dth

Andhra Pradesh
Doing Business with
The Best Investment Destination
A-201, Secretariat,
Hyderabad - 500 022,
+91-40-23453977 Fax: +91-40-23451092
e-mail: apinvest@ap.gov.in
Andhra Pradesh, India.
Phone:
www.apinvest.co.in
Andhra Pradesh
Doing Business with
Commissionerate of Industries
Government of Andhra Pradesh
Chirag Ali Lane, Abids, Hyderabad 500 001.
Andhra Pradesh, India.
Phone: +91-40-2344 1666, 2344 1601 to 06. Fax: +91-40-2344 1611
e-mail: comm_inds@ap.gov.in
www.apind.gov.in
Published By:
FEDERATION OF INDIAN CHAMBERS OF COMMERCE AND INDUSTRY
Andhra Pradesh State Council
8-2-699/1, 3rd Floor, KR Towers, Road # 12,Bajara Hills, Hyderabad 500 034.
Andhra Pradesh, India.
Phone: +91-40-2339 5275, 2339 5276 Fax: +91-40-2339 5275, 2339 5276
e-mail: ficciap@ficci.com
www.ficci.com
and
C O N T E N T S
Doing Business with Andhra Pradesh 3
Geographic Location
Resources
Manufacturing Sector
Infrastructure
Macro Aggregates
Government Policies and Initiatives
Project Implementation
Growth Sectors
Key Contacts
Andhra Pradesh Advantage
5
7
13
17
27
59
69
107
123
131
I am happy to share with you that with the objective of providing best possible
information to the investors, Industries Department and AP Invest has brought out this
Booklet 'Doing Business with Andhra Pradesh'. I am sure that the contents of this book
will provide incite into congenial industrial climate built in Andhra Pradesh in India.
While giving top priority to Agriculture, its allied sectors and Irrigation, the State
Government is exploring the possibility of setting up of more and more establishments in
Trade, Commerce and Industry to create, employment to youth in particular and the rural
population in general. A separate department of Infrastructure and Investments is created
to promote infrastructure development through Public-Private-Partnership. APInvest is
a nodal organisation, created with an objective of facilitating global investments to flow
into Andhra Pradesh. We are striving to evolve new strategies and policy initiatives and
minimize the cost of production through technical efficiency and effective management
in every sector. We have been striving to compete with global standards in enhancing
productivity both qualitatively and quantitatively,
I hope this endeavor of ours will focus its attention to bring about awareness among
Business Leaders, Investors, Entrepreneurs and officials of various departments about
the huge investment opportunities as well as the infrastructure facilities in Andhra
Pradesh. I also hope that the book would be a source of information for the entrepreneurs
both within the country and abroad, and help the entrepreneurs to come forward with
huge investments in the core sectors of development all over Andhra Pradesh.
I wish the efforts all success.
10th April, 2007
Dr. Y. S. RAJASEKHARA REDDY
Chief Minister of Andhra Pradesh
(Y. S. RAJASEKHARA REDDY)
MESSAGE
Strategic Geographic
Location Advantage
Andhra Pradesh is strategically and caressed by Bay of Bengal in east.
located in India. It has easy access to The state also shares its boundaries
all parts of the country. Country’s with Tamilnadu and Karnataka in the
capital, New Delhi is less than two south and with Maharashtra in the
hours fly from Hyderabad. Populous west. Hyderabad, the State capital is
and Business states like Uttar Pradesh, centrally located and exudes a huge
Gujarat, Maharashtra, West Bengal, potential to be transformed into a
Tamilnadu and Karnataka are at just 1 transit hub of South Asia. It has in the
to 1½ hours flying distance. Strategic recent years become prominent as
location of the state is very preferred destination for leading
advantageous for the business to have software services companies
the best domestic market in country,
easy to reach all corners of the
country.
Andhra Pradesh is known as Gate of
South-East Asia. Easy access to the
most economically developed
countries like Japan, Philippines,
Singapore, Malaysia, Hong Kong,
Thailand, New Zealand, Australia. Visakhapatnam port in AP is the
largest cargo handling port in the
Andhra Pradesh is richly endowed with country which provides a major share
natural resources and competitive of cargo to south east Asian countries
advantages with geographical area of and Australia.
274.40 lakh hectares being the fourth
largest state accounting for 8.37% in The State have easy access of less
India with population of 81.60 million than 4 hours fly to Global Oil capitals
being the fifth most populous state of Gulf countries and another 4-5
accounting for 7.4% in the country. hours fly to European majors.
The state lies between 12041’ and 220 Strategic geographic location of the
longitude and 770 and 84040’ latitude State is very advantageous for the
and is bounded by Madhya Pradesh, trade promotion and create sustained
Orissa and Chattisgarh in the north global potential market.
Doing Business with Andhra Pradesh 5

Advantage
Andhra Pradesh
Andhra Pradesh, the Business State is
the most preferred investment destination in the country
7
Why Andhra Pradesh is on the
Global Radar?
Andhra Pradesh is a Mineral house
of the country
,
Large base for Agro and Food ,
, processing
,
,
,
,
,
,
production in the country. Largest sheep
production. Pioneer in Oil palm
cultivation. Highest in production of
Mango, Chillies and turmeric. Highest in
Andhra Pradesh is a fifth populous state in brackish water shrimp and fresh water
India with a population of 7,62,10,007, prawn production.Highest productivity in
which is 7.43% of the countries Coarse cereals, Jowar, Maize and Bengal
population. It is fourth largest state with gram. Second highest fresh water fish
an area of 2,75,045 Sk. Kms constituting production. Second Largest producer of
8.37% of the country’s area. Andhra Horticulture products. Second longest
Pradesh is strategically located in the coastline, Andhra Pradesh become the
Country having an easy access to all parts pioneer in the marine exports in the
of the country and Gateway to South East country. The State is the first maritime.
Asia & Australia. The State is blessed with
seven agro climatic conditions and The state has about Rs 5,000 crores
variety of soils poised to large agriculture investment in the food processing sector
production. The state has 23 districts with contributing 20% of the total existing
Hyderabad city as the Capital, 7 Municipal investments in the state. The annual
Corporations, 79 Revenue Divisions, production in this sector is about Rs.9260
1126 Mandals and 21,908 Gram crores contributing 20% of the total
Panchayats. industrial production in the state.
.Agriculture will experience a quantum
The total Gross State Domestic Product leap in growth, achieving an average
(GSDP) is Rs 2,258 billions. Andhra annual growth rate of 6 per cent in real
Pradesh one among the five large and terms over the next 20 years.
progressive economy states and its fast
growing economy is first in the country.
The percapita income of the State
increased from Rs 17932 in 2001-02 to World’s largest single deposit of
Rs 25,526 in 2005-06. Barytes in Kadapa
1st in granite reserves in the country
1st in production and promoting
various colours of lime stone slabs for
Andhra Pradesh is primarily an agro- flooring.
based state and employs 65% of the 2nd largest store house of mineral
state’s population. It has about 115.32 resources in India
lakh operational land holdings out of
which 94.41 lakh are marginal farmers 2nd in value of mineral production - 9-
and 25.18lakh are Small farmers. The 10% of country’s mineral revenue.
contribution of primary sector is 27%. 2nd largest Bauxite deposits in the
Andhra Pradesh ranks 2nd in producing country
Value Added food products and 2nd in occurrence of uranium deposits
beverages with country 10% share. Per in the country
worker output in the food-processing 2nd longest coastline of 974 kms – rich
sector in Andhra Pradesh is very high. beach sand resources
The state has highest egg and broiler 2nd largest producer of cement – 59
plants with 23 million tones p.a.
AP - Advantage
8 Doing Business withAndhra Pradesh
During the last 3 years the capacity
addition of 2080 MW is highest in the
Country. The state achieved highest
Andhra Pradesh is very strong in the Plant Load Factor of 89.7% in the
mineral sector resulting in creating country. Andhra Pradesh is consistently
strong base for Thermal Power plants, strong in the power sector in India due to
Steel plants, Aluminum plants, ceramic advantageous mix of Thermal, Hydro
industries, Cement plants, Granite and Gas power general. Availability of
industries etc. huge resources of Natural Gas, Coal and
perennial rivers with good monsoons are
Due to the presence of world class the major advantages for the power
Research & Development Institutions in generation in the State.
the state and availability of large pool of
skilled manpower at competitive prices
Hyderabad became the Bulk Drug
Capital of India with a contribution of Reliance Industries Limited (RIL) struck
more than 1/3 rd of the country’s Bulk 9 trillion cubic feet (tcft) of gas reserves
Drugs production. in Krishna Godavari basin which was
found the biggest gas find in the country
constituting 50% in the country. RIL is
Strong business presence of Global proposed to produce 40 MMSCMD gas
Software giants like Microsoft, Oracle, for the next 20 years.
IBM, GE Capital, Satyam, Wipro,
Infotech, Infosys, Metamor, Motorola,
Ericsson, Keane, Portal Player, ICICI, Hyderabad International Airport is the
Vanenburg, Computer Associates etc. first green field Airport in the country. It is
Andhra Pradesh has become a leading being designed to handle 12 million
state in promotion of Software industry passengers per annum with 4.2 Kms run
in the country. Registered the country’s way, the longest in the country. The
highest growth rate of 65% in Software project is in the area of 5,400 acres of
exports. The state was committed in land in Shamshabad, which about
creating IT infrastructure, HRD and 20 Kms from the existing Hyderabad
investment climate. Airport with the project cost of Rs 2283
crores and scheduled to complete by
Andhra Pradesh is a leading producer of 2008
Cotton with average production 2.6
million bales annually. 2nd rank in
production of Paper and Machinery
Equipment, 3rd rank in production of
chemicals, 4th rank in production of
Wood, Rubber and Plastic products in
the country.
Andhra Pradesh is the 3rd largest power
utility in the country. APGENCO’s Hydel
Installed Capacity is highest in India. The
power installed capacity is 11,134 MW.
Bulk Drug Capital of India
Huge gas findings in Krishna-
Godavari basin
Fast growing IT/ITES economy
World Class Infrastructure
AP - Advantage
Doing Business with Andhra Pradesh 9
Port
Education
Road Tourism
Railway
covers a railway network of 4752 Kms in
the State and surroundings. Number of
Super fast Trains are operated to all
major metro cities in the country. 3754
Visakhapatnam Port is a prestigious Kms of Broad Guage, 508 Kms of Meter
major port in the country for its largest Guage and total 748 Railway Stations
cargo handling of more than 60 million are covered in the state railway network.
tones per annum. Kakinada deep sea
water Port in East Godavari District is a
state port which is presently reducing AP is home to many specialized and
the cargo load of Visakhapatnam. The internationally renowned academic
port can handle 10 million tonnes of institutions like Indian School of
cargo. The upcoming Gangavaram port Business (set up in collaboration with
which is 15 kms from Visakhapatnam Kellog Institute, USA), producing World-
port to handle 35 MTPA will be the Class management graduates. The
deepest port in the country scheduled to Administrative Staff College of India has
commence its operations by 2008. been India’ s oldes t advanced
Krishnapatnam port in Nellore District is management training institute for senior
a Rs 1,432 crore project will commence managers in reputed companies and
its operation by 2008 committed to senior bureaucrats in the Government.
export 14 million tones per annum. All The other prestigious institutions are
minor ports of Andhra Pradesh handle Na t iona l Ins t i tut e of Fa shion
15 million tonnes of cargo which is 2nd Technology, National School of Law,
highest cargo handling state in India. International Institute of Information
The state has planned to develop ports Technology. National Institute of Rural
in the State to handle 173 million tones De a h a r l a l Ne h r u I n s t i t u t e o f
of cargo in the next 15 years. Development Banking.
The State has an excellent road network Andhra Pradesh is the best tourist place.
with backbone of 4-lane roads. All There are number of tourist places in the
industrially developed areas are well state covering historical structures,
connected with National Highways / Heritage & Culture, Arts & Crafts,
State Highways. Andhra Pradesh has Cuisine, Fairs and Festivals which
1,78,747 Kms Roads out of which the include
length of National Highways is 4,014 Hyderabad - Charminar, Golconda,
Kms and State Highways is 8,763 Kms. Salarjung Museum, Ramoji film City,
Road network of Andhra Pradesh is very Hitec City, NTR Gardens etc.
large and connects all small villages in Visakhapatnam - Rishi Konda,
the State.Golden corridor project of B h imu n i p a t n am, Ka i l a s a g i r i ,
Government of India covered 1014 Kms Arakuvalley, Borra Caves, Simhachalam
of NH - 5 in the State Chittoor - Tirumala Tirupati
Devasthanam, Chandragiri Fort,
Srikalahasthi, Horsley Hills
Secunderabad is the Head Quarters for Ananapur - Sri Satya Saibaba Institutes,
the South Central Railway network and Lepaskshi
AP - Advantage
10 Doing Business withAndhra Pradesh
Agency, National Geo-physical
Research Institute, Centre for DNA
Guntur and Krishna Districts - Fingerprint, Central Institute of Tool
Nagarjunsagar Dam, Nagarjuna Konda, Design, ICRISAT, National Institute of
Ethipothala Water falls, Amaravathi, Nutrition, Nuclear Fuel Complex. AP is
Krishna Barriage perhaps the only state in the country in
Warangal – Kakatiya Fort, Thousand post independence India to have
Pillar Temple, Ramappa Temple consciously developed local technocrat
Kurnool – Belum Caves, Srisailam entrepreneurial base and with this
support only that large Public Sector
Due to the continuous efforts of the Units like BHEL, HMT, HAL, MIDHANI,
Government in promoting the tourism BDL, BEL, HCL, Praga Tools, VSP,
sector in the state, domestic tourist BHPV, IPCL etc. could build up their
arrivals have significantly increased from ancillary (vendor) network.
63.3 million in 2002 to 84.9 million in
2004, similarly, the International Tourist
arrivals also increased from 2.10 lakhs in
2002 to 5.01 lakhs in 2004 Government of Andhra Pradesh has
promoted specialized industrial parks on
sector basis. ICICI Knowledge Park,
Apparel Park, Hardware Park, Hitec City
AP is home to many large Public and in two Phases, Jawaharlal Nehru
P r i v a t e S e c t o r c o m p a n i e s Pharma Park, Biotech Park, Export
manufacturing diverse products like Promotion Industrial Park, Exclusive
ship building, fertilisers, Hi-precision industrial estate for the AP Women
ma c h i n e t o o l s , d r u g s a n d Entrepreneurs, Auto Park, IT Parks,
pharmaceuticals, cement, paper, large Food Processing Park and Leather Park.
power generating equipment, electronic In addition to the above, Government of
hardware, long range missiles, castings AP is promoting Special Economic Zone
& forgings, defence electronics etc. in Visakhapatnam and Kakinada, Mega
Industrial Chemical Estate in
Visakhapatnam, IT Parks in Hyderabad,
Visakhapatnam, Warangal and
AP is home to a large number of Vijayawada, Gems & Jewellery Park in
internationally renowned civil and Hyderabad, Leather Parks and Apparel
defence research establishments, which Parks across the state.
include Defence Metallurgical Research Andhra Pradesh is a home for 3680 large
Laboratory, Defence Electronics and Medium Enterprises with an
Research Laboratory, Defence Research investment of Rs 53,339 crores and
and Development Laboratory, Indian 1,47,217 Small Enterprises with an
Instt. of Chemical Technology, Centre investment of Rs 5,098 crores. The
for Cellular and Molecular Biology, exports from the state is growing at a
Central Institute of Plastic Engineering rate of 20% annually.
Technology, National Remote Sensing
Specialized Industrial Parks
Industry
Research & Development
AP - Advantage
Doing Business with Andhra Pradesh 11
Investor friendly industrial
investment promotion policy
,
,
,
,
,
With all the efforts and initiatives of the
Government and based on the
availability of the resources, large
industrial base and infrastructure in the
In order to promote investments in the State could attract investments
state, Government of Andhra Pradesh proposals of Rs 1,96,364 crores since
has announced vibrant industrial and August 1991 and ranks 3rd in the
investment promotion policy 2005- country.
2010 covering various fiscal and non- Government of Andhra Pradesh was very
fiscal incentives including keen and committed in creation of
world-class infrastructure, framing
Providing infrastructure at the investor friendly policies, simplifying the
doorstep of the industry laws, rules, procedures and
Reimbursement of power @ Rs 0.75 documentation for making Andhra
per unit for eligible industries and Rs Pradesh the foremost-industrialized
1.00 per unit for eligible food state in the country.
processing industries Andhra Pradesh becomes the best state
Reimbursement of 25% of the VAT for the investments. Government of
paid by the industry for a period of 5 Andhra Pradesh appeal to all the
years investors to investment in the state as
the banking system in the state/country
100% stamp duty exemption for the is flush with funds and no dearth of
registration of land & building / leased funding for a right project. Capital
property for industrial use markets are booming and the rupee has
been appreciating against dollar. It is the
Tailor made benefits for the mega right time for the investor to invest in AP.
projects with investment above Rs
100 crores depending on the nature Andhra Pradesh – Ideal investment
of project and creat ion of destination of India awaits you… …
employment.
AP - Advantage
12 Doing Business withAndhra Pradesh
Macro Aggregates
Andhra Pradesh
Andhra Pradesh will be a $300 billion economy
by the year-end 2010
13
Fast growing per capita income
17932 19087
21372
23153
25526
2001-02 2002-03 2003-04 2004-05 2005-06
(Rs )
43.5
53.55
66.51
76.21
81.6
1971 1981 1991 2001 2005
(millions)
Population
Large population
is a best size of
potential market
GSDP at current prices of 1993 - 94
140119
151482
163385
184463
202576
225892
46616 48292 47545
55481 58599 64914
29400 32040 36787 40349 45058 49759
64103 71150 79053
88633
98920 111219
0
50000
100000
150000
200000
250000
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
GSDP Primary Secondary Territory
(Rs crores)
c Fast G o ing E o omy r w n
2001-02 2002-03 2003-04 2004-05 2005-06
Contribution of manufacturing sector in total GSDP
18933
21051
22936
25485
(Rs crores) 27968
Fast growing manufacturing sector
Growth of per capita
income enhanced the
purchasing capacity
Strong Manufacturing
Sectors
Pharmaceuticals & Bulk
Drugs
Food & Agro Processing
Industries
Biotechnology
Iron & Steel, Paper,
Cement, Sugar, Cotton
Spinning, Textile, Granite,
Fertilisers & Chemicals,
Hitech manufacturing,
Engineering, Electrical &
Ceramics
IT / Hardware
Macro Aggregate
14 Doing Business withAndhra Pradesh
Srikakulam
Vizianagaram
Visakhapatnam
East
West Godavari
Godavari
Krishna
Guntur
Prakasam
Nellore
Chittoor
Anatapur
Kadapa
Kurnool
Mahabubnagar
Ranga Reddy
Hyderabad
Medak
Nizamabad
Karimnagar
Adilabad
Nalgonda
Khammam
Warangal
4491
5.8
2.54
14099
11.2
3.83
3666
6.5
2.23
12982
10.8
4.9
10297
7.7
3.8
11146
8.7
10963 4.19
11.4
4.47
7048
17.6
3.06
6956
13.1
2.67
5150
15.4
2.60
7939
15.2
3.75
6934
19.1
3.64
6918
17.7
3.53
6211
18.4
3.51
6078
14.2
3.25
6280
12.9
3.25
8806
11.8
3.49
4906
8.0
2.35
7614
9.7
2.67
5227
16.1
2.49
7719
16
2.58
10415
7.5
3.58
12620
0.2
3.83
District Economic and Demographic Profile
Primary 27%
Secondary 23%
Tertiary 50% Sectoral
Contribution of
GSDP
Top 7 GSDP districts
Industrial Hubs
GSDP Rs 2,25,892 crs.
Area 2,76,754 Sq. Km
Population 81.60 million
Density 295 per sq. km
Per capita income Rs 25,526
GSDP in Rs crores
Area in ‘000 Sq. kms
Population in million
Macro Aggregate
Doing Business with Andhra Pradesh 15

Resources
Andhra Pradesh
Andhra Pradesh is the leading producer of
Agriculture / Horticulture crops
17
! Andhra Pradesh ranks first in productivity of crops like coarse
cereals, Jowar, Maize and Bengal gram.
! Andhra Pradesh ranks 2nd in producing Value Added food products
and beverages with country 10% share. Per worker output in the
food-processing sector in Andhra Pradesh is very high
! The state is very strong in the crops like Cotton, Rice, Groundnut,
Pulses and Bajra.
Andhra Pradesh is endowed with
bountiful natural resources with good
soil and a diversified cropping pattern.
The State is rightly called “A RIVER
STATE’ as it is blessed with major river
system like Godavari, Krishna, Pennar,
Vamsadhara and 36 others. The major
irrigation systems are fed by these rivers.
Andhra Pradesh is primarily an agrobased
state and employs 65 % of the
state’s population. . It has about 115.32
lakh operational land holdings out of
which 94.41 lakh are marginal farmers The State’s water share of dependable
and 25.18lakh are Small farmers. The flow at 75% is estimated at 2,746 TMC.
average size of land holding is 1.25 hect. This beaks up into 1480 TMC from the
Around 15 percent (average Godavari River system, 811 TMC from
contribution) of AP’s GDP comes from the Krishna, 98 TMC from Pennar and
agriculture. The state enjoys a position the rest from other rivers. Entire
of prominence in respect of crop dependable water from Krishna River is
production. harnessed through construction of
several reservoirs and barrages. Yield
from Godavari River being utilised to
720 TMC and surplus flow aggregating
to an average of 3000 TMC are flowing
into the sea. Total utilization of river
yields is works out to 1700 TMC only and
thus there is vast scope of tapping water
resources for creating irrigation
potential.
Resources
George W Bush, President of USA on a visit
to ANGR Agricultural University
18 Doing Business withAndhra Pradesh
! The State is pioneer in Oil palm cultivation – 4.1 lakh hectares
! The State is 1st in sheep production
! The State ranks 1st in area and production in Mango, Oil palm,
Chillies and turmeric
! The State ranks 1st in egg (1,505 crores p.a) and broiler production
Andhra Pradesh has the diverse agro- vegetable purees, pastes and powers,
climatic conditions in different parts of frozen fruits and vegetables, dehydrated
the state is conducive to growing all products, oleoresins and cold chains.
kinds of tropical and sub-tropical fruits Palm cultivation and oil processing
and vegetables. Andhra Pradesh is one plants are already coming up
of the more progressive states with capitalizing on the warm, humid
farmers adapting quickly to modern and conditions in the villages close to the
innovative practices to improve coast.
productivity. The state ranks 3rd in Owing to a good seasonal rainfall
production and productivity of paddy. received copiously across all districts,
Economy of the AP continues to be agricultural operation could take place
predominantly agrarian. The in a record area. The area sown under
dependence of rural labour force on Food grains have increased to 70.20
agriculture and allied activities is quite lakh hectares with production of 151.51
evident and is likely to continue on the lakh tones. Andhra Pradesh ranks first in
same in the near future. Apart from the productivity of crops like coarse
direct impact of agricultural growth on cereals, Jowar, Maize and Bengal gram.
generation of rural employment and The gross area irrigated in the Stated
incomes its significant secondary increased to 50 lakh hectares, the major
linkages with the development of rural share of irrigated area under wells
non-farm sectors are more crucial. accounts 51.40% followed by canals-
Trade in agricultural outputs and inputs 34.7% and by tanks by 10.3%. Andhra
and services required by it and Pradesh ranks 1st in area, production
processing of its products open up and productivity of oil palm
additional and more significant avenues development. An area of 4.10 lakh
for labour absorption. Andhra Pradesh hectares has been identified as potential
being an important producer of for oil palm cultivation in 11 districts in
Groundnut, Cotton, Chillies, Sugarcane the state.
etc., and quite a number of Horticultural
crops, such secondary linkages of
agriculture assume added importance
to its rural economy, more so now in the
context of new Agricultural Policy
initiatives taken up by the Government.
New investments in the sector focus on
producing fruit concentrates and pulp,
Resources
Doing Business with Andhra Pradesh 19
! The State ranks 1st in production ! 2nd in area and production in
of brackish water shrimp and Citrus and Coriander
fresh water prawn ! 2nd in productivity and
! 2nd in production of fresh water production of cotton
fish ! 1st in paper production with 5.2
! 2nd longest coastline of 974 kms lakh tones per annum
The state is implementing various loose flowers.
schemes with main thrust on fruits & Andhra Pradesh is the Horticulture bowl
plantation crops, hybrid vegetable and of India with enterprising farming
seed distribution, floriculture under community, varied agro climatic zones,
controlled conditions, spices & variety of soils coupled with endemic
condiments, medicinal & aromatic irrigation sources, the State is a front
plants, mushroom cultivation, precision running producer of variety of fruits,
farming, tissue culture, leaf analysis etc. vegetables. Horticulture crop is the
The activities include area expansion, besting means for crop diversification
training on latest technologies, pre and and improving productivity and returns,
post harvest trainings, Special emphasis nutritional security, employment
on oil palm development. opportunities raw material for agro
Cashew is being encourages with high processing industries. The state could be
yielding grafts and strains /selections. the most preferred destination to register
Cashew is a dollar-earning crop, hence healthy growth in food processing
the cultivation promoted in an area of 706 industry driven mainly by export demand
hectares. in the next 10 years. The area under
Andhra Pradesh holds 1st rank in Chillies horticulture is 16 lakh hectares with an
and Turmeric in area, production and annual production of 130 lakh tonnes
productivity. Considerable increase in and 1200 million coconuts. AP hold 2nd
productivity of spices has been reported in citrus and coriander, 3rd in cashew, 4th
in research stations. The need of the in flowers and 5th in grapes, banana,
hours is effective transfer of technology to ginger and guava.
progressive farmers.
Floriculture sector has been identified as
most focused segment of Horticulture. It
is proposed to set up 8 units of green /
policy houses of 560 sq. meters for
production high value flowers like
carnations, gerbera, anthurium etc.
under controlled conditions with an In order to bring Agriculture and allied
object to explore the export potential. It act i v i t ies under one umbrel la,
was also proposed to set up 1269 units Government have set up Agriculture
for production of chrysanthemum, Technology Mi s s ion under the
jasmine, rose and marigold in bulk and as Chairmanship of Chief Minister.
Agriculture Technology Mission
Resources
20 Doing Business withAndhra Pradesh
Mahboobnagar, Gherkins
Rangareddy, Medak,
Warangal,
Ananthapur and
Nalgonda
Vijayawada Mango
Mango &
Grapes
RR, Medak and
Mahboobnagar
Mango
Pulp &
Vegetables
Chittoor
Zone Crop
! 4th in area and production in flowers
! 4th in productivity of pulses and groundnuts
! 4th in the milk production ( 72.57 lakh MT)
! 5th in area and production in grapes, banana, ginger and guava
! 5th in production of marine fish and shrimp
Agri Export Zones Meat Poultry & Egg
Animal Husbandry is one of the rapid
Government of India and Govt. of AP have expanding sector playing a significant
jointly set up 4 Agri Export Zones in the role in the rural economy by providing
state to boost exports and encourage gainful employment to a large number of
private investment. small / marginal farmers and agricultural
labourers and raising their economic
status. Livestock sector contributes
7.27% to GSDP. Andhra Pradesh has the
distinction of much diversified livestock
resources in seven agro climatic zones
with different production systems. Live
stock farming is one of the most
sustainable and dependable livelihoods
as an alternative to their dependable
resources in rural areas. Over the past 50
years, the state has undergone a
metamorphic change and emerged as a
pioneer in the livestock and poultry
production. Poultry farming in AP is most
dynamic and fastest growing
The annual milk production is 72.57 lakh
metric tones and state stand 4th position
in the country.. The state is known as egg
basket of the India with an annual
production of 1,505 crore eggs. It stands
1st position. It also stands 1st position in
sheep population and 5.31 lakh families
are being benefited from the sheep
sector. Government has helped in
channelising all efforts and resources for
a common goal to reach self-sustainable.
AP has achieved significant growth in the
areas of livestock breeding, health care,
fodder management, small ruminant
development, poultry production and
human resources development.
Resources
Doing Business with Andhra Pradesh 21
Fisheries Water
Forestry
India’s first Industrial Water Supply
Andhra Pradesh ranks 1st in India in Scheme was implemented in
production of brackish water shrimp and Visakhaptnam. Government of Andhra
fresh water prawn, 2nd I production of Pradesh, sensing the critical need of a
fresh water fish and 5th in production of reliable source of water supply to cater to
marine fish and shrimp. Nearly 10 lakh the upcoming projects, commissioned
tonnes of fish / prawn per annum is the APIIC to augment and implement
produced. The state is contributing the Visakhapatnam Industrial Water
about Rs 2,500 crores by way of marine Supply Project (VIWSP) on a
export which is nearly 40% of the marine commercial format. The US $ 144
export from India. The fisheries sector is million VIWSP facilitates bulk supply of
providing direct and indirect 385 million liters per day of water from
employment to over 14 lakh person, river Godavari to be conveyed through a
especially in the rural areas. 56 km long pipeline and 153 km long
Yeleru left main canal.
The State has earmarked allocation of 5
For e s t de v e lopment a c t i v i t i e s TMC water each from the Yeluru
commenced on a really big scale in reservoir and Godavari river water for
Andhra Pradesh. Forestry programmes industrial use. Yeleru Left Bank Canal
involve raising of economic plantations p r e s e n t l y s u p p l i e s w a t e r t o
and quick growing species, large areas Visakhapatnam Steel Plant, NTPC. A
of mixed deciduous forests of poor s p e c i a l p u r p o s e v e h i c l e , t h e
quality were cleared and planted with Visakhapatnam Industrial Water Supply
Teak, Eucalyptus and Bamboo and Company (VISCO) has been formed to
more recently high yielding varieties of design, construct, operate and maintain
Cashew are being planted on a large the project facilities on a BOOT basis.
scale. L&T and ECC Group of Chennai have
completed the 56 km pipeline to pump 5
TMC of water from river Godavari into
Yelueru main Canal.
Government of AP issued orders that
10% of water should be reserved for
the industrial use in all irrigation
projects in the State.
Misc. 3,01,069
Sandal wood 2,872
Bamboo 44,109
Coffee 142
Avenue Plantation 11,732
Red sander 2,791
Cashew 21,745
Cashrina 29,413
Eucalyptus 77,204
Teak 1,09,610
Area planted
hectares
Species
Resources
Sri Sailam Dam
22 Doing Business withAndhra Pradesh
State has many other industry Centres of Excellence
focused training institutes 1. Centre for Cellular and Molecular
1. National Institute of Fashion Biology (CCMB)
Technology 2. Centre for DNA Finger Printing and
2. Central Institute of Tool Designs Diagnostics (CDFD)
3. National Academy of Legal Studies 3. Indian Institute of Chemical
and Research (NALSAR) Technology (IICT)
4. National Institute of Small Industry 4. National Remote Sensing Agency
and Extension and Training
5. Indian Space Research Organisation
5. Central Institute of Plastic (SHAR)
Engineering Technology
6. ICICI Knowledge park
6. National Academy of Construction
7. GVK Bioteh 8. SP Biotech Park
8. Administrative Staff College of India 8. Defence Research & development
9. Centre for Good Governance Organisation (DRDO)
10. Dr. MCR HRD Institute 9. Defence Electronics Research
Institute (DLRL)
11. Birla Institute of Technology &
Science 10. Defence Metallurgical Research
12. Central Institute of English and Institute (DMRL)
Foreign Languages 11. National Institute of Nutrition (NIN)
13. National Institute of Rural 12. National Geographic Research
Development Institute (NGRI)
14. Andhra Pradesh Academy of Rural
Development 13. International Crop Research
Institute on Semi Arid Tropics
15. National Informatics Centre (ICRISAT)
16. VLSI Design Centre 14. Central Power Research Institute
17. Computer Maintenance
Corporation 15. Centre for Materials Electronics
Technology
18. Environment Protection Training
and Research Institute 16. Directorate of Oil Seeds Research
19. Water and Land Management 17. National Fisheries Development
Training and Research Institute Board
Technical education is one the priority sector of the Government as it aimed to
generate quality technical manpower with profound knowledge and skill to ensure
building culture and ultimately to ensure efficiency and productivity. Skilled
manpower is expected to be globally competitive. Keeping the growing industry,
Government have set up adequate no. of technical institutions and related courses.
Resources
Doing Business with Andhra Pradesh 23
, 1st in granite reserves in the country
, 1st in production and promoting various colours of lime stone
slabs for flooring.
, 2nd largest store house of mineral resources in India
, 2nd in value of mineral production - 9-10% of country’s mineral
revenue.
, 2nd largest Bauxite deposits in the country
, 2nd in occurrence of uranium deposits in the country
, 2nd longest coastline of 974 kms – rich beach sand resources
, 2nd largest producer of cement – 59 plants with 23 million
tones p.a.
, World’s largest single deposit of Barites in Kadapa
Mineral Strengths
Natural Gas
in Krishna-Godavari Basin
30 tcft
Coal in
Singareni Collieries Coal mines
16,694 mill tons
Lime stone – 35,220 mill tones
Uranium
Granite – 2,788 mill tons
Barytes- 76 mill tons
Bauxite – 613 mill tones
Beach sand
241 mill tones
Resources
24 Doing Business withAndhra Pradesh
Coal Bauxite
Marble
Lime Stone
Ceramics
Diamonds
Uranium
Gold
New Uranium Mining Projects
Andhra Pradesh is the only producer of Huge reserves of around 613 MT of
Coal in the entire South India. It metal grade bauxite deposit were proven
produces around 35 MT annually. The in Visakhpatnam and East Godavari
estimated reserves are around 16,694 District. There is a scope for establishing
MT. Major coal bearing areas fall in 2-3 Alumina and Aluminum projects in
Adilabad, Karimnagar, Khammam and the State.
Warangal districts.
in Khammam, Guntur, Kadapa,
The state contains 34% of the country’s Anantapur & Kurnool districts.
limestone reserves with estimated
reserves of 35,220 MT and produces
about 25,000 MT. Extensively occur in largest sources various clays, Feldspar,
Nalgonda, Kadapa, Kurnool, Anantapur, Quartz, Silica sand, Rare Earths like
Mahabubnagar, Rangareddy, Adilabad, Titanites, Zirconites in Rangareddy,
Karimnagar, Krishna and Guntur Mahabubnagar, Nellore, Kadapa,
Districts. At present there 14 major and Kurnool, Medak, Anantapur, Nalgonda,
29 mini cement plants producing about Vizianagar, Visakhapatnam and Guntur
18 MT which forms largest cement districts.
producing states in the country. AP
promoting various colours of limestone Other Mineral resources include
slabs for flooring and there are more in about 50,000 sq. km with
than 2,000 limestone slab cutting and incidence of 3-4 carats / 100 tones in
polishing units. Anantapur, Kurnool, Nalgonda,
Mahabubnagar, Krishna and Khammam
districts.
occurs in Nalgonda, Mahabubnagar,
Kadapa, Kurnool and Guntur District. AP
has a very good scope for producing in Chittoor, Anantapur,Kadapa, Kurnool,
Uranium for establishment of Atomic Mahabubnagar – incidents of 3-5 gms /
Power plant. tonne
The proposed new uranium project by
Uranium Corporation of India Limited
(UCIL) proposes to set up the processing
plants for new mines in the state of
Andhra Pradesh.
Project details
Region Andhra Pradesh
Location Nalgonda
Investment Rs1,030 crores
Total area 879 hectares
The proposed plant can extract 30,000
tonnes ore per day for 30 years.
Resources - Minerals
Doing Business with Andhra Pradesh 25
Human Resources
university
Andhra Pradesh has the following
Andhra Pradesh is the best place for covering various courses.
talented pool of skilled manpower at a 1. Osamania University
very competitive prices. 25% of the 2. Andhra University
Software professional in US are from 3. Sri Venkateswara University
India and among them 25% are from
Andhra Pradesh. Andhra Pradesh is 4. Nagarjuna University
known as the best education centre in the 5. Kakatiya University
country. The state has the globally 6. Sri Krishnadevaraya University
renowned institutions like Indian School 7. Dr. BR Ambedkar Open University
of Business supported by McKinsey & 8. University of Hyderabad
Co and various Fortune 500 major along
with captains of Indian industry in 9. Maulana Azad National Urdu University
partnership with the Wharton School at 10. AP University of Health Sciences
the University of Pennsylvania and the JL 11. Acharya NG Ranga Agricultural
Kellogg Graduate School of Manager at University
the Northwestern University, USA. 12. Potti Sreeramulu Telugu University,
Hyderabad
1 3 . S r i P a d m a v a t h i M a h i l a
Vishwavidyalayam, Tirupati
14. Dravidian University, Chittoor
15. National Academy of Legal Studies &
Research University, Hyderabad
International Institute of Information
Technology is an autonomous industry-
led center of excellence supported by The annual output of the skilled
Government of Andhra Pradesh with manpower from various institutions
active participation of Major global IT
companies like IBM, Oracle, Microsoft,
Satyam and Metamor.
MCA 320 17,220
BCA 200 23,444
Diploma holders 140 22,635
ITI holders 510 70,350
MBA 220 13,565
B.Tech 259 96,650
B.Pharm 79 4,662
Dental 17 1,440
MBBS 31 4,100
Annual
output
No. of
colleges
Course
Resources - Minerals
Indian School of Business
International Institute of Information Technology
Osmania University
26 Doing Business withAndhra Pradesh
Infrastructure
Andhra Pradesh
Andhra Pradesh has the best infrastructure in India
27
Infrastructure-Airports
Airports
Host of new features
, Terminal that offers an International experience with a local flavour
, Airport village with a shopping arcade
, Domestic and International flights in the same terminal for easy transit
, Hotel facilities at the airport for added comfort
, Conference facilities for
the business traveler
, Integrated state-of-art
IT systems
, Multi-model surface
connectivity to the city
Quick transportation is one of the
basic requirements for economic
development in any State. Civil
aviation and airport provide such a
network for safe landing of both
passengers and cargo. Hyderabad is
centrally located, enabling easy
accessibility to the entire South East
Asia.
Visakhapatnam
Rajahmundry
Vijayawada
Puttapathy
Tirupati
Hyderabad
Hyderabad International Airport at
Shamshabad
Project Cost – Rs 2283.12 crs
Initial capacity – 12 million passengers per annum
Ultimate capacity – 40 million passengers per annum
Cargo capacity – 100,000 tons per annum
Runway length – 4260 meters
Air craft parking bays – 42
Rapid exit taxi ways – 2
Fuel Farm
Scheduled to be Operational by March, 2008
Hyderabad International Airport at Shamshabad
28 Doing Business withAndhra Pradesh
Infrastructure-Airports
Amsterdam Jeddah
Bangkok Kuala Lumpur
Chicago Kuwait
Colombo London
Dammam Muscat
Doha Riyadh
Dubai Sharjah
Frankfurt Singapore
Global Air connectivity
from Hyderabad
Global air connectivity from Hyderabad Operating Airlines
Lufthansa Airlines
KLM Airlines
Singapore
Airlines
Malaysian Airlines
Emirates Airlines
Qatar Airlines
Oman Airlines
Indian Airlines
Air India
Saudi Airlines
Srilankan Airlines
Doing Business with Andhra Pradesh 29
Infrastructure-Airports
Best Domestic connectivity
to all corners of India
Best domestic Air connectivity from Hyderabad connecting major
metros of all corners of India
The State has vast potential for exports of high value perishable cargoes such as fruits,
vegetables, dairy products, floriculture as well as high precision sophisticated
engineering and electrical goods. These are poised for rapid growth and development.
The existing Hyderabad International Airport is Sixth busiest Airport in India handling
735 international and 3190 domestic movements carrying 3.17 lakh passenger in a
month. The airport is suitable to cater up to AB 340, Boeing 777-300 and MD-11 class of
Aircraft operation under all weather conditions. The runway length is 10,600 ft. The
apron is having 11 bays
Hyderabad is fast emerging as preferred investment destination and is attracting more
foreign delegations. In order to support the industrial development and to transform the
city into transit hub in the South Asian region, the State Government has initiated the
setting up of an international airport at Shamshabad, around 25 Kms from Hyderabad.
GMR-MAHB consortium has been selected as the developer.
Operating Airlines
Air India
Indian Airlines
Jet Airways
Air Sahara
Air Deccan
go Air
Paramount
Kingfisher
Spice Jet
Ahmedabad
Delhi
Bangalore
Bhubaneswar
Chennai
Coimbatore
Kolkata
Jaipur
Mangalore
Mumbai
Nagpur
Pune
Puttaparthy
Tirupati
Vijayawada
Hyderabad Visakhapatnam
Goa
30 Doing Business withAndhra Pradesh
Infrastructure-Airports
Emerging as a new industrial and IT week on Visakhapatnam-Hyderabadhub
for the state, Vishakhapatnam, the Visakhapatnam route, 21 flights a week
coastal city of Andhra Pradesh, i n V i s a k h a p a t n am-Mumb a i -
received additional boost through the Visakhapatnam sector, and 14 a week
proposed expansion of its solitary i n V i s a k h a p a t n a m - D e l h i -
airport. Visakhapatnam sectors. In addition,
direct flights to Port Blair and
Bangalore from Vishakhapatnam are
expected in near future. The increase in
The project envisages upgradation of number of flights will facilitate the
Vishakhapatnam air port in 267 acres tourists and make Vishakhapatnam
of land. The upgradation includes new one of the favourite beach tourism
runway, apron, ground lighting places like Goa.
facilities and naval apron. The new The expansion cost, about Rs 3,000m,
terminal building will have facilities would be shared by the state
such as customs, immigration, three government, AAI and the Defence
aerobridges, large concourses for Ministry. The project to expand the
arrival and departure and four baggage runway to facilitate the landing of the
belts. At present, the airport will be able bigger aircraft is expected to be
to take A300, 310, 320, A330 and completed sometime in 2007 and the
Boeing 777s. The runway will be new terminal building with facilities
upgraded with an Instrument Landing such as customs, immigration, three
System (ILS) to help pilots during poor aerobridges, and four baggage belts
visibility, and night-landing facility will be ready by 2008. The Airport
would become operational after Authority of India has proposed the
expansion. The system will also have a construction of a modern glass and
glide slope to indicate the angle at steel terminal with a plinth area of
which the plane can make a safe 20,000sq ft at a cost of Rs1,000m
landing. Visakhapatnam is connected
to Chennai, Mumbai, Hyderabad and
New Delhi via Raipur. an increase of
passengers of 60% over the previous
year. Shortly, direct flights to Port Blair
and Bangalore are expected. After the
expansion work, the status will be - ten
flights a week in the Visakhapatnam-
Kolkata-Visakhapatnam sector, 24
flights a week in Visakhapatnam-
Chennai-Visakhapatnam sector, 28 a
Proposed upgradations and
envisaged benefits
Expansion of
Vishakhapatnam Airport
Doing Business with Andhra Pradesh 31
Visakhapatnam Por t
Kakinada Anchorage Port
is a
prestigious major port in the country
for its largest cargo handling of
more than 60 million tones per
annum mainly POL, Iron Ore &
Pellets, Coal, Coke and Fertilisers.
The average pre-berthing detention
time is only 1.11 Hours and the
average turn round time is 3.2 days.
Kakinada deep sea water Port in East Godavari
District is a state port which is presently
sharing the cargo load of Visakhapatnam. The
port handles 10 million tonnes of cargo per
The port has 13 multipurpose annum mainly vegetable oil.
berths, 7 specialsed berths and 2
mooring upto the size of 280 M x
48M x 15M (LOAxBeamxDraft).
located
in East Godavari District is a
sheltered port due to location of 17
Kms length of Hope Island. It
handles 150-200 see going ships
every year. There are 100 private
owned steel barges with a total
capacity of 3000 tonnes. The
maximum cargo handled in this port
is 24 lakh tonnes.
Visakhapatnam
Kakinada
Gangavaram
Machilipatnam
Nizampatnam
Krishnapatnam
Bheemunipatnam
Visakhapatnam
Chennai
Tuticorin
Colombo
Kochi
Singapore
PTP
Port kelang
Yangon
ChittagongMYANMAR
MALAYSIA
Japan
China
Far East
Malaysia
Australia
New Zealand
Latin America
Central America
West Coast USA
Canada
Arabian Gulf
Red Sea
East Africa
South Africa
Mediterranean
Europe
East Coast USA
Best Global connectivity
Infrastructure - Ports
32 Doing Business withAndhra Pradesh
Krishnapatnam Port
Nizampatnam Port
Bheemunipatnam Port
located in The project includes extension and
Nellore district is the first green field construction of the port into a mediumport
and was privatised in 1997. Iron sized port capable of handling bulk
ore cargo from Hospet, Bellary region cargo like coal, cement, granite and
of 14 million tones per annum for fertiliser and may also include
export through this port. The port is container terminals and an LNG
expected to be completed soon. terminal.
located in Guntur Machilipatnam port is located in
district is functioning with more than Krishna district. A fishing Harbor was
250 fishing boats. The hinter land for constructed to accommodate 250
this port are the cement exports from fishing vessels. M/s. RITES Consultants
the districts of Prakasam, Guntur
Krishna and Nalgonda. prepared feasibility report for
development of Deep Sea Water Port.
M/s. National Ship Design & Research
Centre has prepared technoeconomical
feasibility for revival of
Machilipatnam port.
M/s. Ramboll Consultants Engineers
Ltd. Prepared detailed feasibility report
on cargo traffic. The port is proposed to
develop through public private
The Czech Government-owned Skoda partnership. The projected cargo
Export Co. plans to construct a port handling through Machilipatnam port
complex in Nizampatnam in Guntur is – Vijayawada Thermal Power Station
district. The project will be
imp l eme n t e d b y SP V c a l l e d – 10 mtpa, Cement and Clinker -5
Nizampatnam Industrial Port Complex mtpa, Food grains – 0.2 mtpa,
Company (NIPCCO). Investment Fertilisers-0.1 mpta and Iron ore and
Corporation of AP signed an MoU with other cargo -1.5 mtpa.
Czech company.. located in
Visakhapatnam district is proposed to
develop on Build Operate and Own
(BOO) basis for building ships and
handling cargoes. M/s. Goodearvh
Maritime Ltd., have submitted a report
for setting up of ship building facility
and a captive jetty. CRISIL Consultants
preparing feasibility report and to carry
out the bidding process.
Infrastructure - Ports
Infrastructure - Ports
Doing Business with Andhra Pradesh 33
Infrastructure - Ports
Gangavaram Port
the deepest port in the country
Gangavaram Port is the deepest port in
the country is a dedicated port for
industries coming in the Coastal Corridor
from Visakhapatnam to Kakinada. 21 M
water depth for dry bulk and break cargo,
35M depth for liquid cargo. Master Plan
with 29 berths to handle 200 tpa. Phase-I
with 5 berths capacity to handle 35 MTPA.
The port is scheduled to be operational by
December 2007.
Port to be developed as:
, All weather port
, Deepest port in India
, Round the clock port operations
, Most advanced state of the art
cargo handling equipments
, Most environmental friendly port
, Truly next generation port
Economic Benefits
, Reduced ship berth days due to faster loading & unloading
, Reduction in pre-berth detention to vessels
, Reduced ocean freight owing to deeper draft enabling larger vessels
, Reduced cargo loss due to spillage because of mechanised handling
, Low transportation cost because of proximity to anchor customers
Port to Port Distance From Key Markets –
In No of Days
Vizag Shanghai
Singapore 5 8
Jakarta 7 8
Tokyo 16 4
Penang 4 9
London 26 36
Hamburg 27 37
Dubai 9 20
Cape Town 17 27
Boston 32 41
Colombo 3 13
34 Doing Business withAndhra Pradesh
Infrastructure - Roads
Road Network
Total Road length in the State – 1,78,747 Km
National Highways - 4,014 Kms
State Highways - 9,212 Kms
Major District Road - 33,499 Kms
Rural Roads - 1,32,022 Kms
Road Density - 0.65 Kms / Sq. Kms
- 244.72 Kms / lakh population
The State has an excellent road network with backbone of 4-lane roads. All
industrially developed areas are well connected with National Highways / State
Highways. Golden corridor project of Government of India covered 1014 Kms
of NH - 5 in the State. Cabinet Committee on Economic Affairs (CCEA),
Government of India approved on 5th October 2006 for six-laning of 6,500
Kms of National Highways comprising of 5,700 Kms of the Golden
Quadrilateral project at a cost of Rs 41,210 crores. The six-laning of existing 4-
lane will be through PPP on BOT Mode.
Doing Business with Andhra Pradesh 35
South Central
Railway
Infrastructure-Railway
Secunderabad is the Head Quarters for the
South Central Railway network and covers a
railway network of 4752 Kms in the State
and surroundings. Number of Super fast
Trains are operated to all major metro cities
in the country. 3754 Kms of Broad Guage,
508 Kms of Meter Guage and total 748
Railway Stations are covered in the state
railway network.
Railway Network
South Central Railway has
completed 37 years of service
since 2 October 1966. In this
short period, SCR played a
significant role in supplementing
the green revolution and rapid
industrial growth that have taken
place in the Southern Peninsula
by effectively meeting the
growing transport requirements
of the region.
36 Doing Business withAndhra Pradesh
Infrastructure-Railway
With the setting up of a number of new Cement plants in this region, a steady
increase in Coal production in the Singareni Collieries, the agricultural revolution in
the Nagarjuna Sagar and Sri Ram Sagar Ayacut belts and the setting up of a steel
plant at Visakhapatnam, the transport potential in the region has gone up
tremendously. It has been the constant endeavor of SCR to match the demand by
undertaking construction of New Lines, Gauge Conversion, Doubling,
Electrification, Computerisation, introduction of higher Axle and high speed Trains
and other traffic facility works. In the process the South Central Railway has built a
mega, modern enterprise matching international standards
, Transportation of goods traffic such as Coal, Iron ore, Cement, Food grains,
Fertilizers, Minerals, Petroleum products and general merchandise
, Transportation of passengers all over the region, both rural and urban, at a high
level of customer satisfaction.
, M o d e r n i s a t i o n a n d
Technological upgradation of the
rail transport network
, Efficient management of rolling
stock
, Quality services to passengers
, Optimum utilisation of resources
The Core Business
The Objectives
Railway Network
TOTAL 4704 1044 5749
Nanded 458 544 1002
Guntur 591 -- 591
Hyderabad 443 126 569
Guntakal 1046 373 1420
Vijayawada 890 -- 890
Secunderabad 1274 -- 1274
Division BG MG Total
Key Statistics
Doing Business with Andhra Pradesh 37
Infrastructure - Power
, Third Largest Power Utility in India
, APGENCO’s Hydel Installed Capacity is highest in India.
, The state achieved highest Plant Load Factor of 89.7% in the country
, AP power sector secured 1st rank in CRISIL ratings
, Installed capacity 11,134 MW – another 4000 MW in the next 4 years
, Energy available – 25,482 MU per annum
, No. of consumers – 1,69,25,194 Nos.
, Industrial consumers – 1,90,000 Nos
, Per capita consumption – 575 kWh
, Implementation of reforms enabled
international funding.
, Most competitive power tariff – Rs 2.80 (< US
cents 5.5) per unit
Power Sector
Decreasing
Trend of
Power Tariffs
Power tariff to industries
is being reduced
year after year
Thermal Power Plants Hydel Power Plants
KTPS
700 MW (8)
Ramagundam
62.5 MW (1)
Kothagudem-V
500 MW (2)
VTPS
1260 MW (6)
Rayalaseema TPP
420 MW (2)
Nellore
30 MW (1)
Pochampad
27 MW (3)
Penna Ahobilam
20 MW (2)
Nellore
30 MW (1)
Nizamsagar
10 MW (2)
Machkund
120 MW (6)
Singur
15 MW (2)
Donkarayi
25 MW (1)Lowersileru
460 MW (1)
Uppersileru
240 MW (4)
Nagarjunasagar-815.6 MW (8)
Nagarjunasagar-90 MW (3)
Nagarjunasagar-60 MW (2)
Srisilam-900MW (6)
Srisilam-770MW (7) Tunga Bhadra
36 MW (4)
Mini Hydel Plants
Vijjeswaram Gas based
power plant- 1000MW
Simhadri
1000 MW
Energy Year charges (per unit)
1-4-2003
1-4-2004
1-4-2005
1-4-2006
Rs 3.60
Rs 3.60
132 KVA 33 KVA
Rs 3.35
Rs 2.80 Rs 3.10
Rs 3.25
Rs 3.60
Rs 3.60
38 Doing Business withAndhra Pradesh
Andhra Pradesh is consistently strong in the power
sector in India due to advantageous mix of Thermal,
Hydro and Gas power. Availability of huge resources
of Coal and perennial rivers with good monsoons,
recent huge natural gas findings in Krishna-Godavari
basin, are the major advantages for the strong power
situation in the State to supply the quality power at
most competitive prices.
Government of AP is providing power supply at the
doorstep of the industry. Due to huge gas findings,
the State would ensure supply of uninterrupted
quality power of adequate quantity to the prospective
investors.
200 Express feeders have been set up for the Major
investment projects and are monitored on day to day
basis to ensure quality and uninterrupted power
supply.
Length of power supply
lines (ckm)
400 KV - 2,384
220 KV - 11,463
132 KV - 13,528
33 LV - 34,171
11 KV - 2,06,816
LT - 4,96,411
Sub-stations (Nos)
400 KV - 4
220 KV - 79
132 KV - 233
33 LV - 2,558
High Tension Category-I
Industries (General)
11 KV 195 330
below
FSA will be extra as applicable
Ferro Alloy Nil 255
industries
33 KV 230 310
132 KV and 250 280
above
Energy
Charges
(Ps/Unit)
Demand
Charges
(Rs/KVA/
month of
billing
demand)
More than 70% 25% on the energy above 40% LF
>50% upto 70% 25% on the energy above 50% LF
Load Factor (LF) Discount applicable on the energy rates
The following incentives are applicable for HT Category - I (A) Consumers
Infrastructure - Power
Doing Business with Andhra Pradesh 39
Infrastructure - Industrial
Industrial Estates / Industrial Development Areas
promoted in Andhra Pradesh
Srikakulam
Vizianagaram
Visakhapatnam
East
West Godavari
Godavari
Krishna
Guntur
Prakasam
Nellore
Chittoor
Anatapur
Kadapa
Kurnool
Mahabubnagar
Ranga Reddy
Hyderabad
Medak
Nizamabad Karimnagar
Adilabad
Nalgonda
Khammam
Warangal
476.60
1363
2525
1200
111
1470
602
208
1895
217
728
1312
633
638
278
525
1218
53
105
180
2737
4943
123
Top 10 districts
Acres
• Total area acquired 44,676
• Extent Developed 28,814
• Extent Allotted 19,881
(excl. common areas)
• Land Vacant (Dev) 2,775
• Land under Development 15,862
• No. of Industrial Parks 272
Districtwise area in acres
developed as Industrial
Estates / IDAs
40 Doing Business withAndhra Pradesh
Infrastructure - Industrial
Existing Sector Specific Parks /
Mega business projects
Hitec City Phase-I
Hitec City Phase – II
ICICI Knowledge Park
: Integrated techno-township offering one-stop
IT solutions - 5 million Sq. ft. spread over 6 acres land, Out lay US $
375 million – Oracle, Motorola, Ericsson, GE Capital, Citicorp, Baan
and HSBC are operating.
: 8.6 million sq.ft , 5-storied building– 6100
KVA DG set (UPS), 2600 TR AC Plant, High speed bandwidth,
Centralised building automation.
: Promoted at Turkapally (V), Ranga Reddy
Dist, in 200 acres at 18 KMs from Hyderabad - to create world-class
R&D facilities for Bio Tech industry. The Park offers ready to use
Modular Lab units on lease basis. Excellent infrastructure and
support facilities for business driven research by corporate sector.
Bio Tech Park
Export Promotion Industrial Park (EPIP)
Apparel Export Park
: Joint Venture Project of Government of AP & Shapoorji Pallonji Bio Tech Park
Ltd. Adjacent to ICICI Knowledge Park to have a complimentary existence at Turkapally (V),
Ranga Reddy Dist at 18 KMs from Hyderabad in 150 acres to set up Bio Tech manufacturing
units.
: Developed in 207 acres in Medak Dist for Export
oriented units such as Hardware, Gems & Jewellery, Telecom, Leather products.
: Developed in 176 acres of land at Gundlapochampalli, Ranga Reddy
District 18 kms from Hyderabad for promoting Ready Made Garments.
Srikakulam
Vizianagaram
Visakhapatn
am
East
West Godavari
Godavari
Krishna
Guntur
Prakasam
Nellore
Chittoor
Anatapur
Kadapa
Kurno
ol
Mahabubnagar
Ranga Reddy
Hyderabad
Medak
Nizamabad Karimnagar
Adilabad
Nalgonda
Khammam
Warangal
ICICI Knowledge
Park
Bio-Tech Park
Apparel Park
Export Promotion
Industrial Park
Hi-tec City
Industrial Estates
for Lady
Entrepreneurs
Hardware Park
Financial District
International
Convention
Centre
Food Processing Park
JN Pharma Park
PCPIR
AP SEZ
Visakhapatnam
SEZ
Hitex Exhibition
Centre
Gems &
Jewellery Park
Mind Space IT
Parks
Visakhapatnam
Indl. Water
Supply Project
Agri Biotech Park
Doing Business with Andhra Pradesh 41
Infrastructure - Industrial
Upcoming Specialised Parks
Srikakulam
Vizianagaram
Visakhapatn
am
East
West Godavari
Godavari
Krishna
Guntur
Prakasam
Nellore
Chittoor
Anatapur
Kadapa
Kurno
ol
Mahabubnagar
Ranga Reddy
Hyderabad
Medak
Nizamabad Karimnagar
Adilabad
Nalgonda
Khammam
Warangal
Brandix Textile
City
PCPIR
AP SEZ
Visakhapatnam
SEZ
Auto Component Cluster
IT Park, Vijayawada
IT Park,
Visakhapatnam
Apparel Export
Park, V’ patnam
Food Processing
Park (chillies)
Food Processing
Park (Acid Line)
Food Processing Park (Mango & Cashew)
Leather
Park
Marine Biotech
Park
Pharma Cluster
Business District
& Trade Towers
Textile Park
Rajiv Gandhi
Nanotech Park
SemIndia Fab
City
Hardware Park
IT Parks
Manikonda,
Nanakramguda &
Adibatla
Aero Park
Auto Park
Textile Park,
Sircilla
Handloom Textile Park
Textile Park
42 Doing Business withAndhra Pradesh
Infrastructure - SEZ
Special Economic Zones
Government of India have introduced a with minimum area requirements but
policy on for setting up of Special Economic subject to the condition that maximum area
Zones in the country with a view to of such FTWZ shall not exceed 20% of the
augmenting infrastructure facilities for processing area.
export production. SEZs are specifically
delineated duty-free enclaves treated as a
foreign territory for the purpose of industrial
service and trade operations (except reexporting
of imported goods). The SEZ Act SEZ for multiproduct shall have a
has been enacted by the Parliament and has contiguous area of 1000 hectares or more.
received the assent of the President on 23rd In case pf SEZ set up exclusively for services
June 2005. The SEZ Rules have already may have a contiguous area of 100 hectares
been notified. The SEZ Act along with SEZ or more. At least 25% of the area shall be
Rules have become operative w.e.f. 10th earmarked for developing processing area.
February, 2006. However, As per the decisions of Board of
The concept of SEZ is expected to bring Approval, the Minimum processing area for
large dividends to the State in terms of multi-product SEZs would be increased to
economic and industrial development and 35% with the discretions to the Board of
the generation of new employment Approval to relax the minimum level upto
opportunities. SEZs are expected to be 25% for the reasons to be recorded in
engines for economic growth. Government writing. SEZ for specific sector or in a port or
of India has offered various incentives and airport shall have a contiguous area of 100
facilities both to developer of SEZ as well as hectares or more. In respect of SEZ set up
the industrial units coming in SEZ. All kind exclusively for electronics hardware and
of units namely manufacturing, trading or software including ITES, the area shall be
service activities are permitted in SEZ. All 10 hectares or more with a minimum built
approvals are to be given by the up processing area of one lakh sq. mts.
Development Commissioner for
establishment of the unit in SEZ. The State In case of SEZ set up exclusively for
Governments are required under the Biotechnology, non-conventional energy,
scheme to offer specified facilities and including solar energy equipments / cell but
concessions for promotion of units in SEZs. excluding SEZs for non-conventional
energy production and manufacturing the
area shall be 10 hectares with built up
A Special Economic Zone wherein mainly processing area of 40,000 Sq. mts. In case
trading and warehousing and other of Non-conventional energy production and
activities related thereto are carried on SEZ manufacturing the area shall be 100
for FTWZ (either multi product or sector hectares. In respect of Gem and jewellery
specific) shall have an area of 40 hectares or sector, the area shall be 10 hectares with
more with a built-up area of not less than builtup processing area of 50,000 Sq. Mts.
one lakh square meters. In case of a SEZ for or more. At least 50% of the area shall be
a specific sector, FTWZ may be permitted earmarked for developing processing area.
Requirements for establishment of
a Special Economic Zone:
Free Trade and Warehousing Zone
Doing Business with Andhra Pradesh 43
Infrastructure - SEZ
SEZ for Free Trade and Warehousing Zone by a Unit or Developer, and the goods sold
shall have an area of 40 hectares or more by a Unit in the Domestic Tariff Area except
with builtup area of not less than one lakh the goods procured from domestic tariff
sq. mts. FTWZ may also be set up as a part area and sold as it is;
of SEZ for multiproducts. In a SEZ for , exemption from electricity duty or
specific sector FTWZ may be permitted taxes on sale, of self generated or
with no minimum area requirement purchased electric power for use in the
subject to the condition that the maximum processing area of a Special Economic
area of such FTWZ shall not exceed 20% of Zone;
the processing area.
, allow generation, transmission and
distribution of power within a Special
Economic Zone subject to the provisions
SEZ can be established either jointly or of the Electricity Act, 2003 (No. 36 of
severally by the Central Govt., State 2003);
Government or any person for
manufacture of goods or rendering , providing water, electricity and such
services or for both or as a FTWZ. other services, as may be required by the
developer be provided or caused to be
Any person who intends to set up SEZ can provided;
make proposal to the State Government.
The State Government forward the same , Delegat ion of power to the
with its recommendations to the Board of Development Commissioner under the
Approval Industrial Disputes Act, 1947 (No. 14 of
1947) and other related Acts in relation to
Any person who intends to set up SEZ can the Unit;
make proposal directly to the Board of
Approval. The Board may grant approval , Delegat ion of power to the
and after receipt of such approval, the Development Commissioner under the
person concerned shall obtain the Industrial Disputes Act, 1947 (No. 14 of
concurrence of the State Government 1947) in relation to the workmen
within a period of six months. employed by the developer.
In case a State Government intends to set , Declaration of the Special Economic
up SEZ forward the proposal directly to the Zone as a Public Utility Service under the
Board of Approval. Industrial Disputes Act, 1947 (No.14 of
1947);
, Providing single point clearance
Before recommending any proposal for system to the Developer and unit under the
setting up of a Special Economic Zone, the State Acts and rules;
State Government shall endeavor that the
following are made available in the State to The State Government shall, while
the proposed Special Economic Zone recommending a proposal for setting up of
Units and Developer, namely: Special Economic Zone to the Board
, exemption from the State and local indicate whether the proposed area falls
taxes, levies and duties, including stamp under reserved or ecologically fragile area
duty, and taxes levied by local bodies on as may be specified by the concerned
goods required for authorized operations authority.
Setting up of SEZ:
Role of State Government:
44 Doing Business withAndhra Pradesh
Infrastructure - SEZ
The State Government may, for the law for the time being in force; and
purposes of giving effect to the provisions " Discharge such other functions as may
of this Act, notify policies for Developers be delegated to him by the Board.
and Units and take suitable steps for
enactment of any law:
Granting exemption from the State taxes,
levies and duties to the Developer or the The Central Government shall constitute
entrepreneur; a Committee for every SEZ by notification
Delegating the powers conferred upon to be called the approval committee to
any person or authority under any State exercise the powers and perform the
Act to the Development Commissioner in following functions.
relation to the Developer or the , Approve the import or procurement of
entrepreneur. goods from the Domestic Tariff Area, in
the Special Economic Zone for carrying
on the authorised operations by a
Central Government may appoint any Developer;
officer not below the rank of Deputy
Secretary to the Government of India as , Approve the providing of services by a
the Development Commissioner of one service provider, from outside India, or
or more SEZs. The Development from the Domestic Tariff Area, for
Commissioner shall carrying on the authorised operations by
the Developer, in the Special Economic
" Take all steps in order to discharge his Zone;
functions under this Act to ensure speedy
development of the Special Economic , Monitor the utilisation of goods or
Zone and promotion of exports there services or warehousing or trading in the
from. Special Economic Zone;
, Approve, modify or reject proposals for " Guide the entrepreneurs for setting up
of Units in the Special Economic Zone; setting up Units for manufacturing or
rendering services or warehousing or
" Ensure and take suitable steps for
effective promotion of exports from the trading in the Special Economic Zone
Special Economic Zone allow, on receipt of approval under clause
(c) of sub-section (2) of section 9, foreign
" Ensure proper co-ordination with the collaborations and foreign direct
Central Government or State investments including investments by a
Government Departments concerned or person outside India) for setting up a Unit;
agencies with respect to, or for the monitor and supervise compliance of
purposes, of clauses (a) and (b); conditions subject to which the letter of
" Monitor the performance of the approval or permission, if any, has been
Developer and the Units in a Special granted to the Developer or entrepreneur;
Economic Zone ; and perform such other functions as may
" Discharge such other functions as may be entrusted to it by the Central
be assigned to him by the Central Government or the State Government
Government under this Act or any other concerned, as the case may be.
Single Window Clearance
Role of Development Commissioner
Doing Business with Andhra Pradesh 45
Infrastructure - SEZ
Special Fiscal Provisions for the
Developers / Entrepreneurs of
Special Economic Zones
Domestic Tariff Area
Domestic Clearance by Units:
Incentives of the State Government:
Income tax
1961, as in force for the time being, shall
apply to, or in relation to, the Developer or
entrepreneur for carrying on the
authorised operations in a Special , Exemption from any duty of customs,
under the Customs Act, 1962 on goods Economic Zone or Unit subject to the
imported into, or service provided in, a modifications specified in the Second
Special Economic Zone or a Unit, to carry Schedule.
on the authorised operations by the , The Central Government prescribed
Developer or entrepreneur; five years period during which any goods
brought into, or services provided in, any , Exemption from any duty of customs,
under the Customs Act, 1962 on goods Unit or Special Economic Zone without
exported from, or services provided, from payment of taxes, duties or cess shall
a Special Economic Zone or from a Unit, remain or continue to be provided in such
to any place outside India: Unit or Special Economic Zone.
, The transfer of ownership in any goods , Exemption from any duty of excise,
under the Central Excise Act, 1944 on brought into, or produced or
goods brought from manufactured in, any Unit or Special
Economic Zone or removal thereof from
to a Special such Unit or Zone shall be allowed,
Economic Zone or Unit, to carry on the subject to such terms and conditions as
authorised operations by the Developer the Central Government may prescribe.
or entrepreneur
, Exemption from service tax under
Chapter-V of the Finance Act, 1994 on , Any goods removed from a Special
taxable services provided to a Developer Economic Zone to the Domestic Tariff
or Unit to carry on the authorised Area shall be chargeable to duties of
operations in a Special Economic Zone; customs including anti-dumping,
countervailing and safeguard duties
, Exemption from the securities under the Customs Tariff Act, 1975,
transaction tax leviable under section 98 where applicable, as leviable on such
of the Finance (No. 2) Act, 2004 in case goods when imported; and
the taxable securities transactions are
entered into by a non-resident through , The rate of duty and tariff valuation, if
the International Financial Services any, applicable to goods removed from a
Centre; Special Economic Zone shall be at the
rate and tariff valuation in force as on the
, Exemption from the levy of taxes on the date of such removal, and where such
sale or purchase of goods other than date is not ascertainable, on the date of
newspapers under the Central Sales Tax payment of duty.
Act, 1956 if such goods are meant to
carry on the authorised operations by the
Developer or entrepreneur. , All incentives covered under the
Industrial Investment Promotion Policy
2005-2010 of the Government of AP. the
, The provisions of the Income-tax Act, Major incentives include.
46 Doing Business withAndhra Pradesh
Infrastructure - SEZ
SPECIAL ECONOMIC ZONE Obligation of the Unit under the
AUTHORITY Scheme
,
,
,
Functions of SEZ Authority
,
,
Labour laws in SEZs
, ,
,
,
How to set up a unit in SEZ ,
,
,
,
,
The Central Government shall, by SEZ units have to achieve positive net
notification in the Official Gazette, foreign exchange earning as per the
constitute, for every Special Economic formula given. For this purpose, a Legal
Zone established by it before the Undertaking is required to be executed by
commencement of this Act or which may the unit with the Development
be established by it after such Commissioner.
commencement by the Central The units are also to execute a bond with
Government, an Authority to exercise the the Zone Customs for their operation in
powers conferred on, and discharge the the SEZ.
functions assigned to, it under this Act:
Any company set up with FDI has to be
incorporated under the Indian
Companies Act with the Registrar of
Development of infrastructure in the Companies for undertaking Indian
Special Economic Zone; operations.
Promoting exports from the Special
Economic Zone;
Reviewing the functioning and Normal Labour Laws are applicable to
performance of the Special Economic SEZs, which are enforced by the
Zone; respective state Governments. The state
Levy user or service charges or fees or Government have been requested to
rent for the use of properties belonging to simplify the procedures/returns and for
the Authority; introduction of a single window clearance
mechanism by delegating appropriate
Performing such other functions as may powers to Development Commissioners
be prescribed. of SEZs.
All the powers of Labour Commissioner
and Inspector of Factories are delegated
Proposal for approval of Unit - A to Development Commissioner covering
consolidated application seeking the following Acts.
permission for setting up of a Unit and
other clearances shall be made to the The Workmen's Compensation Act.
Development Commissioner. Who will be 1923, The Payment of Wages Act. 1936,
scrutinised and get it placed before the The Factories Act. 1948
A p p r o v a l C ommi t t e e f o r i t s The Minimum Wages Act. 1948, The
consideration. Maternity Benefit Act. 1961, The Payment
The Approval Committee may approve of Bonus Act. 1965
or approve with modification or reject a Such other acts. As the State
proposal placed before it, within fifteen Government may by notification in the
days of its receipt: official Gazette.
Doing Business with Andhra Pradesh 47
Large number of upcoming
Special Economic Zones
Infrastructure - SEZ
52 upcoming Special Economic Zones the State
The details of SEZs are available at http://sezindia.nic.in
Srikakulam
Vizianagaram
Visakhapatn
am
East
West Godavari
Godavari
Krishna
Guntur
Prakasam
Nellore
Chittoor
Anatapur
Kadapa
Kurno
ol
Mahabubnagar
Ranga Reddy
Hyderabad
Medak
Nizamabad Karimnagar
Adilabad
Nalgonda
Khammam
Warangal
APIIC – 2 SEZs
Wipro
Satyam – 2 SEZs
Sanghi Industries
Bavana Sai
Associates
Divyasree NSL
Infrastructure
Lanco Mantri
Tech
Kakinada SEZ
PCPIR
AP SEZ
Visakhapatnam
SEZ
DLF
Whitefield Paper
Mills Ltd.
Brandix India
Apparel City
Fab City
Raheja IT
Satyam
Kennex
Govt.of AP
Sector Specific
Parsvanth
Developers Ltd.
SRF
Moja Shoes Pvt. Ltd.
Satyavedu Reserve
Infracity Pvt. Ltd.
Divi’s
Laboratories Ltd.
Ramky Pharma
Hetro Drugs Ltd.
AP Techno
Projects APIIC – IT/ITES
CMC APIIC – IT/ITES
Apachie
Investment
Holdings.
Hyderabad
Gems &
Jewellery
APIIC – Multi Prd
Computer
Associates
48 Doing Business withAndhra Pradesh
Infrastructure
Committed Government
for Infrastructure Development
• IT/ITES
• Hitech Manufacturing
• Pharma / Biotech
• Food Processing
• Textile / Leather
• Education / Health Services
• Retail
• Tourism
Government of Andhra Pradesh is committed for development of infrastructure in the
State. AP is the only state created a separate department called Department of
Infrastructure and Investment at the Secretariat level and Infrastructure Development
Corporation of Andhra Pradesh (INCAP) at the Head of the Department level. All crucial
identified infrastructure projects are handled by the Department of infrastructure and
investment. These projects include development of state ports, Road projects,
development of state airports, Hyderabad city outer ring road, State natural gas grid etc.
under Public Private Partnership mode with equity participation of INCAP.
Andhra Pradesh is the only state having an act called “The Andhra Pradesh
infrastructure Development Enabling Act”
An act to provide for the rapid development of physical and Social infrastructure in the
state and attract private Sector participation in the designing, financing, Construction,
operation and maintenance of Infrastructure projects in the state and provide a
Comprehensive legislation for, reducing administrative and Procedural delays,
identifying generic project risks, Detailing various incentives, detailing the project
delivery Process, procedures for reconciliation of disputes and also to provide for other
ancillary and incidental matters thereto with a view to presenting bankable projects to
the Private sector and improving level of infrastructure in the State of Andhra Pradesh
and for matters connected therein or incidental thereto.
Under the provisions of the act, Infrastructure Authority has been created for
monitoring quick implementation of the infrastructure projects
APINVEST is a Society Chaired by Honourable Chief Minister to focus on high growth
sectors of economy, showcasing the State to attract investments from domestic and
international markets in the following sectors
To build a strong value proposition in identified sectors
Facilitate availability of infrastructure and manpower
Develop Investment friendly sector strategies
Infrastructure Enabling Act.
APINVEST
APINVEST Objectives
Doing Business with Andhra Pradesh 49
Critical Infrastructure Balancing Scheme (CIBS)
Industrial Infrastructure Development Fund (IIDF)
Upcoming Infrastructure Projects
In order to improve the infrastructure facilities within the existing Industrial Estates and
Industrial Clusters, Government of AP is implementing CIBS. Under the scheme
Financial Assistance to local Industrial Associations/Service Societies/NGOs for
development of Critical Infrastructure which is considered to be essential to ensure the
viability of the infrastructure projects and for the upgradation of the infrastructural
facilities such as roads, electricity, water, drainage. The financial assistance will be in the
ratio of 50:50 basis by government and implementing agency in case of estates
developed by NGO and 50:30:20 basis by Government, Service Society and APIIC in
case of estates developed by Andhra Pradesh Industrial Infrastructure Corporation.
In order to improve the infrastructure facilities upto the proposed industries in the
areas identified as industrial areas and also upto the doorstep of the industrial
units located in places other than industrial areas (isolated areas) which are 10 Kms
away from the existing Industrial Estates, Financial assistance will be provided for
infrastructure facilities such as roads, electricity, water, drainage, etc. Government will
share the cost of infrastructure up to 50% or Rs 100.00 lakhs whichever is less, if such a
location is otherwise justified. Further, 10% of the IIDF may be spent on Technology
Development, Cluster development and market support systems to the SSI and Tiny
sectors such as providing corpus for establishment of Technical Institutions, Incubation
Centres etc.
Business District & Trade Towers, Manchirevula (V), Rajendranagar (M) in Ranga
Reddy district is a High-rise Buildings of 60 floors in the area of 97 acres with an
estimated cost of Rs 5,000 crores. The process of tenders for the project are under active
progress
IT Park at Manikonda in Ranga Reddy district. With a project cost of Rs 1158 crores in
phases in five years in an area of 100 acres.
IT Park at Rayadurg in Anantapur district. With a
project cost of Rs 600 crores in phases in five years in
an area of 37.50 acres.
IT SEZ at Nanakramguda, Ranga Reddy in an area
of 20.53 acres.
Hardware SEZ at Maheswaram in Ranga Reddy in
an area of 275 acres.
IT / Industrial Park at Adibatla in Ranga Reddy in an
area of 744 acres.
Fab City Project at Maheswaram in Ranga Reddy in
an area of 1200 acres.
Hyderabad Gems & Jewellery Park in the existing
Hardware Park in Ranga Reddy in an area of 75 acres
with a project cost of Rs 460 crores in three phases
Infrastructure
50 Doing Business withAndhra Pradesh
The Petroleum, Chemical and Petrochemical industry in India is well established
and has recorded a steady growth over the years. The industry offers a wide scope
for development that contributes positively to economic growth and regional
development. The future outlook for the industry is bright with positive
developments anticipated in various chemical and sub-sectors.
To promote investment in this sector and make the country an important hub for
both domestic and international markets, the Government has decided to attract
major investment, both domestic and foreign, by providing a transparent and
investment friendly policy and facility regime under which integrated Petroleum,
Chemicals & Petrochemical Investment Regions (PCPIRs) may be set up. The
PCPIRs would reap the benefits of co-siting, networking and greater efficiency
through the use of common infrastructure and support services. They would have
high-class infrastructure and provide competitive environment conducive for
setting up business. They would thus result in a boost the manufacturing
augmentation of export and generation of employment.
A PCPIR would a specifically delineated investment region with an area of
around 250 square kilometers planned for the establishment of manufacturing
facilities for domestic and export led production in petroleum, chemical &
petrochemicals along with the associated services and infrastructure.
A PCPIR would be a combination of production units, public utilities, logistics,
environmental protection mechanisms, residential areas and administrative
services. It would have a processing area, where the manufacturing facilities, along
with associated logistics and other services, and required infrastructure will be
located and non-processing area to include residential commercial and other social
and institutional infrastructure. The minimum processing area for the PCPIR will be
about 40% of the total designated area, i.e., around 100 sq. km. The processing
area may or may not be contiguous.
The PCPIR may include one or more Special Economic Zones, Industrial Parks,
Free Trade & Warehousing Zones, Export Oriented Units, or Growth Centres, duly
notified under relevant Central or State legislation of policy. All the benefits available
under the relevant legislation or policy will continue to remain available to the said
zones or parks as the case may be forming part of the PCPIR.
Infrastructure
Petroleum, Chemical, Petro-Chemical
Investment Regions (PCPIR)
Doing Business with Andhra Pradesh 51
The PCPIR could cover existing settlements / industries & estates / services and
would therefore benefit from and be complementary to the region. The concerned
State Government may not acquire the entire area comprising the PCPIR, but will
notify the same under the relevant Act. for proper planning and zoning to ensure
coordinated development.
PCPIR would have a refinery / petrochemical feedstock company as an anchor
tenant. The internal infrastructure of the PCPIR will be built and managed by a
developer or a group of co-developers. The external linkages will be provided by
Government of India and the concerned state government. The users of external as
well as internal infrastructure will pay for its use, except to the extent that the
government supports the service through budgetary resources.
The benefit of Petroleum, Chemical, Petro-Chemical Investment Regions accrues
from the Investment not only in the infrastructure but also Mega Chemical and
Petrochemical projects and also in logistics development. The international
Petroleum, Chemical, Petro-Chemical Investment Regions (PCPIR) have
investment to the tune of US $ 12 to 18 billion and house major transnational
chemical and petrochemical companies.
Infrastructure-PCPIR
Andhra Pradesh: Your Growth Catalyst
AP PCPIR
National Highway 5
Rail Network
r Kak na a P i d o t
–
50 km from Port SEZ
ONGC Refinery &
Petrochemical
Unit (1,200 acres)
Gangavaram Port
Visakhapatnam Port
Pharma City
(2120 acres)
Logistics Corridor
Coastal Pipeline Corridor
NTPC Thermal Power Plant
Visakhapatnam Airport
Hetro Drugs- USFDA Chemical
Zone (400 acres)
SEZ
HPCL – Phase I & II
HPCL Naptha Cracker &
Aromatic Complex (3500
acres)
KG BAS NI – f A Ove 0 CF o G r 3 T S
E E R RV SE S
E Y B NGAL BA OF
a Kakin da
Rajahmundry
h at m isak ap n V a
7 Private Sector
Power Plants in
region
• Spectrum Power
• Reliance Energy
• GVK Power
• AP Geneco
• Gautami Power
• GMR Power
• Konaseema Power
AP PCPIR – Key Landmarks & Infrastructure
SRF SEZ
RajahmundryAirport
52 Doing Business withAndhra Pradesh
Ministry of Chemicals & Fertilisers, Department of Chemicals &
Petrochemicals, Government of India had prepared the PCPIR policy duly
addressing the following issues and policy would be announced very shortly
Feedstock availability and its pricing,
Incentives and package of the Government of India,
Identification of location of PCPIRs,
legal framework for the PCPIR policy,
State’s commitment and their incentive packages
Mechanism for inter-action with identified / prospective investor’s / developers.
Infrastructure-PCPIR
Andhra Pradesh is identified to locate
PCPIR near Visakhapatnam in an
area of 250 Sq. Kms ( 62,000 acres).
The major advantages include the
following
Ports:
The Upcoming green field best world
class port Gangavaram port with the
following salient features.
The port is dedicated for the PCPIR
5 berths (Iron-ore 1; Coal 1; Other Dry
Bulk 1; Multipurpose 1; General Cargo
1) with a capacity of 35 MTPA
Breakwaters to provide tranquility within the
harbour
Depth in harbour - 21 m (Deepest draft
amongst any Indian Ports)
Design vessel size - 200,000 DWT (Largest that
can berth at any Indian Port)
Iron ore and coal berth designed for 200,000
DWT vessel
State-of-the-art cargo handling equipment for
speedier evacuation
Operational efficiency to match world
standards
Master Plan has provision for 29 berths with a
capacity of 200 MTPA
Doing Business with Andhra Pradesh 53
Gangavaram Port - Economic Advantages
Land for PCPIR
Airport
Road connectivity
Rail Connectivity
Power Supply
Water Supply
Reduced ship berth days due to faster loading & unloading
Reduction in pre-berth detention to vessels
Reduced ocean freight owing to deeper draft enabling larger vessels
Reduced cargo loss due to spillage because of mechanised handling
Low transportation cost because of proximity to anchor customers
In addition Visakhapatnam port, the largest cargo handling port in the country with
handling capacity of more that 60 million tones per annum and Kakinada Port in 120
Kms from Visakhapatnam handling 10 million tones per annum of cargo..
Andhra Pradesh has acquired 6,000 acres of land and another 20,000 acres was in the
process of acquisition. In addition to this ONGC is setting up a 7.5 million tones Refinery
project in Kakinada in 1000 acres of land in Kakinada SEZ of 9000 acres
The Existing Visakhapatnam Airport is proposed to expand with a project cost of Rs 300
crores in 267 acres of land for new runway measuring 10,000ft in length.
Visakhapatnam is connected to Chennai, Mumbai, Hyderabad and New Delhi.
Hyderabad International Airport is less than an hour fly from Visakhapatnam.
The proposed PCIPR site is 12 Kms from the 4-Lane Golden Quadrilateral Highway of
NH 5 and 4 Kms from the State Highway. This will provide best road connectivity to the
proposed PCIPR site.
Proposed site is 15 Kms from the Chennai-Howrah Line. Rail link to Gangavaram port
will be 32 Kms. There will be berth connectivity to the Gangavaram port and also to
Visakhapatnam port.
Andhra Pradesh is the 3rd largest power utility state in the country. APGENCO’s Hydel
Installed Capacity is highest in India. The power installed capacity is 11,134 MW. During
the last 3 years the capacity addition of 2080 MW is highest in the Country. The capacity
additional in the next 2-3 years is 4000 MW. The state achieved highest Plant Load Factor
of 89.7% in the country. NTPC has 1000 MW power plant at Visakhapatnam and
proposed to expand. The power cost is very competitive. Government of AP is providing
Industrial Express Feeders to mega industries to ensure uninterrupted power supply.
There are 990 Industrial Express Feeders in place ranging from 11 KV to 220 KV.
Visakhapatnam Industrial Water Supply Company Limited (VIWSCO) has set up India’s
first industrial water supply project in Visakhaptnam, which is having a 15 Kms link from
Yeleru Canal. It would facilitate a dedicated water reservoir of 60 MLD at the proposed
PCIPR location. An amount of Rs 530 crores have already spent and additional Rs 100
crores is proposed to spend for further development.
Infrastructure-PCPIR
54 Doing Business withAndhra Pradesh
Waste Management
Feedstock - Coal
Natural Gas
Naphtha
HPCL an anchor industry
Research, Development and Technical Support:
Ramky Group is developing Jawaharlal Nehru Pharma city, 10 Kms from the PCIPR site
in 2200 acres of land. The project provides a state of art Common Effluent Treatment
Plant to treat effluents before disposal through a marine outfall to sea. There is also a
secured land fill facility within 25 Kms from the site.
As far as feedstock is concerned, Andhra Pradesh is very strong in the coal deposits.
Godavari Valley Coalfield, which is 500 Kms from Visakhapatnam, has the coal deposits
of 16926 million tones.
There lot of gas findings in Krishna Godavari Basin of Andhra Pradesh by the Reliance,
Cairn Energy, Gujarat State Petroleum Co and ONGC. The anticipated gas production
by 2008-09 would be about 40 million cubic metric tones per day. Petroleum companies
are in the process of setting up Gas grid across Andhra Pradesh. The ONGC is also
setting up a 7.5 million tones Refinery in the Kakinada SEZ with a capital outlay of Rs.
7,500 crores. HPCL Visakhapatnam plant is expanding their existing project from 7.50
to 15 MMTPA with a project of Rs 8,000 crores. Recently Ministry of Petroleum and
Natural Gas, Government of India has offered 1151 Sq. Kms of shallow offshore and
1689 Sq. Kms of Onland blocks in Krishna Godavari Basin in the New Exploration
Licensing Policy-VI. The natural gas findings would provide a major leap for the
proposed PCIPR in Andhra Pradesh.
India is producing adequate quantity of Naphtha and is able to export. As far as Andhra
Pradesh is concern, HPCL existing plant at Vizag is production 90,000 MT per month
and their expansion project would provide an additional quantity of 3,75,000 MTs per
month. The proposed ONGC refinery project in Kakinada is like to produce 6,25,000
MTs per month. Thus total 13 million tones per annum would be available.
:
HPCL is proposing to expand their project with a total investment of Rs 23,000 crores
and they would like to promote PCIPR in Andhra Pradesh. This will become the first
anchor industry for the PCIPR.
Indian Institute of Chemical Technology, a world-class R&D institute located in
Hyderabad is a constituent laboratory of CSIR is having 400 highly qualified and skilled
scientists / technical officers. The institute has promoted 150 technologies and about 50
are under implementation. IICT will be nodal agency for promoting various technologies
and providing continuous technical support to the projects in PCIPR, Visakhapatnam.
The gas composition in KG basin contains 99.07% of Methane, 0.15% of CO2 and
0.15% of N2. The natural gas prevailing contractual prices of Ravva area in AP are very
competitive in the country. Oil as a feed stock, Petrochemicals, polyoelfins, Acrylates,
Polycondensates, Solvents, Fuels can be produced through cracker route and Natural
Gas, Coal as feed stock additionally Fertilisers and Alcohols can be produced through
Methanol route. This is very cost effective based on the preliminary estimates.
Infrastructure-PCPIR
Doing Business with Andhra Pradesh 55
The Krishna-Godavari (KG) yielding results for oil and gas exploration companies such as
Reliance Industries Ltd (RIL), Gujarat State Petroleum Corporation (GSPC) and Oil & Natural
Gas Corporation (ONGC). ONGC has said that it has discovered gas in the area (KG 98/2).
The Directorate General of Hydrocarbons (DGH) has projected 134 million stand cubic
metre per day (MMSCMD) of gas from new exploration licensing policy (NELP) blocks by
2011-12 in Krishna-Godavari basin. Blocks were offered to Reliance Industries Ltd., (RIL) and
Gujarat State Petroleum Corporation (GSPC) under different rounds of NELP global bidding
rounds.
Infrastructure-Natural Gas
The exploratory work done by the Oil and Natural Gas
Commission (ONGC) in Andhra Pradesh established
good reserves of gas in the KG basin both onshore
and off-shore. The first gas discovery in AP by ONGC
dates back to 1979, when presence of natural gas
was indicated through a blow-out in the first
exploratory well, Narsapur-1, drilled in the KG basin
in West Godavari.
With continuous survey and offshore exploration for
gas in KG basin,, spectacular new discovery of
natural gas in October, 2002 by the Reliance
Industries Limited (RIL) in D-6 block in the offshore of
KG basin of about 7-8 trillion cubic feet. Thereafter it
announced discovery of further gas of 1.2 trillion
cubic feet in Chirubhai-4 well in April 2003. The
confirmed level of gas in place is about 9 trillion cubic
feet. Recoverable quantity of gas from this group of
wells along is estimated to be 5-6 trillion cubic feet.
RIL is hopeful of finding more gas with further drilling
in the block as well as in other blocks which they hold
in the KG basin. Hence steady availability of 40
MMSCMD gas for the next 20-25 years appears to be
assured.
During 2005-- It's India's biggest gas find in 30 years.
And it could well turn out to be the world's largest find
in recent times. State-owned Gujarat State
Petroleum Corporation (GSPC) has struck gas in the
Krishna Godavari basin of Andhra Pradesh coast in
the Bay of Bengal that will save the foreign exchange
reserve by Rs. 10,000 crores annually for the next 20
years. GSPC was allocated the 1,850 sq. km. area on
the high seas for exploration during 2004 and in
about 300 days it had discovered gas in its KG block
which experts estimate was in the range of 20 Trillion
Cubic Feet (TCF) worth over Rs. 2 lakh crores
Natural Gas the preferred Fuel from Krishna Godavari Basin
Natural gas has emerged as the most
preferred fuel due to its inherent
environmentally benign nature,
greater efficiency and cost
effectiveness. The demand of natural
gas has sharply increased in the last
two decades at the global level. In
India too, the natural gas sector has
gained importance, particularly over
the last decade, and is being termed
as the Fuel of the 21st Century. The
share of gas in the World energy mix
is at present 23 percent, while that of
oil is 40 percent. Thus 63 percent of
world energy comes from
h y d r o c a r b o n s . I n I n d i a ,
hydrocarbons account for 44.4 per
cent of energy mix, 34 per cent by oil
and 10.4 percent by natural gas
56 Doing Business withAndhra Pradesh
Infrastructure-Natural Gas
DGH has projected gas production of 40 and INCAP, the new company would take
MMSCMD in 2008-09 with progressive care of the infrastructure needed to
increase to 80 MMSCMD by 2011-12 in channelise gas from the KG basin and also
Dhirubhai field in Krishna-Godavari basin. to pump, pipe and supply it within the state.
Reliance Industries has made seven more The pipeline infrastructure alone is
gas discoveries in the Krishna Godavari estimated to cost Rs 3,000 to Rs 3,500
Basin. This would take up RIL's production crore. IDFC will hold 50 per cent of the
from the KG basin from 40 MMSCMD to 80 equity in Krishna Godavari Gas Company,
MMMSCMD. and INCAP and GSPC 25 per cent each.
ONGC indicated that presently, the gas The State Government will set up a gas
availability in KG Basin is around 6.2 Million transmission corporation for laying
Metric Standard Cubic Metres per Day pipelines for proper utilisation of gas finds in
(MMSCMD) and after new gas findings, they the Krishna-Godavari basins belonging to
would implement Master Plan under which the ONGC and Reliance and avert diversion
they would take up City Domestic Network to other States. The Government of Andhra
in 40 to 50 cities in the country to supply gas Pradesh will enact legislation for this. The
through pipeline. pipelines within the State and up to its
GSPC had said its subsidiary Gujarat State borders as a network will be implemented
Petronet Limited (GSPL), has signed an through the recently formed Infrastructure
agreement for transportation of 11 Department within a time-frame to serve
mmscmd gas of Reliance from Bharuch to industries and power projects. The ultimate
Jamnagar for a period of 15 years starting goal is to ensure supply to the domestic
from first quarter of financial year 2008-09. sector for cooking purpose through pipes.
RIL is laying a 40-inch pipeline between Visakhapatnam has been included in the
Kakinada and Uran, which is capable of first phase of connecting seven districts with
transporting gas discovered by Reliance in the gas pipeline from the Krishna-Godavari
the KG basin along with GSPC’s gas. basin. LPG for domestic purpose and
Two 24-inch pipelines will ship gas to the industrial gas would be supplied to the
offshore shallow water central receiving district through a pipeline. Compressed
platform from where two shallow water natural gas might also be supplied along
pipelines of the same diameter will each with the two gases. Supply of gas from the
transport gas to its proposed onshore K-G basin would give a boost to the
terminal at Gadimoga village, about 30 km industrial activity in Visakhapatnam.
south of Kakinada where work is already Reliance agreed to the condition that gas
underway. would be supplied to other States from the
K-G basin only after meeting Andhra
Gujarat State Petroleum Corporation Pradesh's requirements.
(GSPC) has decided to utilise the 1385 km
long gas pipeline network of Reliance group Gujarat State Petroleum Corp has shortfor
transporting gas from Krishna-Godavari listed four global oil major to bid for the
basin to Bharuch in Gujarat. deepwater Deen Dayal gas field in Krishna-
Godavari basin. British Gas, British
The Infrastructure Corporation of Andhra Petroleum, ENI of Italy and US based
Pradesh (INCAP) is in the process of Chevron will bid to develop and explore 20
incorporating the Krishna Godavari Gas trillion cubic feet and 550 million barrel
Company Ltd. Being set up as a joint crude oil. GSPC is expected to finalise the
venture between IDFC Private Equity Fund, partner for the KG basin.
Gujarat State Petroleum Corporation Ltd
Doing Business with Andhra Pradesh 57
Gujarat State Petronet Ltd (GSPL), the gas distribution subsidiary of Gujarat State
Petroleum Corporation (GSPC) has signed an agreement with Reliance Industries Ltd
(RIL) to transport natural gas that RIL plans to get from its Krishna-Godavari basin to
Gujarat.
Reliance has already begun work on laying pipelines from the Krishna-Godavari basin to
Gujarat for gas transportation. RIL has begun working on 48 inch - 1,400 km East West
Pipeline (EWP) across Andhra Pradesh, Karnataka, Maharashtra and Gujarat to provide
access to potential gas markets in its corridor.
RIL is expected to begin commercial production of its 14 TCF of natural gas from the KG
Basin by 2008. Natural gas extracted from Ravva satellite fields in K-G basin is being sold
at a rate of $3.3 per million British Thermal Unit and proposed to increase to $4.5 MBTU
Cairn Energy has been in production of oil in the Ravva Oil Field in KG Basin for the last
10 years. Initial production was 3,700 barrels of oil per day has been increased to 35,000
barrels by 1997 and present production is 50,000 bpd. Presently the drilling operations
are on and production of 50,000 bpd will continue till the end of 2007
Infrastructure-Natural Gas
Land Marks of Natural Gas discoveries in Andhra Pradesh
2001 – Oil & Gas in Miocene / Pliocene in Deep Waters of Krishna-Godavari by Cairn
2002 – World’s biggest deep water gas discovery in KG basin by RIL
2005 – World’s biggest gas discovery in Shallow Water in KG basin by GSPCL
2005 – Oil in Pliocene in Shallow Waters of KG Basin by RIL
As per the estimates, expected production of Natural Gas in the Krishna-Godavari
basin by 2010 is 95 MMSCMD
58 Doing Business withAndhra Pradesh
Manufacturing
Andhra Pradesh
Andhra Pradesh ranks third in attracting investments in India
and Second in Committed Investments
59
Manufacturing
Investments attracted and investments implemented
Investments attracted from 1992-2006 (June)
342525
295600
196364
157691 154863 146765 145025
102761
Gujarat Andhra
Pradesh
Uttar
Pradesh
Maharashtra Chattisgarh Tamilnadu Orissa Karnataka
Andhra Pradesh ranks 3rd in
attracting investments in India
(Rs crores)
TOTAL 8315.00 9913.50 12400.00 13614.64 15381.00 17974.00*
SOFTWARE 1059.00 2001.00 2895.00 3668.00 5025.00 8100.00
54.92 60.50 45.00 55.00 84.00 130.00
ELECTRICAL & ELECTRONICS
PARTS
ENGINEERING ITEMS 1231.81 1305.00 1045.00 1149.50 1368.00 1320.00
1251.00 1751.00 2105.00 2420.00 3753.00 3900.00
DRUGS & PHARMACEUTICALS,
ALLIED CHEMICALS PLASTICS
HANDICRAFTS & CARPETS 41.00 45.00 191.00 200.55 252.00 270.00
HANDLOOMS & TEXTILES 395.71 395.00 406.00 426.30 447.00 477.00
MINERAL & MINERAL PRODUCTS 474.80 498.00 634.00 729.00 862.00 910.00
1231.40 1130.00 2188.00 1931.29 1785.00 1715.00
LEATHER,ANIMAL& MARINE
PRODUCTS
2575.36 2728.00 2891.00 3035.00 1805.00 1152.00
AGRICULTURE & AGROBASED
AND FOREST PRODUCTS
PRODUCT GROUP 99-00 2000-01 2001-02 2002-03 2003-04 2004-05
Exports from A.P. during the last 6 years (Rs crores)
Exports from Andhra Pradesh is growing at any average of 20% per annum
60 Doing Business withAndhra Pradesh
Manufacturing
Andhra Pradesh Industrial Base
Srikakulam
Vizianagaram
Visakhapatnam
East
West Godavari
Godavari
Krishna
Guntur
Prakasam
Nellore
Chittoor
Anatapur
Kadapa
Kurnool
Mahabubnagar
Ranga Reddy
Hyderabad
Medak
Nizamabad Karimnagar
Adilabad
Nalgonda
Khammam
Warangal
1359
1008
12560
6131
1096
1230
Existing Investments in
the manufacturing
sector (Rs in crores)
1779
558
1207
1415
734
2912
890
1262
4258
7198 2213
204
6882
1467
485
174
1414
Top ten industrialized
districts
Total Existing
investments in the
manufacturing
sector
Rs 60,000 crores
, Cement – L & T, Zuari, Myhome, KCP, India Cement, ACC
, Paper – A.P.Papers, ITC Bhadrachalam, Coastal Paper
, Power Generation Equipment – BHEL, Vijaya Electrical
, Electronic Hardware – ECIL
, Long Range Missiles – DRDO, DRDL, Bharat Dynamics
, Castings and Forgings – Ashok Layland, Nelcast
, Defence Electronics - Bharat Electronics
, Steel – RINL (Visakhapatnam Steel Plant),SJK
, Ceramics – Regency, Spartek, Sentini, RAK
Andhra Pradesh Strength lies in its fully diversified
industrial base which include…..
, Petroleum refinery – HPCL, ONGC
, Ship Building - Hindustan Shipyard
, Fertilizers – Nagarjuna, Coromandal, Godavari
, Hi-precision Machine Tools – HMT, MTAR, MARC
HBL Nife
, Drugs and Pharma – Dr.Reddy Laboratories,
Aurabindo, Bharath Biotech, Shanta Biotech
Doing Business with Andhra Pradesh 61
Investments implemented
5,393
1-4-2000 to 31-3-2004 1-4-2004 to 30-5-2006
(Rs crores)
4,849
0
100
200
300
400
500
600
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
Production of Paper
Source: CMIE
000’tonnes
355.7
365.8
387.1
398
513.5
536.09
1st in the country
0
5000
10000
15000
20000
25000
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
Production of Cement
000’tonnes
12655.05
13124.36
13259.33
14037.01
14289.23
19935.02
Source: CMIE
2nd in the country
0
200
400
600
800
1000
1200
1400
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
Production of Sugar
000’tonnes
1182.52
1022.1
1046.25
1209
887
982
Source: CMIE
5th in the country
Production of Spun Yarn
000’tonnes
120
125
130
135
140
145
150
155
160
2000-01 2001-02 2002-03 2003-04 2004-05
138.4
145.1
134.9
140.1
157.3
Source: CMIE
7th in the country
Manufacturing
Andhra Pradesh
Performance of Manufacturing Sector
62 Doing Business withAndhra Pradesh
Manufacturing
Andhra Pradesh
Manufacturing Sector
Iron & Steel
Cement
Paper
Food Processing
Fertilizers & Chemicals
Textile
Bulks & Pharma
Sugar
Granite
Engineering
Leather
Automobile
IT/ITES / Electronic Hardware
Srikakulam
Vizianagaram
Visakhapatnam
East
West Godavari
Godavari
Krishna
Guntur
Prakasam
Nellore
Chittoor
Anatapur
Kadapa
Kurnool
Mahabubnagar
Ranga Reddy
Hyderabad
Medak
Nizamabad Karimnagar
Adilabad
Nalgonda
Khammam
Warangal
Doing Business with Andhra Pradesh 63
Manufacturing
Manufacturing Sector
in Andhra Pradesh
Existing investments size
Investment
Rs Crs
Sector
Total 58437.59
3870.77
Miscellaneous
industries
48.67
Transportation
equipment
1081.94
Machinery &
equipments
511.87
Metal products &
Auto components
Basic metals 14404.42
8309.48
Non-metallic mineral
products
3577.15
Rubber, Plastic,
petroleum & Coal
products
Chemical products 8498.66
Leather Products 80.16
Paper products 2762.09
Wood products 90.84
Glass products 92.00
Power 1701.00
4465.63
Electrical &
Electronics
Cotton & Jute Textiles 3819.80
Beverages & tobacco 435.10
Food products 4688.01
64 Doing Business withAndhra Pradesh
Manufacturing
Presence of Multinationals
in Andhra Pradesh in Manufacturing Sector
Millinium Diamond Holding S.A, International Development
Consulting
LUXEMBOURG
SUBRAMANIYA PILLAI, Technology Resources Industries,
RICHTER HI -TECH SDN BHD, Pekeltting Business Centre,
Premium Vegetable Oils, Berhad , KUMPULAN EMAS BERHAD,
Premium Vegetable Oils, Berhad,
MALAYSIA
Spartek Emerging Opportunity, INDIA PVT EQUITY FUND, NANDL
INVESTMENTS LTD, Alghanim (Mauritius) Ltd, Johnson Controls
MAURITIUS
SHV Energy NV, The Netherlands Dev. Finance, NEDERLANDSE
INDUSTRIE VAN EIPRODUKTEN
NETHERLANDS
Poly Products Ltd, H.B Excellency OMAN Yusuf Bir Alawi
PHILLIPPINES Asian Aqua Culture Corporation
RUSSIA Lugansk Trans Accumulator, Owimex Ltd.,
Wearnes Pvt.Ltd. Photochem Technologies Pte.Ltd, Euro -asia
Capital And Equity Pte Ltd., Sunshine Allied Investments Ltd.,
EURO ASIA CAPITAL&EQUITY PTS, Sunace Kakoh(pte) Ltd,
ASIAN FINANCE & INVESTMENT CORPORATION
SINGAPORE
SWEDEN Telia Ab
SWITZERLAND Krebs & Company Ltd
TAIWAN Hwa Lin Electronic Company Ltd, J.V.Marine Enterprises Co.Ltd
Peter Robin Bloom, Cardiff Chemicals Ltd., Odlings Ltd, Std
Commercial Tobacco Co, ASSOCIATE COFFEE MERCHANTS,
Inter Continental Business Dev. Ltd
U.K
CIBC Oppenheiner Corporation, Wartsila NSD Corporation,
Tecumseh INC, GILLETTE SOUTH ASIA INC, COADE KACO
INTERNATIONAL, OST/AUTOWEIGH, OPTO -SENSOPS INO.
Vertex Communication Corpn., MICACRAFT PRODUCTS,
GREENVILLE MACHINERY CORP/MARUBENI CORP, Hercules
Tyre & Rubber Company, B.F.GOODRICH SPECIALITY, Congra,
Schein Pharmaceuticals Inc, CONAGRA, Esst Technology INC,
Flexo Semiconductors, General Electrical International,
INDUSTRIAL TECHNOLOGY INC, General Electric International.
USA
Country Foreign Company
Doing Business with Andhra Pradesh 65
Manufacturing
Presence of Multinationals
in Andhra Pradesh in Manufacturing Sector
Natex Process Technologies, Chemet Systems, Rfi Industries Pvt.
Ltd.,, Chemet Systems Pty Ltd.
AUSTRIA
Siat, ASIA VENTURES BELGIUM INTERNATIONAL LTD.,
Peroxygen Technologies Ltd.,
BRITISH
VIRGINIA
CANADA LAZER TECH LTD, Bell Canada Intl INC
CYPRUS Institute Of Field & Vegetable
DENMARK Ovotee International
FRANCE Cothern S.A, Dr.Norman Westbrook
Hemut Vetter, MVT -MASCHINEN-UND-VERFASREHNSTEC, Solidur
Gesellschaft, LOHMAN TIERZUCHT Gmbh, SUNPOWER
SOLARTECHNIC Gmbh, SOLIDUR GESELLSCHAFT, SALZGITTER
HYDRAULIKSTEMPEL, MS.RHEIN BIO TECH GMBH, RETHMBIER
GMBH, Rhein Biotech GMBH, Tesuco Group Of Companies
GERMANY
HONGKONG Brigitte Anne'yvonne Reneema'
ISRAEL Star Flower Group Ltd, Palma India Ltd.,
Finchimica, CHEMEN TECHNO SRL ,REDAELLI TECNA
MECCANICA, MANJINI COMACO SPA
ITALY
Tropical Food Engineering.S.R.L., Lampcmacchine International S. R,
Chementechno S.R.L.
ITALY
Aquaconoult B.V Berkenlantje -ii/Showa Trading, Matsushita Electric
Industrial Company Ltd., Marubeni Corpn., Fimatec Ltd.,Sumttomo
Fudosan
JAPAN
LG Chemicals Ltd. ,Big Star Trading Corporation Ltd., Boin Medic a
Company Ltd., D, Onswon Trading Co.Ltd, Mida Optical Co.Ltd,
Seung Han Ind.Co.Ltd
KOREA
(SOUTH)
KUWAIT Kuwait Industries Co.Holding
Country Foreign Company
66 Doing Business withAndhra Pradesh
Manufacturing
Global IT giants
operating in Andhra Pradesh
Microsoft
Oracle
Computer Associates
Convergys
Keane
Cordys-(Vanenburg)
Motorola
Nokia
Intergraph
Kanbay
CSC
Analog Devices
Cognizant Tech
SSA Global–(Baan)
Cypress Semiconductors
Satyam
Infosys
TCS
Wipro
Visualsoft
Infotech
Intelligroup
Sierra Atlantic
Polaris
Mentor Graphics
Qualcomm
NCR
Invensys
Synopsis
Patni
Sonata
ITES
GE Capital Accenture
Deloitte General Motors Holdings
24/7 Customer Corp (Capmark)
Dell IBM
Bank of America Google
ADP Franklin Templeton
HSBC McGraw Hill
IT Hardware
FAB
HCL Infosystems
Celetronix
Doing Business with Andhra Pradesh 67

Growth Sectors
Andhra Pradesh
Pharmaceutical India is expected to grow
from $5.5 bn to $25 bn by 2010 and $75 bn by 2020
69
Growth Sectors-Pharma
Pharmaceuticals and Bulk Drugs
Bulk drugs and pharmaceuticals
Hyderabad, which accounts for around one third of India’s total bulk drug production, is
considered as the bulk drug capital of the country. A large number of bulk drug units are
located in and around Hyderabad with good infrastructure and trained manpower. The
Indian pharmaceutical industry is large and rapidly growing. The pharmaceutical
industry in India is expected to grow from $ 5.5 bn to $ 25 bn by 2010 and $ 75 bn by
2020.
Indian Pharma Policy
, To ensure availability of good quality medicines at reasonable prices
, To improve accessibility of essential medicines to the poorer sections
, Higher investments to increase production of good quality medicines
, To promote greater research and development in the pharmaceuticals sector by
providing suitable incentives in this regard
, Pharma companies to become internationally competitive by implementing cGMP,
GLP ,GCP & other international guidelines
, To facilitate higher growth in exports of APIs and formulations by reducing the barriers
to international trade
, India as the preferred global destination for Pharma industry
, To facilitate implementation of the Health Policy of the country
2,500
2,900
3,364
3,903
4,528
5,253
1999 2000 2001 2002 2003 2004
(Rs crores)
(Annual growth of
investments – 16%)
320 370 435
672
1,054
1,686
1999-00
Exports
(Rs crores)
2000-01 2001-02 2002-03 2003-04 2004-05
3,777
4,533
5,439
6,529
7,729
9,034
Bulk Drugs
(Rs crores)
(Annual growth in production– 20%)
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05
15,960
18,354
21,104
24,185
27,692
31,946
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05
Formulations
(Annual growth in production– 15%)
70 Doing Business withAndhra Pradesh
Pharma Future in India Andhra Pradesh Advantage
,
,
,
,
,
,
,
,
Why to invest in India ,
,
,
,
,
,
,
,
,
,
,
,
,
Growth rate of bulk drugs in this Andhra Pradesh has a dominant
country is 12% as against 10% of position in this sector with a market size
China of $ 1.6 bn presently growing upto $ 8
bn to 10 bn by 2010, and is well known
Technological manpower in this area internationally for its skill in chemical
is more than in China and other synthesis and process engineering and
countries its speed to market. The State intends
Increased purchasing power will capitalizing on these strengths, acting
increase the demand for better quickly in the window of opportunity
h e a l t h c a r e f a c i l i t i e s a n d provided by global regulatory change to
pharmaceuticals build a strong and globally competitive
pharmaceutical industry.
The increase in urban population
from 18% to 30% is key determinant 1/3rd of the national Bulk Drugs
to market demand production from A.P
Hyderabad predominantly Bulk
The recent privatization of health Drugs manufacturing hub
insurance sector will accelerate the
per capita drug expenditure Hyderabad is a centre for institutes of
excellence, chemical synthesis and for
invention of new molecules
Hyderabad is connected to major
international destinations by air
Expiration of patents of many of the Visakhapatnam a strategic location is
best selling drugs within the next just 600 kms away from capital city
decade Hyderabad
Managed care, cost containment in Visakhapatnam is well connected by
US and international markets air, road, rail and seaways –
influence the demand for generic Visakhapatnam port, Gangavaram port
drugs
The State produces a majority of 500
IPR related obligations forcing the basic drugs produced in India
companies abroad to explore the The half-year net sales of the
markets for survival and growth pharmaceutical industry the State is Rs
Low manufacturing cost, well 4700 crores
nurtured process development skills The half-year net profits of the
in research Pharma industry in the State is Rs
Expertise in legal issues related to 503.26 crores with a growth of 11.69%
patents Pharma production in the State will
reach US$ 8 billion by the end of 2010
Manufacturing cost structure
Growth Sectors-Pharma
Doing Business with Andhra Pradesh 71
Skilled Human Resources
Jawaharlal Nehru Pharma City at Parwada, Visakhapatnam
The State offers excellent opportunities for the growth of the pharmaceutical
industry in the country due to availability of trained and skilled manpower research
and development facilities, including the Indian Institute of Chemical Technology
(IICT), Centre for Cellular and Molecular Biology (CCMB), National Institute of
Nutrition (NIN), Centre for DNA Fingerprinting and Diagnostics (CDFD), Indian
Immunological Ltd (IIL), S.P. Biotech Park, ICICI Knowledge Park, and many
universities. In addition to this, to develop human resources required for the
innovation led growth, Indian Institute of Life Sciences (IILS) was set up in
Hyderabad in collaboration the industry, the Government and research institute to
provide the following:
, Post-Graduate and Ph.D Programmes in Pharmaceutical Sciences and
Drug Discovery.
, Train the students and researchers to cater to the needs of the industry.
, Do collaborative research in association with international research
institutes.
, Collaborate with the Indian industry.
Realising the potential scope and imminent challenges in Pharma sector post 2005,
the Government of Andhra Pradesh has developed Jawaharlal Nehru Pharma City
at Parwada near Visakhapatnam in 2200 acres of land with world class
infrastructure to support efficient and environment-friendly Pharma manufacturing.
The Pharma City is being developed on a commercial format with private sector
participation. M/s Ramky Pharma City (India Ltd) with the equity participation of
Ramky and APIIC with 89%, 11% equity respectively. A Special Purpose Company in
the name & style of Ramky Pharma City (India) Limited incorporated has entered
into concession agreement with the Government of Andhra Pradesh to build,
operate and maintain the Pharma city infrastructure and amenities. Environmental
clearance was accorded by the Ministry of Environment and Forest, GOI in
March,2005 Construction of CETP and marine outfall facility for letting out the
effluents into sea and Hazardous Waste Management are certain important
infrastructure components. The other facilities in the Pharma City are Storm water
Discharge, Effluent Conveyance, Sewage Conveyance, Hazardous Waste
discharge, Parwada Balancing Reservoir (Yeleru Canal), Underground & Overhead
Reservoir.
, 450 acres were offered allotments to 41 Major and Medium Companies
through BDMA.
, 100 acres was allotted to 3 Major and Medium Companies of non-BDMA
Growth Sectors-Pharma
72 Doing Business withAndhra Pradesh
Jawaharlal Nehru Pharma City
Parwada, Visakhapatnam
Growth Sectors-Pharma
Doing Business with Andhra Pradesh 73
The Government of Andhra Pradesh has identified the
biotechnology sector as engine of economic growth and
one of the thrust areas that has the potential to make a
positive contribution to the life of the common man. The
Government has consistently pursued proactive policies
and undertaken several initiatives to support and
promote the biotechnology sector in the State.
Government of Andhra Pradesh has several firsts to its
credits in the area of Biosector.
Genome Valley is India’s first state-of-the-art biotech cluster providing world class
infrastructure to over 100 biotech companies. Genome Valley occupies an area of 600
sq. km in the city of Hyderabad. It comprises of the India’s first knowledge park called
ICICI Knowledge Park and India’s first Biotech Park called Shapoorji Pallonji Biotech
Park. These parks lie adjacent to each other and offer world-class facilities to the
occupants.
Genome Valley in Andhra Pradesh has emerged as a natural cluster and location of
choice for biotechnology research, training and manufacturing activities. The State
has especially emerged as a hub for Biopharma companies with Biopharmaceutical
companies comprising more than 50% of the State’s Biotechnology industry and
considered as “Biotech Hub of India”.
Over 14 international biotech companies have established their operations in the
cluster over the last one year and several others such as Nektar Therapeutics listed on
the NASDAQ and United States Pharmacopeia have established their operation in the
Genome Valley. Some of the world’s fastest growing entrepreneurial companies that
have begun operations in Genome Valley include Albany Molecular Research Inc,
Mithros Chemicals, Chanelle Pharmaceuticals and NND Biomedical Data Systems
Pvt. Ltd. Further, India’s leading biopharmaceutical companies which include
Shantha Biotech, Bharat Biotech, Biological-e-Ltd., GVK Biosciences and Dr. Reddy’s
amongst several others are based in Andhra Pradesh.
The presence of world-class research institutes, a large pool of scientific talent private
healthcare institutes and corporate hospitals contribute to making the State an ideal
location for successful in biotechnology related pursuits.
A testimony to this is the fact that Andhra Pradesh has bagged the prestigious
“Biospectrum Bio State of the Year in 2003, the first ever biotech industry award in the
country. Since drafting the State Biotech Policy in 2001, the sector has witnessed
significant growth in terms of attaining critical mass and infrastructure development,
which was a result of the perennial and combined efforts of the Government, the
industry and the academia in State.
Genome Valley – India’s First Biotech Cluster
Growth Sectors-BioTech
Biotechnology
74 Doing Business withAndhra Pradesh
Key Highlights of the Policy
ICICI Knowledge Park
Shapoorji Pallonji (SP) Biotech Park
Agri-Science Park
Biotech Venture Capital Fund
, Single Window Clearance System
, Sales tax of 1%
, Provision of rebate based on the employment opportunity created
, To support the various initiatives being undertaken, the Government proposes to
redraft the biotech policy and introduce positive changes that would enable an
investor friendly environment.
– The cluster houses a world class centre for leading edge
business driven research and is India’s first knowledge park for collaboration
between research community and industry. A Life Sciences Incubation Centre has
been set up at ICICI Knowledge Park with an investment of Rs 300 million. It has
three phases and a total of 14 companies are located in knowledge park. It also has
IPR & Patent facilitating cell.
– is Rs 1.00 billion project spread over
400 acres in the valley with recorded occupation of over 100% of space in the first
phase spanning over 140 acres and 100 acres in the second phase. There are about
23 companies located in SP Biotech Park in two phases. The third phase of SP
Biotech park in 300 acres is under development.
– Genome Valley signed a MoU with ICRISAT (International
Crop Research Institute for the Semi-Arid Tropics), to jointly promote an Agri-
Science Park based at the ICRISAT campus. The State Government has set up an
Agri-Science Park in collaboration with ICRISAT in their campus.
– The Andhra Pradesh Industrial Development
Corporation (APIDC) Venture Capital Limited has launched India’s first Biotech
focused Venture Capital Fund with a seed capital of Rs 10 crores from Government
of Andhra Pradesh.
Growth Sectors-BioTech
Doing Business with Andhra Pradesh 75
,
,
,
,
,
,
Preparation of compendium of State Biotech Resources to facilitate
dissemination of information regarding the biotechnology players in the state to
industry, academia, R&D institutions and society large. The compendium will
as a ready reckoning of biotech resources in the state and it would enable B2B
interaction in the state.
Dedicated Township for employees of Genome Valley including integrated
township, residential units, recreation facilities, library, super markets and
schools in the identified area of 37 acres.
It is proposed to set up International Animal Resource Facility in collaboration
with Indian Council for Medical Research (ICMR) & National Institute of
Nutrition (NIN) in Genome Valley in earmarked area of 100 acres of land to
assist Genome Valley in attracting drug discovery companies to pursue
preclinical research in the state.
Setting up of Biotechnology Incubation Centre in SP Biotech park in
collaboration of Department of Biotechnology, Government of India and with
the technical inputs from Indian Institute of Chemical Technology to foster the
growth of start-up companies through provision of specialized facilities for
technical and business need at par with international standards.
International Life Sciences – in collaboration with Dr. Reddy’s Laboratory in
Genome Valley proposed to be promoted jointly by industry & Government to
provide training and research facilities in highly specialized areas of
pharmaceutical sciences and in drug discovery sector to cater to the needs of
the industry in meeting global challenges
Marine Biotech Park is being set up at Parwada, Visakhapatnam covering 218
acres of land. A Marine Biotech Complex is also proposed in the Marine Biotech
Park in association with the Andhra University to focus on marine resources
apart from research on marine foods, nutraceuticals and fisheries.
Growth Sectors-BioTech
Biotechnology promotion on the roadmap
76 Doing Business withAndhra Pradesh
Andhra Pradesh will have a strong mining sector, growing at 10-12 per cent a year. The
state have ample Mineral resources & strong mineral based industries like cement, steel
and granite and healthy growing exports of minerals. Andhra Pradesh will be India’s
cement and granite powerhouse and continue to be a dominant producer of coal in
South India. The State’s mineral potential will be utilized in an environmentally and
socially sustainable manner.
Andhra Pradesh is the second largest storehouse of mineral resources in India. A total of
48 minerals were located with vast explored resources of coal, limestone, bauxite,
barites, mica, beach sands, granite, limestone slabs etc., and good resources of oil and
natural gas, manganese, asbestos, iron ore, ball clay, fireclay gold, diamond, graphite,
dolomite, quartz, tungsten, steatite, feldspar, silica sand, Uranium, beach sands
minerals. etc. The state stands First in value of mineral production, contributing 9 to 10
per cent (Rs. 6583 crores) of the country’s mineral value production and approximately
Rs.800 crores by way of foreign exchange. It produces about 80 million tonnes of
industrial minerals and 8 million cubic meters of dimensional stones and building
material, contributing nearly 865 crores to the State exchequer.
Mineral reserves ( in million tones)
Coal 16584
Limestone 33150
Bauxite 613
Barites 81
Diamond (carats) 1817490 (carats)
Granite 2788 ( in million Cu. Meters)
Gold (ore) 8.96
Beach sands 241
The state has identified the mining sector as one of the growth engines for the overall
development of the industry and infrastructure. With its vast explored mineral potential
and natural infrastructure, it forms a natural opportunity for investment and
development of mineral and mining projects. The State envisages mineral projects with
the participation and investment from the private sector. There are six coal based
thermal plants with a generating capacity of 5000 MW power. The present production of
35 million tones of coal is being mostly consumed in the power plants of South India.
The Government intends to augment the coal production with private participation. It
has identified coal blocks for exclusive mining under private sector and captive purpose.
There is ample scope to tap 16584 million tonnes of coal reserves for development of
coal based thermal plants, Washeries, gasification and carbonization plants.
Estimated reserve
,
,
,
,
,
,
,
,
,
Fuelling Growth
Growth Sectors-Mines & Minerals
Mines and Minerals
Doing Business with Andhra Pradesh 77
Second Largest Producer Beach Sands
Opportunities
Bauxite
Diamonds
Barites
Gold
Andhra Pradesh is the second largest Number of Beach sands occur all along
producer of cement in the country. the East Coast right from Srikakulam in
There are 59 major and mini cement the north to Nellore district in the south
plants with an installed capacity of 23 and extend over a stretch of 950
million tonnes per annum. The state kilometers. They contain15-20 per cent
has vast resources of 33150 million of Illmenite, Rutile and Monazite with a
tones of various grades of limestone in proved reserves of 241 million tonnes,
14 districts, constituting about 34 per majority of Illmenite (116 million tonnes)
cent of entire country. of Heavy Mineral Beach Sand deposits
and occupies top position with 36 % of
Opportunities exist by way of mineral Heavy Mineral Beach sand reserves of
exploration projects in some of the most the country. Andhra Pradesh have large
lucrative fields like diamonds, gold, scope for establishing Beach Sand
beach sand, base metals, limestone, Separation Plant, Production of
granite etc. Reconnaissance permits Ti t anium & Es t abl i shment of
were granted over an area of 56400 downstream industries.
square Km. for exploration of diamond,
gold, base metals etc. Huge reserves of around 613 million
tonnes of metal grade Bauxite deposits
Diamonds occur over wide areas were proven in Visakhapatnam and East
covering about 50,000 square Km. in Godavari districts. Andhra Pradesh is
nine districts with an average incidence endowed with 2nd largest Bauxite
of 3 to 4 carats/100 tonnes of source deposits in the country next to Orissa
material. Diamond bearing Lamproite and there is a scope for establishing 2 to
& Kimberlite occur wide areas in 3 Alumina & Aluminum Industries.
Anantapur, Kurnool, Kadapa,
Mahabubnagar, Nalgonda, Krishna &
Khammam districts. The single largest deposit occurring at
one place is located at Mangampet in
Kadapa district of the State, with a
The number of gold-bearing areas occur reserve of over 80 million tonnes. It also
in Chittoor, Anantapur, Kadapa, Kurnool occur in Kurnool, Anantapur,
& Mahabubnagar districts of the State Mahabubnagar, Khammam, Prakasam
with an average incidence of 3 to 5 & Nellore districts.
grams/tonne of source material.
Growth Sectors-Mines & Minerals
78 Doing Business withAndhra Pradesh
Granite
Quartz & Feldspar
Coal
Marble Limestone
Ceramics
development of advanced ceramics like
Andhra Pradesh is known for wide Electro and Mechano ceramics under
variety of Granites and having an private sector investment.
estimated reserves of 2788 million cubic
meters. World renowned Chimakurthy
Black Galaxy Granite, Srikakulam Blue These minerals extensively occur in
& White, Warangal and Khammam Ranga Reddy, Mahabubnagar, Nellore,
Black, Tan Brown of Karimnagar, Indian Kadapa, Kurnool, Medak, Anantapur,
Aurora of Nizamabad, Tiger Skin and Nalgonda, Vizianagaram, Visakapatnam
Madanapalli white of Chittoor etc., occur & Guntur districts.
in plentiful quantities. The state
produces about 535370 Cu.Meters for
processing and polishing. Presently, Andhra Pradesh is the only producer of
Granite worth about Rs.400 to 450 coal in the entire South India. It
Crores is being exported, a large produces around 35 million tonnes
quantity of which goes to USA, China, annually. The estimated reserves are
Japan European market etc. Plenty of around 16584 million tonnes. Major
opportunity exists for making novelty coal bearing areas fall in Adialabad,
and artifact products with polished Karimnagar, Khammam & Warangal
Granite, which have a good demand in districts. Six blocks were identified for
the international market. privatization in Adilabad & Khammam.
Andhra Pradesh also have large scope in The State contains 34% of the Country's
promoting Marble deposits of variegated Limestone reserves with estimated
colour from Khammam, Guntur, reserves of 33150 million tonnes and
Kadapa, Kurnool & Anantapur districts. produces about 28 million tonnes.
Extensively occur in Nalgonda, Kadapa,
Kurnool, Anantapur, Mahabubnagar,
Andhra Pradesh is the largest source of Ranga Reddy, Adilabad, Karimnagar,
various Clays, Feldspar, Quartz, Silica Krishna & Guntur districts. At present,
Sand, Rare Earths like Titanites, there are 14 major & 29 mini cement
Zirconites, etc. Major deposits of clay plants.
occur in East Godavari, West Godavari,
Adilabad, Kadapa, Kurnool, Ranga
Reddy, Visakapatnam & Srikakulam
districts. The Conventional Ceramic
Industry in the State provides a strong
base for development of advanced
ceramics with sophisticated processing
technology transfer. The Government
of Andhra Pradesh invites offers for
Growth Sectors-Mines & Minerals
Doing Business with Andhra Pradesh 79
Producing about 18 million tonnes account for 6% of the country’s reserves.
which forms largest cement producing In addition to this, Reliance Industries
state in the country. Exploitation of Limited (RIL) struck 9 trillion cubic feet
Limestone for Cement manufacture can (tcft) of gas reserves in Krishna Godavari
form a strong base for the establishment basin which was found the biggest gas
of many Cement Plants to cater to the find in the country constituting 50% in
needs of the construction industry. A.P. the country. RIL is proposed to produce
stands 1st in the country in production & 40 MMSCMD gas by 2009.
promoting various colours of Limestone
Slabs for flooring & there are more than
2000 Limestone Slab cutting & Tungsten Ore occurs around
polishing units. Limestone Slab Tapsikonda and Burugubanda in the
quarrying & processing industry is one East and West Godavari districts.
of the major employment generating Proven reserves of around 11 million
industries in the State. tonnes exist in the State. Tungsten plays
a very useful role in Defence
components, Super alloys and
A.P. stands 2nd in occurrence of electronics.
Uranium deposits. Uranium occur in
Nalgonda, Mahabubnagar Kadapa,
Kurnool & Guntur districts. At present The Government of India has approved
Uranium is being produced only from foreign Direct Investment upto 74
Jaduguda Mines of Jharkhand State. percent (and more in exceptional cases)
Andhra Pradesh have a very good scope in integrated projects in the mining
for producing Uranium & establishment sector. Private sector participation in
of Atomic Power Plant. joint ventures with the Andhra Pradesh
Mineral Development Corporation (
APMDC), a fully owned Government
Rich reserves of Oil and Natural Gas undertaking, for investment of mineral
occur over 45,000 Square Kilometers in explorat ion , exploi tat ion and
the Krishna – Godavari basin. M/s. Oil & development of mineral resources, in
Natural Gas Corporation Ltd. produces envisaged for this sector. The APMDC
about 213227 tonnes of crude oil and has already initiated investment
1657 Million Cubic meters of Gas from proposals in bauxite, beach sand,
the state. Recent finds of large reserves granite etc.
of gas in the On shore & Off shore areas
of Krishna & Godavari basin has created
scope to increase the production by
intensive exploration and development
of infrastructure to cater to the needs of
the growing demand in the domestic
and industrial sector. The Krishna
Godavari basin of Andhra Pradesh
Tungsten ore
Uranium
A Mega Investment Opportunity
Oil and Natural Gas
Growth Sectors-Mines & Minerals
80 Doing Business withAndhra Pradesh
In next coming years, Andhra Pradesh is Cheemakurthy Galaxy Granite stands
likely to open up Diamond mines after unique & world class deposits. Andhra
the 1st Diamond Mines of Panna in Pradesh is the biggest promoter of
Madhya Pradesh with the participation of Processing of Granite in the Country &
National & International companies. there are about 50 large scale and more
Similarly there is a good scope for than 1000 small scale granite cutting &
reviving the old Gold Mines & opening a polishing units in various districts of
World Class Gold Mine in Kurnool district Andhra Pradesh. The granite industry is
in next coming years. With the demand significantly contributing to the exports
of steel in the Country and available & employment in the State, next to
technology, in coming years more than Agriculture.
50 Sponge Iron Plants are expected to
be established with the available Iron
Ore deposits in Anantapur, Kurnool, Decentralization, speedy clearance and
Krishna, Karimnagar, Warangal, follow up with the Central Government,
Nalgonda, Prakasam & Khammam are some of the services provided by the
districts. State for promoting investment in the
mining sector. The Government will also
Since recent past, Andhra Pradesh focus on developing infrastructure,
stands 1st in Granite Production & training personnel and creating
Processing in the Country, promoting institutions that support the
wide varieties of granite in the Country. development of Mining.
Among the granite deposits,
Speeding up the process
Growth Sectors-Mines & Minerals
Doing Business with Andhra Pradesh 81
India is among the world’s major 8% on ready to eat packaged foods and
producer of food, producing over 600 instant food mixes. Import duty reduction
million tons of food products every year. from 15% to 5% on processed food
India ranks first in the world in production packaging machines. Special window in
of cereals, livestock population and milk. NABARD for refinancing infrastructure and
It is the second largest fruit and vegetable market development of processed foods
producer and is among the top five industry, proposed 100% excise duty
producers of Rice, Wheat, Groundnuts, exemption for condensed milk, ice cream,
Tea, Coffee, Tobacco, Spices, Sugar, and preparations of meat, fish & poultry, pectin,
Oilseeds. Food processing industry pasta and yeast industry.
includes fruit and vegetable processing, Around 19 percent (average contribution) of
fish processing, milk processing, meat AP’s GDP comes from agriculture and it
a n d p o u l t r y p r o c e s s i n g , provides employment to around 65 per cent
packaged/convenience foods, alcoholic of the state’s population. The state enjoys a
beverages and soft drinks and grain position of preeminence in respect of crop
processing. Milk processed foods like production. Andhra Pradesh is endowed
chocolates and ice creams were much in with bountiful natural resources with good
demand in India. Agri products like soil and a diversified cropping pattern. The
coconut has multiple values in the market edge comes from major irrigation systems
from coconut water to oil, fibre and leaves fed by rivers like Godavari, Krishna,
are economically valuable. Thungabhadra, Penna, Nagavali,
The agricultural sector’s performance Vamsadhara etc. Agriculture in the State has
has direct impact on the processing made rapid strides taking the annual food
industry and its exports. The raw grains production from 56.20 lakh tons in
agricultural and horticultural yield into 1955-56 to 160.28 lakh tons in 2000-01.
human consumption is called processed The new emphasis on agriculture will be on
foods such as fruit jam, jelly, milk identifying and developing sectors with high
products. The performance of the agri- potential for growth; building strong agro
processed foods industry essentially based industries,developing agriculture in
depends upon the general performance rain-fed areas; and spurring growth through
of the economy and the performance of policy reforms. The major growth engine in
agriculture and industry sectors in agriculture, rice, is a large contributor to
particular. The processed foods are Andhra Pradesh’s economy (Contributing a
slowly capturing the rural market also. In quarter of agricultural GSDP) that even
urban areas the processed foods become small improvements in the sector will create
one of essential items due to change of a large impact. Since rice growing is the
life style and long working hours, many primary occupation of a large proportion of
urban families are depending upon these the state’s agricultural labor, its further
processed ready to eat foods. The market development will increase rural incomes
is growing considerably due to rapid and reduce poverty. To achieve this vision,
urbanization. It is expected to continue to the State of Andhra Pradesh will
some more years. The government aggressively pursue strong agricultural
support for processed food industry by growth, including employment generation,
reduction of excise duty from 16% to and target levels of investment needed.
Food & Agro Processing
Food & Agro Processing
82 Doing Business withAndhra Pradesh
Andhra Pradesh is the second largest producer of horticulture products in India and it is
expected that the production will reach 22.90 million tonnes by the year 2020. The
State’s 970 kilometer coastline, 8,577 kilometer river length and 102 reservoirs spread
over an area of 2.34 lakh hectare have been the principal sources of its marine foods,
fresh water foods, including fish and prawn. Andhra Pradesh is the largest egg producer
in India. As per the Agro Climatic Zones the following Major Crops are grown in Andhra
Pradesh
S.No Resources Districts
1 Mango, Coconut, Cashew, Oil Palm, Bhendi, Krishna, East Godavari
Chillies, Mushrooms, etc. & West Godavari
2 Mango, Banana, Cashew, Coconut, Oil Palm, Srikakulam,
Tapioca, Sweet Potato etc Vizianagaram & Vizag
3 Mango, Oranges, Acid Lime, Banana Oil Palm, Chittoor, Prakasam
Coconut, Potato, Flowers, Coriander, Tamarind, etc. & Anantapur
4 Mango, Oranges, Guava, papaya, Flowers, Chillies, Nizamabad,
Turmeric, Coriander, etc. Karimnagar & Adilabad
5 Grapes, Guava, papaya, Oranges, Acid Lime, Medak, Rangareddy
Tomato, Flowers, Chillies etc., & Mahabubnagar
6 Mango, Oranges, Banana, Guava, Pomegranate, Kadapa, Kurnool
Bhendi, Tomato,Onion,Flowers, Chillies,Turmeric. & Anantapur
7 Pine Apple, Black Pepper, Hill Banana, Guava, High Altitude
Mango, Cole Crops, Tomato, Aromatic Plants. Tribal Areas
Food & Agro Processing
Growth
The state has about Rs 5,000 crores investment in the food processing sector
contributing 20% of the total existing investments in the state. The annual production in
this sector is about Rs.9260 crores contributing 20% of the total industrial production in
the state. .Agriculture will experience a quantum leap in growth, achieving an average
annual growth rate of 6 per cent in real terms over the next 20 years.
Doing Business with Andhra Pradesh 83
Strengths for promotion of Food and
Agro Processing Industry
Policy Support
Agri Export Zone
Agro Processing - Agro processing has
avenues in:
Rice
Maize
Jowar
Investment
envisaged for the agricultural sector will
require significant investment. The State
A n d h r a P r a d e s h r a n k s f i r s t i n will need promote investment around
productivity of crops like coarse Rs.70,000 crore until 2010, while the total
cereals, Jowar, Maize and Bengal investment until 2020 will be roughly
gram. Rs.1,60,000 crore.
- The Government provides , Andhra Pradesh ranks 2nd in
p r o d u c i n g Va l u e A d d e d f o o d reimbursement of power costs @ Rs.1 per
p r o d u c t s a n d b e v e r a g e s w i t h unit up to 2010.
country 10% share. Per worker
o u t p u t i n t h e f o o d - p r o c e s s i n g Rice : There is scope for establishing an Agri
sector in Andhra Pradesh is very high. Export Zone (AEZ) for Rice in East Godavari
, The State is pioneer in Oil palm and West Godavari. · Price-wise AP can
cultivation – 4.1 lakh hectares compete with several other countries. ·
Higher Nutrient content of certain varieties , The State is 1st in sheep production
like brown rice, purple and black varieties , The State ranks 1st in area and
product ion in Mango, Oi l palm, are preferred in many developed countries
Chillies and turmeric and can also be promoted in developing
countries. · The main focus for Andhra
, The State ranks 1st in egg (1,505 Pradesh is on Non- Basmati rice varieties,
crores p.a) and broiler production which include Sona Masuri, Samba Masuri,
, The State ranks 1st in production of HR-47, IR-64, Krishnaveni and Kavya.
brackish water shrimp and fresh
water prawn
, 2nd in production of fresh water fish
: Value addition in rice based products
, 2nd longest coastline of 974 kms
like rice flakes, puffed rice, rice noodles, rice
, 2nd in area and production in Citrus and cakes, fermented products, bakery
Coriander products etc. · Rice beverages, rice barren
The state is very strong in the corps like oil. · IICT has developed technologies for
Rice, Groundnut, Pulses and Bajra. The value-added products. · FAO declared 2003
industries in food products contribute as “International year of Rice” recognizing
19.36 per cent to total industrial production the importance of rice in the food basket.
in the state. The major segments in the : The requirement of maize by the
Food & Agro Processing sector are - Rice major consuming agency i.e. poultry is
Mills, Sugar, Dal Mills, Diary units, Milk around 15 lakh MT and is to be exported
Products & Confectioneries, Palm Oil and outside the state. · To avoid exploitation by
other Oil Mills, Biscuits, Mushrooms, Cold traders, processing of maize can be
Storages. promoted in starch making, maize granules
The state has about Rs 5,000 crores etc. on the lines of Karnataka which has a
investment in the food processing sector separate body called “CORNFED”. ·
contributing 20% of the total existing Ethanol made from maize is being blended
investments in the state. The annual with petrol and provides scope for utilizing
production in this sector is about Rs.9260 the marketable surplus in the state.
crores contributing 20% of the total : Similarly from jowar, alcohol can be
industrial production in the state. extracted and made use of efficiently.
- Achieving the growth
Food & Agro Processing
84 Doing Business withAndhra Pradesh
Andhra Pradesh is a frontline State in to achieve these goals, Government of
gearing up for Post-MFA era effective Andhra Pradesh have come with a
from Jan’2005. Chances are abound for strategy evolution.
creation of employment avenues and Opportunities exist for setting up modern
earning foreign exchange through Textile weaving and Apparel units in the State. All
Industry. New vistas are laid towards infrastructural facilities are already
realizing this goal and strategy evolution. provided in the Apparel Export Park,
Moves are afoot to implement Apparel Gundlapochampally (Ranga Reddy),
Export Parks and Textile Parks across the Textile Park, Pochampally (Nalgonda) and
State as envisaged in the Strategy. Sircilla (Karimnagar). Textile Parks are
The State of Andhra Pradesh has well being developed in Pamidi and Rayadurg
developed spinning and processing (Anatapur), Pashamylaram (Medak),
Sectors in the Textile industry. Today the Kothur ( Mahabubnagar) and Warangal.
infrastructure of the State is well Further one more Apparel Export Park is
developed. It has a good number of 100% coming up in APSEZ Visakhapatnam.
EOUs along with 10759 weaving units There are plans/ proposals to set up
with a production capacity of 28,381 Textile Parks in Mylavaram (Kadapa)
million meters of fabric. Processing Mangalagiri ( Guntur) Nagari ( Chittoor)
centers are equipped with a capacity to Yemmiganoor (Kurnool), Chirala (
process on an average over 54 units, Prakasham) and Rajam (Srikakulam).
which adds up to 15 million meters of The number of Powerlooms in Andhra
cloth per annum. The State is leading Pradesh aggregates to around 44,000
producer of Cotton with an annual employing approximately 1.10 lakh
production base of about 2.6 million workers.
bales per year. The State aims to emerge
as a major player in the production and
exports of textiles by 2010. Apparels,
fabrics, made-ups and furnishings have Garmenting is being considered as one of
been identified as growth engines by the the sectors where India has competitive
State. The State has a target of achieving advantage and supposed to gain from
exports to a level of US $ 2 billion in phasing out of MFA. Andhra Pradesh has
handloom and textiles per annum by recognized the Garmenting Industry as
2010. one of the Growth Engines.
The State also aims to increase its
domestic contributions for apparels and
textile products to Rs 20,000 crores. (US
$ 4000 million). The domestic sales of the
state are expected to be around Rs
12,000 crores (US $ 240 million) per
annum by 2010. Exports of apparels from
the State are expected to grow steadily to
the level of US $ 2 billion by 2010. In order
Stitch your way to global market
through Apparel Park for Exports
Apparel & Textile Industry
Apparel & Textile Industry
Doing Business with Andhra Pradesh 85
Apparel Export Park,
Gundlapochampally,
Ranga Reddy District
Apparel Export Park, Vizag
Government of India have introduced
three schemes to address the basic
problems.
For modernization by offering 20%
A p p a r e l E x p o r t P a r k , subsidy on modern looms up to a cost of
Gundlapochampally is the flagship of Rs 100.00 lakhs under Technology
Apparel Industry in the country. It is a Rs Upgradation funds scheme and making
14 crore project lies 18 KM to available a wider credit net work
Hyderabad, spread in 176 acres. It is including non-banking financial
heading for 2nd phase expansion. companies
Chermas, Pokarna and host of other
units are exporting to US, UK and several For creating environment by giving
other countries and their clientele 25% subsidy up to a limit of Rs 11.52
include Wall mart (US) , JC Penny etc. lakhs for beneficiary for construction of
The Park is equipped with the State-of- powerloom work sheds, Under the
the-art facilities such as Uninterrupted Powerloom workers Group work shed
power supply from a dedicated Power scheme.
station, Roads, Drinking water,
Drainage, Effluent discharge, Sewage For developing infrastructure for
s y s t e m , Telecommunication, enabling cauterization of new work
Transportation facility etc, Fire station, sheds permitting access to subsidy up to
Truck terminals, Training institute, Bank, Rs 20.00 Crores for proposal under the
Post office, Crèche, Canteen and other Tex t i l e C e n t r e I n f r a s t r u c t u r e
facilities are coming up. 15 units have Development Scheme
started commercial production creating
employment to 6000 persons. Rs 100 The Entrepreneurs are welcome to
crores worth garments produced during invest in Andhra Pradesh and avail the
2004-05 and 60% of the products are benefits of the above schemes along
exported to UK, USA and EU. ATDC, with the incentives being provided by
NIFT and HIFT are catering to the needs GOAP for their prosperity and growth.
of design and skill up gradation.
As a sequel to the success story of
A p p a r e l E x p o r t P a r k ,
Gundlapochampally, Hyderabad the
Apparel Export Park, in Gajuwaka, in
Visakhapatnam is a Rs 26.42 crore
project in 146 acres of land and has
taken shape to add to the momentum of
the growth engine.
To facilitate growth of powerloom sector,
Apparel & Textile Industry
86 Doing Business withAndhra Pradesh
Textile Park, Sircilla, Karimnagar
District:
Textile Park, Pamidi, Anantapur District:
Handloom Apparel Park, Pochampally,
Nalgonda District Apparel City, Visakhapatnam
Textile park, Pashamylaram, Medak
District:
Hi- Tech Park, Kothur, Mahaboob Nagar
District:
implementing the project Stake holders
have already constituted a company under
Government of India have approved with section 25 of Companies Act, 1956.
an outlay of Rs.773.39 lakhs. Park is fully
developed in a sprawling 60 acre and it is It is a natural Garment cluster proposed to
40 kms from Karimnagar and 130 Kms develop a park with an outlay of Rs.1.76 Cr.
from Hyderabad. The park provides to upgrade Garment skills and promote
infrastructure like Common facilities such export from the area. Government land to
as Training center, Business Resource an extent of 2.77 acre identified. All
center already completed and Textile infrastructures such as Water, Electricity,
process unit, Testing Lab, CAD center and Roads, Storm water drains, Design Center,
Common Effluent Treatment Plant, 33/11 Common Facility Center building,
KV substation with uninterrupted power Business Resource Center, Testing center
supply, Assured water supply with internal and Crèche are proposed. Skilled
water distribution system, Single window manpower available. As it is close to
clearance for all approvals. Bellary and Bangalore, enormous scope
for Garment exports.
Government identified 50 acre land at Rs 2500 crore project for setting up
Malkapur (V), Choutuppal (M) on the apparel city by Brandix Lanka Limited in
National High way No.9 at a distance of 40 1000 acres of land to create employment
Kms from Hyderabad and 12 Kms from to 60,000 persons.
Pochampally silk city. State Government
have approved the project with an out lay The textile Industry is contributing nearly
of Rs.331.03 lakhs. 9-10% to the GDP. It is also improving its
performance in the recent years. The state
textile production registered a growth rate
of 3.3% during the year 2005-06. The state
Government of India have approved the has advantage of good crop and the cheap
project with an outlay of Rs.11.03 Cr. labour, which has improved the production
under Textile Center Infrastructure capacity since the past two years. The state
Development Scheme. 100 acres land fiber production has increased to 874.4m
identified in IDA Pashamylaram for kg from 849.6m kg during the year 2006
weaving activity and another 48 acre in as compared to the last year. While the
Indrakaran (V), Patancheru (M) for process spun yarn production showed a significant
House and CETP and it is close to growth during the year 2006. It has
Hyderabad. So far 50 acres of land increased from 628m kg to 653mkg
developed. Plots are available at affordable during this period. There is a large scope
price. Single window clearance facilities for investment of Rs 45,000 crores in
provided for all industrial approvals. spinning to improve the spun yarn
production in the coming 3-4 years. The
state has a dominant position in the textile
100 entrepreneurs have purchased 150 industry. The increased textile export
acres of private land for Rs 3.00 crores. apparel parks and SEZ will help the state in
The project cost is Rs 28.18 crores. SPV reaching the export target of US$5 billion
has been formed along with stake holders, by 2012.
Government of Andhra Pradesh IL&FS for
Apparel & Textile Industry
Doing Business with Andhra Pradesh 87
A.P. Automobile Industry
A.P. Automobile Industry
The State of Andhra Pradesh – Economic Benefits of Automotive
Racing for the Future Industry
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AP recognizes the enormous economic
The Government of Andhra Pradesh potential of automotive industry for the
(GoAP) has made several reforms to future development of the state The
usher in industrialization in the past economic benefits of the automobile
liberalization era. The GoAP is industry to a host economy are legion.
determined to excel on all fronts to The immediate tangible benefits of the
transform Andhra Pradesh (AP) into automotive industry are:
most-preferred investment destination Employment generation
in India. Fast development of key linkage
AP, a politically stable and vibrant state industries like steel, plastics, paints etc.
with strong support of seaports and Improvement in the technological
international airport is on the way of and related skill levels in various
emerging as a major hub of the region. supporting industries
The areas which are being improved for Increased exports
the impetus of industry are assured and
reliable power, abundant water, broad Increased revenues
marketing base, export possibilities, Other multiplier benefits of
manpower pool and strong IT network improved infrastructural set-up
and developing high intensity industrial Scaling up of the component
parks – which undoubtedly establishes industry players from the level of un-
AP as an undoubted destination for organised replacement sector to Tier III,
investment. II and I suppliers to OEMs
88 Doing Business withAndhra Pradesh
A.P. Automobile Industry
Indian passenger car industry has Visakhapatnam Steel Plant
reached the phase of rapid growth. The provides the required steel which is
mid and luxury segments growing useful for the raw material for the
exponentially, riding the favourable auto industry
demand drivers. The new global Availability of uninterrupted quality
entrants achieved appreciable market power at very competitive price
present. Estimated growth rate of Dedicated Visakhapatnam
passenger car industry in India is 13% Industrial Water supply scheme to
per annum and likely to reach 1.5 million provide sufficient water for the auto
by 2010. It is the right time for Global industry.
majors to enter into Indian car industry.
Availability of skilled man power at
Andhra Pradesh is emerging as a more competitive prices
potential location for setting up of Availability of large consumer
automobile industry. Mahindra & market
Mahindra is already in Andhra Pradesh Large Road Network with 4-lane
manufacturing utility vehicles and mini roads connecting all important
buses in Zaheerabad in Medak district. cities in the country
Sunku Automobile Limited is Head quarters of the South Central
manufacturing three-wheeler autos. In Railway connecting to many cities
addition to these units there more than in the country through railway
52 automobile parts, spares and network by operating super fast
components units in the state. These trains
units are very strong and producing
quality products like engine values, Strong base of ancillary industries
cylinder liners, pistons pins & rings, steel Sales of passenger cars are growing
forgings, axel shafts and gears, CNC very fast
machine components, castings Investor friendly Government
precision / High precisions etc. and policies with number of incentives
supplying to many global OEMs. and concessions
Andhra Pradesh is an ideal location for Committed Government for project
setting up of Automobile industry. The facilitation with escort services
advantages include Single Window clearances through
Land is readily available at very e n a b l e d A c t f o r q u i c k
reasonable prices implementation of the project
Dedicated Gangavaram port with International Airport Facilities in
capacity of 35 MTPA initially and Hyderabad
200 MTPA ultimately for the Existing Visakhapatnam airport will
Visakhapatnam Industrial Hub in be upgraded to International Airport
additional to Visakhapatnam and shortly
Kakinda ports with container
terminal facilities for easy exports.
Advantage Andhra Pradesh
Doing Business with Andhra Pradesh 89
A.P. Automobile Industry
Best Social infrastructure – Health, and HUTCH and broad band
Education, Recreation, Housing, facilities.
Tourism, Entertainment and Special concessions in the Special
Accommodation Economic Zone
Best R&D and Training Institutions
– Indian School of Business, The state has as many as 40 important
Central Institute of Tool Designs auto component manufacturing
etc. companies manufacturing the products
AP is IT hub and provide best like Engines, Engine parts, transmission
software services like CAD/ CAM parts, machine tools, Chassis and
and others suspension Parts, Body Parts, Special
Components, Design engineering
Best Communication network Services (CAD/CAM/CAE) and other
facilities by BSNL, AIRTEL, related activities and supplying to Major
RELIANCE, IDEA, TATA INDICOM Global auto players like
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VW - Germany
Deutz AG-Germany
MTU Aero Engines (Germany)
Ford Motor Co, US
Pratt & Whitney (US)
Copeland, USA
Ourway, USA
Schhumberger (US)
Briggs &Stratton Corn. USA
Delphi, Eichlin,TR&W(US & Europe)
General Electric, (US & Europe)
General Motors (US & Europe)
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Bombardier Transportation (Canada)
Wartsila (Finland / France)
aCL Piston Products, Australia
New Holland – UK
Iveco, Italy
Piaggio vE., Italy
Tecumseh Europe-Italy
Lombardi SRL, Italy
David Piers Motor Co.Ltd., Sri Lanka
PD Omar Khayyam, Indonesia
Advantage Andhra Pradesh
90 Doing Business withAndhra Pradesh
Andhra Pradesh is one of the preferred [DMRL], Mishra Dhatu Nigam Ltd.
destinations for investments in India. This (MIDHANI), Nuclear Fuel Complex,
achievement is underpinned by the Electronics Corporation Of India Limited
commitment of the State Government to [ECIL], Bharat Heavy Electrical Limited,
industrial development. It has taken wide Hindhustan Machine Tools, Hindhustan
ranging measures to nurture its industries Aeronautics Limited, Bharat Electrical
and as a part of it, Government of Andhra Limited, Hindhustan Cables Limited,
Pradesh has identified Engineering Hindhustan Ship Yard, Bharat Heavy Plates
manufacturing as one of the Thrust and Vessels, Visakhapatnam Steel Plant,
Sectors. Praga Tools etc. could build up their
Traditionally known as rice bowl of India, AP ancillary (vendor) network and has laid the
has made rapid strides in building Hi- foundation for development of special
Technology manufacturing base in the last purpose machines and precision machine
4 decades. AP is home to many large Public tools & machining and led to development
a n d P r i v a t e S e c t o r c omp a n i e s of a host of small & medium industries
manufacturing diverse products like ship catering to the needs of defence, atomic
building, fertilisers, Hi-precision machine energy, space. Leading companies have set
tools, drugs and pharmaceuticals, cement, their base in the State include MTAR,
paper, large power generating equipment, MARC, Lokesh Machine tools to name a
electronic hardware, long range missiles, few.
castings & forgings, defence electronics MTAR produces assemblies and precision
etc. components for use in space and nuclear
AP is home to a large number of applications. The MARC subsidiary of MTAR
internationally renowned civil and defence produces high precision indigenous
research establishments, which include manufactured ball screw assemblies for
Defence Metallurgical Research Laboratory, machine tool applications and nuclear
Defence Electronics Research Laboratory, applications. Apart from ball screws MARC
Defence Research and Development is also engaged in manufacturing of
Laboratory, Indian Institute. of Chemical Coolant channel assemblies and other
Technology, Centre for Cellular and intricate assemblies for nuclear reactors.
Molecular Biology, National Remote Precisely for this effort, the World Bank had
Sensing Agency, National Geo-physical chosen AP (APIDC) for promoting the first
Research Institute, Central Institute of Tool venture capital organisation in India at the
Design, ICRISAT, National Institute of state level for commercialisation of home
Nutrition,Nuclear FuelComplex. grown technologies and for further
AP is perhaps the only state in the country in development of technocrat entrepreneurial
post independence India to have base in the state.
consciously developed local technocrat Engineering Manufacturing include special
entrepreneurial base and with this support purpose machines and high precision
only that large Public Sector Units like machined components and parts used in
Defence Research Complex, Defence defence and space industries; Bio-
Research and Development Laboratory technology; IT; knowledge based industries;
(DRDL), Bharat Dynamics Limited [BDL], Automation; Nano-technology etc.
Defence Metallurgical Research Laboratory
Engineering Industries
A.P. Automobile Industry
Doing Business with Andhra Pradesh 91
Electronic Industry in A.P.
Electronic Industry in A.P.
Electronic Hardware is one of the fastest
growing sector of economy in the world.
Electronic Industry is in existence in
Andhra Pradesh since 1960. Most of the
electronic industries are in the SME
segment and have highly specialized
product lines. Government of India
owned Public Sector – Electronic
Corporation of India Limited was set up
in the year 1967 which has given a boost
to electronic industries in the State. The
major segment of electronic hardware
industries existing in AP are
Telecommunications
infrastructure facilities for promotion of
Components electronic hardware Industry in the State
Industrial Electronics and for the rapid economic growth as
Test & Measuring Equipments well as to create more employment in
Computer & Consumer Electronic this sector. The State is striving to match
Strategic Electronics the best in the world in terms of
innovation, quality, price and agility of
manufacture and by doing so, become
the leader of the industry in the country
and achieve atleast 15% market share in
25 million personal computers the country by 2009-2010.
10 million networking devices Government of AP as promoted a
250 million components Hardware Park in 1109 acres adjacent to
Export potential of US $ 10 billion Hyderabad-Srisailam Highway near
by 2008 Raviryal Village in Ranga Reddy District.
The major electronic industries like
SMEs are the back bone of the Country Catalytic Software, Millennium
contributing 45% in the country’s Appliances India Limited (Videocon),
economic. 40,000 employees work Astra Microwave Products, JT Holdings
directly in Electronics segment and Pvt. Ltd. Agakhan Foundation,
40,000 more employees work with Hyderabad Gems SEZ Ltd, Anantha
supporting ancillary industry. Electronic Technologies Ltd. Tibrewala Electronics
Hardware Industry can create Ltd, HCL Infosystems, Kennex Micro
employment for technical professionals. systems, Zen Technologies Ltd., Vem
In order to tune the growing electronic Technologies Pvt. Ltd. are setting up
industry, the State is taking several their projects in the Hardware park.
initiatives in creating world-class
Indian Hardware estimated by
2006
2,500
3,000
3,500
2003-04 2004-05 2005-06
Rs crores
AP Electronic Industry Production
92 Doing Business withAndhra Pradesh
Electronic Industry in A.P.
SemInida proposed to set up of convent ional and futur ist ic
semiconductor manufacturing fab city hardware products
project with an ultimate investment of To serve as hub to cater to the
US $ 1.5 to 3 bn. Over a period of five increasing demand both in India as
years. The project will be in area of 1200 well as other markets in Europe,
acres of land. Initially project will be Africa and the Asia Pacific region
implemented in the area of 300 acres of Established companies in AP
land. gearing for increased exports by
creating world class manufacturing
In addition to the existing Hardware facilities.
Park, Government of AP is promoting
Hardware SEZ in 275 acres near
Maheswaram in Ranga Reddy for
promoting more electronic industries Nano Technology, Semi conductors,
computer peripherals, appliances,
precision engineering, ICs, LSICs,
VLSICs.
Developing benchmarks for the – Disk drives,
electronic industry in respect of Modems, MPEG decoders, Network
global practices. cards, Network switches / routers,
Identifying key drivers of growth Electronic card readers,, Camcorders,
and gap analysis Battery charges, Automatic Teller
Assessment of market size and Machines, Automatic Toll systems,
segments for the domestic and Cruise control, Curbside Check-in
export market systems, Anti-lock brakes Auto-focus
cameras, Finger print identifiers, Home
Global and domestic competitive security systems, Life-support system,
analysis Medical testing system, Printers,
To provide world class facilities to Photocopiers, Scanners, Fax machines,
attract major domestic and Digital cameras, Cell Phones, Satellite
m u l t i n a t i o n a l H a r d w a r e Phones, Cordless phones, DVD Players,
Manufacturers to set up their Teleconferencing system, Temperature
operation controllers, Video phones,
Be a base to manufacture both
Scope for investment
Road Map of AP Electronic
Industry.
Embedded Systems
Doing Business with Andhra Pradesh 93
The Vision of the Government of Andhra Creation of a multi-disciplined Project
Pradesh, as declared in its policy, is to Monitoring Unit (PMU) is another first for
make it a destination state, given the Andhra Pradesh. This unit acts as a
array of natural resources and the catalyst in the fast-changing scenario of
traditional hospitality of its people. tourism. It is the generator of ideas,
Taking Andhra Pradesh to the world, and identifier of projects, selector of
bringing the world to Andhra Pradesh is inves tor s and moni tor of the
the ultimate aim. implementation process. As of now, 49
projects are being set up in the State by
AP Tourism, has kept abreast of the rapid private entrepreneurs with an
developments and with the searing pace investment of Rs.592 crore. Another 14
set by the State Government to make it projects are in the process of evaluation
the ideal destination in the country. Over for an investment of Rs.524 crore. Under
the past 4 years, by which time the 1998 MoU category, the PMU has facilitated
Tourism Policy of the State Government 11 projects with a cost of Rs.430 crore.
started showing results, faster growth in Thus, during the last 4 years the
the tourism sector has been achieved. Government has facilitated the launch of
Andhra Pradesh is among the first in the 68 projects with a total investment of
country to have an exclusive policy for Rs.1510 crore. In addition 88 projects
tourism, a sphere that can generate costing Rs.810 crore have been set up
overall growth and create employment exclusively by the Private Sector due to
opportunities. the state’s pro-active role.
Tourism
Tourism
94 Doing Business withAndhra Pradesh
Detailed studies were also made by tourism development with a priceless
reputed consultants like WTO, EDAW and asset - a friendly and hospitable people.
KPMG for identifying the areas for Andhra Pradesh bagged 6 National
tourism development and the strategies Awards including the Best Performing
t o b e a d o p t e d . T h e To u r i sm State for the year ending 2001-02.
Development and Management Plan,
prepared on behalf of the State by the Andhra Pradesh offers attractive
World Tourism Organization (WTO), investment opportunities to private
coordinates the diverse elements of developers and investors. The State has
tourism activity and provides direction for picturesque beaches, hills, wildlife and
tourism policy formulations and Industry forests, forts, temples, a large number of
planning all through to the year 2020. Buddhist sites, bird sanctuaries etc. In
With the involvement of the private sector order to attract private investment, the
being an accepted and inevitable policy provides a number of incentives
component in tourism promotion and and concessions with a liberal
development, Andhra Pradesh Tourism organizational set-up for one-stop policy
has responded with alacrity and decisions and inter-departmental
grounded several projects with the coordination. Introduction of a Single
involvement of this sector. To bring in Window Clearance System is yet another
more investment and projects, Andhra latest step in this direction. Land is the
Pradesh Tourism has gone a step further basic requisite for any infrastructure
to ident i f y government vacant development Government is also inclined
government land in order to develop to lease Government lands for important
major tourist attractions on these Tourism Projects.
locations. The Regulations of Master Plans of
concerned UDA also provide for
automatic conversion of land us (for
Hotel occupancy rate in 2002 was higher Tourism Related Projects and also
than the national average of 53. Andhra exemption from conversion charges.
Pradesh shares about 23 per cent of Andhra Pradesh accounts for around 23
national tourist arrivals. A beginning has per cent of the domestic tourist arrivals in
been made and a bright future awaits the country and 2.7 per cent of
tourism. Endowed bountifully by nature, international tourists coming to India to
Andhra Pradesh has vast potential for visit Andhra Pradesh.
Achievements
Tourism
Doing Business with Andhra Pradesh 95
Tourism
Investment Opportunities
The State offers attractive investment
opportunities to developers and
investors. It also offers tourists, both
international and domestic, an
opportunity to partake in the experience,
the Government has embarked on a
series of steps that will promote tourism
and result in increased tourist inflow in
terms of value. Hence, the Government
of Andhra Pradesh has adopted a proactive,
investor-friendly, open-door
policy for the investors. Investors are
assured of a cooperative Government
and transparent administration. Andhra
Pradesh will soon be transformed into a
tourism destination. This can be
achieved only with active participation
from the private sector. Immense
opportunities exist in tourism
development in the State. The identified
clusters for tourism development,
include Hyderabad, Visakhapatnam,
Tirupati, Vijayawada, Nagarjunasagar
and Warangal, which need to be linked
by transportation corridors.
96 Doing Business withAndhra Pradesh
The Government of Andhra Pradesh
aspires to transform the state into a
knowledge society and make available
the benefits of information technology
to all its citizens, especially those in rural
areas and living in poverty. The State
wishes to become a leading destination
for investments in Information &
Communications Technology
(ICT) and a major player in the
information economy. The State will
With the erosion of old barriers and the leverage ICT for achieving an Info age
clamor for competitive pricing, there (inclusive, networked, fast, open,
isn’t a major company on the planet that accountable, globally benchmarked and
can ignore the power of IT to build efficient) government.
competitive advantage. What remained
was to find a hallowed ground. The NASSCOM-KPMG report of 2004
Someplace where IT was worshipped projects India’s exports in IT&ITES/BPO
and the revolution could grow and sector at US$49 billion by 2009 with
nourish itself. AP has answered the direct employment opportunity for 2
summons and offered the revolution a million graduates. Andhra Pradesh aims
home. The industry has accepted in to achieve US$15 billion in IT/ITES
resounding chorus turning the State into exports and seeks to create as much
a hotbed of IT activity. employment.
The state has emerged as the back office
to the world, and the preferred
Investment Destination for the Global
ICT Industry. BPO to KPO, Services to
Application, Technology to R&D, Design
to FAB, EMS to Telecom, Animation to
Gaming are all present and voting in
Andhra Pradesh. The roster of
companies who have made the state
their home include: Microsoft, Oracle,
Computer Associates, IBM, Dell,
Computer Sciences Corporation (CSC),
GE, HSBC, Bank of America, Deloitte,
Motorola, Nokia, Qualcomm,
Convergys, Cypress Semiconductor,
Google, UBS, Amazon, Satyam, Infosys,
Wipro, HCL Infosystems, Celetronix and
Dataquest. The Government’s Vision
Information Technology
Information Technology
Doing Business with Andhra Pradesh 97
McKinsey’s report projects India’s
electronics manufacturing opportunities
to be a US$47 billion industry by 2009. The four key areas for providing the right
Andhra Pradesh is building a $12 billion ambience for attracting investments into
IT h a r dwa r e a n d El e c t r o n i c s the state are:
manufacturing industry. Viewpoints The organizational structures and
National Geographic, in its article on arrangements for attracting
Emerging Global Cities of the World, has investments in ICT.
rated Hyderabad as the “Next Silicon
Valley” and Andhra Pradesh as the The incentives regime for the ICT
“Hitech Capital of the Subcontinent” in sector.
its Nov 2002 issue. Gartner, in its report Facilitation for potential investors.
says “Hyderabad to be IT Hotspot by
2010”. Hyderabad tops the ratings in the Provision of aftercare services to
infrastructure category, scores high on existing ICT players within the state.
‘cost of life’ and ‘quality of living‘ Institutional Mechanisms
parameters and availability of skilled
labor with lower attrition rates.
IT Industry Investment Promotions The Government of Andhra Pradesh will
Andhra Pradesh aims to attain aggressively identify potential investors
leadership in the information economy as part of a targeted approach and will
by developing local enterprise (business present AP’s value proposition in the
organization) and by attracting best- specific context of their businesses.
inclass ICT companies and institutions. Success-fee based partnerships with
The ICT sector today faces new leading global consultants to attract
challenges that need to be addressed. i n v e s tme n t s . P r omo t i o n o f
The key drivers for deciding the location Infrastructure and incentives ·
of ICT companies are the availability of Hyderabad Knowledge Corridor to be
skilled talent, apart from high quality set up over 80 sq.kms covering 20,000
infrastructure and a supportive acres.
Government. The present ICT policy Creation of IT Corridors in Hyderabad
seeks to focus on development of along the outer ring road.
Human Resources, Infrastructure,
Capital and Incentives.
Salient Features of the ICT Policy
AP Invest
Information Technology
98 Doing Business withAndhra Pradesh
Vijayawada from Ibrahimpatnam to An IT Infrastructure Fund will meet
Kankipadu. · Visakhapatnam the cost of servicing the interest on
b e t w e e n A n a k a p a l l i a n d the loans raised by APTRANSCO
Anandapuram. · Urban land ceiling and Water & Sewerage Board for
exemption for private landowners to development of IT Parks.
develop IT Parks 25 acres and
above on the periphery and 5 acres www.apit.gov.in has all the
and above on core city limits on specifics on the ICT Policy.
payment of necessary fees.
100% Reimbursement of Stamp A me g a f a b - s emi c o n d u c t o r
Duty · Rebate on Cost of Land for IT manufacturing company, the first in
companies establishing own India in the private sector is to be set up
facilities on clear Government land. by Intellect Inc., South Korea in
association with the Government of
5% of space created for ICT Andhra Pradesh under the name Nanopurposes
in the IT Parks reserved Tech Silicon India Pvt Ltd. Commercial
for Incubation. production is expected to start in early
2007. With a total proposed investment
of US$1.6 billion and a production
capacity of 30,000 wafers per month it
AP aims to achieve Rs.69,000 crore would give a fillip to hardware
in software exports and create manufacturing in Andhra Pradesh. It will
employment for 300,000 people attract end-product manufacturing
directly. companies and shall provide direct
employment to 10,000 people and will
The Government arrived at this facilitate around 250 ancillary industries.
Policy by including and involving all It is expected to manufacture logic chips
stakeholders and academia in the for Cellphone chips, Automotive ICs,
framing of the same. Microprocessor Cores, RF Power
Small and Medium Enterprises are devices etc.
offered special packages in the
Policy. These include rebates and
reimbursements, cheaper power
and recruitment assistance.
Special packages for mega projects
(>50 crore or 1000-1500
employees) are on offer.
A nano-technology park will be set
up to encourage R&D and
semiconductor manufacturing.
Rajiv Gandhi Nanotech Park
Highlights and Objectives of the
ICT Policy
Information Technology
Doing Business with Andhra Pradesh 99
eGovernance
AP Broadband
eProcurement
eSeva Centres, Rajiv Internet Village
Kiosks and web-based online services.
The Government of Andhra Pradesh is Widespread availability of broadband
committed to build a people-centered, services at affordable rates is expected to
inclusive and development-oriented take not just Government services to the
Information Society, where everyone doorsteps of the citizens but also trigger
can create, access, utilize and share significant economic activity in every
information and knowledge, enabling sector. Rajiv Internet Village (RAJiv)
individuals, communities and people to program The Rajiv Internet Village
achieve their full potential in promoting program aims at bringing Government
sustainable development and improving closer to people in the rural areas. The
their quality of life. The Government main objectives of the program are:
intends bridging the digital divide and (i) Delivering needed Information and
creating an inclusive Information services to citizens in rural areas.
Society.
(ii) Imparting Computer literacy to at
least one member from each family in
The AP Broadband Network will connect rural areas.
the State HQ with 10 Gpbs to each of the (iii) Providing broadband connectivity to
District HQs; 1 Gbps to each of the 1127 rural areas.
Mandal Headquarters and 100 Mbps to It provides easy access to information on
each of the villages. The network will Agriculture, Education, Health, Market
have fiber optic connectivity right up to Prices, Cropping Pattern, Weather
the village level. Forecast, Agriculture Extension, and
Utility services of the Government,
Insurance etc.
Andhra Pradesh is the pioneering state
in India to implement electronic
procurement by adopting the
Information Technology tools in public
procurements. The prime objectives of
eProcurement are demand aggregation,
transparency, accountability, fiscal
AP Broadband will provide broadband savings, standardization of procurement
services with a minimum bandwidth of 2 processes across government entities to
Mbps, at a base tariff of Rs.300 per bring in administrative efficiency.
quarter. The broadband network will The eProcurement system offers a
provide broadband services to 40,000 superior level of security with Secure
Government offices. This will enable all Socket Layer (SSL)
Government Departments to deliver
convenient citizen services through
Information Technology
100 Doing Business withAndhra Pradesh
encryption, strong authentication with
digital certificates and speed to conduct
real time bidding over the Internet.
Currently eProcurement is implemented
succes s ful l y in 7 government Computer-Aided Administration of
departments, 9 PSUs, 25 Municipalities Registration Department is an
spread across length and breadth of the egov e rnanc e ini t i a t i v e of the
state. Since the inception, the portal has Registrations Department of the State
processed 6394 transactions worth Government providing end-to-end
Rs.34,493 crore i.e. US$7 billion. automated solution of registration
process. Its services includes
Registration of deeds like Sale,
Society for Andhra Pradesh Network Mortgage, Lease, and Gift completed in
(SAPNET) is a major infrastructure 1 hour and Search of title deeds of last
project of the IT and Communication 20 years in 15 minutes.
Department. It is a unique network of
five television channels and a data
channel dedicated to education, e- eCOPS is an Online Police Network,
governance and development. Fourteen conceptualized by Andhra Pradesh
departments of the government of AP Police to computerize the total policing
covering the entire spectrum of by utilizing State of Art technology. It
education and development activity enables speedy processing, increased
generate programs for over 2000 user efficiency, transparent policing and
institutions spread across the state. The better interaction with the citizens of
project is a pioneer and is being Andhra Pradesh.
replicated in other states in India by
ISRO as EDUSAT.
One-stop-shop on the Internet & Single
window online services for Citizens &
Looking at ‘service’ from the citizens’ Businesses AP Portal is an e-governance
point of view, the Government of Andhra gateway for the Government of Andhra
Pradesh seeks to redefine citizen Pradesh offering multiple services
services through eSeva, using state-of- through a single window, to its citizens.
the-art technologies. It’s a pioneering The portal redefines governance and the
initiative of the Government of Andhra government-citizen interface. AP Online
Pradesh, which offers a wide spectrum offers over 200 informative, interactive
of citizen-friendly services that saves and payment services to citizens and it is
citizens the bother of running around easily accessible through multiple
various departments. It provides delivery channels, homes and offices,
services like utility bills/tax payments, anytime, anywhere.
issue of certificates, issue of
licenses/permits, reservations and more
on a one-stop basis.
C A R D ( C o m p u t e r- a i d e d
Administration of Registration
Department)
SAPNET
e-COPS
AP Portal
eSeva
Information Technology
Doing Business with Andhra Pradesh 101
CFST - Citizen Friendly Services of Call Center
Transport Department
Software Piracy
CaringGov
Institutions of Governance
GO Places & IC
m-Government
Website Policy
Integrating with departments and
CFST - Citizen Friendly Services of mirroring with AP Online for handling all
Transport Department aims at providing citizens related queries by strengthening
all Transport related services to citizens the existing call center.
in shortest possible time. The entire
process of the Transport Department
has been automated for the delivery of The Government is keen in protecting
services. the Intellectual Property Rights and
Copyrights of IT Products and will
encourage usage of only legal or
Automates the functions of the authorized products.
Government bodies at all administrative
levels. The Secretariat is being
computerized to provide electronic file The Centre for Good Governance (CGG)
system in 30 departments involving over – Institution coordinates on designing
2,000 employees at all levels. and implementing the governance
program of the Government of Andhra
Pradesh. CGG undertakes action
The Government will set up an research, provides professional advice
electronic employment exchange (GO to and conducts change management
Places) & obtain Ideas from Citizens (IC) programs for, government departments
for giving suggestions to improve the and agencies to help them implement
quality of governance. their reform agenda successfully. CGG
works closely with policy-makers like
Ministers, officials, experts and other
The Government of Andhra Pradesh will stakeholders, especially citizens, to
launch mobile communications for promote Simple, Moral, Accountable,
delivery of egovernment applications by Responsive and Transparent (SMART)
making available to begin with few of the government. National Institute for
services of eSeva. Smart Government (NISG), Hyderabad
is a non-profit company incorporated in
2002 with NASSCOM (National
All Departments and Agencies of the Association of Software and Service
government will host and design Companies), Central and State
websites uniformly. All websites are to be governments being the principal
bilingual i.e., in Telugu and English. promoters.
Local Language Development
G o v e r n m e n t w i l l s u p p o r t i n
standardization of representation and
processing local language for effective
usage of computers and eLiteracy
programmes.
Information Technology
102 Doing Business withAndhra Pradesh
NISG is being shaped as an institution of excellence in the area of e-Governance with
focus on developing appropriate architectures and standards, providing high-level
consultancy services and capacity building at the national level. NISG is constituted
under a Public Private Partnership model with a view to combine the immense potential
and resources of the private sector with the principles of accountability and transparency
of the public sector. The goal of NISG is to lead the nation to a preeminent position in
providing integrated online services to the citizens and businesses.
Institute for Electronic Governance (IEG) is a ‘not for profit’ Institute established as a
special purpose institutional mechanism that works in close collaboration with the
National Institute for Smart Government (NISG), International Institute of Information
Technology (IIIT), a Consortium of Institution of Higher Learning (CIHL), Information
Technology & Communication Department (IT&C), Higher/Technical Education
Departments (HE/TE) & a large number of engineering colleges and other technology
institutions in the State. A number of steps have been taken to transform the state into a
knowledge society.
IEG
Information Technology
Doing Business with Andhra Pradesh 103
Leather Industry
Integrated Development of
Leather Sector Scheme of
Government of India.
Leather Industrial Parks
of 100 acres each for processing
Andhra Pradesh has nearly seven per semi-finished leather to finished
cent of the country’s livestock leather.
population, which is over 470 million. 6 Mega Leather Industrial Parks of
The State is a major producer of hides 300 acres each for conversion of all
and skins in India, contributing about 19 intermediate products to export
million pieces per annum, which qual i t y. Duddeda, Medak -
constitutes about 10 per cent of the Dandempalli, Nalgonda - Rachepalli,
country’s raw material. Most of this raw A n a n t a p u r - Ve n n e l a v a l a s a ,
material goes to states like Tamil Nadu S r i k a k u l a m - J i n k u n t a ,
and West Bengal for processing. There Mahabubnagar Medium Parks -
are about 34 large and medium Rampur, Warangal - Kunoor,
tanneries in the State producing about Nalgonda - Varadayapalem, Chittoor
40 million square feet of processed
hides and skins per annum. There are 15
garment-manufacturing units and 12
leather goods and footwear
manufacturing units in the large and The financial assistance under the
medium-scale sectors in the State, Scheme will be investment grant to the
through a concentrated effort extent of 30% of cost of plant and
combining strategy, policy incentives machinery for SSI and 20% of cost of
and infrastructure development. plant and machinery for other units (i.e.
The action plan provides for capacity non SSI units) subject to a ceiling of Rs.
building at all levels to have a 50 lakh for technology up gradation
comprehensive skills-base in the target /modernisation and/or expansion.
artisan and worker groups. To that effect Investment grant would also be available
Leather Industries Development to units investing their own resources.
Corporation of Andhra Pradesh All existing units in leather and leather
(LIDCAP) is the nodal agency for the products including tanneries, leather
leather program in Andhra Pradesh. It goods, saddler, leather footwear and
has established a number of strategic f o o t w e a r c o m p o n e n t s e c t o r
alliances and partnerships to bring undertaking viable and bankable
technology and knowledge base to the programmes on technology upleather
industry. gradation are eligible for this scheme
The government is setting up the
following requirement-specific
infrastructure parks for promotion and
development of the leather industries:
72 Mini leather Industrial Parks of 25
acres each for processing quality
Raw Material.
16 Medium Leather Industrial Parks
Leather
104 Doing Business withAndhra Pradesh
Mega Park, Gangadhar Nellorer International Leather Complex,
Nellore
Leather Export Park, Hyderabad
This proposed park is located at
Gangadhar, Nellore, 11 Kms from This is a Government of India project
Chittoor town and 30 kms from Ranipet being set up on 500 acres of land under
(nerve-center of Leather Industry) to be the supervision of LIDCAP. Land has
developed over 300 acres of land for been identified and the Government is to
non-polluting industries especially for transfer the land to LIDCAP. The
the exporters of leather goods/articles to complex will suit the requirements of
set up their prestigious units. The park tanning and footwear units of
has been set up through public-private international standards. It is near the
partnership initiative. Its advantages are: seacoast and located at a distance of
A Friendly industrial policy. 150 kms from Chennai.
Captive power generation with
support services such as banking,
trade, finance, foreign exchange, This park is ideally located in the heart of
conference and exhibition halls etc. · Hyderabad and is well connected by
Training, research and skill building. · road, rail and air. It is equipped with
Common research, testing and state-of-the-art infrastructure and
quality control facilities. modern imported footwear machinery
Availability of abundant finished to manufacture all types of leather
leather from tanneries located footwear and articles of exportable
around Ranipet, Tamil Nadu and also quality.
from Medium Parks in AP.
For Investment exceeding Rs. 100
crore the Government may consider
a special package of incentives.
Mega Parks
Mega Parks
Doing Business with Andhra Pradesh 105

Andhra Pradesh
Government Policies
Most attractive investor friendly
Industrial Investment Promotion Policy
107
The Policy to drive industrial growth by to the abundant locally available
clearly spelling out various components resources
of incentives being offered, supply of To enhance quality of life in the
quality power, improved infrastructure State to suit to the needs of the
facilities, etc., and To remove existing investors
barriers and creating a congenial and To attract and develop appropriate
hassle-free investment climate and also entrepreneurial leadership,
to boost investor confidence, a series of management and HRD systems
proactive measures have been
proposed: Alleviate regional disparities in
economic growth
To make Andhra Pradesh a strong
base for manufacturing sector
To increase industrial investment by Improving infrastructure by
10% every year with an objective to facilitating investment in industrial
reach Rs.170 billions by 2010 by infrastructure in private sector.
promoting rapid growth of market To encourage establishment of New
driven, knowledge based, efficient Tiny and Small Scale Industries
and competitive industrial particularly in rural areas to achieve
environment. the twin objectives of employment
Contribution to the State GDP generation and utilization of local
(GSDP) from industrial sector to be resources
increased from 12.9 % to 15 %. To encourage, attract and involve
Creation of additional employment women entrepreneurs in industrial
opportunities capacity building
To improve exports from the State To withstand global competition,
by increasing the present share of Special Emphasis on qualitative
exports in India from 4.39% to 10% c o m p e t i t i v e n e s s t h r o u g h
by 2010 Technology upgradation and
Rural Indust r ial i zat ion wi th protecting Intellectual Property
emphasis for promoting cottage Rights
and micro enterprises
Promote Andhra Pradesh as an
attractive destination for industrial
investments
To market Andhra Pradesh as
competitive investment destination
for Foreign Investments
To create enabling environment for
ensuring maximum value addition
Polices
The Objectives:
Most attractive investor friendly
Industrial Investment Promotion Policy 2005-10
Government Policies
108 Doing Business withAndhra Pradesh
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Investment Promotion Policy
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To a r r e s t e n v i r o n m e n t a l
degradation
Encourage cluster concept to make
the industries in the Clusters
Globally Competitive
To develop effective regulatory 15% subsidy on fixed capital
mechanism for entry and operation Investment limited to Rs.15 lakhs
of firms 100% reimbursement of Stamp
Create a market driven environment duty and transfer duty paid by the
with the private sector being the industry for lands meant for
industrial use
primary engine for growth.
100% reimbursement of stamp
Special Emphasis for restructuring d u t y f o r l e a s e o f
and consolidation of sick industrial land/shed/buildings
units
Creation of quality infrastructure
Incentivising investments
Building industrial competency in
women
Quality competitiveness
Export promotion
Environmental friendly climate
Attracting mega investments
Attracting foreign direct investment
Access to market
Intellectual property rights
Fostering industrial clusters
Prevention of industrial sickness
Preventing migration
Permitting industries to exit.
Towards better regulation
Policy measures- thrust sectors
Government Policies
To increase contribution of manufacturing to the
State Gross Domestic Product from 12.9 % to 15 %
Doing Business with Andhra Pradesh 109
Polices Large & Medium Enterprises
25% of the tax paid during one Infrastructure assistance to stand
financial year will be ploughed back alone units by contributing 50% of
as a grant for a period of 5 years. the cost of infrastructure from IIDF
Power cost will be reimbursed @ subject to a maximum of Rs.1 Cr.
Rs.0.75 per unit during the first For mega projects with investment
year of the policy and thereafter for above Rs.100cr. Tailor made
the remaining four years the rate of benefits will be extended on case to
reimbursement would be so case basis to suit the particular
regulated on yearly basis keeping in investment
view of the changes in the tariff Power cost will be reimbursed @
structures to ensure that the power Rs.0.75 per unit during the first
cost to the industry is pegged down year of the policy and thereafter for
to the first years level. the remaining four years the rate of
Reimbursement of cost of power for reimbursement would be so
eligible food processing units shall regulated on yearly basis keeping in
be allowed @ Rs.1.00 per unit as view of the changes in the tariff
against Rs 0.75 ps per unit as structures to ensure that the power
provided for the other eligible cost to the industry is pegged down
industries under IIPP. to the first years level.
3% interest rebate on term loan
limited Rs.5 Lakhs per year for 5
years
25% rebate in land cost in Industrial
Estates/ Industrial Development
Areas of APIIC limited to Rs.5 lakhs
50% subsidy for patent registration
limited to Rs. 5 Lakh
8% subsidy on capital equipment
for technology up gradation limited
to Rs 20 lakhs
50% subsidy for quality certification
limited to Rs. 1 Lakh
25% subsidy limited to Rs.5 Lakhs
on cleaner production measures
To increase industrial investment by
10% every year with an objective to
reach Rs.170 billions by 2010 by
promoting rapid growth of market
driven, knowledge based, efficient
and competitive industrial
environment.
Government Policies
110 Doing Business withAndhra Pradesh
Polices
Special incentives for SC/ST
entrepreneurs
Special incentives for women
entrepreneurs
Another 5% investment subsidy
Reimbursement of cost of power for limited Rs. 5 lakhs for women
eligible food processing units shall belongs to SC/ST community
be allowed @ Rs.1.00 per unit as 5% of Project will be provided as a
against Rs 0.75 per unit as provided seed capital assistance (limited Rs.
for the other eligible industries 5 lakhs) as a grant for National
under IIPP. Equity Fund Scheme sanctioned
50% subsidy for quality certification cases.
limited to Rs. 1 Lakh 5% interest subsidy (limited to Rs 5
25% subsidy limited to Rs.5 Lakhs lakhs per year) on PLR will be given
on cleaner production measures on term loan for a period of 5 years.
(for other than women it is only 3%)
50% subsidy for patent registration
limited to Rs. 5 Lakhs 8% subsidy on capital equipment
for technology up gradation limited
100% reimbursement of Stamp to Rs 25 lakhs
duty and transfer duty paid by the
industry on purchase of land meant
for industrial use
100% reimbursement of Stamp
d u t y f o r l e a s e o f 5% Additional Investment Subsidy
land / shed / buildings on fixed capital investment limited
100% reimbursement of Stamp to Rs 5.00 lakhs in additional to the
duty and transfer duty paid by the 15% investment subsidy (limited Rs
industry on financial deeds and 15 lakhs) to SSI / Tiny units
mortgages etc. 5% of Project will be provided as a
25% rebate in land cost in Industrial seed capital assistance (limited Rs 5
Estates/ Industrial Development lakhs) as a grant for National Equity
Areas of APIIC limited to Rs.5 lakhs Fund Scheme sanctioned cases.
25% of the tax paid during one 8% subsidy on capital equipment
financial year will be ploughed back for technology up gradation limited
as a grant for a period of 5 years. to Rs 25 lakhs
Tailor Made Special Incentive Incentives will be sanctioned for the
Package for Mega Projects with ineligible line of activities also.
investment more than Rs.1000
Million
5% Additional Investment Subsidy
on fixed capital investment limited
to Rs 5.00 lakhs in additional to the
15% investment subsidy (limited Rs
15 lakhs) to SSI / Tiny units
Government Policies
Doing Business with Andhra Pradesh 111
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A Unique Selling Proposition (USP) extended for tourism projects of
and brand image – It is important international standards to be set up in
that the Unique Selling Proposition of S p e c i a l To u r i sm A r e a s a n d
the State is defined and branding Notified Tourism Areas in such
done accordingly to ensure proper circumstances that
positioning and focus for the State in the Assured employment generation
Indian and world tourism map. ( d i r e c t a n d i n d i r e c t ) o n
Development and differentiation of sustainable basis in various
tourism products – Attention will be regions cross the state
f o c u s e d o n c r e a t i n g a n d Promoting rural tourism in the
differentiating tourism products in all State across various regions
sectors such as pilgrimage, heritage, Promoting desirable projects that
business, sports, spiritualism, econ- are otherwise commercially
tourism, health, leisure and rural unviable
tourism. Government shall work To ensure level playing field
closely with all the stake-holders between public and private sector
including private players in this tourism units
regard.
Priority for tourism project such
To devise well concerted publicity as wayside amenities, budget
campaigns to popularize the State’s hotels, urban entertainment
tourism products both in domestic and centres health resorts and leisure
international markets. resorts etc.
C a p a c i t y b u i l d i n g a n d Special incent ives to mega
institutionalization – Staffing pattern, tourism projects costing Rs 100
duty charts of the three operational crores or more on case to case
wings of Tourism Department i.e., basis.
Project Monitoring Unit (PMU),
Department of Tourism (DOT) and Availability of land with clear and
A n d h r a P r a d e s h To u r i s m often in the limiting factor for setting up
Development Corporation (APTDC) of useful tourism projects on long
shall be rationalized. lease. Considering the employment
potential and income generating
Involvement of Gram Panchayat and capacity of the sectors.
Municipality in tourism promotion as
p l a n n i n g a n d imp l eme n t i n g Providing basic infrastructure by the
agencies – Local bodies should play c o n c e r n e d G o v e r n m e n t
c ruc i a l rol e in pl anning and departments and agencies is vital to
development of tourism products make any tourist place viable and
especially in the Notified Tourism popular. Government considers it a top
Areas (NTAs) priority to formulate Tourism Sub
P l a n s ( T S P ) b y a l l r e l a t e d
Incentives and Concessions shall be Government Departments.
Government Policies-Tourism
Tourism Policy 2006
112 Doing Business withAndhra Pradesh
Tourism Development through and can be reviewed every five
Public Private Partnership (PPP): PPP years.
mode of planning and development Investment subsidy of 20% of the
of new tourism projects in the State. project cost limited to Rs 20 lakhs
Government shall consider making to all notified tourism projects.
land available wherever it is feasible Investment subsidy of 15% of the
and expect the private entrepreneurs project cost limited to Rs 20 lakhs
to plan, execute and operate the for Upgradation of existing hotels
tourist infrastructure projects. to International 3 star standards
Building infrastructure: Land / 100% reimbursement of stamp
Buildings duty and transfer fee paid by the
Encourage private investment in units on purchase of land or lease
tourism infrastructure of land/buildings meant for the
Identify land and buildings in project
other departments and utilize Reimbursement of 25% of Value
them by creating facilities Added Tax paid for a period of 5
Intra-department MoU to define years
subsisting rights, payment of Reimbursement of 25% of Luxury
lease sharing of profits. Tax by new hotels for a period of 5
Comprehensive development of years. The base tariff per room for
stake-holders involved in tourism levying luxury tax will be raised
Human Resources Development in from Rs 300 to Rs 500 per day.
tourism sector is an integral part of The rate of tax shall remain
attracting tourist and raising their unchanged @ 5%.
satisfaction level. Reimbursement of 25% of
Single Window Clearance system Entertainment tax for multiplexes
Tourism Marketing – to step up in theme parks and urban
tourist arrivals and to arrive at a entertainment centres for a
happy compromise between number period of 5 years limited to 100%
and quality. of the project cost for the projects
more Rs 5.00 crores and located
To u r i s m D e v e l o p m e n t & in Notified Tourism Areas or
Management Plan – Preparation of Special Tourism Areas
c o m p r e h e n s i v e p l a n f o r
development of all urban and rural
tourist spots / Government projects.
Concessional allotment of land
on long lease of 33 years at the
first instance. For mega projects,
longer initial lease period
exceeding 33 years and the lease
rent shall be 10% of market value
Incentives and Concessions
Government Policies-Tourism
Doing Business with Andhra Pradesh 113
Floor Area Index relaxation – The Department with sufficient
liberalized building rules notified budget allocation for sanction of
by the Government of Andhra incentives.
Pradesh and as amended from
time to time shall apply
A u t o m a t i c c o n v e r s i o n /
exemption from land use zoning
regulations for the purpose of
location, subject to pollution 25% of the tax paid during one
clearances and precautions. financial year will be ploughed back to
Capacity development of key industries as a grant towards
stake-holders – to extend suitable payment of tax during next year. This
incentives and concessions to benefit will be available for 5 years
incoming travel agents, tour from the date of commencement of
operators located in the Notified production.
Tourism Areas and Special Special incentives of Power tariff
Tourism Areas (NTAs and STAs). concession @ Rs 0.25 Ps. Per unit in
Investment subsidy of 15% of addition to concession of power tariff
totalcapital investment shall be Rs.1.00 per unit for all garment units
grantedfor establishment of during the 1st year of the policy and
online reservations systems, there after for the remaining four
hoisting of web pages in years, the rate of reimbursement
case of travel agents and tour would be so regulated on yearly basis,
operators. keeping in view of the changes in the
Treating hotels as industry for tariff structures to ensure that power
purpose of power tariff and cost to the industry is pegged down to
reimbursement of power cost to the first year’s level.
an extent of Rs 0.75 per unit in the 100% reimbursement of stamp duty
first year of the policy and and transfer duty paid by the industry
thereafter for four years as or for lease of land / shed /buildings
regulated from time to time on
yearly basis. Other concessions for quality
certification, cleaner production,
Investment subsidy of 15% of the patent registration and for
project cost subject to a technology upgradation.
maximum of Rs 20 lakhs for the
Heritage Hotels set up in NTAs
and STAs
In case of tourism projects set up
in backward areas, 50% of the tax
concessions and incentives will
be granted wherever 25% of tax
concessions are granted for the
units in other areas.
Separate fund in Tourism
Incentives offered for the
entrepreneurs in Apparel Export
Parks and Textile Parks:
Government Policies-
Tourism, Apparel & Textile
114 Doing Business withAndhra Pradesh
IT Policy
Power:
Rebate on Cost of Land:
Tier-II locations:
Stamp Duty:
Zoning regulations & Special
Stipulations for IT Parks on Private
lands and IT Campus :
Urban Land Ceiling Exemption:
Training Incentive :
and for accredited training programmes
IT industry is classified as provided the training institution is able to
industrial units for the purpose of levying place a minimum of:
the industrial power tariff. A.) 200 candidates per center per
annum for Training Institutes located in
IT/ITES units/ Hyderabad.
companies establishing their own
facilities on clear Government land are B.) 100 candidates per center per
eligible for a rebate in cost of land annum for Training Institutes located
calculated at the rate of Rs.20,000/- per elsewhere in Andhra Pradesh.
job created. This rebate is not available
on acquired lands. The eligibility criteria,
procedure for allotment of land and for A. subsidy of Rs.50 lakhs to the first five
availing of the rebate, are specified in. anchor IT / ITES companies employing
more than 250 employees in IT or 500
100% reimbursement of employees in ITES in any Tier-II location.
. stamp duty, transfer duty and
Registration fee paid by IT Industry & B. Rs.15 Lakhs as recruitment
Telecommunication companies. This assistance for employing minimum 100
incentive shall be allowed onetime on employees in IT & 200 employees in
the first transaction only. It will not be I T E S w i t h i n t w o y e a r s o f
available if the incentive, Rebate on cost commencement of commercial
of land is being availed and is subject to operations in the Tier-II city.
the criteria laid down in. IT/ITES units/ companies can avail
any one of the above incentives
only.
IT/ITES units/ This incentive is not available for the
companies will be exempt from the IT/ITES units/ companies availing
zoning regulations and from the Rebate on the Cost of Land.
payment of conversion fee.
A company in Hyderabad should
start new operations 100 Kms.,
Private land owners will be allowed away from the present location but
exemption under ULC for development within the state. The distance
of IT parks with a minimum extent of 25 between two units should be 100
acres in the periphery of city limits & Kms., for being considered as a new
beyond and with a minimum of 5 acres unit.
within city limits subject to payment of
prescribed fee.
Incentive of
Rs.2,000/- per candidate will be
provided to training centers, which
successfully trained the candidates in
communication/soft skills and employ in
reputed IT & ITES companies. Eligible
only to accredited training institutions
Government Policies-
Information Technology
Doing Business with Andhra Pradesh 115
N e w I T c o m p a n i e s Library for making available
commencing operations for the first material on trends in technology,
time in AP should be 100 kms., market intelligence, research
away from Hyderabad for availing reports and analysis etc by
the incentive. contributing Rs.10 lakhs per annum
This incent ive wi l l not be for development of the SME sector
a v a i l a b l e i f t h e i n c e n t i v e by making such material available
Rebate on cost of land is being at these libraries.
Availed. e. Rs.10 Lakhs as recruitment
assistance for employing minimum
100 employees in IT & 200
employees in ITES within one year
of commencement of commercial
Definition of SMEs: IT Industry operations in Hyderabad and
units/companies with turnover less around upto 50 kms. This incentive
t h a n R s . 1 0 c r o r e s a n d will not be available if the incentive
above Rs.1 crore per annum. Rebate on cost of land is availed.
A. Power: 25% rebate on power tariff in
the first three years of the
operations and conversion to
Industrial Power Tariff. This A special package of incentives will be
incentive shall be allowed subject to offered for mega projects. Such projects
the criteria laid down in. will be defined as projects creating
employment of more than 1000 in the
b. Reimbursement of 50% Exhibition case of IT and 1500 in the case of ITES.
subsidy for participating in the Alternatively an investment of Rs.50
international exhibitions limited to 9 crores and above will be considered as a
sq., mts., of space, in respect of the mega project.
stall rent payable for participation in
international events notified by the
IT&C Department.
c. Allotment of land: Government will
endeavor to reserving land for
preferred allotment to SMEs in the
IT Corridor proposed near
Hyderabad and land for SMEs in
other locations. Criteria for
allotment will be prepared
separately.
d. Government will support IT
Exporters Associations, HYSEA,
NASSCOM, STPI, IEG, or any such
organisation (as decided by the
committee) in the creation of
Special package for Small &
Medium Enterprises (SMEs)
Mega Projects:
Government Policies-
SME & Mega Projects
116 Doing Business withAndhra Pradesh
In the liberalized economy, Government days to the investors ;under single
of Andhra Pradesh have taken up window clearances state. It is made
number of reforms to simply the compulsory for all the industrial units to
p r o c e d u r e s , l aws , r u l e s a n d file the application form for various
documentation to attract more Clearances /Approvals through Nodal
investments into the State. Even in the Agencies and no individual department
post liberalization, an investor needs to or agency receive any application from
approach number of departments for the entrepreneur directly.
the various licenses or approvals or
clearances for setting up of an industrial
venture. Investors found very
cumbersome, time taking and hefty
documentation, thereby the growth rate Permission from Gram Panchayat
of investments was moving in a very slow Permission from Municipality or
pace. The entry level barriers also cause Urban Development or Town &
delays in implementing project and lead Country Planning
to cost escalation. The entrepreneurs Alienation of land
wanted a system with zero transaction
costs, predictable time frames and Approval from Factories
streamlined regulatory processes at a CFE from APPCB
single access point for all start-up Registration of Firms
services Acquisition of land other than IDA /
In order to encourage the investors for IE
quick implementation of their projects, Allotment of land in IE / IDA
Government of Andhra Pradesh has Water from HMWS & SB / Other
introduced Andhra Pradesh Industrial sources.
Single Window Clearance Act, 2002 with Change of land use for industrial
effect on and from the 22nd June, 2002. purpose
Andhra Pradesh is the first state in the
country to enact single window Power Feasibility certificate /
clearances both for the pre and post Sanction of Power.
operation of the industrial venture. So Storage of Petroleum products
far Rs. 22,000 crores worth investments and Naphtha
implemented through Single window Registration under APGST / CST
Clearances system. NOC from Fire Services
Under the single window system, the Department
investors need to file Common Drug Licence
Application Forms (CAF) for obtaining Letter of Intent for Distillery
all approvals / clearances, Allotments,
permissions, licenses required for Sanction of Terms Loan and Equity
setting up of the industrial unit. Most of by AP Industries Development
the clearances will be provided within 30 Corporation
Clearances, Permissions & Licenses
for Establishment of Industrial
Undertakings under State Acts
Government Policies
Single Window Clearance Act.
Doing Business with Andhra Pradesh 117
Clearances, Permissions & Licenses
for operation of industrial
undertakings under Central Acts
Hon’ble Chief Minister and Hon’ble
Ministers of Major Industries, Small
Scale Industries, Finance, Energy,
License from Factories Revenue, Commercial Taxes, Special
Invitee Hon’ble Ministers and Chief
CFO from APPCB (Air & Water Act.) Secretary as convener. The SIPB meets
Registration under Boiler Act. every month to review the promotion of
investments in the states, functioning of
License for possession & Use of RS the Single Window system and major
& DS policy decisions on mega investments to
District Level Single Window Committee promote industrial investments in the
(DLSWC) functions under the state.
chairmanship of the District Collector
and members from various industry Government of AP will escort services to
related departments at district level shall the mega projects for speedy
Process unit applications with implementation of the project and also
investment not exceeding Rs 500 lakhs to create a hassle free environment for
in Plant & Machinery. Application forms investors.
are available in the office of the General
Manager, District Industries Centre of
the respective district or in the office of
the Commissioner of Industries, Chirag
Ali Lane, Abids, Hyderabad-500 001,
Andhra Pradesh or in the website
www.apind.gov.in
State Investment Promotion Committee
functions under the chairmanship of
Chief Secretary to Government and
Principal Secretaries of Finance &
Planning, Irrigation & CAD, Revenue,
Municipal Administration and Urban
Development, Transport, Roads &
Building, Energy, GAD (coordination),
Industries and Commerce and
Commissioner of Industries as
members. SIPC meets once in a month
to review the functioning of the Single
Window clearances system and to sortout
Interdepartmental issues relating to
promotion of investments in the State.
State Investment Promotion Board
functions under the chairmanship of the
Government Policies
118 Doing Business withAndhra Pradesh
Sl. Department / Agency Service Time limit prescribed
No Under SW
Act No.17 of 2002
1 Panchayat Raj Department Site and Building Plan Approval 7 days
2 Urban Development Authority Site and Building Plan Approval 7 days
Change of Land use 45 days
3 Town & Country Planning Site and Building Plan Approval 7 days
Change of Land use 45 days
4 Municipality Site and Building Plan Approval 7 days
Change of Land use 45 days
5 Factories Department Approval of Factory plans 7 days
Factory Licence 7 days
6 Chief Commissioner of Land Acquisition / Alienation
Administration (CCLA) of Govt. Lands 45 days
7 Distribution Companies Power feasibility and connections 7 days & 23 days
8 Hyderabad Metro Water Sanction of Water supply 7 days & 23 days
Supply & Sewerage Board and connection
9 Irrigation Department Permission to draw water from 30 days
rivers / Public tanks
10 Commercial Taxes Dept. VAT / CST registration 7 days
11 AP Industrial Infrastructure Allotment of land / Shed in Industrial 7 days upto
Development Corporation Estates or Industrial Areas 1000 Sq. Mts.
21days above
1000 Sq. Mts.
12 Registrar of Firms Firm Registration 7 days
13 AP Pollution Control Board Consent for Establishment
Green 7 days
Orange 21 days
Red 45 days
Consent for Operation
Green 7 days
Orange 21 days
Red 45 days
Government Policies
Time schedules under S.W. Act
Doing Business with Andhra Pradesh 119
Time schedules under S.W Act
Sl. Department / Agency Service Time limit prescribed
No Under SW
Act No.17 of 2002
14 Fire Services Department No Objection Certificate 15 days
15 Excise Department Permission for establishment 30 days
of distillery
Licence for possession and 7 days
use of RS
Licence for possession and 7 days
use of DS
16 District Collector Licence for use of chlorate of potash 7 days
17 Drug Control Licence for manufacturing bulk -
Administration Department drugs / formulations / cosmetics
18 Commissioner of Indian Licence to manufacture Ayurvedic -
Medicines and Homeopathy / Homeo / Siddha / Unani
19 Boiler Department Registration under Boilers Act. -
20 Civil Supplies Department Licence to import and storage of -
Petroleum / Diesel / Naptha
Government Policies
120 Doing Business withAndhra Pradesh
The Micro, Small and Medium
Enterprises Development Act, 2006
The Indian industrial environment was are facing tough challenges in the
traditionally identified by its regulative present scenario of liberalization and
and protective characteristics. Till, globalization. Indian SMEs are finding it
1990, the Indian economy was inward difficult to sell their products in the
looking and protected from internal and domestic and international markets
external competition. In the absence of because of increasing competition.
competition, firms did not develop the
technological capability needed for SMEs have to learn and imbibe the
penetrating the global market. Indian process of innovation, in their day to day
industry is facing tough competition working, to remain competitive. Instead
from imports in the domestic markets of looking for support from other
also. This competition is in terms of new agencies, they have to find their own
designs, new usages, reduced cost, ways of overcoming barriers. Despite all
improved quality, products with higher the barriers and gaps which I have stated
performance and variety, better services, before, Indian SMEs have continued on
all delivered simultaneously to enhance their path of progress. In fact, their rate
values to the customers. The problems of growth is higher than the rate of
faced by the SMEs, particularly in growth of the industry sector as a whole,
accessing technology and maintaining their contribution to our GDP is almost
competitiveness have been formidable. 7%. In the past also, our SMEs have
shown enough strength, vigour and
The small-scale industries (SSI) sector resilience and in current situation they
plays a vital role in the growth of the will not only survive but win also. We
country. It contributes almost 40% of the have our examples of Hero Honda,
gross industrial value added in the Ranbaxy, Infosys, WIPRO, Bharti
Indian economy, producing over 8000 Telecom and many more SMEs who
value-added products. They contribute have shown to the world the path of
nearly 35% in direct export and 45% in success.
the overall export from the country. It has
been estimated that a million Rs. of Indian Government has introduced THE
investment in fixed assets in the small MICRO, SMALL AND MEDIUM
scale sector produces Rs 46.20 Lakh ENTERPRISES DEVELOPMENT ACT,
worth of goods or services with an 2006 with the following objectives.
approximate value addition of ten To provide for facilitating the
percentage points. They are one of the promotion and development and
biggest employment-providing sectors enhancing the competitiveness of
after agriculture, providing employment small and medium enterprises and
to 28.28 million people. for matters connected therewith or
India has nearly 3 million SMEs, which incidental thereto
produce a diverse range of products A declaration as to expediency of
from very basic to highly sophisticated control of certain industries by the
products. Despite their strength, SMEs Union was made.
Government Policies
Doing Business with Andhra Pradesh 121
Classification of Enterprises:
Any person who intends to
establish,-
may, at his discretion; or
In the case of the enterprises engaged in c) a medium enterprise engaged in
the manufacture or production of goods the manufacture or production of
pertaining to any industry specified in goods pertaining to any industry
the first schedule to the Industries specified in the First Schedule to
(Development and Regulation) Act, the Industries (Development and
1951, as Regulation) Act, 1951, shall file the
memorandum of micro, small or, as
(i) a micro enterprise, where the the case may be, of medium
investment in plant and machinery enterprise with such authority as
does not exceed twenty five lakh may be specified by the State
rupees; Government under sub-section (4)
(ii) a small enterprise, where the or the Central Government under
investment in plant and machinery sub-section
is more than twenty five lakh rupees
but does not exceed five crore Provided that any person who, before
rupees; or the commencement of this Act,
(iii) a medium enterprise, where the established—
investment in plant and machinery a small scale industry and obtained a
is more than five crore rupees but registration certificate, may, at his
does not exceed ten crore rupees; discretion; and
(b) In the case of the enterprises an industry engaged in the manufacture
engaged in providing or rendering or production of goods pertaining to any
of services, as industry, having investment in plant and
a micro enterprise, where the machinery or more than one crore
investment in equipment does not rupees but not exceeding ten crore
exceed ten lakh rupees; rupees, file an Industrial Entrepreneurs'
(ii) a small enterprise, where the Memorandum, shall within one hundred
investment in equipment is more a n d e i g h t y d a y s f r om t h e
than ten lakh rupees but does not commencement of this Act,
exceed two crore rupees; or
(iii) a medium enterprise, where the
investment in equipment is more
than two crore rupees but does not
exceed five crore rupees
(a) a micro or small enterprise, may, at
his discretion; or
(b) a medium enterprise engaged in
providing or rendering of services
Government Policies
122 Doing Business withAndhra Pradesh
Andhra Pradesh
Andhra Pradesh, the Business State is
the most preferred investment destination in the country
Project Implementation
123
Post Implementation Steps
Recruitment of Personnel
Procurement of Raw Material
Licenses and Approvals
Consent for Operation from APPCB
Factory License under Factories act
Trial Production
Commercial Production
EM Part-II
Submission of Part-B under IEM
Pre-Implementation Steps
Project Identification
Project feasibility study
Constitution
Proprietary
Partnership
Private Limited
Public Limited
Cooperatives
Selection of Location
Registrations
EM/IEM/EOU/IL
Selection of Land
IEs/ IDA/EPZ/SEZ
Private Lands
Government Lands
Application to Financial
Institutions
Implementation Steps
Building Plans and designs
Selection of Machinery and placing
order
Panchayat/Municipality/Local Body
NOC/CFE from DIC/ APPCB
Approval from Inspector of
Factories
Approval from UDA/ T& CP
Power feasibility from APTRANSCO
Drug License from Drug Inspector
Approval from Forest Department
Approval from District Magistrate
Food Product Order (FPO)
NOC from Fire Department
Approval from Inspector of Boilers
Building Construction
Placing order for machinery
Power connection
Installation of Machinery
Project Implementation
Steps in implementation of the Project
124 Doing Business withAndhra Pradesh
Classification of Enterprises: introduction of MSME Act. from 2-10-
Manufacturing or production of goods 2006 shall file a Memorandum with
pertaining to any industry District Industries Centre. For any
further details please visit website:
Micro enterprise – investment in
Plant and Machinery not exceeding
Rs 25 lakhs
Small Enterprise – Investment in
Plant and Machinery more than Rs
25 lakhs but not exceeding Rs. 5.00
crores
Medium Enterprise – Investment in
Plant and Machinery more than Rs
5.00 crores but not exceeding Rs.
10.00 crores
w w w . a p i n d . g o v . i n o r
Enterprises engaged in providing or www.www.smallindustryindia.com
rendering service
A Commissioner of Industries is the
Micro enterprise – investment not nodal agency for facilitating the
exceeding Rs 10 lakhs investors in the manufacturing sector
Small Enterprise – Investment more like identification of location of the
than Rs 10 lakhs but not exceeding i n d u s t r y , g u i d a n c e f o r
Rs. 2.00 crores documentation, arranging various
industrial clearances/ approvals from
Medium Enterprise – Investment different Government Departments /
more than Rs 2.00 crores but not Agencies through Single window
exceeding Rs. 5.00 crores clearances, process applications for
Any person who intends to establish sanction of incentives under the
Micro, Small Enterprise and Medium existing industrial policies of
enterprise shall file a Entrepreneurs Government of Andhra Pradesh etc.
Memorandum with the concerned
District Industries Centre working under
the administrative control of
Commissioner of Industries. The
application of Memorandum is available
a t w w w. a p i n d . g o v . i n o r
www.smallindustryindia.com or
www.laghu-udyog.com. All existing
Medium Enterprises till 1-10-2006 and
becoming a small enterprise due to
Commissioner of Industries
Chirag Ali Lane, Abids,
Hyderabad – 500 001
Tel. No : 91-40-23441600-06
Fax: 91-40-23441611
e-mail: comm_inds@ap.gov.in
Web: www.apind.gov.in
Project Implementation
Setting up of a Micro, Small & Medium Enterprise
Doing Business with Andhra Pradesh 125
All investments exceeding Rs
10.00 crore in plant and machinery
is categorised as large scale
industry.
public sector undertakings
Railways
Atomic Energy
Small and medium sector
Industrial policy for setting up of An industrial undertaking is defined as a
Large Scale Industry small-scale unit if the capital investment
At present industrial licence for in plant and machinery does not exceed
manufacturing is required only for Rs 50 million, The Government has
the following : reserved certain items for exclusive
I n d u s t r i e s r e t a i n e d u n d e r manufacture in the small-scale sector.
compulsory licensing, (List available at www.apind.com or
www.smallindustryindia.com)
Manufacture of items reserved for
small scale sector by non-SSI units; Manufacture of items reserved for
and small & medium sector
When the proposed location Non small-scale units can manufacture
attracts locational restriction items reserved for the small-scale sector
only after obtaining an industrial license.
Industries requiring compulsory In such cases, the non-small scale unit is
licensing required to undertake an obligation to
Distillation and brewing of alcoholic export 50 per cent of the production
drinks. of SSI reserved items.
Cigars and cigarettes of tobacco Locational Restrictions
and manufactured tobacco Industrial undertakings are free to select
substitutes; the location of their projects. Industrial
Electronic Aerospace and defence License is required if the proposed
equipment: all types; location is within 25 KM of the Standard
Urban Area limits of cities having
Industrial explosives, including population of 1 million as per 1991
detonating fuses, safety fuses, gun census. (In Andhra Pradesh such cities
powder, nitrocellulose and are Hyderabad and Visakhapatnam).
matches; Locational restriction does not apply :
Hazardous chemicals; If the unit were to be located in an area
Hydrocyanic acid and its designated as an ‘’industrial area’’ before
derivatives the 25th July, 1991 or In the case of
Electronics, Computer software and
Phosgene and its derivatives Printing and any other industry, which
Isocyanates and di-isocyanates may be notified in future as “non
of hydrocarbon, not elsewhere polluting industry”. The location of
specified (example: Methyl industrial units is subject to applicable
Isocyanate). local zoning and land use regulations
Industries reserved exclusively for and environmental regulations.
Project Implementation
Setting up of a Large Scale Industry
126 Doing Business withAndhra Pradesh
Procedure for Obtaining Industrial
License :
Policy for Industries Exempt from
L i c e n s i n g - I n d u s t r i a l
Entrepreneurs Memorandum An IEM would stand cancelled if
(IEM) the proposal requires compulsory
license.
Procedure for IEM
from the web site www.dipp.gov.in. The
IEM can be filed with the PR&C section in
SIA either in person or by post. The IEM
Industrial License is granted by the should be submitted along with a
Secretariat for Industrial Assistance crossed demand draft of Rs.1000/-
(SIA) on the recommendation of the (appr. US$ 22) for up to 10 items
Licensing Committee. Application for proposed to be manufactured. For more
industrial license is required to be than 10 items, an additional fee of Rs.
submitted in the prescribed form (Form 250 (appr. US$ 6) for up to 10 additional
FC-IL) accompanied with a crossed items needs to be paid. On filing the
demand draft of Rs. 2500/- (appr. US$ IEM, an acknowledgement containing
55) to PR&C Section, SIA, Department the SIA Registration Number, for future
of Industrial Policy & Promotion, Ministry reference, is issued. In case IEM is sent
of Commerce & Industry, Udyog by post, the acknowledgement is sent by
Bhavan, New Delhi –11. India. This form post & no further approval is required.
is available in the Public Relation and
Complaint Section (PR&C) of the SIA, all
outlets dealing in Government
Publications, Indian Embassies, and can
be downloaded from the web site
http://www.dipp.gov.in.. Decisions are
usually taken within 4-6 weeks of filing
the application.
Industrial undertakings exempt from
industrial license are only required to file
a n I n d u s t r i a l E n t r e p r e n e u r Upon commencement of commercial
Memorandum (IEM) in Part ‘A’, in the production, Industrial undertakings
prescribed format to PR&C Section, SIA, need to file information in Part ‘B’ of the
Department of Industrial Policy & IEM to PR&C Section in SIA. No fee is to
Promotion, Ministry of Commerce & be paid for filing Part B. All industrial
Industry, Udyog Bhavan, New Delhi –11. undertakings whether or not exempt
India from compulsory industrial licensing,
are statutorily required to submit
monthly production return in the
prescribed proforma every month. This
The form for filing an IEM is available at should reach the Industrial Statistics
Public Relation and Complaint Section Unit (ISU) of the Department positively
(PR&C), all outlets dealing in by the 10th of the following month.
Government publications, Indian
Embassies, and can also be downloaded
Project Implementation
Doing Business with Andhra Pradesh 127
Secretariat for Industrial
Assistance (SIA)
Foreign Direct Investments (FDIs)
is allowed, under the automatic route, in
most sectors/activities (see the sectors
a n d p e r c e n t a g e a l l o w e d a t
Secretariat for Industrial Assistance www.dipp.gov.in). FDI under the
(SIA) has been set up in the Department automatic route does not require prior
of Industrial Policy and Promotion approval either by the Government of
(DIPP) in the Ministry of Commerce and India or the Reserve Bank of India (RBI).
Industry to provide a single window for Investors are only required to notify the
entrepreneurial assistance, investor concerned Regional office of RBI within
facilitation, conveying Government 30 days of receipt of inward remittances
decisions on applications filed, assisting and file required documents with that
entrepreneurs and investors in setting office within 30 days of issue of shares to
up projects, (including liaison with other foreign investors.
organisations and State Governments)
and in monitoring implementation of Equity participation by international
projects. It also notifies all Government financial institutions such as ADB, IFC,
policy relating to investment and CDC, DEG, etc., in domestic companies
technology. is permitted through automatic route,
subject to SEBI/RBI regulations and
sector specific cap on FDI.
The Government of India has recently FDI up to 100% is permitted under the
undertaken a comprehensive review of automatic route for setting up of Special
the FDI policy and associated Economic Zone (SEZ). FDI up to 100%
procedures. As a result, a number of is permitted under automatic route for
rationalisation measures have been setting up of Industrial Park. Proposals
undertaken which, inter alia include, not covered under the automatic route
dispensing with the need of multiple require approval by FIPB.
approvals from Government and/or
regulatory agencies that exist in certain Under the Government approval route,
sectors, extending the automatic route applications for FDI proposals, other
to more sectors, and allowing FDI in new than by Non-Resident Indians, and
sectors. proposals for FDI in ‘Single Brand’
product retailing, are received in the
Department of Economic Affairs, North
Block, New Delhi. Proposals for FDI in
‘Single Brand’ product retailing and by
NRIs are received in the Department of
Industrial Policy & Promotion, Udyog
Bhavan, and New Delhi. Application for
NRI and 100% EOU cases should be
presented to PR&C Section, SIA,
Department of Industrial Policy &
Promotion, Ministry of Commerce &
Industry, Udyog Bhavan, New Delhi –11.
As per the extant policy, FDI up to 100% India.
Project Implementation
128 Doing Business withAndhra Pradesh
Foreign Investment Promotion
Board (FIPB)
F o r e i g n I n v e s t m e n t
Implementation Authority (FIIA)
Automatic Route
Foreign Technology Agreements -
General Policy
S c o p e o f Te c h n o l o g y
Collaboration
technology collaboration, which are
eligible for approval through the
automatic route and by the Government
The Government has set up the Foreign approval route, includes technical know
Investment Promotion Board (FIPB) to how fees, payment for design and
consider Foreign Direct Investment drawing, payment for engineering
(FDI) proposals requiring prior service and royalty. Payments for hiring
Government approval. of foreign technicians, deputation of
Indian technicians abroad, and testing
of indigenous raw material, products,
indigenously developed technology in
foreign countries are governed by
Foreign Investment Implementation separate RBI procedures and rules
Authority (FIIA) has been established to pertaining to current account
facilitate quick implementation of FDI transactions and are not covered by the
approvals and assist foreign investors in foreign technology collaboration
getting necessary approvals. Fast Track approval. For details please refer to the
Committees have been set up in 30 website of the RBI.
Ministries/Departments for regular
review of FDI mega projects (with
proposed investment of Rs. 1 billion and
above), and resolution of any difficulties. Payment for foreign technology
Details of the fast track committees set collaboration by Indian companies are
up in various ministries is available at allowed under the automatic route
http://dipp.gov.in. Investors can subject to the following limits :
approach FIIA through website
http://dipp.gov.in. (I) the lump sum payments not
exceeding US$2 million;
(ii) royalty payable being limited to 5
per cent for domestic sales and 8 per
cent for exports, without any
For promoting technological capability restriction on the duration of the royalty
and competitiveness of the Indian payments.
industry, acquisition of foreign
technology is encouraged through The royalty limits are net of taxes and are
foreign technology collaboration calculated according to standard
agreements. Induction of know-how conditions. The royalty will be calculated
through such collaborations is on the basis of the net ex-factory sale
permitted either through automatic price of the product, exclusive of excise
route or with prior Government duties, minus the cost of the standard
approval. bought-out components and the landed
cost of imported components,
irrespective of the source of
procurement, including ocean freight,
The terms of payment under foreign insurance, custom duties, etc.
Project Implementation
Doing Business with Andhra Pradesh 129
Strengths of Andhra Pradesh Investment opportunities
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Globally recognized and fastest Agro and Food Processing
growing base for IT, IT Enabled
Services and Bio-Technology Bulk Drugs, Pharmaceuticals and
Bulk Drug Capital of the Country Chemicals
with 1/3rd of India’s Production Biotechnology
Leading state in several Agro-based Mining & Mineral
industries – Rice, Sugar, Edible Oil,
Sea foods with strong agro, horti IT , ITES
bases Electronic Hardware
Second largest store house of Automobile and Auto components
mineral resources in India
Iron & Steel
Cement and granite power house of
India Precision Machine Tools
Leading Producer of Paper Leather & Textile Products
Exports from A.P are growing @ Paper products
20% every year
Petro-chemicals & Refinery
Second longest coastline of 970
kms
Water Resources – Krishna,
Godavari & Penna major rivers
Availability of Huge Natural Gas
resources
Project Implementation
130 Doing Business withAndhra Pradesh
Andhra Pradesh
Andhra Pradesh, the Business State is
the most preferred investment destination in the country
Key Contacts
131
Key Contacts
1.Industrial Investment Principal Secretary & CIP
Policies, General Industries and Commerce,
Guidance for Government Of Andhra Pradesh,
investments in the 2nd Floor, D Block, Secretariat,Hyderabad-500002
manufacturing sector Ph:91-40-23454449
Bulk Drugs & Tele Fax:91-40-23452985
Pharmaceuticals Email: Prlsecy_cip_inds@ap.gov.in
Food Processing
Mineral based industries Chief Executive Officer,
like Cement, Granite, AP Invest,
Steel, Ceramics etc. Room # 201, A-Block,Secretariat,Hyderabad- 500 022
Leather Phone: +91-40-23453977, 23451092 (Fax)
Automobile e-mail: ceo_apinvest@ap.gov.in, advisor_it@ap.gov.in
Hitech & Precision Tools web: wws.apinvest.co.in, www.apit.gov.in
Electronic Hardware
Commissioner of Industries,
Chirag Ali Lane, Abids, Hyderabad-500001
Ph:91-40-23441666
Fax:91-40-23441666
Email: comm_inds@ap.gov.in
www.apind.gov.in
Vice Chairman and Managing Director,
2. Land & Andhra Pradesh Industrial Infrastructure Corporation
Infrastructure facilities ‘Parisrama Bhavan’, 6th Floor, 5-9-58/B,
Fateh Maidan Road, Basheerbagh, Hyderabad-500004
Ph:91-40-23230234/23233596
Email:apiic@hd1.vsnl.net.in
3. Roads, Ports, Airports Principal Secretary to the Government,
Transport, Roads & Buildings
Government of Andhra Pradesh
5th Floor, J Block Secretariat,
Hyderabad-500-022
Ph:91-40-23453237
Fax:-91-40-23450104
Managing Director,
Andhra Pradesh Road Development Corporation
Erra Manzil, Hyderabad-500-081
Ph:91-40-23391155
Fax:91-40-23323556
Sector / Area Key Contact
132 Doing Business withAndhra Pradesh
Key Contacts
5. Information on Commissioner of Agriculture,
Agriculture Fathemaidan, Abids, Hyderabad – 500 001
Phone: +91-40-23232107 Fax: +91-40-23383514
E-mail: comag@apsu.ap.nic.in
Agriculture Production Commissioner
Government of Andhra Pradesh,
1st Floor,D Block,Secretariat,Hyderabad-500022
Ph:91-40-23452263, Fax:91-4023457086
4. Food Processing Principal Secretary & CIP
Industries and Commerce,
Government Of Andhra Pradesh,
2nd Floor, D Block, Secretariat, Hyderabad-500002
Ph:91-40-23454449 Tele Fax:91-40-23452985
Email: Prlsecy_cip_inds@ap.gov.in
Sector / Area Key Contact
6. Information on Commissioner of Horticulture
Horticulture Public Gardens, Hyderabad.
7. Textiles Commissioner of Handlooms & Textiles
and Development Commissioner
4th Floor C-Block,BK Building, Hyderabad
Ph:91-40-23224542/ 23225005 Fax:91-40-23224542
Email: dir_ht@ap.gov.in
8. Leather Vice Chairman & Managing Director, LIDCAP,
Dargha Hussainia Hawalia, Old Bombay Road,
Gachibowli, Hyderabad
Ph:91-40-23568979 Fax:91-40-23568690
9. Tourism Secretary to the Government,
Tourism & Culture Department,
Government of Andhra Pradesh,
Secretariat,22-A,1st Floor, D Block, Hyderabad-500022
Ph:91-4023456717/23450079 Fax:91-40-23452055,23454966
Email:aptourism@hotmail.com aptourism@rediffmail.com
www.aptourism.com
Chairman & Managing Director
Andhra Pradesh Tourism Development Corporation,
Tourism House,3-5-891,Himayatnagar, Hyderabad-500029
Ph:91-40-23261833, 23262151 to 54 Fax:91-4023261801
Email:aptdc@satyam.net.in
Doing Business with Andhra Pradesh 133
Key Contacts
11. Mines and Minerals Director of Mines and Geology,
Government of Andhra Pradesh
BRK Building, Tankbund Road,
Hyderabad-500029.
Ph:91-40-23220649/23221250, Fax:91-40-23225519
10. Taxes / VAT Commissioner of Commercial Taxes
MJ Road, Nampally,
Hyderabad
Phone: +91-40-24732351, Fax: +91-40- 24618912
E-mail:Commissionercct@ap.gov.in
Web: www.apcommercialtaxes.gov.in
Sector / Area Key Contact
12. Power Chairman & Managing Director,
APTRANSCO,
Vidhyut Souda Building,
Somajiguda,Hyderabad
Phone: +91-40-23317657, Fax: +91-40- 23320565
13. Environmental Member Secretary
issues AP Pollution Control Board
Paryavaran Bhavan, A3, I.E., Sanathnagar, Hyderabad-500018
Ph:91-40-23815630/23807500 Fax:91-40-23815631
Email:msapspcb@hd2.dot.net.in
www.appcb.org
14. Biotechnology Director,
Biotechnology
Industries and Commerce,
Government Of Andhra Pradesh,
2nd Floor, D Block,Secretariat, Hyderabad-500002
Ph:91-40-23450721 Tele Fax:91-40-23452985
14. IT/ITES Secretary
Department of Information Technology and Communications,
Government Of Andhra Pradesh,
3rd Floor, D Block,Secretariat, Hyderabad-22
Ph:91-40-23456401, Fax:91-40-23450103
Email:secy_it&c@ap.gov.in
Website:www.apit.gov.in
134 Doing Business withAndhra Pradesh
Key Contacts
gmdic_cdp@inds.ap.gov.in
09848778534
98518-230212
98518-233598
12 Kurnool B-Camp
gmdic_atp@inds.ap.gov.in
09848778533
08554-240005
08554-236232
DPAP
Compound
11 Ananthapur
gmdic_ctr@inds.ap.gov.in
09848778532
08572-228224
Industrial
Estate
10 Chittoor
gmdic_nlr@inds.ap.gov.in
09848778536
0861-2328658
0861-2324489
Industrial
Estate
9 Nellore
gmdic_prk@inds.ap.gov.in
09848778537
08592-233042
Nellore Road,
Ongole
8 Prakasham
gmdic_gnt@inds.ap.gov.in
09848778543
0863-2234864
0863--2234931
Opp.
Collectorate
7 Guntur
gmdic_krsn@inds.ap.gov.in
09848778538
0866-2555104
0866-2553673
Jawahar Auto
Nagar,
Vijayawada
6 Krishna
gmdic_wg@inds.ap.gov.in
09848778539
08812-230354
08812-231435
Near
Collectrate,
Eluru
5 West Godavari
gmdic_eg@inds.ap.gov.in
09848778540
0884-2344139
0884-2374291
Industrial
Development
Area, Kakinada
4 East Godavari
gmdic_vsk@inds.ap.gov.in
09848778541
0891-2558166
0891-2558165
Industrial
Estate
3 Visakhapatnam
gmdic_vznm@inds.ap.gov.in
09848778542
08922-225478
Industrial
Estate
2 Vizianagaram
gmdic_sklm@inds.ap.gov.in
09848778544
08942-225895
7-4-30, New
Colony
1 Srikakulam
Phone No E-mail address
Office
Address
District
S
No
Doing Business with Andhra Pradesh 135
Key Contacts
gmdic_hyd@inds.ap.gov.in
09848778522
040-27617652
040-27614708
23 Hyderabad Musheerabad
gmdic_rr@inds.ap.gov.in
09848778523
040-23078149
040-23079168
Balanagar X
Roads,
Hyderabad
22 Ranga Reddy
gmdic_mdk@inds.ap.gov.in
09848778524
911-276529
911-274899
Near PWD
Office,
Sangareddy.
21 Medak
gmdic_kmm@inds.ap.gov.in
09848778525
08742-228279
20 Khammam Industrial Estate
gmdic_wgl@inds.ap.gov.in
09848778526
08712-2427134
Industrial
Estate, Mulug
Road
19 Warangal
gmdic_nlg@inds.ap.gov.in
09848778527
08682-223078
08682-223417
Kranthinagar,
Rly Stn. Road,
DIC, Nalgonda
18 Nalgonda
gmdic_mbnr@inds.ap.gov.in
09848778528
08542-242292
08542-242088
17 Mahaboobnagar Industrial Estate
gmdic_kmnr@inds.ap.gov.in
09848778529
08722-240378
08722-240916
16 Karimnagar Industrial Estate
gmdic_adb@inds.ap.gov.in
09848778531
08732-226450
08732-226660
15 Adilabad Near Collectrate
gmdic_nzbd@inds.ap.gov.in
09848778530
08462-237153
Near
Collectorate
14 Nizamabad
gmdic_knl@inds.ap.gov.in
09848778535
08562-252269
08562-244159
Income Tax
Road, Smit
Road.
13 Cuddapah
District Office Address Phone No E-mail address
S
No
136 Doing Business withAndhra Pradesh
S.No Department / Information Web address
1 Government of AP - AP Portal www.aponline.gov.in
2 Industries Department www.apind.gov.in
3 APINVEST www.apinvest.co.in
4 Industrial Policies http://dipp.nic.in
www.smallindustryindia.com
www.laghu-udyog.com
5 Infrastructure Corporation of AP www.incap.co.in
6 Land and Infrastructure Development www.apiicltd.com
www.apsez.com
www.vsez.gov.in
7 Special Economic Zones http://sezindia.nic.in
8 Visakhapatnam / Krishnapatnam Port www.vizagport.com
www.krishnapatnam.com
9 Taxes / VAT/Central Excise www.apcommercialtaxes.gov.in
www.apvatonline.com
www.cbec.gov.in
10 AP Power sector www.apgenco.com
www.aptranscorp.com
www.apeasternpower.com
www.apcentralpower.com
www.spdclap.co.in
www.apnpdclap.co.in
11 Power Tariffs www.ercap.org
12 Environmental issues www.appcb.org
www.eptri.com
http://envfor.nic.in
13 Forest Department http://forests.ap.nic.in
14 Mines & Mineral http://mines.nic.in
www.nmdc-india.com
www.granite.org.in
www.apmines.gov.in
15 Coal http://scclmines.com
www.scclmines.com
http://coal.nic.in
16 Agriculture http://agri.ap.nic.in
17 Horticulture www.aphorticulture.com
18 Fisheries www.ap-fisheries.org
19 Biotechnology www.genomevalley.org
www.iciciknowledgepark.com
www.spbiotechpark.com
http://dbtindia.nic.in
http://dst.gov.in
20 Technology www.aptdc.com
www.iictindia.com
www.ccmb.res.in
www.apitco.org
www.cipetindia.com
www.cftri.com
www.techno-preneur.net
www.tifac.org.in
Doing Business with Andhra Pradesh 137
Web Directory
S.No Department / Information Web address
20 Technology www.aptdc.com
www.iictindia.com
www.ccmb.res.in
www.apitco.org
www.cipetindia.com
www.cftri.com
www.techno-preneur.net
www.tifac.org.in
21 Food Processing http://mofpi.nic.in
22 Urban Development www.hydhuda.org
http://urbanindia.nic.in
23 Transport www.aptransport.org
24 Roads www.aproads.com
http://morth.nic.in
25 Shipping http://shipping.gov.in
26 Railways www.scrailway.gov.in
www.indianrailways.gov.in
27 Information Technology www.apit.gov.in
www.hyd.stpi.in
www.iiit.net
28 Tourism www.aptourism.com
29 Chemical & Petrochemical http://chemicals.nic.in
30 Fertilisers http://fert.nic.in
31 Petroleum & Natural Gas http://petroleum.nic.in
32 Commerce http://commrce.nic.in
33 Airports / Civil Aviation www.newhyderabadairport.com
http://civilaviation.nic.in
www.airportsindia.org.in
34 Ministry of Power http://powermin.nic.in
35 Textiles http://texmin.nic.in
36 Steel http://steel.nic.in
37 Labour http://labour.nic.in
38 Institutions http://nisiet.gov.in
www.asci.org.in
www.cess.ac.in
www.nalsarlawuniv.org
39 Handicrafts www.lepakshihandicrafts.gov.in
40 Heavy Industries http://dhi.nic.in
41 Public Enterprises www.pedap.org
http://dpe.nic.in
42 Company Affairs www.mca.gov.in
43 AP Education www.apsche.org
44 Indian School of Business www.isb.edu
45 Government of India portal http://goidirectory.nic.in
46 Industrial Associations www.ciionline.org
www.ficci.com
www.fapcci.in
www.eliap.org
www.bdma-assn.org
www.ipapharma.org
47 Trade Fairs / Exhibitions www.hitex.co.in
www.indiatradepromotion.org
www.cidex-tradefairs.com
48 Telephone Directory www.aptelecom.gov.in
Web Directory
138 Doing Business withAndhra Pradesh
Andhra Pradesh
Doing Business with
www.apind.gov.in
Crafted by Logix : 9246526500

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Saturday, November 28, 2009

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