1

INFRASTRUCTURE & INVESTMENT DEPARTMENT

Objective
A new department by name "Infrastructure & Investment department"
has been created by the Government with a view to achieve the development
and growth objectives of the State through creation of adequate and 'state-ofthe-art' infrastructure facilities in the State. The main objective of creation of
this new department is to expedite fast track clearances and resolution of
Project related issues.
The Infrastructure & Investment Department deals with the subject of
Infrastructure, spanning the full range of activities from attracting
investment through promotional activities, formulating policies, monitoring
and facilitation of implementation of those projects. The Government,
depending on the nature of a given Project and its importance, from time to
time notify certain Projects as Infrastructure Projects which will come under
the purview of this department. The Infrastructure & Investment dept. shall
only facilitate implementation of these Projects and shall hand over the
project after execution to the respective line departments for operation and
maintenance.
The Infrastructure & Investment Department is responsible for
facilitation and monitoring of the Project from conceptualization to the last
stage in project delivery. For this purpose the department utilize the services
of Andhra Pradesh Invest for promotional activities and positioning the
State, Andhra Pradesh Infrastructure Authority (APIA) for facilitating Public
Private Partnership (PPP) Projects in infrastructure, and the Infrastructure
Corporation of Andhra Pradesh (INCAP) for execution and monitoring of
infrastructure projects implemented by it, and also the technical support staff
such as Engineering Departments of the respective line departments. For
projects notified under the purview of the Infrastructure & Investment
Department and executed through the A.P.Industrial Infrastructure
Corporation (APIIC) and the line departments, the respective Project teams
shall report/co-ordinate with the Infrastructure and Investment Department
through the Secretary concerned.

The Principal Secretary (Infrastructure & Investment) is the Chairman

of the newly created Infrastructure Corporation of Andhra Pradesh and Vice
Chairman of the Andhra Pradesh Infrastructure Authority, and Vice
Chairman of Andhra Pradesh Invest.
Empowered Committee:
Govt. have issued orders setting up an Empowered Committee with;
1. Prl.Secretary (Infrastructurte & Investment); 2. Prl.Secretary, Finance; 3.
Prl.Secretary, Industries & Commerce; and 4. Secretary of the concerned
dept., to consider issues placed before it and make recommendations, which
will be circulated to CM through CS for decision and the respective
departments shall issue necessary clearances/permissions based on the
decisions taken.
ORGANIZATION STRUCTURE

Projects under implementation:

1. Hyderabad Outer Ring Road & Satellite Townships Project:
The Government of Andhra Pradesh proposed major Infrastructure
facilities in Hyderabad City & one of the items is the orbital linkage to
decongest the traffic flow on the existing major arterials by constructing the
Outer Ring Road (ORR) around the twin cities. The ORR should be viewed
as Growth Corridor, since the aim is the development of well planned & well
connected Urban Settlements & Satellite Townships around the Hyderabad
Metro Politan Area. The 162 km long Outer Ring Road passes through
Patancheru Shamshabad- Hayatnagar- Medchal- Patancheru providing
connectivity to various National Highways, State Highways, MDRs and
other roads.

Salient Technical features of the ORR

The proposed Corridor is designed to be 8 lane fully access controlled
Expressway with 2 lane service roads on both sides. The link road
connecting ORR from Gachibowli will be of 6 lanes.
Right of Way: 150 m.
However Phase-I will have 125 m wide ROW. The main expressway
will be covering about 66 m and the balance ROW for providing
Ramps at interchanges, Service Roads wherever necessary, utility
ducts, Rail Corridor, etc., based on requirement.
Design Speed: 120 KMPH (Ruling), 100 KMPH (Absolute
minimum).
No At- grade intersections.
Suitable interchanges like Cloverleaf, Diamond type etc, for NH, SH
and other important / potential urban roads shall be provided.
Resettlement & Rehabilitation
The Govt. of AP has approved the Compensation Package for the
Project Affected Families of the Phase II, Land Acquisition, vide,
G.O.Ms.No. 14, IID(2), dt. 18.12.06 and the Hyderabad Urban Development
Authority has approved the Compensation Package for the affected of Phase
I, Land Acquisition in its 194th Authority meeting, Item No. 24. The Package
is under active implementation.
Project Implementation
The Entire Project is proposed to be implemented in 2 Phases as
under.
Phase-I:

This phase is intended to connect Gachibowli (IT Park of

Hyderabad) to Shamshabad (proposed International Airport)
with 6/8 lane access controlled Expressway of length around 24
km- Rs 699 Crores.

Phase-II:

This phase is intended to connect Narsingi-Kollur- PatancheruMedchal-Shameerpet-Peddamberpet-Turkayamjal-Shamshabad

with 8 lane access controlled Expressway of length 138 Km
Rs 2500 Crores.
The Status of the Project is as follows:

Phase - I
Preparation of Detailed Project Report for Phase-I entrusted to
the Consultants was completed by Dec 2005. The Consent for
Establishment was received from APPCB. The clearances from
MOEF are also received. Since the work is of specialized nature it
was decided by the Government to follow the International
Competitive

Bidding

procurement

for

process,

Phase-I

is

for

award

completed

of
and

contracts. The
the

status

of

implementation is as under.
(a). Supervision Consultancy Contract:
The High Level Committee constituted by the Government
decided that the bid of M/s BCEOM-Aarvee (JV) is the best value bid
received on ICB mode and the Contract is being awarded to them.
(b). Civil Works Contracts:
The High level Committee constituted by the Government
approved the lowest evaluated bids offered by the Contractors as
under.
(i). Contract Package I from Km 0.000 to 11.000
( Gachibowli to Shamshabad )
Agency: M/S CORPORATION TRANSSTROY OSJC ,Russia
(ii). Contract Package II from Km 11.000 to 24.380
( APPA to Shamshabad )
Agency: M/S CONTINENTAL ENGINEERING
CORPORATION, Taiwan
The works are scheduled to be completed in 30 Months while four
lane connectivity shall be given between Gachibowli and Shamshabad by
December 2007.

PHASE II
The preparation of Detailed Project Report is entrusted to the
M/s BCEOM-Aarvee (JV) Consultants.
Time Lines:
Preparation of DPR
Obtaining Clearances

: Completion of DPR : August, 2006.

: November, 2006.

Award of civil works

: by April, 2007.

Project Funding
The Phase-I of ORR Project cost is being met from the borrowed
funds from the consortium of Banks to a tune of Rs.500 crores.
The above loan is proposed to be liquidated in a period of ten years by
way of developing Integrated townships and Cluster Development alongside
the ORR and also through a mechanism of Regulations and Impact fees and
Charges in the 1Km Corridor on either side of the ORR.
2. Hyderabad Knowledge Corridor Project:
The Hyderabad Knowledge Corridor Project is proposed to be
implemented in about 34 villages in R.R. and Medak Districts. This project
envisages creation of world class infrastructure for IT & IT Enabled Sector,
integrated with Clusters of housing and commercial infrastructure and it is at
preliminary stage of conception. A committee has been constituted by the
Government to go into the modalities for forming a Special Authority for the
Hyderabad Knowledge Corridor Project.

The Committee is holding

deliberations in this matter.

In addition to the above projects, the Infrastructure & Investment
Department is entrusted with the following Infrastructure Projects for
implementation:

All Inland Water Transport Projects

Development of Old Gandhi Hospital Premises Project
Setting up of Natural Gas Grid in the State
Construction of Multi Utility Complex at A.P. Bhavan, New Delhi
Development of Nizampatnam Industrial Port City Complex

All New Airport Projects

INLAND WATER TRANSPORT (IWT)

Declaration of certain stretches of Waterways in River Godavari,

Krishna, Kakinada canal, Eluru canal, Commamur canal and
Buckingham canal for a total length of 1073 Kms. as National Waterway
The State Government has sent a proposal to the GOI during
December, 1995 for 100% Central Assistance for a) development of Inland
Water Transport on Integrated Canal linking Kakinada and Chennai
(Buckingham canal, commamur canal, Eluru Canal, kakinada Canal); and b)
development of IWT on River Godavari from Cherala to Rajahmundry on
the basis of the feasibility report prepared by M/s RITES, furnished along
with the proposal., and the GOI has been requested to provide an amount of
Rs.550-crores under 100% Central Assistance.

After constant persuasion, the Government of India, M/o Shipping,

Road Transport & Highways, vide their letter dated 23rd July, 2005 have
informed the State Govt., that the Waterway system consisting of river
Godavri

(Bhadrachalam-Rajahmundry),

river

Krishna

(Wazirabad-

Vijayawada) and Integrated Canals (i.e. Kakinda canal, Eluru Canal;

Commamur canal and North and South Buckingham canal) has already
been studied by IWAI and after it was found viable for development,
proposal for declaration of the same as National Waterway is already
under active consideration of Govt. of India and that after declaration
of the same as National Waterway, Govt. of India through IWAI will
take up the development works through entire funding by GOI, with
proactive support from GoAP to develop the waterway.

The State

Government is pursuing this matter with the Government of India.

Development of 8 canals for navigation purpose for Inland Water

Transport:
The State Govt. proposal for taking up Techno Economic Feasibility
Study of the following 8 Waterways in River Godavari and River Krishna to
a length of 645 Kms, under Centrally Sponsored Scheme, which will

ultimately be connected to the proposed National Waterway has been

approved by the Govt.of India, M/o Shipping, Road Transport & National
Highways.
1) Backwaters of River Gowtami Godavari 50 Km
2) Gannavaram Bank canal (Rajahmundry to Sakineipalli) - 90
Km
3) Amalapuram canal (Rjdy-Amalapuram) 80 Km
4) Kotipalli Bank Rajdy to Kkda) 90Km
5) Samalakota canal(Rjdy to Kkda) 90 Km
6) Korangi canal (Rjdy-Kkda)- 90 Km
7) Machilipatnam canal (Vijayawada-Mcptm) 80 Km
8) Ryves canal (Vijaywarda-Kaialuru) 100 Km.

The above TEF study has been entrusted to M/s. RITES Ltd., A
Govt. of India Enterprise and it is expected to complete the study by
August/September, 2007.

Establishment of Natural Gas transportation network in the State

A Special Purpose Vehicle (SPV) in the name of Krishna Godavari
Gas Network Ltd., has been incorporated with IDFC (PE), GSPC Group
and INCAP as partners with equity share of 48:26:26 ratio respectively. It is
expected that the network will be ready to coincide with gas evacuation from
KG Basin which will start from June 2008.
Milestones achieved:
1) The Demand Assessment for Natural Gas in A.P. state was completed
by M/s. Ernst & Young by March 2006.
2) Govt., have issued orders in G.O.Ms.No.9 of Infrastructure &
Investment (IID-I) Dept., dt.20.07.2006 authorizing the VC & MD to
go ahead with the project and complete the incorporation process.
3) A Special Purpose Vehicle in the name of Krishna Godavari Gas
Network Ltd., has been incorporated with IDFC (PE), GSPC and
INCAP as partners with equity share of 48:26:26 ratio.
4) Business plan is under preparation for this entity in separate phases.

Construction of Multi Utility Complex at A.P. Bhavan, New Delhi

This project is aimed at utilizing the total extent of 20.222 acres of
land for a multi-utility complex through a Design, Build, Lease and Transfer
model.

A high power empowered Committee with Chief Secretary as

Chairman has been constituted for proper guidance on the project execution.
Recently Government of India have suggested to GoAP to consider using the
Pataudi House land adjacent to A.P. Bhavan for setting up of a five star
Hotel. The proposal was examined by INCAP.
Milestones achieved:
1) Government have issued Orders constituting the Special Empowered
Committee in G.O.Ms.No.423, General Administration (GH-1) Dept., dated
14.09.2005 read with GO Ms.No.436 General Administration (GH-I)
Department dated 23.09.2005.
2) International competitive Bids were called for and EOI-cum-RFQ was
issued 18 developers have responded to the EOI-cum-RFQ 8 developers
were short listed.
3) Government have issued Orders constituting Technical Advisory
Committee vide GO Ms.No.6 Infrastructure & Investment (IID-I) Dept.,
dt.12.07.2006. The Technical Advisory Group has met twice on 14.07.06
and 26.07.06 to advice on critical issues.
4) Government have issued orders for engaging Independent Engineering
Agency vide GO Ms.No.7 Infrastructure & Investment (IID-I) Dept., dated
12.07.2006.
5) Government have issued Orders appointing liaison team vide GO
Ms.No.8 Infrastructure & Investment (IID-I) Dept., dt.12.07.2006.
6) Govt., has issued orders permitting VC & MD for appointment of
additional personnel in his office vide G.O.Ms.No.10, Dt.27.07.06.
Development of Nizampatnam Industrial Port City Complex
A Memorandum of Understanding was entered into between M/s
Skoda Export Company Ltd., belonging to the Czech Republic and INCAP

on 10.04.2006 to develop a multy project economic zone with port city

complex, Urea, Power plant and associated facilities in Nizampatnam,
Guntur district.

An inter-departmental co-ordination meeting was also

convened to look into the project specifics. Government have approved the
Memorandum and Articles of Association of the Special Purpose Vehicle.
Milestones achieved:
1. Developer has prepared the Pre-feasibility report and initial Master
plan in pursuance of the MOU.
2. The Memorandum and Articles of Association of Nizampatnam
Industrial Port Complex Company Pvt. Ltd. (NIPCCO) has been
approved by the Government in G.O.Ms.No.1, I & I Dept., dated
2.2.2007.
3. Inter departmental coordination meeting at Government level
covering 8 departments for discussing the details contained in the Prefeasibility report was convened.
1) Ports Department
2) South Central Railways
3) Finance Department
4) Revenue Department
5) Environment, Forest, Science & Technology Department
6) Energy department
7) Industries & Commerce Dept.

Development of Regional Aviation Hub

The State Government is keen to develop airports at select

District Headquarters and other commercial centres in the State, keeping in
view the potential for passenger and cargo traffic in these places due to
growth of industries including IT and ITeS, setting up of SEZs at various
places besides commercial activity at these locations.

The Council of

Ministers in its recent meeting has directed that Techno- Economic

Feasibility Studies be undertaken for taking up of Airports at the following

10

locations:1. Ramagundam; 2. Kothagudem;

3. Nizamabad;

4. Ongole;

5. Nellore;

6. Kurnool;

7. Tadepallegudem;
The Airport Authority of India has also expressed their view
that new airports in the State can be undertaken through MoU route. The
State Govt. has, therefore, vide its letter dated 20.1.2007 requested the AAI
to take up Feasibility Studies at these locations for Greenfield airports.
Besides this, the AAI has been requested to enter into MoU similar to the
one entered into by the AAI with the Govt. of Karnataka, for revival of the
two existing Airports at Cuddapah and Warangal.