Review meeting by

Spl. Secretary & Financial Advisor, DIPP

Visakhapatnam Chennai Industrial

Corridor Development Program (VCICDP) 4th May 2018
Study Undertaken by ADB for VCIC Project
Overview of the Corridor

An extent of 60,569 Acres identified

for development the industrial nodes

1 VISAKHAPATNAM – CHENNAI
INDUSTRIAL CORRIDOR (VCIC)
• Visakhapatnam Node 7,116 Acre

• Machilipatnam Node 27,885 Acre

• Donakonda Node 25,000 Acre

• Srikalahasti-Yerpedu Node 24,191

Total 60,569 Acre

Objectives of the Corridor
Expanding Industrial Output
• Increasing Manufacturing sector's
contribution to GDP and boost exports
Expanding employment
opportunities
• Increase employment opportunities in formal
sector
Increasing labour productivity and wages
• Focus on labour productivity improvements
and increasing wages
Promoting Dynamic SMEs
• Focus on leveraging existing supply chains
VCIC has the potential to
► Increase GDP in the Corridor districts
– by 6 times
(From ~ INR. 2,000bn in 2015 to
INR. 11,600bn by 2035)
► Expand manufacturing output
- by 7 times
(From ~ INR. 1,110bn in 2015 to
INR. 7,823 bn by 2035)
► Create 11 million additional incremental
employment
(From ~ 2.9 mn in 2015 to
14 mn by 2045)
Comprehensive Master Planning and Industrial Assessment
for Visakhapatnam and Srikalahasthi-Yerpedu Node of
Chittoor District
CLUSTERs Identified

Atchthapuram Cluster

Visakhapatnam Node
Nakkapalli Cluster

Chittoor North Cluster

Srikalahasthi - Yerpedu
Node (Chittoor Dist)
Chittoor South Cluster
Comprehensive Master Planning and Industrial Assessment
for Visakhapatnam and Srikalahasthi-Yerpedu Node of
Chittoor District
In-Node / External Infrastructure being proposed

 Site Grading
 Storm Water Drainage
 Water Supply
 Sewage
 Solid Waste Disposal
 Power Supply
 Transportation
 Comprehensive Master Planning and Industrial Assessment
for Visakhapatnam and Srikalahasthi-Yerpedu Node of
Chittoor District
Key Projects Identified (As on date)
Fund required
Visakhapatnam Node Srikalahasthi -Yerpedu Node
Key Projects
(USD Millions) INR Crs. (USD Millions) INR Crs.

Utilities 67 437 63 410

Road Connectivity Enhancement 109 711 577 3751

Rail & Logistics 30 196 123 800

Trunk Infrastructure 84 543 208 1353

Facility 532 3460 1066 6930

Total 823 5347 2037 13244

Source: Master Plan submitted by M/s Surbana Jurong Pte. Ltd.

 Comprehensive Master Planning and Industrial Assessment
for Visakhapatnam and Srikalahasthi-Yerpedu Node of
Chittoor District
Details of Land :: Master Planning (As on date)
Node Cluster Total Start up Already
Land area acquired
Chittoor South 13186.10 1335.00 619.70
Srikalahasthi - Yerpedu
Chittoor North 11005.19 308.68

Atchutapuram 2746.00 758.00 1646.09

Visakhapatnam
Nakkapalli 4339.00 1106.00 2245.39

Machilipatnam 27,885.03 7080.00

Donakonda 25,000 2,450.00

Source: Master Plan submitted by M/s Surbana Jurong Pte. Ltd.

 Comprehensive Master Planning and Industrial Assessment
for Visakhapatnam and Srikalahasthi-Yerpedu Node of
Chittoor District
Visakhapatnam Node – Land Use Analysis (As on date)
Atchuthapuram Cluster Nakkapalli Cluster
Land Use Land Use
Acs % Acs %
Pharmaceuticals 947 34.0 Pharmaceuticals 393 9.0
Control Equipments 158 6.0 Aero Space & Defense 926 21.0
Medical Instruments 398 15.0 General purpose Machinery 198 5.0
Solar Panels and Modules 63 2.0 Casting and Forging 136 3.0
Defense Electronics 47 2.0 Spl. Purpose Machinery 194 4.3
Logistics 30 1.0 Logistics 51 1.0
Amenities 12 0.3 Amenities 22 0.4
Training Centre and other 20 0.7 Training Centre and other 13 0.3
supporting Facilities supporting Facilities
Residential 99 4.0 Residential 72 2.0
Proposed R&R 111 4.0 Proposed R&R 166 4.0
Green and Open Space 312 11.0 Green and Open Space 1094 25.0
Roads 510 19.0 Roads 365 8.0
Utilities 39 1.0 Utilities 34 1.0
Coastal Regulation Zone 675 16.0
TOTAL 2746 100.0 4339 100.0
Source: Master Plan submitted by M/s Surbana Jurong Pte. Ltd.
 Comprehensive Master Planning and Industrial Assessment
for Visakhapatnam and Srikalahasthi-Yerpedu Node of
Chittoor District Chittoor Node – Land Use Analysis (As on date)
Land Use Chittoor North Cluster Land Use Chittoor South Cluster
Acs % Acs %
Auto & Auto Components 2788 24.0 Building Materials 1957 13.0
Consumer Electronics 2357 20.0
Processing Apparels (High 1534 10.0
Machinery 1236 11.0
Zone Fashion)
Committed Industries 174 1.5 Proce Consumer Durables 1623 11.0
Reserve Site 234 2.0 ssing Machinery 1292 9.0
Logistics and Intermodal Hub 431 4.0 Zone
Food Processing 2589 17.0
Non - Mixed Use and Commercial 376 3.0 Committed Industries 194 1.5
Processing
Zone Reserve Site 137 1.0
Residential 584 5.0 Logistics 592 4.0
Supporting Facilities 53 0.5 Non -
Green & Open Space 310 3.0 Proce Commercial Supporting 167 1.5
Facilities
Waterbody (Including Buffer Zone) 1704 15.0 ssing
Zone Residential 910 6.0
Existing Development 291 2.0
Others HT Line Corridor reserve 62 0.5 Green & Open Space 1208 8.0
Roads 1058 9.0 Reserves and Buffer 641 4.0
Railway 65 0.5 Othe HT Lines 125 1.0
rs
Utilities 130 1.0 Utilities 225 2.0
Roads 1378 9.0
TOTAL 11562 100.0 TOTAL 14863 100.0
Source: Master Plan submitted by M/s Surbana Jurong Pte. Ltd.
 Comprehensive Master Planning and Industrial Assessment
for Visakhapatnam and Srikalahasthi-Yerpedu Node of
Chittoor District Projected Demand of UTILITIES (As on date)

Utilities Projected total demand

Atchuthapuram Nakkapalli Chittoor North Chittoor South

Water Demand 31,000 28,000 90,000 1,88,000

(m³ / day)

Sewage 19,000 15,000 57,000 1,20,000

Generated
(m³ / day)
Power Demand 230 323 1,136 1,142
(MW)

Source: Master Plan submitted by M/s Surbana Jurong Pte. Ltd.

 All projects undertaken by ADB
in the Planned VCIC Area and their Scope
 Projects Undertaken under Tranche-I

Estimated cost ADB Amount

S. No. Package No. Description
($million) ($million)
Works Contracts Awarded

VCICDP- Construction of Common Effluent Treatment (CETP) plant at

1 19.70 15.46
APIIC/01 Naidupet Industrial cluster(1 mld CETP at MPSEZ, Naidupet)

VCICDP- Providing bulk water facility and summer storage in Naidupet

2 11.40 8.95
APIIC/04 Industrial cluster

VCICDP- Augmenting utility services for Naidupet Industrial cluster. [SWD,

3 27.50 21.59
APIIC/03 power, internal road and one stop centre]

VCICDP- Distribution Network improvements for NRW reduction and 24x7

4 59.10 46.39
GVMC/02 supply in GVMC area.

VCICDP- Augmenting power distribution capacity for meeting Industry

5 41.96 32.94
APTransco/01 demand at Kapuleppada, Chandanada and Achutapuram, locations

VCICDP- Augmenting power distribution capacity for meeting Industry

6 51.19 40.18
APTransco/03 demand at Rachagunneri, Naidupeta and Yerpedu locations

Total Awarded (i) 210.85 165.51

Projects Undertaken under Tranche-I

SCOPE of the projects

Sub Projects 1-3 :
 Up-gradation of internal infrastructure in Naidupeta Multi Purpose SEZ of
Yerepedu Kalahasti node in Chittoor District.
 CETP of 1.0MLD is planned to control the Pollution and create a cleaner
environment and to facilitate the existing and new industries to treat their
effluents collectively with low cost.
 As there are no nearby site for disposal of treated effluent, the CETP shall be
operating on a zero liquid discharge (ZLD) mode.
 MPSEZ is a new development, all the required internal infrastructure
components such as internal road network, storm drains, power transmission
and communication lines, and internal water distribution pipelines are
planned.
 A Bulk water supply system is being taken up to convey the allocated 0.29
thousand million cubic feet water from Telugu Ganga Canal (at 21 km).
 These internal infrastructure components in Naidupeta will provide enhanced
services to the existing manufacturing units and also attract several new units
to these areas.
 Projects Undertaken under Tranche-I

Sub – Project 4:
SCOPE of the projects
 To providing good quality urban services in one of the feeder cities of the proposed
industrial nodes/clusters under VCICDP i.e., Visakhapatnam.
 The sub-project is proposed to augment urban infrastructure and improve service
delivery.
 The sub-project addresses the difficulties of heavy transmission and distribution losses,
high percentage of nonrevenue water (NRW, as high as 40%), infrequent, interrupted,
intermittent supply and non-metered connections leading to inappropriate recognition of
revenue.
 Water received from Raiwada is treated at the Narava water treatment plant (WTP) and
the treated water is distributed in the northwest sector of the city, with a population of
310,000 (2011 census), and is projected at 924,200 in 2044. There are about 41,500 consumer
connections in the zone. The projected water demand of the zone is 21 MGD in 2029, and
35 MGD in 2044.
 It is proposed to take up the First Package of the water supply system improvements in
the city by, (i) laying transmission pipeline from Raiwada reservoir to Narava WTP, and
(ii) providing continuous pressurized water supply in northwest zone of GVMC and
Anakapalle. The first package envisages laying 59.4 km ductile iron pipeline of size
1600/1100 millimeter (mm) with the related flow measurements, and supervisory control
and data acquisition (SCADA).
 Projects Undertaken under Tranche-I

SCOPE of the projects

Sub Projects 5&6:
 One of the key drivers for industrial growth in the VCIC would be availability of reliable
quality power supply to industries.
 Power transmission has bottlenecks with expected growth in the industrial demand along
the VCIC and the overall transmission expansion plan for Andhra Pradesh.
 It is identified and prioritized construction and upgrading of substations at 6 locations and
associated related transmission lines within VCIC.
 The two sub-projects aims at the installation of substations at 6 locations and associated
transmission lines. Four of these substations are at voltage levels of 220/132/33 kilo volts
(kV), one substation is at 220/132 kV, four substations are at 132/33 kV and one substation
is of 400/220 kV along with associated transmission Infrastructure.
 Gas- Insulated Substations (GIS) are proposed at two locations, Kappuluppada and
Atchutapuram and air-insulated substations in other locations, namely
Nakkapalle/Chandanada, Yerpedu, Rachagunneri, Naidupeta.
 There will be an improvement in the voltage profile within the VCIC region and the projects
would result in reduction of losses.
Progress of works : APIIC/03
Augmenting utility services for Naidupet Industrial cluster

Roads, Culverts and Drains

33KV sub station One Stop Service Centre

 Industrial Intensity of the industries likely to come up
around the NODEs
Industries envisaged in the MOUs already executed and preferring the location of the NODE
Node
Node Sector No.of Industries Employment Investment Cr
Auto Components 4 20000 2050.00
Chittore North: Bulk Drugs, Pharmaceutical 1 150 50.00
Auto & Auto components, Chemical & Petro Chemicals 2 480 150.00
Consumer Electronics, Electrical & Electronics 1 2000 100.00
Machinery, Engineering 1 100 20.00
Food, Agro, Marine Products 4 2660 260.00
Chittoor Glass & Ceramics 5 5295 697.10
Chittore South Industrial Park 2 1700 250.00
Building Materials, Machinery and Equipment Manufactures 1 250 120.00
Apparels (High Fashion), Other Industries 31 45044 9588.00
Consumer Durables, Power Generation 1 1000 1500.00
Machinery. Textiles and Textile Related Industries 3 5750 530.00
Grand Total 56 84429 15315.10
Auto Components 2 3400 2520.00
Atchuthapuram : Bulk Drugs, Pharmaceutical 4 2250 2380.00
Pharmaceuticals, Control Chemical & Petro Chemicals 7 7280 2795.00
Equipment, Medical Defense and Aero 2 20000 20000.00
Instruments, Solar Panel Electrical & Electronics 2 1800 350.00
Modules, Defense Fertilizers & Pesticides 1 300 120.00
Electronics Food, Agro, Marine Products 1 551 1000.00
Visakhapa Industrial Park 7 46500 10112.30
tnam Infrastructure 3 4300 385.00
Nakkapalli :
Pharmaceuticals, Aero- Machinery and Equipment Manufactures 1 1400 510.00
Space and Defense, Non Metallic Mineral 1 80 40.00
General Purpose Other Industries 4 5050 2251.10
Machinery, Casting & Power Generation 3 4550 4112.00
Forging, Spl. Purpose Textiles and Textile Related Industries 1 800 100.00
Machinery. Grand Total 39 98261 46675.4
 MILE STONES - Time Lines

Sl. Mile Stone Target Date Achieved Current Status

No. Date

1 Establish APICDA 31.05.2018 04.01.2018 APICDA Bill was enacted and Proposals for
enacted establishment are under active consideration of
Govt.

2 Notify VCIC under APICDA 31.05.2018 04.01.2018 VCIC has been notified under APICDA.

3 Establish Commissioner’s Office 30.06.2018 Staffing Pattern of Commissioner’s Office is

being prepared

4 Master Plan for Trunk Infrastructure 31.03.2018 Master Planning Consultants submitted the
Master Plan on 20.04.2018 and expected to be
approved by the Govt. By end of May.

Tranche-I 31.03.2018 15.01.2018 One project is commenced

Start of Construction
5 Tranche-II 31.03.2019 Shelf of projects is identified and will be
Trunk Infrastructure
submitted to Govt.

6 Completion of Tranche-I 31.03.2019 Expected to be completed by 31.03.2019

Construction -
Trunk Infrastructure Tranche-II 31.12.2020 Expected to be completed by 31.12.2020
Slide 19
 THANK YOU

Start-Up Area - Nakkapalli Cluster

Start-Up Area - Atchuthapuram Cluster

Start-Up Area – Chittoor North Cluster Start-Up Area – Chittoor South Cluster