Telangana State Report July 2017

For updated information, please visit www.ibef.org July 2017
TELANGANA
THE 29th STATE OF INDIA

Table of Content
Executive Summary .…………….….…….3
Advantage State …...…..………………….4
Telangana Vision ………………………….5
Telangana – An Introduction …….……….6
Budget 2016–17 …………..………...……18
Infrastructure Status ................................19
Business Opportunities ……..……….......38
Doing Business in Telangana ………...….52
State Acts & Policies …….……….............53

For updated information, please visit www.ibef.orgTELANGANA3
 Hyderabad is the major IT hub of the state across the country. During 2015-16, 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$ 101.56 billion during 2016-17.
 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 2017-18
Hyderabad – The IT
hub of the state
 In 2014-15, “Telangana Samskruthika Sarathi”, a distinct state level body was created to generate awareness
about the cultural heritage of Telangana and provide information regarding the various policies and schemes
of the Government of Telangana.
Promoting tourism &
historical past
 In 2017-18, the overall planned and non-planned allocation for various sectors of the state amounted to US$
23.23 billion.
Growth in annual
budget

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.
June 2017
Installed
power
capacity:
12,148.78
MW
2018E
Installed
power
capacity:
23,675 MW
Advantage
Telangana
Growing economy and improving infrastructure
 Telangana’s GSDP grew at a CAGR of 10.50%
between 2011-12 and 2016-17.
 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

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 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.
 Mahaboobnagar, Ranga Reddy, Hyderabad, Medak, Nizamabad,
Adilabad, Karimnagar, Warangal, Khammam and Nalgonda are the
10 districts of Telangana.
 Hyderabad, Secunderabad and Warangal are the key cities in the
state.
Source: Maps of India
Parameters Telangana
Capital Hyderabad
Geographical area (lakh sq. km) 114,840
Administrative districts (No) 10
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

TELANGANA IN FIGURES … (1/2)
Parameter Telangana All states Source
Economy 2016-17 2016-17
GSDP as a percentage of all states’ GSDP 4.30 100.0
Directorate of Economics & Statistics of Telangana,
Central Statistics Office
GSDP growth rate (%) 13.67 11.52
Per capita GSDP (US$) 2736.32 1611
Physical Infrastructure
Installed power capacity (MW) 12148.78 330273.65 Central Electricity Authority, as of June 2017
Wireless subscribers (No) 85,386,248
1
1,180,824,744
Telecom Regulatory Authority of India, as of May
2017
National highway length (km) 2,635.84 100,087.08
NHAI, Roads and Building Department-
Government of India
Airports (No) 1
2
125 Airports Authority of India
Note: 1 For 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) 13.76
1
332.11
Department of Industrial Policy & Promotion, April
2000 to March 2017
Industrial Infrastructure
PPP projects Completed & Operational (No) 13 1,246
DEA , Ministry of Finance, Government of India, July
2016
Operational SEZs (No) 29 200
Notified as of April 2017, Ministry of Commerce &
Industry, Department of Commerce, April 2017

ECONOMIC SNAPSHOT – GSDP
GSDP of Telangana at current prices (in US$ billion)
 At current prices, Telangana’s GSDP stood at US$ 101.56
billion in 2016-17.
 Between 2011-12 and 2016-17, GSDP of the state grew at a
CAGR of 10.50%.
Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office,
55.78
62.32
70.19
79.34
89.35
101.56
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
CAGR 10.50%
GSDP per capita of Telangana at current prices (in US$)
1,827.04
1,773.24
1,785.35
1,932.65
2,399.42
2,594.85
0.00
500.00
1000.00
1500.00
2000.00
2500.00
3000.00
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
CAGR 9.59%
 Telangana’s per capita GSDP^ increased to US$ 2,594.85
during 2016-17 from US$ 1,827.04 in 2011-12.
 Average per capita GSDP rose at a CAGR of 9.59% between
2011-12 and 2016-17.

ECONOMIC SNAPSHOT – NSDP
NSDP of Telangana at current prices (in US$ billion)
50.47
56.49
63.46
71.81
81.09
92.19
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
CAGR 10.56%
 At current prices, Telangana’s net state domestic product
(NSDP) was estimated at US$ 92.19 billion in 2016-17.
 Between 2011-12 and 2016-17, the average annual NSDP
growth rate was about 10.56%.
 Telangana’s per capita NSDP grew from US$ 1,414.32 during
2011-12 to US$ 2,457.97 over 2016-17.
 Average per capita NSDP increased at a CAGR of 9.65%
between 2011-12 and 2016-17.
NSDP per capita of Telangana at current prices (in US$)
1,414.32
1,567.34
1,743.49
1,953.09
2,183.59
2,457.97
0
500
1000
1500
2000
2500
3000
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
CAGR 9.65%
Source: Directorate of Economics & Statistics of Telangana

ECONOMIC SNAPSHOT – PERCENTAGE
DISTRIBUTION OF GSDP
 At a CAGR of 16.17 per cent, tertiary has been the fastest growing
sector in the state between 2011-12 and 2016-17.
 The primary sector increased at a CAGR of 11.12 per cent between
2011-12 and 2016-17, followed by secondary sector (CAGR of 5.06
per cent).
 In 2016-17, the tertiary sector contributed 63 per cent to the state’s
GSDP at current prices. It was followed by the industry sector (19
per cent) and primary sector (18 per cent).
Percentage distribution of GSDP (Current prices)
19.50% 18.00%
27.60%
19.00%
52.80% 63.00%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011-12 2016-17
Primary Sector Secondary Sector Tertiary Sector
11.12%
16.17%
5.06%
CAGR
Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office

ECONOMIC SNAPSHOT – AGRICULTURAL
PRODUCTION
 Telangana is primarily a rain fed state & experiences irregular
distribution of rain.
 During 2015-16, 5.56 lakh hectare of area was under cultivation of
maize, whereas pulses were cultivated over an area of 4.55 lakh
hectare, in the state.
 Thus, after the divergence, the state is expected to grasp a leading
position in the production of pulses & coarse grains.
 As per state budget 2016-17, 2 waiver instalments out of 4 have
been deposited into the bank accounts whereas the 3rd instalment
is expected to be unconfined during 2016-17.
 The state government has proposed an amount of US$ 1.03 billion
for the departments of Agriculture & Cooperation & Marketing.
Source: Telangana Socio Economic Outlook 2016, Telangana State Budget 2016-17
Crop
Annual Area
(‘000 hectare)
Annual Production
(‘000 tones)
2014-15 2015-16 2014-15 2015-16
Rice 1,415 951 4,545 2,979
Cereals &
millets
2205 1591 6955 4685
Pulses 408 455 263 250
Fruits 2613 2046 7218 4935
Cotton 1693 1778 3583 3608
Production of horticulture crops (million MT)
5.28
2.84
9.14
4.07
2.66
7.46
0
2
4
6
8
10
Productionof
Fruits
Productionof
Vegetables
Productionof
PlantationCrops
2014-15 2015-16
Annual area & production of key crops

ECONOMIC SNAPSHOT – INVESTMENTS & EXPORTS
 In June, 2015, the Government of Telangana introduced a new
industrial policy to attract domestic as well as international
investments in the industrial sector of the state, with emphasis on
core manufacturing sectors.
 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$
12.71 billion.
 According to the Department of Industrial Policy & Promotion (DIPP),
cumulative FDI inflows(2) in Telangana from April 2000 to March
2017, totaled US$ 13.76 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.
Investment intentions in terms of IEMs filed, LOIs/DILs issued
in Telangana
176 132 132 134 117 145 139
57
2,267.90
2,090.90
1,822.20
1,307.60
1,032.70
1,591.43
3,294.06
1,572.01
0
500
1000
1500
2000
2500
3000
3500
2010
2011
2012
2013
2014
2015
2016
2017
Number of Investment Intentions
Source: Department of Industrial Policy & Promotion, Government of India, Ministry of Commerce & Industry, Government of India
Note: (1) As of April 2017, (2) Including Andhra Pradesh, IEMs – Industrial Entrepreneur Memoranda, LOIs – Letters of Intent, DILs – Direct Industrial Licences

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 & during 2015-16, the restoration of the tanks was
done with the people’s active participation. Moreover, the phase-II of
restoration is expected to be initiated within coming years.
 The state government has proposed an amount of US$ 3.82 million
for the construction of the above mentioned projects & for the
fulfilment of Mission Kakatiya during 2016-17.
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 (Kharif)
Gross Irrigated Area 2,529 1,324
Net Irrigated Area 1,726 1,313
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 irrigation 3,139.11
Medium irrigation 162.22
Minor irrigation (PWD) 276.28
State Irrigation Development Corporation 34.15
Commissioner, CAD-EAP 10.61
Irrigation sector investment – 2017-18 (US$ million)
Projects Investment
Ground Water Department 2.02
Command area development 34.28
Flood control and drainage 15.81
Irrigation sector investment- 2017-18 (US$ million)
Source: Telangana State Portal

BUDGET 2017-18
 In 2017-18, the overall budgeted allocation amounted to US$ 23.20
billion for various sectors of Telangana. The allocation of funds was
about 14.59% higher in comparison with the 2016-17 budget.
 The State budget for 2017-18 has done away with classification of
expenditure into plan and non plan. Expenditure will now be
classified as revenue and capital expenditure.
Source: Telangana State Portal, Department of Finance
Sector 2017-18
Agriculture and allied services 862.84
Rural development 1,254.29
Irrigation 3,674.75
Roads & Buildings 556.28
Industry and minerals 133.07
General Education 407.17
Transport 597.80
Economic services 35.44
Annual Budget (Estimates in US$ million)

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 June 2015, state was
home to 16 national highways with total length of 2,690 km. The
overall road length for Telangana state was around 26935 km as of
2015-16.
 Of the total road length in the state, 17,076 km of roads are of single
lane, 772 km are of intermediate lane, 7,357 km are of double lane
and the remaining are of 4-lane and above.
 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
commenced construction of 2,570 km long new roads in a phased
manner during 2015-16.
 Moreover, the state government has also undertaken various steps
for renovation and repairing of about 4,000 km roads in the state.
Further, for the upliftment of roads and bridges, the Government of
Telangana has proposed an amount of US$ 509.16 million.
 In December 2016, the central government approved five road
projects worth US$ 1.18 billion.
 In April 2017, the Ministry of Road Transport and Highways has
approved the project for the development of 14 roads with a total
length of 570 Km for a cost of US$ 537.50 millon.
Road type Road length (km)
National highways 2,690
State highways 3,152
Major district roads 12,079
Other district roads 9,014
Total 26935

PHYSICAL INFRASTRUCTURE – RAILWAYS
 Telangana is well-connected to other parts of the country through the
rail network. During 2014-15, the state had a railway network of
1,753 km having 228 railway stations.
 As per the state annual plan, the Government is planning to build
rapid rail connectivity in the state. The rapid rail line will connect the
capital of Telangana to the new capital of Andhra Pradesh. For
construction of new railway lines in the state, the government
proposed an investment of US$ 3.10 million in 2017-18.
 The metro rail project of the state 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.
 Hyderabad Metro Rail project is being implemented through public
private partnership (PPP) mode. Investment of US$ 2.1 billion has
been approved by private partners and as of August 2015, combined
viability gap funding (VGF) worth US$ 0.24 billion was approved by
the central and state governments for the state.
 The two stretches of Hyderabad Metro Rail Ltd i.e. Miyapur-SR
Nagar (11 km in corridor-I) and Nagole-Begumpet (16 km in corridor-
III) sections are expected to get completed by the end of 2017.
Source: Telangana State Statistical Yearbook 2015, News articles

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.
 An amount of US$ 138.52 thousand and US$ 1.65 thousand has
been approved by the Government of Telangana for the development
of Hyderabad airport and regional airport, respectively. For the
development of Warangal airport, the government proposed an
investment of US$ 165.89 thousand during 2015-16.
Source: Telangana State Statistical Yearbook 2015, State Budget 2016-17

PHYSICAL INFRASTRUCTURE – AIRPORTS … (2/2)
Source: Airport Authority of India
80,016
82,658
99,013
90,151
87,741
94,057
1,05,772
1,30,713
0
20,000
40,000
60,000
80,000
1,00,000
1,20,000
1,40,000
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
Hyderabad aircraft movement (nos.)
6.51
7.60
8.44
8.30
8.65
10.40
12.38
15.10
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
Hyderabad passenger traffic (million)
 During 2016-17, Hyderabad airport handled 111,011 tonnes of
freight. In April 2017, the volume of freight handled at the airport
stood at 9,599 tonnes.

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 June 2017, the total installed power capacity of Telangana
state was 12,148.78 MW. Out of this, 6,463.43 MW was contributed
by state utilities, 3,658.50 MW by private utilities and 2,026.85 MW
by central utilities. Thermal power was the largest contributor in the
state’s total installed capacity with 7,750.95 MW, followed by
hydropower with a contribution of 2,380.93 MW, renewable energy
with 1,868.17 MW and nuclear power with 148.73 MW. The
Government of Telangana is planning to increase the installed power
capacity of the state to 23,912 MW by 2019.
 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).
 Various new power projects have been taken up in the state during
2015-16, which include Pulichintala, Bhadadri Thermal Power
Station, Lower Jurala, Yadadri Thermal Power Station as well as
Kothagudem Thermal Power Station. These projects have a capacity
of 6,160 MW, collectively. Further, in order to set up thermal power
plants of 6,000 MW capacity across the state, the state government
signed a MoU with Bharat Heavy Electricals, Ltd. during 2015-16.
Source: Central Electricity Authority, State Budget 2016-17, State Portal
Per capita power consumption by district (all categories) (KWh)
503
554
749
682
716
929.0
1,209.00
1,307
1,342.00
1,439
0 500 1000 1500 2000
Adilabad
Khammam
Nizamabad
Warangal
Karimnagar
Mahaboobnagar
Ranga Reddy
Hyderabad
Nalgonda
Medak
 BHEL (Bharat Heavy Electricals Ltd) started the first unit of 4x30MW
Pulichintala hydroelectric project in Telangana, on December 2,
2016.
 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 143MW
 In May 2017, Bharat Heavy Electricals (BHEL) bagged a project
worth US$ 34.65 million for a steam and power generation package
from Ramagundam Fertilizers and Chemicals Ltd (RFCL).

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
Under
Construction
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
Under
Construction
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.
 During 2015-16, a SEZ has been developed in Madikonda village of
Warangal district. IT/ITeS, formulation, biotech & aerospace are the
major sectors where SEZs are operating.
 In February 2016, Cognizant Technologies Services Pvt Ltd sought
government approval to set up a special economic zone (SEZ) in
Telangana. Cognizant has proposed to set up an IT/ITeS SEZ in
Ranga Reddy district of Telangana, over an area of 2.51 hectares.
 As of June 2017, Telangana had 146 SEZs; of which, 29 are
operational, 52 are notified & 64 are formally approved
 As of 10th May, 2016, the total utilised area of notified SEZs in
Telangana stood at 1,957.22 hectares.
22
2
1
1
1
1 1
IT/ITES
Biotech
Gems & Jewellery
Aviation Sector
Semiconductors
Aerospace Engineering
Industries
Pharmaceuticals
Sector-wise operational SEZs in Telangana (2015-16)

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
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 85.39 million wireless
subscribers and 1.62 million wireline subscribers as of May 2017.
 As of March 2016, there were 5,835 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 85,386,248
Wireline subscribers 1,619,198
Tele density (in %) 97.54
No. of GPs in Phase-I 2,097
Pipe laid (kms.) 4,038
Cable laid (kms.) 4,462
GPs for which cable laid 2,038
No. of GPs Lit 106
Telecom Infrastructure (As of February 2017)
Performance status of NOFN project (as of April 2016)

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.
 The Telangana Government has announced fee compensations for
students who belong to native & low income backgrounds. During
2015-16, the spend on the fee reimbursement was US$ 125.5
million.
 In 2015-16, the 3 newly established universities Sri. P.V. Narasimha
Rao Telangana State Veterinary University, Sri. Konda Laxman
Horticulture University & Prof. Jayashankar Agricultural University
have been allocated with an investment budget of US$ 43.5 million.
 As of March 2017, to create awareness & encourage the students,
the state government has decided to give US$2974.86 as incentive
to each of those students who have secured admission in the
National Defence Academy & have successfully completed their
training.
Source: Central Statistics Office, Budget 2016-17, 2017-18, Telangana Finance Department, News Articles
Literacy rate 66.5
Male literacy 74.9
Female literacy 57.9
Literacy rates (%)
Classes Total
Pre Primary 94,892
(I-V) 3,246,785
(VI-VIII) 1,758,189
(IX-X) 1,058,284
(XI-XII) 33,721
Enrolment of students in Schools (2015-16)
 As per budget 2017-18, the state government has proposed an
amount of US$ 1.97 billion.
Note: IT- Indian Institute of Technology, IIIT- International Institute of Information Technology, NIT- National Institute of Technology,

 As per budget 2016-17, the state government set up a total of 70
new English medium residential schools in the state, at an estimated
cost of US$ 53.46 million, for minorities, which are expected to be
active by 2016-17.
 For medical education, training & research department, the budget
allocation during 2017-18 is US$ 34.26 million.
 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.
Source: State Budget 2016-17, 2017-18
Elementary education 627.74
Secondary education 593.28
Universal and higher education 240.11
Adult education 3.16
Language development 0.66
Technical education 49.51
Budget Allocation for Education Sector in 2017-18 (US$ million)

Construction of medical college and hospital at Nizamabad 15.26
Construction of new nursing college at Adilabad 0.11
Construction of new nursing college at Warangal 0.10
Construction of medical college and chest hospital, Hyderabad 0.06
Construction of nursing college and hostel at Gandhi Hospital Premises, Secunderabad 0.33
Construction of nursing college, Hyderabad 1.38
RIMS medical colleges 1.95
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$7.43 million to make research establishments such as CCMB,
IICT, LV Prasad Eye Institute and ICRISAT.
• In June 2017, the state government inaugurated the largest
dedicated medical devices park of the country. Companies such
as Apollo Hospitals, Cyient Ltd. Sandor Medicaids, and 11 other
companies have already been allocated 50 acres in the 250-acre
park in Sultanpurof Sangareddy district.
Source: Department of Health, Medical & Family Welfare & National Health Mission, Government of Telangana, Telangana Budget 2016-17
Primary health centres 675
Sub centres 4,863
Community health centres 114
Area hospitals 42
District hospitals 8
Health infrastructure (as of November, 2015)
Urban Health Services 495.88
Rural Health Services 414.67
Total 910.55
Budget allocation for health & family welfare in 2016-17 – US$
million
 For 2016-17, the state government also proposed to establish 40
diagnostics and 40 dialysis centres in the state. Further, the
transmission of Community health centres to Vaidya Vidhana
Parishad of Telangana is also expected to be accomplished during
2016-17.

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$ 8.55 million is also projected to be
delivered to Medical and Health Department heads for fulfilling the
growing needs of the healthcare during 2016-17.
 In March 2017, Telangana was the best performing state pan India,
since the implementation of Mission Indra Dhanush. The mission
aims at immunizing infants below two years of age and pregnant
women.
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 industrial sector accounted for around 22.1% share in overall
GVA of the state during 2016-17. In the state budget 2017-18, the
Government of Telangana proposed an investment of US$ 133.07
million for endorsement of various industries in the state.
 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 3.17 3.13 604 6,604
2015-16(1) 2.64 0.29 44 606
2016-17(2) 3.11 1.41 256 3,189
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

AMRUT AND SMART CITIES … (1/2)
 As of June 2017, 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. During 2015-2016, 3,779 MSME units were established
in the state with a cumulative investment of US$ 242.32 million.
 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 2016-17, the work on construction of the textile
hub & a new pharma city in Warangal 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. In addition, the state government has
also proposed to establish 3 Aerospace parks in the state during
2016-17.
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.
 The growth in the total exports of IT and ITeS products in Telangana
is higher than India’s IT and ITeS exports by 2.7%. Hyderabad
accounts for a majority of the share in the exports of IT products in
the state. During 2015-16, exports of IT products of Telangana stood
at US$ 10.42 billion.
 As of June 2017, out of the 274 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.
 State government signed an MoU to explore cloud, machine learning
with Microsoft Corporation, India, to improve healthcare and
agriculture sectors in the state of Telangana.
Source: Telangana 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 the uplifting the
performance of the sector in the state.
 Datawind is going to set up a manufacturing facility in Hyderabad,
with a investment of US$ 15.27 million. In the first year of inception,
the facility has a target of producing 20 lakh tablets and phones.
 The state government has set a target of connecting its 23 million
residents via internet, by 2018.
2016-17
Exports 13.27
IT Units 1,400
(1)
IT & ITeS exports from Telangana (US$ billion)

KEY INDUSTRIES – INFORMATION TECHNOLOGY …
(2/2)
Google
Microsoft
Amazon
 In 2015, the company announced that it will establish its largest fulfilment centre in Telangana. Amazon
aims to intensify its employee base by more than three fold from the existing 4,000 to 13,500 in phases.
 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.
 In July 2014, Microsoft declared its strategies to develop processes in Hyderabad. The state
government has guaranteed land and other facilities essential for the development of project.
 Microsoft’s CEO Satya Nadella visited Hyderabad in September 2014, and there are probabilities of
discussions with the state government concerning growth of the IT industry in Hyderabad.
Facebook
 Facebook is a US-based online public networking provision company with set-ups in India.
 The agency in Hyderabad was the 1st organisation for the company in Asia. Facebook India has
designed a programme to strengthen Digital India and Skills India initiatives of the Government of India.
The program named Small Business Boost was inaugurated by Telangana’s IT Minister K T Rama Rao
in Hyderabad in August 2015. Facebook’s Small Business Boost initiative will serve as an incredible
resource for the growth of these businesses by offer training on best practices for growing a small
business online. The programme will also aim at encouraging and training the business owners to
access international markets by branding on Facebook platform.

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 has grown by additional
20.6% in 2014-15, indicating the potential in Telangana.
 As per the socio-economic survey 2015-16, at a projected cost of
US$ 2.0 billion, the Hyderabad Pharma City is being established,
which will consist of R&D Lab, university, etc. The park is being
developed over 14,000 acres of land at Mucherla and is expected to
create employment opportunities for 70,000 people.
 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 Released
7.94 1.31
Funds for support for drugs & supplies under Mission Flexible
Pool – 2014-15 (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 2015-16, the company generated revenues of US$ 592.30 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. From April to June 2017,
the company recorded revenues of US$ 515.31 million
 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 2015-16, the company generated revenues of US$ 2,156.86 million.
Granules India Ltd  Granules India is an Indian pharmaceutical company with manufacturing facilities dispersed across
India and China.
 The company assists clienteles across 60 countries with four facilities in India, which include
Hyderabad, and a facility in Jingmen, China. In 2013, it acquired Auctus Pharma for expansion of
business.
 In 2015-16, the company generated revenues of US$ 218.63 million.

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.
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
51.2
51.8
49.7
91.7
54.2
72.5
94.6
71.6
0 20 40 60 80 100
2009
2010
2011
2012
2013
2014
2015
2016
Number of tourist arrivals (millions)
Note: 1- Includes Foreign Tourists Arrivals till November 2015

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
71.5
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
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Number of foreign tourist arrivals in Telangana (million)
Note: 1- Data till November 2015

 Initiatives undertaken by the Government of Telangana:
• Creation of “Telangana Samskruthika Sarathi”, a distinct state level body to create awareness regarding the cultural heritage of Telangana &
provide information about various schemes launched by the Government of Telangana & development of different policies.
• Proposal to build a new mega Cinema City to promote the tourism film industry in Telangana. The proposed project is expected to span over
2,000 acres in the Nalgonda-Ranga Reddy border in Rachakonda.
• Proposal to develop “Kaloji Kala Kendram” at Warangal and “Telangana Kala Bharati” at Hyderabad, to promote cultural activities in the state.
• Allocation of US$ 16.59 million for the development of Yadagirigutta Devasthanam. Further, development of Narasimha Abhyaranyam has
been planned in 400 acres of land. Meditation centres, Veda pathshalas, marriage halls, parks and cottages would be constructed in additional
1,600 acres of land.
• With the skills & efforts of the local people & Masters Athletics Association of Telangana, the 38th National Masters Meet was conducted
successfully at the Gachibowli Stadium, which witnessed participation of 3,700 athletes. With this succession, the Masters Athletics Federation
of India (MAFI), can plan on the next level by selecting the team for India to participate in the Asian championship, which will be held in China
in September 2017.

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.
District Major Minerals
Adilabad Limestone, Coal, Iron ore, Manganese
Karimnagar Lime stone, Coal, Iron ore, laterite & granite
Khammam
Limestone, Coal, Iron ore, quartz & granite,
Steatite,
Dolomite, Barites, Corrundum
Mahbubnagar Amethyst, Feldspar, laterite, Quart
Medak Amethyst, laterite, Granite
Nalgonda Limestone & Limestone Slabs
Nizambad Quartz, laterite, Granite
Ranga Reddy Amethyst, laterite, Granite, Limestone
Warangal Amethyst, Granite, Coal
Source: Indian Mineral Scenario – States, Ministry of Mines, ASSOCHAM India

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)
Barytes 26,077
Coal 33,116,541
Dolomite 403,743
Feldspar 361,887
Garnet 9
Latarite 1,780,239
Lime Stone 13,166,012
Manganese ore 1,400
Quartz 310,960
Shale 51,700
Stowing Sand 1,333,991
White clay 62,240
Production of major minerals, 2015-16(1)
Source: Ministry of Commerce and Industry, Government of India
Minerals Unit
Production
(tonnes)
B.Granite Cubic meter 136,992
C. Granite Cubic meter 377,365
Gravel / Earth Cubic meter 17,021,456
Fuller's earth Tonnes 277,025
L. stone slabs Meter Square 1,360,770
Mosaic chips Tonnes 14,890
Road metal Cubic meter 20,786,426
Ordinary sand Cubic meter 1,618,019
Production of minor minerals, 2015-16(1)
Note: 2015-16(1) : till October 2015

KEY INDUSTRIES – APPARELS AND TEXTILES…(1/2)
Handloom Co-operative Societies Number
Cotton 259
Silk Weaver Cooperative Societies (WCSs) 33
Wool ICSs 44
Power loom WCSs 157
Tailor CSSs/ Garments CSs 134
Details of Handloom and Textile Industry (2016-17)
Source: Telangana Economic Survey 2015-16, Telangana government portal, Telangana socio-economic outlook 2017
 Cotton is grown in almost all districts of the state except Hyderabad
& Nizamabad. The state had 10 lakh spindles as of 2014-15. 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
authorization 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 2016-17, the work on textile hub in Warangal has
initiated & is under process. 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 2015-16, the state
produced 27 metric tonnes of raw silk, as of August, 2015. 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 is increased to US$ 4.5 million in
FY18 from US$ 4.2 million in FY17.

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 … (1/2)
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
 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
Objectives
 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
 To build capacity and protect critical information infrastructure.
 To establish requisite institutions and legal framework to counter cybercrime.
Cyber Security Policy
2016
Read more
Read more
Read more
Read more

STATE ACTS & POLICIES … (2/2)
Upcoming Policy
 Telangana Textile and Apparel Policy (T-TAP)
 IOT (Internet of Things) Policy
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`
Objectives
 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

ANNEXURE
Source: Reserve Bank of India
Exchange rates (Fiscal Year)
Year INR equivalent of one US$
2004-05 44.81
2005-06 44.14
2006-07 45.14
2007-08 40.27
2008-09 46.14
2009-10 47.42
2010-11 45.62
2011-12 46.88
2012-13 54.31
2013-14 60.28
2014-15 60.28
2015-16 65.46
2016-17 67.09
Q1 2017 64.46

DISCLAIMER
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
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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
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Telangana State Report July 2017

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Telangana State Report July 2017