Telangana State Report April 2018

For updated information, please visit www.ibef.org April 2018
TELANGANA
PHARMACEUTICAL HUB OF INDIA
GOLKONDA FORT NEAR HYDERABAD, TELANGANA

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

For updated information, please visit www.ibef.orgTELANGANA3
 Hyderabad is the major IT hub of the state across the country. During 2016-17, the value of IT exports from
the state of Telangana was recorded at US$ 13.27 billion. The launch of T-Hub in November 2015 has
created most energetic community of entrepreneurs across the world for boosting the success stories of the
start-ups in India.
EXECUTIVE SUMMARY
 At current prices, Telangana’s GSDP was estimated at US$ 113.68 billion during 2017-18.
 Services sector is the major contributor in the GSDP of Telangana.
Economic growth
driven by service sector
Source: Telangana State Statistical Year book,2015, MOSPI, Budget 2018-19
Hyderabad – The IT
hub of the state
 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-
private enterprises.
Promoting tourism &
historical past
 In Budget 2018-19, total expenditure of the state increased 22.42 per cent to Rs 1,74,48,228.34 lakh (US$
27.07 billion).^
Growth in annual
budget
Note: ^From Revised Estimate of 2017-18

ADVANTAGE: TELANGANA
Rich labour pool
 Majority of the prominent educational universities and
institutions Telangana are located in Hyderabad. These
institutions provides a massive pool of labour which
acts as a catalyst in the development of the state.
 The state government has announced scholarships to
attract more youth to these institutions.
Policy and
institutional support
 Under the Department of Information Technology,
Electronics & Communications, the Government of
Telangana introduced three new policies in 2016,
namely, Telangana IT Policy, 2016, Telangana
Electronics Policy, 2016 and Telangana Innovation
Policy, 2016.
Availability of
readymade capital
 Telangana accounts for easy access to capital along
with infrastructure which is benefiting the state.
 Majority of the multinational companies holds
production base in Hyderabad.
 Information technology and pharmaceutical sectors are
the fastest growing sector of the state and driving the
economic development of Telangana.
March 2018
Installed
power
capacity:
15,087.13
MW
2018E
Installed
power
capacity:
17,000 MW
Advantage
Telangana
Growing economy and improving infrastructure
 Telangana’s GSDP grew at a CAGR of 12.60 per cent
between 2011-12 and 2017-18.
 The state government plans to build more airports in
the state to improve connectivity.
Source: Telangana State Statistical Year Book, 2015, GSDP: Gross State Domestic Product, Central Electricity Authority
Note: E - Estimate

TELANGANA VISION
Source: Telangana Government
Governance
 Ensure people centric,
transparent and corruption free
development.
 To take steps to eradicate
corruption.
Power
 In next three years, Telangana is
expected to be developed as a
power surplus state
Promoting
investments
 Plans to announce industrial policy to
encourage investments in state.
 Setting up of faster clearances, a
single window system.
Quality of life of
people
 To develop Hyderabad as a slum free
city.
 Effective implementation of welfare
schemes.
Infrastructure
Promoting
research
 Aim to make Telangana the Seed
Bowl of India. Telangana is highly
suitable for the growth of seeds.
 Endorsing greenhouse technology
and pilot projects.
 Hyderabad to have most advanced
infrastructure facilities.
 To have two new airports in
Hyderabad, near Shamirpet,
Jawaharnagar and Ghatkesar.
Vision
 No negotiation on maintaining
law & order in the state.
 Encouraging people friendly
police officials.
 Installing CCTV cameras for
better vigilance.
 Waiver of agricultural loans up to
Rs 1 lakh.
 Technological advancement in
agriculture
 Government to encourage research
in agricultural universities.
Agriculture Law & order

TELANGANA FACT FILE
Source: Population Census 2011, Telangana State Statistical Abstract, May 2015
 In June 2014, Telangana was introduced as the 29th state of the
India, Hyderabad is the capital of the state.
 Telangana is situated on the Deccan Plateau. It is home to three
national parks and eight wildlife sanctuaries.
 It 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.
 Telugu is the generally spoken language in the state. Hindi, Urdu and
English are also usually spoken.
 Hyderabad, Secunderabad and Warangal are the key cities in the
state.
Parameters Telangana
Capital Hyderabad
Geographical area (lakh sq. km) 114,840
Administrative districts (No) 31
Population density (persons per sq. km) 312
Total population (million) 35.2
Male population (million) 17.7
Female population (million) 17.5
Sex ratio (females per 1,000 males) 988
Literacy rate (%) 66.5
Source: TS Portal

TELANGANA IN FIGURES … (1/2)
Parameter Telangana All states Source
Economy 2017-18 2017-18
GSDP as a percentage of all states’ GSDP 4.38 100.0
Directorate of Economics & Statistics of Telangana,
Central Statistics Office
GSDP growth rate (%) 14.1 9.8
Per capita GSDP (US$) 3,000.93 1,975.05
Physical Infrastructure
Installed power capacity (MW) 15,087.13 344,002.39 Central Electricity Authority, as of March 2018
Wireless subscribers (No) 84,639,369
1
1,156,867,852
Telecom Regulatory Authority of India, as of
February 2018
National highway length (km) 3,786 122,432
NHAI, Roads and Building Department-
Government of India, as of February 2018
Airports (No) 1
2
125 Airports Authority of India
Note: 1For undivided State, 2International operational airport

TELANGANA IN FIGURES … (2/2)
Note: 1Including Andhra Pradesh, PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System
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
FDI equity inflows (US$ billion) 14.524
1
367.932
Department of Industrial Policy & Promotion, April
2000 to December 2017
Industrial Infrastructure
PPP projects Completed & Operational (No) 14 740
DEA , Ministry of Finance, Government of India,
December 2017
Operational SEZs (No) 30 222
Notified as of September 2017, Ministry of
Commerce & Industry, Department of Commerce,
December 2017

ECONOMIC SNAPSHOT – GSDP
GSDP of Telangana at current prices
 At current prices, Telangana’s GSDP stood at Rs 7.33 trillion
(US$ 113.68 billion) in 2017-18.
 Between 2011-12 and 2017-18, GSDP of the state grew at a
CAGR of 12.60 per cent.
Source: Telangana Socio Economic Outlook 2018
74.96
73.75
74.64
82.72
86.06
95.69
113.68
3.59
4.02
4.52
5.06
5.63
6.42
7.33
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
0.00
20.00
40.00
60.00
80.00
100.00
120.00
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
US$ billion Rs trillion
CAGR (in Rs) 12.60%
GSDP per capita of Telangana at current prices
2,100.78
2,046.47
2,050.53
2,249.98
2,317.58
2,551.40
3,000.93
1,00,732.58
1,11,430.08
1,24,057.03
1,37,586.08
1,51,708.95
1,71,173.18
1,93,410.15
0
50000
100000
150000
200000
250000
0.00
500.00
1000.00
1500.00
2000.00
2500.00
3000.00
3500.00
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
US$ Rs
CAGR (in Rs) 11.49%
 Telangana’s per capita GSDP^ increased to Rs 1,93,410.15
(US$ 3,000.93) during 2017-18 from Rs 1,00,732.58 (US$
2,100.78) in 2011-12.
 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
ECONOMIC SNAPSHOT – NSDP
NSDP of Telangana at current prices
67.81
66.86
67.48
74.62
77.66
86.50
103.17
3.25
3.64
4.08
4.56
5.08
5.80
6.65
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
0.00
20.00
40.00
60.00
80.00
100.00
120.00
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
US$ billion Rs trillion
CAGR (in Rs) 12.66%
 At current prices, Telangana’s net state domestic product
(NSDP) was estimated at Rs 6.65 trillion (US$ 103.17 billion) in
2017-18.
 Between 2011-12 and 2017-18, the average annual NSDP
growth rate was about 12.66 per cent.
 Telangana’s per capita NSDP grew from Rs 91,121.00 (US$
1,900.33) during 2011-12 to Rs 1,75,534.00 (US$ 2,723.57)
over 2017-18.
 Average per capita NSDP increased at a CAGR of 11.55 per
cent between 2011-12 and 2017-18.
NSDP per capita of Telangana at current prices
1,900.33
1,855.04
1,853.92
2,029.50
2,091.43
2,306.36
2,723.57
91,121.00
1,01,007.00
1,12,162.00
1,24,104.00
1,36,905.00
1,54,734.00
1,75,534.00
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
0
500
1000
1500
2000
2500
3000
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
US$ Rs
CAGR (in Rs) 11.55%

ECONOMIC SNAPSHOT – PERCENTAGE
DISTRIBUTION OF GSDP
 At a CAGR of 15.99 per cent, tertiary has been the fastest growing
sector in the state between 2011-12 and 2017-18.
 The primary sector increased at a CAGR of 10.59 per cent between
2011-12 and 2017-18, followed by secondary sector (CAGR of 2.63
per cent).
 In 2017-18, the tertiary sector contributed 59.03 per cent to the
state’s GSDP at current prices. It was followed by the primary sector
(16.40 per cent) and secondary sector (14.80 per cent).
Percentage distribution of GSDP (Current prices)
18.27% 16.40%
25.81%
14.80%
49.41% 59.03%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011-12 2017-18
Primary Sector Secondary Sector Tertiary Sector
10.59%
15.99%
2.63%
CAGR (in Rs)
Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office

ECONOMIC SNAPSHOT – AGRICULTURAL
PRODUCTION
 During 2017-18, 606,000 hectares of area was under cultivation of
maize, whereas pulses were cultivated over an area of 534,000
hectares, in the state.
 In 2017-18, Telangana produced 6.56 million tonnes and 513,000
tonnes of rice and pulses, respectively.
 The state government has proposed an amount of US$ 2.45 billion in
State Budget 2018-19 for Agriculture and Marketing.
 Production of fruits, vegetables and plantation crops reach 1.77
million tonnes, 1.52 million tonnes and 1.31 million tonnes,
respectively, in 2017-18*.
Source: Telangana Socio Economic Outlook 2018, Telangana State Budget 2016-17
Crop
Annual Area
(‘000 hectare)
Annual Production
(‘000 tonnes)
2017-18 2017-18
Rice 1,972 6,558
Cereals & millets 2,653 8,988
Pulses 534 513
Fruits 164.83 1765.90
Cotton 1903 43.23
Production of horticulture crops (million MT)
1.20
1.65
1.44
1.77
1.52
1.31
0.00
0.50
1.00
1.50
2.00
Production of Fruits Production of
Vegetables
Production of
Plantation Crops
2016-17 2017-18*
Annual area & production of key crops (2017-18)
Note: 2017-18* - As per 1st advance estimates

ECONOMIC SNAPSHOT – INVESTMENTS & EXPORTS
 In January 2018, the state government held talks with Japan
International Cooperation Agency (JICA) and South Korea for
investments in the second phase of Hyderabad Metro, Pharma City,
Kakatiya Textile Park.
 Additionally, a legal framework has been provided in the policy to
make the existing industries more competitive, which is expected to
boost the quality of goods manufactured in the state.
 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.
 According to the Department of Industrial Policy & Promotion (DIPP),
cumulative FDI inflows(1) in Telangana from April 2000 to December
2017, totalled US$ 14.524 billion.
 In January 2017, the state government signed MOUs for several
investments and strategic partnerships, worth US$ 503.04 million.
The investment also includes setting up of Life Sciences
Infrastructure Fund in the state.
 The number of investment intentions filed were 10 and the proposed
investments amounted to Rs 1,123 crore (US$ 174.24 million) till
February 2018.
Investment intentions in terms of IEMs filed, LOIs/DILs issued
in Telangana
176 132 132 134 117 145 139 114
10
2,267.90
2,090.90
1,822.20
1,307.60
1,032.70
1,591.43
3,294.06
2,503.71
174.24
0
500
1000
1500
2000
2500
3000
3500
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Number of Investment Intentions
Proposed Investments (US$ Million)
Source: Department of Industrial Policy & Promotion, Government of India, Ministry of Commerce & Industry, Government of India
Note: (1) Including Andhra Pradesh, IEMs – Industrial Entrepreneur Memoranda, LOIs – Letters of Intent, DILs – Direct Industrial Licences, 2018* - up to February 2018

ECONOMIC SNAPSHOT – IRRIGATION....(1/2)
 The major sources for water for irrigation purpose in the state are
Godavari and Krishna Rivers & branches. Telangana also uses water
from tanks & ponds for irrigation.
 During 2015-16, share of Telangana in the water of Godavari &
Krishna was recorded to be 1,250 thousand million cubic feet.
Further, the state also has a share of 150 thousand million cubic feet
in the surplus water. Moreover, Telangana’s Chief Minister
accomplished an understanding with Maharashtra’s Chief Minister
for fulfilling the projects which are estimated to be developed over
Pranahita, Godavari & Penganga rivers.
 In addition to these new projects, the state government is also trying
to finish the major & medium projects, which are under process in the
state.
 In Telangana, every year around 9,000 tanks are being taken up for
their restoration under Mission Kakatiya and during 2016-17, the
restoration of the tanks was done with the people’s active
participation. Moreover, the phase-III of restoration is expected to be
initiated soon.
 In State Budget 2017-18, it was proposed to take up Manair River
Front Project at an estimated cost of US$ 74.58 million.
Source: Irrigation and CAD Department, Government of Telangana
Major irrigation projects Numbers
Completed 13
Ongoing 17
Medium irrigation projects Numbers
Completed 37
Ongoing 9
Irrigation projects status (as of June 2017)
2014-15 2015-16
Gross Irrigated Area 2,529 2,028
Net Irrigated Area 1,726 1,486
Irrigation Intensity
2014-15 1.47
2015-16 (Kharif) 1.01
Gross Irrigated Area, Net Irrigated Area (‘000 ha)

ECONOMIC SNAPSHOT – IRRIGATION....(2/2)
Schemes and Projects Salient features
Palamuru-Ranga Reddy Lift Irrigation Scheme
 To make available drinking water to Hyderabad from Krishna river
 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.
Major & Minor Irrigation Schemes and Projects being planned by Telangana
Projects Investment
Major and medium irrigation 3,396.57
Minor irrigation 425.70
C.A.D 38.94
Flood control and damage 17.76
Irrigation sector investment – 2018-19 (US$ million)
Source: Telangana State Portal

BUDGET 2018-19
 In 2018-19, the overall budgeted allocation amounted to US$ 27.07
billion for various sectors of Telangana. The allocation of funds was
about 22.42 per cent higher in comparison with the revised estimates
of 2017-18.
Source: Telangana State Portal, Department of Finance
Sector 2018-19
Agriculture, allied activities and rural
development
3.23
Irrigation 3.31
Power 0.59
Social Services 7.06
Transport 0.69
Others (Industries, General Economic
Services etc)
1.38
Annual Budget (Estimates in US$ billion)

Source: Maps of India
PHYSICAL INFRASTRUCTURE – ROADS
Source: Roads & Buildings Department, Government of Telangana, Budget 2016-17
 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.
 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-
transfer asset projects. The process to monetise the Nehru Outer
Ring Road (NORR) has also been initiated. The project is expected
generate a significant amount of extra-budgetary resources that can
be used for other infrastructure assets.
Road type Road length (km)
National highways 3,786*
State highways 2,731
Major district roads 13,058
Other district roads 9,161
Total 28,290
Note: *AS of February 2018

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

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

PHYSICAL INFRASTRUCTURE – AIRPORTS … (2/2)
Source: Airport Authority of India
Hyderabad aircraft movement (nos.)
Hyderabad passenger traffic (million)
 Passenger traffic at Hyderabad airport increased by 20.26 per cent
year-on-year to 18.16 million in FY18.
 Aircraft movement at Hyderabad airport increased by 14.43 per cent
year-on-year to 1,49,581 in FY18.
 As per statistics of Airports Authority of India, freight traffic at
Hyderabad airport increased by 10.10 per cent year-on-year to
134.14 million tonnes in FY18.
80,016
82,658
99,013
90,151
87,741
94,057
1,05,772
1,30,713
1,49,581
0
20,000
40,000
60,000
80,000
1,00,000
1,20,000
1,40,000
1,60,000
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
6.51
7.60
8.44
8.30
8.65
10.40
12.38
15.10
18.16
0.00
5.00
10.00
15.00
20.00
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18

PHYSICAL INFRASTRUCTURE – POWER
 TSERC is the prime authority for power generation in Telangana.
Telangana Power Generation Corporation Limited (TSGENCO) and
Transmission Corporation of Telangana Limited (TSTRANCO) are
the generation and transmission entities of the state.
 As of March 2018, the total installed power capacity of Telangana
state was 15,087.13 MW. Out of this, 7,572.65 MW was contributed
by state utilities, 5,399.63 MW by private utilities and 2,114.85 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
 The state is aiming to achieve a power generation capacity of 28
GW. In November 2017, the state government announced it is
planning to invest around US$ 14 billion to make the state a ‘power
surplus’ state.
 In April 2017, ReNew Power, an Indian renewable independent
power producer, commissioned the construction of the largest PV
plant in Telangana with a capacity of 143 MW.

KEY PUBLIC-PRIVATE PARTNERSHIP (PPP)
PROJECTS…(1/2)
Source: Ministry of Commerce & Industry, Department of Commerce
Project name Sector Type of PPP
Project Cost
(US$ million)
Stage
Hyderabad Multi-Modal Suburban
Transportation Project - Phase II
Railway track, tunnel,
viaducts, bridges
Build-Own-Operate-Transfer (BOOT) 58.7 Under construction
Roadways between Hyderabad -
Bangalore Section
Roads and bridges Build-Operate-Transfer (BOT) 103.9 Under construction
Road Upgradation (Kadtal-Armur NH-
7) Project
Roads and bridges
Build-Operate-Transfer (BOT)
Annuity
42.0 Operational
Road Upgradation (Islam Nagar-Kadtal
NH-7) Project
Roads and bridges
Build-Operate-Transfer (BOT)
Annuity
79.2 Operational
Road Upgradation (Armur-Adloor
Yellareddy) Project
Roads and bridges Build-Operate-Transfer (BOT) 58.3 Operational
Municipal Solid Waste to Energy in
Hyderabad (Hyderabad,
Gadamaguda, R.R.District)
Solid waste
management
Build-Own-Operate-Transfer (BOOT) 13.0 Operational
Municipal Solid Waste to Energy in
Hyderabad
Solid waste
management
Build-Own-Operate-Transfer (BOOT) 5.2 Operational
Integrated Solid Waste Management
(3800 TPD) for Hyderabad
Solid waste
management
Design-Build-Finance-Operate-
Transfer (DBFOT)
137.0 Under construction
Hyderabad-Yadgiri Four-Lane NH-202
Road Project
Roads and bridges
Design-Build-Finance-Operate-
Transfer (DBFOT)
68.4 Operational
Hyderabad International Airport Airports Build-Own-Operate-Transfer (BOOT) 378.6 Operational
Note: NA – Not Available

KEY PUBLIC-PRIVATE PARTNERSHIP (PPP)
PROJECTS…(2/2)
Project name Sector Type of PPP
Project Cost
(US$ million)
Stage
Three Star Hotel at Madhapur,
Hyderabad
Tourism Build-Operate-Transfer (BOT) 0.8 Under construction
Multiplex & Shopping Mall at
Secunderabad
HITEC City Cyberabad Hyderabad
Common infrastructure
for industrial parks, SEZ
Not Available 68.7 Operational
Golf Course At Naya Quilla Hyderabad Tourism Build-Operate-Transfer (BOT) 1.9 Under construction
Food Courts Project at Lower
Tankbund Road Hyderabad
Source: Ministry of Commerce & Industry, Department of Commerce

DEVELOPMENT PROJECTS: SEZs…(1/2)
Source: Ministry of Commerce & Industry, Government of India
 For the supervision & execution of SEZs in the state, Telangana
State Industrial Infrastructure Corporation is the concerned authority.
 In August 2017, a proposed electronic hardware SEZ got clearance
from the State-level Expert Appraisal Committee (SEAC). The SEZ is
proposed to be set up over 339.75 acres in Maheshwaram at a cost
of US$ 18 million.
 As of December 2017, Telangana had 151 SEZs; of which, 30 are
operational, 57 are notified & 64 are formally approved
 As of September 2017, the total area of notified SEZs in Telangana
stood at 1,992.28 hectares. 22
2
1
1
1
1
1 1
IT/ITES
Biotech
Gems & Jewellery
Aviation Sector
Semiconductors
Aerospace Engineering
Industries
Pharmaceuticals
Electronic hardware
and software
Sector-wise operational SEZs in Telangana (December 2017)

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

PHYSICAL INFRASTRUCTURE – TELECOM
 According to the Telecom Regulatory Authority of India (TRAI),
undivided Andhra Pradesh had nearly 84.64 million wireless
subscribers and 1.49 million wireline subscribers as of January
2018.
 As of March 2017, there were 5,788 post offices in the state.
 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.
 In November 2016, Telangana State Road Transport Corporation, in
conjugation with Airtel, announced Wi-Fi services for passengers of
metro luxury buses.
 In December 2016, telecom company ‘Idea’ announced investment
of US$ 14.7 million for developing 4G infrastructure in Telangana.
 In order to provide broadband services to consumers in the state,
Bharat Sanchar Nigam Ltd. (BSNL) is tying up with local cable
operators. As of May 2017, the company already tied up with
operators in Warangal and Karimnagar.
Source: Telecom Regulatory Authority of India, Ministry of Communications & Information Technology, Telangana Statistical Yearbook – 2015
Wireless subscribers 84,639,369
Wireline subscribers 1,492,315
Tele density (in %) 96.03
No. of GPs in Phase-I 2,017
Pipe laid (kms.) 4,538
Cable laid (kms.) 4,488
GPs for which cable laid 2,038
No. of GPs Lit 206
Telecom Infrastructure (As of December 2017)1
Performance status of NOFN project (as of December 2017)
Note: 1 For undivided state

SOCIAL INFRASTRUCTURE – EDUCATION … (1/3)
 Telangana’s share in educational institutions includes:
• 3 central universities located in Hyderabad: University of
Hyderabad, English & Foreign Languages University & Maulana
Azad National Urdu University.
• Technological institutes such as IIT, IIIT & NIT.
• Nalsar Law University, Indian School of Business as well as
private institutes such as Symbiosis & TISS are located in the
locality of Hyderabad.
 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
for school education and higher education, respectively.
 As of March 2017, to create awareness & encourage the students,
the state government has decided to give US$ 2,974.86 as incentive
to each of those students who have secured admission in the
National Defence Academy & have successfully completed their
training.
Source: Census 2011, Telangana Socio-Economic Survey 2018, State Budget 2018-19, New Articles
Literacy rate 66.5
Male literacy 74.9
Female literacy 57.9
Literacy rates (%)
Note: IT- Indian Institute of Technology, IIIT- International Institute of Information Technology, NIT- National Institute of Technology,
Year
No. of
schools
Enrolment
Class 6-10 Intermediate
Total
Strength
2015-16 182 72,283 13,897 86,180
2016-17 192 86,827 21,049 1,07,876
2017-18 194 91,919 33,711 1,25,630
Year-wise Enrolment Details

 As per budget 2017-18, the state government plans set up a total of
119 new English medium residential schools in the state, which
would provide quality education to more than 75,000 students.
 T-Hub, a start-up incubator launched by the Telangana Government
in March 2017, entered into an agreement with Anthill, a Hyderabad-
based speed scaling platform for early-growth stage start-ups, to
launch an international start-up initiative, the Smart Women Angels
Network (SWAN).
 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-
18, with an aim to fill the vacant seats for teachers in various schools
and universities across the state.
 In June 2017, the National Institute of Tourism & Hospitality
Management (NITHM) signed a Memorandum of Understanding with
the Indian Overseas Bank Gachibowli Branch to facilitate education
loans to the students, without any guarantee or collateral security.
 Government of India released Rs 440.50 crore (US$ 68.35 million)
under Sarva Shiksha Abhiyan for Telangana in 2017-18*.
Source: State Budget 2016-17, 2017-18
Central funds released under Sarva Shiksha Abhiyan (US$
million)
133.13
33.27
62.27
68.35
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2014-15
2015-16
2016-17
2017-18*
Note: 2017-18* - up to december 26, 2017

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
Proposed medical colleges in Telangana with investment (US$ million)
Source: Telangana State Statistical Abstract

SOCIAL INFRASTRUCTURE – HEALTH … (1/2)
 Out of the country’s pharma production, Telangana accounted for
one-third share; the state government plans to enhance it further by
promoting a pharma city.
 Some of the initiatives by the state government to promote the
healthcare sector are as follows:
• To double the budget allocation for the healthcare sector from the
present 2% & increase public health delivery services.
• Supporting private players who are willing to invest in the
healthcare sector.
• 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
Nizam's Institute of Medical Sciences (NIMS) of Hyderabad.
• In January 2017, Telangana tied up with Cerestra Advisors to set
up country’s 1st Life Sciences Infra Fund, with a corpus of
US$148.74 million.
• The state government in February 2017, launched an initiative
“RICH – Research & Innovation Circle” with an initial investment
US$7.43 million to make research establishments such as CCMB,
IICT, LV Prasad Eye Institute and ICRISAT.
• In June 2017, the state government inaugurated the largest
dedicated medical devices park of the country. Companies such
as Apollo Hospitals, Cyient Ltd. Sandor Medicaids, and 11 other
companies have already been allocated 50 acres in the 250-acre
park in Sultanpurof Sangareddy district.
Source: Department of Health, Medical & Family Welfare & National Health Mission, Government of Telangana, Telangana Budget 2016-17
Primary health centres 837
Sub centres 4,745
Community health centres 96
Sub District hospitals 57
District hospitals 15
Health infrastructure (as of May 7, 2018)
2016-17 910.55
2017-18 927.58
2018-19 1,143.52
Budget allocation for health – US$ million
 As per State Budget 2018-19, the government is conducting free
medical tests to prevent diseases. Also, the government will
undertake free eye checkups and provide spectacles free of cost.

SOCIAL INFRASTRUCTURE – HEALTH … (2/2)
 The state government proposed an endowment of US$ 91.65 million
for purchase or replacement of equipment, US$ 48.27 million for
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.
Source: Department of Health, Medical & Family Welfare & National Health Mission, Government of Telangana
Distribution of district hospitals, area hospitals & CHCs in
Telangana
40
52
57
67
71
72
72
75
84
85
0 20 40 60 80 100
Nizamabad
Ranga Reddy
Khamman
Medak
Karimnagar
Adilabad
Nalgonda
Warangal
Mehbubnagar
Hyderabad
Primary hospitals in Telangana, by district
Note: CHC: Community Health Centres

INDUSTRIAL INFRASTRUCTURE … (1/2)
 The secondary sector accounted for around 14.80 per cent share in
overall GVA of the state during 2017-18. In the State Budget 2018-
19, the Government of Telangana proposed an investment of Rs
1,286 crore (US$ 199.53 million) for industry and commerce.
 The Telangana Government plans to encourage an industrial
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
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.
 CETPs at Jeedimetla and Patancheru and TSDF at Dundigal under
Jeedimetla Zone are established by the Government. TSIIC has
recognised 150 industrial parks in 10 districts having land of about
74,133.18 acres with 13,165 units (enterprises). Under TSIIC, for the
execution and monitoring of Infrastructure projects in the state, the
government sanctioned an investment of US$ 1.65 million.
Source: Telangana State Statistical Year Book, 2015, Economic Survey
Distribution of industrial parks in Telangana
Note: CETP- Common Effluent Treatment Plants, TSDF- Treatment Storage Disposal Facility, TSIIC-Telangana State Industrial Infrastructure Corporation

INDUSTRIAL INFRASTRUCTURE … (2/2)
Industrial park name No of plots No of sheds Vacant area (sq. m) Proposed industries
Jeedimetla 250 0 1,222,765
Automotive based industries,
general engineering, steel re
rolling, R&D of biotech,
pharmaceuticals, vaccines
Karimnagar 2 0 2,136 General
Patancheru 68 15 345,963 Textile, cargo, edible oils
Shamshabad 376 11 2,098,571
Aerospace, solar equipment,
electronic hardware
Warangal 57 1 101,874 IT & ITeS, general
Industrial Parks in Telangana
Year
Margin money
subsidy released – US$
million
Margin money
subsidy utilised – US$
million
Number of
projects assisted
Estimated employment
generated
(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
Prime Minister's Employment Generation Programme (PMEGP) schemes in Telangana
Source: Telangana State Industrial Infrastructure Corporation (TSIIC), Ministry of Micro, Small and Medium Enterprises
Note: (1) As of July, 2015, (2)As of June 2016, 2017-18* - Up to January 2018

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.

AMRUT AND SMART CITIES … (2/2)
S. No. City/town
1. Khammam
2. GHMC
3. Warangal
4. Nizamabad
5. Karimnagar
6. Ramagundam
7. Mahbubnagar
8. Nalgonda
9. Adilabad
10. Suryapet
11. Miryalaguda
12. Siddipet
Cities/towns in Telangana covered under AMRUT
S. No. City/town
Karimnagar 261,185
Greater
Warangal
819,406
Smart cities in Telangana
Karimnagar
Greater Warangal
Source: Aranca Research

KEY INDUSTRIES
 The Information Technology (IT) and pharmaceuticals manufacturing
sectors are catalysing the growth of Telangana’s economy.
Hyderabad is a major exporter of IT and ITeS products. Micro, small
and medium enterprises are also strengthening the economic growth
of the state. Since June 2014, 13,671 MSME units have been
established in the state with a cumulative investment of Rs 7,130
crore (US$ 242.32 million) which generated employment of 1,45,512.
 The state government is in discussions with Steel Authority of India
(SAIL) for establishing a steel factory comprising a deal of value US$
5 billion on the Khammam-Warangal border. The state government
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
setting up of industry across Telangana rather than limiting it to any
specific city. Incorporation and implementation of Telangana State
Industrial Project Approval & Self Certification Systems is expected
to increase the investments in the state coming years.
 As per state budget 2018-19, the work on establishment of a new
eco-pharma city is under process. Moreover, Government of India
has also provided the state government with final approval for
establishing a food park across the district of Khammam in coming
years.
Source: Socio Economic Outlook 2015, Government of Telangana, MSME- Micro, Small
and Medium Enterprises
Key industries in Telangana
 Information technology
 Pharmaceuticals manufacturing
 Tourism
 Textile
 Mines and minerals
 Incentives for micro & small enterprises from the Government of
Telangana:
• 100% reimbursement of stamp and transfer duty on the purchase
of land for industrial use
• 100% reimbursement of Stamp duty for lease of land/shed/
buildings and also mortgages and hypothecations
• 25% rebate in land cost limited to US$ 16.58 thousand in
industrial estates/ industrial parks

KEY INDUSTRIES – INFORMATION TECHNOLOGY …
(1/2)
 Information technology is one of the fastest growing sectors in
Telangana, contributing around 21% share in the total GSDP of the
state. The central government has declared the realisation of an
Information Technology Investment Region (ITIR) near Hyderabad.
With the establishment of the ITIR, the government plans to
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 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.
 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
hold significant presence in Hyderabad. Continuous growth of these
companies in conjunction with expansion plans is expected to
generate 40,000 direct jobs along with indirect employment of
several thousands.
 In 2016, the state government had signed an MoU to explore cloud,
machine learning with Microsoft Corporation, India, to improve
healthcare and agriculture sectors in the state of Telangana. In
August 2017, Telangana adopted Microsoft cloud and became the
first state to use Artificial Intelligence for eye care screening for
children.
Source: Telangana socio-economic outlook 2017, IT/ITeS: Information
Technology/Information Technology enabled Services Sector, (1) For 2015-16
 Under the Department of Information Technology, Electronics &
Communications, the Government of Telangana has introduced
Telangana IT Policy, 2016 in April 2016 for uplifting the performance
of the sector in the state.
 As of September 2017. the State Government is setting up an
Information Technology hub in Nizamabad district with an
investment of US$ 3.89 million. The necessary infrastructure and an
incubation centre will be established in the hub.
 The state government has set a target of connecting its 23 million
residents via internet, by 2018.
2016-17
Exports 12.74
IT Units 1,500
IT & ITeS exports from Telangana (US$ billion)

KEY INDUSTRIES – INFORMATION TECHNOLOGY …
(2/2)
Google
Microsoft
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.
 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.
 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.
Facebook
 Facebook is a US-based online public networking provision company with set-ups in India.
 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.

KEY INDUSTRIES – PHARMACEUTICALS … (1/2)
 Hyderabad accounts for about 20% share in the total export of
pharma products from India. This is making Hyderabad as a centre
for the drug production.
 Telangana backs nearly one-third of complete pharma manufacture
in the country.
 The state government declared establishing a Pharma City to
enhance the pharmaceutical business in Telangana.
 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.
Approved Expenditure1
9.20 2.40
Funds for procurement for drugs & supplies under NRHM and
RCMEH in Telangana – 2016-17 (US$ million)
Source: Ministry Of Health And Family Welfare, Government of India ,State Portal & News articles, Telangana socio-economic outlook 2017

KEY INDUSTRIES – PHARMACEUTICALS … (2/2)
Dr Reddy’s
Aurobindo Pharma
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
 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
 Aurobindo Pharma was established in 1986 and turn into a public listed company in 1995.
 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
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

KEY INDUSTRIES – TOURISM … (1/3)
 Dynasties such as Sathavahanas, Kakatiyas, Chalukyas,
Qutubshahis, Mughals & Asafjahis have ruled the state of Telangana.
Hyderabad, the capital of Telangana, is highly popular for Charminar,
Golconda Fort, pearls & biryani. The Kakatiya track with Warangal &
Karimnagar are recognised as highly popular tourist places.
 Jinnaram near Kawal Tiger Sanctuary & the lake resorts at Kadem
(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.
In order to encourage tourism, the state government has planned
listing of a new public limited company, Telangana State Tourism
Development Corporation Ltd. (TSTDC), under the Companies Act
2013.
 The Government of Telangana has set up Yadagirigutta
Development Authority (YDA) for maintaining the historic Hindu &
Jain monuments at Yadagirigutta & nearby regions. As per budget
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
time grant during 2016-17.
 Moreover, the state government allocated an amount of US$ 35.44
million for the development of tourism & culture department during
2016-17.
 The total number of tourist arrivals reached 53.5 million till October
2017.
Source: News Articles, Telangana State Statistical Year Book, 2015
 The state's archaeology department in March 2017, discovered &
unearthed the world's largest capstone weighing of 40 tonnes, after
excavating an ancient human burial site in Narmeata village in
Siddipet district
49.7
91.7
54.2
72.5
94.6
95.2
53.5
0 20 40 60 80 100
2011
2012
2013
2014
2015
2016
2017
Number of tourist arrivals (millions till October 2017)

Key tourist spots
 Monuments
• Charminar
• Golconda Fort
• Qutb Shahi Tombs
• Chowmahalla Palace
• Falaknuma Palace
• Bhongir Fort
• Ramoji Film City
 Religious Tourism
• Thousand Pillar Temple
• Bhadrachalam Temple
• Nelakondapalli
• Dhulikatta Phanigiri
• Kolanpaka
• Mecca Masjid
 Others
• Kuntala waterfall
• Pochera waterfalls
• Nirmal Paintings
32.1
43.0
50.6
50.5
50.4
51.5
49.4
91.4
54.0
72.3
94.5
95.2
0.0
20.0
40.0
60.0
80.0
100.0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Number of domestic tourist arrivals in Telangana (million)
0.47
0.57
0.70
0.72
0.75
0.29
0.23
0.22
0.15
0.07
0.12 0.14
0.18
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
0.800
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Number of foreign tourist arrivals in Telangana (million)

 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.

KEY INDUSTRIES – MINES AND MINERALS … (1/2)
 Granite, coal, lime stone, bauxite and mica are the major mineral
resources in Telangana.
 Adilabad, Karimnagar, Khammam and Warangal are the largest
producers of coal in the state of Telangana.
 The state have high volumes of limestone deposits, which gratify
various cement factories in the region.
 Karimnagar, Khammam and Adilabad, are the prime districts for
mining in the state of Telangana. These districts accounts for 50%
share in the mining business of the state.
 Karimnagar is considered as strong granite reserve districts in
Telangana. Wide range of granites such as Tan Brown, Maple Red
and Coffee Brown granite are available in the district.
 Telangana holds 426 quarries for colour granite and six quarries for
black granite.
 Khammam is emerging as the new growth engine with around
15,000 acres of land being freed by the state government in the
district.
 There are over 3,000 operational mining leases in Telangana.
District Major Minerals
Adilabad Manganese
Bhadradri-
Kothagudem
Garnet, Stowing Sand, Coal
Jagityal Iron Ore, Manganese, Limestone
Jayashankar Iron Ore, Coal, Stowing Sand
Jogulamba-Gadwal Limestone
Khammam Iron Ore, Coal
Komaram Bheem Limestone, Coal
Mahabubabad Iron Ore
Mahbubnagar Gold, Diamond
Mancherial Limestone, Coal, Stowing Sand
Medak Amethyst, laterite, Granite
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

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

KEY INDUSTRIES – APPARELS AND TEXTILES…(1/2)
No. of Handloom Weaver Cooperative Societies 627
No. of weaver members 82,438
No. of working handlooms Geo-tagged 16,879
No. of Powerlooms existing 49,112
Handloom Weaver Cooperative Societies*
Source: State Budget 2018-19, Silk Board, News Articles, *Telangana Socio-Economic Survey 2018
 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
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
Warangal & Sircilla cities. These cities are based in Karimnagar
district. Both parks will be established similar to the parks present at
Tirupur in Tamil Nadu. The Government of Telangana sought
authorisation from the central government for the conversion of forest
area in Warangal, which is the largest cotton producing district in the
state, into a mega textile park.
 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
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
9,000 crore (US$ 1,396.43 million) over the next five years.
 As of March 2015, a new textile policy was introduced in Telangana.
Purpose of this policy is to provide special incentives to the textiles
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.
Proposed textile parks in Telangana Location
Pochampally Handloom Park Limited Kanumukkala,Nalgonda
Avantika Textile Park Medak Telengana
Kakatiya Mega Textile park Warangal

KEY INDUSTRIES – APPARELS AND TEXTILES…(2/2)
Source: Telangana Annual Plan, 2015-16, budget 2017-18
4.2
4.5
4.0
4.1
4.1
4.2
4.2
4.3
4.3
4.4
4.4
4.5
4.5
2016-17
2017-18
Financial assistance to the handloom weavers (in US$ million) As per the state budget 2017-18, financial assistance to the
handloom weavers in Telangana was increased to US$ 4.5 million in
FY18 from US$ 4.2 million in FY17.
 As of June 2017, the state had over 30 operational textile mills.
 FDI in the textile sector in Telangana increased by 13.14% to US$
1.55 million in FY17 from US$ 1.37 million in FY16.
 The Government of Telangana had announced setting up of a mega
textile park in Warangal in January 2016. The foundation stone for
the Kakatiya mega textile park was laid in October 2017. The project
is a fibre-to-fabric integrated textile cluster proposed to be built on
1,200 acres of land near Shayampet in the Warangal district. It is
expected to generate 27,000 direct and 50,000 indirect jobs in the
state.
 The Government of Telangana and Kay Ventures Private Limited
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
generate employment for 15,000 people.

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
Energy and Power DepartmentPower feasibility
Power connection
Approval for construction activity and building plan Public Works Department
Water and sewerage clearance
Water Security & Public Health Engineering Department
Water connection

CONTACT LIST
Agency Description
Telangana State Industrial Infrastructure
Corporation (TSIIC)
6th Floor, Parisrama Bhavan, Fateh Maidan Road,
Basheerbagh, Hyderabad – 500 004, Telangana, India
Ph: +91-40-23237625, 23237626
Fax: +91-40-23240205, 23241385
Website: https://tsiic.telangana.gov.in/
email: hyd@apiic.in
Telangana State Power Generation
Corporation (TSGENCO)
Vidyutsoudha, Khairatabad,
Hyderabad-500 082,
Telangana, India
Phone: 040-23499000/39839000
Fax: 040-23499101
email: contactus@tsgenco.gov.in
Payavaran Bhawan, A-III, Industrial Estate,
Sanath Nagar, Hyderabad - A.P.
Website: http://tspcb.cgg.gov.in/default.aspx
email: eew_ss@pcb.ap.gov.in

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
Electricity (US cents per kWh)
Commercial: 9.5–19.4
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
Water cost (US$)
Industrial: 0.8-3 per 1,000 litres
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

STATE ACTS & POLICIES … (1/3)
Objectives
The Telangana Solar
Power Policy 2015
 To promote regionalised and dispersed generation of solar energy.
 Effective energy conservation by the stimulation of connected grid and off-grid solar tenders.
 Endorsement of all skills related to solar power generation.
 Addition of solar parks
Read more
 To confirm a uniform scholarship for each category of study, as well as vocational training, which is independent of
the fees charged. To guarantee that fees are lower than the subsidy quantities to help students to meet their living
expenses.
Telangana Full Fee
Reimbursement Policy
2015
Read more
 To improve 6 industrial corridors with emphasis on main industrialised sectors, with life sciences, IT and hardware
being the major benefactors.
 To certify viable & comprehensive industrial development.
The New Industrial Policy
2014
Read more
 To build capacity and protect critical information infrastructure.
 To establish requisite institutions and legal framework to counter cybercrime.
Cyber Security Policy
2016 Read more
 To create an atmosphere conducive for IoT specific businesses and manufacturing units to thrive in the State
 To position Telangana as a test bed for IoT solutions
IOT (Internet of Things)
Policy
Read more

Objectives
Telangana ICT Policy
2016
 To make Telangana the most favoured destination for the IT companies.
 To position the state among the leading global hubs for innovation and technology entrepreneurship in the country.
 To entice US$ 3 billion funds for the Electronics sector through 2020.
 To develop an employment potential of around 160 thousand by 2020.
Telangana Electronics
Policy 2016
 To boost the start-ups present across the social & rural enterprises by the provision of additional incentives to
them.
 To endorse the innovative ideas through positive industrial engagement.
Telangana Innovation
Policy
Gaming and Animation
(IMAGE) Policy
 To make Hyderabad the most favored destination for investment in Animation, Visual effects, Gaming & Comics
sector
 To set up a “Center of Excellence” i.e. Telangana Animation and Gaming - IMAGE City, with state-of-the-art
facilities Read more
Read more
Read more
Read more
Textile and Apparel
Incentive Scheme 2017
 To create an enabling environment in order to encourage investments in downstream processing activities.
 To support the existing units for their modernization, expansion, and for marketing and promotion activities.
 To encourage new units across the value chain. Read more
E Waste Management
Policy
 To create a vibrant e-Waste refurbishing and recycling ecosystem in the State.
 To assist the highly unsafe unorganised sector transition into the organised sector through various initiatives.
Read more

Objectives
Telangana Excise Policy
2017-19
 To standardise the process of collection of certain fees from suppliers and others.
 To restructure administrative units due to introduction of new districts in the state.
 To develop capacity for processing major commodities up to international standards
 To build clusters with collaboration between government, industry and academia
 To position Telangana as the agri-food distribution hub for the country
 To drive the national objective of doubling farmer incomes by 2022
 To generate employment for 1,25,000 personnel by 2022
Telangana State Food
Processing and
Preservation Policy
Read more
Read more
Upcoming Policies:
 Telangana Electric Vehicles Policy
 Telangana Retail Policy
 Short term Agriculture and Allied Industries Policy
 Registration Policy

EXCHANGE RATES
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR INR Equivalent of one US$
2004–05 44.95
2005–06 44.28
2006–07 45.29
2007–08 40.24
2008–09 45.91
2009–10 47.42
2010–11 45.58
2011–12 47.95
2012–13 54.45
2013–14 60.50
2014-15 61.15
2015-16 65.46
2016-17 67.09
2017-18 64.45
Year INR Equivalent of one US$
2005 44.11
2006 45.33
2007 41.29
2008 43.42
2009 48.35
2010 45.74
2011 46.67
2012 53.49
2013 58.63
2014 61.03
2015 64.15
2016 67.21
2017 65.12
Source: Reserve bank of India, Average for the year

DISCLAIMER
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This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a
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Telangana State Report April 2018

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Telangana State Report April 2018