Andhra Pradesh State India Economic Snapshot

2,855 views

Published on

Andhra Pradesh State India Economic Snapshot August 2013

Published in: News & Politics, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
2,855
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
135
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Andhra Pradesh State India Economic Snapshot

  1. 1.       
  2. 2. • Andhra Pradesh has 38 operational special economic zones (SEZs), higher than any other state in the country. It also has the highest number of IT/ITeS-related SEZs in India. “The hi-tech city” in Hyderabad is the largest IT facility in India. • India’s first Information Technology Investment Region (ITIR) will be developed in Andhra Pradesh over an area of 202 sq km. ITIR is likely to attract investments of around US$ 40.4 billion. • Revenue from the IT sector crossed the US$ 10 billion mark over 2012-13. World’s largest single deposits of barytes • Andhra Pradesh has the largest single deposits of barytes in the world. It has around 70 million tonnes of baryte reserves, accounting for 94 per cent of total baryte reserves in India. Largest producer and exporter of bulk drugs • Andhra Pradesh ranks first in the manufacturing of bulk drugs in India and accounts for around one-third of the national production of bulk drugs. Most operational SEZs Largest ITIR in development Revenues of US$ 10 billion from IT sector Source: Andhra Pradesh Socio-Economic Survey 2012-13, Aranca Research
  3. 3. One of the largest mineral storehouses Largest producer of spices, fruits, eggs Largest exporter of marine products Second largest cement producer Electronic hardware policy • Andhra Pradesh is the largest producer of barytes and limestone in India. It also has the largest reserves of granites (estimated at 2.4 billion cubic metres) and beach sand (241 million tonnes) in the country. • The state is the largest producer of spices, fruits and crops, including citrus, papaya, oil palm and tomato, in India. It also ranks first in the production of eggs and third in milk production in the country. • Andhra Pradesh ranks first in the production of brackish-water shrimps and fresh-water prawns. It contributes around 40 per cent to the country’s total marine exports. • Andhra Pradesh is the second largest cement producer in India. • Andhra Pradesh is the first state to develop an Electronic Hardware Policy in India (201217), wherein, the state government plans to provide incentives for setting up more than 200 electronic manufacturing clusters in the stage. Source: Andhra Pradesh Socio-Economic Survey 2012-13, Aranca Research
  4. 4. High economic growth Growing demand 2011-12 • IT exports: US$ 8.5 billion • • Hub for knowledge-based industries GSDP expanded at a compound annual growth rate (CAGR) of 16 per cent between 2004-05 and 2012-13 Vast natural gas reserves in the Krishna-Godavari basin have opened up immense possibilities for the state economy Andhra Pradesh is a leading agricultural state in India • • • • Advantage: • Andhra Pradesh Rich labour pool • • • Large base of skilled labour, making it an ideal destination for knowledgeintensive sectors Provides 30 per cent of the country’s engineering talent through prestigious institutes such as IIT, JNTU, IIIT, BITS, ISB and NIT Furthermore, the state has a large pool of semi-skilled and unskilled labour • • • • • Key state for industries including IT, pharmaceuticals and biotechnology Host to 71 out of 500 top global corporations and has the highest number of IT SEZs in India (56 as of 2011-12) Fourth largest IT exporter in India, accounting for 12 per cent of the country’s total IT exports 2017E IT exports: US$ 31.3 billion Policy and infrastructure The engineering sector is delicensed; support 100 per cent FDI is allowed in the Wide range of fiscal and policy sector incentives for businesses under the Industrial Investment Promotion Policy, Due to policy support, there was 2010-15 cumulative FDI of USD14.0 billion into Well drafted sector-specific policies the sector over April 2000 – February Well-developed social, physical and 2012, making up 8.6 per cent of total industrial infrastructure and virtual FDI into the country in that period connectivity, and has good power, airport, IT and port infrastructure Source: Socio-Economic Survey of Andhra Pradesh 2012-13 GSDP: Gross State Domestic Product
  5. 5. Most commonly spoken language is Telugu. Hindi, English and Tamil are the other languages used. Parameters Capital Andhra Pradesh Hyderabad Geographical area (sq km) Administrative districts (No) Andhra Pradesh is located in the southern peninsula of India and has a coast line of 974 km. 23 Population density (persons per sq km)* 308 Total population (million)* Source: Maps of India 275,100 84.6 Hyderabad, Visakhapatnam, Vijayawada, Tirupati, Warangal, Guntur, Kakinada, Nellore and Kurnool are some of the key cities in the state. 42.5 Female population (million)* The state of Andhra Pradesh is bound by Odisha and Chhattisgarh on the north, Maharashtra and Karnataka on the west, Tamil Nadu on the south, and the Bay of Bengal on the east. Male population (million)* 42.1 Sex ratio (females per 1,000 males)* 992 Literacy rate (%)* 67.7 Sources: Andhra Pradesh Government Website (www.aponline.gov.in), * Provisional Data – Census 2011
  6. 6. Andhra Pradesh All-States Source GSDP as a percentage of all states’ GSDP 7.8 100 Andhra Pradesh Socio-Economic Survey, 2012-13, current prices Average GSDP growth rate (%)* 16.0 15.6 Andhra Pradesh Socio-Economic Survey, 2004-05 to 2012-13, current prices 1,582.2 1,414.2 Andhra Pradesh Socio-Economic Survey, 2012-13, current prices 17,098.7 225,133.1 Central Electricity Authority, as of May 2013 Wireless subscribers (No) 64,363,622 867,803,583 Telecom Regulatory Authority of India, as of March 2013 Broadband subscribers (No) 1,342,750*** 15,050,000 Telecom Regulatory Authority of India, as of March 2013 National Highway length (km) 6,547** 79,116 Ministry of Road Transport & Highways, as of March 2013, Andhra Pradesh Government press release, 2013 1+14 13+187 Indian Ports Association 9 133 Airport Authority of India Parameter Economy Per capita GSDP^ (US$) Physical Infrastructure Installed power capacity (MW) Major and minor ports (No) Airports (No) * Calculated in Indian rupee terms, ** As of January 2013, *** As of December 2011, ^ Advanced estimates
  7. 7. Andhra Pradesh All-States Source Literacy rate (%) 67.7 74.0 Provisional data – Census 2011 Birth rate (per 1,000 population) 17.5 21.8 SRS Bulletin (www.censusindia.gov.in), 2012 8.0 193.4 Department of Industrial Policy & Promotion, April 2000 to March 2013 922.0 10,499.2 CMIE (2012-13) PPP projects (No) 100 881 www.pppindiadatabase.com SEZs (No) 76 385 Notified as of March 2013, www.sezindia.nic.in Parameter Social Indicators Investment FDI equity inflows (US$ billion) Outstanding investments (US$ billion) Industrial Infrastructure PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System
  8. 8. At current prices, Andhra Pradesh’s gross state domestic product (GSDP) was estimated at US$ 136.0 billion over 2012-13. 91 2008-2009 Growth was mainly driven by service and secondary sectors. 93 2007-2008 CAGR 16.0%** 137 136 2012-2013* Between 2004-05 and 2012-13, the average annual GSDP growth rate was 16.0 per cent**. 125 2011-2012 GSDP of Andhra Pradesh at current prices (in US$ billion) 101 66 58 2010-2011 2009-2010 2006-2007 2005-2006 2004-2005 50 Source: Andhra Pradesh Socio-Economic Survey, 2012-2013 * Advanced estimates, ** In Indian rupee terms
  9. 9. At current prices, Andhra Pradesh’s net state domestic product (NSDP) was estimated at US$ 122.3 billion over 2012-13. NSDP of Andhra Pradesh at current prices (in US$ billion) Between 2004-05 and 2012-13, the average annual NSDP growth rate was about 16.1 per cent**. 123 122 112 84 90 2008-2009 2009-2010 CAGR 16.1%** 81 2012-2013* 2011-2012 2010-2011 2005-2006 2007-2008 52 2006-2007 45 2004-2005 59 Source: Andhra Pradesh Socio-Economic Survey, 2012-2013 * Advanced estimates, ** In Indian rupee terms
  10. 10. Andhra Pradesh’s per capita GSDP increased to US$ 1,582.2* during 2012-13 from US$ 628.8 over 2004-05. 1,484 1,105 1,122 2007-2008 2008-2009 CAGR 14.9%** 1,604 1,582 2012-2013* Average per capita GSDP rose at a CAGR of 14.9 per cent** between 2004-05 and 2012-13. 2011-2012 GSDP per capita of Andhra Pradesh at current prices (in US$) 1,202 819 719 2010-2011 2009-2010 2006-2007 2005-2006 2004-2005 629 Source: Andhra Pradesh Socio-Economic Survey, 2012-2013 * Advanced estimates, ** In Indian rupee terms
  11. 11. Andhra Pradesh’s per capita NSDP grew from US$ 563.3 during 2004-05 to US$ 1,422.8* over 2012-13. 1,332 CAGR 15.0%** 987 1,009 1,439 1,423 2012-2013* Average per capita NSDP increased at a CAGR of 15.0 per cent** between 2004-05 and 2012-13. 2011-2012 NSDP per capita of Andhra Pradesh at current prices (in US$) 1,078 732 2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 563 645 Source: Andhra Pradesh Socio-Economic Survey, 2012-2013 * Advanced estimates, ** In Indian rupee terms
  12. 12. During 2012-13, the tertiary sector accounted for 52.5 per cent (US$ 71.3 billion) of GSDP (at current prices), followed by primary (25.1 per cent; US$ 34.2 billion), and secondary (22.4 per cent; US$ 30.5 billion). GSDP composition by sector CAGR** 50.6% The secondary sector grew the fastest at a CAGR of 16.6 per cent**, followed by tertiary (CAGR of 16.5 per cent**) and primary (CAGR of 14.5 per cent**) between 2004-05 and 2012-13. 16.5% 21.5% 16.6% 27.9% 14.5% 2004-05 Primary sector 52.5% 22.4% 25.1% 2012-13* Secondary sector Tertiary sector Source: Andhra Pradesh Socio-Economic Survey, 2012-2013 * Advanced estimates, ** In Indian rupee terms
  13. 13. Over 2012-13, total area under food grain production in Andhra Pradesh was estimated at 6.6 million hectares. Crop Annual production (‘000 tonnes) – 2012-13^ Sugarcane 15,912* Overall production of food grains in the state was projected at 17.1 million tonnes over 2012-13. Rice 10,488 Cotton 7,200** Major food grains# produced in Andhra Pradesh are rice, maize, pulses and jowar. Maize 4,484 Mango 3,901*** Sugarcane, cotton, chillies, onion, groundnut and turmeric are some of the other major crops produced in the state. During 2012-13, total production of oilseeds in the state was estimated at 1.5 million tonnes. Total pulses Chillies 1,757*** Onion 850*** Groundnut 1,027 Bengal gram # Food Grains Include Rice, Jowar, Bajra, Maize, Ragi, Wheat, Pulses and Other Millets. 1,493 Turmeric 520 1,894 Black gram (Urad dal) 379 Jowar (Sorghum) 412 Red gram (Tur dal) 148 Green gram (Moong dal) 169 Source: Andhra Pradesh Socio-Economic Survey 2012-13, Cotton Corporation of India (www.cotcorp.gov.in), ^ Second advanced estimates as on 05 January, 2013, *Data for 2011-12, ** ’000 bales of 170 Kg each ***Advanced estimates
  14. 14. Andhra Pradesh’s exports increased at a CAGR of about 23.4 per cent** between 2006-07 and 2011-12. During 2011-12, exports from Andhra Pradesh totaled US$ 24.2 billion. Computer software contributes around 35.0 per cent to the state’s total exports. Drugs & pharmaceuticals, fine chemicals, engineering products, agriculture and agro-based products are the other major export items. Exports break-up, Andhra Pradesh (2011-12) Handicrafts & Mineral & mineral carpets 3% Handloom & textiles 2% products 4% Leather, animal and marine products 4% Exports from Andhra Pradesh (in US$ billion) 24.2 CAGR 23.4%** Electronics & electronics parts 2% 20.1 16.9 15.4 Agro-based and forest products 10% 14.3 Software (IT & ITeS) 35% Drugs & pharma and chemical plastics 18% 9.0 2006-07 Engineering items 23% 2007-08 2008-09 2009-10 2010-11 2011-12 Source: Andhra Pradesh Socio-Economic Survey 2012-13 ** In Indian rupee terms
  15. 15. According to the Department of Industrial Policy & Promotion (DIPP), FDI inflows from April 2000 to February 2013 totaled US$ 8.0 billion. Break up of outstanding investments by sectors (2012-13) The state has had a healthy FDI inflow over the years. From April 2012 to February 2013, FDI inflows amounted to US$ 1.1 billion. Over 2012-13, outstanding investments in Andhra Pradesh totaled US$ 922.0 billion. 4% Electricity 12% 28% 12% Manufacturing Services Irrigation The electricity sector accounted for around 28 per cent of total outstanding investments, followed by manufacturing (25 per cent) and services (19 per cent). 19% 25% Real Estate Mining Source: CMIE
  16. 16. As of September 2012, there were 41 public-private partnership (PPP) projects in the roads sector that are at various stages of development. The central government announced plans to develop 1,817 km of state roads in the state into national highways at an estimated cost of US$ 9.2 billion over the next three-five years. Road type Road length* (km) as of October 2012 Source: Maps of India National highways As of June 2012, Andhra Pradesh had 17 national highways, running through it and covering a distance of 4,537 km. 11 new national highways were notified in FY ‘12, taking the total tally to 28 and distance covered to 6,547 km. The roads network under Andhra Pradesh Roads and Buildings Department covered a length of 70,879 km as of October 2012. As of October 2012, road density per thousand population was 0.86 km. 4,537 State highways 10,491 Major district roads 32,262 Rural roads 23,396 Source: Andhra Pradesh Socio-Economic Survey 2012-13 * Under Andhra Pradesh Roads and Buildings Department
  17. 17. As of March 2011, Andhra Pradesh had a total railway Growing demand network of 5,044.08 km; of this, 4,348.44 km is under the control of the South Central Railway with Secunderabad as the headquarters. The state had 695 railway stations as of March 2011. The Mass Rapid Transit Service (MRTS) project is expected to carry about 1.5 million passengers per day by 2015 and 2.2 million passengers per day by 2025. The construction work of the project was awarded to Larsen & Toubro Limited in September 2010 through a competitive bidding process. Andhra Pradesh railway network (as of March 2011) Total route length (in kms) South Central Railway 604 4,348.44 Southern Railway 16 120.85 East Coast Railway Total cost for the MRTS project has been estimated at US$ 2.9 billion. The Government of India has provided US$ 0.3 billion as central assistance under the Viability Gap Funding (VGF) scheme. No of stations 75 574.79 Name of the Railway The state is the first to have a PPP Metro Rail project sanctioned by the Government of India. The metro rail project is eco-friendly and is expected to reduce pollutants by about 3,100 tonnes per annum (TPA). Sources: Andhra Pradesh State Portal, www.portal.ap.gov.in, Hyderabad Metro Rail Website - www.hyderabadmetrorail.in
  18. 18. Andhra Pradesh has an international airport at Hyderabad Growing demand and domestic airports at Visakhapatnam, Tirupati, Rajahmundry, Warangal, Vijayawada, Donakonda, Kadapa and Puttaparthi. Hyderabad is connected to several key international destinations, such as Amsterdam, Bangkok, Chicago, Frankfurt, Dubai, Singapore, Sharjah, London and Kuala Lumpur, besides all major destinations across India. The Rajiv Gandhi International Airport near Shamshabad (about 25 km from Hyderabad) is a newly completed airport (5,495 acres). It has replaced the former international airport of the city at Begumpet. Total cost for this project was at around US$ 560 million. GMR-Hyderabad International Airport Limited (GHIAL), Shamsabad Started operations in March 2008. Constructed by the consortium of: • GMR Group (63 per cent) • Malaysia Airport Holding Berhad (MAHB) (11 per cent) • Government of Andhra Pradesh (13 per cent) • Airports Authority of India (13 per cent) Single terminal, expandable structure Final capacity of 40 million passengers per year and one million tonnes of cargo Total built-up area of 900,000 sq m Hyderabad airport received 2,147,172 passengers and handled 46,495 tonnes of cargo during 2012–13. The airport was recognised as the best airport in India by the SKYTRAX World Airport Awards in 2013. It was also recognised as a fifth best regional airport in Asia and featured in Top 100 airport in the World. A third-party airframe maintenance, repair and overhaul (MRO) facility was set up by MAS-GMR Aerospace Engineering Company Ltd, a joint venture company of GHIAL and Malaysian Aerospace Engineering Sdn. Bhd. (MAE). A flight academy was established at the airport Sources: GHIAL Website, www.hyderabad.aero, Airports Authority of India
  19. 19. Andhra Pradesh has a 974 km long coastline and the second highest cargo-handling port. The Visakhapatnam port ranks amongst the top three of 13 major ports in the country. During 2012-13, it had a port traffic of 59.0 million tonnes. Visakhapatnam port traffic (million tonnes) 64.6 63.9 65.5 68.0 67.4 59.0 Coking coal, iron ore, petroleum products and thermal coal are some of the key products handled by the port. It also has a high volume of container traffic. Other than Visakhapatnam, the state has 14 intermediate and minor ports. 2007-08 The central government announced plans to set up a new deep sea port in the state at an estimated investment of US$ 2.3 billion. The port is expected to have a cargo loading capacity of 62.0 million tonnes. 2008-09 2009-10 2010-11 2011-12 2012-13* Source: Ministry of Shipping, Government of India Indian Ports Association, * Tentative
  20. 20. Andhra Pradesh has the largest hydro-power generation capacity in India, ahead of Karnataka and Maharashtra. Installed power capacity (MW) 16,949 As of May 2013, Andhra Pradesh had a total installed power generation capacity of 17,098.7 MW, which comprised 9,050.1 MW under state utilities, 4,891.9 MW under private sector and 3,156.8 MW under central utilities. Thermal power accounted for 11,980.7 MW of total power generation installed capacity, followed by nuclear (275.8 MW), renewable power (1,107.7 MW) and hydropower (3,734.5 MW). The private sector contributed to the entire capacity of gasbased power plants. Per capita consumption of electricity in Andhra Pradesh was 1,050 kWh during 2011-12. 17,099 2012-13 2013-14* 16,095 15,036 13,409 11,639 2008-09 2009-10 2010-11 2011-12 Source: Central Electricity Authority
  21. 21. The integrated Andhra Pradesh State Electricity Board (APSEB) was restructured in 1999 to form the following companies: Segment AP Genco’s hydro power plants Company name Power Generation Andhra Pradesh Power Generation Corporation Limited (APGENCO) Power Transmission Transmission Corporation of Andhra Pradesh Limited (APTransco) Central Power Distribution Company of Andhra Pradesh Limited (APCPDCL), Hyderabad Power Distribution 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 AP Genco’s thermal power plants
  22. 22. According to the Telecom Regulatory Authority of India (TRAI), Andhra Pradesh had nearly 64.4 million wireless subscribers and 2.24 million wireline subscribers as of March 2013. Telecom infrastructure (as of March 2013) 64,363,622 Wire-line Subscribers According to the Department of Telecommunications, Government of India, the state had 4,266 telephone exchanges and 130,282 public call offices (PCOs) as of March 2012. Wireless Subscribers 2,239,363 Broadband Subscribers 1,342,750* Telephone Exchanges 4,266** Public Call Offices (PCOs) Optical fibre cable networks of BSNL with 44,500 km, Reliance with 6,000 km, Bharat with 3,450 km and TATA with 1,700 km provide a wide range of communication networks to Andhra Pradesh. As of January 2013, there were 16,165 post offices in the state. 130,282** Sources: Telecom Regulatory Authority of India, Department of Telecommunications, Annual Report 2011-12, Ministry of Communications & Information Technology, India Post *As of December 2011 **As of March 2012
  23. 23. Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 52 projects worth around US$ 1,159.4 million were sanctioned for Hyderabad, Visakhapatnam, Vijayawada and Tirupati. Water supply • Some of the key areas of development are roads/flyovers, water supply, storm water drainage, solid-waste management and mass rapid transport system. As of March 2013, 20 projects worth US$ 223.4 million were completed. These projects, which were related to roads, water supply, drains/storm water drains and sewerage, are located in Hyderabad, Vijayawada and Vishakhapatnam. • The state has 170 urban local bodies (ULBs), comprising 19 corporations, 113 municipalities and 38 nagar panchayats. Sources: JNNURM, Ministry of Urban Development, www.urbanindia.nic.in, Hyderabad Metropolitan Development Authority Andhra Pradesh Socio-Economic Survey 2012-13 LPCD: Litres per capita per day, MLD: Million litres per day Average water supply in various urban local bodies (ULBs) increased to 85 LPCD from 63 th LPCD during the 11 fiveyear plan (2007-12). During 2007-11, 43 water supply schemes with an estimated cost of US$ 191.8 million were completed, adding 370.44 MLD of water and raising installed capacity to 1,599.68 MLD from 1,229.24. Sewerage system and solid-waste management system • Solid waste collection efficiency is 95.0 per cent across the cities of Andhra Pradesh. • Area coverage of the sewerage system in the major cities varies from 10 per cent to 45.0 per cent. Some of the urban development projects in Hyderabad • • • • Outer Ring Road Project P.V. Narasimha Rao Elevated Expressway Flyover at Lunger House Junction Hussain Sagar Lake and Catchment Area Improvement Project
  24. 24. Sector PPP Type Project Cost (US$ million) Stage Ports BOOT 3,652.2 Construction Energy BOO 3,650.3 Construction Gangavaram Port Ports BOT-Toll 358.6 Construction Four-Laning of Cuddapah Kurnool Road Roads BOT-Toll 347.8 Construction Urban development DBFOT 195.0 Construction Four-laning of Hyderabad Karimnagar Ramagundam Road Roads BOT-Toll 295.2 Bidding Narketpally Addanki Medaramitla Road Roads BOT-Toll 260.2 Bidding Urban development Lease 54.3 Bidding 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 Project Name Vodarevu Nizampatnam ports and portbased corridor Development Krishnapatnam Ultra Mega Power Project Integrated solid waste management for Hyderabad Bus Terminal and Commercial Development at Musheerabad Health spa and resort Source: www.pppindiadatabase.com; P-P-P: Public-Private Partnership EOI: Expression Of Interest, BOOT: Build-Own-Operate-Transfer, BOT: Build-Operate-Transfer, DBFOT: Design-Build-Finance-Operate-Transfer, BOO: Build-Own-Operate
  25. 25. State received “in-principle” approval from the central government in January 2013 for setting up two National Investment and Manufacturing Zones (NIMZs). • The two NIMZs are proposed to be set up in Chittoor and Medak districts and would be spread over an area of 50 sq km each. • Two new NIMZs State-of-the-art infrastructure Investments up to US$ 5.5 billion Total employment potential of around 0.6 million • The state would develop NIMZs as integrated industrial townships, with state-of-the-art infrastructure and land use on the basis of zoning, clean and energy efficient technology, necessary social infrastructure and skill development facilities. • NIMZs could attract investments of US$ 5.5 billion. • Andhra Pradesh expects these NIMZs to have an employment potential of 0.3 million each. NIMZ: National Investment and Manufacturing Zones
  26. 26. Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is the agency responsible for the supervision and execution of SEZs in the state. Of the projected investments of US$ 19.4 billion, US$ 2.6 billion were achieved during 2012-13. Andhra Pradesh has the highest number of operational SEZs in India. There are 38 operational SEZs in the state as of December 2012. Some of the operational SEZs in Andhra Pradesh Name/Developer Visakhapatnam SEZ Location Primary Industry Vishakhapatnam Multi-product Nanakramguda IT/ITeS Achutapuram, Visakhapatnam Textile 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 Mandal IT/ITeS Pocharam, Rangareddy IT Medak Bio-technology Andhra Pradesh Industrial Infrastructure Corporation Ltd Brandix India Apparel City Private Ltd Ramky Pharma City Pvt Ltd L&T Phoenix Info Parks Pvt Ltd Infosys Technologies Ltd Vivo Bio Tech Ltd Medak Dist Source: www.sezindia.nic.in, SEZ: Special Economic Zone
  27. 27. Wipro Limited, Manikonda, Mandal* • • • IT SEZ with exports worth US$ 763.5 million over FY 2008-11 Investments of US$ 65.3 million made and US$ 64.5 million projected 9,018 direct employment opportunities generated, with an estimated employment of 7,000 Divi’s Laboratories Limited, Chippada Village, Visakhapatnam* • • • Pharmaceutical SEZs with exports worth US$ 439.4 million over FY 2008-11 Investments of US$ 65.3 million made and US$ 64.5 million projected 6,912 direct employment opportunities generated, with an estimated employment of 1,500 Hyderabad Gems Limited, Hyderabad* • • • Gems and jewellery SEZs with exports worth US$ 724.3 million over FY 2009-11 Investments of US$ 44.8 million made and US$ 46.0 million projected 6,912 direct employment opportunities generated, with an estimated employment of 10,098 Source: Department of Commerce, www.sezindia.nic.in SEZ: Special Economic Zone, * As of FY2012
  28. 28. Andhra Pradesh has six SEZs with valid in-principle approvals, as of January 2013. SEZs with valid in-principle approvals Name/Developer Location Primary Industry NH-5 between Prakasam and Nellore District Building materials Ananthapur Multi-product Sadasivpet, Medak Strategic Manufacturing M/s Drugs & Pharmaceuticals Manufactures Association Nakkapalli Mandal, Visakhapatnam Pharmaceuticals /APIs/formulations M/s Vivimed Labs Ltd Boyapalem, Naruva & Chittivalasa villages, Ranasthalam Mandal, Srikakulam Chemicals & Pharmaceuticals Visakhapatnam Petroleum and oil & gas industry South Coast Infrastructure Development Co of Andhra Pradesh Private Ltd (SCIDCAP) Lepakshi Knowledge Hub Private Ltd M/s Sri Kubera Infracom India Ltd M/s Planet SEZ Private Limited Source: www.sezindia.nic.in
  29. 29. There are 109 SEZs with formal approvals in the state, as of January 2013. Some of the SEZs with formal approvals Name/Developer WIPRO Ltd APIIC M/s Krishnapatnam Infratech Pvt Ltd Deccan Infrastructure and Land Holdings Ltd Rassai Properties & Industries Ltd Infosys Technologies Ltd Andhra Pradesh Industrial Infrastructure Corporation Ltd (APIIC) Stargaze Properties Private Ltd Location Primary industry Hyderabad IT Visakhapatnam Multi-product Chillakur Mandal, Nellore Multi-product Mahabubnagar Agriculture and livestock Hindupur, Anantapur Multi-services Pocharam Village, Ghatkesar Mandal, Rangareddy IT Nellore Leather Kancha Imarath, Maheswaram IT/ITeS/electronic hardware Source: www.sezindia.nic.in
  30. 30. The state has a literacy rate of 67.7 per cent, according to the provisional data of Census 2011; the male literacy rate is 75.6 per cent and the female literacy rate is 59.7 per cent. Number of colleges (2012-13) Colleges Government junior colleges During 2012-13, 13.39 million students were enrolled in 102,436 schools. There were 66,721 primary schools, 15,579 upper primary schools, 19,053 high schools and 903 higher secondary schools. Number of teachers totaled 495,111. 812 Private-aided junior colleges 225 Private un-aided junior colleges 3,889 Government degree colleges 252 Aided-degree colleges 179 For polytechnic and engineering students, 25 skill development centres have been planned in 23 districts in the state. Course Number of colleges (2012-13) Number of students enrolled Andhra Pradesh increased projected expenditure on education in the 12th five-year plan (2012-17) by more than fourfold to US$ 5,615 million from US$ 1,248 million incurred during 2007-12. Engineering 707 335,000 Master of Computer Application (MCA) 644 46,795 The University of Hyderabad and the Osmania University are among the leading universities in the country. Master of Business Administration (MBA) 926 86,905 Bachelor of Pharmacy 290 29,520 Polytechnics 263 76,000 Source: Andhra Pradesh Socio-Economic Survey 2012-13
  31. 31. At the intermediate college level, courses are available in science, arts and commerce streams. Vocational courses are offered in the fields of agriculture, engineering and technology, home science, paramedical, business and commerce, and humanities. Life-Sciences institutes • • • • Over 2012-13, there were 6,136 junior colleges (aided and unaided, regular and vocational), with a total enrolment of 1.02 million students. The Department of Technical Education, Government of Andhra Pradesh, supports 707 engineering colleges. During 2012-13, three new government polytechnic institutes and two new engineering colleges were sanctioned. • • • • Centre for Cellular and Molecular Biology Centre for DNA Fingerprinting and Diagnostics Indian Institute of Chemical Technology International Crop Research Institute for the SemiArid Tropics (ICRISAT) Directorate of Rice Research National Academy of Agricultural Research Management National Institute of Nutrition Indian Council of Agricultural Research Centers Source: Andhra Pradesh Socio-Economic Survey, 2012-13
  32. 32. Andhra Pradesh Vaidya Vidhana Parishad (APVVP) is fully responsible for the management of secondary level hospitals. APVVP covers 1,624 primary health centres (PHCs), 292 community health centres (CHCs), 91 area hospitals, 17 district hospitals, 12,522 sub-centres and 272 urban health centres. Health Indicators (2010-11) Apollo Hospital Yashoda Hospital Care Hospital Wockhardt Kamineni Hospital Nizam’s Institute of Medical Sciences APVVP controls 234 hospitals equipped with 16,184 beds. MNJ Institute of Oncology and Regional Cancer Centre Basavatarakam Indo American Cancer Hospital & Research Institute Health indicators (2011) Global Hospitals Birth rate* 17.5 Death rate* 7.5 Mediciti Hospitals Infant Mortality Rate** 43 L V Prasad Eye Institute Medwin Hospitals Krishna Institute of Medical Sciences Life expectancy at birth (years) Male (2002-06) 62.9 Female (2002-06) 65.5 Sources: Ministry of Health and Family Welfare, Government of India, Sample Registration System (SRS) Bulletin 2012 (www.censusindia.gov.in) *Per thousand persons, ** Per thousand live births
  33. 33. There are several sports complexes in Hyderabad, Visakhapatnam, Tirupati and other cities. Although swimming and tennis are the major sports, other games are also popular. Major stadiums and sports complexes in Hyderabad Swarnandhra Pradesh Sports Complex The Boulders Hill in Hyderabad, The Army Golf Course in Secunderabad and the East Point Golf Club in Visakhapatnam are well-known golf courses in the state. The Tirupati temple in Southern Andhra Pradesh makes the state one of the leading religious tourism spots in the country. G. M. C. Balayogi Athletic Stadium Gachibowli Indoor Stadium Fateh Maidan Sports Complex The Lal Bahadur Stadium Aquatics Complex In Hyderabad, Andhra Pradesh Tourism has promoted convention centres including Taramati Baradari, Hyderabad International Convention Centre, Shilpa Kala Vedika, HITEX, Marriott Convention Centre, Ramoji Film City and Katriya De Royal – Convention facilities. Kuchipudi is the classical dance form from Andhra Pradesh. It is known for its graceful movements and strong narrative/dramatic character. Kotla Vijay Bhaskar Reddy Indoor Stadium SAAP Tennis Complex, Fateh Maidan Shooting Range, Hyderabad Central University Rajiv Gandhi International Cricket Stadium
  34. 34. Natural resources, policy incentives and infrastructure in the state are favourably suited for investments in major sectors such as drugs and pharmaceuticals, biotechnology, IT and ITeS, mines and minerals, textiles, leather and tourism. Andhra Pradesh is one of the foremost states to have developed sector-specific policies. Forming industrial clusters and developing infrastructure, such as biotech parks, textile parks, leather parks, auto parks, fab city and hardware parks, has been the state’s key strategy to attract investments in various industries. Andhra Pradesh has shortlisted three new industries to develop under the cluster model during the 12th five-year plan (2012-17): marine food processing at Bheemavaram, leather at Nellore and precision & engineering tools at Hyderabad. Key industries in Andhra Pradesh • • • • • • • • • Agro and food-based industry Biotechnology Bulk drugs and pharmaceuticals IT and ITeS Mines and minerals Textiles and leather Tourism Automotive & auto components Gems and jewellery
  35. 35. 98,920 clearances with proposed investments of US$ 83.8 billion have been granted as of October 2012 under the Industrial Single Window Clearance Act, which was enacted in 2002 to create an investor-friendly environment in the state. As of October 2012, the state received 7,632 proposals for large-scale industries. Of these, 3,206 proposals have been utilised for production with an investment of US$ 15.6 billion; providing employment opportunities to 516,403 people. 548 proposals with an investment of US$ 21.5 billion are under the implementation stage. During the Partnership Summit of 2012, the state received 234 proposals worth US$ 119.7 billion. The state government has projected investments of US$ 20.6 billion in large industries and US$ 6.2 billion in MSMEs during the 12th Five-Year Plan. Source: Andhra Pradesh Socio-Economic Survey, 2012-13 MSMEs: Micro, Small & Medium Enterprises
  36. 36. Large scale industries proposals established MSMEs proposals established Investments^ Employment Investments^ Employment 2005-06 350.0 10,875 55.3 15,832 2006-07 1,218.2 26,193 195.7 36,019 2007-08 1,570.8 23,075 537.0 79,258 2008-09 1,237.2 25,058 572.4 85,211 2009-10 2,448.9 11,933 932.9 64,844 2010-11 2,063.4 20,626 1,076.4 104,620 2011-12 1,816.2 21,543 1,018.1 120,435 2012-13* 977.1 12,959 286.1 52,932 Source: Andhra Pradesh Socio-Economic Survey, 2012-13 *Till August 2012, MSMEs: Micro, Small & Medium Enterprises ^ In US$ million
  37. 37. The share of IT exports from Andhra Pradesh accounts for around 12.4 per cent of national IT exports. The IT sector contributes about 39.0 per cent to total exports from all sectors in the state. The IT industry recorded a turnover of US$ 11.1 billion over 2011-12. Of this, exports accounted for 76 per cent and the remaining 24 per cent was generated from the domestic market. Total employment generated by the IT and ITeS industry in the state increased to 318,624 over 2011-12 from 279,438 during 2010-11. Exports from IT industry (in US$ million) Andhra Pradesh has emerged as a state that provides the right climate for the growth of IT business and is currently one of the most preferred destinations in the country. In 2012, the state government unveiled the Electronics Hardware (EH) policy, 2012-17, aimed at providing incentives in the areas of industrial electronics, communication and broadcast equipment, computers and peripherals and strategic electronics and components. The EH policy is the first of its kind initiated by any state in India. As of January 2013, there were 43 IT/ITeS notified SEZs in the state. 8,478.5 CAGR 15.6%* 6,491.6 7,685.3 7,081.0 7,062.2 4,103.8 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Source: Andhra Pradesh Socio-Economic Survey 2012-13 * In Indian rupee terms
  38. 38. Andhra Pradesh received “in-principle” approval from the central government in September 2012 to its ambitious plan of setting up India’s first Information Technology Investment Region (ITIR). • ITIR would be developed around Hyderabad and Rangareddy districts on an area of about 202 sq km (78 sq miles) over a period of 25 years. • First ITIR in India Self contained integrated ITIR Exports potential of US$ 43.3 billion Investment potential of US$ 40.4 billion • ITIR would include SEZs, Industrial parks, free trade zones, warehousing zones, exportoriented units and growth centres. • ITIR could generate revenue of US$ 57.2 billion, with exports of US$ 43.3 billion. • • The state expects the project to have an investment potential of US$ 40.4 billion. Direct employment generated from the project is estimated at 1.5 million once it is fully functional. Source: Andhra Pradesh Socio-Economic Survey 2012-13 ITIR: Information Technology Investment Region
  39. 39. • Formerly Satyam Computers, Mahindra Satyam was established in 1987 and has its global headquarters in Hyderabad and several offices in 39 countries including India. The company provides software solutions to over 370 customers including four of the top 10 electronics and electrical equipment manufacturers, three of the top 10 in aerospace and defence firms, 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 on a 54-acre state-of-the-art campus. MSIDC has offices in nine cities, with 5,800 employees in India. The company focuses on strategic and IP sensitive product development for Microsoft. It is one of the largest software development centres for Microsoft outside the US. It has established centres of excellence for storage, networking and mobility, and has filed over 180 patents in the last three years. • IBM is a leading global IT services and solutions provider, with operations in over 170 countries across the world. Products offered by the company’s Indian operations include software, storage, systems and servers and semiconductors. IBM has been present in India since 1992. Since inception, IBM in India has expanded its operations considerably, with regional headquarters in Bengaluru and offices in 14 cities; including a global delivery centre in Hyderabad. • Cognizant was founded as a captive arm of Dun & Bradstreet, with headquarters in the US and operations in India. The company currently 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. It generated revenue of US$ 7.4 billion in 2012. In December 2009, Cognizant invited 120 personnel from Invensys Rail in Hyderabad to work on its global product research and development tie-up with the latter. Mahindra Satyam Microsoft IBM Cognizant
  40. 40. Andhra Pradesh is the hub of the bulk-drugs industry, accounting for one-third of the national production of bulk drugs. The state produces a majority of the 500 basic drugs produced in the country. Andhra Pradesh accounts for around 40 per cent of country’s bulk drug exports. The state ranks first in the manufacturing of bulk drugs and third in formulations in India. Some of the key players • • Jawaharlal Nehru Pharma City was set up in Parawada, Visakhapatnam. This is an integrated industrial park for bulk drug manufacturers, pharmaceutical companies and fine chemical manufacturers. The industrial park is spread over an area of 2,143 acres; of this, 611.37 acres has been notified as a pharmaceutical SEZ industrial park. The state government helped to develop the pharmaceutical and biotechnology industry via specific policies, promoting a knowledge-based cluster approach with financial incentives and appropriate infrastructure support. Presence of related educational infrastructure has helped the industry. The Biotechnology Incubation Centre was commissioned in 2008. • • Albany Molecular Research Inc (AMRI) Novartis Matrix Laboratories Ltd Indian Immunologicals Ltd (IIL) Source: PHARMABIZ Statistics
  41. 41. Novartis • AMRI’s research centre is located in the ICICI Knowledge Park in Hyderabad. AMRI provides custom 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 115,000 employees. It has been present in India for over 64 years in the healthcare sector. The company has a healthcare-related IT/ITeS and R&D facility in Hyderabad. It has a development centre in Hyderabad. The facility also operates as a global centre for marketing and sales, sourcing, business planning and analysis. In 2012, the company generated revenue of US$ 56.7 billion. • Albany Molecular Research Inc (AMRI) Mylan Laboratories Ltd (formerly known as Matrix Laboratories Ltd) is a subsidiary of USbased Mylan Inc. It has four USFDA-approved facilities in Hyderabad and one USFDAapproved facility in Visakhapatnam. It is one of the world’s largest manufacturers and suppliers of active pharmaceutical ingredients (APIs) for a wide range of therapeutic categories including antibacterials, central nervous system agents, antihistamine/antiasthmatics, cardiovasculars, antivirals, antidiabetics, antifungals, proton pump inhibitors and pain management drugs. In 2011, its revenue totalled US$ 671.4 million. • IIL produces a range of veterinary vaccines such as Foot and Mouth Disease (FMD) vaccines, anti-rabies vaccines, bacterial vaccines, canine vaccines and a host of other combined vaccines. Its range of human vaccines comprises rabies, Hepatitis B, measles, MMR and DPT. IIL 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. Mylan Laboratories Ltd Indian Immunologicals Ltd (IIL)
  42. 42. Andhra Pradesh is one of the leading cotton producing states in the country, with production projected to reach a record of 7.2 million bales over 2012-13 from 5.6 million bales (bales of 170 kg each) during 2011-12. Medium grade and superior long staple varieties of cotton are predominantly grown in the state. The state government has identified the textile sector as one of the long-term growth engines. To utilise the potential of the sector, the government has established five apparel export parks (AEPs) and seven textile parks. It has proposed to establish another five AEPs and 12 textile parks in the state. Andhra Pradesh has emerged as a large textile processing centre. There are over 100 units with an annual processing capacity of about 13 million metres of cloth. The number of power looms totaled 50,000, and 0.7 million families depend on the textile and clothing sector. Handloom and textile exports (in US$ million) 479.3 CAGR 27.6%* 340.2 There are over 150 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 the Integrated Handlooms Development Scheme (IHDS). 404.7 272.6 150.2 2006-07 149.2 2007-08 2008-09 2009-10 2010-11 2011-12 Apparels, fabrics and furnishings have been identified as potential products for exports by the state. Source: Andhra Pradesh Socio-Economic Survey 2012-13, Cotton Corporation of India, * In Indian rupee terms
  43. 43. A variety of agro-climatic conditions in the state make it conducive for growing a variety of horticulture crops such as fruits, vegetables, spices, tuber crops, plantation crops and floriculture. Agro-based and forest products exports (in US$ million) 2,455.6 CAGR 19.2%* Andhra Pradesh is one of the largest producers of rice in India. It is a leading producer of cash crops such as tobacco, groundnut, dry chilly, turmeric, oilseeds, cotton, sugarcane and jute. 1,511.7 1,392.8 1,263.1 During 2012-13, total area under food grains in the state is estimated to be 6.6 million hectares. The state government received a proposal to set up an mega agro and food processing park in Nizamabad district that remains subject to sanction from the Union Agricultural Ministry. 1,230.3 2008-09 2009-10 1,080.6 2006-07 2007-08 2010-11 2011-12 Source: Andhra Pradesh Socio-Economic Survey 2012-13 * In Indian rupee terms
  44. 44. The state is one of the largest producers of horticulture products, with an estimated production of 28.9 million tonnes over 201213. Exports from horticulture stood at about US$ 148.0 million over 2011-12. Andhra Pradesh ranks first in the production of spices, fruits and crops including citrus, papaya, oil palm and tomato. The state produces some of the finest varieties of mangoes, grapes, guavas, papayas and bananas. Horticulture exports break-up, 2011-12 Floriculture and seeds 6% Horticulture production (in million tonnes) and area (in million hectares) Cocoa products 2% 35.0 2.5 26.6 Pulses 10% 30.0 Other fresh vegetables 13% Processed fruits, vegetables 34% 2.7 27.3 2.0 1.9 28.9 2.0 19.1 20.5 20.4 1.0 2011-12 2010-11 2009-10 Production (LHS) Area (RHS) 2012-13** Other fresh fruits 18% 2008-09 0.0 2007-08 15.0 Onions 17% 3.0 2.0 25.0 20.0 2.6 Source: Andhra Pradesh Socio-Economic Survey, 2012-13 **Advanced estimates
  45. 45. • ConAgra Foods Inc, US, is one of the world’s leading food companies. It has partnered with Agro Tech Foods Ltd (formerly ITC Agro) and established an R&D centre to adapt food technologies to Indian conditions. The company has a dominant market position in edible oils and branded foods sectors. Brands include Sundrop, Healthy World, ACT II and Rath. Agro Tech Foods Limited, an affiliate of ConAgra Foods, has its registered office at Secunderabad. • Cargill maintains a number of businesses in India, with operations including handling and processing of a wide range of products such as refined oils, grain and oilseeds, sugar, cotton and animal feed. Cargill’s presence in India has been growing since it began a joint venture (JV) operation in 1987. In 2006, it entered into a JV and subsequently owned a leading shrimp feed manufacturing farm in Rajahmundry. It has also entered into a JV with EID Parry for a sugar refinery at Kakinada in the state. • ITC is a large Indian business conglomerate with diverse business interests including agrifoods, paper, fast moving consumer goods, lifestyle and retailing and hotels. Over 2011-12, its revenue totalled around US$ 7.27 billion. A substantial part of ITC’s agri-business is located in Andhra Pradesh. The company has a unit in Anaparti and Chirala, and a research centre in Rajamundhry. The company also runs its innovative internet-based “e-choupal” initiative in the state for the benefit of farmers. • APDDCF runs 12 dairy plants and manufactures milk products under the Vijaya brand. These plants together have a production 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). ConAgra Foods Cargill India Pvt Ltd ITC Andhra Pradesh Dairy Development Cooperative Federation (APDDCF)
  46. 46. • Forestry sector Andhra Pradesh has 6.38 million hectares of forest area, which accounts for 23.2 per cent of the total geographical area of the state. • Major products include timber, bamboo, firewood & charcoal and beedi leaves. • During 2012-13, the contribution of forestry and logging to GSDP was estimated at US$ 1,566 million. • Fisheries sector The fisheries sector has been identified as one of the six growth engines in the agriculture sector under Vision-2020 of the state. • Andhra Pradesh ranks first in the production of brackish-water shrimp and fresh-water prawns, contributing around 40 per cent to the country’s total marine exports. • Total production of fish and prawns in the state expanded at a CAGR of 11 per cent over FY 2008-12 to reach 1.60 million tonnes. • The contribution of fisheries to GSDP was estimated at US$ 3.0 billion during 2012-13. • Fisheries sector developments The state government entered into an agreement with US-based World Tuna Development International (WTDI) to develop a tuna fishery in the Bay of Bengal • The government sanctioned US$ 2.94 million for the construction of four fish landing centres in the state under Assistance to States for Developing Export Infrastructure and other Allied Activities (ASIDE) funds. Source: Andhra Pradesh Socio-Economic Survey, 2011-12, www.aponline.gov.in
  47. 47. Animal husbandry is rapidly expanding in the state and is playing a significant role in improving the rural economy. The sector provides gainful employment to a large number of small and marginal farmers and agricultural labourers, and enhances their economic status. Production (2011-12) Product Milk (million tonnes) 12.1 20,128 0.82 Meat (million tonnes) 11.2 21,210 Egg (in million) Activities of the animal husbandry department have been oriented towards improving health of livestock and increased production of milk, eggs and meat. Production (2010-11) 0.75 Milk and egg production As of 2011-12, the state had 5,045 institutes supporting production in the animal husbandry sector and 5,305 institutes for health of livestock. 17.6 19.4 20.1 9.6 10.4 11.2 2008-09 2009-10 2010-11 18.3 21.2 15.9 Livestock was estimated to account for 28.5 per cent of the agriculture sector and 5.3 per cent of GSDP over 2012-13. 12.1 7.9 2006-07 8.9 2007-08 Milk (million tonnes) 2011-12 Egg (in billion) Source: Andhra Pradesh Socio-Economic Survey 2012-13
  48. 48. According to the Ministry of Petroleum and Natural Gas, the net natural gas production was about 1,353 million cubic metres during 2011-12. The state’s Krishna-Godavari basin area has a total hydrocarbon resource base of 1,130 million metric tonnes. Andhra Pradesh is the second Indian state, after Gujarat, to enter the oil and gas exploration and production segment through bids for oil and gas blocks under the central government’s New Exploration Licensing Policy (NELP). The Andhra Pradesh government decided to enter the oil and gas exploration and development sector and set up a special purpose vehicle (SPV), the Andhra Pradesh Gas Infrastructure Corp. Limited (APGIC), as a joint venture between two stateowned entities. The infrastructure provider for industries in the state, Andhra Pradesh Industrial Infrastructure Corporation (APIIC), owns 51.0 per cent in the SPV and the remaining is held by AP Genco. APGIC secured four blocks under auction as part of consortium led by ONGC. APGIC owns 10 per cent in the consortium, while other partners ONGC, British Gas and Oil India hold 40 per cent, 35 per cent and 15 per cent, respectively. Hindustan Petroleum Corporation is setting up a diesel hydro-treater unit of 2.2 MMTPA at Visakhapatnam refinery with an investment of US$ 569.4 million. The project is presently in the completion stage. MMTPA: Million metric tonnes per annum
  49. 49. In October 2009, the Department of Petrochemicals, Government of India, signed a Memorandum of Agreement (MoA) with the Andhra Pradesh Government for setting up a Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) in the Visakhapatnam-Kakinada region as an industrial cluster. The state government is in the process of finalising the master plan and obtaining environmental clearances. Anchor projects in PCPIR Other major investors in PCPIR Key features of PCPIR The investments generated in the PCPIR are estimated to be around US$ 72.3 billion. Total area of PCPIR is 603.58 square km. The project is said to have an employment generation capacity of 1.2 million. As per the latest update, total committed investments stood at US$ 35.8 billion. The petroleum and petrochemical sector accounted for around 28 per cent of total committed investment. The state government is investing around US$ 3.95 billion to develop external infrastructure in Andhra Pradesh. PCPIR: Petroleum, Chemicals and Petrochemicals Investment Region Source: http://www.appcpir.com/
  50. 50. Andhra Pradesh is known for its pristine beaches, sacred places of worship, lush green forests, spicy cuisine and hospitable people. With tourist attractions such as Charminar, Golconda Fort, Ramoji Film City, Araku Valley, Borra Caves, Tirupati Balaji Temple and Puttaparthi Saibaba, the state offers attractive investment opportunities to developers and investors. Arrival of international tourists in Andhra Pradesh (in ‘000s) 770.0 789.0 795.2 322.8 264.6 Andhra Pradesh is ranked 13th in international tourist arrivals and accounted for 1.4 per cent of total international tourist arrivals in India in 2011. With 18.0 per cent share of domestic travelers, the state is ranked second in domestic tourist arrivals. The Ministry of Tourism approved 40 projects during the 11th five-year plan period (2007-12, up to March 2011) at a project outlay of US$ 44.3 million and 11 projects over 201213 with an outlay of around US$ 10.7 million (including the recently approved Visakhapatnam-Bheemunipatnam Beach Corridor Mega Circuit). The state government has identified Hyderabad, Visakhapatnam, Tirupati, Vijayawada, Nagarjunasagar and Warangal for tourism development. 2007 2008 2009 2010 2011 Arrival of domestic tourists in Andhra Pradesh (in million) 157.5 155.8 153.1 127.9 2007 132.7 2008 2009 2010 2011 Source: Ministry of Tourism, Government of India
  51. 51. The Union Ministry of Tourism is planning to set up the Southern Zonal Tourism Council (include Andhra Pradesh, Kerala, Karnataka, Tamil Nadu and the Union Territory of Puducherry) to develop integrated tourism circuits. Andhra Pradesh has ventured into the development of ecotourism with private developers on the basis of design, build, finance, operations and maintenance. Upcoming mega projects • Kadapa Heritage Circuit • Tirupati Heritage Circuit • Charminar Area • Buddhavanam Project at Nagarjuna Sagar • VishakapatnamBheemunipatnam Beach Corridor Mega Circuit Current & upcoming eco-tourism projects • Hyderabad Botanical Garden • Mahavir Nischal Van • Night safari and Eco-park, Kothaguda (upcoming) • Bird park, Kothaguda (upcoming) • Mrugavani National Park, Chilkur (upcoming) Sources: Ministry of Tourism, Government of India Andhra Pradesh Socio-Economic Survey, 2012-13
  52. 52. The state is a major producer of hides and skins, producing around 19 million pieces per annum, constituting around 10.0 per cent of the country’s output. Leather Industries Development Corporation (LIDCAP) • Around 34 large and medium tanneries in the state produce about 40 million sq ft of processed hides and skins per annum. Nodal agency for leather industry development in the state • Plans to establish 72 mini-industrial parks on 25 acres of land each for processing raw material, 16 medium industrial parks of 100 acres each for processing semifinished leather and six mega industrial parks of more than 300 acres each, including an International Leather Complex at Krishnapatnam (KILC) • KILC has world class infrastructure for leather tanning and leather processing. The project finance is supported by the Government of India, Government of Andhra Pradesh and has private participation in the Special Purpose Vehicle (SPV) • KILC is located in Krishnapatnam in the Nellore district in an area of 412 acres near the sea coast. It is proposed that KILC would house about 25 tanning units in a floor area of 250 acres of land and about 21 leather processing units with capacities ranging between six and 25 tonnes and a total capacity of 300 tonnes over a floor area of 220 acres. Hyderabad and Nellore are the key leather production clusters in the state. The government provides financial assistance in the form of investment grants to the extent of 30.0 per cent of cost of plant and machinery for small scale industries (SSI) and 20.0 per cent of cost of plant and machinery for other units, subject to a ceiling of US$ 120,000 for technology upgradation or/and expansion. Source: Leather Sector in AP, ILC Profile, LIDCAP Website: www.lidcap.org, www.aponline.gov.in
  53. 53. The state’s mineral production was estimated at US$ 3.1 billion over 2011-12. Andhra Pradesh contributed about 7.0 per cent to the country’s mineral value production during 2011-12. Share of the national mineral reserves (%) in India Corundum 70.0 61.0 Calcite 42.0 Mica The Government of India has started exploration of sizable uranium deposits in Kadapa and Nalgonda districts in Andhra Pradesh through M/s. Uranium Corporation India Ltd, a public sector undertaking. 78.0 Ball Clay Andhra Pradesh has the highest deposits of barytes, limestone and beach sand heavy minerals in the country. 94.0 Kyanite The state received around US$ 0.5 billion of revenue from minerals during 2011-12. Barytes 41.0 Garnet 26.0 Ilmenite 23.0 Limestone 20.0 Dolomite 15.0 Diamond 6.0 Sources: Indian Mineral Scenario - States, Ministry of Mines Website, www.mines.nic.in
  54. 54. Coal is the major mineral produced in the state. Coal contributed 32.8 per cent to total revenue generated from mineral production in the state over 2011-12. Andhra Pradesh is the second largest cement producer in the country, with an installed capacity of 50 million tonnes per annum across 42 plants. Value of exports (in US$ million) Andhra Pradesh - Minerals revenue (in US$ million) 600.0 1,840.5 40.0% 501.1 500.0 476.3 412.7 400.0 382.2 328.3 415.7 35.0% 30.0% 300.0 25.0% 200.0 960.4 20.0% 863.4 680.9 738.0 673.7 100.0 15.0% 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 All minerals (LHS) Coal as a % of total production (RHS) Sources: Andhra Pradesh Socio-Economic Survey 2012-13
  55. 55. Hyderabad is one of the leading hubs for the jewellery sector in India. The state produces a wide array of precious and semi-gems as well as pearls. Andhra Pradesh Gems and Jewellery Park is a joint venture between the IOI Corporation and Andhra Pradesh State Trading Corporation. It has been developed as a state-ofthe-art facility, in which the floor space would be sold to jewellers and pearl dealers. The state has an estimated reserve of 12.10 million tonnes of gold ore and 1.82 million carats of diamond. In the state, diamond is mostly found at Cuddapah, Anantapur, Bellary, Kurnool, Kistna, Godavary and Guntur districts. Hyderabad Gems SEZ Limited (HGSEZ) • Spread across 200 acres, the Hyderabad SEZ houses about 75-100 diamond, gold and watch manufacturing units. • The SEZ has a training centre for manufacturing jewellery and cutting and polishing of diamonds.
  56. 56. M&M tractor manufacturing plant in Medak Entry of automobile manufacturers • One of India’s largest automobile manufacturers Mahindra and Mahindra (M&M) inaugurated Asia’s largest tractor manufacturing plant at Medak district, Andhra Pradesh in March 2013. • The facility has been set up with an investment of around US$ 55 million and has a production capacity of 0.1 million tractors per year. • M&M is planning to set up a passenger vehicle plant in the state. • Japanese auto manufacturer Isuzu Motors Ltd announced plans to set up a light commercial vehicle (LCV) manufacturing plant in Chittoor district in 2013, with an estimated investment of US$ 276 million.
  57. 57. • • Hospitality, leisure and entertainment • • • • • • Retail • • • Being a major tourist hub in the country, the state is making rapid strides in the retail and entertainment segment. The sector is attracting investments in projects such as world-class spas, entertainment centres, mega shopping malls, multiplexes, business convention centres and theme parks. Urban entertainment, including amusement parks, has redefined leisure and entertainment activities in the state. Hotel projects under development include Taj GVK Hotels & Resorts, Pride Hotel, Duet India Hotels Ltd, Hotel Leela Ventures (all at Hyderabad), Svenska Hotels Ltd (port town). APTDC has planned to invest US$ 62.6 million to implement nine hotel projects and develop new facilities, including three eco-tourism sites. Organised retail is catching up fast with significant mall development in the pipeline. Shopping malls are being developed in suburban and peripheral areas followed by central business district. Reliance Retail opened its first 'Reliance Fresh' stores in Hyderabad and Secunderabad in late 2006. Reebok has opened its largest store in the world in Hyderabad. GVK Group opened ‘GVK one’,a world-class shopping space measuring over 700,000 sq ft in Hyderabad in May 2009. ‘GVK one’ also hosts a 1,257-seat INOX multiplex, along with a themed entertainment centre Funzone in Hyderabad. APTDC: Andhra Pradesh Tourism Development Corporation
  58. 58. • Electronics hardware Key segments within electronics hardware industries in the state include telecommunications, industrial electronics, test and measuring equipment, computer and consumer electronics and strategic electronics. • There is immense scope for investments in the fields of nanotechnology, semiconductors, computer peripherals, appliances, precision engineering, integrated circuits, large scale integration chips (LSICs) and very large scale integration chips (VLSICs). • Semiconductors An investment of US$ 3 billion has been announced for setting up a fabrication unit in Fab City, Hyderabad, to manufacture semiconductors used in computers, mobile phones and other digital devices • Fab City has been allotted 1,050 acres, close to the new international airport. • The Electronics Hardware Policy of the state offers various incentives, such as exemptions, reimbursements and facilitating technical education to promote the industry.
  59. 59. Andhra Pradesh is the first state in the country to have enacted the Industrial Single Window Clearance Act No 17 of 2002. The Act made it compulsory for new industries to register with the single-window to obtain clearances quickly. It also simplified procedures for getting industrial clearances. Committees were constituted at district and state levels to communicate to the applicant, the status of their clearances. It has set time slots for issuing clearances and incorporated a provision for deemed approval after the expiry of time limit. District level committees can clear investments not exceeding US$ 219,442. State level committees can clear those exceeding US$ 219,442. Above the district and state level committees is an empowered committee headed by the Chief Secretary of the state government, who reviews and monitors disposal of applications. Overall, a State Board under the chairmanship of the Chief Minister oversees the progress of the scheme. The maximum time taken to issue clearance of applications at all stages is 45 days. Violation of the provisions of the Act made either through self-assessment or otherwise would invite a penalty of US$ 109 in the first instance and US$ 219 in the second instance.
  60. 60. Agency Description • The SIPB has been created by the Government of Andhra Pradesh with the state Chief Minister as Chairman and members (consisting of Finance Minister, Minister for Revenue, Minister for Major Industries, Minister for Energy, and other ministers) connected with specific projects as special invitees as well as the Chief Secretary to Government as member or convener. • The Industries & Commerce Department issues a single order on each project, incorporating the decisions of the Board. The concerned Departments of Secretariat issue further necessary orders, with which they are concerned, on the decisions taken by the SIPB. • Controls the office of Principal Secretary, Industries & Commerce, Commissioner of Industrial Promotion. • They are responsible for SSIs and control the office of the Commissioner of Industries & Export Promotion, Commissioner Handlooms and Textiles, Commissioner for Sugar and Director, Mines and Geology. • The Industries & Commerce department is headed by the Industries Minister and is controlled by the Principal Secretary. State Investment Promotion Board (SIPB) Major Industries, Commerce and Export Promotion Ministry
  61. 61. Corporations under Industries and Commerce Department Andhra Pradesh Industrial Development Corporation (APIDC) Andhra Pradesh Industrial Infrastructure Corporation (APIIC) Andhra Pradesh Mineral Development Corporation (APMDC) Andhra Pradesh State Finance Corporation (APSFC) Andhra Pradesh State Trading Corporation (APSTC) Andhra Pradesh State Handloom Weavers Co-operative Society Limited (APCO) Leather Industries Development Corporation of Andhra Pradesh (LIDCAP) Andhra Pradesh Handicrafts Development Corporation (APHDC) Andhra Pradesh Khadi & Village Industries Board (KVIB)
  62. 62. Agency Contact information Andhra Pradesh Industrial Infrastructure Corporation 6th Floor, Parisrama Bhavan Fateh Maidan Road, Basheerbagh Hyderabad - 500 004 Phone: 91-40-2323 7622, 2321 2798 Fax: 91-40-2323 3393, 2323 3251 E-mail: hyd@apiic.in Website: www.apiic.in Department of Industries and Commerce Industries and Commerce Department 2nd Floor, D Block, Room No-348A Secretariat Hyderabad - 500022 Phone: 91-040-23454449 Fax: 91-040-23452985 E-mail: secy_inds@ap.gov.in Website: http://industriesportal.apcgg.gov.in/
  63. 63. S No Approvals and clearances required Respective departments of state 1 Registration, Industrial Entrepreneurs Memorandum (IEM), Industrial Licenses Registrar of Firms 2 Allotment of Land/Shed in Industrial Estates or Industrial Areas Andhra Pradesh Industrial Development Corporation 3 Acquisition and alienation of government lands Chief Commissioner of Land Administration (CCLA) Estimated time 7 days 7 days for up to 1,000 sq m 21 days for above 1,000 sq m 45 days Panchayat Raj Department Urban Development Authority 4 Site and Building Plan Approval 7 days Town and Country Planning Municipality Urban Development Authority 5 Change of land use Town and Country Planning 45 days Municipality Source: Commissionerate of Industries, Government of Andhra Pradesh
  64. 64. S No Approvals and clearances required Respective departments of state Green 6 Consent for establishment under Pollution Control Orange Estimated time 7 days AP Pollution Control Board 21 days Red Green 7 Consent for operation under Pollution Control 45 days 7 days Orange AP Pollution Control Board Red 8 No-Objection Certificate for Fire Safety 9 Licence for possession and use of Rectified Spirit 11 Licence for possession and use of Denatured Spirit 12 VAT/CST registration 45 days Permission for Establishment of Distillery 10 21 days Fire Services Department 15 days 30 days Excise Department 7 days 7 days Commercial Taxes Department 7 days Source: Commissionerate of Industries, Government of Andhra Pradesh
  65. 65. S No Approvals and clearances required 13 Power feasibility 14 Power connection 15 Respective departments of state Approval of factory plans Estimated time 7 days Power Distribution Companies 23 days 7 days Factories Department 16 Factory license 17 Sanction of water supply 18 Water connection 19 Permission to draw water from rivers and/or public tanks 7 days Hyderabad Metro Water Supply and Sewerage Board Irrigation Department 7 days 23 days 30 days Source: Commissionerate of Industries, Government of Andhra Pradesh
  66. 66. Parameter Cost estimate Land Price (US$ per sq m) 20 to 200 Labour Cost (minimum wages per day) US$ 2.8 to US$ 5.5 Lease Rent (US cents per sq ft per month) 36.6 to 61.0 Electricity (US cents per kWh) Commercial: 8.0 to 18.7 Industrial: 7.6 to 12.5 Residential Rent (US cents per sq ft per month) 12.6 to 62.5 Five-Star Hotel Room (US$ per night) 125 to 512 Water Cost (US$ per 1,000 litres per month) Commercial (Hyderabad ): 0.42 to 1.04 Industrial (Hyderabad): 0.52 to 2.08 Sources: Andhra Pradesh Government Websites and Industry Sources, Ministry of Labour and Employment, Government of India, Andhra Pradesh Electricity Regulatory Commission, Hyderabad Metropolitan Water Supply & Sewerage Board
  67. 67. Andhra Pradesh Solar Power Policy -2012 Objectives • • To encourage, develop and promote solar power generation in the state with a view to meet growing demand for power in an environmentally and economically sustainable manner To attract investment in the state for the establishment of solar power plants Read more Electronic Hardware Policy 2012-2017 Objective • To provide special incentives and facilities for the electronic hardware sector in line with the present ICT policy. The policy would cover areas such as industrial electronics, communication & broadcast equipments, computers & peripherals, and strategic electronics & components (semiconductors, solar & displays) Read more Food Processing Policy 2010-2015 Objective • To provide a special focus to the food processing industry by extending the benefits for five years from April 2010 to March 2015. The policy would cover areas such as horticulture, agriculture, animal husbandry, fisheries, agro food processing industries and allied industries Read more
  68. 68. Information and Communications Technology (ICT) Policy 2010-15 Objective To make Andhra Pradesh one of the fore runners in the IT sector in the country The objective would be achieved through the following initiatives: • Provision of congenial, industry-friendly and proactive climate for IT companies to locate, grow and sustain their operations in a most competitive and hassle-free environment • Creation of employment opportunities for the educated youth of all sections of the society across regions • Achieving higher levels of exports, resulting in enhanced productivity and augmentation of GSDP • To spread IT to every nook and corner of the state Read more • Leverage IT as a tool for the socio-economic development of the state. Industrial Investment Promotion Policy (IIPP) 2010-2015 Objective • To build a strong and vibrant industrial economy that spins off large capital formation in the state and advances inclusive development of all sections of the population and industry that creates increasing employment opportunities, and raises wage incomes to higher levels through skill upgradation to improve the quality of life of citizens of the state. Read more
  69. 69. Tourism Policy 2010 • To position the state competitively for attracting private sector investments in the tourism and hospitality sectors • To target the incentives to the private sector better as per the state government's priorities in terms of geographical areas and tourism products • Objectives To focus on maximum generation of employment in the sector by the development of Human Resources through capacity building Read more Biotechnology Policy 2001 Objective • To undertake a detailed inventory evaluation of bio-resources in the state to encourage research and development (R&D), develop high-quality infrastructure and provide special incentives to the biotech industry Read more
  70. 70. Exchange rates Year INR equivalent of one US$ 2004-05 44.95 2005-06 44.28 2006-07 45.28 2007-08 40.24 2008-09 45.91 2009-10 47.41 2010-11 45.57 2011-12 47.94 2012-13 54.31 Average for the year
  71. 71. India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. 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 substitute for professional advice. Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.

×