Proposed industrial corridor. Vizag among top five ports in India. Power surplus state. FDI investment scattered across state

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3 Proposed industrial corridor The proposed Visakhapatnam-Chennai industrial corridor is expected to attract investment to the tune of US$ 16.7 billion and will create more than 50,000 jobs. Vizag among top five ports in India The Visakhapatnam port ranks amongst the top five of 13 major ports in the country. During , it handled 58.5 million tonnes of cargo. Power surplus state Seemandhra, comprising Rayalaseema and coastal Andhra, has most of the power projects of undivided Andhra Pradesh. Coal based power plants are mostly located in the state due to proximity to the ports. FDI investment scattered across state FDI in Andhra Pradesh is scattered across the state both in Coastal Andhra and Rayalaseema. Largest exporter of marine products Andhra Pradesh is one of the largest producers of brackish water shrimps and freshwater prawns. It contributes more than 20 per cent to the country s total marine exports.

4 Home to various pharma players Various pharmaceutical companies have set up their manufacturing hubs in Visakhapatnam and Srikakulam districts. The state provides ample growth opportunities due to availability of ports, pharma city, large parcels of land for expansion etc. Tourist destinations The state has a large coast line of nearly 1,000 kms, temple destinations, lush green forests and spicy cuisine which led to increase in domestic tourism in the last few years. Rich in hydrocarbon and mineral resources According to the Director General of Hydrocarbons (DGH), Andhra Pradesh has huge oil and gas reserves; the state is also rich in mineral resources which include manganese, limestone, mica, steatite, copper, graphite etc. Setting up PCPIR and NIMZs The state is in the process of setting up two National Investment and Manufacturing Zones in Chittoor and Prakasam districts. Moreover, the upcoming PCPIR in the region would boost refining, petrochemicals and chemical industries. Large number of operational SEZs Andhra Pradesh has 17 operational SEZs in the state across diversified sectors located mainly across Visakhapatnam, East Godavari and Nellore. PCPIR: Petroleum, Chemicals and Petrochemicals Investment Region

5 Andhra Pradesh Reorganisation Act, 2014 or the Telangana Act is a parliamentary declaration of the bifurcation of Andhra Pradesh state into two states, Telangana and residuary Andhra Pradesh (Seemandhra). The act consisted of the aspects of division of assets and liabilities, the boundaries of the proposed new states and status of the capital city Hyderabad after the separation of the state. Common capital and Governor Greater Hyderabad Municipal Corporation area of Hyderabad would be the common capital for the states for a period not more than 10 years. Both states to have a common Governor. Police forces Central government to provide assistance to raise additional forces. New training center for Seemandhra would be established. High Court High court at Hyderabad would be a common High Court till a separate High court is established for Seemandhra. The expenditure is to be allocated on the basis of population ratio. Special development package Central government to make appropriate grants, provide adequate benefits and incentives in the form of a special development package for Seemandhra. This will ensure expansion of physical and social infrastructure.

6 Services of employees For central government employees, an advisory committee would be appointed to draw up guidelines and take up the allocation exercise. For state government employees, district, zonal and multi-zonal cadres falling in one of the successor states are deemed to be allotted to that state; else employees would be allocated based on options. Water resources Energy Higher education New capital Two separate boards would be created by the central government for Krishna and Godavari Rivers to look after administration, regulation, maintenance and operation of notified projects. Existing PPAs would continue; units of APGENCO and assets of APTRANSCO would be divided based on location. Central power would be allotted on actual energy consumption trend. The Government of India shall take steps to establish institutions of national importance in the newly formed state. The Government of India shall establish one AIIMS-type super-specialty hospital-cum-teaching institution. Admissions in higher, technical and medical education would be common for ten years. Quotas under article 371-D would also continue. Central government to provide financial support for creation of a new capital. An expert committee to be constituted by the central government to study various alternatives and make a recommendation within six months.

7 Installed power capacity: ~9,555 MW High Growing economic demand growth GSDP expanded at a compound annual growth rate (CAGR) of 15.2 per cent between and to US$ 77.2 billion. Per capita income improved at a CAGR of 11.7 per cent between and to US$ 1,400. Andhra Pradesh is a leading agricultural state in India. Adequate power generation capacity Most of the coal based power plants are located in the coastal regions due to their connectivity to the ports. As gas production from Krishna Godavari Basin (KG basin) picks up, gas based power plants will generate more power leading to the state to become a power surplus state. A 6,000MW nuclear power plant is to be set up in Srikakulam District. Long coastline A 972-km long coastline provides numerous opportunities for the state to develop a number of ports. Currently has 14 notified non-major ports and one major port. The coastline and ports open opportunities for hydrocarbons, developing LNG terminals, setting up of pharmaceutical, aqua and agri corridors. Advantage Andhra Pradesh Rich in hydrocarbon reserves According to DGH, the state has huge oil and natural gas reserves. The KG basin in the east coast has been categorised as a region with proven commercial productivity of hydrocarbons by DGH. Over 39,000 sq km stretch in Kadapa district has been earmarked by DGH as a potential exploration site for rare natural resources. 2020E Installed power capacity: ~20,000 MW Source: Andhra Pradesh state portal DGH: Director General of Hydrocarbons, GSDP: Gross State Domestic Product

8 Most commonly spoken language is Telugu. Urdu, Hindi, Tamil, Kannada and Oriya are the other languages used. Parameters Capital Andhra Pradesh Hyderabad^ Geographical area (sq km) 160,205 Administrative districts (No) 13 Source: Maps of India Population density (persons per sq km) 308 Andhra Pradesh is located in the southern peninsula of India and has a coast line of 972 km. The state of Andhra Pradesh is bound by Chhattisgarh on the north, Odisha on the northeast, Telangana and Karnataka on the west, Tamil Nadu on the south, and the Bay of Bengal on the east. Visakhapatnam, Vijayawada, Tirupati, Rajahmundry, Guntur, Kakinada, Ongole, Nellore and Kurnool are some of the key cities in the state. Total population (million) 49.4 Male population (million) 24.7 Female population (million) 24.6 Sex ratio (females per 1,000 males) 996 Literacy rate (%) 67.4 Source: Andhra Pradesh state portal ^Share with Telangana for 10 years

9 Parameter Andhra Pradesh All States Source Economy GSDP as a percentage of all states GSDP Average GSDP growth rate (%)* Per capita GSDP^ (US$) 1, ,414.4 Physical Infrastructure Installed power capacity (MW) 9, ,488.3 Wireless subscribers (No)^ 67,192, ,157,975 Broadband subscribers (No)^ 1,342,750** 65,330,000 National highway length (km) 3,144 79,116.0 Andhra Pradesh State Portal, May 2014 & Planning Commission Databook, July 2014 Andhra Pradesh State Portal, May 2014 & Planning Commission Databook, July 2014 Andhra Pradesh State Portal, May 2014 & Planning Commission Databook, July 2014 Central Electricity Authority, as of June 2014 and Business Line citation Telecom Regulatory Authority of India, as of May 2014 Ministry of Communications & Information Technology, as of May 2014 Ministry of Road Transport & Highways, Andhra Pradesh State Portal Major and minor ports (No) Indian Ports Association Airports (No) Andhra Pradesh State Portal, AAI ^For undivided state, *Calculated in Indian Rupee terms from , **As of December 2011, ^Estimates

10 Parameter Andhra Pradesh All-States Source Social Indicators Literacy rate (%) Provisional data - Census 2011 Birth rate (per 1,000 population)^ Investment FDI equity inflows (US$ billion)^ 8.8* SRS Bulletin ( October 2013 Department of Industrial Policy & Promotion, April 2000 to May 2014 Outstanding investments (US$ billion)^ ,414.2 CMIE ( ) Industrial Infrastructure PPP projects (No) 120 1,339 PPP Cell, Andhra Pradesh, March 2014 SEZs (No) Notified as of July 2013, ^For undivided state, PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System, *Data shared by RBI Hyderabad

11 At current prices, Andhra Pradesh s Gross State Domestic Product (GSDP) was estimated at US$ 77.2 billion over GSDP of Andhra Pradesh at current prices (in US$ billion) Between and , the average annual GSDP growth rate was 15.2 per cent*. Growth was mainly driven by industrial and services sectors CAGR 15.2%* Source: Andhra Pradesh state portal *In Indian Rupee terms

12 (E) (E) (E) At current prices, Andhra Pradesh s Net State Domestic Product (NSDP) was estimated at US$ 70.2 billion over Between and , the average annual NSDP growth rate was about 15.4 per cent* NSDP of Andhra Pradesh at current prices (in US$ billion) CAGR 15.4%* Source: Andhra Pradesh state portal *In Indian Rupee terms, E- Estimates

13 Andhra Pradesh s per capita GSDP increased to US$ 1,550.0 during from US$ over GSDP per capita of Andhra Pradesh at current prices (in US$) Average per capita GSDP rose at a CAGR of 14.2 per cent* between and CAGR 14.2%* 1, , , , , ,550.0 Source: Andhra Pradesh state portal *In Indian Rupee terms Per capita calculated based on population growth between 2001 and 2011 census figures

14 (E) (E) (E) Andhra Pradesh s per capita NSDP grew from US$ during to US$ 1,410.1 over NSDP per capita of Andhra Pradesh at current prices (in US$) Average per capita NSDP increased at a CAGR of 14.4 per cent* between and CAGR 1, , %* 1, ,080.8 Source: Andhra Pradesh state portal *In Indian Rupee terms, E- Estimates Per capita calculated based on population growth between 2001 and 2011 census figures

15 Andhra Pradesh s per capita income grew from US$ during to US$ 1,400.0 over Per capita Income of Andhra Pradesh at current prices (in US$) Average per capita income increased at a CAGR of 11.7 per cent* between and CAGR 11.7%* 1, , , ,400.0 Source: Andhra Pradesh state portal *In Indian rupee terms, E- Estimates

16 During , the service sector accounted for 49.7 per cent (US$ 38.4 billion) of GSDP (at current prices), followed by agriculture (27.3 per cent; US$ 21.1 billion), and industry (23.0 per cent; US$ 17.8 billion). The industry sector grew the fastest at a CAGR of 16.2 per cent*, followed by services (CAGR of 15.6 per cent*) and agriculture (CAGR of 14.0 per cent*) between and GSDP composition by sector CAGR* 48.5% 15.6% 49.7% 21.6% 16.2% 23.0% 29.9% 14.0% 27.3% Agriculture Industry Services Source: Andhra Pradesh state portal *In Indian Rupee terms

17 During , total gross area under crop production in Andhra Pradesh was 8.6 million hectares of which 6.7 million hectares was net sown area. Overall production of cereals and millets during stood at 9.4 million tonnes. Major food grains produced in Andhra Pradesh are rice, maize and pulses. Sugarcane, cotton, tobacco and groundnut are some of the other major crops produced in the state. The state has the groundnut rich Rayalaseema area, which produces nearly 90 per cent of the groundnut. This area also produces most of the sugarcane in the state. During , total production of oilseeds in the state was estimated at 2.0 million tonnes. Crop Area under production 000 Ha ( ) Crop production 000 tonnes ( ) Rice Maize NA Cereals & millets Pulses Total food grains NA Groundnut NA Oilseeds Vegetables NA Fruits NA Cotton Fodder crops 66.8 NA Source: Andhra Pradesh state portal NA Not Available

18 During , nearly 50 per cent of the irrigation in the state was dependent on canal water, more than 35 per cent on ground water and more than 10 per cent on tank water. The undivided state has embarked an water projects in the country called Jalayagnam with an estimated cost of nearly US$ 20 billion. This water management program was introduced in 2009 to bring a larger parcel of land in the undivided Andhra Pradesh under irrigation. Currently, out of the 29 major irrigation projects in Seemandhra, 10 are completed and 14 projects are ongoing. Moreover, of the 63 medium irrigation projects, 50 are completed and 11 are ongoing. The completion of the ongoing projects will further help the state to increase penetration of canal water harvesting and irrigate the 10 million acres of arid and dry land in the southern part of the state. Jalayagnam project status - May 2014 Major irrigation projects Numbers Area covered (million acres) Completed Ongoing Contemplated Medium irrigation projects Numbers Area covered (million acres) Completed Ongoing Contemplated Source: Andhra Pradesh state portal

19 Exports from Visakhapatnam Port, one of 13 major ports in India, stood at 25.0 million tonnes during Total exports turnover from Vizag Port (million tonnes) The port has also emerged as the leading port in marine exports in India Marine exports from the port during April to December 2013 stood at US$ 826 million compared to US$486 million in the corresponding period a year earlier. During the period, Vizag s share of seafood exports stood at 23 per cent in terms of value and 22 per cent in terms of dollar realisation. Exports from the port are expected to increase in the near term as it has taken up two major projects to extend the existing container terminal and modernisation & upgradation of the iron ore handling complex. Source: Port of Visakhapatnam

20 The divided Andhra Pradesh will grow as an economic powerhouse as the state s coastal region will attract investment which was earlier concentrated mainly towards Hyderabad. Foreign direct investment in Andhra Pradesh over the last 20 years stood at US$ 1,476.5 million. Majority of the investment was done in coastal Andhra region. The location advantage of the state has helped it to witness increasing investment in the coastal Andhra region over the last few years. This was mainly from manufacturing sectors like pharma, chemicals, mining, petrochemicals, etc. The state has the potential to develop various growth centres along the coastline like Visakhapatnam, Vijayawada, Nellore and Anantapur. Moreover, the proposed Visakhapatnam Kakinada Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) is expected to attract huge investment. 1,800 1, FDI across Andhra Pradesh over (US$ million) 173 1,303 Recently, a commitment was made by the Industrial Development Forum that Andhra Pradesh is expected to receive investment to the tune of US$ million in the next two to three years. Tax holiday, special status and other incentives are anticipated to further boost investment. 0 Rayalaseema Coastal Andhra Source: News article Total FDI in undivided Andhra Pradesh from 1991 to 2010 = US$ 3,014.5 million, Average exchange rate used INR 42.2/US$

21 Road network across the state Recently, the finance minister stated that the master plan for both the projects will be ready soon and development work will start within the proposed timeline. Moreover, the government has also planned to identify important towns and cities in the state and build a network of express highways connecting those important cities. Source: Andhra Pradesh state portal By the end of , the state was connected via 3,144 km of national highways and 42,137 km of other roads. The proposed Chennai Visakhapatnam corridor under the Reorganisation Act will aid development of road projects. The proposed Chennai-Bangalore corridor is anticipated to further support development of road projects in the region. Road type Road length (km) FY National Highways 3,144 Total roads 42,137 Black top and asphalt 38,696 Concrete/metalled/unmetalled 3,441 Source: Andhra Pradesh state portal

22 The state is well connected through the rail network. Visakhapatnam, the largest city in the state, has rail accessibility to nine district headquarters out of 13 in the new state. The city is also well connected to the neighbouring states of Odisha and Chhattisgarh. The state is also planning to form a separate railway zone, namely South Coast Railway, with Vizag as its headquarter. The Union Government has also planned to develop metro rail projects at three locations in the state, including Visakhapatnam, Guntur and Vijayawada. The Visakhapatnam project, estimated to cost US$ million, will develop four important routes that are not well connected currently. Rail network across the state Vizag is proposed to be the headquarter of the zone as the region houses major industrial as well as commercial establishments and is a busy railway junction in terms of passenger and freight traffic. The new zone will consist of Waltair Division of the East Coast Railway (ECoR) as well as Vijayawada, Guntur and Guntakal divisions of South Central Railway. The government has also planned to set up a high speed train between Hyderabad and the new capital city to ease traffic movement between the two states. Source: Maps of India

23 Andhra Pradesh has eight operational airports/air strips at Visakhapatnam, Tirupati, Rajahmundry, Vijayawada, Bobbili, Nagarjuna Sagar and Puttaparthi. Airports across the state Apart from these, Donakonda airport is non-operational (closed) whereas four are under development in Nellore, Kurnool, Ongole and Kadapa. Visakhapatnam, also popular as Vizag, has an international airport, which is under the Navy's command. The state is planning to develop a second runway at Vizag only for commercial operations Moreover, the state is also planning to extend the airport s operating time to 24/7, which is expected to bring more airlines to Vizag. Various international airlines have expressed interest in commencing or increasing existing operations. The relaxation of the timing will also enable various domestic airlines to introduce additional flights in Vizag. This will increase employment opportunities in the region as more industries will come from abroad, bringing investments. Source: Andhra Pradesh state portal, Airports Authority of India

24 Andhra Pradesh has a 972 km long coastline and the second highest cargo handling port. The Visakhapatnam port ranks amongst the top five of 13 major ports in the country. During , it handled 58.5 million tonnes of cargo. Coking coal, iron ore, petroleum products and thermal coal are some of the key products handled by the port. It also has a high volume of container traffic. Other than Visakhapatnam, the state has five more operational ports. Apart from these, seven more ports are under development and three are proposed to be developed. The extension of the existing container terminal and the modernisation and upgrading of the iron ore handling complex will enable the port to increase its cargo handling capacity in the near term. The first project, estimated to cost over US$ 100 million, has been awarded to the Visakha Container Terminal Private Ltd and the second, estimated to cost US$ million, was awarded to Essar Ports Visakhapatnam port traffic (million tonnes) Source: Port of Visakhapatnam

25 As of June 2014, Andhra Pradesh had a total installed power generation capacity of nearly 9,555MW. Installed power capacity (MW) The state has nine hydro power projects under operation and one under development. Moreover, the state has one operational wind power project. 11,639 13,409 15,036 16,095 16,949 17,495 8,176 Most of the coal based power plants are located in the coastal regions because of their connectivity to the ports. 9,555 The state also has three thermal power projects under operation, two projects under development and two projects under construction. Per capita consumption of electricity in Andhra Pradesh stood at kwh during The state is planning to add another 8,400 MW power capacity under the public sector which includes a 600 MW plant at RTPP, Muddanur, 4,000 MW near Vodarevu in Prakasam district, 2,400 MW plant in Srikakulam and a 2,000 MW nuclear power project. Furthermore, an additional 3,000 MW of power generation is planned by private players in the state * Andhra Pradesh Telangana Source: Central Electricity Authority *As of June 2014 based on Business Line citation The setting up of an LNG terminal by Petronet LNG at Gangavaram will make gas available for six gas based power plants, with a capacity of 2,700 MW, which currently produce only 700 MW due to shortage of gas. Taking into consideration all the existing and planned power plants to be operational, total power available in the state is expected to reach 18,000 MW to 20,000 MW in the upcoming years.

26 Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is the agency responsible for the supervision and execution of SEZs in the state. As of July 2014, the state has 17 operational SEZs in the state across diversified sectors which include textiles and apparel, food processing, footwear and leather products, multi-product, pharma, IT SEZs etc. Some of the operational SEZs in Andhra Pradesh Name/Developer Location Primary industry Andhra Pradesh Industrial Infrastructure Corporation Ltd Vishakhapatnam Multi-product, IT/ITeS Brandix India Apparel City Private Ltd Achutapuram, Visakhapatnam Textile Ramky Pharma City Pvt Ltd Mandal, Visakhapatnam Pharmaceuticals Divi s Laboratories Chippada Village, Visakhapatnam Pharmaceuticals Apache SEZ Development India Mandal Tada, Nellore Footwear Hetero Infrastructure Nakkapalli Pharmaceuticals Parry Infrastructure Kakinada Food processing Andhra Pradesh Industrial Infrastructure Corporation Ltd East Godavari IT/ITeS IFFCO Kisan SEZ Nellore Multi product Bharatiya International SEZ Nellore Leather sector Andhra Pradesh Industrial Infrastructure Corporation Ltd Nellore Multi product Source: SEZ: Special Economic Zone

27 Andhra Pradesh has five SEZs with valid in-principle approvals and 42 SEZs with formal approvals, as of July SEZs with valid in-principle approvals Name/Developer Location Primary industry South Coast Infrastructure Development Co of Andhra Pradesh Private Ltd (SCIDCAP) NH-5 between Prakasam and Nellore District Building materials Lepakshi Knowledge Hub Private Ltd Ananthapur Multi-product M/s Drugs & Pharmaceuticals Manufactures Association Nakkapalli Mandal, Visakhapatnam Pharmaceuticals /APIs/formulations M/s Vivimed Labs Ltd M/s Planet SEZ Private Limited Boyapalem, Naruva & Chittivalasa villages, Ranasthalam Mandal, Srikakulam Visakhapatnam Chemicals & pharmaceuticals Petroleum and oil & gas industry Source:

28 Project name Sector Under government Project cost (US$ million) Stage Krishnapatnam Ultra Mega Power Project Energy Central Construction Krishnapatnam Port Ports State Operational Kakinada Deep Water Port Ports State Operational Gangavaram Port Ports State Operational Vijayawada-Gundugolanu Section Roads Central Bidding Six-laning of Gundugolanu Rajamundry Roads Central Bidding Four laning of Cuddappah-Kurnool section Roads Central Construction Machilipatnam Port Development Ports State Construction GVK Jegurupadu Combined Cycle Power Project Energy State Operational IT/ITeS SEZ, Vijayawada IT State 75.0 Operational Jawaharlal Nehru Pharma City, Visakhapatnam Infrastructure State 52.2 Operational Dispensary site at Maddilapalem Urban development State 4.5 Reversion Source: Public Private Partnership in India Database P-P-P: Public-Private Partnership, As of March 2014, Converted using flat exchange rate of INR 60 / USD

29 Two new NIMZs During the tenure of the last central government, the state received in-principle approval from the government for setting up two National Investment and Manufacturing Zones (NIMZs) in Chittoor and Prakasam districts. The state will develop NIMZs as integrated industrial townships, with state of the art infrastructure and land use on the basis of zoning, clean and energy efficient technology, necessary social infrastructure and skill development facilities. They are expected to attract investment of more than US$ 8.0 billion and would have an employment potential of 0.3 million each. New capital city and 10 smart cities The new government is planning to set up the new capital for the state between Vijayawada and Guntur. These fast growing cities (Vijayawada and Guntur) with substantial infrastructure can be transformed into a mega capital city. Moreover, the government plans to develop many mega cities across the state as part of the decentralised development agenda. Industrial corridors The proposed Visakhapatnam-Chennai industrial corridor is expected to attract investment of US$ 16.7 billion and will create more than 50,000 jobs. This will be developed in two or three phases spanning more than 15 years. Moreover, Visakhapatnam has been included in the upcoming Chennai-Bangalore Industrial Corridor. The former will provide a thrust to industrial development across various districts and villages in the state along the stretch of the corridor, whereas the latter will lead to development across Anantapur, Chittoor and Nellore.

30 According to the Telecom Regulatory Authority of India (TRAI), undivided Andhra Pradesh had nearly 67.2 million wireless subscribers and 2.0 million wireline subscribers as of May According to the Department of Telecommunications, Government of India, the undivided state had 4,266^ telephone exchanges and 130,282^ public call offices (PCOs) as of March The overall tele-density in undivided Andhra Pradesh stood at 79.4^ per cent as of May Optical fibre cable networks of BSNL with 44,500^ km, Reliance with 6,000^ km, Bharat with 3,450^ km and Tata with 1,700^ km provide a wide range of communication networks to Andhra Pradesh. As of July 2014, there were 16,161^ post offices in the state. BSNL announced that there will be no charge of inter-state roaming between Telangana and Seemandhra until In 2024 when the licensing of spectrum ends, a new spectrum auction would be conducted for the two states and the norms would be set at that time for inter-state roaming. Airtel is planning to launch 4G services in the states of residual Andhra Pradesh by the end of this financial year with special focus in the cities of Vijayawada and Visakhapatnam. Telecom infrastructure (as of May 2014) Wireless subscribers^ 67,192,201 Wire-line subscribers^ 2,020,044 Broadband subscribers^ 1,342,750* Telephone exchanges^ 4,266** Public Call Offices (PCOs)^ 130,282** Source: Telecom Regulatory Authority of India, Department of Telecommunications, Annual Report , Ministry of Communications & Information Technology, India Post *As of December 2011 **As of March 2012 ^For undivided Andhra Pradesh BSNL: Bharat Sanchar Nigam Limited

31 Andhra Pradesh has a literacy rate of 67.9 per cent, according to provisional data released by Census During *, 7.2 million students were enrolled in 60,659 schools. There were 40,929 primary schools, 9,575 upper primary schools, 9,994 high schools and 161 higher secondary schools. The total number of teachers reached 104,047. In medical education, Andhra Pradesh has 21 medical colleges with eight in the government sector. Andhra Pradesh has 20 state run universities, with 10 in the coastal Andhra region and the other 10 in the Rayalaseema region. Classes Number of schools ( *) (I-V) 40,929 (I-VII/VIII) 9,575 (I-XII) 161 (I-X) 705 (VI-X) 9,289 Course Number of colleges ( ) Number of students enrolled Junior colleges 2, ,762 The State Reorganisation Act has ensured the retention of existing admission quotas in educational institutions for a period of 10 years. In order to provide equal benefits to the students of the newly formed states, the government has given its nod to set up an IIT, an IIM, three central universities, an IISER and an IIIT among other institutes in Andhra Pradesh. B Ed training colleges ,049 Engineering ,177 Pharmacy colleges ,040 MBA colleges ,491 Polytechnics ,980 Source: Commissioner & Director of School Education, Andhra Pradesh state portal *Data as on 30 September 2012

32 By the end of , Andhra Pradesh had 275 allopathic hospitals, 1,021 primary health centres and 25,769 beds. Moreover, the state also had three ayurvedic hospitals and three homoeopathic hospitals. Recently, various super-specialty hospitals are coming up across the state mainly in the coastal area of Vijayawada. The city is anticipated to become the largest destination for medicare in coastal Andhra. Various hospitals are planning to set up operations in the state and some are in the process of expanding their existing facilities. This includes doubling of bed strength by The Krishna Institute of Medical Science and setting up of three hospitals comprising of 800 beds by Apollo Group. Moreover, a central government funded health institute, similar to All India Institute of Medical Sciences, is expected to come up in Vijayawada. The government has already sanctioned US$ 200 million as the first instalment for the purpose and another US$ 48.7 million has been sanctioned for the development of all the hospitals in Krishna district. Apollo Hospital Care Hospital Manipal Hospital Major hospitals Krishna Institute of Medical Sciences Health indicators (estimates) (2010) Birth rate* 17.1 Infant mortality rate** 42.8 Medical facilities ( ) Hospitals 275 Primary health centres 1,021 Dispensaries 13 Regular doctors 5,086 Contract doctors 612 Beds available 25,769 Source: Andhra Pradesh state portal *Per thousand persons, **Per thousand live births

33 There are several sports complexes in the state spreading across Visakhapatnam, Tirupati and other cities. Although cricket and tennis are the major sports, other games are also popular. Visakhapatnam has seven cricket stadiums which are used for Ranji Trophy matches whereas a few of them are also used for one day international matches. The city has a golf course named the East Point Golf Club. The Tirupati temple and Kanakadurga temple makes the state one of the leading religious tourism spots in the country. Moreover, the project for developing the beach corridor from Visakhapatnam to Bhimili is progressing rapidly and tenders have been called for development of RK Beach and Rishikonda. Furthermore, the state s long coastline offers high potential to develop beach resorts that can turn into tourist hotspots. Other revenue generating tourist hotspots of the state include the Buddhist sites in Krishna and Guntur districts and the Chandragiri Fort in Chittoor. Stadiums and sports complexes in Visakhapatnam Aqua Sports Complex Port Trust Golden Jubilee Stadium South Eastern Railway Stadium Police Stadium Indira Priyadarshini Stadium Steel Plant Township Stadium Zinc Stadium GITAM Engineering College Synthetic Tennis Court ACA-Visakhapatnam District Cricket Association's Stadium Golden Jubilee Indoor Stadium Swarnabharathi Indoor Stadium GITAM Indoor Sports Stadium Andhra University Grounds

34 The government is planning to make the state an IT power house in the coming years. According to an announcement made by the Minister for Information Technology in July 2014, Visakhapatnam is set to be developed into the IT capital of the state. Madhurawada, located in the north-east of Visakhapatnam, has already been developed as an IT hub. Various IT firms were allocated land in this area to develop and start their operations while few of them are already operational. Big brands such as IBM, Tech Mahindra and Wipro already operate in Vizag. These include allocation of an SEZ to Wipro, 10 acres to Tech Mahindra & 13 acres to Society for Applied Microwave Electronics Engineering and Research. Apart from Visakhapatnam, cities such as Vijayawada, Tirupati, Kakinada and Anantapur will also be developed into IT hubs Revenue from IT industry (in US$ million) Moreover the city has close to three universities which produce more than 35,000 IT graduates every year. As part of the state government's commitment to transform Vizag into a major IT hub, lands have been allocated to three major companies Vizag Vijayawada Tirupati Kakinada Source: Andhra Pradesh IT department, News articles

35 Proposed ITIRs Andhra Pradesh government is planning to set up Information Technology Investment Regions (ITIR) in Visakhapatnam, Anantapur and Chittoor districts. Visakhapatnam ITIR A detailed report on the proposed Visakhapatnam ITIR, which would spread across 12,000 acres, has been prepared and submitted to the state government and is expected to be implemented over a period of 25 years in two phases. Tirupati/Anantapur/ Nellore ITIR Another ITIR is proposed to be set up across 4,000 acres of land near the international airport at Tirupati, 4,000 acres of land at Anantapur, near Karnataka border and another 4,000 acres at APIIC s industrial corridor of Chittoor-Nellore. Investment potential of US$ 40.4 billion from Vizag The state expects the Visakhapatnam ITIR project to have an investment potential of US$ 7.5 billion and revenue of US$ 6.2 billion. Direct and indirect employment generated from the project is estimated at 0.43 million and 1.71 million, respectively, once it is fully functional. Source: News articles

36 IT exports from Andhra Pradesh stood at nearly US$ million and employ nearly 4,000 people. In order to increase the contribution of IT export and employment from Seemandhra, the state has drafted a guideline to address the key determinants of successful growth in the IT and Electronics sectors. Parameter Contribution from Seemandhra Exporting units registered with STPI 27 Export turnover of STPI units (US$ million) Employment ('000s) 4 Major indicator Goal to be achieved by 2020 Make all government to citizens and government to business services available online and on mobile Share in the national IT exports To attain number one position in etaal by 2017 and maintain it through per cent Investments in IT US$ 2 billion by 2017 & US$ 5 billion by 2020 Investments in electronics manufacturing US$ 5 billion by 2017 and US$ 10 billion by 2020 Employment created in electronics and IT 0.3 million by 2018 and 0.5 million by 2020 Broadband penetration Gigabit to all gram panchayats by 2017 and to all villages by 2020 Source: Andhra Pradesh IT vision

37 Tech Mahindra Tech Mahindra, part of Mahindra Group conglomerate and headquartered at Mumbai, provides information technology, networking technology solutions and business support services to the telecommunications industry. The company, having operations in Visakhapatnam, merged with Mahindra Satyam on March 21, 2012 and together the new entity serves 540 corporate customers across 49 countries. The company reported a revenue of US$ 3.1 billion during the financial year IBM IBM is a leading global IT services and solutions provider, with operations in over 170 countries across the world. Products offered by the company s Indian operations include software, storage, systems and servers and semiconductors. IBM has been present in India since Since inception, IBM in India has expanded its operations considerably, with regional headquarters in Bengaluru and presence in over 200 cities and towns across the country; including a global delivery centre in Visakhapatnam. Wipro Established in 1945, Wipro ventured into the IT services industry in the 1990s. The company was among the pioneers in developing the Offshore Development Centre concept in India. In order to focus on core IT business, it separated its non-it businesses into a separate entity named Wipro Enterprises Limited with effect from 31 March Currently, the former company provides information technology, consulting and outsourcing services to over 900 clients across more than 175 cities across 6 continents. In 2012, the company opened a delivery centre in Vishakhapatnam. The company has an employee base of 146,053 and posted revenues of US$ 7.3 billion for the financial year ended Mar 31, 2014.

38 Andhra Pradesh is home to many global and national pharma players; various companies have set up their manufacturing hubs in Visakhapatnam and Srikakulam districts. Few of the national players to set up their manufacturing hubs in the state include Dr Reddy's Laboratories, Aurobindo Pharma, Hetero Drugs etc. Parawada, Nakkapalli, Pydibhimavaram and Ranasthalam are the largest pharma manufacturing centres in the state that have attracted several investments, particularly in bulk drug sector. While Parwada and Nakkapali are located in Vishakapatnam, the other two are located in Srikakulam. Jawaharlal Nehru Pharma City, an integrated industrial park located in Visakhapatnam, has various bulk drug manufacturers, pharmaceutical companies and fine chemical manufacturers, with nearly 45 pharmaceutical companies. The state provides ample opportunities for pharma companies due to availability of ports, pharma city, international airport, large parcels of land for expansion and good effluent treatment facilities. Some of the key players Eisai Granules India Hospira Dr Reddy's Laboratories Aurobindo Pharma Mylan Omnichem Source: News articles Various global pharma companies have already set up their manufacturing hubs across the state which include Japanese and US giants such as Eisai, Ajinomoto, Mylan and Hospira.

39 Aurobindo Pharma Ltd Dr Reddy's Laboratories Mylan Laboratories Ltd Founded in 1986, Aurobindo Pharma is an India based pharmaceutical manufacturing company. The company, which manufactures generic pharmaceuticals and active pharmaceutical ingredients, markets these products across 125 countries. The company has a manufacturing plant in Vizag. During , the company generated revenues of US$ 1.3 billion. Incorporated in 1984, Dr Reddy's Laboratories manufactures and markets a wide range of pharmaceuticals across domestic and overseas markets. The company s products include generic formulations, APIs, bio-similars etc. It has expanded its presence across the globe through steady organic growth, partnerships and acquisitions. During , the company generated revenue of US$ 2.2 billion. Mylan Laboratories Ltd (formerly known as Matrix Laboratories Ltd) is a subsidiary of USbased Mylan Inc and has one USFDA-approved facility in Visakhapatnam. It is one of the world s largest manufacturers and suppliers of active pharmaceutical ingredients (APIs) for a wide range of therapeutic categories including antibacterials, central nervous system agents, antihistamine/anti-asthmatics, cardiovasculars, antivirals, antidiabetics, antifungals, proton pump inhibitors and pain management drugs. Granules India Ltd Granules India is a Indian pharmaceutical company with manufacturing facilities spreading across India and China. The company serves customers across 60 countries with four facilities in India, which includes Vizag and a fifth facility in Jingmen, China. The company recently acquired Auctus Pharma and is looking towards further expansion of its business through both organic and inorganic routes.

40 Andhra Pradesh produces medium grade and superior long staple varieties of cotton. During , the state produced nearly 2.8 million bales (170 kg each) of cotton. Andhra Pradesh has emerged as a large textile processing centre. There are nearly 100 mills in the state, with coastal Andhra having a lion s share. Few of the major cotton producing districts in the state include Vizianagaram, East Godavari, Guntur, Prakasam and Kurnool. The undivided Andhra Pradesh government has identified the textile sector as one of the long term growth engines. To utilise the potential of the sector, the government has established five apparel export parks (AEPs) and seven textile parks. It has proposed to establish a few more AEPs and textile parks in the state. Handloom and textile exports for undivided Andhra Pradesh (in US$ million) CAGR 27.6%* There are over 150 spinning mills including a number of 100 per cent export oriented units with state-of-the-art machinery; producing cotton, synthetic and blended yarns in the undivided state. Between April 2006 and February 2012, 55 handloom clusters were sanctioned under the Integrated Handlooms Development Scheme in the Seemandhra and Telangana regions Source: Andhra Pradesh Socio-Economic Survey , News articles, *In Indian Rupee terms

41 The presence of rich climatic and soil conditions is expected to make Seemandhra a major agricultural belt. Few of the leading crops produced in the state include rice, chilly, oilseeds, cotton, pulses and gram. Seafood exports from Andhra Pradesh (in US$ million) The state s Krishna, Guntur, East and West Godavari districts have good irrigation facilities which help it to produce a large amount of rice. CAGR 35.5% During , out of a total cropped area of 8.6 million hectares, 4.6 million hectares was utilised for food grain production. Around 3.2 million hectares was used for producing cereals & millets, out of which 2.8 million hectares was used to produce rice The districts of Nellore, Krishna and Guntur are very fertile, with above average production of cereals, pulses, groundnut and cotton. The state produced 6.9 million tonnes of rice, 1.1 million tonnes of pulses, 2.0 million tonnes of oil seeds and 1.5 million tonnes of cotton during the financial year * Source: Vizag Industrial Scan Industrial newspaper, Andhra Pradesh state portal, *Till January 2014 The central government is planning to develop Tirupati or Chittoor as agro-based and food-processing hubs and Visakhapatnam as the fisheries and sea-food hub.

42 Mondelez India Foods Ltd Cargill India Pvt Ltd ITC Andhra Pradesh Dairy Development Cooperative Federation (APDDCF) Mondelez India Foods Ltd is part of Mondelēz International, Inc. It operates in five categories chocolate confectionery, beverages, biscuits, gum and candy. The company s key brands in India include Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, Éclairs, Bubbaloo, Tang and Oreo. The company is planning to launch a Cadbury chocolate production plant in Chittoor district with an estimated cost of US$ million and would commence production from mid Cargill maintains a number of businesses in India, with operations including handling and processing of a wide range of products such as refined oils, grain and oilseeds, sugar, cotton and animal feed. Cargill s presence in India has been growing since it began a joint venture (JV) operation in In 2006, it entered into a JV and subsequently took over a leading shrimp feed manufacturing farm in Rajahmundry. It has also entered into a JV with EID Parry for a sugar refinery at Kakinada in the state. ITC is a large Indian business conglomerate with diverse business interests including agrifoods, paper, fast moving consumer goods, lifestyle and retailing and hotels. Over , its revenue reached around US$ 5.9 billion. A substantial part of ITC s agri-business is located in Andhra Pradesh. The company has a unit in Anaparti and Chirala, and a research centre in Rajamundhry. The company also runs its innovative internet based e-choupal initiative in the state for the benefit of farmers. APDDCF runs 12 dairy plants and manufactures milk products under the Vijaya brand. These plants together have a production capacity of 2,437 thousand litres per day. Products include butter, ultra-high-temperature (UHT) milk, milk powder, ghee, flavoured milk, khoya, kulfi and processed cheese. It is one of the 15 dairy cooperatives operating under the National Dairy Development Board (NDDB).

43 Andhra Pradesh is known for its pristine beaches, sacred places of worship, lush green forests, spicy cuisine and hospitable people. The state continued to witness increase in domestic tourist arrivals over the last few years. Number of tourist increased to 115 million in 2012 from million recorded in Most of the tourist destinations in the state are concentrated in Visakhapatnam, Simhachalam, Araku and the beaches of East and West Godavari. Tirupati and Bhadrachalam are major temple destinations attracting a large chunk of travellers. The Tourism Corporation has already initiated the process and is working towards the development of a beach corridor from Visakhapatnam to Bhimili which includes the RK Beach and Rishikonda. Arrival of domestic tourists in Andhra Pradesh (in million) Few of the prospective locations that can be developed for tourism include the backwaters of Konaseema, beach resorts along the long coastal line, the Buddhist sites in Krishna and Guntur districts and the Chandragiri Fort in Chittoor Moreover, wild life tourism can be developed in Pulikat Lake in Nellore, the Kolleru Lake in Krishna and West Godavari districts. Source: Ministry of Tourism, Government of India; News articles

44 According to the Director General of Hydrocarbons (DGH), Andhra Pradesh has huge oil and natural gas reserves. The state s Krishna-Godavari basin, spread over an area of nearly 52,000 sq km, has a total hydrocarbon resource base of 1,130 million metric tonnes. Andhra Pradesh is the second Indian state, after Gujarat, to enter the oil and gas exploration and production segment through bids for oil and gas blocks under the central government s New Exploration Licensing Policy (NELP). The Andhra Pradesh government decided to enter the oil and gas exploration and development sector and set up a special purpose vehicle (SPV), the Andhra Pradesh Gas Infrastructure Corp Limited (APGIC), as a joint venture between two state owned entities. The infrastructure provider for industries in the state, Andhra Pradesh Industrial Infrastructure Corporation (APIIC), owns 51.0 per cent in the SPV and the remaining is held by AP Genco. APGIC secured four blocks under auction as part of a consortium led by ONGC. APGIC owns 10 per cent in the consortium, while other partners ONGC, British Gas and Oil India hold 40 per cent, 35 per cent and 15 per cent, respectively. Recently, the DGH has earmarked a stretch of more than 39,000 sq km in Kadapa district in Rayalaseema region as a potential exploration site for natural resources. This region is most likely to be lined up for bidding in the upcoming rounds of NELP. Source: Ministry of Petroleum and Natural Gas, News articles

45 Recently, the Visakhapatnam-Kakinada Petroleum, Chemical and Petrochemical Investment Region Special Development Authority (VK- PCPIR SDA) has released the final draft master plan and zonal development plans with the land use proposals. The PCPIR project would boost refining, petrochemicals and chemical industries and also the manufacturing sectors in the state. The project will bring investment in the state and will help to boost trade, revive exports, develop infrastructure and increase employment. HPCL is considering the setting up of a greenfield 15 mmtpa refinery-cum-petrochemical complex in the region which would require investments to the tune of US$ billion. Key features of PCPIR The investments generated in the PCPIR are estimated to be around US$ 72.3 billion. Total area 640 sq km; Processing area 270 sq km The project is said to have an employment generation capacity of 1.2 million As per the latest update, total committed investments stood at US$ 57.2 billion The petroleum and petrochemical sector accounted for around 63 per cent of total committed investment. Major investors in PCPIR Moreover, the company is about to expand capacity at its refinery in Visakhapatnam from the current 8.3 mmtpa to 15 mmtpa over 3 to 4 years with an investment of US$ 0.9 billion. Source: Andhra Pradesh PCPIR MMTPA: Million Metric Tonnes Per Annum

46 Seemandhra is rich in mineral resources which include manganese, limestone, mica, steatite, copper, graphite etc. Manganese ore is located across Nellore, Prakasam, Vizianagaram and Srikakulam, mica is found around Krishna, Nellore, Visakhapatnam etc whereas limestone is found around Kadapa district. During , the state generated annual mineral revenues of US$ million compared to a target revenue of US$ million. The total mineral revenues comprised of US$ 58.7 million from major minerals and US$ 90.8 million from minor minerals. Seemandhra region has abundant reserves of uranium in Tumalapalli village located in Kadapa. According to a study conducted by the Atomic Energy Commission of India, the mine is expected to have the largest reserves of uranium in the world. The Government of India has started exploration of sizable uranium deposits in YSR districts in Andhra Pradesh through M/s. Uranium Corporation India Ltd, a public sector undertaking. Minerals Manganese ore Mica Steatite/talc Copper Graphite Availability across districts Nellore, Prakasam, Vizianagaram and Srikakulam Krishna, Nellore, Chittoor, Ananthapur, West Godavari, Visakhapatnam, Guntur, Chittoor, Ananthapur,and West Godavari Ananthapur, Chittoor, Cuddapah and Kurnool Cuddapah, Guntur, Kurnool, Nellore and Prakasam East Godavari, West Godavari, Visakhapatnam and Srikakulam Source: Indian Mineral Scenario States, Ministry of Mines website,

47 Leather The state is a major producer of hides and skins. Majority of the leather production is done in the Nellore region. The government provides financial assistance in the form of investment grants to the extent of 30.0 per cent of cost of plant and machinery for small scale industries (SSI) and 20.0 per cent of cost of plant and machinery for other units, subject to a ceiling of US$ 120,000 for technology upgradation or/and expansion. The state government plans to promote a few more leather clusters across the state for providing basic infrastructure for artisans and small and medium enterprises. Moreover, the government is also planning to set up a leather complex in Kothapatnam, close to Krishnapatnam port and 160 km from Chennai and Ennore Ports. Gems and Jewellery The state produces a wide array of precious and semi-precious stones as well as pearls. Gold is mostly available across Anantpur, Chittoor and Kurnool districts of the state. During the year , the government has identified new gold deposit areas in the northern part of Ramagiri-Penakacherla of Anantapur district Diamond is mostly found at Cuddapah, Anantapur, Kurnool, Krishna, Godavari and Guntur districts.

48 Hospitality, leisure and entertainment Being a major tourist hub in the country, the state is making rapid strides in the hospitality industry. With various corporates planning to have their footprint in the state, it will help in the development of the industry. The industry will get a further boost once the central government finalises the new capital for the state. In order to support the growth of the industry, APTDC is planning to implement various projects which include the introduction of cottages, jetties, houseboats in Krishna and Godavari rivers. Some of the other projects of the corporation include the Visakhapatnam-Bheemli beach corridor project, the Kalingapatnam temple circuit, a beach resort at Chintapalli in Vizianagaram and a budget hotel at Arasavalli, etc. Steel The state also produces steel from its Visakhapatnam Steel Plant The company exports steel products to Japan, Germany, United States, Singapore, Dubai, Australia and various South American countries Apart from the plant, the government is planning to set up a public sector steel plant (Steel Authority of India) in Kadapa. The company will examine the feasibility of establishing an integrated steel plant in the location within six months from the appointed date. APTDC: Andhra Pradesh Tourism Development Corporation

49 Andhra Pradesh is the first state in the country to have enacted the Industrial Single Window Clearance Act No 17 of The Act made it compulsory for new industries to register with the single-window to obtain clearances quickly. It also simplified procedures for getting industrial clearances. Committees were constituted at district and state levels to communicate to the applicant the status of their clearances. It has set time slots for issuing clearances and incorporated a provision for deemed approval after the expiry of the time limit. District level committees can clear investments not exceeding US$ 219,442. State level committees can clear those exceeding US$ 219,442. Above the district and state level committees is an empowered committee headed by the Chief Secretary of the state government, who reviews and monitors disposal of applications. Overall, a State Board under the chairmanship of the Chief Minister oversees the progress of the scheme. The maximum time taken to issue clearance of applications at all stages is 45 days. Violation of the provisions of the Act made either through self-assessment or otherwise would invite a penalty of US$ 109 in the first instance and US$ 219 in the second instance.

50 Corporations under Industries and Commerce Department Andhra Pradesh Industrial Development Corporation (APIDC) Andhra Pradesh Industrial Infrastructure Corporation (APIIC) Andhra Pradesh Mineral Development Corporation (APMDC) Andhra Pradesh State Finance Corporation (APSFC) Andhra Pradesh State Trading Corporation (APSTC) Andhra Pradesh State Handloom Weavers Co-operative Society Limited (APCO) Leather Industries Development Corporation of Andhra Pradesh (LIDCAP) Andhra Pradesh Handicrafts Development Corporation (APHDC) Andhra Pradesh Khadi & Village Industries Board (KVIB)

51 Agency Andhra Pradesh Industrial Infrastructure Corporation Department of Industries and Commerce Contact information 6 th Floor, Parisrama Bhavan Fateh Maidan Road, Basheerbagh Hyderabad Phone: , Fax: , hyd@apiic.in Website: Industries and Commerce Department 2 nd Floor, D Block, Room No-348A Secretariat Hyderabad Phone: Fax: secy_inds@ap.gov.in Website:

52 S No Approvals and clearances required Respective departments of state Estimated time 1 Registration, Industrial Entrepreneurs Memorandum (IEM), Industrial Licenses Registrar of Firms 7 days 2 Allotment of Land/Shed in Industrial Estates or Industrial Areas Andhra Pradesh Industrial Development Corporation 7 days for up to 1,000 sq m 21 days for above 1,000 sq m 3 Acquisition and alienation of government lands Chief Commissioner of Land Administration (CCLA) 45 days Panchayat Raj Department 4 Site and Building Plan Approval 5 Change of land use Urban Development Authority Town and Country Planning Municipality Urban Development Authority Town and Country Planning Municipality 7 days 45 days Source: Commissionerate of Industries, Government of Andhra Pradesh

53 S No Approvals and clearances required Respective departments of state Estimated time Green 7 days 6 Consent for establishment under Pollution Control Orange AP Pollution Control Board 21 days Red 45 days Green 7 days 7 Consent for operation under Pollution Control Orange AP Pollution Control Board 21 days Red 45 days 8 No-Objection Certificate for Fire Safety Fire Services Department 15 days 9 Permission for Establishment of Distillery 30 days 10 Licence for possession and use of Rectified Spirit Excise Department 7 days 11 Licence for possession and use of Denatured Spirit 7 days 12 VAT/CST registration Commercial Taxes Department 7 days Source: Commissionerate of Industries, Government of Andhra Pradesh

54 S No Approvals and clearances required Respective departments of state Estimated time 13 Power feasibility 7 days Power distribution companies 14 Power connection 23 days 15 Approval of factory plans 7 days Factories department 16 Factory license 7 days 17 Sanction of water supply Vijayawada Municipal Corporation, 7 days 18 Water connection Visakhapatnam Industrial Water Supply Company 23 days 19 Permission to draw water from rivers and/or public tanks Irrigation department 30 days Source: Commissionerate of Industries, Government of Andhra Pradesh

55 Parameter Cost estimate Land price (US$ per sq m) 19.8 to Labour cost (minimum wages per day) US$ 1.2 to US$ 7.9 Commercial Lease rent (US cents per sq ft per month) 15.2 to Electricity (US cents per kwh) Commercial: 8.0 to 18.7 Industrial: 7.6 to 12.5 Residential rent (US cents per sq ft per month) 4.7 to 29.4 Five-star hotel room (US$ per night) 60 to 92 Water cost (US$) Industrial (Visakhapatnam): 0.37 per 1,000 litres *Residential: 2.58 to 3.68 per annum from Household Service Connections Source: Vijayawada Municipal Corporation, Visakhapatnam Industrial Water Supply Company, Property Sites, News articles, Travel Sites

56 Andhra Pradesh Solar Power Policy Objectives To encourage, develop and promote solar power generation in the state with a view to meet growing demand for power in an environmentally and economically sustainable manner. To attract investment in the state for the establishment of solar power plants. Read more Electronic Hardware Policy Objective To provide special incentives and facilities for the electronic hardware sector in line with the present ICT policy. The policy would cover areas such as industrial electronics, communication & broadcast equipment, computers & peripherals, and strategic electronics & components (semiconductors, solar & displays). Read more Food Processing Policy Objective To provide a special focus to the food processing industry by extending the benefits for five years from April 2010 to March The policy would cover areas such as horticulture, agriculture, animal husbandry, fisheries, agro food processing industries and allied industries. Read more

57 Information and Communications Technology (ICT) Policy Objective To make Andhra Pradesh one of the fore runners in the IT sector in the country The objective would be achieved through the following initiatives: Provision of congenial, industry friendly and proactive climate for IT companies to locate, grow and sustain their operations in a most competitive and hassle-free environment. Creation of employment opportunities for the educated youth of all sections of the society across regions. Achieving higher levels of exports, resulting in enhanced productivity and augmentation of GSDP To spread IT to every nook and corner of the state. Leverage IT as a tool for the socioeconomic development of the state. Read more Industrial Investment Promotion Policy (IIPP) Objective To build a strong and vibrant industrial economy that spins off large capital formation in the state and advances inclusive development of all sections of the population and industry that creates increasing employment opportunities, and raises wage incomes to higher levels through skill upgradation to improve the quality of life of citizens of the state. Read more

58 Tourism Policy 2010 Objectives To position the state competitively for attracting private sector investments in the tourism and hospitality sectors. To target incentives to the private sector better as per the state government's priorities in terms of geographical areas and tourism products. To focus on maximum generation of employment in the sector by the development of human resources through capacity building. Read more Biotechnology Policy 2001 Objective To undertake a detailed inventory evaluation of bio-resources in the state to encourage research and development (R&D), develop high quality infrastructure and provide special incentives to the biotech industry. Read more

59 Average exchange rates Year INR equivalent of one US$

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