Amravathi city

INVESTMENT OPPORTUNITIES
FOR UK INVESTORS IN
AMARAVATI - THE 21st
CENTURY CAPITAL
A21C

4 | AdvantageIndia
WHY INVEST IN INDIA ?
A STRONG ECONOMY AND ENABLING BUSINESS
ENVIRONMENT
TOTAL FDI FLOW [in £ bn]
India is ranked as the most attractive investment destination, ahead of Brazil & China1
India’s GDP at PPP is the 4th
largest in the world, growing at a CAGR of over 8%2
India ranks 2nd
most promising country for overseas business operations in the
medium term3
India’s rank jumped 12 positions in the ‘Ease of Doing Business’ list by the World Bank
India moved 16 places in the Global Competitiveness Index4
5th
largest consumer market by 2025 according to the World Bank
Source: 1 Ernst & Young Attractiveness Survey 2014
2 IMF
3 JBIC survey report on Overseas Business Operations by Japanese Manufacturing Companies, 2013
4 Global Competitiveness Report 2015 -16
Source: DIPP – Factsheet on FDI (April’00 to Mar’15)
2004-05
4
29
CAGR - 22%
2014-15(P)
ONGOING ECONOMIC LIBERALIZATION
ACCESS TO TECHNOLOGY
AS A RESULT OF IT REVOLUTION
COMPETITIVELY PRICED SKILLED LABOUR
STABLE FINANCIAL SYSTEM
HIGH-YIELDING CAPITAL MARKETS
IMPETUS ON INFRASTRUCTURE
DEVELOPMENT

5 | AdvantageIndia
ONE OF THE MOST ATTRACTIVE COUNTRIES FOR FDI
KEY SECTORS ATTRACTING INVESTMENTS IN INDIA
[APRIL 2000 - MARCH 2015]
• India ranked 3rd
among the top-priority FDI host economies for 2013 - 151
• Month on Month FDI equity inflows have increased 40% between
April and December 2015 compared to the same period in 20142
• Increase in foreign investments shows the renewed confidence in the
economy and the new government
• Share of telecommunications, trading, automobile and computer software
and hardware has shown an increasing trend in India’s FDI
Source: Sterling Assets India – UK Investment creating Indian Jobs
Cummulative (in £ bn) FY 2012-13 FY 2013-14 FY 2014-15
Source: 1 UNCTAD’s World Investment Report, 2013
2 DIPP
0%
25% 28
16
11 10 9 8
7
6
6
6
6 5
20%
15%
10%
Services
Construction
Development
Telecommunications
Computer
Software/Hardware
Drugs&
Pharmaceuticals
Metallaurgical
Trading
Automotive
Chemicals
Power
5%
LARGE FDI INFLOWS
ENABLING BUSINESS ENVIRONMENT
GROWING & STABLE ECONOMY
HIGH SAVINGS & INVESTMENTS
ABUNDANT NATURAL RESOURCE
WORLD’S LARGEST DEMOCRACY

THE UK and India –
A winning
Relationship

8 | AwinningRelationship
Source: 1 Sterling Assets India – UK Investment creating Indian Jobs
2 Sterling Assets India – UK Investment creating Indian Jobs
THE UK and India – A winning Relationship
A Strong economic partnership
• The economic partnership between India and the UK is powerful -
India already invests more in the UK than in the rest of the EU combined,
and the UK is the largest G20 investor in India
• About 31% of the jobs generated from British investments are
in the services sector
FDI in India by G20 nations,
April 2000-March 2015 (in £ bn)
0
50
60
40
14.43
11.9
8.91
4.94
2.93
48.04
35
20
United
Kingdom
Japan USA Germany France G20
Total
10
Employment generated by foreign affiliates
UK137,400
130,400
112,300
61,800
37,900
JAPAN
US
GERMANY
FRANCE

Source: 1 Sterling Assets India – UK Investment creating Indian Jobs
• British investment in India is led by Chemical sector, which contributes
26%, followed by the Drugs & Pharmaceuticals and Food Processing
industries, which attract 17% and 14% of total British Investment respectively
• Services are also a key source of investment in India
Key sectors attracting UK investments
(April ‘00-Mar’15)
British Companies Operating in India
Chemical Drugs &
Pharma
Food
Processing
Services Petroleum &
natural gas
Others
India and THE UK share a long history of
economic engagement
Others
19%
Chemical
26%
Petroleum &
natural gas
11%
Services
14%
Drugs &
Pharmaceuticals
17%
Food Processing
13%
9 | AwinningRelationship

The Sunrise State –
Why INVEST IN
Andhra Pradesh

• 13 districts with 160,309 sq. km - the 8th largest state in the country
• The10th most populous state, with a population of 49.39 million (as per
2011 census)
• Deep draft ports along the 2nd largest coastline of 974 km – provides
opportunity to be part of Global Production Network
• 3rd place in the Economic Freedom (CATO) Index for States in India
• 3rd most visited state for tourists in India
• 4th best for its legal structure and security of property rights
• The state is agriculturally prosperous
• Rich natural resources and human capital
12 | TheSunriseState
Andhra Pradesh – The sunrise State
A Snapshot
GSDP (2014-15) –
£ 54 bn
ANDHRA PRADESH
The Sunrise State is one of the fastest growing states in India and a credible
investment destination
To be the most preferred logistics hub and India’s gateway to East
and Southeast Asia by 2029

Power
• 1st state in south India to offer 24x7 power to industry
• Generating capacity > 9,600 MW
• Total capacity growth of 35,000 MW in the short term, of which
18,000 MW in renewable energy
• Focus on green energy projects
Connectivity
• Ports – 6 under operation (handling 142 million tonnes per annum
cargo), 6 under development and 4 planned
• Airports - 6 existing, 1 mega Aerotropolis and 5 no-frills airports
to be developed
• Road Network – 45,000 km, including 4,423 km. of National Highways
• Railway - 7,040 track km of network
• Inland Water Transport – 888 km National Waterway - 4
Land
• Existing land bank of 300,000 acres, adding further 700,000 acres,
total planned land bank of 1 million acres
• GIS - enabled online land bank information
• Affordable land rates
• Land given on 99-year lease
Large area industrial developments
• Petrochemicals and Petroleum Investment Region, Chennai-Bengaluru
Industrial Corridor and Vizag Chennai Industrial Corridor are being
planned
• Two National Investment Manufacturing Zones are planned
Physical infrastructure –
THE Backbone of development in the state

Key achievements of the government
A Proactive and stable government
• 1st
link in the national water grid to be completed in a record
time of 5.5 months, connecting the Godavari and Krishna rivers
• 1st
in India to hold a paper free e-cabinet
• 1st
state in India to announce Retail Policy
• 1st
State in the country to formulate a Start Up Policy and
inaugurate the “Sunrise Start-Up Village”
• One of the most innovative plans for urban development India
has attempted – Procured 33,000 acres of prime land for the
capital city project using land pooling
• Within 100 days of government (2nd October 2014), Andhra
Pradesh achieved the “zero power cuts” milestone – The power
deficit in the state has been brought down from 22 million units
per day to zero
• E-Pragati - Andhra Pradesh is the 1st
state in India to conceive
and execute a state-wide enterprise architecture
• Andhra Pradesh received the most competitive bid for a solar
park of 500 MW – bundled with thermal power at a record
low sale price of Rs. 3.5 a unit
15.00%
10.50%
8.39%
7.16%
4.05%
2016-17
(Target)
2015-16
(Apr-Dec’15)
2012-13*
2013-14*
2014-15
GSDP growth rates of AP (at constant prices)
*combined state of AP
AP aims for sustainable double digit growth

Andhra Pradesh is one of the foremost states in creating a conducive business
environment - it’s considered as an aspirational leader in the country
Ease of Doing Business
• Single desk portal (identified as ‘best practice’)
• All approvals to set up a new business can be obtained in 21 days
• Online tracking of Investments
• Investment facilitation officers
• Country desks for strategic partners
• Fully online system for legal registrations and renewals

• Web-based advance query system to identify industrial land,
connectivity and infrastructure
2nd rank amongst Indian states, marginally behind the best state
(DIPP-World Bank rankings, September 2015)
Area of assessment
Ease of setting up
a business
32%
79%
35%
62%
32%
85%
34%
75%
32%
60%
49%
91%
19%
62%
Land allotment and obtaining
construction permit
Environmental procedure
compliance
Labour regulation
compliance
Obtaining infrastructure
related utilities
Registering and complying
with tax procedures
Carrying out inspections
National average Andhra Pradesh
Source:http://indiainbusiness.nic.in/newdesign/upload/State
AssessmentReport_14September2015.pdf

Government of India
• Section 94(1) of the Andhra Pradesh Reorganisation Act, 2014 lays down
a clear mandate for the central government to provide appropriate fiscal
measures to Andhra Pradesh
• 15% additional depreciation and investment allowance has already been
announced for industries in AP
Sectoral state policies with incentive framework
Key incentives under sectoral policies
Auto Auto
Components
Food
Processing
Retail Policy
Solar Power
Interest subsidy
Patent Cost/ Quality certification cost
Incentives for skill development
Power cost subsidy
Capital subsidy
Marketing incentives
Reimbursement of CST/VAT/
SGST/Stamp duty
Textile
Apparel
Tourism
Agricultural
Marketing Policy
Wind Power
Biotechnology
Pharmaceutical
IT
Electronics
MSME
Civil
Aviation
Aerospace
Defence
Manufacturing
Industrial
Parks
Innovation
start-ups
Port
AN Enabling regulatory framework
and policy environment

Direct Tax incentives – THE best in India
Particulars
Section 32(1)(i) 15%
35%
15%
15%
80%
30% of additional wages paid to the new regular
workmen exceeding 50, available for 3 years
15%
35%
-
15%
65%
15%
20%
-
-
35%
Additional Depreciation u/s
32(1)(iia)
Additional Investment
Allowance -Section 32AD
Total allowance
Employment linked
deduction u/s -
Section 80JJA
Investment Allowance - Section
32AC (investment exceeding INR
25 crs)
Till 31 March
2017
1 April 2017 to
31 March 2020
Specified units at AP
Post 31 March
2020
*Additional depreciation and additional investment allowance under section 32AD available to notified backward
regions of AP for investment in the specified period. CBDT Notification awaited on notified areas. As per media
reports, Rayalaseema and North Costal Regions are expected to be notified.

Amaravati –
An Opportunity
for UK investors

Amaravati, the People’s Capital of Andhra Pradesh, has a vision to be the
pioneer ‘Smart City’ and economic powerhouse of India, with world-class
infrastructure, and a high livability quotient, as well as environmental
sustainability, and a rich heritage.
Srikakulam
Vizianagaram
Visakhapatnam
East
GodavariWest
Godavari
Krishna
Guntur
Prakasam
Nellore
Kadapa
Kurnool
Anantapuram
Chittoor
Andhra Pradesh (AP)
• Notified as the capital city of Andhra Pradesh on December 30, 2014
• Greenfield area of the capital city is located in Guntur District on the banks
of River Krishna
Source: Draft detailed Master Plan of Capital City Amaravati
20 | People’scapitalofAndhra
Amaravati – THE People’s capital
of Andhra Pradesh
The largest green field city
development in modern times
CAPITAL REGION
CAPITAL
CITY
Krishna
Guntur

Source: Draft detailed Master Plan of Capital City Amaravati, GoAP reports
Bhavanapadu
Kalingapatnam
Bhogapuram
Visakhapatnam (Major Port)
Gangavaram
Kakinada SEZ Port
Kakinada Deep Water Port
Kakinada Anchorage Port
Rawa
Narsapur
Machilipatnam
Vadarevu
Ramayapatnam
Dugarajapatnam
Visakhapatnam airport
Rajahmundry
Nagarjuna
Sagar
Donakoda
Orvakallu
Puttaparthi
Bangalore
Chennai
Hyderabad
Dagadarthi
Kadapa
Tirupati
Kuppam
Vijayawada
380km
s
• The Capital Region lies centrally along the entire eastern coast, and thus has the potential
to be the eastern gateway of peninsular India
• India’s key economic centres lie within 300-400 kms
• Two of country’s biggest ports, Visakhapatnam and Chennai, are located at the northern
and Southern end of the capital region
• Machilipatnam port is located close to the capital region, and has the potential to develop
as an inland trade centre
• The capital region is well connected through the road and rail network
Capital region
Operational port
(non-captive)
Port under development
port
Captive -
operational port
Captive - Port under
development
Proposed Port
Existing airport
Proposed
international airport
Proposed no-frill
airport (greenfield)
Brownfield airport
EXCELLENT CONNECTIVITY MAXIMISES THE
LOCATIONS ADVANTAGES

The state Government has goals and strategies which will guide Amaravati’s
development and offer many different opportunities for collaboration and
investment for British investors
World-class infrastructure
• 115 kms of public transport corridors by 2050
• 650 km of road network by 2050
Jobs Homes for all
• 2.5 million resident population by 2050
• 1.5 million jobs by 2050
Green and clean
• 20% of the capital reserved for Green and Blue
• 25+ km Public River Waterfront
Quality Living
• Parks and public facilities within 5-10 minutes
walking distance
Efficient Resource Management
• Flood resistant city towards Net Zero
Discharge
Identity and Heritage
• 220 km of Heritage and Tourism Network
using Roads, Metro and Waterways
Goals and strategies to promote THE
development of peoples’ capital

Overall capital region covers
an area of about 8,603 sq. km.
Around 80% of the land within the capital city boundary is developable and offers extensive
investment opportunities
Capital Region
THE SCALE OF THE Development - A SnAPshot of
Capital Region, Capital City and Seed Area
1
The capital city covers an area
of 217 sq. km.
The administrative and commercial hub
of the city spreads over 16.94 sq. km.
Capital City Seed Area2 3
Amaravati

Theme based development - A city of NINE cities
Total land – 21,702 ha
Media City
1,980 ha (9%)
Government City
1,430 ha (7%)
Knowledge City
3,533 ha (16%)
Sports City
1,640 ha (8%)
Finance City
1,635 ha (7%)
Electronics City
2,677 ha (12%)
Justice City
1,477 ha (7%)
Health City
2,585 ha (12%)
Tourism City
4,745 ha (22%)
• The concept plan proposes, nine themed development cities within the capital city
• These cities will act as important socio-economic anchors for the capital city
• Amaravati’s - core focus sectors:
- IT/IT - enabled services
- Financial services
- Research Development
- Food and Beverages
- Electronics/hardware

SEED development – the FIRST phase
of development
Structure plan for seed development area
Government
Node
Civic Park
Node
Convention
Centre Iconic Tower
Square
Performing centre
Botanic Garden Node
Art Culture
Centre
Gateway
Commercial
Node
Commercial
aNode
Down Town
Node
Commercial
Node
LEGEND
Translating the concept plan into SEED Development Structure Plan:
• Maximizing the potential of Transit Corridors: SEED development is connected to the rest
of the city via two mass rapid transit (MRT) corridors
• Transit Oriented Development Nodes: The MRT stations within SEED form the commercial
transit oriented developments (TOD). The primary nodes are:
• Amaravati Downtown – The commercial heart of the city
• Amaravati Gateway – Gateway to the city and the SEED development
• Amaravati Government Core – This will house the three civic arms of the state
• Creating identity and sense of place through landmarks
• Seamless connectivity and integration
• Activating the waterfront
primary / development
corridor
primary green corridor
secondary development
corridor
primary nodes
secondary nodes
tertiary nodes
activities waterfront
The Seed Masterplan is proposed to create 600,000 jobs and accommodate 300,000 residents

THE UK AND
Andhra Pradesh -
OppORTUNITIES for
Collaboration

28 | OpportunitiesforCollaboration
THE UK and Andhra Pradesh
Opportunities for collaboration
THE Government of Andhra Pradesh –
focus areas for growth
The government of Andhra Pradesh has five focus areas to drive the state’s growth,
which offer many different oppertunities for collaboration and investment for
UK investors
Infrastructure development
Manufacturing
1
2

Skill development
Services
Project Development and financing
3
4
5
29 | OpportunitiesforCollaboration

32 | InfrastructureDevelopment
Infrastructure Development
INFRASTRUCTURE DEMAND IN THE CAPITAL CITY WILL BE
DRIVEN BY THE Migration of Government and
associated staff in THE short term and economic
development in THE long term
15,000 of the government’s one
million employees are expected
to move to the new capital city by
2016.
Master plan Scenario – based on the urban planning design of the city
Realistic Scenario – Based on the current social-economic developments in the region and
proactive leadership
% of incremental jobs by 2050
Master plan
0.0
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5 Realistic scenario
• Amaravati’s population is expected to grow fast in the short term due to
a) the movement of government employees from Hyderabad to the Capital city
b) employment generation from economic activity around the capital region
• Over 0.4 million jobs in the short term (2020) and 2.7 million in the long term
(2050) are expected to be generated in the Amaravati city
Government
4.1%
Corporate
10.2%
IT/ITes
16.4%
Financial
14.3%
Education
2.6%
Industrial
8.7%
Indirect
43.7%

THERE is High demand for basic infrastructure
development in Amaravati in the short term (2020)
Large-scale support infrastructure needs to be developed as an immediate priority,
due to
a) an exponential increase in the population, and
b) employment generation driven by economic activity
Hospitality
Housing
• There is currently no 5-star hotel in the capital region and only
three 4-star hotels all in Vijayawada
• The capital city has a vision to be an economic and tourism
hub and the state has seen an increase in foreign delegates,
investors and tourists which is driving the need for world-class
hospitality facilities
• Over 15,000 employees (out of 10 lakh total) are expected
to move to Amaravati in the next six months, creating an
immediate demand for 15 million sq. ft of residential space
Healthcare
• The capacity of the existing facilities in the capital region
is below the global benchmarks - only 0.4 hospital beds
are available for every 1,000 persons against a global
benchmark of 7.
• With the migration of government employees to the capital
city and the expected increase in population, healthcare
infrastructure (primary, secondary and tertiary) development
is an immediate priority to cater to the infrastructure gap
Education
• The current university student-teacher ratio is 15 as compared
to 10 (Universities Grants Commission of India)
• A population of 15,000 will require at least five new schools,
five higher education institutions and one new university in
the immediate term

INFRASTRUCTURE development and funding
opportunities for over £ 21 bn in Amaravati
by 2050
Sector wise project opportunities by sector - 2050(£ m)
There are 2,579 projects with investment over £20 billion available in Amaravati
by 2050.
Urban transport
5,187
5,163
2,462
2,364
1,707
932
406
388
379
365
291
230
182
175
157
145
125
110
95
84
68
25
Education
Commercial
Health and medical
Sports and recreation
Tier-II infra for returnable land
Riverfront development
Civic and community Institutions
Community centers
Tier-II infra for government complex
Sewerage treatment
Flood management
Parks
Water supply
Village Infrastructure
Storm water drainage
Power
Government housing
Smart infrastructure and IT
Affordable housing
Disaster management
Solid waste management

Other infrastructure development opportunities in Andhra Pradesh are available
in sectors such as ports, airports and industrial development.
Sector
Urban transport 3,099 8
378 22
68 14
217 3
7 1
125 3
3 1
84 1
19 8
201 8
145 5
2,146 89
6,492 163
Education
Healthcare
Sewerage
Solid Waste
Power Transmission/
distribution
Disaster management
Affordable housing
Smart infrastructure and IT
Flood management
Water supply
Other
Total
Investment
(£ m)
No. of
Projects
INFRASTRUCTURE development and funding
opportunities for over £ 6 bn in Amaravati by 2020
Investment opportunities over £6 billion in 163 projects are of immediate priority.

Projects in Amaravati
OTHER infrastructure DEVELOPMENT opportunities
in the short term (2020)
For detailed project profiles, please refer Annex-1
Project name Project capacity
Project cost
(£m)
Outer Ring Road 210 km eight lane carriageway with service lanes 2,000
Metro line 1 26 km connecting Amaravati to Vijayawada 507
Development of Krishna riverfront River training, bund widening, water transport 313
Duct utility tunnels 306 km tunnels along arterial roads 245
Flood management works Detention ponds, drains, raising city level 230
Waste water collection and treatment 208 MLD plant, 660 km sewerage network 216
Water supply system 260 MLD plant, 660 km network and two reservoirs 145
Power transmission distribution 1,000 MW transmission mains, distribution 125
Housing for government employees 4.6 million sq.ft in the government city 110
Affordable housing 7,000,000 sq.ft 84
1
2
3
4
5
6
7
8
9
10

OTHER infrastructure DEVELOPMENT opportunities
in the short term (2020)
For detailed project profiles, please refer Annex-1
Project name Project capacity
Other Projects in Andhra Pradesh
Project cost
(£million)
Development of industrial zone 140 hectares industrial zone 70
City expressways Two expressways of 24 km total, 6 lane carriageway 60
Development of University zone 100 hectares of Knowledge city for development 50
Convention centre (MICE) To global standards 26
Solid waste management 250 tons/day integrated solid waste plant 25
Healthcare facilities As per Indian public health standards 23
Vizag Chennai Industrial Corridor Ports, airports, highways, urban infrastructure etc. 4,243
Bhogapuram airport 5,300 acres aerotropolis around Bhogapuram 240
National Waterways - 4 888 km, 8 terminals 133
11
12
13
14
15
16
17
18
19

CAPITAL REGION DEVELOPMENT AUTHORITY (CRDA)
Infrastructure development Plan - mainly through
private sector collaboration
Public Private Partnership
• Construction and OM of certain infrastructure projects will
be passed on to private partners
• Government to retain responsibility for areas such as
regulation and supervision
• Key projects would include development of expressways,
power, solid waste, sewerage, water supply, affordable
housing, healthcare, tourism, and education
Private investors/ “Queen Bees”
• The Government is to demarcate land parcels for
development by private players, to generate jobs and
increase investments
• The focus will be on cash-flow generating assets, to
compensate for the private investment
Public expenditure
• Key government buildings and some of the critical
infrastructure required to meet social responsibilities
will be developed by Engineering, Procurement and
Construction (EPC) contractor
• Key projects would include development of government
offices, utility corridors, flood management, and trunk
infrastructure

Project Development Options
In Andhra Pradesh, project development options are available across various sectors
offering different levels of return on investments. UK developers could participate in
Public-Private Partnerships and private sector development
Sectors
Healthcare
Education sector
Power sector
Urban utilities
Urban transport
Government buildings
Affordable housing
Extremely
high amenability
High
amenability
Medium
amenability
Low
amenability
No
amenability
Government
funded (traditional
EPC route)
Funding through government
budgetary resources
Public Private
Partnerships
Private project
development
Funding by private investor.
Sharing of risks between
government and private
investors
Private sector funding and
risk retained by private
investor. Land to be sold by
government

Focus Industries
Economic Development – OPPoRTUNITIES
for collaboration in manufacturing
Nandigam
pharmaceutical hub
Vijayawada and
capital city
business and trading
hub
Agro processing,
Electronics, Auto , IT/IT
- enabled services
Gannavaram
Value added economic hub
FTZ / SEZ Zone- Auto and IT/
IT - enabled services
Gudivada
aquaculture hub
Tenali
manufacturing hub
- Agro processing
Guntur
agricultural hub
Source: GoAP reports
• AP is agriculturally prosperous, and known as the “Rice Bowl of India”
• The state is India’s Largest producer of marine products with 40% share
in the country’s exports
• AP is among India’s top manufacturing hubs for bulk drugs and formulations
• Though the Amaravati Capital City is greenfield, a number of economic
centres abut the city
• Amaravati’s focus industries include Food and Beverages,
Pharmaceuticals and Electronics

Food and Beverages
Sector assessment
Overview and key strengths of the UK
Andhra Pradesh
UK
Growth drivers in the capital region
Key opportunities for UK investors
• Key Indian state for agricultural and forest produce
• Largest producer of rice in the country
• Ranks 1st in the production of oil, palm, tomatoes, chillies, turmeric and mangoes
• Ranks 1st in India in egg production, and has a strong position in milk and meat production
• Ranks 1st in brackish water shrimp and fresh water prawn production and 4th in marine
fish production
• UK is the world leader in value-added food and drink production and marketing
• The food and drink industry is one of the largest of the manufacturing sectors and accounts for 17%
of overall manufacturing
• Over 30% of the UK’s food and drink manufacturing companies sell their products overseas
• Rich agricultural production and distinct raw material base
• Growing domestic and export demand
• The AP government has identified food and beverage as a focus sector and announced
food parks in all districts
• Setting up of food processing units across products
• Technology upgrading and skill development
• Setting up of RD facilities in food technology

Pharmaceuticals
Sector assessment
Andhra Pradesh
UK
• Among the top manufacturing hubs for bulk drugs and formulations
• The “Pharmacity SEZ”, is the first of its kind in the country, developed for the
manufacture of pharmaceutical and bulk drugs with ‘Plug and Play’ facilities
• The UK is one of the world’s top global producers of pharmaceuticals which
contributes £15.2bn to the UK economy every year
• The health and life sciences markets are predicted to grow 4-10% p.a. over the
next 8-10 years
• Pharmaceuticals is the UK’s most research-intensive industry, with
expenditure of £4.1bn in 2013
• Development of Petrochemicals and Petroleum Investment Region (PCPIR)
– proximity of raw material
• Excellent road and rail connectivity, which is key for distribution logistics
• 24X7 quality power available
• Establishment of Pharma manufacturing plants
• Research Development in Pharma sector

Electronics
Sector assessment
Andhra Pradesh
UK
• The Andhra Pradesh Electronics Policy 2014-20 envisages, working with the private sector
to set up a new mega electronics hub, an electronics hardware park and associated facilities
• Manufacturing plants of large players like Foxcon and Xiaomi are underway in the state
• The UK is the largest European market for high-end consumer electronics products with about
18,000 UK based companies
• 40% share of Europe’s electronics design industry
• 14 of the world’s top 20 semiconductor companies have established design and/or
manufacturing sites in the UK
• Rising income levels together with increasing propensity to spend
• Governments focus on digitization
• Identified as focus sector at national and state level
• Investment in the semiconductor segment – Integrated circuits, electronic components etc
• Investment in consumer electronics segment – across the value chain

Financial Services
Sector assessment
Andhra Pradesh
UK
Growth drivers in capital region
• According to the Confederation of Indian Industry, India is poised to become
the 5th largest banking economy in the world
• Amaravati has a vision to be a financial services hub
• A Finance City is planned on 566 hectares of land in the CBD, housing the
banking industry, trading and financial centres
• Over 1,000 international firms own businesses in UK financial services
• Financial experience, concentration of expertise and common language with
India.
• Robust financial regulatory structure
• AP leads India in financial inclusion and digital finance – over 90% of the
population is covered by Aadhar and 73% by Aadhar-linked bank accounts
• Extensive capital-intensive development is planned in AP.
This will drive growth in the banking sector
• Abundant skilled labour available in the region
• Setting up financial services units
• Setting up development centers for financial technology
• Assistance in setting up an International Financial Services Center (IFSC)
• Setting up financial education institutions, organizing courses

Healthcare Services
Sector assessment
Andhra Pradesh
UK
• According to FICCI, India’s healthcare sector is expected to be £182 bn by 2020
• Healthcare is one of the focus sectors of Amaravati city
• The Health City is planned on a 1,349 hectare site housing healthcare service
centres, RD facilities etc.
• Efficient centrally funded ‘National Health Service’ program
• Expertise to provide and develop healthcare solutions and systems
• Expertise in digital healthcare technology
• The state to set up a 200 acres manufacturing park for medical devices
• All the government hospitals in the state will get £4.5 million of investment
• High demand for healthcare services especially in digital healthcare - the number
of hospital beds and doctors per 1,000 people is much less than global benchmarks
• Local partnerships, licensing and franchising to provide clinical services, and digital healthcare
• Setting up centres of excellence to develop healthcare systems
• Exchange program for authorities, academicians, students and employees

OPPORTUNITIES for collaboration in
skill development
Scope for skill development
Expertise in skill development
Andhra Pradesh
UK
Initiatives by the state
Opportunities in Amaravati
• Over 0.4 million employment to be generated by 2020 in specialized sectors such as IT,
finance, healthcare, food processing, electronics
• High volume of construction activities to be undertaken
• Large scale skill development required to meet the projected demand
• The UK’s Department of Business Innovation and Skills invests in skills to promote trade
• The British Council conducts vocational and non-vocational training programmes for students
• Andhra Pradesh Skill Development Corporation has been set up
• Sector specific skill councils to follow
• Skill development memorandum of understanding signed with industry leaders
like ATDC, Isuzu motors and IKEA
• 17 skill development centres operational
• Joint training programmes for employment-linked skill development, and upskilling for teachers
and educators, in line with HSBC’s ‘Skill for Life’ across sectors like Food Beverages,
Pharmaceuticals, Electronics etc.
• Collaborate with Industrial Training Institutes (ITI) and setting up centers of excellence in key sectors

• Supporting the state to develop models of skills training
• Setting up exchange programmes with academicians, students and employees

Project
Development
Financing
5

OPPORTUNITIES for collaboration in Financing
and Project development in THE capital city
The City of London could play an important role in channeling investment into infrastructure projects
in Amaravati and Andhra Pradesh, laying the foundation for a long-term strategic partnership that
leverages the capital and expertise of the City of London to finance Andhra Pradesh’s continued
rapid growth. There could be several investment routes for UK investors in India.
Investment Options
Sovereign loan
(DFID)
Bond financing
External
commercial
borrowing
Takeout financing
Private sector
finance
Equity - FDI
• Limited quantum and long-term borrowing
• Suitable for infrastructure project with long gestation period
• Intermediate financing tool with limitations on available amount
• Takeout financing with the Indian financing institution could
be explored
• Financial support to private companies (incl. JVs of private company
with Govt.) in form of loan (long tenor and low interest rate) as well
as equity
• Participation in equity holding of a company
• Regulated by FDI regulations such as sectoral caps, approval
requirements etc.
• Taxable and non taxable bonds for large project financing
• Long maturity and back-ended payments
• Deep - discount bonds further minimise the amount of interest
repayment in the early years
• Under the ‘automatic route’, £ 488 mn can be raised and will be
classified as debt
• Regulated by ECB regulations covering issues such as eligible
borrowers / lenders, all-in-cost ceilings, end-use restrictions, etc.

No. Particular Remarks
1 Project need Many major world cities have segregated traffic flows with ring road
and bypass road projects. The city of Amaravati is surrounded by
business centres (Vijayawada, Guntur, Tenali, Nuzvid etc.) which have
further connections to the important industrial zones and business
areas in Bangalore, Chennai and Hyderabad. The region is also
endowed with natural resources (forests, hills, water bodies etc.),
religious places and heritage sites which attract a large influx of
tourists every year. As the city grows, large-scale freight movement
and tourist inflows might disrupt the free flow of traffic, and hence
the need for an outer ring road.
2 Project component 8 lane (4+4) divided carriageway with service lanes on either side.
3 Anticipated project Phases Length (in kms) Completion date
completion timeline Phase 1 51.6 2017
Phase 2 66.7 2020
Phase 3 41.6 2023
Phase 4 50.2 2026
4 Approximate project cost £ 2bn (₹ 200 billion)
5 Development and • FDI Investment: 100% FDI is allowed in roads and highways
investment opportunity through the ‘Automatic’ route. The prior approval of the
Government of India is not required.
• Such projects are usually implemented through the
Engineering, Procurement and Construction (EPC) route.
Such projects have also been carried out under the
Public-Private Partnership (PPP) framework, where the
private partner usually develops and operates the project
on a Build - Operate and Transfer (BOT) basis.. Typically the
return on equity for such projects is between 18% and
20%. The market risk is passed on to the government and
the private partner recovers the investment in terms of fixed
annuity payments from the government for the
predetermined concession period.
• The Government of India has accorded
‘Infrastructure’ status to road and highway projects. This
opens up access to various incentives such as a higher limit
on external commercial borrowing, lower lending rates, tax
holidays, lower import duties, and financial assistance from
specialised institutions..
• The Ministry of Road, Transport and Highways of the
Government of India is planning to part-fund the project.
6 Employment generation 24,923 jobs
7 Implementing agency CRDA (Capital Region Development Authority), Vijayawada
56 | Annex1
1 Development of 210 kilometres of Outer Ring Road

57 | Annex1
2
1 Project need Andhra Pradesh is urbanising at an unprecedented rate. Traditional
transport improvements like wider roads and flyovers will not be
sufficient to provide a lasting solution to the higher volumes of traffic
the region is already generating. As a ‘smart city’, Amaravati plans
to take a radically different approach to urban mobility, and one
element of this is the planned Mass Rapid Metro Rail system. The
growth of Amaravati will also rely on accessing the skills of the
population in the neighbouring city of Vijayawada, which makes it
vital to construct transport links between the two. A connecting
metro rail system will therefore be part of this project, and will also
link the airport at Gangavaram and the suburban railway station at
Tadepalli.
2 Anticipated project 2020
completion timeline
3 Approximate project cost £ 507 million (₹ 50,700 million)
4 Project details In Phase 1, 26 km of mass rapid metro rail system will be
constructed (the final length will be 107 km) . Indicative
project specifications
for Phase 1 are mentioned below:
Particulars Specification
Capacity (passenger per vehicle) 1,000-2,000 km
Capacity per hour per direction 30,000-70,000
Fare collection Off-board
Speed limit 50-120 km/h
5 Development and • 100% FDI is allowed in metro projects through the
investment opportunity ‘Automatic’ route. The prior approval of the Government
of India is not required.
• Project development will be under the EPC / PPP framework.
Metro projects in India have demonstrated return on
equity of around 8% - 9%, with a combination of
government grant support and multilateral funding options.
• MRT projects are capital-intensive and long gestation
projects and hence require concessional and long-term loan
options
• The Government of India has accorded ‘Infrastructure’ status
to metro projects. This opens up access to incentives such as
a higher limit on external commercial borrowing, lower lend
ing rates, tax holidays, lower import duties, and financial
assistance from specialised institutions
Metro Line One

58 | Annex1
3
1 Project need Andhra Pradesh is one of the biggest tourist destinations in India,
and ranks third for tourist numbers. To promote further tourism,
a scenic route between Amaravati and Vijayawada has been planned
along the Krishna River. This riverfront development will link three of
the ‘theme cities’ – Finance City, Sports City and the Tourism City.
The Finance City will be the economic centre with two iconic
towers. The Sports City will have large stadiums, arena and event
venues for international-scale sports events. The Tourism City will be
connected to all the tourist sites around the Krishna river, including
the religious tourism circuit. High-density commercial and mixed-use
development is planned along the waterfront, which will make
infrastructure development and businesses more viable. Distinctive
high-density residential developments have also been planned
along the waterfront.
completion timeline
3 Approximate project cost £ 313 million (₹ 31,310 million). The project cost includes a
contribution towards river training, bund widening and protection,
a four-lane road on the bund and urban water transport facilities
4 Project details The riverfront along the river Krishna will be a vibrant urban area
with commercial, recreational, entertainment and residential uses.
It includes:
• An iconic waterfront central business district where the
buildings will have direct access to the waterfront
• Amaravati plaza, which will host activities such as
amphitheatres, street hawkers and so on.
• Urban water transport, connecting various tourist locations
along the river
• Botanical gardens, theme parks, and a zoo
• Hotels, resorts, restaurants and other tourist facilities
5 Development and • Commercial, hospitality and cultural organisations can be
investment opportunity anchor tenants or enter into JVs with Indian counterparts
• Project development opportunity on an EPC basis
There will also be indirect employment generation by being part of
the central business district
Development of Krishna Riverfront

59 | Annex1
4
1 Project need City authorities in India are facing a variety of issues relating to
public utilities, including thefts, high maintenance costs, outages,
and damage caused by natural events like excessive rainfall and
extreme weather. As a world-class ‘smart city’, Amaravati has
planned to overcome these problems by constructing an under
ground utility duct tunnel along all its major roads. This will reduce
the initial capital costs and provide rapid access to all utilities for
repair and maintenance without the need for access trenches, which
can also cause damage to adjacent infrastructure. Duct tunnels will
also allow the accurate mapping of utility cables, provide greater
resilience to cyclones and flooding, reduce maintenance costs, and
improve the appearance of the surrounding area.
completion timeline
3 Approximate project cost £ 245 million (₹ 24,480 millions)
4 Project details Construction of 306km of utility duct tunnels along the arterial and
sub-arterial roads of the capital city. This is likely to include optical
fibre cables, telecom lines, electricity distribution etc.
5 Development and • 100% FDI is allowed in duct utility infrastructure through
investment opportunity the Automatic’ route. The prior approval of the
• Such projects are implemented usually through the
• The Government of India has accorded ‘Infrastructure’
status to urban utilities. This opens up access to various
incentives such as a higher limit on external commercial
borrowing, lower lending rates, tax holidays, lower import
duties, and financial ssistance from specialised institutions
among other benefits.
• Amaravati is one of the cities selected by the central
government for the Atal Mission for Rejuvenation and Urban
Transformation (AMRUT). This will provide funds for urban
utility projects
Duct Utility Tunnel along Arterial / Sub-Arterial Roads

1 Project need During the monsoon season, some of the low-lying areas in the
capital city are prone to flooding. 13,500 acres of this area are
affected by draining from the Kondaveeti Vagu canal, and about
10,600 acres are within the planning area of the city. Storm water
runoff is estimated at about 3.84 TMC. 80% of the surface run-off
in the capital city is not used, but merely discharged to the sea
via the Krishna River. As the catchment area is developed, the
surface run-off volumes and speeds are expected to increase
significantly, causing more flooding and the water will be wasted.
The detention ponds proposed under this project could provide
temporary storage for storm water run-off, and help prevent
flooding, while also providing a new source of raw water.
completion timeline
4 Project components Component Specification
Kondaveeti Vagu main drain 30 km
Infalling drains (right arm, left arm, 53km
Erravagu, Kotella Vagu, Ayyannavagu,
Palavagu)
Formation of three detention ponds at 1 TMC each
Neerukonda, Krishnayapalem and Lam
Constructing of outfall regulator on 29km
the banks of Krishna
Construction of storm water drains/Inlets 40km
Raising of platform levels and capital 5 sq.km
area to a safe level
5 Development and • 100% FDI is allowed in urban flood management works
• Flood management projects are usually implemented
through the Engineering, Procurement and Construction
(EPC) route.
to such projects. This opens up access to incentives such as
a higher limit on external commercial borrowing, lower
lending rates, tax holidays, lower import duties and financial
Flood Management Works
60 | Annex1
5

61 | Annex1
6
1 Project need Municipal Sewage projections are made assuming that 80% of an
area’s potable water consumed daily will be collected as sewage.
Industrial sewage waste is estimated as 80% of the potable water
consumed and a 10% infiltration rate. The sewage waste projected
for Amaravati’s municipal and industrial activities is 445 MLD and
53.7 MLD respectively. There is currently no formal sewerage system
within the capital city, and there is therefore a need for a waste water
collection and treatment system.
completion timeline
4 Project details Phase 1 will include the development of a sewer network,
appurtenances and pumping system (660 km), a sewage treatment
works (208 MLD), and an urban irrigation network (660 km).
Component Total(£ million) 2017 2018 2019 2020
Sewer network, 165 16.5 49.5 49.5 49.5
appurtenances
and Pumping
Sewerage 24.96 - - 6.24 6.24
treatment plant
Urban 66 - 13.2 13.2 13.2
Irrigation
Network
5 Development and • 100% FDI is allowed in sewage treatment through the
investment opportunity ‘Automatic’ route. The prior approval of Government of
India is not required.
status to sewage treatment projects. This opens up access
to various incentives such as a higher limit on external
commercial borrowing, lower lending rates, tax holidays,
lower import duties, and financial assistance from
specialised institutions.
government for the Atal Mission for Rejuvenation and
Urban Transformation (AMRUT). This will provide funds
for urban utility projects
Waste Water Collection Treatment System

62 | Annex-1
7
1 Project need The city of Amaravati will need 610 MLD of water by 2050.
This includes demand from residential, industrial, commercial,
institutional and other sectors, as identified in the Amaravati city
master plan. Currently the source of water supply is ground water
reserves, being extracted on an adhoc basis to meet the needs
of 10 million people in the villages of the catchment area. However,
the ground water reserves would not be sufficient to meet the rising
demand of Amaravati city. With that in mind, the plan is to source
additional water from the Krishna river and surface run-off from Kon
daveeti Vagu canal. The project would be developed in phases and
the immediate demand would be for 260 MLD.
2 Project components Source improvement infrastructure (intake wells/infiltration galleries,
raw water pipelines, pumping stations, electrification etc.), and a
bulk water and distribution pipeline network of – 660 km, including
appurtenances and metering, water treatment plant(s) able to deal
with 260 MLD, storage reservoirs, distribution network, and an
automated control and command centre.
completion timeline
5 Development and • FDI Investment: 100% FDI is allowed in urban water supply
• Water supply projects are usually implemented through the
Water supply development projects have also been carried
out under the Public Private Partnership (PPP) framework,
where the private partner usually develops and operates the
project on a Build - Operate and Transfer (BOT) basis.
Typically the return on equity for such projects is
between 16% and 18%, with the government stepping in
if there is a revenue shortfall.
to urban water supply projects. This opens up access to
various incentives such as a higher limit on external
commercial borrowing, lower lending rates, tax holidays,
lower import duties, and financial assistance from specialised
institutions.
• Amaravati is one of the cities selected by central
goverment for the Atal Mission for Rejuvenation and Urban
Transformation (AMRUT) . Under the scheme, financial
support is extended to urban utility projects.
6 Employment generation Around 2,040 jobs
Development of a Water Supply System for Amaravati City

63 | Annex-1
8
1 Project need As the region’s economy grows, and its population rises, there will
be an increased demand for power. Amaravati city is expected to
need 1,500 MW in the medium term. Andhra Pradesh is currently
the only state in the country to provide a 24/7 power supply to
industry
completion timeline
3 Approximate project cost £125 million (₹ 1,2500 million)
4 Project details The main project component is the provision of additional
transmission mains, sub-stations 220/132/33/11 KV (2+30+130)
and distribution system.
5 Development and • 100% FDI is allowed in power through the ‘Automatic’ route.
investment opportunity The prior approval of the Government of India is not
required.
• Power transmission and distribution projects are usually
implemented through the Engineering, Procurement and
Construction (EPC) route. Such projects have also been
carried out under the Public-Private Partnership (PPP)
framework, where the private partner usually develops and
operates the project on a Build - Operate and Transfer (BOT)
basis. The National Tariff Policy established in 2006 ensures
a return on investment to companies engaged in power
generation, transmission and distribution of around 18%.
to power projects. This opens up access to incentives such
as a higher limit on external commercial borrowing, lower
lending rates, tax holidays, lower import duties, and financial
assistance from specialised institutions.
Power Transmission Distribution

64 | Annex-1
9
1 Project need Over 15,000 of the government’s 1 million employees are expected
to move to Amaravati by mid-2016. This will significantly increase
the demand for housing and this will need to be provided on a
priority basis.
completion timeline
4 Project details The development area is around 4.6 million sq.ft in the Government
City, and will include a state guest house, Chief Minister’s residence,
ministers’ bungalows, MLA and MLC quarters, Chief Justice’s
residence, judges quarters, AIS officer’s residence, gazetted officers
quarters, non-gazetted officer’s quarters, class IV employee quarters.
5 Development and Such projects are usually implemented through the Engineering,
investment opportunity Procurement and Construction (EPC) route.
Housing for Government Employees

65 | Annex-1
10
1 Project need Amaravati is the people’s capital and puts a priority on providing
affordable homes to the economically weaker sections. 14,000
families have been identified as needing this type of housing,
which is estimated to require an area of 7,000,000 sq. ft.
completion timeline
4 Project details Affordable housing for 14, 000 families to be constructed to
international quality standards.
5 Development and • 100% FDI is allowed in the construction of affordable
investment opportunity housing through the ‘Automatic’ route. Prior approval of
Engineering, Procurement and Construction (EPC) route
• The Government of India offers incentives to attract Foreign
Direct Investment in affordable housing development:
a) foreign investors are allowed to exit after the
development of trunk infrastructure and do not have to
wait until the completion of the project,
b) there are no minimum investment restrictions, and
c) there are no minimum development norms restrictions.
6 Employment generation 980 jobs
Affordable Housing

66 | Annex-1
11
1 Project need Amaravati city is targeting five clean and non-polluting industries:
high-value food processing, electronics/hardware, IT/IT-enabled
services, financial services, and Research Development. An area of
1,303 hectares has been earmarked for these industries, including
an industrial zone along the proposed city expressway. This has been
designated as a priority project. It will be able to draw on four
townships for skilled and unskilled labour
completion timeline
4 Project components The 140-hectare industrial zone will be reserved for light and
non-polluting industries. The buildings will range from low-rise
detached, semi-detached, and terrace factories, to high-rise
multi-tenanted, multi-storey factories. The clustering of similar
industries within the zone will generate useful synergies. The
infrastructure that needs to be developed in the zone includes water
supplies, internal roads, waste collection and treatment, telecom
lines, electricity distribution, storm water drains, and landscaping.
5 Development and • Companies from the target industries can set up their
investment route manufacturing bases in the zone.
• Project development on an EPC basis

Development of the Industrial Zone

67 | Annex-1
12
1 Project need Growth in Amaravati city is being driven by its excellent transport
connections to local and global markets. However, last-mile
connectivity still needs to be provided to connect the city centre to
the nearest transport hubs. The city can draw on skilled labour from
Vijayawada, as long as there are good transport links between the
cities. It is also important to provide connectivity to the industrial
clusters planned for the Amaravati region to enable trade. Two
urban expressways are planned to do this. These expressways will
also connect the city to the nearest national highways, railway
junctions, airport, Vijayawada city, providing road connections
along the fringe of the city and allowing through-traffic to bypass
the capital city centre.
completion timeline
3 Approximate project cost £ 60 million (₹ 6000 million)
4 Project details Development of east-west and north-south expressways including
interchanges / grade separators
Number of expressways 2
Total length 24km
Number of lanes 6 lanes (3 + 3)
Right of way 60 metres
Median width 4 metres (minimum)
Hard shoulder 3 metres
5 Development and • 100% FDI is allowed in roads and highways through the
investment opportunity ‘Automatic’ route. The prior approval of the Government of
India is not required.
• Such projects are usually implemented through Engineering,
Procurement and Construction (EPC) framework. Such
projects have also been carried out under the Public-Private
Partnership (PPP) framework, where the private partner
usually develops and operates the project on a Build -
Operate and Transfer (BOT) basis. Typically the return on
equity for such projects is between 16% and 18% with
the government stepping in if there is a revenue shortfall.
status to road and highway projects. This open up access
to incentives such as a higher limit on external commercial
duties, and financial assistance from specialised institutions

Development of City Expressways

68 | Annex-1
13
1 Project need Research and education is one of the five focus areas of
Amaravati’s city planning. With over 15,000 government employees
and associated staff moving to Amaravati in mid - 2016, there is
an immediate need to develop the primary, secondary and tertiary
education system in the region. The current student-teacher ratio in
the universities and colleges here is 15:1 and 13:1 respectively,
compared to the 10:1 ratio which is required by the Universities
Grants Commission, India. The government has made RD one of
its focus sectors by drafting an innovation policy as well as including
RD as one of the focus areas for the new capital city.
Around 1,000 hectares of land in Amaravati have been reserved
for the development of “Knowledge City”, which will be located
around the central park. The Knowledge Park will be the hub for
the city’s education and research activities. There are currently very
few research organisations in the region, but prestigious institutions
like Cambridge University, All India Institute of Medical Sciences
(AIIMS), and Amrita university have agreed to set up campuses in
the Knowledge City.
completion timeline
4 Project details The Knowledge City will house higher-level multi-disciplinary
educational colleges, national libraries, recreational parks, a sports
academy and a MICE facility, grouped around a large university
campus. The knowledge hub will include a library, data-bank,
resource centre, conference centres, training facilities, and RD
facilities including IT clusters, biomedical research centres, and so
on. All facilities will be accessible to both students and companies
at affordable prices.
5 Development and • Project development on an EPC basis
investment opportunity • Educational and research institutions can participate as
anchor tenants or through collaborations with Indian
universities.
Development of University Zone

69 | Annex-1
14
1 Project need Amaravati city will see a growth in MICE activities in the next few
years as the region’s economy grows and develops. Land has also
been earmarked in the master plan to develop world-class physical
and social infrastructure, including the construction of nine
convention centres over the next 30 years. In the short term,
one large-scale convention centre is planned by 2020,
accommodating at least 10,000 people.
completion timeline
4 Project details Convention centre, exhibition centre, star-category hotels and
commercial space
5 Development and • To be developed under the Public - Private Partnership (PPP)
investment opportunity framework where the private partner usually develops and
operates the project on a Build - Operate and Transfer (BOT)
basis. The return on equity for such projects is typically
between 15% and 18%.
• The Tourism Ministry of the Government of India offers
viability gap funding for MICE projects.
• Andhra Pradesh’s tourism policy offers incentives which can
include the waiver of non-agricultural land assessment tax,
land use conversion charges for new units, total
reimbursement of registration and stamp duties, exemption
from luxury and entertainment taxes for three years, levy of
5% VAT/CST/SGST and the provision of complementary/
linkage infrastructure to boost PPP projects in MICE
Meetings, Incentives, Conference Exhibitions (MICE) Facilities

70 | Annex-1
15
1 Project need The region’s increasing growth and industrialisation can create issues
for the natural environment. Many parts of India have seen
environmental degradation such as contaminated water, sinking
groundwater levels, unhealthy soils, and polluted air. Amaravati is
likely to generate municipal and industrial solid waste of 2,018
tons/day and 255 tons/day respectively. At present, the waste
generated from the surrounding region is transported and dumped
in the open without treatment, causing environmental problems.
Amaravati city will be implementing an urban solid waste
management system to address this issue.
completion timeline
4 Project components Phase 1 includes the development of solid waste management
infrastructure including an automated control and command centre.
5 Development and • 100% FDI is allowed in solid waste management through
investment opportunity the‘Automatic’ route. The prior approval of the
• Usually, such projects are implemented through
Such projects have also been carried out under the
Public-Private Partnership (PPP) framework, where the
private partner usually develops and operates the project
on a Build - Operate and Transfer (BOT) basis.
status to solid waste projects. This opens up access to
incentives such as a higher limit on external commercial
duties, and financial assistance from specialised institutions.
• The Ministry of Agriculture and Ministry of Renewable
Energy and Environment provide fiscal incentives for
waste composting and waste-to-energy projects
government for the Atal Mission for Rejuvenation and
Urban Transformation (AMRUT). This will provide funds
for urban utility projects
Solid Waste Management System

71 | Annex-1
16
1 Project need The health infrastructure in the capital region is currently inadequate
for the existing population, and below global benchmarks: the
number of hospital beds for every 1,000 people is 0.4 as against
7, and the number of doctors is 0.3 as against 4.5. The number
of hospitals per 250,000 people is 0.6 as against 1. Over 15,000
government employees and associated staff are expected to move
to Amaravati city in mid-2016, which will mean an even greater
demand for quality and affordable healthcare. The new capital city
also aspires to become a leader in the healthcare sector, and has
identified healthcare as one of its focus sectors. A ‘Health City’
of 2,585 hectares has been planned in the capital and land has
been reserved throughout the city for healthcare infrastructure.
A medical academy and research centres are planned in the capital,
providing access to a talented workforce. Leading institutions like
AIIMS and the Indo-UK Institute of Health have already shown
interest in setting up hospitals in the capital.
2 Anticipated project Primary healthcare centers and hospital by 2018. Other facilities
completion timeline by 2020
4 Project details Primary and secondary healthcare centres, OPD, IPD, operating
theatre, emergency / ICU, X-Ray / diagnostic / pathology,
ophthalmic, orthopedic, pediatric, ambulance services etc.
5 Development and • 100% FDI is allowed in hospitals through the ‘Automatic’
investment opportunity route. The prior approval of the Government of India is not
required.
• Development projects can also be done under Public-Private
Partnership (PPP) framework, where the private partner
usually develops and operates the project on a Build
Operate and Transfer (BOT) basis.. The return on equity for
such projects varies depending on the degree of private
sector involvement. The return on equity in such projects
could be a minimum of 18% – 20%.
status to hospitals. This opens up access to incentives such
• The total FDI in the hospitals sector in the last ten years
was £ 650 million. The government gives priority to
proposals such as hospitals, life-saving drugs, and
equipment.

Healthcare Facilities

72 | Annex-1
17
1 Project need The Vizag Chennai Industrial Corridor (VCIC) is a key part of the
planned East Coast Economic Corridor, India’s first coastal corridor
which aims to improve economic activity in Andhra Pradesh.
The VCIC corridor is aligned with the Golden Quadrilateral and will
play a critical role in driving India’s new “Act East Policy” and
“Make in India” policy. The corridor will support Andhra Pradesh’s
efforts to grow its manufacturing sector and create high-quality jobs.
completion timeline
3 Approximate project cost Total cost by 2045 - £ 20 billion (₹ 2,000 billion)
Short-term cost by 2020 - £ 4 billion (₹ 424 billion)
4 Project details As a part of the VCIC, several projects have been identified to ease
congestion and make it easier to do business in the state. These
include ports, airports, roads, railways, and urban utilities.
5 Development and • The Asian Development Bank is partially funding the
investment opportunity project along with the Government of Andhra Pradesh
• A project development facility fund is envisaged to finance
a range of projects in VCIC.
• Sector-specific FDI is allowed in various infrastructure
components of the project
status to airports, ports, roads, and common infrastructure
for industrial parks. This opens up access to incentives such
as a higher limit on external commercial borrowing,
lower lending rates, tax holidays, lower import duties,
and financial assistance from specialised institutions.
6 Employment generation Potential of 14 million jobs in the region by 2045
7 Implementing agency Commissionerate of Industries
Vizag Chennai Industrial Corridor

73 | Annex-1
18
1 Project need The current Visakhapatnam airport is a civil enclave on a naval
airfield, which creates constraints on its operations. International
passenger traffic at Visakhapatnam international airport increased
as much as 90.8% between April and August 2015, compared to
the corresponding period the previous year. Visakhapatnam will
be developed as one of the four nodes in the Vizag-Chennai
Industrial Corridor, which will bring both industrial and services
sector growth in the city, making it a trading hub on the east coast.
With all this in mind, an airport will be developed at Bhogapuram,
40 kms north-east of Visakhapatnam city.
completion timeline

4 Project details The airport will be built on 5,300 acres in and around Bhogapuram,
including 1,673 acres of government land. The airport will be part
of an aerotropolis, which will also have a maintenance, repair and
overhaul facility (MRO), along with an aviation academy.
5 Investment route • FDI investment: sector-specific FDI is allowed in various
infrastructure components of the project
• The project will be developed under the EPC/Public Private
Partnership (PPP) framework where the private partner
usually develops and operates the project on a Build -
Operate and Transfer (BOT) basis. The return on equity
for such projects is typically between 18% and 20%.
status to airports. This opens up access to incentives such
assistance from specialised institutions.
7 Implementing agency Bhogapuram International Airport Company Limited (a special-
purpose vehicle owned by the Government of Andhra Pradesh)
Bhogapuram Airport

74 | Annex-1
19
1 Project need India has an extensive network of inland waterways which is currently
under-utilised for cargo. Less than 2% of cargo is moved this way,
compared to 45% in Europe. India wants to tap this huge potential
by developing six inland waterways. The National Waterway –
4 project is 1,095 km, with 888 km of that in Andhra Pradesh,
connecting Kakinada to Pondicherry through the Krishna river,
Godavari river, canals and tanks. It is the second longest waterway
of India and will help reduce the cost of freight transport in Andhra
Pradesh, as well as easing congestion on the roads and railways.
Around 11 million tons of cargo is expected to be transported
through the NW-4 every year, including coal, cement, fertiliser
and food grains (rice, wheat, cereals). These account for significant
road and rail traffic in Andhra Pradesh at present.
completion timeline
3 Approximate project cost Total cost - £151.5 million (₹ 15,150 million);
Andhra Pradesh section - £133.2 million (₹ 13,320 million)
4 Project details Construction of eight terminals at Kakinada, Rajahmundry, Eluru,
Kottapatnam, Maipadu, Dugarajupatnam, Vijayawada, and
Tadepalligudem. The project includes dredging and excavation to
develop a navigational channel, construction of terminals and
navigational locks, redesigning existing bridges etc.
5 Development and • Such projects are usually implemented through the
investment opportunity Engineering, Procurement and Construction (EPC) route.
• Inland waterways projects are capital intensive and long
gestation projects and hence would require concessional
and long term loan options
status to inland waterways projects. This opens up access
to incentives such as a higher limit on external commercial
duties, and financial assistance from specialised institutions.
7 Implementing agency Inland Waterways Authority of India and the Government of
Andhra Pradesh
National Waterways

This brochure has been prepared by PwC Private Limited, India (“PwC”). This brochure has been prepared for general guidance on matters of
interest only, and does not constitute professional advice. You should not act upon the information contained in this brochure without obtaining
specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information
contained in this brochure, and, to the extent permitted by law, PwC, its members, employees and agents accept no liability, and disclaim all
responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this brochure
or for any decision based on it.
This brochure contains certain examples extracted from third party documentation and so being out of context from the original third party
documents; readers should bear this in mind when reading the brochure. The copyright in such third party material remains owned by the third
parties concerned, and PwC expresses its appreciation to these companies for having allowed it to include their information in this brochure.
For a more comprehensive view on each company’s communication, please read the entire document from which the extracts have been taken.
Please note that the inclusion of a company in this brochure does not imply any endorsement of that company by PwC nor any verification of
the accuracy of the information contained in any of the examples

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