Proposed industrial

corridor

The proposed Visakhapatnam-Chennai industrial corridor is expected to attract investment

to the tune of US$ 16.7 billion and will create more than 50,000 jobs.

Vizag among top five

ports in India

The Visakhapatnam port ranks amongst the top five of 13 major ports in the country.
During 2013-14, it handled 58.5 million tonnes of cargo.

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

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 1,000 kms, temple destinations, lush green
forests and spicy cuisine which led to increase in domestic tourism in the last few years.

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 17 operational SEZs in the state across diversified sectors located
mainly across Visakhapatnam, East Godavari and Nellore.

PCPIR: Petroleum, Chemicals and Petrochemicals Investment Region

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

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 center for Seemandhra would be established.

High Court

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.

Special development package

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.

Services of employees

Water resources

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.

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.

Energy

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.

Higher education

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.

New capital

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.

High
economic
growth
Growing
demand

2013-14

Installed
power
capacity:
~9,555 MW

Long coastline

GSDP expanded at a compound

annual growth rate (CAGR) of 15.2
per cent between 2004-05 and 201213 to US$ 77.2 billion.
Per capita income improved at a
CAGR of 11.7 per cent between 200405 and 2012-13 to US$ 1,400.
Andhra Pradesh is a leading
agricultural state in India.

Advantage
Andhra
Pradesh

Adequate power
generation capacity

Most of the coal based power plants

are located in the coastal regions due
to their connectivity to the ports.
As gas production from Krishna
Godavari Basin (KG basin) picks up,
gas based power plants will generate
more power leading to the state to
become a power surplus state.
A 6,000MW nuclear power plant is to
be set up in Srikakulam District.

A 972-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.
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

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 972 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.

Hyderabad^

Geographical area (sq km)

160,205

Administrative districts (No)

13

Population density (persons per sq

km)

308

Total population (million)

49.4

Male population (million)

24.7

Female population (million)

24.6

Sex ratio (females per 1,000 males)

996

Literacy rate (%)

67.4

Source: Andhra Pradesh state portal

^Share with Telangana for 10 years

Parameter

Andhra
Pradesh

All States

Economy

2012-13

2012-13

GSDP as a percentage of all states GSDP

4.5

100.0

Andhra Pradesh State Portal, May 2014 &

Planning Commission Databook, July 2014

Average GSDP growth rate (%)*

15.2

15.5

Andhra Pradesh State Portal, May 2014 &

Planning Commission Databook, July 2014

1,563.7

1,414.4

Andhra Pradesh State Portal, May 2014 &

Planning Commission Databook, July 2014

9,555.0

249,488.3

Central Electricity Authority, as of June 2014

and Business Line citation

Wireless subscribers (No)^

67,192,201

910,157,975

Telecom Regulatory Authority of India,

as of May 2014

Broadband subscribers (No)^

1,342,750**

65,330,000

Ministry of Communications & Information

Technology, as of May 2014

National highway length (km)

3,144

79,116.0

Ministry of Road Transport & Highways, Andhra

Pradesh State Portal

Major and minor ports (No)

1+14

13+187

Indian Ports Association

133

Andhra Pradesh State Portal, AAI

Per capita GSDP^ (US$)

Source

Physical Infrastructure
Installed power capacity (MW)

Airports (No)

^For undivided state, *Calculated in Indian Rupee terms from 2004-05, **As of December 2011, ^Estimates

Andhra
Pradesh

All-States

Source

Literacy rate (%)

67.4

73.0

Provisional data - Census 2011

Birth rate (per 1,000 population)^

17.5

21.6

SRS Bulletin (www.censusindia.gov.in),

October 2013

8.8*

223.0

Department of Industrial Policy & Promotion,

April 2000 to May 2014

198.1

2,414.2

CMIE (2013-14)

PPP projects (No)

120

1,339

www.pppindiadatabase.com, PPP Cell, Andhra

Pradesh, March 2014

SEZs (No)

42

392

Notified as of July 2013, www.sezindia.nic.in

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, *Data shared by RBI Hyderabad

At current prices, Andhra Pradeshs Gross State Domestic

Product (GSDP) was estimated at US$ 77.2 billion over
2012-13.

51.4

2008-09

2010-11

38.6

2009-10

2005-06

77.2

70.1
57.6

52.7

2007-08

33.4

2006-07

30.1

2004-05

Growth was mainly driven by industrial and services

sectors.

78.2

2012-13

CAGR
15.2%*

Between 2004-05 and 2012-13, the average annual GSDP

growth rate was 15.2 per cent*.

2011-12

GSDP of Andhra Pradesh at current prices

(in US$ billion)

Source: Andhra Pradesh state portal

*In Indian Rupee terms

At current prices, Andhra Pradeshs Net State Domestic

Product (NSDP) was estimated at US$ 70.2 billion over
2012-13.

46.6

71.2

70.2

2012-13 (E)

47.4

2008-09

Between 2004-05 and 2012-13, the average annual NSDP

growth rate was about 15.4 per cent*.

2007-08

CAGR
15.4%*

2011-12 (E)

NSDP of Andhra Pradesh at current prices

(in US$ billion)
63.8

52.4

34.7

2010-11 (E)

2009-10

2006-07

2005-06

2004-05

27.1

30.1

Source: Andhra Pradesh state portal

*In Indian Rupee terms, E- Estimates

Andhra Pradeshs per capita GSDP increased to US$

1,550.0 during 2012-13 from US$ 647.7 over 2004-05.

GSDP per capita of Andhra Pradesh at

current prices (in US$)

Average per capita GSDP rose at a CAGR of 14.2 per cent*

between 2004-05 and 2012-13.

CAGR
14.2%*
1,106.2 1,069.8
816.1

1,550.0

1,188.1

2012-13

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

714.0

2005-06

2004-05

647.7

1,584.6
1,432.7

Source: Andhra Pradesh state portal

*In Indian Rupee terms
Per capita calculated based on population growth
between 2001 and 2011 census figures

Andhra Pradeshs per capita NSDP grew from US$ 583.4

during 2004-05 to US$ 1,410.1 over 2012-13.

NSDP per capita of Andhra Pradesh at

current prices (in US$)

Average per capita NSDP increased at a CAGR of 14.4 per

cent* between 2004-05 and 2012-13.

CAGR
14.4%*
993.6

968.4

1,441.5 1,410.1
1,303.3
1,080.8

734.4

2012-13 (E)

2011-12 (E)

2010-11 (E)

2009-10

2008-09

2007-08

2006-07

643.7

2005-06

2004-05

583.4

Source: Andhra Pradesh state portal

*In Indian Rupee terms, E- Estimates
Per capita calculated based on population growth between 2001
and 2011 census figures

Andhra Pradeshs per capita income grew from US$ 579.3

during 2004-05 to US$ 1,400.0 over 2012-13.

Per capita Income of Andhra Pradesh at

current prices (in US$)

Average per capita income increased at a CAGR of 11.7 per

cent* between 2004-05 and 2012-13.

1,424.0

CAGR
11.7%*
987.7

1,287.5

1,400.0

1,065.3
961.7

730.2

2012-13

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

639.4

2005-06

2004-05

579.3

Source: Andhra Pradesh state portal

*In Indian rupee terms, E- Estimates

During 2012-13, the service sector accounted for 49.7 per

cent (US$ 38.4 billion) of GSDP (at current prices), followed
by agriculture (27.3 per cent; US$ 21.1 billion), and industry
(23.0 per cent; US$ 17.8 billion).
The industry sector grew the fastest at a CAGR of 16.2 per
cent*, followed by services (CAGR of 15.6 per cent*) and
agriculture (CAGR of 14.0 per cent*) between 2004-05 and
2012-13.

GSDP composition by sector

CAGR*
48.5%

15.6%

49.7%

21.6%

16.2%

23.0%

29.9%

14.0%

27.3%

2004-05
Agriculture

2012-13
Industry

Services

Source: Andhra Pradesh state portal

*In Indian Rupee terms

During 2012-13, total gross area under crop production in

Andhra Pradesh was 8.6 million hectares of which 6.7
million hectares was net sown area.
Overall production of cereals and millets during 2012-13
stood at 9.4 million tonnes.
Major food grains produced in Andhra Pradesh are rice,
maize and pulses.
Sugarcane, cotton, tobacco and groundnut are some of the
other major crops produced in the state.
The state has the groundnut rich Rayalaseema area, which
produces nearly 90 per cent of the groundnut. This area
also produces most of the sugarcane in the state.
During 2012-13, total production of oilseeds in the state was
estimated at 2.0 million tonnes.

Area under
production
000 Ha (2012-13)

Crop production
000 tonnes
(2012-13)

Rice

2772.4

6863.0

Maize

233.4

NA

Cereals & millets

3210.7

9363.0

Pulses

1373.5

1133.0

Total food grains

4585.0

NA

Groundnut

1426.1

NA

Oilseeds

1974.1

1988.0

Vegetables

159.7

NA

Fruits

618.3

NA

Cotton

389.0

1543.0

Fodder crops

66.8

NA

Crop

Source: Andhra Pradesh state portal

NA Not Available

During 2010-11, nearly 50 per cent of the irrigation in the

state was dependent on canal water, more than 35 per cent
on ground water and more than 10 per cent on tank water.

Jalayagnam project status - May 2014

Numbers

Area covered
(million acres)

Completed

10

46.8

Ongoing

14

28.0

Contemplated

27.3

Major irrigation projects

The undivided state has embarked an 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 10 million acres of arid and dry land in the
southern part of the state.

Medium irrigation projects Numbers

Area covered
(million acres)

Completed

50

0.6

Ongoing

11

0.2

Contemplated

0.1

Source: Andhra Pradesh state portal

Exports from Visakhapatnam Port, one of 13 major ports in

India, stood at 25.0 million tonnes during 2013-14.

29

30
27
24

25

2013-14

29

2012-13

The port has also emerged as the leading port in marine

exports in India.

Total exports turnover from Vizag Port

(million tonnes)

2011-12

2010-11

Exports from the port are expected to increase in the near

term as it has taken up two major projects to extend the
existing container terminal and modernisation & upgradation
of the iron ore handling complex.

2009-10

During the period, Vizags share of seafood exports stood at

23 per cent in terms of value and 22 per cent in terms of
dollar realisation.

2008-09

Marine exports from the port during April to December 2013

stood at US$ 826 million compared to US$486 million in the
corresponding period a year earlier.

Source: Port of Visakhapatnam

The divided Andhra Pradesh will grow as an economic

powerhouse as the states coastal region will attract
investment which was earlier concentrated mainly towards
Hyderabad.
The location advantage of the state has helped it to witness
increasing investment in the coastal Andhra region over the
last few years. This was mainly from manufacturing sectors
like pharma, chemicals, mining, petrochemicals, etc.
The state has the potential to develop various growth
centres along the coastline like Visakhapatnam,
Vijayawada, Nellore and Anantapur.
Moreover, the proposed Visakhapatnam Kakinada
Petroleum, Chemicals and Petrochemicals Investment
Region (PCPIR) is expected to attract huge investment.
Recently, a commitment was made by the Industrial
Development Forum that Andhra Pradesh is expected to
receive investment to the tune of US$ 933.3 million in the
next two to three years.
Tax holiday, special status and other incentives are
anticipated to further boost investment.

Foreign direct investment in Andhra Pradesh over the last

20 years stood at US$ 1,476.5 million. Majority of the
investment was done in coastal Andhra region.

FDI across Andhra Pradesh over 1991-2010

(US$ million)
1,800

1,303

1,350

900

450
173
0
Rayalaseema

Coastal Andhra

Source: News article

Total FDI in undivided Andhra Pradesh from 1991 to 2010 = US$ 3,014.5 million,
Average exchange rate used INR 42.2/US$

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)

FY 12-13

Road type
Source: Andhra Pradesh state portal

By the end of 2012-13, the state was connected via 3,144

km of national highways and 42,137 km of other roads.

National Highways

3,144

Total roads

42,137

Black top and asphalt

38,696

Concrete/metalled/unmetalled

3,441

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.

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

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.
The state is planning to develop a second runway at Vizag
only for commercial operations
Moreover, the state is also planning to extend the airports
operating time to 24/7, which is expected to bring more
airlines to Vizag.
Various international airlines have expressed interest in
commencing or increasing existing operations. The
relaxation of the timing will also enable various domestic
airlines to introduce additional flights in Vizag.
This will increase employment opportunities in the region as
more industries will come from abroad, bringing
investments.

Source: Andhra Pradesh state portal, Airports Authority of India

Andhra Pradesh has a 972 km long coastline and the

second highest cargo handling port.

Visakhapatnam port traffic (million tonnes)

72

The Visakhapatnam port ranks amongst the top five of 13

major ports in the country. During 2013-14, it handled 58.5
million tonnes of cargo.
Coking coal, iron ore, petroleum products and thermal coal
are some of the key products handled by the port. It also
has a high volume of container traffic.
Other than Visakhapatnam, the state has five more
operational ports. Apart from these, seven more ports are
under development and three are proposed to be
developed.
The extension of the existing container terminal and the
modernisation and upgrading of the iron ore handling
complex will enable the port to increase its cargo handling
capacity in the near term.
The first project, estimated to cost over US$ 100 million, has
been awarded to the Visakha Container Terminal Private
Ltd and the second, estimated to cost US$ 137.5 million,
was awarded to Essar Ports.

64

66

68

67
59

59

2012-13

2013-14

54

36

18

0
2008-09

2009-10

2010-11

2011-12

Source: Port of Visakhapatnam

Installed power capacity (MW)

As of June 2014, Andhra Pradesh had a total installed

power generation capacity of nearly 9,555MW.
The state has nine hydro power projects under operation
and one under development. Moreover, the state has one
operational wind power project.

15,036

16,095

16,949

17,495

13,409
11,639

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 685.1 kWh during 2012-13.
The state is planning to add another 8,400 MW power
capacity under the public sector which includes a 600 MW
plant at RTPP, Muddanur, 4,000 MW near Vodarevu in
Prakasam district, 2,400 MW plant in Srikakulam and a
2,000 MW nuclear power project.
Furthermore, an additional 3,000 MW of power generation is
planned by private players in the state.

8,176

9,555

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

Andhra Pradesh

Telangana

Source: Central Electricity Authority

*As of June 2014 based on Business Line citation

The setting up of an LNG terminal by Petronet LNG at

Gangavaram will make gas available for six gas based
power plants, with a capacity of 2,700 MW, which currently
produce only 700 MW due to shortage of gas.
Taking into consideration all the existing and planned power
plants to be operational, total power available in the state is
expected to reach 18,000 MW to 20,000 MW in the
upcoming years.

Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is the agency responsible for the supervision and execution of
SEZs in the state.
As of July 2014, the state has 17 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

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

Andhra Pradesh has five SEZs with valid in-principle approvals and 42 SEZs with formal approvals, as of July 2013.

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

Sector

Under
government

Project cost
(US$ million)

Stage

Energy

Central

2916.7

Construction

Krishnapatnam Port

Ports

State

866.7

Operational

Kakinada Deep Water Port

Ports

State

659.3

Operational

Gangavaram Port

Ports

State

308.3

Operational

Vijayawada-Gundugolanu Section

Roads

Central

280.7

Bidding

Six-laning of Gundugolanu Rajamundry

Roads

Central

269.5

Bidding

Four laning of Cuddappah-Kurnool section

Roads

Central

264.2

Construction

Machilipatnam Port Development

Ports

State

265.0

Construction

Energy

State

170.8

Operational

IT

State

75.0

Operational

Infrastructure

State

52.2

Operational

Urban development

State

4.5

Reversion

Project name
Krishnapatnam Ultra Mega Power Project

GVK Jegurupadu Combined Cycle Power Project

IT/ITeS SEZ, Vijayawada
Jawaharlal Nehru Pharma City, Visakhapatnam
Dispensary site at Maddilapalem

Source: Public Private Partnership in India Database

P-P-P: Public-Private Partnership, As of March 2014, Converted using flat exchange rate of INR 60 / USD

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 more than US$ 8.0 billion and would have an
employment potential of 0.3 million each.

Two new NIMZs

New capital city and 10

smart cities

The new government is planning to set up the new capital for the state between
Vijayawada and Guntur.
These fast growing cities (Vijayawada and Guntur) with substantial infrastructure can be
transformed into a mega capital city.
Moreover, the government plans to develop many mega cities across the state as part of
the decentralised development agenda.

Industrial corridors

The proposed Visakhapatnam-Chennai industrial corridor is expected to attract investment

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.

According to the Telecom Regulatory Authority of India

(TRAI), undivided Andhra Pradesh had nearly 67.2 million
wireless subscribers and 2.0 million wireline subscribers as
of May 2014.

Airtel is planning to launch 4G services in the states of

residual Andhra Pradesh by the end of this financial year
with special focus in the cities of Vijayawada and
Visakhapatnam.

According to the Department of Telecommunications,

Government of India, the undivided state had 4,266^
telephone exchanges and 130,282^ public call offices
(PCOs) as of March 2012.

Telecom infrastructure (as of May 2014)

The overall tele-density in undivided Andhra Pradesh stood

at 79.4^ per cent as of May 2014.
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 July 2014, there were 16,161^ post offices in the
state.
BSNL announced that there will be no charge of inter-state
roaming between Telangana and Seemandhra until 2024.
In 2024 when the licensing of spectrum ends, a new
spectrum auction would be conducted for the two states and
the norms would be set at that time for inter-state roaming.

Wireless subscribers^

67,192,201

Wire-line subscribers^

2,020,044

Broadband subscribers^

1,342,750*

Telephone exchanges^

4,266**

Public Call Offices (PCOs)^

130,282**

Source: Telecom Regulatory Authority of India,

Department of Telecommunications, Annual Report 2011-12,
Ministry of Communications & Information Technology, India Post
*As of December 2011
**As of March 2012
^For undivided Andhra Pradesh
BSNL: Bharat Sanchar Nigam Limited

Classes

Andhra Pradesh has a literacy rate of 67.9 per cent,

according to provisional data released by Census 2011.
During 2012-13*, 7.2 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.

Number of schools
(2012-13*)

(I-V)

40,929

(I-VII/VIII)

9,575

(I-XII)

161

(I-X)

705

(VI-X)

9,289

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
(2011-12)

Number of
students
enrolled

2,886

886,762

B Ed training colleges

365

39,049

Engineering

366

156,177

Pharmacy colleges

120

11,040

MBA colleges

438

39,491

Polytechnics

163

48,980

Source: Commissioner & Director of School Education, Andhra Pradesh state portal
*Data as on 30 September 2012

By the end of 2011-12, Andhra Pradesh had 275 allopathic

hospitals, 1,021 primary health centres and 25,769 beds.
Moreover, the state also had three ayurvedic hospitals and
three homoeopathic hospitals.

Major hospitals
Apollo Hospital
Care Hospital
Manipal 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.

Krishna Institute of Medical Sciences

Health indicators (estimates) (2010)

Birth rate*

17.1

Infant mortality rate**

42.8

Medical facilities (2011-12)

Hospitals

275

Primary health centres

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.

Dispensaries

1,021
13

Regular doctors

5,086

Contract doctors

612

Beds available

25,769

Source: Andhra Pradesh state portal

*Per thousand persons, **Per thousand live births

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.

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

The government is planning to make the state an IT power

house in the coming years.
According to an announcement made by the Minister for
Information Technology in July 2014, Visakhapatnam is set
to be developed into the IT capital of the state.
Madhurawada, located in the north-east of Visakhapatnam,
has already been developed as an IT hub. Various IT firms
were allocated land in this area to develop and start their
operations while few of them are already operational.

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.

Revenue from IT industry (in US$ million)

300.0
256.0

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.

266.0

225.0

150.0

75.0

As part of the state government's commitment to transform

Vizag into a major IT hub, lands have been allocated to
three major companies.

20.4

21.2

11.3

0.9 1.3

7.4

Tirupati

Kakinada

0.0
Vizag

Vijayawada
2011-12

2012-13

Source: Andhra Pradesh IT department, News articles

Proposed ITIRs

Andhra Pradesh government is planning to set up Information Technology Investment

Regions (ITIR) in Visakhapatnam, Anantapur 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.

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.

Visakhapatnam ITIR

Tirupati/Anantapur/
Nellore ITIR

Investment potential of
US$ 40.4 billion from
Vizag

The state expects the Visakhapatnam ITIR project to have an investment potential of US$
7.5 billion and revenue of US$ 6.2 billion.
Direct and indirect employment generated from the project is estimated at 0.43 million and
1.71 million, respectively, once it is fully functional.
Source: News articles

IT exports from Andhra Pradesh stood at nearly US$ 122.8 million and employ nearly 4,000 people.
In order to increase the contribution of IT export 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 to all gram panchayats by 2017 and to all villages by

2020
Source: Andhra Pradesh IT vision

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 Satyam on March 21, 2012 and together the new
entity serves 540 corporate customers across 49 countries. The company reported a
revenue of US$ 3.1 billion during the financial year 2013-14.

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$ 7.3 billion for the financial year ended Mar 31, 2014.

Tech Mahindra

IBM

Wipro

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.

Few of the national players to set up their manufacturing

hubs in the state include Dr Reddy's Laboratories,
Aurobindo Pharma, Hetero Drugs etc.

Some of the key players

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.

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

Source: News articles

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.

Aurobindo Pharma
Ltd

Dr Reddy's
Laboratories

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 2013-14, the company generated revenues of
US$ 1.3 billion.

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

pharmaceuticals across domestic and overseas markets. The 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 2013-14, the company
generated revenue of US$ 2.2 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

Andhra Pradesh produces medium grade and superior long

staple varieties of cotton. During 2013-14, the state
produced nearly 2.8 million bales (170 kg each) of cotton.

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.

Few of the major cotton producing districts in the state

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

Handloom and textile exports for undivided

Andhra Pradesh (in US$ million)
479.3

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.

CAGR
27.6%*

404.7

340.2
272.6

150.2

2006-07

149.2

2007-08

2008-09

2009-10

2010-11

2011-12

Source: Andhra Pradesh Socio-Economic Survey 2012-13,

News articles, *In Indian Rupee terms

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)
914.0

The states Krishna, Guntur, East and West Godavari

districts have good irrigation facilities which help it to
produce a large amount of rice.
During 2010-11, out of a total cropped area of 8.6 million
hectares, 4.6 million hectares was utilised for food grain
production. Around 3.2 million hectares was used for
producing cereals & millets, out of which 2.8 million hectares
was used to produce rice.
The districts of Nellore, Krishna and Guntur are very fertile,
with above average production of cereals, pulses, groundnut
and cotton.
The state produced 6.9 million tonnes of rice, 1.1 million
tonnes of pulses, 2.0 million tonnes of oil seeds and 1.5
million tonnes of cotton during the financial year 2011-12.
The central government is planning to develop Tirupati or
Chittoor as agro-based and food-processing hubs and
Visakhapatnam as the fisheries and sea-food hub.

CAGR
35.5%
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 January 2014

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 2012-13,
its revenue reached 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).

Cargill India Pvt Ltd

ITC

Andhra Pradesh Dairy

Development Cooperative
Federation (APDDCF)

Andhra Pradesh is known for its pristine beaches, sacred

places of worship, lush green forests, spicy cuisine and
hospitable people.

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.

The state continued to witness increase in domestic tourist

arrivals over the last few years.
Number of tourist increased to 115 million in 2012 from
104.2 million recorded in 2010.

Arrival of domestic tourists in Andhra Pradesh

(in million)

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.
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.
Moreover, wild life tourism can be developed in Pulikat Lake
in Nellore, the Kolleru Lake in Krishna and West Godavari
districts.

115.0

104.2

103.6

2010

2011

2012

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

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.
Source: Ministry of Petroleum and Natural Gas, News articles

Recently,
the
Visakhapatnam-Kakinada
Petroleum,
Chemical and Petrochemical Investment Region Special
Development Authority (VK- PCPIR SDA) has released the
final draft master plan and zonal development plans with the
land use proposals.
The PCPIR project would boost refining, petrochemicals
and chemical industries and also the manufacturing sectors
in the state.
The project will bring investment in the state and will help to
boost trade, revive exports, develop infrastructure and
increase employment.
HPCL is considering the setting up of a greenfield 15
mmtpa refinery-cum-petrochemical complex in the region
which would require investments to the tune of US$ 10-12
billion.

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

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

Seemandhra is rich in mineral resources which include

manganese, limestone, mica, steatite, copper, graphite etc.
Manganese ore is located across Nellore, Prakasam,
Vizianagaram and Srikakulam, mica is found around
Krishna, Nellore, Visakhapatnam etc whereas limestone is
found around Kadapa district.
During 2012-13, the state generated annual mineral
revenues of US$ 149.4 million compared to a target
revenue of US$ 177.4 million.
The total mineral revenues comprised of US$ 58.7 million
from major minerals and US$ 90.8 million from minor
minerals.
Seemandhra region has abundant reserves of uranium in
Tumalapalli village located in Kadapa. According to a study
conducted by the Atomic Energy Commission of India, the
mine is expected to have the largest reserves of uranium in
the world.
The Government of India has started exploration of sizable
uranium deposits in YSR districts in Andhra Pradesh
through M/s. Uranium Corporation India Ltd, a public sector
undertaking.

Minerals

Manganese ore

Mica

Steatite/talc

Availability across districts

Nellore, Prakasam, Vizianagaram and
Srikakulam
Krishna, Nellore, Chittoor, Ananthapur,
West Godavari, Visakhapatnam, Guntur,
Chittoor, Ananthapur,and West
Godavari
Ananthapur, Chittoor, Cuddapah and
Kurnool

Copper

Cuddapah, Guntur, Kurnool, Nellore and

Prakasam

Graphite

East Godavari, West Godavari,

Visakhapatnam and Srikakulam

Source: Indian Mineral Scenario States,

Ministry of Mines website, www.mines.nic.in

Leather

Gems and Jewellery

The state is a major producer of hides and skins. Majority of the leather production is done
in the Nellore region.
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.

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.

Steel

The state also produces steel from its Visakhapatnam Steel Plant
The company exports steel products to Japan, Germany, United States, Singapore, Dubai,
Australia and various South American countries
Apart from the plant, the government is planning to set up a public sector steel plant (Steel
Authority of India) in Kadapa.
The company will examine the feasibility of establishing an integrated steel plant in the
location within six months from the appointed date.

APTDC: Andhra Pradesh Tourism Development Corporation

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.

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)

Agency

Contact information

Andhra Pradesh Industrial Infrastructure

Corporation

6th Floor, Parisrama Bhavan

Fateh Maidan Road, Basheerbagh
Hyderabad - 500 004
Phone: 91-40-2323 7622, 2321 2798
Fax: 91-40-2323 3393, 2323 3251
E-mail: hyd@apiic.in
Website: www.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/

S No

Approvals and clearances required

Respective departments of state

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)

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

Panchayat Raj Department

Urban Development Authority
4

Site and Building Plan Approval

7 days
Town and Country Planning
Municipality
Urban Development Authority

Change of land use

Town and Country Planning

45 days

Municipality
Source: Commissionerate of Industries, Government of Andhra Pradesh

S No

Approvals and clearances required

Respective departments of state

Green
6

Consent for establishment

under Pollution Control

Consent for operation

under Pollution Control

Orange

Estimated time
7 days

AP Pollution Control Board

21 days

Red

45 days

Green

7 days

Orange

AP Pollution Control Board

Red
8

No-Objection Certificate for Fire Safety

Permission for Establishment of Distillery

10

Licence for possession and use of

Rectified Spirit

11

Licence for possession and use of

Denatured Spirit

12

VAT/CST registration

21 days
45 days

Fire Services Department

15 days
30 days

Excise Department

7 days
7 days

Commercial Taxes Department

7 days

Source: Commissionerate of Industries, Government of Andhra Pradesh

S No
13

Approvals and clearances required

Respective departments of state

Power feasibility

Estimated time
7 days

Power distribution companies

14

Power connection

15

Approval of factory plans

23 days
7 days
Factories department

16

Factory license

17

Sanction of water supply

18

Water connection

19

Permission to draw water from rivers

and/or public tanks

7 days
7 days

Vijayawada Municipal Corporation,

Visakhapatnam Industrial Water
Supply Company

23 days

Irrigation department

30 days

Source: Commissionerate of Industries, Government of 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)
Residential rent (US cents per sq ft per month)
Five-star hotel room (US$ per night)

Water cost (US$)

Cost estimate
19.8 to 127.6
US$ 1.2 to US$ 7.9
15.2 to 112.2
Commercial: 8.0 to 18.7
Industrial: 7.6 to 12.5
4.7 to 29.4
60 to 92
Industrial (Visakhapatnam): 0.37 per 1,000 litres
*Residential: 2.58 to 3.68 per annum from Household Service
Connections

Source: Vijayawada Municipal Corporation, Visakhapatnam Industrial Water

Supply Company, Property Sites, News articles, Travel Sites

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

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

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

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

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared
by Aranca in consultation with IBEF.
All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The
same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any
medium by electronic means and whether or not transiently or incidentally to some other use of this presentation),
modified or in any manner communicated to any third party except with the written approval of IBEF.
This presentation is for information purposes only. While due care has been taken during the compilation of this
presentation to ensure that the information is accurate to the best of Aranca and IBEFs knowledge and belief, the
content is not to be construed in any manner whatsoever as a substitute for professional advice.
Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in
this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of
any reliance placed on this presentation.
Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on
the part of the user due to any reliance placed or guidance taken from any portion of this presentation.