Andhra Pradesh is located in Southern India with a coastline of 974 km. The document provides an overview of the state's economy and key industries. It highlights that Andhra Pradesh has emerged as a hub for knowledge-based industries like IT, pharmaceuticals, and biotechnology. The state offers various fiscal and policy incentives for business under its industrial promotion policy. Additionally, Andhra Pradesh has high-quality infrastructure and a skilled workforce, contributing to its high economic growth rate of 16% between 2004-2005 and 2011-2012. The primary industries in the state are agriculture and rice is a major crop.
Rohan Jaitley: Central Gov't Standing Counsel for Justice
Andhra Pradesh - The Rice Granary of India
1. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
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2. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Contents
Andhra Pradesh – An Introduction
Infrastructure Status
Business Opportunities
Doing Business in Andhra Pradesh
State Acts & Policies
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Visakhapatnam, Vijayawada, Tirupati, Warangal,
Andhra Pradesh Factfile →
Guntur, Kakinada, Nellore and Kurnool are some of
the key cities in the state.
→ The most commonly spoken language of the state is
Telugu. Hindi, English and Tamil are the other
languages used.
Andhra
Parameters
Pradesh
Capital Hyderabad
Geographical area (sq km) 275,100
Administrative districts (No) 23
Population density (persons per sq km)* 308
Total population (million)* 84.6
Source: Maps of India Male population (million)* 42.5
Female population (million)* 42.1
→ Andhra Pradesh is located in the Southern peninsula of
Sex ratio (females per 1,000 males)* 992
India and has a coast line of 974 km.
Literacy rate (%)* 67.7
→ The state is bound on the North by Odisha and
Chhattisgarh, on the West by Maharashtra and Sources: Andhra Pradesh Government Website (www.aponline.gov.in),
*Provisional Data – Census 2011
Karnataka, on the South by Tamil Nadu and on the East
by the Bay of Bengal.
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Andhra Pradesh in Figures … (1/2)
Parameter Andhra Pradesh All-States Source
Economy
GSDP as a percentage of all states’ GSDP 8.6 100 CMIE, 2010-11, current prices
Average GSDP growth rate (%)* 17.4 15.9 CMIE, 2004-05 to 2010-11, current prices
Per capita GSDP (US$) 1,530.8 1,324.3 CMIE, 2010-11, current prices
Physical Infrastructure
Installed power capacity (MW) 16,094.7 199,627.0 Central Electricity Authority, as of March 2012
Telecom Regulatory Authority of India, as of
Wireless subscribers (No) 66,070,782 903,727,208
January 2012
Ministry of Communications & Information
Broadband subscribers (No) 1,342,750 13,350,938
Technology, as of December 2011
Ministry of Road Transport & Highways,
National Highway length (km) 4,537 71,772
Annual Report 2011-12
Major and minor ports (No) 1+14 12+187 Indian Ports Association
Airports (No) 9 133 Airport Authority of India
* Calculated in Indian Rupee Terms
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Andhra Pradesh in Figures … (2/2)
Parameter Andhra Pradesh All-States Source
Social Indicators
Literacy rate (%) 67.7 74.0 Provisional Data – Census 2011
Birth rate (per 1,000 population) 17.9 22.1 SRS Bulletin (www.censusindia.gov.in), 2011
Investment
Department of Industrial Policy &
FDI Equity inflows (US$ billion) 6.7 160.0
Promotion, April 2000 to January 2012
Outstanding investments (US$ billion) 946.8 11,318.3 CMIE (2011-12)
Industrial infrastructure
PPP projects (No) 100 881 www.pppindiadatabase.com
Notified as of July 2012,
SEZ (No) 76 386
www.sezindia.nic.in
PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System
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Advantage Andhra Pradesh … (1/2)
Hub for Knowledge-Based Industries
Andhra Pradesh has emerged as a key state for the knowledge-based industry including IT, pharmaceuticals and
biotechnology. Over 70 of the 500 top global corporations are present in the state.
Policy and Fiscal Incentives
The state offers a wide range of fiscal and policy incentives for businesses under the Industrial Investment Promotion
Policy, 2010-2015. Additionally, the state has well drafted sector-specific policies.
Rich Labour Pool
The state has a large base of skilled labour, making it an ideal destination for the knowledge sectors. Further, the state has a
large pool of semi-skilled and unskilled labour.
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Advantage Andhra Pradesh … (2/2)
Facilitating Infrastructure
The state has well-developed social, physical and industrial infrastructure and virtual connectivity, has good power, airport,
IT and port infrastructure.
High Economic Growth
The state’s GSDP grew at a Compound Annual Growth Rate (CAGR) of 16 per cent between 2004-05 and 2011-12. Vast
natural gas reserves found in the Krishna–Godavari basin have opened up immense possibilities for the state economy. It is
also a leading agricultural state in the country.
Stable Political Environment
The state has a stable political environment with a single-party government. The State Government is committed towards
creating a progressive business environment.
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Economic Snapshot – GSDP
→ At current prices, the Gross State Domestic Product Andhra Pradesh’s GSDP
(GSDP) of Andhra Pradesh was US$ 141.0 billion in
2011-12.
2011-12 141.0
2010-11 129.2
→ Between 2004-05 and 201 1-12, the average annual
GSDP growth was 16.0 per cent. 2009-10 103.4
2008-09 92.9
→ This growth was mainly driven by the service and
2007-08 90.6
secondary sectors.
2006-07 66.4
CAGR
2005-06 57.8 16.0%
2004-05 49.9
0 20 40 60 80 100 120 140 160
US$ billion
Source: CMIE
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Economic Snapshot – NSDP
→ At current prices, the Net State Domestic Product Andhra Pradesh’s NSDP
(NSDP) of Andhra Pradesh was about US$ 127.1 billion
in 2011-12.
2011-12 127.1
2010-11 116.5
→ The average NSDP growth rate between 2004-05 and
2011-12, was about 16.1 per cent. 2009-10 93.1
2008-09 83.6
2007-08 81.0
2006-07 59.4
CAGR
2005-06 51.7 16.1%
2004-05 44.7
0 20 40 60 80 100 120 140
US$ billion
Source: CMIE
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Economic Snapshot – Per Capita GSDP
→ The per capita GSDP of Andhra Pradesh increased Per Capita GSDP
from US$ 628.8 in 2004-05 to US$ 1,655.8 in 2011-12.
1,800
1,655.8
1,600 1,530.8
CAGR
→ The average per capita GSDP increased by 14.8 per 1,400 14.8%
cent between 2004-05 and 2011-12. 1,104.9 1,121.8
1,236.5
1,200
1,000 818.5
719.1
US$
800 628.8
600
400
200
0
Source: CMIE
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Economic Snapshot – Per Capita NSDP
→ The per capita NSDP of Andhra Pradesh increased Per Capita NSDP
from US$ 563.3 in 2004-05 to US$ 1,492.2 in 2011-12.
1,600 1,492.2
1,400 1,380.5
CAGR
→ The average per capita NSDP increased by 14.9 per
1,200 14.9% 1,113.9
cent between 2004-05 and 2011-12. 987.2 1,009.4
1,000
800 731.7
644.5
US$
563.3
600
400
200
0
Source: CMIE
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Economic Snapshot – Percentage
Distribution of GSDP
→ In 2011-12, the tertiary sector at US$ 72.9 billion, Percentage Distribution of GSDP
contributed 51.7 per cent to the GSDP (at current CAGR
100
prices). It was followed by secondary sector,
90
contributing 24.6 per cent (US$ 34.7 billion) and the
80 17.3%
primary sector’s contribution of 23.7 per cent (US$ 50.6 51.7
70
33.4 billion). 60
50
→ The secondary sector had fastest growth of 19.3 per 40 21.5 19.3%
24.6
cent followed by tertiary sector (17.3 per cent) and 30
primary sector (14.3 per cent) between 2004-05 and 20
27.9
2011-12. 10 23.7 14.3 %
0
2004-05 2011-12
Primary Sector Secondary Sector Tertiary Sector
Source: CMIE
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Economic Snapshot – Agricultural Crop
Annual Production
Production (‘000 tonnes) - 2011-12^
Sugarcane 15,912
Rice 11,919
Cotton 4,352*
→ In 2011-12^, the total area under food grain
production in the state was estimated at 7.0 million Maize 3,547
hectares. Mango 3,363**
Total Pulses 1,412
→ The total production of food grains in the state was
estimated at 17.3 million tonnes in 2011-12^. Chillies 892
Onion 877
→ Major food grains# produced in the state are rice,
maize, pulses and jowar. Groundnut 786
Bengal Gram 693
→ Sugarcane, cotton, chillies, onion, groundnut and
Turmeric 523
turmeric are some of the other major crops produced
in the state. Black Gram (Urad dal) 336
Jowar (Sorghum) 304
→ In 2011-12^, the total production of oilseeds in the
state was estimated at 1.2 million tonnes. Red Gram (Tur dal) 228
Green Gram (Moong dal) 124
#Food grains include rice, jowar, bajra, maize, ragi, wheat, pulses and
other millets. Source: Directorate of Economics and Statistics,
Government of Andhra Pradesh (www.apdes.ap.gov.in)
^Second Advance Estimates as on January 5, 2012
* ’000 Bales of 170 kgs each
**In 2010-11
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Economic Snapshot – Exports
→ Andhra Pradesh’s exports increased at a Compound Exports from Andhra Pradesh
Annual Growth Rate (CAGR) of about 22.38 per
cent between 2006-07 and 2010-1 1. 25
CAGR 20.10
→ In 2010-1 exports from the state was US$ 20.10
1, 20 22.38 %
16.90
billion. 15.42
14.25
US$ billion
15
→ Computer software contributes more than 30 per
cent to the total exports from the state. Drugs & 10 8.96
pharmaceuticals, fine chemicals, animal, marine
and leather products, engineering products, 5
agriculture and agro based products, minerals and
mineral products, handlooms, handicrafts, textiles,
0
gems and jewellery, electronics and electrical
2006-07 2007-08 2008-09 2009-10 2010-11
products are other major export items.
Source: Andhra Pradesh Socio Economic Survey 2011-12
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15. AUGUST
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Economic Snapshot – FDI Inflows &
Investments
→ According to the Department of Industrial Policy & Break up of Outstanding Investments by Sectors (2011-12)
Promotion, the cumulative FDI inflows from April 2000
to January 2012 amounted to US$ 6.7 billion. 3.3%
Electricity
→ The state has had a healthy FDI inflow over the years. 11.8% Manufacturing
For the period April 201 to January 2012, FDI inflows
1
amounted to US$ 779 million. 34.4%
12.2% Services
→ In 2011-12, the total outstanding investments in the
Real Estate
state were US$ 946.8 billion.
18.6%
Irrigation
→ Of the total outstanding investments, electricity sector 19.7%
accounted for around 34.4 per cent followed by Mining
manufacturing sector at 19.7 per cent and services
sector at 18.6 per cent.
Source: CMIE
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16. AUGUST
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Contents
Andhra Pradesh – An Introduction
Infrastructure Status
Business Opportunities
Doing Business in Andhra Pradesh
State Acts & Policies
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Physical Infrastructure – Roads → As of March 2012, Andhra Pradesh had 17 National
Highways running through it and covering a length of
4,537 km.
→ Roads network under Andhra Pradesh Roads and
Buildings Department was 70,394 km, as of September
2011.
→ As of September 201 road density per thousand
1,
population was 0.86 km.
→ As of April 2012, there were 41 Public-Private
Partnership (PPP) projects in the roads sector that are
at various stages of development.
Road Length* (km)
Road Type
As of September 2011
State Highways 10,470
Major District Roads 32,205
Rural Roads 22,989
Source: Maps of India
Source: Andhra Pradesh Socio Economic Survey 2011-12
*under Andhra Pradesh Roads and Buildings Department
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Physical Infrastructure – Railways
→ The metro rail project is environmental friendly and is
expected to reduce pollutants by about 3,100 Tonnes
Per Annum (TPA).
→ As of March 201 Andhra Pradesh had a total railway
1,
→ In September 2010, construction work of the project has
network of 5,264 km, out of which 4,348.44 km is
been awarded to Larsen & Toubro Limited through
under the control of the South Central Railway with
competitive bidding process.
Secunderabad as the headquarters.
→ The state had a total of 677 railway stations and the Andhra Pradesh Railway Network (As of March 2010)
broad guage rail network of 4,996.61 km, as of March
2010. No of Total Route
Name of the Railway
Stations (in kms)
→ The Mass Rapid Transit Service (MRTS) project is South Central Railway 586 4,348.44*
expected to carry about 1.5 million passengers per Southern Railway 16 120.85
day by 2015 and 2.2 million passengers per day by
2025. East Coast Railway 75 570.64
Sources: Directorate of Economics and Statistics Website -
→ The total cost for the MRTS project has been www.apdes.ap.gov.in, Hyderabad Metro Rail Website -
estimated at US$ 2.9 billion. US$ 0.3 billion is being www.hyderabadmetrorail.in
given as central assistance by Government of India *As of March 2011
under the Viability Gap Funding (VGF) scheme.
→ The state is the first to have a Public Private
Partnership (PPP) Metro Rail project sanctioned by
Government of India.
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Physical Infrastructure – Airports
→ The state has an international airport at Hyderabad
GMR-Hyderabad International Airport Limited
and domestic airports at Visakhapatnam, Tirupati, (GHIAL), Shamsabad
Rajahmundry, Warangal, Vijayawada, Donakonda,
Kadapa and Puttaparthy. Started operations in March 2008.
Constructed by the consortium of:
→ Hyderabad is connected to several key international • GMR group
• Malaysia Airport Holding Berhad (MAHB)
destinations such as Amsterdam, Bangkok, Chicago,
• Government of Andhra Pradesh
Frankfurt, Dubai, Singapore, Sharjah, London and
• Airports Authority of India
Kuala Lumpur, besides all major destinations across
India. Single terminal, expandable structure
Final capacity of 40 million passengers per year and
one million tonne of cargo.
→ The Rajiv Gandhi International Airport near
Shamshabad (about 25 km from Hyderabad) is a Total built-up area of 900,000 sq m.
newly completed airport. It has replaced the former A third-party airframe maintenance, repair and
international airport of the city at Begumpet. The total overhaul (MRO) facility was set up by MAS-GMR
cost for this project was US$ 560 million. The total Aerospace Engineering Company Ltd a joint venture
land area is 5,495 acres for the airport. company of GHIAL and Malaysian Aerospace
Engineering Sdn. Bhd. (MAE).
A flight academy was established at the airport.
Source: GHIAL website, www.hyderabad.aero
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Physical Infrastructure – Ports
→ Andhra Pradesh has the second-highest cargo- Visakhapatnam Port Traffic (million tonnes)
handling port.
80.0
64.6 63.9 65.5 68.0 67.4
→ The Visakhapatnam port ranks amongst the top three 70.0
of the 12 major ports in the country. In 2011-12, it had 60.0
a port traffic of 67.42 million tonnes.
50.0
→ Coking coal, iron ore, petroleum products and 40.0
thermal coal are some of the key products handled by 30.0
the port. It also has a high volume of container traffic.
20.0
10.0
→ Other than Visakhapatnam, the state has 14
intermediate and minor ports. 0.0
2007-08 2008-09 2009-10 2010-11 2011-12
Source: Ministry of Shipping, Government of India
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Physical Infrastructure – Power … (1/2)
→ As of March 2012, Andhra Pradesh had a total power Installed Power Capacity (MW)
generation installed capacity of 16,094.73 MW, which
18,000.0
comprised 9,048.86 MW, under state utilities, 16,094.7
15,035.5
3,948.71 MW under private sector and 3,097.16 MW 16,000.0
13,409.4
under the central utilities. 14,000.0
11,866.8 11,639.1
12,000.0
→ Of the total installed power capacity, 11,199.08 MW 10,000.0
was contributed by thermal power, 275.78 MW and 8,000.0
885.34 MW was contributed by nuclear and 6,000.0
renewable capacity, respectively. Hydro power 4,000.0
contributed the rest of 3,734.53 MW of capacity. 2,000.0
0.0
→ The entire capacity of gas-based power plants is 2007-08 2008-09 2009-10 2010-11 2011-12
contributed by the private sector.
Source: Central Electricity Authority
→ Per capita consumption of electricity was 952 kWh in
2010-11.
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Andhra Pradesh 2012
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AP Genco’s Hydro-Power Plants
Physical Infrastructure – Power … (2/2)
→ The integrated Andhra Pradesh State Electricity Board
(APSEB) was restructured in 1999 to form the
following companies:
Segment Company Name
Power Andhra Pradesh Power Generation
Generation Corporation Limited (AP Genco)
Power Transmission Corporation of Andhra Pradesh
Transmission Limited (AP Transco) AP Genco’s Thermal Power Plants
Power Central Power Distribution Company of
Distribution Andhra Pradesh Limited (APCPDCL),
Hyderabad
Southern Power Distribution Company of
Andhra Pradesh Limited (APSPDCL), Tirupati
Eastern Power Distribution Company of
Andhra Pradesh Limited (APEPDCL),
Visakhapatnam
Northern Power Distribution Company of
Andhra Pradesh Limited (APNPDCL),
Warangal
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23. AUGUST
Andhra Pradesh 2012
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Physical Infrastructure – Telecom
→ According to Telecom Regulatory Authority of India
(TR AI), Andhra Pradesh had nearly 66.07 million Telecom Infrastructure (As of January 2012)
wireless subscribers and 2.34 million wire-line
Wireless Subscribers 66,070,782
subscribers as of January 2012.
Wire-line Subscribers 2,348,940
→ According to Department of Telecommunications, Broadband Subscribers 1,342,750*
Government of India, Andhra Pradesh had 4,266
Telephone Exchanges 4,266*
telephone exchanges and 107,407 Public Call Offices
(PCOs) as of December 2011. Public Call Offices (PCOs) 107,407*
→ Optical fiber cable networks of BSNL with 44,500 Sources: Telecom Regulatory Authority of India,
kms, Reliance with 6,000 kms, Bharat with 3,450 kms Department of Telecommunications, Annual Report 2011-12,
and TATA with 1,700 kms, provide wide range of Ministry of Communications & Information Technology
*As of December 2011
communication network to Andhra Pradesh.
→ As of March, 201 there were 16,150 post offices in
1,
the state.
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24. AUGUST
Andhra Pradesh 2012
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Development Projects: Urban Infrastructure Sewerage System and Solid-
Water Supply
Waste Management System
• The average water supply in • Solid waste collection
various Urban Local Bodies efficiency is 95 per cent
(ULBs) is 85 LPCD. across the cities of Andhra
→ Under the Jawaharlal Nehru National Urban Renewal Pradesh.
Mission (JNNURM), 51 projects costing around
• During the period 2007 to
US$1,142.3 million have been sanctioned for 2011, 43 water supply • Area coverage of the
Hyderabad, Visakhapatnam, Vijayawada and Tirupati. schemes with an estimated sewerage system in the
cost of US$ 191.8 million were major cities varies from 10
→ Some of the key areas of development are completed adding 370.44 per cent to 45 per cent.
roads/flyovers, water supply, storm water drainage, MLD of water, raising the
old city drains, solid-waste management and mass installed capacity from
1,229.24 to 1,599.68 MLD
rapid transport system.
Source: Andhra Pradesh Socio Economic Survey 2011-12
→ As of April 2012, total 18 projects of value US$ 235.1 LPCD: Litres Per Capita per Day
MLD: Million Litres per Day
million have been completed. These projects were
located in Hyderabad, Vijayawada and
Vishakhapatnam and related to roads, water supply, Some of the urban development projects in Hyderabad
drains/storm water drains and sewerage.
• Outer Ring Road Project
• P.V.Narasimha Rao Elevated Expressway
→ The state has 150 Urban Local Bodies (ULBs);
• Flyover at Lunger House Junction
comprising 16 corporations, 108 municipalities and 26
nagarapanchayaths. • Hussain Sagar Lake and Catchment Area Improvement
Project
Sources: JNNURM, Ministry of Urban Development,
www.urbanindia.nic.in Sources: Andhra Pradesh Socio Economic Survey 2011-12,
Andhra Pradesh Socio Economic Survey 2011-12 Hyderabad Metropolitan Development Authority
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25. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Development Projects: Key Public Private
Partnership Projects
Project Cost
Project Name Sector PPP Type Stage
(US$ million)
Vodarevu Nizampatnam Ports and Port-Based
Ports BOOT 3,652.2 Construction
Corridor Development
Krishnapatnam Ultra Mega Power Project Energy BOO 3,650.3 Construction
Gangavaram Port Ports BOT-Toll 358.6 Construction
Cuddapah Mydukur Kurnool Road Roads BOT-Toll 344.6 Construction
Integrated Solid Waste Management for Hyderabad Urban Development DBFOT 195.0 Construction
Four-Laning of Hyderabad Karimnagar
Roads BOT-Toll 295.2 Bidding
Ramagundam Road
Narketpally Addanki Medaramitla Road Roads BOT-Toll 260.2 Bidding
Bus Terminal and Commercial Development at
Urban Development Lease 54.3 Bidding
Musheerabad
Health Spa and Resort Tourism Lease 13.0 Bidding
Four-Laning of Khammam Tallada Devarapalli Road Roads BOT-Toll 143.5 EOI
Four-Laning of Perecherla Thokapalli Road Roads BOT-Toll 113.5 EOI
Four-Laning of Warangal Khammam Road Roads BOT-Toll 103.5 EOI
Source: www.pppindiadatabase.com
EOI-Expression Of Interest, BOOT: Build-Own-Operate-Transfer, BOT: Build-Operate-Transfer, DBFOT: Design-Build-Finance-Operate-Transfer,
BOO: Build-Own-Operate
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26. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Development Projects: SEZs … (1/3)
→ There are 37 operational SEZs in the state, as of July 2012.
Some of the Operational SEZs in Andhra Pradesh
Name/Developer Location Primary Industry
Visakhapatnam SEZ Vishakhapatnam Multi Product
Andhra Pradesh Industrial Infrastructure Corporation Ltd Nanakramguda IT/ITeS
Brandix India Apparel City Private Ltd Achutapuram, Visakhapatnam Textile
Ramky Pharma City Pvt Ltd Mandal, Visakhapatnam Pharmaceuticals
CMC Limited Ranga Reddy District, Hyderabad IT/ITeS
DivyaSree NSL Infrastructure Pvt Ltd Ranga Reddy District, Hyderabad IT/ITeS
DLF Commercial Developers Ltd Ranga Reddy District, Hyderabad IT/ITeS
Hyderabad Gems SEZ Ltd Ranga Reddy District, Hyderabad Gems and Jewellery
L&T Phoenix Info Parks Pvt Ltd Mandal IT/ITeS
Infosys Technologies Ltd Pocharam, Rangareddy IT
Vivo Bio Tech Ltd Medak Dist Medak Bio-technology
Source: www.sezindia.nic.in
SEZ: Special Economic Zone
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27. AUGUST
Andhra Pradesh 2012
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Development Projects: SEZs … (2/3)
→ The state has 6 SEZs with valid in-principal approvals, as of July 2012.
SEZ with Valid In-Principal Approvals
Name/Developer Location Primary Industry
South Coast Infrastructure Development Co of Andhra Pradesh NH-5 between Prakasam and
Building Materials
Private Ltd (SCIDCAP) Nellore District
Lepakshi Knowledge Hub Private Ltd Ananthapur Multi Product
Strategic
M/s Sri Kubera Infracom India Ltd Sadasivpet, Medak
Manufacturing
Pharmaceuticals
M/s Drugs & Pharmaceuticals Manufactures Association Nakkapalli Mandal, Visakhapatnam
/APIs/Formulations
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
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28. AUGUST
Andhra Pradesh 2012
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Development Projects: SEZs … (3/3)
→ There are 109 SEZs with formal approvals in the state, as of July 2012.
Some of the SEZ with Formal Approvals
Name/Developer Location Primary Industry
M/s Divi’s Laboratories Ltd Chippada, Visakhapatnam Pharmaceuticals
WIPRO Ltd Hyderabad IT
APIIC Visakhapatnam Multi Product
M/s Krishnapatnam Infratech Pvt Ltd Chillakur Mandal, Nellore Multi Product
Deccan Infrastructure and Land Holdings Ltd Mahabubnagar Agriculture and Livestock
Andhra Pradesh Industrial Infrastructure Corporation Ltd (APIIC) Nellore Multi Product
Rassai Properties & Industries Ltd Hindupur, Anantapur Multi Services
Pocharam Village, Ghatkesar
Infosys Technologies Ltd IT
Mandal, Rangareddy
Andhra Pradesh Industrial Infrastructure Corporation Ltd(APIIC) Nellore Leather
Stargaze Properties Private Ltd Kancha Imarath, Maheswaram IT/ITeS/ Electronic Hardware
Source: www.sezindia.nic.in
For updated information, please visit www.ibef.org INFRASTRUCTURE STATUS 28
29. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Social Infrastructure – Education … (1/2)
Number of Colleges
Colleges
(2011-12)
→ The state has a literacy rate of 67.7 per cent according
Government Colleges 251
to the provisional data of Census 201 the male
1;
literacy rate is 75.6 per cent and the female literacy Aided Colleges 179
rate is 59.7 per cent. Government Junior Colleges 806
Private Aided Junior Colleges 275
→ In 2010-1 a total of 13.31 million students were
1,
enrolled in 101,204 schools. There were 66,834 Private Un-Aided Junior Colleges 2,850
primary schools, 15,421 upper primary schools, 18,776
high schools and 173 higher secondary schools. The Source: Andhra Pradesh Socio Economic Survey 2011-12
total number of teachers were 476,555.
Number of Colleges
Course
→ In 2011-12, the total number of students enrolled in (2011-12)
engineering and management colleges were 304,200 Engineering 705
and 86,905, respectively.
Master of Computer Application
644
(MCA)
→ The Hyderabad University and the Osmania University
are among the leading universities of the country. Master of Business Administration
926
(MBA)
Bachelor of Pharmacy 290
Polytechnics 251
Source: Andhra Pradesh Socio Economic Survey 2011-12
For updated information, please visit www.ibef.org INFRASTRUCTURE STATUS 29
30. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Social Infrastructure – Education … (2/2)
→ At the intermediate college level, courses are available
in the science, arts and commerce streams. Life-Sciences Institutes
• Centre for Cellular and Molecular Biology
→ Vocational courses are offered in the fields of • Centre for DNA Fingerprinting and Diagnostics
agriculture, engineering and technology, home • Indian Institute of Chemical Technology
science, paramedical, business and commerce, and • International Crop Research Institute for Arid and
humanities. Semi-Arid Tropics (ICRISAT)
• Directorate of Rice Research, National Academy of
→ In 201 1-12, there were 5,202 junior colleges with a Agricultural Research Management
total enrolment of 0.87 million students. • National Institute of Nutrition
• Indian Council of Agricultural Research Centres.
→ The Technical Education Department of Andhra
Pradesh supports 705 engineering colleges.
For updated information, please visit www.ibef.org INFRASTRUCTURE STATUS 30
31. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Social Infrastructure – Health
→ Andhra Pradesh has 1,624 Primary Health Centres
(PHCs), 281 Community Health Centres (CHCs), 58 Leading Hospitals in Hyderabad
Area Hospitals, 17 District Hospitals, 12,522 Sub- Apollo Hospital
Centres and 267 Urban Health Centres.
Yashoda Hospitals
→ There are 233 Hospitals with 16,1 beds under the
14 Care Hospital
control of Andhra Pradesh Vaidya Vidhana Parishad Wockhardt Kamineni Hospital
(APV VP), which manages secondary level hospitals in
the state. Nizam’s Institute of Medical Sciences
MNJ Institute of Oncology and Regional Cancer
Centre
Health Indicators (2010)
Indo-American Cancer Institute and Research
Birth Rate* 17.9 Hospital
Death Rate* 7.6 Global Hospital
Infant Mortality Rate** 46 Medwin Hospital
Life Expectancy at Birth (years) Medicity Hospital
Male (2002-06) 62.9 L V Prasad Eye Institute
Female (2002-06) 65.5 Krishna Institute of Medical Sciences
Sources: Ministry of Health and Family Welfare, Government of India,
Sample Registration System (SRS) Bulletin 2011 (www.censusindia.gov.in)
*Per thousand persons
** Per thousand live births
For updated information, please visit www.ibef.org INFRASTRUCTURE STATUS 31
32. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Cultural Infrastructure
→ Kuchipudi is the classical dance form from Andhra
Pradesh. It is known for its graceful movements and its
strong narrative / dramatic character.
→ There are several sports complexes in Hyderabad,
Visakhapatnam, Tirupati and other cities. Swimming Major Stadiums and Sports Complexes in Hyderabad
and tennis are the major sports although, other games Swarnandhra Pradesh Sports Complex
are also popular.
G. M. C. Balayogi Athletic Stadium
→ The Boulders Hill in Hyderabad, The Army Golf Course Gachibowli Indoor Stadium
in Secunderabad and the East Point Golf Club in Fateh Maidan Sports Complex
Visakhapatnam are well known golf courses in the
state. The Lal Bahadur Stadium
Aquatics Complex
→ The Tirupati temple in Southern Andhra Pradesh makes
Kotla Vijay Bhaskar Reddy Indoor Stadium
the state one of the leading religious tourism spots in
the country. SAAP Tennis Complex, Fateh Maidan
Shooting Range, Hyderabad Central University
→ AP Tourism promoted convention centres in Hyderabad
Rajiv Gandhi International Cricket Stadium
include Taramati Baradari, Hyderabad International
Convention Centre, Shilpa Kala Vedika, HITEX, Marriott
Convention Centre, Ramoji Film City, Katriya De Royal –
Convention Facilities.
For updated information, please visit www.ibef.org INFRASTRUCTURE STATUS 32
33. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Contents
Andhra Pradesh – An Introduction
Infrastructure Status
Business Opportunities
Doing Business in Andhra Pradesh
State Acts & Policies
For updated information, please visit www.ibef.org
33
34. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Key Industries
→ The natural resources, policy incentives and
Key Industries in Andhra Pradesh
infrastructure in the state are favourably suited for
investments in major sectors such as drugs and • Agro and Food-Based Industry
pharmaceuticals, biotechnology, IT and ITeS, mines • Biotechnology
and minerals, textiles, leather and tourism. • Bulk Drugs and Pharmaceuticals
• IT and ITeS
→ Andhra Pradesh is one of the foremost states to have • Mines and Minerals
developed sector-specific policies. • Textiles and Leather
• Tourism
→ Forming industrial clusters and developing • Automotive & Auto Components
infrastructure has been a key strategy of the state to • Gems and Jewellery
attract investments in various industries.
→ As of September 201 the state has received 7,346
1,
proposals for large scale industries, out of which,
3,132 proposals have gone into production with an
investment of US$ 15.4 billion, providing employment
opportunity to 479,900 persons and 525 proposals
with investment of US$ 18.0 billion are under
implementation stage.
For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 34
35. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Key Industries – IT and IT-enabled
Services … (1/2)
→ The share of IT exports from Andhra Pradesh
occupies around 13.9 per cent of national IT exports. Some of the Key Players
IT sector contributes to about 49 per cent of total • Mahindra Satyam
exports from all sectors in the state. • Microsoft
• IBM
→ Total IT exports from the state were about US$ 7.68 • Cognizant
billion in 2010-11.
→ Total employment generated by IT and ITeS industry in
the state increased from 264,375 in 2009-10 to 279,438
in 2010-11.
→ In 2010-1 employment generated by the IT sector has
1,
grown by 15,063.
→ Andhra Pradesh has emerged as a state that provides
the right climate for the growth of IT business and is
now one of the most preferred destinations in the
country.
→ As of July 2012, there were 43 IT/ITeS notified SEZs in
the state.
For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 35
36. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Key Industries – IT and IT-enabled
Services … (2/2)
→ Formerly, Satyam Computers, Mahindra Satyam was established in 1987 and has its global
Mahindra Satyam headquarters at Hyderabad and several offices in 39 countries including India. The company
provides software solutions to over 370 customers including four of the top ten electronics and
electrical equipment manufacturers, three of the top ten in aerospace and defence, two of the top
five chemicals manufacturers and four of the top five networking and communications equipment
manufacturers.
→ Microsoft India Development Centres (MSIDC) was established in 1998. It is located in Hyderabad
Microsoft on a 54-acre state-of-the-art campus and employs around 1,500 employees. The company focuses
on strategic and IP sensitive product development for Microsoft. It is Microsoft’s largest software
development centre outside the US. It has established centres of excellence for storage,
networking and mobility, and has filed over 270 patents in last five years.
IBM → IBM is a leading global IT services and solutions provider with operation in over 170 countries
across the world. Products offered by company’s India operations include software, storage,
systems and servers, semiconductors etc. IBM has been present in India since 1992. Since
inception, IBM in India has expanded its operations considerably with regional headquarters in
Bengaluru and offices in 14 cities including a global delivery centre in Hyderabad.
→ Founded as a captive arm of Dun & Bradstreet with headquarters in the US and operations in
Cognizant India. Cognizant now has over 50 development centres (including one in Hyderabad) and 25
regional sales offices, globally. Its services include business process outsourcing, application and
IT infrastructure services and business consulting. In 2011, the company earned revenue of US$
6.1 billion. In December 2009, Cognizant invited 120 personnel working in Invensys Rail, at
Hyderabad, to work on its global product research and development tie-up with the latter.
For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 36
37. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Key Industries – Pharmaceuticals and
Biotechnology … (1/2)
→ Hyderabad is the hub of the bulk-drugs industry,
accounting for one-third of the national production of Some of the Key Players
bulk drugs. The state produces a majority of 500 basic • Albany Molecular Research Inc (AMRI)
drugs produced in the country. • Novartis
• Matrix Laboratories Ltd
→ Jawaharlal Nehru Pharma City has been set up at • Indian Immunologicals Ltd (IIL)
Parawada, Visakhapatnam. This is an Integrated
Industrial Park for bulk drug manufacturers,
pharmaceutical companies and fine chemical
manufacturers. The Industrial Park is spread over in
2,143 acres, out of which 61 1.37 acres has been
notified as a pharmaceutical SEZ industrial park.
→ The State Government has helped to develop the
pharmaceutical and biotechnology industry through
specific policies promoting knowledge-based cluster
approach with financial incentives and appropriate
infrastructure support.
→ Presence of related educational infrastructure has also
helped the industry. The biotechnology incubation
centre was commissioned in 2008.
For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 37
38. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Key Industries – Pharmaceuticals and
Biotechnology … (2/2)
Albany Molecular → AMRI research centre is located in the ICICI Knowledge Park in Hyderabad. AMRI provides custom
Research Inc (AMRI) synthesis of scaffolds and building blocks, as well as preparation of reference standards. A second
laboratory for preparing larger amounts of pharmaceutical intermediates, starting materials and
other compounds is now operational as well. The centre's operations are fully integrated with US-
based resources.
→ Novartis has presence in over 140 countries and employs 115,000 people. Has been present in
Novartis India for the last 64 years in the healthcare sector. Has its healthcare-related IT/ITeS and R&D
facility in Hyderabad. The company has a development centre at Hyderabad which integrates
development franchises of the company through information technology. The facility also operates
as a global centre for marketing and sales, sourcing, business planning and analysis. In 2011, the
company earned revenue of US$ 58.5 billion.
→ Mylan Laboratories Ltd (formerly known as Matrix Laboratories Ltd) is a subsidiary of US-based
Mylan Laboratories Ltd Mylan Inc. The company has four USFDA-approved facilities located at Hyderabad and one
USFDA-approved facility located at 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. In 2011, total revenue of the company was US$ 671.4 million.
Indian Immunologicals → IIL produces a range of veterinary vaccines such as Foot and Mouth Disease (FMD) vaccines, anti-
Ltd (IIL) rabies vaccines, bacterial vaccines, canine vaccines and a host of other combined vaccines. IIL's
range of human vaccines comprises of rabies, Hepatitis B, measles, MMR and DPT. It has one of
the leading research and development centres in India. The company has headquarters and
manufacturing facilities in Hyderabad, an institute in Ooty and an overseas office in Vietnam.
For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 38
39. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Key Industries – Apparel and Textiles
→ The state is a leading producer of cotton, with a production of about 4.35 million bales (bales of 170 Kgs each) in
2011-12 (As of January 5, 2012). Medium grade and superior long staple varieties of cotton are predominantly
grown in the state.
→ The State Government has identified textile sector as one of the long term growth engines. To utilise potential of
the sector, the State Government has already established five Apparel Export Parks (AEPs) and seven textile
parks. It proposes to establish another 5 Apparel Export Parks (AEPs) and 12 Textile Parks in the state.
→ There are over 80 spinning mills including a number of 100 per cent export-oriented units with state-of-the-art
machinery, producing cotton, synthetic and blended yarns.
→ Between April 2006 and February 2012, 55 handloom clusters were sanctioned under Integrated Handlooms
Development Scheme (IHDS) in the state.
→ The state has, moreover, emerged as a large textile processing centre. Over 100 units are there in the state with a
processing capacity of around 13 million metres of cloth per annum.
→ The number of power looms in the state aggregates to around 44,000 employing approximately 110,000 workers.
→ Apparels, fabrics and furnishings have been identified as potential products by the state. Total handloom &
textiles exports from the state stood at around US$ 0.40 billion in 2010-11.
For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 39
40. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Key Industries – Agri and Processed
Food Sector … (1/2) → As per the advance estimates, the area under food
grains during the year 201 1-12 is expected to be 7.0
million hectares in the state.
→ A variety of agro-climatic conditions in the state make
it conducive for growing a variety of horticulture Some of the Key Players
crops such as fruits, vegetables, spices, tuber crops,
plantation crops and floriculture. • CongAgra Foods
• Cargill India Pvt Ltd
→ The state is one of the largest producer of rice in • ITC
India. It is a leading producer of cash crops such as • Andhra Pradesh Dairy Development
tobacco, groundnut, dry chilly, turmeric, oilseeds, Cooperative Federation (APDDCF)
cotton, sugarcane and jute.
→ The state is one of the largest producers of
horticulture products with production of around 26.58
million tonnes (excluding cut flowers and coconuts) in
2010-11.
→ The state produces some of the finest varieties of
mangoes, grapes, guavas, papayas and bananas.
→ Andhra Pradesh ranks 1st in production of sweet
orange, lime/lemon, papaya and oil palm.
For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 40
41. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Key Industries – Agri and Processed
Food Sector … (2/2)
ConAgra Foods → ConAgra Foods Inc, USA, is one of the world’s leading food companies. It has partnered with ITC
Agro and established an R&D centre to adapt food technologies to Indian conditions. The
company has dominant market position in the edible oils and branded foods sectors. Brands
include Sundrop, Healthy World, ACT II and Rath. Agro Tech Foods Limited, an affiliate of
ConAgra Foods have their registered office at Secunderabad.
→ Cargill maintains a number of businesses in India, with operations including the handling and
Cargill India Pvt Ltd processing of a wide range of products, including refined oils, grain and oilseeds, sugar, cotton
and animal feed. In addition, Cargill’s presence in India has been growing since it began a joint
venture operation in 1987. In 2006, Cargill entered into a joint venture and subsequently owned a
leading shrimp feed manufacturing farm in Rajahmundry. It has also a joint venture 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. In 2010-11, the total
revenue of the company was around US$ 7.0 billion. A substantial part of ITC’s agri-business is
located in Andhra Pradesh. The company has one unit each at 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 the farmers.
Andhra Pradesh Dairy
Development Cooperative → APDDCF runs 12 dairy plants and manufactures milk products under the Vijaya brand name.
Federation (APDDCF) These plants together have a capacity of 2,437 thousand litres per day. Products include butter,
Ultra-High-Temperature (UHT) milk, milk powder, ghee, flavoured milk, khoa, kulfi and processed
cheese. It is one of the 15 dairy cooperatives operating under the National Dairy Development
Board (NDDB).
For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 41
42. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Key Industries – Agriculture and Allied
Industry … (1/2)
Forestry Fisheries
• Andhra Pradesh has 6.23 • The fisheries sector has been identified as one of the six growth engines in agriculture sector
million hectares of forest under, Vision-2020 of the state.
area, which accounts for
22.65 per cent of the total • Among Indian states, Andhra Pradesh is one of the largest producers of brackish-water shrimp
geographical area of the and fresh-water prawn production.
state.
• In 2010-11, the total production of fish in the state was 1.56 million tonnes compared to 1.29
• In 2011-12, the contribution million tonnes a year ago. Production of fish comprised of around 1,270,000 tonnes of inland fish
of forestry & logging to (including fresh water prawn & brackish water shrimp) and around 290,000 tonnes of marine
the GSDP was estimated fish.
at US$ 1,233 million.
• The contribution of fisheries to GSDP in 2011-12 was estimated to be US$ 3.05 billion.
• The Andhra Pradesh Government has entered into an agreement with the US-based World
Tuna Development International (WTDI) to develop tuna fishery in the Bay of Bengal.
• The Government have sanctioned US$ 2.94 million for construction of four Fish Landing Centres
in the state under Assistance to States for Developing Export Infrastructure and other Allied
Activities(ASIDE) funds.
Sources: Indian Institute of Economics, www.iieasia.in, Andhra Pradesh Socio Economic Survey 2011-12,
www.aponline.gov.in,
For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 42
43. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Key Industries – Agriculture and Allied
Industry … (2/2)
→ Animal husbandry is rapidly expanding in the state
and is playing a significant role in improving the rural Production Production
Product
(2010-11) (2009-10)
economy.
Milk (million
11.2 10.4
tonnes)
→ This sector provides gainful employment to a large
number of small and marginal farmers and Egg (in million) 20,130 19,390
agricultural labourers and enhance their economic Meat (million
status. 0.74 0.68
tonnes)
→ Activities of the animal husbandry department have Source: Andhra Pradesh Socio Economic Survey 2011-12.
been oriented towards improving health of livestock
and increased production of milk, eggs and meat.
→ As of March 201 the state had 5,015 institutes
1,
supporting production in the animal husbandry sector
and 5,300 institutes for health of livestock.
For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 43
44. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Key Industries – Petroleum, Chemicals
and Petrochemicals
→ According to the Ministry of Petroleum and Natural Gas, the net natural gas production was about 1,383 million
cubic metre for 2010-1 The state’s Krishna-Godavari basin area has a total hydrocarbon resource base of 1,130
1.
million metric tonnes.
→ Andhra Pradesh is set to become 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 has set
up a Special Purpose Vehicle (SPV), the Andhra Pradesh Gas Infrastructure Corp Limited as a joint venture
between two state-owned entities. The infrastructure provider for industries in the state, Andhra Pradesh
Industrial Infrastructure Corporation (APIIC), holds 51 per cent in the SPV and AP Genco, holds the balance.
→ Hindustan Petroleum Corporation is setting up a Diesel Hydrotreater Unit of 2.2 MMTPA at Visakhapatnam refinery
with an investment of US$ 569 4 million. The project is in the stage of completion.
→ In October 2009, the Department of Petrochemicals, Government of India, signed a Memorandum of Agreement
(MoA) with Andhra Pradesh Government for setting up a Petroleum, Chemicals and Petrochemicals Investment
Region (PCPIR) in the Visakhapatnam-Kakinada region as an industrial cluster. The investments generated in the
PCPIR are estimated to be around US$ 74.6 billion. The State Government is in the process of finalising the Master
Plan and obtaining Environmental Clearances. The total area of PCPIR is 603.58 square kilometers.
MMTPA: Million Metric Tonne Per Annum
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45. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Key Industries – Tourism … (1/2) Arrival of International Tourist in Andhra Pradesh (in ‘000)
1000
770 789 795
→ Andhra Pradesh is known for its pristine beaches, 800
sacred places of worship, lush green forests, spicy
600
cuisine and hospitable people.
400
→ With tourist attractions such as Charminar, Golconda
Fort, and Ramoji Film City, Araku Valley, Borra Caves, 200
Tirupati Balaji Temple, and Puttaparthi Saibaba, the
state offers attractive investment opportunities to 0
developers and investors. 2007 2008 2009
Arrival of Domestic Tourist in Andhra Pradesh (in million)
→ The state ranked 12th in international tourist arrivals
180
and accounted for 1.8 per cent of the total 157.5
160
international tourist arrivals in India in 2010. With 21 127.9 132.7
per cent share of domestic travelers, the state ranked 140
first in domestic tourist arrivals. 120
100
→ Forty projects have been sanctioned for the state by 80
the Ministry of Tourism during the Eleventh Five Year 60
Plan period (2007-2012, up to March 201 at a project
1), 40
outlay of US$ 42.53 million. 20
0
→ The State Government has identified Hyderabad, 2007 2008 2009
Visakhapatnam, Tirupati, Vijayawada, Nagarjunasagar Source: Ministry of Tourism, Government of India
and Warangal for tourism development.
For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 45
46. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Key Industries – Tourism … (2/2)
Upcoming Mega Projects -
→ Kadapa Heritage Circuit
→ Tirupati Heritage Circuit
→ Charminar Area
→ Mega Park near Nagarjuna Sagar
Sources: Ministry of Tourism , Government of India
and Andhra Pradesh Socio Economic Survey 2011-12
For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 46
47. AUGUST
Andhra Pradesh 2012
THE RICE GRANARY OF INDIA
Key Industries – Leather
→ The state is a major producer of hides and skins,
Leather Industries Development Corporation (LIDCAP)
producing about 19 million pieces per annum,
constituting around 10 per cent of the country’s LIDCAP is the nodal agency for leather industry
output. development in the state.
Plans to establish 72 mini-industrial parks on 25 acres
→ Around 34 large and medium tanneries in the state each of land for processing raw material, 16 medium
produce about 40 million sq ft of processed hides and industrial parks of 100 acres each for processing semi-
skins per annum. finished leather, six mega industrial parks of more than
300 acres each, including an International Leather
Complex at Krishnapatnam (KILC).
→ Hyderabad and Nellore are the key leather production
clusters in the state. KILC has world class infrastructure for leather tanning
and leather processing. The project finance is supported
by the Government of India, Government of Andhra
→ The government provides financial assistance in the Pradesh and has private participation in the Special
form of investment grants to the extent of 30 per cent Purpose Vehicle (SPV).
of cost of plant and machinery for Small Scale KILC is located at Krishnapatnam in the Nellore district in
Industries (SSI) and 20 per cent of cost of plant and an area of 412 acres near the sea coast. It is proposed that
machinery for other units, subject to a ceiling of US$ KILC will house about 25 tanning units in a floor area of
120,000 for technology up-gradation or/and 250 acres of land and about 21 leather processing units
expansion. with capacities ranging between six and 25 tonnes and a
total capacity of 300 tonnes in a floor area of 220 acres.
Source: Leather Sector in AP, ILC Profile, LIDCAP
Website: www.lidcap.org, www.aponline.gov.in
For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 47