Google, IBM and Microsoft . Under the Department of Information Technology, Electronics & hold significant presence in Hyderabad. Continuous growth of these Communications, the Government of Telangana has introduced companies in conjunction with expansion plans is expected to Telangana IT Policy, 2016 in April 2016 for uplifting the performance generate 40,000 direct jobs along with indirect employment of of the sector in the state. several thousands. . As of September 2017. the State Government is setting up an . In 2016, the state government had signed an MoU to explore cloud, Information Technology hub in Nizamabad district with an machine learning with Microsoft Corporation, India, to improve investment of US$ 3.89 million. The necessary infrastructure and an healthcare and agriculture sectors in the state of Telangana. In incubation centre will be established in the hub. August 2017, Telangana adopted Microsoft cloud and became the . The state government has set a target of connecting its 23 million first state to use Artificial Intelligence for eye care screening for residents via internet, by 2018. children.

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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. The campus was inaugurated in 2016.

Microsoft . One of Microsoft Alum’s accelerator startup has tied up with Telangana Government to launch T- Wallet, enabling cashless payments for the residents.

. In August 2017, Government of Telangana has adopted Microsoft’s cloud based analytics to provide eye care screening for children.

Amazon . In September 2017, Amazon decided to open its largest fulfilment centre in Hyderabad. The centre is operational and is spread over an area of 400,000 sq ft.

. Facebook is a US-based online public networking provision company with set-ups in India. Facebook . In December 2016, the company decided that its first office in Asia will be in Hyderabad. Facebook India has designed a programme to strengthen Digital India and Skills India initiatives of the Government of India. Facebook’s Small Business Boost initiative was inaugurated by Telangana’s IT Minister K T Rama Rao in Hyderabad in August 2015. The programme aims to train more than half a million people by 2020. As of November 2017, the company has already trained more than 60,000 small businesses.

38 TELANGANA For updated information, please visit www.ibef.org KEY INDUSTRIES – PHARMACEUTICALS … (1/2)

. Hyderabad accounts for about 20% share in the total export of Funds for procurement for drugs & supplies under NRHM and pharma products from India. This is making Hyderabad as a centre RCMEH in Telangana – 2016-17 (US$ million) for the drug production.

. Telangana backs nearly one-third of complete pharma manufacture Approved Expenditure1 in the country.

. The state government declared establishing a Pharma City to enhance the pharmaceutical business in Telangana. 9.20 2.40 . 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 grew 17% in 2016-17, indicating the potential in Telangana.

. As per the socio-economic survey 2016-17, at a projected cost of US$ 2.0 billion, the Hyderabad Pharma City is being developed, which will be the first of its kind, smart ecosystem creating a new international benchmark for Sustainable Industrial cities.

. In June 2017, the state government has announced plans to set up a life sciences infrastructure fund with a corpus of US$ 148.73 million. The funds collected will be used to create a modular plug-and-play specialised infrastructure for pharmaceuticals, biotechnology and medical devices industry.

Source: Ministry Of Health And Family Welfare, Government of India ,State Portal & News articles, Telangana socio-economic outlook 2017

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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 2016-17, the company generated revenues of US$ 2,185.54 million. In Q1 FY18, the company recorded revenues of US$ 515.31 million

. Aurobindo Pharma was established in 1986 and turn into a public listed company in 1995. Aurobindo Pharma . 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 . In 2016-17, the company generated revenues of US$ 2,342.16 million. In H1 FY18, the company recorded revenues of US$ 1.2 billion

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. . In 2016-17, the company generated revenues of US$ 642.86 million. In H1 FY18, the company recorded revenues of US$ 266.2 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 2016-17, the company generated revenues of US$ 222.78 million. In H1 FY18, the company recorded revenues of US$ 119.9 million

40 TELANGANA For updated information, please visit www.ibef.org KEY INDUSTRIES – TOURISM … (1/3)

. Dynasties such as Sathavahanas, Kakatiyas, Chalukyas, . The state's archaeology department in March 2017, discovered & Qutubshahis, Mughals & Asafjahis have ruled the state of Telangana. unearthed the world's largest capstone weighing of 40 tonnes, after Hyderabad, the capital of Telangana, is highly popular for Charminar, excavating an ancient human burial site in Narmeata village in Golconda Fort, pearls & biryani. The Kakatiya track with Warangal & Siddipet district Karimnagar are recognised as highly popular tourist places.

. Jinnaram near Kawal Tiger Sanctuary & the lake resorts at Kadem Number of tourist arrivals (millions till October 2017) (Adilabad) & Alisagar Lake (Nizamabad) are places which are extremely popular. Amongst the new tourist spots, the state has established jungle resorts on the border of Telangana-Maharashtra. 2017 53.5 In order to encourage tourism, the state government has planned listing of a new public limited company, Telangana State Tourism 2016 95.2 Development Corporation Ltd. (TSTDC), under the Companies Act 2013. 2015 94.6

. The Government of Telangana has set up Yadagirigutta 2014 72.5 Development Authority (YDA) for maintaining the historic Hindu & Jain monuments at Yadagirigutta & nearby regions. As per budget 2013 54.2 2016-17, for renovation & renewal of historic temples in the state, the state government proposed an outlay of US$ 7.63 million as a one 2012 91.7 time grant during 2016-17. 2011 49.7 . Moreover, the state government allocated an amount of US$ 35.44 million for the development of tourism & culture department during 0 20 40 60 80 100 2016-17. . The total number of tourist arrivals reached 53.5 million till October 2017.

Source: News Articles, Telangana State Statistical Year Book, 2015

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Key tourist spots Number of domestic tourist arrivals in Telangana (million) . Monuments • Charminar

100.0

• Golconda Fort

80.0

95.2

94.5

• Qutb Shahi Tombs 91.4

60.0

72.3

• Chowmahalla Palace

40.0

54.0

51.5

50.6

50.5 50.4 • Falaknuma Palace 49.4

20.0 43.0

• Bhongir Fort 32.1 0.0

• Ramoji Film City

2016 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 . Religious Tourism 2005 • Thousand Pillar Temple • Bhadrachalam Temple Number of foreign tourist arrivals in Telangana (million) • Nelakondapalli 0.800

• Dhulikatta Phanigiri

0.700

• Kolanpaka 0.600

0.75

0.72 0.500 0.70

• Mecca Masjid

0.400 0.57

. Others 0.300 0.47

0.18

0.200 0.15 0.12 0.14 • Kuntala waterfall 0.07

0.100 0.29

0.23 0.22 • Pochera waterfalls 0.000

• Nirmal Paintings

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: News Articles, Telangana State Statistical Year Book, 2015

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. Initiatives undertaken by the Government of Telangana:

• The Telangana government has introduced a 24x7 international toll free multi-lingual tourist help line. The helpline handles ten international languages and provides information relating to travel and tourism in India to the tourists.

• In January 2018, to promote heritage, tourist destinations, culture and other aspects and attract more tourists to the State, Telangana Tourism has started playing audio-video clips on LED screens in the Hyderabad.

• From November 2017, Telangana Tourism has launched cruise trips between Nagarjunasagar-Srisailam through the picturesque Nallamalla forest range.

• Telangana State Tourism Development Corporation (TSTDC) maintains Haritha Hotel chains, wayside amenities, river cruises and water fleet in different locations and also organizes tourist packages which connect to the neighbouring states.

• To attract more tourists to the state, Telangana government has started advertising on aircraft. The state expects to witness more interstate and international tourists after the promotion campaign.

Source: News Articles, Telangana State Statistical Year Book, 2015

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. Granite, coal, lime stone, bauxite and mica are the major mineral District Major Minerals resources in Telangana. Adilabad Manganese . Adilabad, Karimnagar, Khammam and Warangal are the largest producers of coal in the state of Telangana. Bhadradri- Garnet, Stowing Sand, Coal Kothagudem . The state have high volumes of limestone deposits, which gratify various cement factories in the region. Jagityal Iron Ore, Manganese, Limestone

. Karimnagar, Khammam and Adilabad, are the prime districts for Jayashankar Iron Ore, Coal, Stowing Sand mining in the state of Telangana. These districts accounts for 50% share in the mining business of the state. Jogulamba-Gadwal Limestone . Karimnagar is considered as strong granite reserve districts in Khammam Iron Ore, Coal Telangana. Wide range of granites such as Tan Brown, Maple Red Komaram Bheem Limestone, Coal and Coffee Brown granite are available in the district. . Telangana holds 426 quarries for colour granite and six quarries for Mahabubabad Iron Ore black granite. Mahbubnagar Gold, Diamond . Khammam is emerging as the new growth engine with around Mancherial Limestone, Coal, Stowing Sand 15,000 acres of land being freed by the state government in the district. Medak Amethyst, laterite, Granite . There are over 3,000 operational mining leases in Telangana. Nalgonda Limestone, Gold, Diamond

Peddapalli Limestone, Iron Ore, Coal, Stowing Sand

Suryapet Limestone, Gold, Diamond

Vikarabad Limestone

Wanaparthy Limestone

Source: Indian Mineral Scenario – States, Ministry of Mines, ASSOCHAM India, Telangana minerals Department

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. Coal industry is one of the prime segments for Telangana minerals & Production of major minerals, 2016-17 mines sector. Telangana coal deposits account for 20% share in India’s coal deposits. In 2015, a new website for Online Sand Sale Minerals Production (tonnes) Management & Monitoring System was started & is being developed Coal 6,08,09,502 by Telangana State Mineral Development Corporation. The purpose of this website is to identify illegal mining of natural resources & Dolomite 4,43,823 maintain records of the revenues of the mining sector. Feldspar 6,76,811 Production of minor minerals, 2016-17 Garnet(2) 9 Minerals Unit Production (tonnes) Latarite 36,79,879 Barytes Tonnes 13,105 Lime Stone 2,53,83,744 B.Granite(2) Cubic meter 136,992 Manganese ore 10,187 C. Granite(2) Cubic meter 377,365 Quartz 6,13,876 Dolomite Tonnes 4,43,823 Shale 32,100 Gravel / Earth(2) Cubic meter 17,021,456 Stowing Sand 23,08,446 Feldspar Tonnes 6,76,811 White clay 65,149 Fuller's earth(2) Tonnes 277,025 Latarite Tonnes 36,79,879 Note: (2)For 2015-16 L. stone slabs(2) Meter Square 1,360,770 Source: Telangana Socio Economic Outlook 2017, Indian Bureau of Mines Mosaic chips(2) Tonnes 14,890 Road metal(2) Cubic meter 20,786,426 Ordinary sand(2) Cubic meter 1,618,019

Note: (2)For 2015-16 Source: Ministry of Commerce and Industry, Government of India, Telangana Socio Economic Outlook 2017

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. Cotton is grown in almost all districts of the state except Hyderabad & Nizamabad. The state had 10 lakh spindles as of 2016-17. Out of Proposed textile parks in Telangana Location these spindles, about 8 lakh spindles utilise cotton & the rest use synthetic & viscose fibres. In 2014-15, under Integrated Textile Park scheme, the state government proposed to set up 2 textile parks in Pochampally Handloom Park Limited Kanumukkala,Nalgonda Warangal & Sircilla cities. These cities are based in Karimnagar district. Both parks will be established similar to the parks present at Avantika Textile Park Medak Telengana Tirupur in Tamil Nadu. The Government of Telangana sought authorisation from the central government for the conversion of forest Kakatiya Mega Textile park Warangal area in Warangal, which is the largest cotton producing district in the state, into a mega textile park. Handloom Weaver Cooperative Societies* . As per the Budget 2018-19, the work on Kakatiya Mega Textile Park in Warangal has initiated & is under process. The textile park is being No. of Handloom Weaver Cooperative Societies 627 built over an area of 1,190 acres at a cost of Rs 1,075 crore (US$ 166.80 million). The park is expected to attract investments worth Rs No. of weaver members 82,438 9,000 crore (US$ 1,396.43 million) over the next five years. No. of working handlooms Geo-tagged 16,879 . As of March 2015, a new textile policy was introduced in Telangana. Purpose of this policy is to provide special incentives to the textiles No. of Powerlooms existing 49,112 sector. . In 2017-18, up to November, the state produced 56 metric tonnes of raw silk. . In order to promote the textile sector in the state, the Government of Telangana is working on a new textile policy to attract investments in the sector.

Source: State Budget 2018-19, Silk Board, News Articles, *Telangana Socio-Economic Survey 2018

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. As per the state budget 2017-18, financial assistance to the Financial assistance to the handloom weavers (in US$ million) handloom weavers in Telangana was increased to US$ 4.5 million in FY18 from US$ 4.2 million in FY17. 4.5 . As of June 2017, the state had over 30 operational textile mills. 4.5 4.5 . FDI in the textile sector in Telangana increased by 13.14% to US$ 4.4 1.55 million in FY17 from US$ 1.37 million in FY16. 4.4 . The Government of Telangana had announced setting up of a mega 4.3 textile park in Warangal in January 2016. The foundation stone for the Kakatiya mega textile park was laid in October 2017. The project 4.3 is a fibre-to-fabric integrated textile cluster proposed to be built on 4.2 1,200 acres of land near Shayampet in the Warangal district. It is 4.2 expected to generate 27,000 direct and 50,000 indirect jobs in the 4.2 4.1 state. 4.1 . The Government of Telangana and Kay Ventures Private Limited 4.0 signed a MoU of Rs 100 crore (US$ 15.45 million) for setting up a

apparel superhub on a 20 acres land in Siricilla. It is expected to 2017-18 generate employment for 15,000 people. 2016-17

Source: Telangana Annual Plan, 2015-16, budget 2017-18

47 TELANGANA For updated information, please visit www.ibef.org KEY APPROVALS REQUIRED

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration, Industrial Entrepreneurs Memorandum, industrial licences Commerce and Industries Department Permission for land use

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 Department Water connection

48 TELANGANA For updated information, please visit www.ibef.org CONTACT LIST

Agency Description

6th Floor, Parisrama Bhavan, Fateh Maidan Road, Basheerbagh, Hyderabad – 500 004, Telangana, India

Telangana State Industrial Infrastructure Ph: +91-40-23237625, 23237626 Corporation (TSIIC) Fax: +91-40-23240205, 23241385 Website: https://tsiic.telangana.gov.in/ email: [email protected]

Vidyutsoudha, Khairatabad, Hyderabad-500 082,

Telangana State Power Generation Telangana, India Corporation (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://tspcb.cgg.gov.in/default.aspx email: [email protected]

49 TELANGANA For updated information, please visit www.ibef.org 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

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Objectives

. To promote regionalised and dispersed generation of solar energy.

The Telangana Solar . Effective energy conservation by the stimulation of connected grid and off-grid solar tenders. Power Policy 2015 . Endorsement of all skills related to solar power generation. Read more . Addition of solar parks

Telangana Full Fee . To confirm a uniform scholarship for each category of study, as well as vocational training, which is independent of Reimbursement Policy the fees charged. To guarantee that fees are lower than the subsidy quantities to help students to meet their living 2015 expenses. Read more

. To improve 6 industrial corridors with emphasis on main industrialised sectors, with life sciences, IT and hardware The New Industrial Policy being the major benefactors. 2014 . To certify viable & comprehensive industrial development. Read more

. To build capacity and protect critical information infrastructure. Cyber Security Policy 2016 . To establish requisite institutions and legal framework to counter cybercrime. Read more

. To create an atmosphere conducive for IoT specific businesses and manufacturing units to thrive in the State IOT (Internet of Things) Policy . To position Telangana as a test bed for IoT solutions Read more

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Objectives

Telangana ICT Policy . To make Telangana the most favoured destination for the IT companies. Read more 2016 . To position the state among the leading global hubs for innovation and technology entrepreneurship in the country.

Telangana Electronics . To entice US$ 3 billion funds for the Electronics sector through 2020. Policy 2016 . To develop an employment potential of around 160 thousand by 2020. Read more

. To boost the start-ups present across the social & rural enterprises by the provision of additional incentives to Telangana Innovation them. Policy . To endorse the innovative ideas through positive industrial engagement. Read more

. To make Hyderabad the most favored destination for investment in Animation, Visual effects, Gaming & Comics Gaming and Animation sector (IMAGE) Policy . To set up a “Center of Excellence” i.e. Telangana Animation and Gaming - IMAGE City, with state-of-the-art facilities Read more

. To create an enabling environment in order to encourage investments in downstream processing activities. Textile and Apparel . To support the existing units for their modernization, expansion, and for marketing and promotion activities. Incentive Scheme 2017 . To encourage new units across the value chain. Read more

E Waste Management . To create a vibrant e-Waste refurbishing and recycling ecosystem in the State. Policy . To assist the highly unsafe unorganised sector transition into the organised sector through various initiatives.

Read more

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Objectives

Telangana Excise Policy . To standardise the process of collection of certain fees from suppliers and others. 2017-19 . To restructure administrative units due to introduction of new districts in the state. Read more

. To develop capacity for processing major commodities up to international standards

. To build clusters with collaboration between government, industry and academia Telangana State Food Processing and . To position Telangana as the agri-food distribution hub for the country Preservation Policy . To drive the national objective of doubling farmer incomes by 2022

. To generate employment for 1,25,000 personnel by 2022 Read more

Upcoming Policies:

. Telangana Electric Vehicles Policy

. Telangana Retail Policy

. Short term Agriculture and Allied Industries Policy

. Registration Policy

53 TELANGANA For updated information, please visit www.ibef.org EXCHANGE RATES

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year INR INR Equivalent of one US$ Year INR Equivalent of one US$

2004–05 44.95 2005 44.11

2005–06 44.28 2006 45.33

2006–07 45.29 2007 41.29 2007–08 40.24 2008 43.42 2008–09 45.91 2009 48.35 2009–10 47.42 2010 45.74 2010–11 45.58 2011 46.67 2011–12 47.95 2012 53.49 2012–13 54.45 2013 58.63 2013–14 60.50 2014 61.03 2014-15 61.15

2015-16 65.46 2015 64.15

2016-17 67.09 2016 67.21

2017-18 64.45 2017 65.12

Source: Reserve bank of India, Average for the year

54 TELANGANA For updated information, please visit www.ibef.org DISCLAIMER

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