TELANGANA AUGUST THE 29th STATE OF INDIA. For updated information, please visit

Transcription

1 1

2 Executive Summary... 3 Advantage State Telangana Vision Telangana An Introduction Budget Infrastructure Status Business Opportunities Doing Business in Telangana State Act & Policies.47 2

3 EXECUTIVE SUMMARY Economic growth driven by service sector Hyderabad The IT hub of the state Education received major proportion in annual budget At current prices, Telangana s GSDP was estimated at US$ 71.1 billion over Services sector is the major contributor in the GSDP of Telangana. During , services sector accounted for 57.1 per cent share in the overall GSDP. The growth in the total exports of IT and ITeS products in Telangana is higher than India s IT and ITeS exports by 2.7%. Hyderabad accounts for a majority of the share in the exports of IT products in the state. During , export of IT products of Telangana was US$ billion which reflects a growth of 15.7% as compared to previous year. In , overall budget of US$ 8,688.5 million has been allocated to Telangana. This witnessed a growth of 7.68 per cent as compared with budget. Education remains one of the major sectors in terms of budget as it received a budget of US$ million. Promoting tourism & historical past Dynasties such as Sathavahanas, Chalukyas, Kakatiyas, Mughals, Qutubshahis and Asafjahis have ruled the state. This has ensured a rich historical legacy. In 2014, the state government proposed setting up a separate company named Telangana State Tourism Development Corporation Limited (TSTDC) to promote tourism. Source: Telangana State Statistical Year book,2015 3

4 ADVANTAGE: Rich labour pool Growing economy Growing demand and improving infrastructure Telangana s GSDP grew at a CAGR of 13.5 per cent between and The state government plans to build more airports in the state to improve connectivity. Availability of readymade capital Advantage Telangana Telangana accounts for easy access to capital along with infrastructure which is benefiting the state. Majority of the multinational companies holds production base in Hyderabad. Information technology and pharmaceutical sectors are the fastest growing sector of the state and driving the economic development of Telangana. Majority of the prominent educational universities and institutions Telangana are located in Hyderabad. These institutions provides a massive pool of labour which acts as a catalyst in the development of the state. The state government has announced scholarships to attract more youth to these institutions. Policy and institutional support Government has introduced The Telangana Solar Power Policy 2015 for the promotion of solar energy in the state. Telangana government has also introduced The New Industrial Policy 2014 for the industrial development. Source: Telangana State Statistical Year Book, 2015 GSDP: Gross State Domestic Product 4

5 VISION To develop Hyderabad as a slum free city. Effective implementation of welfare schemes. Plans to announce industrial policy to encourage investments in state. Setting up of faster clearances, a single window system. Quality of life of people In next three years, Telangana is expected to be developed as a power surplus state Ensure people centric, transparent and corruption free development. To take steps to eradicate corruption. Power Promoting investments Governance Vision Waiver of agricultural loans up to Rs 1 lakh. Technological advancement in agriculture Government to encourage research in agricultural universities. Agriculture Law & order Promoting research Aim to make Telangana the Seed Bowl of India. Telangana is highly suitable for the growth of seeds. Endorsing greenhouse technology and pilot projects. Infrastructure No negotiation on maintaining law & order in the state. Encouraging people friendly police officials. Installing CCTV cameras for better vigilance. Hyderabad to have most advanced infrastructure facilities. To have two new airports in Hyderabad, near Shamirpet, Jawaharnagar and Ghatkesar. Source: Telangana Government 5

6 FACT FILE Mahaboobnagar, Ranga Reddy, Hyderabad, Medak, Nizamabad, Adilabad, Karimnagar, Warangal, Khammam and Nalgonda are the 10 districts of Telangana. Hyderabad, Secunderabad and Warangal are the key cities in the state. Source: Maps of India In June 2014, Telangana was introduced as the 29th state of the India, Hyderabad is the capital of the state. Telangana is surrounded by Andhra Pradesh from the south and east end, Maharashtra and Karnataka from the west, and Odisha and Chhattisgarh from the north end. Telugu is the generally spoken language in the state. Hindi, Urdu and English are also usually spoken. Parameters Telangana Capital Hyderabad Geographical area (sq km) 114,840 Administrative districts (No) 10 Population density (persons per sq km) 307 Total population (million) 35.2 Male population (million) 17.7 Female population (million) 17.5 Sex ratio (females per 1,000 males) 988 Literacy rate (%) 66.5 Source: Population Census 2011, Telangana State Statistical Abstract, May

7 IN FIGURES (1/2) Parameter Telangana All states Source Economy GSDP as a percentage of all state s GSDP Directorate of Economics & Statistics of Telangana, Central Statistics Office GSDP growth rate (%) Directorate of Economics & Statistics of Telangana, Central Statistics Office Per capita GSDP (US$) 1, , Directorate of Economics & Statistics of Telangana, Central Statistics Office 9,469.86** 272, Central Electricity Authority, as of May ,578,461^*** 973,347,094 Telecom Regulatory Authority of India-April 2015 Broadband subscribers (No) 4,810,000^* 100,760,000 Telecom Regulatory Authority of India-April 2015 National Highway length (km) 2,592 92, National Highway Authority of India April * 132 Airports Authority of India Physical Infrastructure Installed power capacity (MW) Wireless subscribers (No) Airports (No) *International operational airport ^For undivided State, *As of March 2014, **As of June 2015, ***As of May

8 IN FIGURES (2/2) Parameter Telangana All states Source Literacy rate (%) Census 2011 Birth rate (per 1,000 population)^ SRS Bulletin, September 2014 FDI equity inflows (US$ billion)^ 10.01^ Department of Industrial Policy & Promotion, April 2000 to March 2015 Outstanding investments (US$ billion)^ ,414.2 CMIE ( ) PPP projects (No) 60 1,409 DEA, Ministry of Finance, Government of India SEZs (No) Notified as of March 2015, Ministry of Commerce & Industry Social Indicators Investment Industrial Infrastructure ^For undivided state, PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System 8

9 ECONOMIC SNAPSHOT GSDP At current prices, Telangana s GSDP was estimated at US$ 71.1 billion in GSDP of Telangana at current prices (in US$ billion) Between and , the average annual GSDP growth rate stood at 13.5 per cent. CAGR 13.5% Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office 9

10 ECONOMIC SNAPSHOT NSDP At current prices, Telangana s net state domestic product (NSDP) was estimated at US$ 62.7 billion in NSDP of Telangana at current prices (in US$ billion) Between and , the average annual NSDP growth rate was about 13.4 per cent. CAGR 13.4% E E E E E Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office 10

11 ECONOMIC SNAPSHOT PER CAPITA GSDP Telangana s per capita GSDP increased to US$ 1,714.3 during from US$ 545 over GSDP per capita of Telangana at current prices (in US$) Average per capita GSDP rose at a CAGR of 12.1 per cent between and CAGR 12.1% 1, ,714 1,064 1, E E E E E ,602 1,568 1,582 Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office 11

12 ECONOMIC SNAPSHOT PER CAPITA NSDP Telangana s per capita NSDP grew from US$ 484 during to US$ 1,513 over NSDP per capita of Telangana at current prices (in US$) Average per capita NSDP increased at a CAGR of 12.1 per cent between and CAGR 12.1% 873 1, ,306 1,397 1,382 1,397 Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office 12

13 ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP At a CAGR of 14.1 per cent, services has been the fastest growing sector among agriculture, industry and services from to Percentage distribution of GSDP (Current prices) CAGR The industry sector increased at a CAGR of 12.1 per cent between and , followed by agriculture (CAGR of 13.5 per cent). In , the services sector contributed 57.1 per cent to the state s GSDP at current prices. It was followed by the industry sector (25.0 per cent) and agriculture sector (17.9 per cent). 53.8% 14.1% 28.3% 12.1% 17.9% 13.5% Agriculture 57.1% 25.0% 17.9% Industry Services Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office 13

14 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION Telangana is primarily a rain fed state and experiences irregular distribution of rain. As of 2013, the state is expected to be a leading producer of cotton, paddy and maize, with 81 lakh hectares of area under cultivation of kharif crops. During , maize accounted for 6.6 lakh hectares of cultivation areas, whereas the cultivation area for pulse was 6.6 lakh hectare. As of 2013, the total area under coarse grains is 5.50 lakh ha by Telangana alone whereas the combined state has the area about 7.46 lakh ha under coarse grains. Thus, after the divergence, the state is expected to grasp a leading position in the production of pulses and coarse grains. Annual production of key crops Annual production ( 000 tones) Crop Rice 6,622 6,475 Cereals & millets 10,277 NA Pulses Oil seeds 881 NA 4,265 1,368 Cotton Source: Telangana State Statistical Abstract May 2015, News articles, Ha: Hectare NA: Not Available 14

15 ECONOMIC SNAPSHOT IRRIGATION...(1/2) The major sources for water for irrigation purpose in the state are Godavari and Krishna Rivers and branches. Telangana also uses water from tanks and ponds for irrigation. As of , the government of Telangana has planned to increase the utilisation rate of the Godavari river up to thousand million cubic feet. For the similar year, the utilisation rate of the Krishna river has been planned to increase to 298 thousand million cubic feet. This plan also includes flood waters in Krishna Basin. In order to achieve an irrigation potential of lakh acres, the state government has planned to accomplish all the major and medium irrigation projects in a organised manner. During , an area of 37,300 acres of irrigation potential was created and 19,700 acres of irrigation potential was utilised under minor irrigation, with an expenditure of US$ million. Telangana witnessed a growth of 23.74% in terms of gross irrigated area in as compared to The gross irrigated area of the state grew from lakh hectares (201213) to lakh hectares ( ). For the same period of time net irrigated area has witnessed a growth of 29.03%, which increased to lakh hectare in from lakh hectare in Irrigation Projects status ( ) Major irrigation projects Numbers Completed 10 Ongoing 8 Contemplated 8 Medium irrigation projects Numbers Completed 33 Ongoing 4 Contemplated 14 Source: Telangana State Portal 15

16 ECONOMIC SNAPSHOT IRRIGATION.(2/2) Major & Minor Irrigation Schemes and Projects being planned by Telangana Schemes and Projects Salient features To make available drinking water to Hyderabad from Krishna river Palamuru-Ranga Reddy Lift Irrigation Scheme Nakkalagandi Project Irrigation of 7 lakh acres in Mahabubnagar, 2.7 lakh acres in Ranga Reddy and 0.3 lakh acres in Nalgonda districts. This can be done by the lifting of 70 thousand million cubic feet of water from the Krishna River. With an aim to irrigate area of 3.41 lakh acres in Nalgonda and Mahabubnagar districts as these districts are affected by fluoride and drought conditions. Source: Telangana State Portal 16

17 BUDGET In , overall budget of US$ 8,688.5 million has been allocated to Telangana. This witnessed a growth of 7.68 per cent as compared with budget. Sectors Annual allocation (US$ million) Sectors Annual allocation (US$ million) Agriculture and Allied Services Housing Rural Development 1,092.1 Urban Development Irrigation 1,408.9 Information & Publicity 16.6 Energy Welfare of SC,ST,BC & Minorities 1,899.6 Industry and Minerals Labour and Employment 10.0 Transport Social Security & Welfare Science, Technology and Environment General Economic Services Nutrition (Women & Child Welfare) Education, Sports, Art & Culture Medical & Public Health Water Supply & Sanitation Source: Telangana State Portal, Department of Finance, Assumed exchange rate of 1 US$ = INR for

18 PHYSICAL INFRASTRUCTURE ROADS Of the total road length in the state, 17,076 km of roads are of single lane, 772 km are of intermediate lane, 7,357 km are of double lane and the remaining are of 4lane and above. An amount of US$ 62.3 million has been sanctioned for road projects in the budget of Road type Source: Maps of India Telangana is surrounded by Andhra Pradesh from the south and east end, Maharashtra and Karnataka from the west, and Odisha and Chhattisgarh from the north end. As of 2015, state was home to 16 national highways with total length of 2,592 km. Road length (km) National highways 2,592 State highways 3,512 Major district roads 12,079 Other district roads 9,014 Total 26,837 Source: Roads & Buildings Department, Government of Telangana, Budget The overall road length for Telangana state was around 26,837 km as of

19 PHYSICAL INFRASTRUCTURE RAILWAYS Telangana is well-connected to other parts of the country through the rail network. During , the state had a railway network of 1,753 km having 228 railway stations. As per the state annual plan, the Government is planning to build rapid rail connectivity in the state. The rapid rail line will connect the capital of Telangana to the new capital of Andhra Pradesh. As per Budget , a total amount of US$ 69.4 million has been sanctioned for Hyderabad Metro rail project and US$ 7.12 million for construction of new railway lines. The metro rail project of the state is expected to be completed by Source: Maps of India Source: Telangana State Statistical Yearbook 2015, News articles 19

20 PHYSICAL INFRASTRUCTURE AIRPORTS Telangana has one operating airport, Rajiv Gandhi International Airport (RGIA), Shamshabad owned and operated by International Airport Limited. Rajiv Gandhi Hyderabad International Airport Limited (RGHIAL) is a joint venture. The airport is sponsored by GMR Group, Malaysia Airports Holding Berhad (MAHB), State Government and the Airports Authority of India with shares of 63%,11%,13% and 13% respectively. The airport has two prime access points, one is the National Highway NH-7 and another one is Outer Ring Road (ORR) (western side) and Srisailam State Highway (eastern side). As of , the airport handled about 7.75 million passengers. Warangal Airport is a non-operational airport built over an area of acres. Source: Telangana State Statistical Yearbook 2015, News articles 20

21 PHYSICAL INFRASTRUCTURE POWER (1/2) TSERC is the prime authority for power generation in Telangana. Telangana Power Generation Corporation Limited (TSGENCO) and Transmission Corporation of Telangana Limited (TSTRANCO) are the generation and transmission entities of the state. As of June 2015, the total installed power capacity of Telangana state was 9, MW. Out of this, 5, MW was contributed by state, 2, MW by private utilities and 1, MW by central utilities. Thermal power is the major contributor in the state s total installed capacity with 7, MW. Hydropower is the second major contributor with 2, MW followed by nuclear with MW and renewable energy with MW. The state holds two power distribution companies which are Southern Power Distribution Company of Telangana State Limited (TSSPDCL) and Northern Power Distribution Company of Telangana Limited (TSNPDCL). As per the budget, an amount of US$ 30.2 million has been sanctioned for the New & Renewable Energy Development Corporation of TG (NREDCTG). As of 2015, Singareni Collieries Company has planned to set up two thermal power plants with a capacity of 600 MW in Adilabad district. Per capita power consumption by district (all categories) (KWh) Medak 1,439 Nalgonda 1,342 Hyderabad 1,307 Ranga Reddy 1,209 Mahaboobnagar 929 Karimnagar 716 Warangal 682 Nizamabad 749 Khammam 554 Adilabad Source: Telangana State Statistical Abstract May 2015, News articles TSERC- Telangana State Electricity Regulatory Commission 21

22 PHYSICAL INFRASTRUCTURE POWER (2/2) Distribution of hydropower plants Distribution of thermal & solar power plants Source: Telangana State Statistical Abstract May

23 KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS Sector Under government Project cost (US$ million) Stage Tourism State Bidding Roads Central Construction Development of Bus Terminal - Hyderabad Urban development State 78.5 Construction Hyderabad Metro Rail (MRTS) Project Urban infrastructure State 2,355.3 Construction Hyderabad International Airport Civil aviation Central Operational Mind Space Project, Hyderabad Others State Operational Tourism State Operational Urban development State Operational Others State 25.0 Operational Project name Business District & Trade Towers Hyderabad-Vijaywada Section Golf Course & Convention Centre Integrated Solid Waste Management FAB CITY, Hyderabad Source: Public Private Partnership in India Database PPP: Public - Private Partnership, As of May 2015, Converted using flat exchange rate of INR 60/US$ 23

24 DEVELOPMENT PROJECTS: SEZs For the supervision and execution of SEZs in the state, Telangana State Industrial Infrastructure Corporation is the concerned authority. During , a SEZ has been developed in Madikonda village of Warangal district. IT/ITeS, formulation, biotech and aerospace are the major sectors where SEZs are operating. Some operational SEZs in Telangana Sponsor Notified Formal In-Principle Districts Covered Area (Acres) Major Industries Proposed 1,011 IT/ITeS, hardware, formulations, biotech, precision engineering & aerospace TSIIC Warangal, Ranga Reddy, Medak, Mahbubnagar TSIIC JV s Ranga Reddy 1,136 IT/ITeS, semiconductors Assisted by TSIIC Ranga Reddy, Medak 1,563 IT/ITES, biotech & gems & Jewelry Private Developers Ranga Reddy, Medak, Hyderabad, Warangal 4,828 IT/ITeS, biotech, pharma, aviation & warehousing Urban Dept. Authority Ranga Reddy, Mahboonagar, Nalgonda 1,620 IT/ITeS, pharma, livestock, agriculture related Source: Telangana State Industrial Infrastructure Corporation (TSIIC) SEZ: Special Economic Zone 24

25 ANDHRA PRADESH THE RICE GRANARY OF INDIA PHYSICAL INFRASTRUCTURE TELECOM According to the Telecom Regulatory Authority of India (TRAI), undivided Andhra Pradesh had nearly million wireless subscribers and 1.84 million wireline subscribers. As of March 2014, Telangana state had 1,756 telephone exchanges and 15,240 public call offices (PCOs). As of March 2014, there were 5,832 post offices in the state. In 2014, BSNL announced to remove the interstate roaming which is applicable between Telangana and Seemandhra until Telecom infrastructure (as of May 2015) Wireless subscribers^ 71,578,461 Wire-line subscribers^ 1,845,876 Broadband subscribers^ 4,810,000* Telephone exchanges 1,756* Public Call Offices (PCOs) 15,240* Airtel launched 4G services in the states with special focus on Hyderabad. Other players such as BSNL and Aircel are also entering in the 4G business of the state. Source: Telecom Regulatory Authority of India, Telangana State Statistical Year Book, 2015 *As of March 2014, ^For undivided state BSNL: Bharat Sanchar Nigam Limited 25

26 SOCIAL INFRASTRUCTURE EDUCATION (1/2) Telangana s share in educational institutions includes: Three central universities located in Hyderabad: University of Hyderabad, English and Foreign Languages University and Maulana Azad National Urdu University. In , the state government of Telangana announced plans to open 36 primary and 7 upper primary schools in the state. The locations of the primary schools would be Rangareddy, Adilabad, Nizamabad, Medak and Khanimam. Technological institutes such as IIT, IIIT and NIT. Nalsar Law University, Indian School of Business as well as private institutes such as Symbiosis and TISS are located in the locality of Hyderabad. The Telangana government has announced fee compensations for students who belong to native and low income backgrounds. During , the spend on the fee reimbursement was US$ million. In , the three newly established universities Sri. P.V. Narasimha Rao Telangana State Veterinary University, Sri. Konda Laxman Horticulture University and Prof. Jayashankar Agricultural University have been allocated with an investment budget of US$ 43.5 million. Literacy rates (%) Literacy rate 66.5 Male literacy 74.9 Female literacy 57.9 Source: Central Statistics Office, Budget , Telangana Finance Department, News Articles, IIT: Indian Institute of Technology, IIIT: International Institute of Information Technology, NIT: National Institute of Technology, TISS: Tata Institute of Social Sciences, 26

27 SOCIAL INFRASTRUCTURE EDUCATION (2/2) Primary education statistics (%) Gross enrollment ratio ( ) Primary schools: 95.3 Upper primary schools: 95.4 Teacher/student ratio ( ) Primary schools: 1:33.0 Upper primary schools: 1:28.3 In Budget , the state government announced plans to invest US$ 199 million for the growth of general education. An amount of US$ million has been proposed for the construction of restrooms for girls in high schools. For the construction of government secondary schools, the state government has announced plans to invest US$ million in In order to provide nutritious meals to the student of class 9th and 10th, the state government has announced to invest US$ 8.5 million in the state budget Source: Telangana State Statistical Abstract 27

28 SOCIAL INFRASTRUCTURE HEALTH (1/2) Out of the country s pharma production, Telangana accounted for one-third share; the state government plans to enhance it further by promoting a pharma city. Health infrastructure ( ) Total hospitals 206 General hospitals 86 To double the budget allocation for the healthcare sector from the present 2 per cent and increase public health delivery services. Hospitals for women & children 11 Dispensaries 75 In 2014, the state government has decided to establish primary health centres and area hospitals in every mandal and taluqa headquarters, respectively. Primary health centres 613 Some of the initiatives by the state government to promote the healthcare sector are as follows: Supporting private players who are willing to invest in the healthcare sector. In 2014, the state government announced that it will set up super speciality hospitals in each district of Telangana. The government has announced an investment of US$ billion for the establishment of these hospitals till The upcoming hospitals will be based on the same pattern as Nizam's Institute of Medical Sciences (NIMS) of Hyderabad. In , the Government has planned to increase the number of ambulances in the state from 337 to 506. Doctors (regular + contract) 3, Total beds available 20,450 Health indicators^ (2013) Birth rate (per thousand persons) 17.5** Death rate (Per thousand persons) 7.3 Infant mortality rate* 39 Source: SRS Bulletin, September 2013,Telangana State Portal, News articles; *Per thousand live births, ^Represents information for combined state of Andhra Pradesh before bifurcation **As of

29 SOCIAL INFRASTRUCTURE HEALTH (2/2) Distribution of district hospitals, area hospitals & CHCs in Telangana Total number of hospitals by district Hyderabad 36 Nizamabad 22 Warangal 21 Adilabad 21 Medak 20 Rangareddy 20 Mahabubnagar 20 Khammam 17 Nalgonda 15 Karimnagar Source: Telangana Statistical Year Book 2015 CHC: Community Health Centres 29

30 INDUSTRIAL INFRASTRUCTURE.(1/2) Distribution of industrial parks in Telangana The industrial sector accounted for about 25 per cent share in the overall GSDP of the state in The Telangana government plans to encourage an industrial corridor. This industrial corridor would be in between Hyderabad and Warangal. After this industrial corridor, the employment opportunities are also expected to grow. The Telangana state plans to invest in power plants in a large way to back up its industrial infrastructure. In 2014, the government announced a new industrial policy framework to improve 6 industrial corridors with emphasis on essential engineering segments with life sciences, IT and hardware being the major supporters. Rangareddy, Medak, Nalgonda and Mahabubnagar are recognised as potential districts in terms of investment. Between and , these districts attracted investments of US$ million, US$ million, US$ million and US$ million respectively for the development of large scale industries. Source: News articles, Telangana State Statistical Abstract May 2014 Telangana State Statistical Year Book,

31 INDUSTRIAL INFRASTRUCTURE.(2/2) Hyderabad region of Telangana has the majority of industrial parks located in the industrial areas. These industrial parks are well equipped with layouts, water supply, internal roads, water supply and power supply. CETPs at Jeedimetla and Patancheru and TSDF at Dundigal under Jeedimetla Zone are established by the government. TSIIC has recognised 150 industrial parks in 10 districts having land of about 74, acres with 13,165 units (enterprises). Industrial Parks in Telangana Industrial Park Name No of Plots No of Sheds Vacant Area (Sqm) Proposed Industries Jeedimetla ,222,765 Automotive based Industries, General Engineering, Steel Re rolling, R&D of Biotech, Pharmaceuticals, Vaccines Karimnagar 2 0 2,136 General Patancheru ,963 Textile, Cargo, Edible Oils Shamshabad ,098,571 Aerospace, Solar equipment, Electronic Hardware Warangal ,874 IT & ITeS, General Source Telangana State Industrial Infrastructure Corporation (TSIIC) CETP- Common Effluent Treatment Plants TSDF- Treatment Storage Disposal Facility TSIIC-Telangana State Industrial Infrastructure Corporation 31

32 AMRUT & SMART CITIES (1/2) As of June 2015, five cities of Telangana namely Hyderabad, Karimnagar, Nalgonda, Nizamabad and Warangal are announced to be developed as a smart cities. In 2015, along with the smart cities, 15 cities of the Telangana state are selected for infrastructure development under the scheme Atal Mission for Rejuvenation and Urban Transformation (Amrut). The central government has approved a budget of US$ 8.3 billion for the first phase of the Amrut project. Source: TechSci Research 32

33 AMRUT AND SMART CITIES (2/2) Smart Cities in Telangana Cities Population Area (Sq Km) Literacy Rate Hyderabad 3,943, % Karimnagar 3,776,269 11, % Nalgonda 3,488,809 14, % Nizamabad 2,551,335 7, % Warangal 3,512,576 12, % Nizamabad Karimnagar Warangal Hyderabad Nalgonda Source: TechSci Research 33

34 KEY INDUSTRIES The Information Technology (IT) and pharmaceuticals manufacturing sectors are catalysing the growth of Telangana s economy. Hyderabad is a major exporter of IT and ITeS products. Key industries in Telangana Information technology Pharmaceuticals manufacturing Tourism Textile Mines and minerals Micro, small and medium enterprises are also strengthening the economic growth of the state. During , 40,894 MSMEs have been established in the state with a cumulative investment of US$ 3,736 million. The state government is in discussions with Steel Authority of India (SAIL) for establishing a steel factory comprising a deal of value US$ 5 billion on the Khammam-Warangal border. Source: Socio Economic Outlook 2015, Government of Telangana MSME- Micro, Small and Medium Enterprises The state government plans to improve cotton rich Warangal, the second major city after Hyderabad, in all aspects particularly by establishing textile parks analogous to those in Tirupur in Tamil Nadu. The state aims to setting up of industry across Telangana rather than limiting it to any specific city. Incorporation and implementation of Telangana State Industrial Project Approval and Self Certification Systems is expected to increase the investments in the state coming years. 34

35 KEY INDUSTRIES INFORMATION TECHNOLOGY (1/2) Information technology is one of the fastest growing sectors in Telangana, contributing around 21% share in the total GSDP of the state. The central government has declared the realisation of an Information Technology Investment Region (ITIR) near Hyderabad. With the establishment of the ITIR, the government plans to generate 1.5 million direct and 5.3 million indirect jobs in the IT sector in the next five years. The growth in the total exports of IT and ITeS products in Telangana is higher than India s IT and ITeS exports by 2.7%. Hyderabad accounts for a majority of the share in the exports of IT products in the state. During , exports of IT products of Telangana stood at US$ billion which reflects a growth of 15.8% as compared to previous year. Leading IT companies like Facebook, Google, IBM and Microsoft hold significant presence in Hyderabad. Continuous growth of these companies in conjunction with expansion plans is expected to generate 40,000 direct jobs along with indirect employment of several thousands. IT & ITeS exports from Telangana Exports Employment 323, ,774 Source: News articles, Socio Economic Outlook, 2015, IT/ITeS: Information Technology/Information Technology enabled Services Sector, 35

36 KEY INDUSTRIES INFORMATION TECHNOLOGY (2/2) Google Microsoft Amazon Google s Hyderabad office played a essential role in the growth of the firm s main products like Gmail, Chrome, Calendar and Docs. The engineers at Hyderabad make specially Google products for native markets and handling structures for agencies in India and other Asia Pacific markets. In 2015, Google announced plans to establish its largest campus in Hyderabad with an investment of US$ 166 million. In July 2014, Microsoft declared its strategies to develop processes in Hyderabad. The state government has guaranteed land and other facilities essential for the development of project. Microsoft s CEO Satya Nadella visited Hyderabad in September 2014, and there are probabilities of discussions with the state government concerning growth of the IT industry in Hyderabad. In 2015, the company announced that it will establish its largest fulfilment centre in Telangana. Amazon aims to intensify its employee base by more than three fold from the existing 4,000 to 13,500 in phases. During , the company recorded revenues of US$ 28 million from its Indian operations. Facebook Facebook is a US-based online public networking provision company with set-ups in India. The agency in Hyderabad was the first organisation for the company in Asia. Facebook India has designed a programme to strengthen Digital India and Skills India initiatives of the Government of India. The program named Small Business Boost was inaugurated by Telangana s IT Minister K T Rama Rao in Hyderabad in August Facebook s Small Business Boost initiative will serve as an incredible resource for the growth of these businesses by offer training on best practices for growing a small business online. The programme will also aim at encouraging and training the business owners to access international markets by branding on Facebook platform. 36

37 KEY INDUSTRIES PHARMACEUTICALS (1/2) Hyderabad accounts for about 20 per cent share in the total export of pharma products from India. This is making Hyderabad as a centre for the drug production. Telangana backs nearly one-third of complete pharma manufacture in the country. The state government declared establishing a Pharma City to enhance the pharmaceutical business in Telangana. As of , Telangana state had about 412 and 173 pharma companies and bulk drug units respectively. Companies like Dr Reddy s and Aurobindo are continuously expanding and have already lined up vast investments for the same. Total R&D by pharmaceutical enterprises has grown by additional 20.6 per cent in 2014, indicating the potential in Telangana. In 2014, the Telangana government announced to shift pharmaceutical industries based in Jeedimetla and other parts of the state to the pharma city in Hyderabad. In December 2014, the state government of Telangana announced plans to establish a pharmaceutical manufacturing industrial park i.e. Hyderabad Pharma City. The park is proposed to be established on 11,000 acres at Mucherla location and is expected to create employment opportunities for 70,000 people. As on June 2015, the state government constituted a panel for the development of Hyderabad Pharma City on an urgent basis. Source: News articles 37

38 KEY INDUSTRIES PHARMACEUTICALS (2/2) Dr Reddy s Aurobindo Pharma Divi's Laboratories Dr Reddy s initiated its business processes as an Active Pharmaceutical Ingredients (API) producer in 1984 and added formulations procedures in The enterprise entered in to international markets in In , the company works with 50 R&D associates through out the world, having three major clusters in the US, Western Europe and India. In , the company generated revenues of US$ 1, million. Aurobindo Pharma was established in 1986 and turn into a public listed company in The corporation trades its drugs to 125 countries and derives more than 70 per cent of its total returns from global operations. The company has a group of about 650 scientists who carry out the operations in research and product development. In , the company generated revenues of US$ 1, million. Divis Laboratories, started in 1990, produces APIs & intermediates. The company has 500 acres of 13 multi-purpose manufacture units in Hyderabad and a plant in Seemandhra. During , the company reported revenues of US$ 514 million. Granules India Ltd Granules India is an Indian pharmaceutical company with manufacturing facilities dispersed across India and China. The company assists clienteles across 60 countries with four facilities in India, which include Hyderabad, and a facility in Jingmen, China. In 2013, it acquired Auctus Pharma for the expansion of its business. In , the company generated revenues of US$ million. 38

39 KEY INDUSTRIES TOURISM.(1/2) Dynasties such as Sathavahanas, Kakatiyas, Chalukyas, Qutubshahis, Mughals and Asafjahis have ruled the state of Telangana. Number of tourist arrivals by district (Thousands) Nalgonda Hyderabad, the capital of Telangana, is highly popular for Charminar, Golconda Fort, pearls and biryani. The Kakatiya track with Warangal and Karimnagar are recognised as highly popular tourist places. Jinnaram near Kawal Tiger Sanctuary and the lake resorts at Kadem (Adilabad) and Alisagar Lake (Nizamabad) are places which are extremely popular. Amongst the new tourist spots, the state has established jungle resorts on the border of Telangana-Maharashtra. In order to encourage tourism, the state government has planned listing of a new public limited company, Telangana State Tourism Development Corporation Limited (TSTDC), under the Companies Act The state celebrates diverse festivals. In 2013, the state government certained to announce Bathukamma Panduga as the state festival in view of the prominence of this festival celebrated from corner to corner Telangana. 8,397 Khammam 5,224 Warangal 23,227 Karimnagar 11,948 Adilabad 6,935 Nizamabad 7 Medak 1,970 Rangareddy & Hyderabad 9,297 Mahabubnagar 5, Source: News Articles, Telangana State Statistical Year Book,

40 KEY INDUSTRIES TOURISM.(2/2) Key tourist spots Monuments Charminar Golconda Fort Qutb Shahi Tombs Chowmahalla Palace Falaknuma Palace Bhongir Fort Ramoji Film City Religious Tourism Thousand Pillar Temple Bhadrachalam Temple Nelakondapalli Dhulikatta Phanigiri Kolanpaka Mecca Masjid Others Kuntala waterfall Pochera waterfalls Nirmal Paintings Number of domestic tourist arrivals in Telangana (million) Number of foreign tourist arrivals in Telangana (thousands) Source: News Articles, Telangana State Statistical Year Book,

41 KEY INDUSTRIES MINES AND MINERALS (1/2) Granite, coal, lime stone, bauxite and mica are the major mineral resources in Telangana. District Major Minerals Limestone, Coal, Iron ore, Manganese Adilabad, Karimnagar, Khammam and Warangal are the largest producers of coal in the state of Telangana. Adilabad The state have high volumes of limestone deposits, which gratify various cement factories in the region. Karimnagar Lime stone, Coal, Iron ore, laterite & granite Karimnagar, Khammam and Adilabad, are the prime districts for mining in the state of Telangana. These districts accounts for 50% share in the mining business of the state. Khammam Limestone, Coal, Iron ore, quartz & granite, Steatite, Dolomite, Barites, Corrundum Karimnagar is considered as strong granite reserve districts in Telangana. Wide range of granites such as Tan Brown, Maple Red and Coffee Brown granite are available in the district. Medak Telangana holds 426 quarries for colour granite and six quarries for black granite. Khammam is emerging as the new growth engine with around 15,000 acres of land being freed by the state government in the district. Mahbubnagar Amethyst, Feldspar, laterite, Quart Amethyst, laterite, Granite Nalgonda Limestone & Limestone Slabs Nizambad Quartz, laterite, Granite Ranga Reddy Warangal Amethyst, laterite, Granite, Limestone Amethyst, Granite, Coal Source: Indian Mineral Scenario States, Ministry of Mines website, ASSOCHAM India 41

42 KEY INDUSTRIES MINES AND MINERALS (2/2) Coal industry is one of the prime segments for Telangana minerals and mines sector. Telangana coal deposits account for 20% share in India s coal deposits. During , the state reported the presence of 145 mines Production of Principal Minerals, During , Telangana s major mineral production was valued at US$ 1.19 billion and minor mineral production was valued at US$ 1.05 billion. Coal Limestone Stowing sand Feldspar Laterite 6.43 Dolomite 5.86 In 2015, a new website for Online Sand Sale Management & Monitoring System has been started and is being developed by Telangana State Mineral Development Corporation. The purpose of this website is to identify illegal mining of natural resources and maintain records of the revenues of the mining sector. Minerals Production ( 000 tonnes) Source: Telangana State Statistical Year Book,

43 KEY INDUSTRIES APPARELS AND TEXTILES Cotton is grown in almost all districts of the state except Hyderabad and Nizamabad. The state had 10 lakh spindles as of Out of these spindles, about 8 lakh spindles utilise cotton and the rest use synthetic and viscose fibres. Handloom and textile exports for undivided Andhra Pradesh (in US$ million) In 2014, under Integrated Textile Park scheme, the state government proposed to set up two textile parks in Warangal and Sircilla cities. These cities are based in Karimnagar district. Both parks will be established similar to the parks present at Tirupur in Tamil Nadu. As per Budget , the handloom and textile sector of Telangana received an amount of US$ 30.9 million. In the budget of , the state government announced that it will establish a mega textile park. This park will be based at Warangal which is the fastest growing district in the state in terms of cotton business. 1, , CAGR 28.9% As of March 2015, a new textile policy has been introduced in Telangana. The purpose of this policy is to provide special incentives to the textiles sector. Source: Andhra Pradesh Socio-Economic Survey , Socio Economic Outlook , Telangana State Statistical Year Book, 2015, News articles 43

44 KEY APPROVALS REQUIRED List of approvals and clearances required Incorporation of company Department Registrar of Companies Registration, Industrial Entrepreneurs Memorandum, industrial licences Permission for land use Commerce and Industries Department Allotment of land Site environmental approval Telangana Pollution Control Board No-objection Certificate and consent under Water and Pollution Control Act Registration under States Sales Tax Act and Central and State Excise Act Excise Department Commercial taxes Sanction of power Power feasibility Energy and Power Department Power connection Approval for construction activity and building plan Water and sewerage clearance Water connection Public Works Department Water Security & Public Health Engineering Department 44

45 CONTACT LIST Agency Contact information Industrial Infrastructure Corporation 6th Floor, Parisrama Bhavan, Fateh Maidan Road, Basheerbagh, Hyderabad , Telangana, India Ph: , Fax: , Website: Telangana State Power Generation Corporation (TSGENCO) Vidyutsoudha, Khairatabad, Hyderabad , Telangana, India Phone: / Fax: Telangana Pollution Control Board Telangana Pollution Control Board Payavaran Bhawan, A-III, Industrial Estate, Sanath Nagar, Hyderabad - A.P. Website: eew_ss@pcb.ap.gov.in 45

46 COST OF DOING BUSINESS IN Parameter Land price (US$ per sq m) Labour cost (minimum wages per day) Commercial lease rent (US cents per sq ft per month) Electricity (US cents per kwh) Cost estimate US$ Commercial: Industrial: Residential rent (US cents per sq ft per month) Five-star hotel room (US$ per night) Water cost (US$) Industrial: per 1,000 litres Commercial: per 1000 litres Source: Telangana State Electricity Regulatory Commission, labour.nic.in, Property sites, News articles, Travel sites 46

47 STATE ACTS & POLICIES (1/3) The Telangana Solar Power Policy 2015 Objectives To promote regionalised and dispersed generation of solar energy. Effective energy conservation by the stimulation of connected grid and off-grid solar tenders. Endorsement of all skills related to solar power generation. Addition of solar parks Read more Telangana Full Fee Reimbursement Policy 2015 To confirm a uniform scholarship for each category of study, as well as vocational training, which is independent of the fees charged. To guarantee that fees are lower than the subsidy quantities to help students to Read more meet their living expenses. Objective The New Industrial Policy 2014 Objectives To improve 6 industrial corridors with emphasis on main industrialised sectors, with life sciences, IT and hardware being the major benefactors. Read more To certify viable & comprehensive industrial development. Objectives 47

48 CONFERENCES/SUMMITS FOR Summit / Conference Venue of Summit / Conference Date 4th International Summit on GMP, GCP & Quality Control Hyderabad 26-28th October, nd Indo-Global Summit & Expo on Veterinary Hyderabad 26-28th October, rd International Conference and Exhibition on Pharmacognosy, Phytochemistry & Natural Products Hyderabad 26-28th October, th Indo Global summit and Expo on Vaccines & Vaccination Hyderabad 02-04th November, th Indo Global Summit on Cancer Therapy Hyderabad 02-04th November, 2015 Vaccines Asia Pacific Hyderabad 2016 Source: India Conference Alerts 48

49 ANNEXURE Average exchange rates Year INR equivalent of one US$ Q Source: Reserve Bank of India 49

50 DISCLAIMER India Brand Equity Foundation (IBEF) engaged TechSci to prepare this presentation and the same has been prepared by TechSci in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of TechSci and IBEF s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. TechSci and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither TechSci nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation. 50