andhra pradesh august 2015

69
For updated information, please visit www.ibef.org ANDHRA PRADESH THE RICE GRANARY OF INDIA AUGUST 2015

Upload: phani-nidamanuri

Post on 16-Jul-2016

32 views

Category:

Documents


3 download

DESCRIPTION

Ap

TRANSCRIPT

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

AUGUST 2015

Executive Summary……………….….…. 3

Re-organisation Act, 2014 .………….…..5

Advantage State…………………….…….7

Andhra Pradesh – An Introduction…….. 8

Infrastructure Status……………………..22

Business Opportunities……………..…. 36

Doing Business in Andhra Pradesh….. 52

State Acts & Policies…………………... 60

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

AUGUST 2015

3 3 For updated information, please visit www.ibef.org

EXECUTIVE SUMMARY … (1/2)

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Proposed industrial corridor

• The proposed Visakhapatnam-Chennai industrial corridor is expected to attract an investment of US$ 16.7 billion in 10-15 years and will create more than 50,000 jobs.

Vizag among top five ports in India

• The Visakhapatnam port ranks amongst the top five of 13 major ports in the country. By the end of 2015, it is projected to handle 85.0 million tonnes of cargo.

• In 2015, Visakhapatnam port has announced to construct two new berths worth US$ 103 million. The ports are projected to be ready by 2018.

Power surplus state • Seemandhra, comprising Rayalaseema and coastal Andhra, has most of the power

projects of undivided Andhra Pradesh. Coal based power plants are mostly located in the state due to proximity to the ports.

FDI investment scattered across state

• FDI in Andhra Pradesh is scattered across the state both in Coastal Andhra and Rayalaseema.

Largest exporter of marine products

• Andhra Pradesh is one of the largest producers of brackish water shrimps and freshwater prawns. It contributes more than 20 per cent to the country’s total marine exports.

AUGUST 2015

Source: Andhra Pradesh state portal, Central Electricity Authority, Indian Port Association, DIPP

4 4 For updated information, please visit www.ibef.org

EXECUTIVE SUMMARY … (2/2)

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Home to various pharma players

• Various pharmaceutical companies have set up their manufacturing hubs in Visakhapatnam and Srikakulam districts. The state provides ample growth opportunities due to availability of ports, pharma city, large parcels of land for expansion etc.

Tourist destinations • The state has a large coast line of nearly 974 kms, temple destinations, lush green forests

and spicy cuisine which have led to increase in domestic tourism in the last few years. • Ecotourism projects are also being developed after assessing the situation on ground.

Rich in hydrocarbon and mineral resources

• According to the Director General of Hydrocarbons (DGH), Andhra Pradesh has huge oil and gas reserves; the state is also rich in mineral resources which include manganese, limestone, mica, steatite, copper, graphite, etc.

Setting up PCPIR and NIMZs

• The state is in the process of setting up two National Investment and Manufacturing Zones in Chittoor and Prakasam districts. Moreover, the upcoming PCPIR in the region would boost refining, petrochemicals and chemical industries.

Large number of operational SEZs

• Andhra Pradesh has 29 operational SEZs in the state across diversified sectors located mainly across Visakhapatnam, East Godavari and Nellore.

AUGUST 2015

Source: Andhra Pradesh state portal PCPIR: Petroleum, Chemicals and Petrochemicals Investment Region

5 5 For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

REORGANISATION ACT, 2014 … (1/2)

Andhra Pradesh Reorganisation Act, 2014 or the Telangana Act is a parliamentary declaration of the bifurcation of Andhra Pradesh state into two states, Telangana and residuary Andhra Pradesh (Seemandhra). The act consisted of the aspects of division of assets and liabilities, the boundaries of the proposed new states and status of the capital city Hyderabad after the separation of the state.

• Greater Hyderabad Municipal Corporation area of Hyderabad would be the common capital for the states for a period not more than 10 years.

• Both states to have a common Governor. Common capital and Governor

• Central government to provide assistance to raise additional forces. • New training centre for Seemandhra would be established. Police forces

• High Court at Hyderabad would be a common High Court till a separate High Court is established for Seemandhra.

• The expenditure is to be allocated on the basis of population ratio. High Court

• Central government to make appropriate grants, provide adequate benefits and incentives in the form of a special development package for Seemandhra.

• This will ensure expansion of physical and social infrastructure.

Special development package

AUGUST 2015

6 6 For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

REORGANISATION ACT, 2014 … (2/2)

• For central government employees, an advisory committee would be appointed to draw up guidelines and take up the allocation exercise.

• For state government employees, district, zonal and multi-zonal cadres falling in one of the successor states are deemed to be allotted to that state; else employees would be allocated based on options.

Services of employees

• Two separate boards would be created by the central government for Krishna and Godavari Rivers to look after administration, regulation, maintenance and operation of notified projects.

Water resources

• Existing PPAs would continue; units of APGENCO and assets of APTRANSCO would be divided based on location.

• Central power would be allotted on actual energy consumption trend. Energy

• The Government of India shall take steps to establish institutions of national importance in the newly formed state.

• The Government of India shall establish one AIIMS-type super-specialty hospital-cum-teaching institution.

• Admissions in higher, technical and medical education would be common for ten years.

• Quotas under article 371-D would also continue.

Higher education

• Central government to provide financial support for creation of a new capital. • An expert committee to be constituted by the central government to study

various alternatives and make a recommendation within six months. New capital

AUGUST 2015

7 7 For updated information, please visit www.ibef.org

Source: Andhra Pradesh state portal DGH: Director General of Hydrocarbons, GSDP: Gross State Domestic Product

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Growing demand High economic growth • GSDP expanded at a Compound

Annual Growth Rate (CAGR) of 11 per cent between 2004-05 and 2014-15 to US$ 85.8 billion.

• Per capita income improved at a CAGR of 9.9 per cent between 2004-05 and 2014-15 to US$ 1,493.

• Andhra Pradesh is a leading agricultural state and plans to bring out a white paper for further agricultural progress.

Rich in hydrocarbon reserves

• According to DGH, the state has huge oil and natural gas reserves.

• The KG basin in the east coast has been categorised as a region with proven commercial productivity of hydrocarbons by DGH.

• Over 39,000 sq km stretch in Kadapa district has been earmarked by DGH as a potential exploration site for rare natural resources.

Adequate power generation capacity

• Most of the coal-based power plants are located in the coastal regions due to their connectivity to the ports.

• As gas production from Krishna Godavari Basin (KG basin) picks up, gas based power plants will generate more power leading to the state to become a power surplus state.

• A 6,000 MW nuclear power plant is to be set up in Srikakulam District.

April 2015

Installed power

capacity: 10,034 MW

2020E

Installed power

capacity: ~20,000

MW

ADVANTAGE: ANDHRA PRADESH

Long coastline • A 974-km long coastline provides

numerous opportunities for the state to develop a number of ports.

• Currently has 14 notified non-major ports and one major port (in Visakhapatnam).

• The coastline and ports open opportunities for hydrocarbons, developing LNG terminals, setting up of pharmaceutical, aqua and agri

corridors. Advantage Andhra Pradesh

AUGUST 2015

8 8 For updated information, please visit www.ibef.org

ANDHRA PRADESH FACT FILE

Andhra Pradesh is located in the southern peninsula of India and has a coast line of 974 km. The state of Andhra Pradesh is bound by Chhattisgarh on the north, Odisha on the northeast, Telangana and Karnataka on the west, Tamil Nadu on the south, and the Bay of Bengal on the east. Visakhapatnam, Vijayawada, Tirupati, Rajahmundry, Guntur, Kakinada, Ongole, Nellore and Kurnool are some of the key cities in the state.

Most commonly spoken language is Telugu. Urdu, Hindi, Tamil, Kannada and Oriya are the other languages used.

Source: Andhra Pradesh state portal ^Share with Telangana for 10 years

Parameters Andhra Pradesh

Capital Hyderabad^

Geographical area (sq km) 160,205

Administrative districts (No) 13

Population density (persons per sq km)

308

Total population (million) 49.5

Male population (million) 24.7

Female population (million) 24.7

Sex ratio (females per 1,000 males) 996

Literacy rate (%) 67.4

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Source: Maps of India

AUGUST 2015

9 9

Parameter Andhra Pradesh

All states Source

Economy 2014-15 2014-15

GSDP as a percentage of all states’ GSDP 4.2 100.0 Directorate of Economics & Statistics of Andhra

Pradesh, Central Statistics Office

GSDP growth rate (%) 11.42 7.3 Directorate of Economics & Statistics of Andhra

Pradesh, Central Statistics Office

Per capita GSDP (US$) 1,824 1,389.61 Directorate of Economics & Statistics of Andhra

Pradesh, Central Statistics Office

Physical Infrastructure

Installed power capacity (MW) 11,275.29* 272,502.95 Central Electricity Authority, as of May 2015

Wireless subscribers (No) 71,578,461** 973,347,094 Telecom Regulatory Authority of India-April 2015

Broadband subscribers (No) 4,810,000*** 100,760,000 Telecom Regulatory Authority of India-April 2015

National Highway length (km) 4,423 92,851.07 National Highway Authority of India April-2015

Major and minor ports (No) 2+11 13+187 India Ports Association 2015

Airports (No) 8 132 Airports Authority of India

^For undivided state, *As of June 2015, **As of May 2015, ***As of March 2015

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

ANDHRA PRADESH IN FIGURES … (1/2)

AUGUST 2015

10 10

Parameter Andhra Pradesh

All states Source

Social Indicators

Literacy rate (%) 67.4 73.0 Census 2011

Birth rate (per 1,000 population) 17.5 21.6 SRS Bulletin, October 2013

Investment

FDI equity inflows (US$ billion) 10.0 248.5 Department of Industrial Policy & Promotion, April 2000 to March 2015

Outstanding investments (US$ billion)^ 136.67 2,414.2 CMIE (2013-14)

Industrial Infrastructure

PPP projects (No) 120 1,409 DEA, Ministry of Finance, Government of India

SEZs (No) 37 347 Notified as of March 2015, Ministry of Commerce & Industry, Department of

Commerce

^For undivided state, PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System

For updated information, please visit www.ibef.org

ANDHRA PRADESH IN FIGURES … (2/2)

ANDHRA PRADESH THE RICE GRANARY OF INDIA

AUGUST 2015

11 11

At current prices, Andhra Pradesh’s gross state domestic product (GSDP) was US$ 85.8 billion over 2014-15. Between 2004-05 and 2014-15, the average annual GSDP growth rate was 11 per cent. Growth was mainly driven by industrial and services sectors.

Source: Directorate of Economics & Statistics of Andhra Pradesh, Central Statistics Office

GSDP of Andhra Pradesh at current prices (in US$ billion)

For updated information, please visit www.ibef.org

ECONOMIC SNAPSHOT – GSDP

ANDHRA PRADESH THE RICE GRANARY OF INDIA

CAGR 11%

AUGUST 2015

30,1 33,4 38,6

52,7 51,4 57,6

70,1 77,3 75,5 77,0

85,8

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

2014

-15

12 12

At current prices, Andhra Pradesh’s net state domestic product (NSDP) was estimated at US$ 76.1 billion over 2014-15. Between 2004-05 and 2014-15, the average annual NSDP growth rate was about 10.9 per cent.

Source: Directorate of Economics & Statistics of Andhra Pradesh, Central Statistics Office

NSDP of Andhra Pradesh at current prices (in US$ billion)

For updated information, please visit www.ibef.org

ECONOMIC SNAPSHOT – NSDP

ANDHRA PRADESH THE RICE GRANARY OF INDIA

AUGUST 2015

27,1 30,1 34,7

47,4 46,6 52,1

63,5 68,6 66,7 68,2

76,1

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

2014

-15

CAGR 10.9%

13 13

648 714 816

1.106 1.070 1.188

1.433 1.585 1.550 1.636

1.824

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

2014

-15

Andhra Pradesh’s per capita GSDP increased to US$ 1,824 during 2014-15 from US$ 647.7 over 2004-05. Average per capita GSDP rose at a CAGR of 10.9 per cent between 2004-05 and 2014-15.

Source: Directorate of Economics & Statistics of Andhra Pradesh, Central Statistics Office

GSDP per capita of Andhra Pradesh at current prices (in US$)

For updated information, please visit www.ibef.org

ECONOMIC SNAPSHOT – PER CAPITA GSDP

ANDHRA PRADESH THE RICE GRANARY OF INDIA

CAGR 10.9%

AUGUST 2015

14 14

583 644 734

994 968 1.081

1.303 1.442 1.410 1.448

1.616

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

2014

-15

Andhra Pradesh’s per capita NSDP grew from US$ 583.4 during 2004-05 to US$ 1,616 over 2014-15. Average per capita NSDP increased at a CAGR of 10.7 per cent between 2004-05 and 2014-15.

Source: Directorate of Economics & Statistics of Andhra Pradesh, Central Statistics Office

NSDP per capita of Andhra Pradesh at current prices (in US$)

CAGR 10.7%

For updated information, please visit www.ibef.org

ECONOMIC SNAPSHOT – PER CAPITA NSDP

ANDHRA PRADESH THE RICE GRANARY OF INDIA

AUGUST 2015

15 15

Andhra Pradesh’s per capita income grew from US$ 579.3 during 2004-05 to US$ 1,493 over 2014-15. Average per capita income increased at a CAGR of 9.9 per cent between 2004-05 and 2014-15.

Source: Directorate of Economics & Statistics of Andhra Pradesh, Central Statistics Office, Andhra Pradesh state portal

Per capita Income of Andhra Pradesh at current prices (in US$)

For updated information, please visit www.ibef.org

ECONOMIC SNAPSHOT – PER CAPITA INCOME

ANDHRA PRADESH THE RICE GRANARY OF INDIA

AUGUST 2015

579

639

730

988

962

1,06

5

1.2

88

1.4

24

1.4

00

1.4

75

1.4

94

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

2014

-15

CAGR 9.9%

16 16

During 2014-15, the services sector accounted for 51.79 per cent, followed by agriculture (27.59 per cent) and industry (20.62 per cent). The services sector grew the fastest at a CAGR of 11.8 per cent in 2014-15, followed by industry (CAGR of 10.5 per cent) and agriculture (CAGR of 10.2 per cent) between 2004-05 and 2014-15.

GSDP composition by sector

For updated information, please visit www.ibef.org

ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Source: Andhra Pradesh state portal

AUGUST 2015

29,90% 27,59%

21,60% 20,62%

48,50% 51,79%

2004-05 2014-15

Agriculture Industry Services

CAGR

10.2%

11.8%

10.5%

17 17

During 2014-15, total gross area under crop production in Andhra Pradesh was 16.8 million hectares. Overall production of cereals and millets during 2014-15 stood at 9.3 million tonnes. Major food grains produced in Andhra Pradesh are rice, maize and pulses. Sugarcane, cotton, tobacco and groundnut are some of the other major crops produced in the state. The state has the groundnut rich Rayalseema area, which accounts for nearly 90 per cent of state’s production of groundnut. This area also produces most of the sugarcane in the state. During 2014-15, total production of oilseeds in the state was estimated at 1.5 million tonnes.

For updated information, please visit www.ibef.org

ECONOMIC SNAPSHOT – AGRICULTURAL SCENARIO

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Crop Area under production

‘000 Ha (2014-15)

Crop production ‘000 tonnes (2014-15)

Rice 2,772 6,863.0

Maize 233 2,218*

Cereals & millets 3,210 9,363

Pulses 1,373 1133*

Total food grains 4,584 11,664*

Groundnut 1,426 880*

Oilseeds 1,974 1,988

Vegetables 159 6,554*

Fruits 618 9,589*

Cotton 388.9 1,543.0

Fodder crops 66.79 NA

Source: Andhra Pradesh state portal NA – Not Available, *2013-14

AUGUST 2015

18 18

As of May 2014, 48.1 per cent of the irrigation in the state was dependent on canal water, more than 37.6 per cent on ground water and 10.3 per cent on tank water. The undivided state has embarked on water projects in the country called Jalayagnam with an estimated cost of nearly US$ 20 billion. This water management program was introduced in 2009 to bring a larger parcel of land in the undivided Andhra Pradesh under irrigation. Currently, out of the 29 major irrigation projects in Seemandhra, 10 are completed and 14 projects are ongoing. Moreover, of the 63 medium irrigation projects, 50 are completed and 11 are ongoing. The completion of the ongoing projects will further help the state to increase penetration of canal water harvesting and irrigate the large tracts of arid and dry land in the southern part of the state. In January 2015, the Andhra Pradesh cabinet announced to revamp the Jalayagnam programme to ensure completion of projects on time.

For updated information, please visit www.ibef.org

ECONOMIC SNAPSHOT – IRRIGATION

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Source: Andhra Pradesh state portal

Jalayagnam project status - May 2014

Major irrigation projects Numbers Area covered (million acres)

Completed 10 4.68

Ongoing 14 2.8

Contemplated 5 2.73

Medium irrigation projects Numbers Area covered (million acres)

Completed 50 0.57

Ongoing 11 0.21

Contemplated 2 0.047

AUGUST 2015

19 19 For updated information, please visit www.ibef.org

ECONOMIC SNAPSHOT – EXPORTS

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Source: Port of Visakhapatnam

Total exports turnover from Vizag Port (million tonnes)

29 29 30 27

24 25

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

AUGUST 2015

Exports from Visakhapatnam Port, one of 13 major ports in India, stood at 25 million tonnes during 2013-14. The port has also emerged as the leading port in marine exports in India. By 2015, the port is expected to handle 85 million tonnes of cargo Exports from the state have increased from US$ 5,529.9 million in 2005-06 to US$ 15,409.9 million in 2013-14. The major exports from the state are drugs, pharmaceuticals and allied chemicals and plastics, agriculture and agro based products, engineering products, minerals and mineral products, handicrafts and carpets, textiles, leather, animal and marine products. Export of marine products has increased from US$ 419.6 million in 2005-06 to US$ 1,607.8 million in 2013-15. Andhra Pradesh accounted for nearly 50% of the country’s marine exports.

20 20 For updated information, please visit www.ibef.org

ECONOMIC SNAPSHOT – EXPORTS

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Source: Andhra Pradesh State Portal NA: Not Available

AUGUST 2015

Andhra Pradesh exports by commodity (US$ million)

Commodity 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Agri based and forest products 1,510.6 1,256.8 1,230.1 1,391.3 2,511.1 2,765.4 2,867.3

Leather, animal and marine products

433.6 415.0 398.4 566.0 930.9 928.4 1,607.7

Mineral and mineral products 673.2 955.6 737.9 1,838.4 882.9 1,360.3 1,531.9

Handloom and textile 272.4 148.5 340.2 404.2 490.2 792.7 1,002.3

Handicrafts and carpets 135.3 278.3 186.6 244.6 672.4 1,023.9 766.8

Drug, pharmaceutical and allied chemical plastics

2,678.7 3,218.5 2,878.5 3,500.7 4,403.2 5,406.0 5,800.4

Engineering item 1,775.0 2,987.2 1,927.7 3,553.0 5,818.5 1,687.0 1,488.4

Electronics and electronics parts 274.1 513.9 656.9 906.6 386.7 346.0 330.1

Software (IT & ITeS) 6,486.7 7,045.7 7,060.7 7,676.9 8,670.2 9,443.0 4,931

Andhra Pradesh 14,239.6 16,819.5 15,424.5 20,081.8 24,766.0 23,752.7 15,409.9

21 21 For updated information, please visit www.ibef.org

ANNUAL BUDGET 2015-16

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Source: State Budget 2015-16

AUGUST 2015

State annual budget (in per cent)

Commodity 2015-16

Agriculture & allied services 7.74

Rural development 10.19

Irrigation & flood Control 4.65

Energy 3.86

Industry & minerals 0.60

Transport 7.41

General economic services 3.02

General education 15.62

Sports & youth services 0.07

Technical education 0.66

Art & culture 0.04

Medical 5.07

Water supply, sanitation 0.78

State annual budget (in per cent)

Commodity 2015-16

Housing 0.79

Urban development 2.80

Welfare 6.56

Labour and employment 0.25

Social security & welfare 1.01

General services 33.32

State government of Andhra Pradesh proposed a budget of US$ 18.75 billion for 2015-16.

22 22 For updated information, please visit www.ibef.org

As of 2014-15, the state was connected via 4,423 km of national highways and 76,896 km of other roads. The proposed Chennai Visakhapatnam corridor under the Reorganisation Act will aid development of road projects. The proposed Chennai-Bangalore corridor is anticipated to further support development of road projects in the region.

Recently, the finance minister stated that the master plan for both the projects will be ready soon and development work will start within the proposed timeline. Moreover, the government has also planned to identify important towns and cities in the state and build a network of express highways connecting those important cities.

Road type Road length (km)

2014-15

National highways 4,423

Total roads 76,896

Black top and asphalt 46,839

Concrete/metalled/unmetalled 30,057

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Source: Andhra Pradesh state portal

PHYSICAL INFRASTRUCTURE – ROADS

Source: Andhra Pradesh state portal

Road network across the state

AUGUST 2015

23 23

The state is well connected through the rail network. Visakhapatnam, the largest city in the state, has rail accessibility to nine district headquarters out of 13 in the new state. The city is also well connected to the neighbouring states of Odisha and Chhattisgarh. The state is also planning to form a separate railway zone, namely South Coast Railway, with Vizag as its headquarter. Vizag is proposed to be the headquarter of the zone as the region houses major industrial as well as commercial establishments and is a busy railway junction in terms of passenger and freight traffic. The new zone will consist of Waltair Division of the East Coast Railway (ECoR) as well as Vijayawada, Guntur and Guntakal divisions of South Central Railway. The government has also planned to set up a high speed train between Hyderabad and the new capital city to ease traffic movement between the two states.

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

PHYSICAL INFRASTRUCTURE – RAILWAYS & METRO RAIL

The Union Government has also planned to develop metro rail projects at three locations in the state, including Visakhapatnam, Guntur and Vijayawada. The Visakhapatnam project, estimated to cost US$ 833.3 million, will develop four important routes that are not well connected currently.

Source: Maps of India

Rail network across the state

AUGUST 2015

24 24

Andhra Pradesh has eight operational airports/air strips at Visakhapatnam, Tirupati, Rajahmundry, Vijayawada, Bobbili, Nagarjuna Sagar and Puttaparthi. Apart from these, Donakonda airport is non-operational (closed) whereas four are under development in Nellore, Kurnool, Ongole and Kadapa. Visakhapatnam, also popular as Vizag, has an international airport, which is under the Navy's command.

Source: Andhra Pradesh state portal, Airports Authority of India

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

PHYSICAL INFRASTRUCTURE – AIRPORTS

Airports across the state

AUGUST 2015

Airport statistics 2014-15

Passenger traffic-Tirupathi airport 245,049 Nos

Passenger traffic-Hyderabad airport 10,404,353 Nos

Passenger traffic-Visakhapatnam airport 1,099,480 Nos

Aircraft movement-Tirupathi airport 2,985 Nos

Aircraft movement-Hyderabad airport 94,057 Nos

Aircraft movement-Visakhapatnam airport 11,445 Nos

Cargo handled-Tirupathi airport 6.0 tonnes

Cargo handled-Hyderabad airport 98,899 tonnes

Cargo handled-Visakhapatnam airport 2,812 tonnes

25 25

Andhra Pradesh has a 974 km long coastline and the second highest cargo handling port. The Visakhapatnam port ranks amongst the top five of 13 major ports in the country. During 2014-15, it handled 55.56 million tonnes of cargo. Coking coal, iron ore, petroleum products and thermal coal are some of the key products handled by the port. It also has a high volume of container traffic. Other than Visakhapatnam, the state has five more operational ports. Apart from these, seven more ports are under development and three are proposed to be developed. The extension of the existing container terminal and the modernisation and upgrading of the iron ore handling complex will enable the port to increase its cargo handling capacity in the near term. The first project, estimated to cost over US$ 100 million, has been awarded to the Visakha Container Terminal Private Ltd and the second, estimated to cost US$ 137.5 million, was awarded to Essar Ports.

Source: Port of Visakhapatnam, *Until March 2015

Visakhapatnam port traffic (million tonnes)

For updated information, please visit www.ibef.org

PHYSICAL INFRASTRUCTURE – PORTS

ANDHRA PRADESH THE RICE GRANARY OF INDIA

AUGUST 2015

64,0 66,0 68,0 67,0 59,0 58,5 55,5

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

2014

-15*

26 26

As of June 2015, Andhra Pradesh had a total installed power generation capacity of nearly 20,745^ MW. Andhra Pradesh alone accounts for a installed capacity of 11,275.29 MW. Out of this state utility contributes 4,897.40 MW, private utilities contributes 4,836.12 MW and central contributes 1,541.76 MW. Thermal power is the major contributor in the installed capacity of the state with 7,480.13 MW followed by renewable energy with 1,946 MW. The state has nine hydro power projects under operation and one under development. Moreover, the state has one operational wind power project. Most of the coal based power plants are located in the coastal regions because of their connectivity to the ports. The state also has three thermal power projects under operation, two projects under development and two projects under construction. Per capita consumption of electricity in Andhra Pradesh stood at 702.3 kWh during 2014-15. The state is planning to add another 8,400 MW power by 2017. In July 2015, ReNew Power established a joint venture with Chinese solar power company Hareon Solar for the development of a 72 MWsolar power project in Andhra Pradesh.

Source: Central Electricity Authority *As of June 2015 based on Business Line citation

^Including Telangana

Installed power capacity (MW)

For updated information, please visit www.ibef.org

PHYSICAL INFRASTRUCTURE – POWER

ANDHRA PRADESH THE RICE GRANARY OF INDIA

AUGUST 2015

11.639 13.409

15.036 16.095 16.949 17.495

20.745

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

27 27

Source: www.sezindia.nic.in SEZ: Special Economic Zone

Name/Developer Location Primary industry

Andhra Pradesh Industrial Infrastructure Corporation Ltd Vishakhapatnam Multi-product, IT/ITeS

Brandix India Apparel City Private Ltd Achutapuram, Visakhapatnam Textile

Ramky Pharma City Pvt Ltd Mandal, Visakhapatnam Pharmaceuticals

Divi’s Laboratories Chippada Village, Visakhapatnam Pharmaceuticals

Apache SEZ Development India Mandal Tada, Nellore Footwear

Hetero Infrastructure Nakkapalli Pharmaceuticals

Parry Infrastructure Kakinada Food processing

Andhra Pradesh Industrial Infrastructure Corporation Ltd East Godavari IT/ITeS

IFFCO Kisan SEZ Nellore Multi product

Bharatiya International SEZ Nellore Leather sector

Andhra Pradesh Industrial Infrastructure Corporation Ltd Nellore Multi product

Some of the operational SEZs in Andhra Pradesh

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

DEVELOPMENT PROJECTS: SEZs … (1/2)

Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is the agency responsible for the supervision and execution of SEZs in the state.

As of March 2015, the state has 29 operational SEZs in the state across diversified sectors which include textiles and apparel, food processing, footwear and leather products, multi-product, pharma, IT SEZs etc.

AUGUST 2015

28 28

Source: www.sezindia.nic.in

Name/Developer Location Primary industry

South Coast Infrastructure Development Co of Andhra Pradesh Private Ltd (SCIDCAP)

NH-5 between Prakasam and Nellore District

Building materials

Lepakshi Knowledge Hub Private Ltd Ananthapur Multi-product

M/s Drugs & Pharmaceuticals Manufactures Association

Nakkapalli Mandal, Visakhapatnam Pharmaceuticals /APIs/formulations

M/s Vivimed Labs Ltd Boyapalem, Naruva & Chittivalasa

villages, Ranasthalam Mandal, Srikakulam

Chemicals & pharmaceuticals

M/s Planet SEZ Private Limited Visakhapatnam Petroleum and oil & gas

industry

SEZs with valid in-principle approvals

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

DEVELOPMENT PROJECTS: SEZs … (2/2)

Andhra Pradesh has four SEZs with valid in-principle approvals and 33 SEZs with formal approvals, as of March 2015.

AUGUST 2015

29 29

Project name Sector Project cost (US$ million)

Stage

Design construction finance operation maintenance of 2 lane bridge across Musi river of Miryalguda Kodad Road including

approa Roads and bridges 2.4 Under construction

Integrated solid waste management (3800 TPD) for Hyderabad

Solid waste management 148.8 Under construction

Vodarevu Nizampatnam ports and port based corridor development

Ports (excluding captive) 2787.0 Under construction

Family entertainment center and 3 Star hotel canal guest house at Vijayawada

Tourism 6.6 Under construction

Bay park at Rushikonda Visakhapatnam Tourism 6.3 Under construction

Dispensary site at Maddilapalem Common infrastructure for

industrial parks, SEZ 2.0 Under construction

Machilipatnam port development Ports (excluding captive) 263.8 Under construction

Five star hotel Shilparamam Madhapur Hyderabad Tourism 39.3 Under construction

Golf course at Shamirpet RR district Tourism 9.5 Under construction

SPA hotel and training centre in beauty care and hospitality management

Tourism 16.6 Under construction

Three star hotel with health spa project Tourism 8.3 Under construction

Source: Department of Economic Affairs, Government of India, Converted using flat exchange rate of INR 60.28/US$

For updated information, please visit www.ibef.org

KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS

ANDHRA PRADESH THE RICE GRANARY OF INDIA

AUGUST 2015

30 30 For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Two new NIMZs

• During the tenure of the last central government, the state received ‘in-principle’ approval from the government for setting up two National Investment and Manufacturing Zones (NIMZs) in Chittoor and Prakasam districts.

• The state will develop NIMZs as integrated industrial townships, with state of the art infrastructure and land use on the basis of zoning, clean and energy efficient technology, necessary social infrastructure and skill development facilities.

• They are expected to attract investment of around US$ 10 million and would have an employment potential of 0.3 million each.

DEVELOPMENT PROJECTS: INVESTMENT AND MANUFACTURING ZONES

New capital city and 10 smart cities

• The state government is planning to set up the new capital for the state between Vijayawada and Guntur, which will be based on the draft master plan by International Enterprise Singapore.

• Moreover, in September 2014, the government announced plans to develop 3 mega cities and 14 smart cities across the state as part of the decentralised development agenda.

Industrial corridors

• The proposed Visakhapatnam-Chennai industrial corridor is expected to attract investments of US$ 16.7 billion and will create more than 50,000 jobs.

• This will be developed in two or three phases spanning more than 15 years. • Moreover, Visakhapatnam has been included in the upcoming Chennai-Bangalore

Industrial Corridor. • The former will provide a thrust to industrial development across various districts and

villages in the state along the stretch of the corridor, whereas the latter will lead to development across Anantapur, Chittoor and Nellore.

AUGUST 2015

31 31

Telecom infrastructure (as of May 2015)

Wireless subscribers 71,578,461

Wire-line subscribers 1,845,876

Broadband subscribers^ 4,810,000*

Telephone exchanges^ 4,314

Public Call Offices (PCOs)^ 128,776

Source: Telecom Regulatory Authority of India, India Post *As of March 2014

^For undivided Andhra Pradesh BSNL: Bharat Sanchar Nigam Limited

According to the Telecom Regulatory Authority of India (TRAI), undivided Andhra Pradesh had nearly 71.5 million wireless subscribers and 1.8 million wireline subscribers as of May 2015.

According to the Department of Telecommunications, Government of India, the undivided state had 4,314^ telephone exchanges and 128,776^ public call offices (PCOs) as of May 2015.

The overall tele-density in undivided Andhra Pradesh stood at 75.8^ per cent as of May 2015.

Optical fibre cable networks of BSNL with 44,500^ km, Reliance with 6,000^ km, Bharat with 3,450^ km and Tata with 1,700^ km provide a wide range of communication networks to Andhra Pradesh.

As of May 2015, there were 18,098^ post offices in the state.

BSNL announced that there will be no charge of inter-state roaming between Telangana and Seemandhra until 2024.

In 2024 when the licensing of spectrum ends, a new spectrum auction would be conducted for the two states and the norms would be set at that time for inter-state roaming.

For updated information, please visit www.ibef.org

PHYSICAL INFRASTRUCTURE – TELECOM

ANDHRA PRADESH THE RICE GRANARY OF INDIA

In August 2015, Xiaomi established a tie up with Foxconn for the assembling of smartphones in Sri City, an industrial park in Chittoor district of Andhra Pradesh.

AUGUST 2015

32 32

Classes Number of schools (2013-14)

(I-V) 42,440

(I-VII/VIII) 8,964

(I-XII) 178

(I-X) 976

(VI-X) 10,674

Andhra Pradesh has a literacy rate of 67.4 per cent, according to provisional data released by Census 2011. During 2013-14, 8.1 million students were enrolled in 60,659 schools. There were 40,929 primary schools, 9,575 upper primary schools, 9,994 high schools and 161 higher secondary schools. The total number of teachers reached 104,047. In medical education, Andhra Pradesh has 21 medical colleges with eight in the government sector. Andhra Pradesh has 20 state run universities, with 10 in the coastal Andhra region and the other 10 in the Rayalaseema region. The State Reorganisation Act has ensured the retention of existing admission quotas in educational institutions for a period of 10 years. In order to provide equal benefits to the students of the newly formed states, the government has given its nod to set up an IIT, an IIM, three central universities, an IISER and an IIIT among other institutes in Andhra Pradesh.

For updated information, pl*ease visit www.ibef.org

SOCIAL INFRASTRUCTURE – EDUCATION

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Course Number of colleges

(2013-14)

Number of students enrolled

Junior colleges 3,337 886,762

B Ed training colleges 365 39,049

Engineering 330 90,588

Pharmacy colleges 120 11,040

MBA colleges 387 224458

Polytechnics 163 48,980

Source: Commissioner & Director of School Education, Andhra Pradesh state portal

AUGUST 2015

33 33

Major hospitals

Apollo Hospital

Care Hospital

Manipal Hospital

Krishna Institute of Medical Sciences

Source: Andhra Pradesh state portal, *Per thousand persons, **Per thousand live births

Health indicators (2014-15)

Birth rate* 17.4

Infant mortality rate** 39

Medical facilities (2013-14)

Hospitals 460

Primary health centres 1,624

Dispensaries 1837

Regular doctors 6,,087

Contract doctors 876

Beds available 41,765

As of 2013-14, Andhra Pradesh had 1,624 primary health centres and 41,675 beds. State also had 280 allopathic hospitals as of 2013-14. Moreover, the state also had three ayurvedic hospitals and three homoeopathic hospitals. Recently, various super-specialty hospitals are coming up across the state mainly in the coastal area of Vijayawada. The city is anticipated to become the largest destination for medicare in coastal Andhra. Various hospitals are planning to set up operations in the state and some are in the process of expanding their existing facilities. This includes doubling of bed strength by The Krishna Institute of Medical Science and setting up of three hospitals comprising of 800 beds by Apollo Group. Moreover, a central government funded health institute, similar to All India Institute of Medical Sciences, is expected to come up in Vijayawada. The government has already sanctioned US$ 200 million as the first instalment for the purpose and another US$ 48.7 million has been sanctioned for the development of all the hospitals in Krishna district. The GVK Group is planning a specialty hospital and medical college in Sri City multi-product economic zone, Andhra Pradesh.

For updated information, please visit www.ibef.org

SOCIAL INFRASTRUCTURE – HEALTH

ANDHRA PRADESH THE RICE GRANARY OF INDIA

AUGUST 2015

34 34

Stadiums and sports complexes in Visakhapatnam

Aqua Sports Complex

Port Trust Golden Jubilee Stadium

South Eastern Railway Stadium

Police Stadium

Indira Priyadarshini Stadium

Steel Plant Township Stadium

Zinc Stadium

GITAM Engineering College Synthetic Tennis Court

ACA-Visakhapatnam District Cricket Association's Stadium

Golden Jubilee Indoor Stadium

Swarnabharathi Indoor Stadium

GITAM Indoor Sports Stadium

Andhra University Grounds

There are several sports complexes in the state spreading across Visakhapatnam, Tirupati and other cities. Although cricket and tennis are the major sports, other games are also popular. Visakhapatnam has seven cricket stadiums which are used for Ranji Trophy matches whereas a few of them are also used for one day international matches. The city has a golf course named the East Point Golf Club. The Tirupati temple and Kanakadurga temple makes the state one of the leading religious tourism spots in the country. Moreover, the project for developing the beach corridor from Visakhapatnam to Bhimili is progressing rapidly and tenders have been called for development of RK Beach and Rishikonda. Furthermore, the state’s long coastline offers high potential to develop beach resorts that can turn into tourist hotspots. Other revenue generating tourist hotspots of the state include the Buddhist sites in Krishna and Guntur districts and the Chandragiri Fort in Chittoor.

For updated information, please visit www.ibef.org

SPORTS AND CULTURAL INFRASTRUCTURE

ANDHRA PRADESH THE RICE GRANARY OF INDIA

AUGUST 2015

35 35

In September 2014, Andhra Pradesh government proposed to develop 14 smart cities. Major towns which are anticipated to be developed as smart cities are Kakinada and Rajahmundry Srikakulam, Vizianagaram, Guntur, Nellore, Prakasam, Anantapur and Kurnool. Additionally Kadapa town would be developed into Industrial smart city. Water supply, solid waste management, sewerage, multimodal transport, cyber connectivity, roads, airports, railways and social infrastructure are the key aspects of the smart city project in Andhra Pradesh. In Andhra Pradesh majority of the proposed smart cities are located in special investment regions or special economic zones with reformed regulations and tax structures which makes it highly attractive for foreign investments. In January 2015, the state government of Andhra Pradesh announced to set up its own smart cities. Government of India is planning to invest US$ 115 billion for the development of 100 smart cities across the country till 2022. Out of these, 46 cities and towns are from Telangana and Andhra Pradesh. In August 2014, the Andhra Pradesh state government sent a list of few cities for inclusion in the Centre's smart city project. The state government has decided to set up its own smart cities in the areas of Krishna and Guntur, Tirupati and Rajahmundry.

In order to convert Andhra Pradesh into a impeccably smart state, the state government has laid out few plans such as a five-grid network, mission-mode administrative initiatives, new-age university and institutions and a 21st century capital city. In the similar direction the state government is also taking actions towards energy, gas, farming and IT sectors for the effective development of 21st century capital city. Apart from the development of smart cities, state government is also planning to build or convert villages, universities, institutes of higher learning and R&D institutions in a smarter way.

For updated information, please visit www.ibef.org

SMART CITY … (1/2)

ANDHRA PRADESH THE RICE GRANARY OF INDIA

AUGUST 2015

Source: TechSci Research & news articles

36 36 For updated information, please visit www.ibef.org

Increasing investments towards smart cities and capital city are expected to create strong growth opportunities for various sectors such as power, water, oil & gas, transportation infrastructure and optical fibre communications. Under optical fibre grid, connectivity of the optical fibre is expected to reach all households in every village and the road grid is anticipated to connect with every village and port. Under the water grid, the government is planning to avail separate pipelines for industry, agriculture and domestic consumption. Under the gas grid, the resources from Krishna Godavari Basin (KG-basin) and other gas resources would be transported to every industry and every household for LPG and CNG. The state has already been sanctioned an LNG terminal in 2014, which will be set up by Petronet LNG Ltd. Andhra Pradesh state government announced plans to construct the new capital city of Andhra Pradesh on the southern side of Krishna river (near Vijayawada). The master plan for the construction has been submitted by International Enterprise Singapore (IES). The state government represented the capital city area as a production and trading hub in various sectors such as IT, ITes, electronics, auto and agriculture-processing. Vijayawada is represented as the business and trading hub in IT, ITeS, electronics, auto and agriculture processing, whereas, Guntur as an agriculture, processing and textile trading hub.

ANDHRA PRADESH THE RICE GRANARY OF INDIA

SMART CITY … (2/2)

AUGUST 2015

Source: TechSci Research & News Articles

37 37 For updated information, please visit www.ibef.org

INDUSTRIAL INFRASTRUCTURE

ANDHRA PRADESH THE RICE GRANARY OF INDIA

AUGUST 2015

Location of Industrial Cluster Type of Cluster No of Acres Project Cost (US$ Million)

Makavaripalem-Visakhapatnam Aluminum & General Engineering cluster 111.44 4.6195

Kopparthi-Kadapa Engineering Cluster 87.48 3.582917

Gandrajuaplli-Chittoor Silk & Garments cluster 100 6.642183

Peddapuram-E.G Distt Traditional Food cluster 20.6 1.710367

Mangalagiri-Guntur Distt General Engineering Park 51.83 4.2292

Machilipatnam-Krishna Distt Upgradation of existing Imitation Jewellery park 43 2.548383

Palakollu-W.G. Distt Upgradation of existing Coir park 12.24 1.251467

Palasa-Srikakulam Distt Upgradation of existing Cashew park 31.61 1.0943

Source: APIIC, *US$ 1= INR 60

Andhra Pradesh Industrial Infrastructure Corporation filed the applications on line with Development Commissioner – MSME for the following 10 Industrial clusters for in principle approval / Government of India grant.

38 38

Andhra Pradesh accounts for 2 per cent of the country’s IT export turnover and about 1.8 per cent of the employment by June 2014. The government is planning to make the state an IT power house in the coming years. According to an announcement made by the Minister for Information Technology in July 2014, Visakhapatnam is set to be developed into the ‘IT capital’ of the state. Madhurawada, located in the north-east of Visakhapatnam, has already been developed as an IT hub. Various IT firms have been allocated land in this area to develop and start their operations while few of them are already operational. Big brands such as IBM, Tech Mahindra and Wipro already operate in Vizag. Moreover the city has close to three universities which produce more than 35,000 IT graduates every year. As part of the state government's commitment to transform Vizag into a major IT hub, lands have been allocated to three major companies.

For updated information, please visit www.ibef.org

KEY INDUSTRIES – IT AND IT-ENABLED SERVICES … (1/4)

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Source: Andhra Pradesh IT department, News articles

These include allocation of an SEZ to Wipro, 10 acres to Tech Mahindra & 13 acres to Society for Applied Microwave Electronics Engineering and Research. Apart from Visakhapatnam, cities such as Vijayawada, Tirupati, Kakinada and Anantapur will also be developed into IT hubs.

AUGUST 2015

39 39 For updated information, please visit www.ibef.org

Source: News articles

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Proposed ITIRs • Andhra Pradesh government is planning to set up Information Technology Investment

Regions (ITIR) in Visakhapatnam, Anantapur, Vijayawada, Tirupati, Kakinada and Chittoor districts.

Visakhapatnam ITIR • A detailed report on the proposed Visakhapatnam ITIR, which would spread across

12,000 acres, has been prepared and submitted to the state government and is expected to be implemented over a period of 25 years in two phases.

Tirupati/Anantapur/ Nellore ITIR

• Another ITIR is proposed to be set up across 4,000 acres of land near the international airport at Tirupati, 4,000 acres of land at Anantapur, near Karnataka border and another 4,000 acres at APIIC’s industrial corridor of Chittoor-Nellore.

KEY INDUSTRIES – IT AND IT-ENABLED SERVICES … (2/4)

Investment potential of US$ 40.4 billion from

Vizag

• The state expects the Visakhapatnam ITIR project to have an investment potential of US$ 7.5 billion and revenue of US$ 6.2 billion.

• Direct and indirect employment generated from the project is estimated at 0.43 million and 1.71 million, respectively, once it is fully functional.

AUGUST 2015

40 40 For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

KEY INDUSTRIES – IT AND IT-ENABLED SERVICES … (3/4)

In 2013-14, IT exports from Andhra Pradesh stood at nearly US$ 4,931 million and employ nearly 18,440 people. In order to increase the contribution of IT exports and employment from Seemandhra, the state has drafted a guideline to address the key determinants of successful growth in the IT and electronics sectors.

Parameter Contribution from Seemandhra

Exporting units registered with STPI 27

Export turnover of STPI units (US$ million) 122.8

Employment ('000s) 4

Major indicator Goal to be achieved by 2020

Make all government to citizens and government to business services available online and on mobile

To attain number one position in ‘eTAAL’ by 2017 and maintain it through 2020

Share in the national IT exports 5 per cent

Investments in IT US$ 2 billion by 2017 & US$ 5 billion by 2020

Investments in electronics manufacturing US$ 5 billion by 2017 and US$ 10 billion by 2020

Employment created in electronics and IT 0.3 million by 2018 and 0.5 million by 2020

Broadband penetration Gigabit connectivity to all gram panchayats by 2017 and to all villages by 2020

Source: Andhra Pradesh IT vision

AUGUST 2015

41 41

Tech Mahindra

IBM

Wipro

For updated information, please visit www.ibef.org

• Tech Mahindra, part of Mahindra Group conglomerate and headquartered at Mumbai, provides information technology, networking technology solutions and business support services to the telecommunications industry. The company, having operations in Visakhapatnam, merged with Mahindra on March 21, 2012 and together the new entity serves 540 corporate customers across 49 countries. The company reported a revenue of US$ 3.2 billion financial year 2014-15.

• IBM is a leading global IT services and solutions provider, with operations in over 170 countries across the world. Products offered by the company’s Indian operations include software, storage, systems and servers and semiconductors. IBM has been present in India since 1992. Since inception, IBM in India has expanded its operations considerably, with regional headquarters in Bengaluru and presence in over 200 cities and towns across the country; including a global delivery centre in Visakhapatnam.

• Established in 1945, Wipro ventured into the IT services industry in the 1990s. The company was among the pioneers in developing the Offshore Development Centre concept in India. In order to focus on core IT business, it separated its non-IT businesses into a separate entity named Wipro Enterprises Limited with effect from 31 March 2013. Currently, the former company provides information technology, consulting and outsourcing services to over 900 clients across more than 175 cities across 6 continents. In 2012, the company opened a delivery centre in Vishakhapatnam. The company has an employee base of 146,053 and posted revenues of US$ 6.9 billion during financial year 2014-15.

ANDHRA PRADESH THE RICE GRANARY OF INDIA

KEY INDUSTRIES – IT AND IT-ENABLED SERVICES … (4/4)

AUGUST 2015

42 42

Andhra Pradesh is home to many global and national pharma players; various companies have set up their manufacturing hubs in Visakhapatnam and Srikakulam districts. Parawada, Nakkapalli, Pydibhimavaram and Ranasthalam are the largest pharma manufacturing centres in the state that have attracted several investments, particularly in bulk drug sector. While Parwada and Nakkapali are located in Vishakapatnam, the other two are located in Srikakulam. Jawaharlal Nehru Pharma City, an integrated industrial park located in Visakhapatnam, has various bulk drug manufacturers, pharmaceutical companies and fine chemical manufacturers, with nearly 45 pharmaceutical companies. The state provides ample opportunities for pharma companies due to availability of ports, pharma city, international airport, large parcels of land for expansion and good effluent treatment facilities. Various global pharma companies have already set up their manufacturing hubs across the state which include Japanese and US giants such as Eisai, Ajinomoto, Mylan and Hospira.

For updated information, please visit www.ibef.org

KEY INDUSTRIES – PHARMACEUTICALS … (1/2)

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Some of the key players

• Eisai • Granules India • Hospira • Dr Reddy's Laboratories • Aurobindo Pharma • Mylan • Omnichem

Few of the national players to set up their manufacturing hubs in the state include Dr Reddy's Laboratories, Aurobindo Pharma, Hetero Drugs etc. A 40-member high level team has been set up by the state government to provide directions to new investments in the pharmaceuticals sector. In August 2015, the state government of Andhra Pradesh has announced that the US-based pharma company Mylan is planning to invest US$ 5 billion in Andhra Pradesh.

Source: News articles

AUGUST 2015

43 43

Aurobindo Pharma Ltd

Dr Reddy's

Laboratories

Mylan Laboratories Ltd

Granules India Ltd

For updated information, please visit www.ibef.org

• Founded in 1986, Aurobindo Pharma is an India based pharmaceutical manufacturing company. The company, which manufactures generic pharmaceuticals and active pharmaceutical ingredients, markets these products across 125 countries. The company has a manufacturing plant in Vizag. During 2014-15, the company reported revenues of US$ 1.3 billion.

• Incorporated in 1984, Dr Reddy's Laboratories manufactures and markets a wide range of pharmaceuticals across domestic and overseas markets. The company’s products include generic formulations, APIs, bio-similars etc. It has expanded its presence across the globe through steady organic growth, partnerships and acquisitions. During 2014-15, the company reported revenues of US$ 1.6 billion.

• Mylan Laboratories Ltd (formerly known as Matrix Laboratories Ltd) is a subsidiary of US-based Mylan Inc and has one USFDA-approved facility in Visakhapatnam. It is one of the world’s largest manufacturers and suppliers of active pharmaceutical ingredients (APIs) for a wide range of therapeutic categories including antibacterials, central nervous system agents, antihistamine/anti-asthmatics, cardiovasculars, antivirals, antidiabetics, antifungals, proton pump inhibitors and pain management drugs.

• Granules India is a Indian pharmaceutical company with manufacturing facilities spreading across India and China. The company serves customers across 60 countries with four facilities in India, which includes Vizag and a fifth facility in Jingmen, China. The company recently acquired Auctus Pharma and is looking towards further expansion of its business through both organic and inorganic routes.

ANDHRA PRADESH THE RICE GRANARY OF INDIA

KEY INDUSTRIES – PHARMACEUTICALS … (2/2)

AUGUST 2015

44 44

Andhra Pradesh produces medium grade and superior long staple varieties of cotton. During 2014-15, the state produced nearly 1,543 thousand tons of cotton. Few of the major cotton producing districts in the state include Vizianagaram, East Godavari, Guntur, Prakasam and Kurnool. The undivided Andhra Pradesh government has identified the textile sector as one of the long term growth engines. To utilise the potential of the sector, the government has established five Apparel Export Parks (AEPs) and seven textile parks. It has proposed to establish a few more AEPs and textile parks in the state. There are over 150 spinning mills including a number of 100 per cent export oriented units with state-of-the-art machinery; producing cotton, synthetic and blended yarns in the undivided state. Between April 2006 and February 2012, 55 handloom clusters were sanctioned under the Integrated Handlooms Development Scheme in the Seemandhra and Telangana regions.

For updated information, please visit www.ibef.org

KEY INDUSTRIES – APPARELS AND TEXTILES

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Source: Andhra Pradesh Socio-Economic Survey 2013-14, News articles,

In 2015, state government plans to set up two mega handloom clusters with an investment of US$ 16.5 million in each of them at Mangalagiri and Chirala in the state.

Andhra Pradesh has emerged as a large textile processing centre. There are nearly 100 mills in the state, with coastal Andhra having a lion’s share.

Handloom and textile exports for undivided Andhra Pradesh (in US$ million)

AUGUST 2015

151 272

148

340 404 490

793

1.002,00 1.152,30

FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15

CAGR 28.9%

45 45

199,9 199,3 286,5

565,7 623,1

1,269.0

2008-09 2009-10 1010-11 2011-12 2012-13 2013-14*

The presence of rich climatic and soil conditions is expected to make Seemandhra a major agricultural belt. Few of the leading crops produced in the state include rice, chilly, oilseeds, cotton, pulses and gram. The state’s Krishna, Guntur, East and West Godavari districts have good irrigation facilities which help it to produce a large amount of rice. The state produced 6.86 million tonnes of rice, 1.1 million tonnes of pulses, 1.98 million tonnes of oil seeds and 1.54 million tonnes of cotton during the financial year 2014-15. The districts of Nellore, Krishna and Guntur are very fertile, with above average production of cereals, pulses, groundnut and cotton.

For updated information, please visit www.ibef.org

KEY INDUSTRIES – AGRI AND PROCESSED FOOD SECTOR … (1/3)

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Source: Vizag Industrial Scan – Industrial newspaper, Andhra Pradesh state portal,

*Till November 2014

CAGR 44.7%

Seafood exports from Andhra Pradesh (in US$ million)

AUGUST 2015

46 46

Australia has a plan to invest in the state to develop it as the marine processing hub of the country as a part of which, it has invited the ministry to attend the seafood convention in Perth in October 2015. In 2013-14, undivided AP claimed the highest record in fish production with 20 lakh tonnes and contribution of 17.68 lakh tonnes by AP alone. The state government proposed to set up a fish landing centre at West Godavari district with an estimated cost of US$ 2.6 million. The state government has proposed to set up an aqua park at Bhimavaram in 60 acres with an investment of US$ 58.7 million.

For updated information, please visit www.ibef.org

KEY INDUSTRIES – AGRI AND PROCESSED FOOD SECTOR … (2/3)

ANDHRA PRADESH THE RICE GRANARY OF INDIA

AUGUST 2015

47 47

Mondelez India Foods Ltd

Cargill India Pvt Ltd

ITC

Andhra Pradesh Dairy Development Cooperative

Federation (APDDCF)

For updated information, please visit www.ibef.org

• Mondelez India Foods Ltd is part of Mondelēz International, Inc. It operates in five categories – chocolate confectionery, beverages, biscuits, gum and candy. The company’s key brands in India include Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, Éclairs, Bubbaloo, Tang and Oreo. The company is planning to launch a Cadbury chocolate production plant in Chittoor district with an estimated cost of US$ 166.7 million and would commence production from mid 2015.

• Cargill maintains a number of businesses in India, with operations including handling and processing of a wide range of products such as refined oils, grain and oilseeds, sugar, cotton and animal feed. Cargill’s presence in India has been growing since it began a joint venture (JV) operation in 1987. In 2006, it entered into a JV and subsequently took over a leading shrimp feed manufacturing farm in Rajahmundry. It has also entered into a JV with EID Parry for a sugar refinery at Kakinada in the state.

• ITC is a large Indian business conglomerate with diverse business interests including agri-foods, paper, fast moving consumer goods, lifestyle and retailing and hotels. Over 2013-14, its revenue was around US$ 5.9 billion. A substantial part of ITC’s agri-business is located in Andhra Pradesh. The company has a unit in Anaparti and Chirala, and a research centre in Rajamundhry. The company also runs its innovative internet based “e-Choupal” initiative in the state for the benefit of farmers.

• APDDCF runs 12 dairy plants and manufactures milk products under the Vijaya brand. These plants together have a production capacity of 2,437 thousand litres per day. Products include butter, ultra-high-temperature (UHT) milk, milk powder, ghee, flavoured milk, khoya, kulfi and processed cheese. It is one of the 15 dairy cooperatives operating under the National Dairy Development Board (NDDB). It ensures MSP to the farmers and timely pick up of milk.

ANDHRA PRADESH THE RICE GRANARY OF INDIA

KEY INDUSTRIES – AGRI AND PROCESSED FOOD SECTOR … (3/3)

AUGUST 2015

48 48

Andhra Pradesh is known for its pristine beaches, sacred places of worship, lush green forests, spicy cuisine and hospitable people. The state continued to witness increase in domestic tourist arrivals over the last few years. Number of tourist increased to 131.7 million in 2014 from 104.2 million recorded in 2010. Most of the tourist destinations in the state are concentrated in Visakhapatnam, Simhachalam, Araku and the beaches of East and West Godavari. Tirupati and Bhadrachalam are major temple destinations attracting a large chunk of travellers. Puttaparthi and Srikalahasti are the upcoming tourist destinations after the bifurcation of the state. Few of the prospective locations that can be developed for tourism include the backwaters of Konaseema, beach resorts along the long coastal line, the Buddhist sites in Krishna and Guntur districts and the Chandragiri Fort in Chittoor.

For updated information, please visit www.ibef.org

KEY INDUSTRIES – TOURISM

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Source: Ministry of Tourism, Government of India; News articles AP State Portal

Arrival of domestic tourists in Andhra Pradesh (in million)

The Tourism Corporation has already initiated the process and is working towards the development of a beach corridor from Visakhapatnam to Bhimili which includes the RK Beach and Rishikonda. Moreover, wild life tourism can be developed at Pulikat Lake in Nellore and the Kolleru Lake in Krishna and West Godavari districts.

AUGUST 2015

104,2 103,6 115,0

123,4 131,7

2010

2011

2012

2013

2014

49 49

According to the Director General of Hydrocarbons (DGH), Andhra Pradesh has huge oil and natural gas reserves. The state’s Krishna-Godavari basin, spread over an area of nearly 52,000 sq km, has a total hydrocarbon resource base of 1,130 million metric tonnes. Andhra Pradesh is the second Indian state, after Gujarat, to enter the oil and gas exploration and production segment through bids for oil and gas blocks under the central government’s New Exploration Licensing Policy (NELP). The Andhra Pradesh government decided to enter the oil and gas exploration and development sector and set up a Special Purpose Vehicle (SPV), the Andhra Pradesh Gas Infrastructure Corp Limited (APGIC), as a joint venture between two state owned entities. The infrastructure provider for industries in the state, Andhra Pradesh Industrial Infrastructure Corporation (APIIC), owns 51.0 per cent in the SPV and the remaining is held by AP Genco. APGIC secured four blocks under auction as part of a consortium led by ONGC. APGIC owns 10 per cent in the consortium, while other partners ONGC, British Gas and Oil India hold 40 per cent, 35 per cent and 15 per cent, respectively. Recently, the DGH has earmarked a stretch of more than 39,000 sq km in Kadapa district in Rayalaseema region as a potential exploration site for natural resources. This region is most likely to be lined up for bidding in the upcoming rounds of NELP. The newly elected government of the state is committed to make the state one of the top 20 places for work and business with easy clearances and less hindrances, as oil and gas is a top priority in the Make in India initiative of newly elected PM Mr Narendra Modi. For updated information, please visit www.ibef.org

KEY INDUSTRIES – PETROLEUM, CHEMICALS AND PETROCHEMICALS … (1/2)

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Source: Ministry of Petroleum and Natural Gas, News articles

AUGUST 2015

50 50

In May 2014, the Visakhapatnam-Kakinada Petroleum, Chemical and Petrochemical Investment Region Special Development Authority (VK- PCPIR SDA) has developed and released the final draft master plan and zonal development plans with the land use proposals. The plan has been submitted to the state government. The PCPIR project would boost refining, petrochemicals and chemical industries and also the manufacturing sectors in the state. During 2014-15, a petro chemical complex has been proposed to be developed with an estimated cost of US$ 6.6 billion between Vizag-Kakinada. The project will bring investment in the state and will help to boost trade and exports, develop infrastructure and increase employment. HPCL is considering the setting up of a greenfield 15 mmtpa refinery-cum-petrochemical complex in the region which would require investments to the tune of US$ 10-12 billion. Moreover, the company is about to expand capacity at its refinery in Visakhapatnam from the current 8.3 mmtpa to 15 mmtpa over 3 to 4 years with an investment of US$ 0.9 billion. In 2015, Andhra Pradesh has signed an MoU with Kuwaiti firm, Al Qebla Al Watya Inc. to set up a petroleum refinery.

For updated information, please visit www.ibef.org

KEY INDUSTRIES – PETROLEUM, CHEMICALS AND PETROCHEMICALS … (2/2)

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Source: Andhra Pradesh PCPIR MMTPA: Million Metric Tonnes Per Annum

Major investors in PCPIR

Key features of PCPIR

The investments generated in the PCPIR are estimated to be around US$ 72.3 billion.

Total area 640 sq km; Processing area 270 sq km

The project is said to have an employment generation capacity of 1.2 million

As per the latest update, total committed investments stood at US$ 57.2 billion

The petroleum and petrochemical sector accounted for around 63 per cent of total committed investment.

AUGUST 2015

51 51

Andhra Pradesh is one of the leading producers of various minerals such as chrysotile asbestos, barytes, mica, felspar, vermiculite, quartz, laterite, silica sand, dolomite and limestone. The state accounts for 94% barytes, 78% Kyanite, 61% ball clay, 70% corundum, 6% diamond, 42% calcite, 41% mica, 26% garnet, 23% ilmenite, 20% limestone and 15% dolomite resources of the country. India had 3,722 mines in 2013-14, out of which 661 were accounted for by Andhra Pradesh. Seemandhra is rich in mineral resources which include manganese, limestone, mica, steatite, copper, graphite etc. Manganese ore is located across Nellore, Prakasam, Vizianagaram and Srikakulam, mica is found around Krishna, Nellore, Visakhapatnam etc. whereas limestone is found around Kadapa district.

Seemandhra region has abundant reserves of uranium in Tumalapalli village located in Kadapa. According to a study conducted by the Atomic Energy Commission of India, the mine is expected to have the largest reserves of uranium in the world. The Government of India has started exploration of sizable uranium deposits in YSR district in Andhra Pradesh through M/s. Uranium Corporation India Ltd, a public sector undertaking and plans to set up a processing plant with an estimated production of 6,000 tonnes per day and planned to start operations from 2017.

For updated information, please visit www.ibef.org

KEY INDUSTRIES – MINES AND MINERALS

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Source: Indian Mineral Scenario – States, Ministry of Mines website, www.mines.nic.in, Socio Economic survey 2013-14

Minerals Availability across districts

Manganese ore

Nellore, Prakasam, Vizianagaram and Srikakulam

Mica

Krishna, Nellore, Chittoor, Ananthapur, West Godavari,

Visakhapatnam, Guntur, Chittoor, Ananthapur,and West Godavari

Steatite/talc Ananthapur, Chittoor, Cuddapah

and Kurnool

Copper Cuddapah, Guntur, Kurnool,

Nellore and Prakasam

Graphite East Godavari, West Godavari, Visakhapatnam and Srikakulam

AUGUST 2015

52 52 For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Leather

• Andhra Pradesh is one of the major producer for hides and skins in India, contributing about 19 million pieces per annum, which accounts for about 10% share in the country’s raw material. Majority of the raw material is consumed by states such as Tamil Nadu and West Bengal. Major clusters for leather production are Hyderabad, Bhimavaram, Cuddapah, Eluru, Karim Nagar etc.

• Andhra Pradesh houses 450 slaughter houses and 34 large and medium tanneries with total production output of about 40 million square feet.

• The government provides financial assistance in the form of investment grants to the extent of 30.0 per cent of cost of plant and machinery for small scale industries (SSI) and 20.0 per cent of cost of plant and machinery for other units, subject to a ceiling of US$ 120,000 for technology upgradation or/and expansion.

• The state government plans to promote a few more leather clusters across the state for providing basic infrastructure for artisans and small and medium enterprises.

• Moreover, the government is also planning to set up a leather complex in Kothapatnam, close to Krishnapatnam port and 160 km from Chennai and Ennore Ports.

Gems and Jewellery

• The state produces a wide array of precious and semi-precious stones as well as pearls. • Gold is mostly available across Anantpur, Chittoor and Kurnool districts of the state. • During the year 2009-10, the government has identified new gold deposit areas in the

northern part of Ramagiri-Penakacherla of Anantapur district • Diamond is mostly found at Cuddapah, Anantapur, Kurnool, Krishna, Godavari and Guntur

districts.

KEY INDUSTRIES – OTHER GROWTH SECTORS … (1/2)

AUGUST 2015

53 53 For updated information, please visit www.ibef.org

APTDC: Andhra Pradesh Tourism Development Corporation

ANDHRA PRADESH THE RICE GRANARY OF INDIA

Hospitality, leisure and entertainment

• Being a major tourist hub in the country, the state is making rapid strides in the hospitality industry.

• With various corporates planning to have their footprint in the state, it will help in the development of the industry.

• The industry will get a further boost once the central government finalises the new capital for the state.

• In order to support the growth of the industry, APTDC is planning to implement various projects which include the introduction of cottages, jetties, houseboats in Krishna and Godavari rivers.

• Some of the other projects of the corporation include the Visakhapatnam-Bheemli beach corridor project, the Kalingapatnam temple circuit, a beach resort at Chintapalli in Vizianagaram and a budget hotel at Arasavalli, etc.

• The state government is in talks to invite Hollywood to set up a film making facility in order to impart technical training.

KEY INDUSTRIES – OTHER GROWTH SECTORS … (2/2)

Steel

• The state also produces steel from its Visakhapatnam Steel Plant. • The state exports steel products to Japan, Germany, United States, Singapore, Dubai,

Australia and various South American countries. • Apart from the plant, in May, 2014, the government announced to set up a public sector

steel plant (by Steel Authority of India) in Kadapa. • Ministry has planned to dedicate US$ 2.04 billion for the expansion of the steel project to

produce 6.3 million tonnes of steel per annum. • The Ministry of Steel has set a target of US$ 2.9 billion for the current fiscal, whereas the

internal target of the management is to make serious efforts to achieve US$ 3.3 billion.

AUGUST 2015

54 54

Andhra Pradesh is the first state in the country to have enacted the Industrial Single Window Clearance Act No 17 of 2002. The Act made it compulsory for new industries to register with the single-window to obtain clearances quickly. It also simplified procedures for getting industrial clearances. Committees were constituted at district and state levels to communicate to the applicant the status of their clearances. It has set time slots for issuing clearances and incorporated a provision for deemed approval after the expiry of the time limit. District level committees can clear investments not exceeding US$ 219,442. State level committees can clear those exceeding US$ 219,442. Above the district and state level committees is an empowered committee headed by the Chief Secretary of the state government, who reviews and monitors disposal of applications. Overall, a State Board under the chairmanship of the Chief Minister oversees the progress of the scheme. The maximum time taken to issue clearance of applications at all stages is 45 days. Violation of the provisions of the Act made either through self-assessment or otherwise would invite a penalty of US$ 109 in the first instance and US$ 219 in the second instance.

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

SINGLE-WINDOW APPROVAL MECHANISM

AUGUST 2015

55 55

Corporations under Industries and Commerce Department

Andhra Pradesh Industrial Development Corporation (APIDC)

Andhra Pradesh Industrial Infrastructure Corporation (APIIC)

Andhra Pradesh Mineral Development Corporation (APMDC)

Andhra Pradesh State Finance Corporation (APSFC)

Andhra Pradesh State Trading Corporation (APSTC)

Andhra Pradesh State Handloom Weavers Co-operative Society Limited (APCO)

Leather Industries Development Corporation of Andhra Pradesh (LIDCAP)

Andhra Pradesh Handicrafts Development Corporation (APHDC)

Andhra Pradesh Khadi & Village Industries Board (KVIB)

Andhra Pradesh Urban Financial Infrastructure Development Corporation

Directorate of Sugar and Commissionerate of Cane

Directorate of Mines and Geology

Commissionerate of Industries

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

KEY INVESTMENT PROMOTION OFFICES

AUGUST 2015

56 56

Agency Contact information

Andhra Pradesh Industrial Infrastructure Corporation

4th Floor, Parisrama Bhavan Fateh Maidan Road, Basheerbagh

Hyderabad - 500 004 Phone: 91-40-2323 7622, 2323 7623

Fax: 91-40-2323 3251, 2323 1459 E-mail: [email protected]

Website: www.andhra.apiic.in

Department of Industries and Commerce

Industries and Commerce Department 2nd Floor, D Block, Room No-348A

Secretariat Hyderabad - 500022

Phone: 91-040-23454449 Fax: 91-040-23452985

E-mail: [email protected] Website: http://industriesportal.apcgg.gov.in/

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

CONTACT LIST

AUGUST 2015

57 57

S No Approvals and clearances required Respective departments of state Estimated time

1 Registration, Industrial Entrepreneurs Memorandum (IEM), Industrial Licenses

Registrar of Firms 7 days

2 Allotment of Land/Shed in Industrial Estates or Industrial Areas

Andhra Pradesh Industrial Development Corporation

7 days for up to 1,000 sq m

21 days for above 1,000 sq m

3 Acquisition and alienation of government lands

Chief Commissioner of Land Administration (CCLA) 45 days

4

Building/Site Permission /Approval/License from Municipality/ UDA (Urban Development Authority) DT & CP (Directorate of Town & Country Planning)

Department of Municipal Administration & Urban Development

7 days

15 days / Deemed 5 Building /Site Permission from Gram Panchayat

Department of Panchayati Raj & Rural Development

6 Approval of change of land use for Industrial purpose

Land Administration Department of Revenue

If in Master Plan - 10 days

If not in Master Plan – 21 days

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

KEY APPROVALS REQUIRED … (1/4)

Source: Commissionerate of Industries, Government of Andhra Pradesh

AUGUST 2015

58 58

S No Approvals and clearances required Respective departments of

state Estimated time

7

Consent for establishment under Pollution Control

Green

AP Pollution Control Board

7 days

Orange 15 days

Red 21 days

8

Consent for

operation under

Pollution Control

Green

AP Pollution Control Board

7 days

Orange 15 days

Red 21 days

Authorization of units handling hazardous wastes

Processed along with CFO

9 No-Objection Certificate for Fire Safety Directorate of Fire Services Department of Home 15 days

10 Permission for Establishment of Distillery

Prohibition & Excise Department of Revenue

30 days

11 Licence for possession and use of Rectified Spirit 21 days

12 Licence for possession and use of Denatured Spirit 21 days

13 VAT/CST registration Commercial Tax Department of Revenue 3 days

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

KEY APPROVALS REQUIRED … (2/4)

Source: Commissionerate of Industries, Government of Andhra Pradesh

AUGUST 2015

59 59

S No Approvals and clearances required Respective departments of state Estimated time

14 Power feasibility DISCOM-Department of Energy

7 days

15 Power connection To be based on the length of the HT line

16 Approval of factory plans Directorate of Factories Department of Labor Employment Training and Factories

7 days

17 Factory license Directorate of Factories-Department of Labor Employment Training and Factories

7 days / Deemed for Registration only

18 Approval for water supply from ULB s-MA & UD Department Department of Municipal

Administration & Urban Department

7 days

19 Water connection 21 days

20

Permission to draw water from river/public tanks, Irrigation & CAD Department Permission to dig new wells from Ground Water Department

Irrigation & CAD Department 15 days

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

KEY APPROVALS REQUIRED … (3/4)

Source: Commissionerate of Industries, Government of Andhra Pradesh

AUGUST 2015

60 60

S No Approvals and clearances required Respective departments of state Estimated time

21 License for manufacture of ayurvedic, homeo, siddha, unani

AYUSH-Department of Health, Medical & Family Welfare 15 days

22 License for manufacture of bulk drugs / formulations / cosmetics

Drug Control Administration Department of Health, Medical & Family Welfare

15 days

23 Registration of Partnership Firms Registration & Stamps Department of Revenue 3 days

24 Registration under Professional Tax Commercial Tax Department of Revenue Spot approval

25 Registration of shops & establishments Commissionerate of Labor -Department of Labor Employment Training and Factories

Spot approval

26 Boiler registration Directorate of Boilers Department of Labor Employment Training and Factories

15 days

27 Registration of plastic manufacturers / recyclers AP Pollution Control Board 15 days

28 License for storage of petroleum, diesel and Naptha

District Collector/ Civil Supplies Department 15 days

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

KEY APPROVALS REQUIRED … (4/4)

Source: Commissionerate of Industries, Government of Andhra Pradesh

AUGUST 2015

61 61

Parameter Cost estimate (as per 2014-15)

Land price (US$ per sq m) 19.8 to 127.6

Labour cost (minimum wages per day) US$ 3.5 to US$ 7.6

Commercial Lease rent (US cents per sq ft per month)

15.2 to 112.2

Electricity (US cents per kWh) Commercial: 5.40 to 11.03

Industrial: 3.75 to 6.08

Residential rent (US cents per sq ft per month) 4.7 to 29.4

Five-star hotel room (US$ per night) 60 to 100

Water cost (US$ ) Industrial (Visakhapatnam): 0.37 per 1,000 litres

*Residential: 2.58 to 3.68 litres per annum from Household Service Connections

Computer Aided Registration of Deeds (CARD) The system has simplified and expedited the otherwise

cumbersome registration process, as a result time taken for the process was reduced to a single day from 17 days earlier

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

COST OF DOING BUSINESS IN ANDHRA PRADESH

Source: Vijayawada Municipal Corporation, Visakhapatnam Industrial Water Supply Company, Property Sites, News articles, Travel sites, PwC report,

Andhra Pradesh State Electricity Board.

AUGUST 2015

62 62

Electronic Hardware Policy 2012-2017

• To provide special incentives and facilities for the electronic hardware sector in line with the present ICT policy. The policy would cover areas such as industrial electronics, communication & broadcast equipment, computers & peripherals, and strategic electronics & components (semiconductors, solar & displays).

Read more

Objective

Andhra Pradesh Solar Power Policy - 2012

• To encourage, develop and promote solar power generation in the state with a view to meet growing demand for power in an environmentally and economically sustainable manner.

• To attract investment in the state for the establishment of solar power plants. Read more

Objectives

Food Processing Policy 2010-2015

• To provide a special focus to the food processing industry by extending the benefits for five years from April 2010 to March 2015. The policy would cover areas such as horticulture, agriculture, animal husbandry, fisheries, agro food processing industries and allied industries.

Read more

Objective

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

STATE ACTS & POLICIES … (1/5)

AUGUST 2015

63 63

Industrial Investment Promotion Policy (IIPP) 2010-2015

• To build a strong and vibrant industrial economy that spins off large capital formation in the state and advances inclusive development of all sections of the population and industry that creates increasing employment opportunities, and raises wage incomes to higher levels through skill upgradation to improve the quality of life of citizens of the state.

Read more

Objective

Information and Communications Technology (ICT) Policy 2010-15

To make Andhra Pradesh one of the fore runners in the IT sector in the country The objective would be achieved through the following initiatives: • Provision of congenial, industry friendly and proactive climate for IT companies to locate, grow

and sustain their operations in a most competitive and hassle-free environment. • Creation of employment opportunities for the educated youth of all sections of the society across

regions. • Achieving higher levels of exports, resulting in enhanced productivity and augmentation of GSDP • To spread IT to every nook and corner of the state. • Leverage IT as a tool for the socioeconomic development of the state. Read more

Objective

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

STATE ACTS & POLICIES … (2/5)

AUGUST 2015

64 64

Biotechnology Policy 2001

• To undertake a detailed inventory evaluation of bio-resources in the state to encourage Research and Development (R&D), develop high quality infrastructure and provide special incentives to the biotech industry.

Read more

Objective

Tourism Policy 2010

• To position the state competitively for attracting private sector investments in the tourism and hospitality sectors.

• To target incentives to the private sector better as per the state government's priorities in terms of geographical areas and tourism products.

• To focus on maximum generation of employment in the sector by the development of human resources through capacity building.

Read more

Objectives

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

STATE ACTS & POLICIES … (3/5)

AUGUST 2015

65 65

Biotechnology Policy 2015-2020

Read more

Objective

Textile & Apparel Policy 2015-2020

• To encourage, develop and promote textile and apparel industry in the state by focusing on cotton spinning, weaving, dyeing & processing, knitting etc., within textile value chain.

• To attract investment in the state for the establishment of Textile and Apparel Parks. Read more

Objectives

Automobile and Auto-Components Policy 2015-2020

• To provide a special focus on Automobile Industry by the provision of subsidies and reimbursements on CST, VAT/SGST. The development of Industrial Corridors(VCIC/CBIC) by providing excellent port logistics and infrastructure has been highlighted in the policy.

• To attract high investments in the state and improving the employment status. Read more

Objective

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

STATE ACTS & POLICIES … (4/5)

AUGUST 2015

• To undertake a detailed inventory evaluation of bio-resources in the state to encourage Research and Development (R&D), develop high quality infrastructure and provide special incentives to the biotech industry.

• Establishment of Life sciences Park and Life Sciences Knowledge Centers.

66 66

Industrial Development Policy 2015-2020

Read more

Objective

Andhra Pradesh Solar Power Policy 2015

• To encourage, develop and promote solar power generation in the state with a view to meet growing demand for power in an environmentally and economically sustainable manner.

• To attract investment in the state for the establishment of solar power plants. Read more

Objectives

Andhra Pradesh Single Desk Policy 2015-2020

• To create a conducive ecosystem to provide all clearances required to setup industry within 21 working days.

• To provide spot and deemed approvals based on self-certification and to provide parallel processing of streamlined processes. Read more

Objective

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

STATE ACTS & POLICIES … (5/5)

AUGUST 2015

• To ensure sustainable & inclusive industrial growth • To be among the Top 3 states in terms of industrial investments by 2022 and be the most

preferred logistics hub and India’s gateway to East and Southeast Asia by 2029. • To enhance the quantum and quality of skilled manpower and create significant employment

opportunities.

67 67 For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

CONFERENCES/SUMMITS FOR 2015-16

Upcoming Conferences Venue of Conference Date of Conference

IRAJ-International Conference on Research and Development in Engineering & Technology (ICRDET)

Vijayawada July 5, 2015

AECE-International Conference on Electrical, Electronics And Computer

Engineering (ICEECE-2015) Tirupati July 11,2015

IGR Forum-International Conference on Recent Innovations in Electrical, Electronics, Computer and Mechanical Engineering(ICRIEECME-2015)

Vijayawada July 18 2015

The ASAR-International Conference on Electrical, Electronics and Computer Engineering(ASAR-ICEECE-2015)

Tirupati

July 18 2015 ITR-International Conference on Mechanical And Production

Engineering(ICMPE-2015) Tirupati July 19 2015

National Conference On Emerging Trends Of Advanced Functional Materials (Ncafm-2015)

Vijayawada August 3,2015

IRAJ-International Conference on Cloud Computing and Computer Science (ICCCS 2015)

Tirupati August 16,2015

International Conference on Micro-Electronics, Electromagnetics and Telecommunications

Vishakapatnam December 18,2015

Source: India Conferences Alerts

AUGUST 2015

68 68

ANDHRA PRADESH THE RICE GRANARY OF INDIA

ANNEXURE

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 Q1 64.01

Average exchange rates

AUGUST 2015 For updated information, please visit www.ibef.org

Source: Reserve Bank of India

69 69

India Brand Equity Foundation (IBEF) engaged TechSci to prepare this presentation and the same has been prepared by TechSci 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 TechSci and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. TechSci and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither TechSci nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.

For updated information, please visit www.ibef.org

ANDHRA PRADESH THE RICE GRANARY OF INDIA

DISCLAIMER

AUGUST 2015