Andhra Pradesh Industrial Infrastructure Corporation Limited DPR for Diversion of Forest Lands for Establishment of Industrial Parks At I.S.Jagannadhapuram Forest Block in West Godavari District, Andhra Pradesh Final Detailed Project Report June 2016 Prepared By L&T INFRASTRUCTURE ENGINEERING LIMITED C1162901 RP004, Rev.B L&T Infrastructure Engineering Ltd. Client: Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) Parisramabhavanam, 6th Floor, Fateh Maidan Road, Hyderabad – 500 004 Project: DPR for Diversion of Forest Lands for Project No.: Establishment of Industrial Parks in W.G C1162901 District, AP Title: Final Detailed Project Report for IS Document No.: Rev.: Jagannadhapuram Forest Block RP004 B This document is the property of L&T Infrastructure Engineering Ltd. (formerly File path: known as L&T-Rambøll Consulting Engineers Limited) and must not be l:\roads\2016\c1162901 - dpr for rf lands at eluru\outputs\reports\001-final passed on to any person or body not authorised by us to receive it nor be copied detailed project report\004-rp004- is jagannadhapuram-final dpr\004-rp04-is or otherwise made use of either in full or in part by such person or body without jagannadhapuram-final dpr.docx our prior permission in writing. Notes: 1. Revised based on the feedback received from client a. Email dated on April 18, 2016 from ZM, Kakinada, APIIC and Email dated on April 01, 2016 from Manager, Eluru, APIIC. 2. Earlier submissions from RP001 to RP018 were done with GBD Number – B1152201. Revision Details: B 29.06.2016 Third Submission LPN KRM TKSS A 20.04.2016 Second Submission LPN KRM TKSS LPN 0 14.08.2015 First Submission SJV TKSS KRM KRM Init. Sign. Init. Sign. Init. Sign. Rev. Date Details Prepared Checked Approved Table of Contents DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP C1162901 Final Detailed Project Report for IS Jagannadhapuram Forest Block RP004 rev. B TABLE OF CONTENTS 1 Introduction .....................................................................................................................................1 1.1 Preamble ...................................................................................................................................1 1.2 Data Collection ..........................................................................................................................2 1.3 Site Visit and Meetings .............................................................................................................2 1.4 Structure of the Report ..............................................................................................................2 1.5 Acknowledgement .....................................................................................................................2 2 Site Appreciation ............................................................................................................................3 2.1 Project Site ................................................................................................................................3 2.2 Details of Forest ........................................................................................................................3 2.2.1 Site Map ..........................................................................................................................3 2.2.2 Rehabilitation and Resettlement (R&R) Issues ..............................................................4 2.2.3 Flora and Fauna .............................................................................................................4 2.3 Existing Habitations around Project Site ...................................................................................5 2.4 Demographic Pattern ................................................................................................................5 2.5 Regional Connectivity ...............................................................................................................6 2.5.1 Airport and Port Connectivity ..........................................................................................6 2.6 Topography ...............................................................................................................................7 2.7 Soil Profile .................................................................................................................................7 2.8 Climate and Rainfall ..................................................................................................................7 2.9 Infrastructure Availability ...........................................................................................................8 2.9.1 Water ..............................................................................................................................8 2.10 Environmental Considerations ..................................................................................................8 3 Market Study and Demand Assessment ......................................................................................9 3.1 Preamble ...................................................................................................................................9 3.2 Information Sources ..................................................................................................................9 3.3 Location Advantages/USP ..................................................................................................... 10 3.4 Location Attributes ................................................................................................................. 10 3.5 Advantage Andhra Pradesh ................................................................................................... 10 3.5.1 Ease of Doing Business............................................................................................... 10 3.5.2 Power Generation All India Scenario ........................................................................... 11 3.6 Industry Overview .................................................................................................................. 13 3.6.1 Key Factors .................................................................................................................. 14 3.6.2 Growth & Opportunities ............................................................................................... 14 3.6.3 Key Trends .................................................................................................................. 14 3.6.4 Some Major Indian Players ......................................................................................... 15 3.6.5 Growth Parameters - Government Policy Reforms ..................................................... 15 3.6.6 De-Licensing ................................................................................................................ 15 3.6.7 Tariffs & Custom Duties ............................................................................................... 15 3.6.8 Initiatives to Increase Power Generation ..................................................................... 16 3.6.9 National Electricity Policy (NEP) .................................................................................. 16 3.6.10 Vision 2O22 for Indian Electric Machinery Equipment Industry .................................. 16 3.6.11 Key Provisions of 2014-2015 Union Budget ................................................................ 16 3.6.12 Export Incentives ......................................................................................................... 17 3.6.13 Generation Machinery: Boilers, Turbines, Generators ................................................ 17 3.6.14 Transmission Machinery .............................................................................................. 17 3.6.15 Foreign Investors ......................................................................................................... 17 3.6.16 Growth Drivers ............................................................................................................. 17 3.6.17 Market Potential ........................................................................................................... 18 3.6.18 Exports Market ............................................................................................................. 18 3.6.19 Exports of Power Equipment ....................................................................................... 18 3.6.20 Investment Opportunities ............................................................................................. 18 3.6.21 Market Segmentation ................................................................................................... 18 3.6.22 Generation Machinery ................................................................................................. 19 3.6.23 Key Vendors ................................................................................................................ 26 3.6.24 Smart Grid ................................................................................................................... 26 3.6.25 Opportunities in Future ................................................................................................ 27 Table of Contents Page i DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP C1162901 Final Detailed Project Report