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ANDHRA PRADESH

AUGUST 2015

THE RICE GRANARY OF INDIA

For updated information, please visit www.ibef.org

ANDHRA PRADESH

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

AUGUST 2015

THE RICE GRANARY OF INDIA

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ANDHRA PRADESH

THE RICE GRANARY OF INDIA

EXECUTIVE SUMMARY (1/2)


Proposed industrial
corridor

Vizag among top five


ports in India

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.

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.

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 countrys total marine exports.

Power surplus state

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

AUGUST 2015

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ANDHRA PRADESH

THE RICE GRANARY OF INDIA

EXECUTIVE SUMMARY (2/2)


Home to various
pharma players

Tourist destinations

Rich in hydrocarbon
and mineral resources

Setting up PCPIR and


NIMZs

Large number of
operational SEZs

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.

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.

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.

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.

Andhra Pradesh has 29 operational SEZs in the state across diversified sectors located
mainly across Visakhapatnam, East Godavari and Nellore.
Source: Andhra Pradesh state portal
PCPIR: Petroleum, Chemicals and Petrochemicals Investment Region

AUGUST 2015

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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.

Common capital and Governor

Police forces

High Court

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.

Central government to provide assistance to raise additional forces.


New training centre for Seemandhra would be established.

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.

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

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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

Water resources

Energy

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.

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.

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

New capital

AUGUST 2015

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.

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ANDHRA PRADESH

THE RICE GRANARY OF INDIA

ADVANTAGE: ANDHRA PRADESH

Installed
power
capacity:
10,034 MW

Long coastline

High
economic
growth
Growing
demand

April 2015

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 200405 and 2014-15 to US$ 1,493.
Andhra Pradesh is a leading
agricultural state and plans to bring
out a white paper for further
Advantage
agricultural progress.

Adequate power
generation capacity

Andhra
Pradesh

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.

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.

2020E
Installed
power
capacity:
~20,000
MW

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.

Source: Andhra Pradesh state portal


DGH: Director General of Hydrocarbons, GSDP: Gross State Domestic Product

AUGUST 2015

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ANDHRA PRADESH

THE RICE GRANARY OF INDIA

ANDHRA PRADESH FACT FILE


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

Andhra
Pradesh

Parameters
Capital

Source: Maps of India

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.

AUGUST 2015

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

Source: Andhra Pradesh state portal


^Share with Telangana for 10 years

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ANDHRA PRADESH

THE RICE GRANARY OF INDIA

ANDHRA PRADESH IN FIGURES (1/2)


Parameter

Andhra
Pradesh

All states

Economy

2014-15

2014-15

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

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

132

Airports Authority of India

GSDP as a percentage of all states GSDP

Source

Physical Infrastructure
Installed power capacity (MW)

Airports (No)

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

AUGUST 2015

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ANDHRA PRADESH

THE RICE GRANARY OF INDIA

ANDHRA PRADESH IN FIGURES (2/2)


Andhra
Pradesh

All states

Source

Literacy rate (%)

67.4

73.0

Census 2011

Birth rate (per 1,000 population)

17.5

21.6

SRS Bulletin, October 2013

10.0

248.5

Department of Industrial Policy & Promotion,


April 2000 to March 2015

136.67

2,414.2

CMIE (2013-14)

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

Parameter
Social Indicators

Investment
FDI equity inflows (US$ billion)
Outstanding investments (US$ billion)^

Industrial Infrastructure

^For undivided state, PPP: Public-Private Partnership,


SEZ: Special Economic Zone, SRS: Sample Registration System

AUGUST 2015

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10

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

ECONOMIC SNAPSHOT GSDP


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

Between 2004-05 and 2014-15, the average annual GSDP


growth rate was 11 per cent.

CAGR
11%

Growth was mainly driven by industrial and services


sectors.

52,7 51,4

85,8
70,1

77,3 75,5 77,0

57,6

2014-15

2013-14

2012-13

2011-12

2010-11

2009-10

2007-08

38,6

2006-07

2005-06

2004-05

30,1 33,4

2008-09

At current prices, Andhra Pradeshs gross state domestic


product (GSDP) was US$ 85.8 billion over 2014-15.

Source: Directorate of Economics & Statistics of Andhra Pradesh,


Central Statistics Office

AUGUST 2015

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11

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

ECONOMIC SNAPSHOT NSDP


NSDP of Andhra Pradesh at current prices
(in US$ billion)
CAGR
10.9%

Between 2004-05 and 2014-15, the average annual NSDP


growth rate was about 10.9 per cent.

47,4 46,6

76,1

52,1

2014-15

2013-14

2012-13

2011-12

2010-11

2008-09

2007-08

34,7

2006-07

2005-06

2004-05

27,1 30,1

68,6 66,7 68,2


63,5

2009-10

At current prices, Andhra Pradeshs net state domestic


product (NSDP) was estimated at US$ 76.1 billion over
2014-15.

Source: Directorate of Economics & Statistics of Andhra


Pradesh, Central Statistics Office

AUGUST 2015

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12

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

ECONOMIC SNAPSHOT PER CAPITA GSDP


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

Average per capita GSDP rose at a CAGR of 10.9 per cent


between 2004-05 and 2014-15.

CAGR
10.9%

2014-15

2013-14

2012-13

2011-12

2010-11

2008-09

2005-06

1.824

816

2007-08

714

2006-07

648

2004-05

1.106 1.070

1.433

1.585 1.550 1.636

1.188

2009-10

Andhra Pradeshs per capita GSDP increased to US$ 1,824


during 2014-15 from US$ 647.7 over 2004-05.

Source: Directorate of Economics & Statistics of Andhra


Pradesh, Central Statistics Office

AUGUST 2015

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13

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

ECONOMIC SNAPSHOT PER CAPITA NSDP


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

Average per capita NSDP increased at a CAGR of 10.7 per


cent between 2004-05 and 2014-15.

2008-09

1.616

1.081

2014-15

2013-14

2012-13

2011-12

2010-11

2005-06

968

2007-08

644

994

1.303

1.442 1.410 1.448

734

2006-07

583

2004-05

CAGR
10.7%

2009-10

Andhra Pradeshs per capita NSDP grew from US$ 583.4


during 2004-05 to US$ 1,616 over 2014-15.

Source: Directorate of Economics & Statistics of Andhra


Pradesh, Central Statistics Office

AUGUST 2015

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14

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

ECONOMIC SNAPSHOT PER CAPITA INCOME

1.400

1.475

1.494

2012-13

2013-14

2014-15

1.424
2011-12

1.288

1,065
2009-10

2010-11

962
2008-09

730
2006-07

2005-06

2004-05

988

CAGR
9.9%

2007-08

Average per capita income increased at a CAGR of 9.9 per


cent between 2004-05 and 2014-15.

639

Per capita Income of Andhra Pradesh at


current prices (in US$)

579

Andhra Pradeshs per capita income grew from US$ 579.3


during 2004-05 to US$ 1,493 over 2014-15.

Source: Directorate of Economics & Statistics of Andhra


Pradesh, Central Statistics Office, Andhra Pradesh state portal

AUGUST 2015

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ANDHRA PRADESH

THE RICE GRANARY OF INDIA

ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP


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


CAGR

48,50%

11.8%

21,60%

10.5%

29,90%

10.2%

2004-05
Agriculture

51,79%

20,62%

27,59%
2014-15

Industry

Services

Source: Andhra Pradesh state portal

AUGUST 2015

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ANDHRA PRADESH

THE RICE GRANARY OF INDIA

ECONOMIC SNAPSHOT AGRICULTURAL SCENARIO


During 2014-15, total gross area under crop production in
Andhra Pradesh was 16.8 million hectares.

Area under
production
000 Ha (2014-15)

Crop production
000 tonnes
(2014-15)

2,772

6,863.0

233

2,218*

Cereals & millets

3,210

9,363

Sugarcane, cotton, tobacco and groundnut are some of the


other major crops produced in the state.

Pulses

1,373

1133*

Total food grains

4,584

11,664*

The state has the groundnut rich Rayalseema area, which


accounts for nearly 90 per cent of states production of
groundnut. This area also produces most of the sugarcane
in the state.

Groundnut

1,426

880*

Oilseeds

1,974

1,988

Vegetables

159

6,554*

During 2014-15, total production of oilseeds in the state was


estimated at 1.5 million tonnes.

Fruits

618

9,589*

Cotton

388.9

1,543.0

Fodder crops

66.79

NA

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.

Crop
Rice
Maize

Source: Andhra Pradesh state portal


NA Not Available, *2013-14

AUGUST 2015

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17

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

ECONOMIC SNAPSHOT IRRIGATION


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.

Jalayagnam project status - May 2014


Numbers

Area covered
(million acres)

Completed

10

4.68

Ongoing

14

2.8

Contemplated

2.73

Major irrigation projects

Medium irrigation projects Numbers

Area covered
(million acres)

Completed

50

0.57

Ongoing

11

0.21

Contemplated

0.047

Source: Andhra Pradesh state portal

In January 2015, the Andhra Pradesh cabinet announced to


revamp the Jalayagnam programme to ensure completion
of projects on time.

AUGUST 2015

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18

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

ECONOMIC SNAPSHOT EXPORTS

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 countrys
marine exports.

AUGUST 2015

24

25

2013-14

27

2012-13

30

2011-12

29

2010-11

29

2009-10

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.

Total exports turnover from Vizag Port (million tonnes)

2008-09

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

Source: Port of Visakhapatnam

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ANDHRA PRADESH

THE RICE GRANARY OF INDIA

ECONOMIC SNAPSHOT EXPORTS


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

Source: Andhra Pradesh State Portal


NA: Not Available

AUGUST 2015

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20

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

ANNUAL BUDGET 2015-16


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

State annual budget (in per cent)

State annual budget (in per cent)

Commodity

2015-16

Commodity

2015-16

Agriculture & allied services

7.74

Housing

0.79

Rural development

10.19

Urban development

2.80

Irrigation & flood Control

4.65

Welfare

6.56

Energy

3.86

Labour and employment

0.25

Industry & minerals

0.60

Social security & welfare

1.01

Transport

7.41

General services

33.32

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

AUGUST 2015

Source: State Budget 2015-16

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21

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

PHYSICAL INFRASTRUCTURE ROADS


Road network across the state
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 length (km)


2014-15

Road type
Source: Andhra Pradesh state portal

As of 2014-15, the state was connected via 4,423 km of


national highways and 76,896 km of other roads.

National highways

4,423

Total roads

76,896

Black top and asphalt

46,839

Concrete/metalled/unmetalled

30,057

The proposed Chennai Visakhapatnam corridor under the


Reorganisation Act will aid development of road projects.
Source: Andhra Pradesh state portal

The proposed Chennai-Bangalore corridor is anticipated to


further support development of road projects in the region.

AUGUST 2015

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ANDHRA PRADESH

THE RICE GRANARY OF INDIA

PHYSICAL INFRASTRUCTURE RAILWAYS & METRO RAIL


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.

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.

Rail network across the state

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.
Source: Maps of India

AUGUST 2015

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23

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

PHYSICAL INFRASTRUCTURE AIRPORTS


Andhra Pradesh has eight operational airports/air strips at
Visakhapatnam, Tirupati, Rajahmundry, Vijayawada,
Bobbili, Nagarjuna Sagar and Puttaparthi.

Airports across the state

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.

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

AUGUST 2015

Source: Andhra Pradesh state portal, Airports Authority of India

For updated information, please visit www.ibef.org

24

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

PHYSICAL INFRASTRUCTURE PORTS


Andhra Pradesh has a 974 km long coastline and the
second highest cargo handling port.

Visakhapatnam port traffic (million tonnes)

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.

64,0

59,0

58,5

55,5

2014-15*

67,0

2013-14

68,0

2012-13

66,0

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.

2011-12

2010-11

2009-10

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.

2008-09

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.

Source: Port of Visakhapatnam, *Until March 2015

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.

AUGUST 2015

For updated information, please visit www.ibef.org

25

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

PHYSICAL INFRASTRUCTURE POWER


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.

Installed power capacity (MW)


20.745

11.639

13.409

15.036

16.095

16.949

17.495

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.

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


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

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.

AUGUST 2015

For updated information, please visit www.ibef.org

26

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.

Some of the operational SEZs in Andhra Pradesh


Name/Developer
Andhra Pradesh Industrial Infrastructure Corporation Ltd

Location

Primary industry

Vishakhapatnam

Multi-product, IT/ITeS

Achutapuram, Visakhapatnam

Textile

Mandal, Visakhapatnam

Pharmaceuticals

Chippada Village, Visakhapatnam

Pharmaceuticals

Mandal Tada, Nellore

Footwear

Hetero Infrastructure

Nakkapalli

Pharmaceuticals

Parry Infrastructure

Kakinada

Food processing

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

Brandix India Apparel City Private Ltd


Ramky Pharma City Pvt Ltd
Divis Laboratories
Apache SEZ Development India

Andhra Pradesh Industrial Infrastructure Corporation Ltd

AUGUST 2015

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

For updated information, please visit www.ibef.org

27

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.

SEZs with valid in-principle approvals


Name/Developer

Location

Primary industry

NH-5 between Prakasam and


Nellore District

Building materials

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

Visakhapatnam

Petroleum and oil & gas


industry

South Coast Infrastructure Development Co of


Andhra Pradesh Private Ltd (SCIDCAP)
Lepakshi Knowledge Hub Private Ltd

M/s Planet SEZ Private Limited

Source: www.sezindia.nic.in

AUGUST 2015

For updated information, please visit www.ibef.org

28

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS

Sector

Project cost
(US$ million)

Stage

Roads and bridges

2.4

Under construction

Solid waste management

148.8

Under construction

Ports (excluding captive)

2787.0

Under construction

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

Project name
Design construction finance operation maintenance of 2 lane
bridge across Musi river of Miryalguda Kodad Road including
approa
Integrated solid waste management (3800 TPD) for
Hyderabad
Vodarevu Nizampatnam ports and port based corridor
development
Family entertainment center and 3 Star hotel canal guest
house at Vijayawada

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

AUGUST 2015

For updated information, please visit www.ibef.org

29

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

DEVELOPMENT PROJECTS: INVESTMENT AND MANUFACTURING ZONES


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.

Two new NIMZs

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.

New capital city and 10


smart cities

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.

Industrial corridors

AUGUST 2015

For updated information, please visit www.ibef.org

30

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

PHYSICAL INFRASTRUCTURE TELECOM


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 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.

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

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.

AUGUST 2015

For updated information, please visit www.ibef.org

31

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

SOCIAL INFRASTRUCTURE EDUCATION


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.

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

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.

Course
Junior colleges

Number of
colleges
(2013-14)

Number of
students
enrolled

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

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

32

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

SOCIAL INFRASTRUCTURE HEALTH


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.

Major hospitals
Apollo Hospital
Care Hospital

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.

AUGUST 2015

Manipal Hospital
Krishna Institute of Medical Sciences

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

Source: Andhra Pradesh state portal,


*Per thousand persons, **Per thousand live births

For updated information, please visit www.ibef.org

33

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

SPORTS AND CULTURAL INFRASTRUCTURE


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.

Stadiums and sports complexes in


Visakhapatnam
Aqua Sports Complex

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.

Port Trust Golden Jubilee Stadium

The Tirupati temple and Kanakadurga temple makes the


state one of the leading religious tourism spots in the
country.

Indira Priyadarshini Stadium

South Eastern Railway Stadium


Police Stadium

Steel Plant Township Stadium


Zinc Stadium

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 states 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.

AUGUST 2015

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

For updated information, please visit www.ibef.org

34

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

SMART CITY (1/2)


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.

Source: TechSci Research & news articles

AUGUST 2015

For updated information, please visit www.ibef.org

35

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

SMART CITY (2/2)


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.

Source: TechSci Research & News Articles

AUGUST 2015

For updated information, please visit www.ibef.org

36

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

INDUSTRIAL INFRASTRUCTURE
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.

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

AUGUST 2015

For updated information, please visit www.ibef.org

37

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

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


Andhra Pradesh accounts for 2 per cent of the countrys 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.

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.

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.

AUGUST 2015

Source: Andhra Pradesh IT department, News articles

For updated information, please visit www.ibef.org

38

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

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

Andhra Pradesh government is planning to set up Information Technology Investment


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

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 APIICs industrial corridor of Chittoor-Nellore.

Investment potential of
US$ 40.4 billion from
Vizag

Proposed ITIRs

Visakhapatnam ITIR

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.
Source: News articles

AUGUST 2015

For updated information, please visit www.ibef.org

39

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)

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

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40

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

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

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 companys 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.

Tech Mahindra

IBM

Wipro

AUGUST 2015

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41

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

KEY INDUSTRIES PHARMACEUTICALS (1/2)


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.

AUGUST 2015

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.

Some of the key players

Eisai
Granules India
Hospira
Dr Reddy's Laboratories
Aurobindo Pharma
Mylan
Omnichem
Source: News articles

For updated information, please visit www.ibef.org

42

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

KEY INDUSTRIES PHARMACEUTICALS (2/2)


Aurobindo Pharma
Ltd

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.

Dr Reddy's
Laboratories

Incorporated in 1984, Dr Reddy's Laboratories manufactures and markets a wide range of


pharmaceuticals across domestic and overseas markets. The companys 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 USbased Mylan Inc and has one USFDA-approved facility in Visakhapatnam. It is one of the
worlds 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.

Mylan Laboratories Ltd

Granules India Ltd

AUGUST 2015

For updated information, please visit www.ibef.org

43

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

KEY INDUSTRIES APPARELS AND TEXTILES


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.

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.

Few of the major cotton producing districts in the state


include Vizianagaram, East Godavari, Guntur, Prakasam
and Kurnool.

Andhra Pradesh has emerged as a large textile processing


centre. There are nearly 100 mills in the state, with coastal
Andhra having a lions share.

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.

AUGUST 2015

Handloom and textile exports for undivided


Andhra Pradesh (in US$ million)
1.152,30
1.002,00

CAGR
28.9%

151

272

340

404

793
490

148

FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15
Source: Andhra Pradesh Socio-Economic Survey 2013-14,
News articles,

For updated information, please visit www.ibef.org

44

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

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


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.

Seafood exports from Andhra Pradesh


(in US$ million)
1,269.0

The states 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.

CAGR
44.7%
565,7

199,9

199,3

2008-09

2009-10

623,1

286,5

1010-11

2011-12

2012-13

2013-14*

Source: Vizag Industrial Scan Industrial newspaper,


Andhra Pradesh state portal,
*Till November 2014

AUGUST 2015

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45

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

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


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.

AUGUST 2015

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46

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

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


Mondelez India
Foods Ltd

Mondelez India Foods Ltd is part of Mondelz International, Inc. It operates in five
categories chocolate confectionery, beverages, biscuits, gum and candy. The companys
key brands in India include Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville,
Celebrations, Gems, Halls, clairs, 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. Cargills 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 agrifoods, 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 ITCs 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.

Cargill India Pvt Ltd

ITC

Andhra Pradesh Dairy


Development Cooperative
Federation (APDDCF)

AUGUST 2015

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47

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

KEY INDUSTRIES TOURISM


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.

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.

Arrival of domestic tourists in Andhra Pradesh


(in million)

104,2

103,6

115,0

123,4

131,7

2014

2013

2012

2011

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.

2010

Puttaparthi and Srikalahasti are the upcoming tourist


destinations after the bifurcation of the state.

Source: Ministry of Tourism, Government of India; News articles


AP State Portal

AUGUST 2015

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48

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

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


According to the Director General of Hydrocarbons (DGH), Andhra Pradesh has huge oil and natural gas reserves. The
states 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 governments 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.
Source: Ministry of Petroleum and Natural Gas, News articles

AUGUST 2015

For updated information, please visit www.ibef.org

49

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

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


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.

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.

Major investors in PCPIR

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

AUGUST 2015

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50

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

KEY INDUSTRIES MINES AND MINERALS


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.

Minerals
Manganese
ore

Availability across districts


Nellore, Prakasam, Vizianagaram
and Srikakulam

Seemandhra is rich in mineral resources which include


manganese, limestone, mica, steatite, copper, graphite etc.

Mica

Krishna, Nellore, Chittoor,


Ananthapur, West Godavari,
Visakhapatnam, Guntur, Chittoor,
Ananthapur,and West Godavari

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.

Steatite/talc

Ananthapur, Chittoor, Cuddapah


and Kurnool

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.

Copper

Cuddapah, Guntur, Kurnool,


Nellore and Prakasam

Graphite

East Godavari, West Godavari,


Visakhapatnam and Srikakulam

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
Source: Indian Mineral Scenario States,
plans to set up a processing plant with an estimated production of
Ministry
of
Mines
website,
www.mines.nic.in,
Socio Economic survey 2013-14
6,000 tonnes per day and planned to start operations from 2017.

AUGUST 2015

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51

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

KEY INDUSTRIES OTHER GROWTH SECTORS (1/2)

Leather

Gems and Jewellery

AUGUST 2015

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 countrys
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.

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.

For updated information, please visit www.ibef.org

52

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

KEY INDUSTRIES OTHER GROWTH SECTORS (2/2)

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.

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.

Steel

APTDC: Andhra Pradesh Tourism Development Corporation

AUGUST 2015

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53

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

SINGLE-WINDOW APPROVAL MECHANISM


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.

AUGUST 2015

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54

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

KEY INVESTMENT PROMOTION OFFICES


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

AUGUST 2015

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55

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

CONTACT LIST
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: hyd@apiic.in
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: secy_inds@ap.gov.in
Website: http://industriesportal.apcgg.gov.in/

AUGUST 2015

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56

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

KEY APPROVALS REQUIRED (1/4)


S No

Approvals and clearances required

Respective departments of state

Estimated time

Registration, Industrial Entrepreneurs


Memorandum (IEM), Industrial Licenses

Registrar of Firms

Allotment of Land/Shed in Industrial


Estates or Industrial Areas

Andhra Pradesh Industrial


Development Corporation

Acquisition and alienation of government


lands

Chief Commissioner of Land


Administration (CCLA)

45 days

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

Building /Site Permission from


Gram Panchayat

Department of Panchayati Raj &


Rural Development

Approval of change of land use for


Industrial purpose

Land Administration Department of


Revenue

7 days
7 days for up to
1,000 sq m
21 days for above
1,000 sq m

15 days / Deemed

If in Master Plan - 10
days
If not in Master Plan
21 days

Source: Commissionerate of Industries, Government of Andhra Pradesh

AUGUST 2015

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57

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

KEY APPROVALS REQUIRED (2/4)


S No

Approvals and clearances required


Consent for
establishment
under Pollution
Control

Respective departments of
state

Green
Orange

Estimated time
7 days

AP Pollution Control Board

15 days

Red

21 days

Green

7 days

Consent for

Orange

15 days

operation under

Red

Pollution Control

Authorization of units
handling hazardous
wastes

No-Objection Certificate for Fire Safety

10

Permission for Establishment of Distillery

11

Licence for possession and use of Rectified


Spirit

12

Licence for possession and use of Denatured


Spirit

13

VAT/CST registration

AP Pollution Control Board

21 days

Processed along with


CFO
Directorate of Fire Services
Department of Home

15 days
30 days

Prohibition & Excise Department of


Revenue

21 days
21 days

Commercial Tax Department of


Revenue

3 days

Source: Commissionerate of Industries, Government of Andhra Pradesh

AUGUST 2015

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58

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

KEY APPROVALS REQUIRED (3/4)


S No
14

Approvals and clearances required

Respective departments of state

Power feasibility

Estimated time
7 days

DISCOM-Department of Energy

To be based on the
length of the HT line

15

Power connection

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

19

Water connection

20

Permission to draw water from


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

Department of Municipal
Administration & Urban Department

Irrigation & CAD Department

7 days
21 days

15 days

Source: Commissionerate of Industries, Government of Andhra Pradesh

AUGUST 2015

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59

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

KEY APPROVALS REQUIRED (4/4)


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

Source: Commissionerate of Industries, Government of Andhra Pradesh

AUGUST 2015

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60

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

COST OF DOING BUSINESS IN ANDHRA PRADESH


Parameter
Land price (US$ per sq m)
Labour cost (minimum wages per day)
Commercial Lease rent (US cents per sq ft per
month)
Electricity (US cents per kWh)

Cost estimate (as per 2014-15)


19.8 to 127.6
US$ 3.5 to US$ 7.6
15.2 to 112.2
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$ )

Computer Aided Registration of Deeds (CARD)

Industrial (Visakhapatnam): 0.37 per 1,000 litres


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

Source: Vijayawada Municipal Corporation, Visakhapatnam Industrial Water


Supply Company, Property Sites, News articles, Travel sites, PwC report,
Andhra Pradesh State Electricity Board.

AUGUST 2015

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61

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

STATE ACTS & POLICIES (1/5)


Andhra Pradesh Solar Power Policy - 2012
Objectives

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

Read more

Electronic Hardware Policy 2012-2017


Objective

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

Read more

Food Processing Policy 2010-2015


Objective

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

Read more

AUGUST 2015

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62

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

STATE ACTS & POLICIES (2/5)


Information and Communications Technology (ICT) Policy 2010-15
Objective

To make Andhra Pradesh one of the fore runners in the IT sector in the country The objective would
be achieved through the following initiatives:

Provision of congenial, industry friendly and proactive climate for IT companies to locate, grow
and sustain their operations in a most competitive and hassle-free environment.

Creation of employment opportunities for the educated youth of all sections of the society across
regions.

Achieving higher levels of exports, resulting in enhanced productivity and augmentation of GSDP

To spread IT to every nook and corner of the state.


Read more

Leverage IT as a tool for the socioeconomic development of the state.

Industrial Investment Promotion Policy (IIPP) 2010-2015


Objective

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

Read more

AUGUST 2015

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63

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

STATE ACTS & POLICIES (3/5)


Tourism Policy 2010
Objectives

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

Biotechnology Policy 2001


Objective

To undertake a detailed inventory evaluation of bio-resources in the state to encourage


Research and Development (R&D), develop high quality infrastructure and provide special
incentives to the biotech industry.

Read more

AUGUST 2015

For updated information, please visit www.ibef.org

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ANDHRA PRADESH

THE RICE GRANARY OF INDIA

STATE ACTS & POLICIES (4/5)


Textile & Apparel Policy 2015-2020
Objectives

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

Biotechnology Policy 2015-2020


Objective

To undertake a detailed inventory evaluation of bio-resources in the state to encourage


Research and Development (R&D), develop high quality infrastructure and provide special
incentives to the biotech industry.
Establishment of Life sciences Park and Life Sciences Knowledge Centers.
Read more

Automobile and Auto-Components Policy 2015-2020


Objective

AUGUST 2015

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
For updated information, please visit www.ibef.org

65

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

STATE ACTS & POLICIES (5/5)


Andhra Pradesh Solar Power Policy 2015
Objectives

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

Read more

Industrial Development Policy 2015-2020


Objective

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 Indias gateway to East and Southeast Asia by 2029.
To enhance the quantum and quality of skilled manpower and create significant employment
Read more
opportunities.

Andhra Pradesh Single Desk Policy 2015-2020


Objective

AUGUST 2015

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
For updated information, please visit www.ibef.org

66

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

CONFERENCES/SUMMITS FOR 2015-16


Upcoming Conferences
IRAJ-International Conference on Research and Development in
Engineering & Technology (ICRDET)
AECE-International Conference on Electrical, Electronics And Computer
Engineering (ICEECE-2015)
IGR Forum-International Conference on Recent Innovations in Electrical,
Electronics, Computer and Mechanical Engineering(ICRIEECME-2015)
The ASAR-International Conference on Electrical, Electronics and
Computer Engineering(ASAR-ICEECE-2015)
ITR-International Conference on Mechanical And Production
Engineering(ICMPE-2015)
National Conference On Emerging Trends Of Advanced Functional
Materials (Ncafm-2015)
IRAJ-International Conference on Cloud Computing and Computer
Science (ICCCS 2015)
International Conference on Micro-Electronics, Electromagnetics and
Telecommunications

Venue of Conference

Date of Conference

Vijayawada

July 5, 2015

Tirupati

July 11,2015

Vijayawada

July 18 2015

Tirupati

July 18 2015

Tirupati

July 19 2015

Vijayawada

August 3,2015

Tirupati

August 16,2015

Vishakapatnam

December 18,2015

Source: India Conferences Alerts

AUGUST 2015

For updated information, please visit www.ibef.org

67

ANDHRA PRADESH

THE RICE GRANARY OF INDIA

ANNEXURE
Average exchange rates

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
Source: Reserve Bank of India

AUGUST 2015

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ANDHRA PRADESH

THE RICE GRANARY OF INDIA

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AUGUST 2015

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