GOLKONDA FORT NEAR HYDERABAD, PHARMACEUTICAL HUB OF INDIA April 2018
Table of Content Executive Summary....3 Advantage State......4 Telangana Vision.5 Telangana An Introduction..6 Budget 2018-19..... 16 Infrastructure Status...17 Business Opportunities.....36 Doing Business in Telangana....50 State Acts & Policies....51
EXECUTIVE SUMMARY Economic growth driven by service sector At current prices, Telangana s GSDP was estimated at US$ 113.68 billion during 2017-18. Services sector is the major contributor in the GSDP of Telangana. Hyderabad The IT hub of the state Hyderabad is the major IT hub of the state across the country. During 2016-17, the value of IT exports from the state of Telangana was recorded at US$ 13.27 billion. The launch of T-Hub in November 2015 has created most energetic community of entrepreneurs across the world for boosting the success stories of the start-ups in India. Growth in annual budget In Budget 2018-19, total expenditure of the state increased 22.42 per cent to Rs 1,74,48,228.34 lakh (US$ 27.07 billion).^ Promoting tourism & historical past In September 2017, Telangana received eight national awards for promotion of tourism and cleanliness. Out of these eight awards, five were won by the state s tourism department while the rest were awarded to publicprivate enterprises. Note: ^From Revised Estimate of 2017-18 Source: Telangana State Statistical Year book,2015, MOSPI, Budget 2018-19 3
ADVANTAGE: March 2018 2018E Growing economy and improving infrastructure Rich labour pool Installed power capacity: 15,087.13 MW Telangana s GSDP grew at a CAGR of 12.60 per cent between 2011-12 and 2017-18. The state government plans to build more airports in the state to improve connectivity. 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. Installed power capacity: 17,000 MW Availability of readymade capital Advantage Telangana Policy and institutional support 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. Under the Department of Information Technology, Electronics & Communications, the Government of Telangana introduced three new policies in 2016, namely, Telangana IT Policy, 2016, Telangana Electronics Policy, 2016 and Telangana Innovation Policy, 2016. Note: E - Estimate Source: Telangana State Statistical Year Book, 2015, GSDP: Gross State Domestic Product, Central Electricity Authority 4
VISION To develop Hyderabad as a slum free city. Effective implementation of welfare schemes. In next three years, Telangana is expected to be developed as a power surplus state Plans to announce industrial policy to encourage investments in state. Setting up of faster clearances, a single window system. Waiver of agricultural loans up to Rs 1 lakh. Technological advancement in agriculture Government to encourage research in agricultural universities. Promoting investments Agriculture Quality of life of people Promoting research Vision Power Infrastructure Governance Law & order Ensure people centric, transparent and corruption free development. To take steps to eradicate corruption. No negotiation on maintaining law & order in the state. Encouraging people friendly police officials. Installing CCTV cameras for better vigilance. Aim to make Telangana the Seed Bowl of India. Telangana is highly suitable for the growth of seeds. Endorsing greenhouse technology and pilot projects. Hyderabad to have most advanced infrastructure facilities. To have two new airports in Hyderabad, near Shamirpet, Jawaharnagar and Ghatkesar. Source: Telangana Government 5
FACT FILE Hyderabad, Secunderabad and Warangal are the key cities in the state. Parameters Capital Telangana Hyderabad Geographical area (lakh sq. km) 114,840 Source: TS Portal In June 2014, Telangana was introduced as the 29th state of the India, Hyderabad is the capital of the state. Telangana is situated on the Deccan Plateau. It is home to three national parks and eight wildlife sanctuaries. It 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. Administrative districts (No) 31 Population density (persons per sq. km) 312 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 2015 6
IN FIGURES (1/2) Parameter Telangana All states Source Economy 2017-18 2017-18 GSDP as a percentage of all states GSDP 4.38 100.0 Directorate of Economics & Statistics of Telangana, Central Statistics Office GSDP growth rate (%) 14.1 9.8 Directorate of Economics & Statistics of Telangana, Central Statistics Office Per capita GSDP (US$) 3,000.93 1,975.05 Directorate of Economics & Statistics of Telangana, Central Statistics Office Physical Infrastructure Installed power capacity (MW) 15,087.13 344,002.39 Central Electricity Authority, as of March 2018 Wireless subscribers (No) 84,639,369 1 1,156,867,852 National highway length (km) 3,786 122,432 Telecom Regulatory Authority of India, as of February 2018 NHAI, Roads and Building Department- Government of India, as of February 2018 Airports (No) 1 2 125 Airports Authority of India Note: 1 For undivided State, 2 International operational airport 7
IN FIGURES (2/2) Parameter Telangana All states Source Social Indicators Literacy rate (%) 66.5 73.0 Census, 2011 Birth rate (per 1,000 population) 17.5 21.6 SRS Bulletin Investment FDI equity inflows (US$ billion) 14.524 1 367.932 Department of Industrial Policy & Promotion, April 2000 to December 2017 Industrial Infrastructure PPP projects Completed & Operational (No) 14 740 DEA, Ministry of Finance, Government of India, December 2017 Operational SEZs (No) 30 222 Notified as of September 2017, Ministry of Commerce & Industry, Department of Commerce, December 2017 Note: 1 Including Andhra Pradesh, PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System 8
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 3.59 1,00,732.58 74.96 73.75 4.02 74.64 4.52 2,100.78 2,046.47 1,11,430.08 2,050.53 1,24,057.03 82.72 5.06 2,249.98 1,37,586.08 86.06 5.63 2,317.58 1,51,708.95 2,551.40 1,71,173.18 95.69 6.42 3,000.93 1,93,410.15 113.68 7.33 ECONOMIC SNAPSHOT GSDP GSDP of Telangana at current prices GSDP per capita of Telangana at current prices 120.00 CAGR (in Rs) 12.60% 8.00 3500.00 CAGR (in Rs) 11.49% 250000 100.00 80.00 60.00 40.00 20.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 3000.00 2500.00 2000.00 1500.00 1000.00 500.00 200000 150000 100000 50000 0.00 0.00 0.00 0 US$ billion Rs trillion US$ Rs At current prices, Telangana s GSDP stood at Rs 7.33 trillion (US$ 113.68 billion) in 2017-18. Between 2011-12 and 2017-18, GSDP of the state grew at a CAGR of 12.60 per cent. Telangana s per capita GSDP^ increased to Rs 1,93,410.15 (US$ 3,000.93) during 2017-18 from Rs 1,00,732.58 (US$ 2,100.78) in 2011-12. Average per capita GSDP rose at a CAGR of 11.49 per cent between 2011-12 and 2017-18. Source: Telangana Socio Economic Outlook 2018 9
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 67.81 3.25 66.86 3.64 67.48 4.08 74.62 4.56 1,900.33 91,121.00 1,855.04 1,01,007.00 1,853.92 1,12,162.00 77.66 5.08 86.50 2,029.50 1,24,104.00 2,091.43 1,36,905.00 2,306.36 1,54,734.00 5.80 103.17 6.65 2,723.57 1,75,534.00 ECONOMIC SNAPSHOT NSDP NSDP of Telangana at current prices NSDP per capita of Telangana at current prices 120.00 100.00 80.00 60.00 40.00 CAGR (in Rs) 12.66% 7.00 6.00 5.00 4.00 3.00 2.00 3000 2500 2000 1500 1000 CAGR (in Rs) 11.55% 200000 180000 160000 140000 120000 100000 80000 60000 20.00 0.00 1.00 0.00 500 0 40000 20000 0 US$ billion Rs trillion US$ Rs At current prices, Telangana s net state domestic product (NSDP) was estimated at Rs 6.65 trillion (US$ 103.17 billion) in 2017-18. Between 2011-12 and 2017-18, the average annual NSDP growth rate was about 12.66 per cent. Telangana s per capita NSDP grew from Rs 91,121.00 (US$ 1,900.33) during 2011-12 to Rs 1,75,534.00 (US$ 2,723.57) over 2017-18. Average per capita NSDP increased at a CAGR of 11.55 per cent between 2011-12 and 2017-18. Source: Telangana Socio Economic Outlook 2018 10
ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP At a CAGR of 15.99 per cent, tertiary has been the fastest growing sector in the state between 2011-12 and 2017-18. Percentage distribution of GSDP (Current prices) The primary sector increased at a CAGR of 10.59 per cent between 2011-12 and 2017-18, followed by secondary sector (CAGR of 2.63 per cent). In 2017-18, the tertiary sector contributed 59.03 per cent to the state s GSDP at current prices. It was followed by the primary sector (16.40 per cent) and secondary sector (14.80 per cent). 100% 90% 80% 70% 60% 49.41% CAGR (in Rs) 59.03% 15.99% 50% 40% 30% 25.81% 2.63% 14.80% 20% 10% 0% 18.27% 16.40% 10.59% 2011-12 2017-18 Primary Sector Secondary Sector Tertiary Sector Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office 11
1.20 1.65 1.52 1.44 1.31 1.77 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION During 2017-18, 606,000 hectares of area was under cultivation of maize, whereas pulses were cultivated over an area of 534,000 hectares, in the state. In 2017-18, Telangana produced 6.56 million tonnes and 513,000 tonnes of rice and pulses, respectively. The state government has proposed an amount of US$ 2.45 billion in State Budget 2018-19 for Agriculture and Marketing. Production of fruits, vegetables and plantation crops reach 1.77 million tonnes, 1.52 million tonnes and 1.31 million tonnes, respectively, in 2017-18*. Annual area & production of key crops (2017-18) Crop Annual Area ( 000 hectare) Annual Production ( 000 tonnes) 2017-18 2017-18 Rice 1,972 6,558 Cereals & millets 2,653 8,988 Pulses 534 513 Fruits 164.83 1765.90 Cotton 1903 43.23 2.00 Production of horticulture crops (million MT) 1.50 1.00 0.50 0.00 Production of Fruits Production of Vegetables 2016-17 2017-18* Production of Plantation Crops Note: 2017-18* - As per 1 st advance estimates Source: Telangana Socio Economic Outlook 2018, Telangana State Budget 2016-17 12
2010 2011 2012 2013 2014 2015 2016 2017 2018* 174.24 1,032.70 1,307.60 1,822.20 1,591.43 2,267.90 2,090.90 2,503.71 3,294.06 ECONOMIC SNAPSHOT INVESTMENTS & EXPORTS In January 2018, the state government held talks with Japan International Cooperation Agency (JICA) and South Korea for investments in the second phase of Hyderabad Metro, Pharma City, Kakatiya Textile Park. Investment intentions in terms of IEMs filed, LOIs/DILs issued in Telangana 3500 Additionally, a legal framework has been provided in the policy to make the existing industries more competitive, which is expected to boost the quality of goods manufactured in the state. 3000 Telangana is one of the leading exporters of IT services in India. In 2016-17, the overall IT exports from Telangana were valued at US$ 13.27 billion. 2500 2000 According to the Department of Industrial Policy & Promotion (DIPP), cumulative FDI inflows (1) in Telangana from April 2000 to December 2017, totalled US$ 14.524 billion. 1500 In January 2017, the state government signed MOUs for several investments and strategic partnerships, worth US$ 503.04 million. The investment also includes setting up of Life Sciences Infrastructure Fund in the state. The number of investment intentions filed were 10 and the proposed investments amounted to Rs 1,123 crore (US$ 174.24 million) till February 2018. 1000 500 0 176 132 132 134 117 145 139 114 10 Number of Investment Intentions Proposed Investments (US$ Million) Note: (1) Including Andhra Pradesh, IEMs Industrial Entrepreneur Memoranda, LOIs Letters of Intent, DILs Direct Industrial Licences, 2018* - up to February 2018 Source: Department of Industrial Policy & Promotion, Government of India, Ministry of Commerce & Industry, Government of India 13
ECONOMIC SNAPSHOT IRRIGATION...(1/2) The major sources for water for irrigation purpose in the state are Godavari and Krishna Rivers & branches. Telangana also uses water from tanks & ponds for irrigation. Irrigation projects status (as of June 2017) Major irrigation projects Numbers During 2015-16, share of Telangana in the water of Godavari & Krishna was recorded to be 1,250 thousand million cubic feet. Further, the state also has a share of 150 thousand million cubic feet in the surplus water. Moreover, Telangana s Chief Minister accomplished an understanding with Maharashtra s Chief Minister for fulfilling the projects which are estimated to be developed over Pranahita, Godavari & Penganga rivers. In addition to these new projects, the state government is also trying to finish the major & medium projects, which are under process in the state. In Telangana, every year around 9,000 tanks are being taken up for their restoration under Mission Kakatiya and during 2016-17, the restoration of the tanks was done with the people s active participation. Moreover, the phase-iii of restoration is expected to be initiated soon. In State Budget 2017-18, it was proposed to take up Manair River Front Project at an estimated cost of US$ 74.58 million. Completed 13 Ongoing 17 Medium irrigation projects Numbers Completed 37 Ongoing 9 Gross Irrigated Area, Net Irrigated Area ( 000 ha) 2014-15 2015-16 Gross Irrigated Area 2,529 2,028 Net Irrigated Area 1,726 1,486 Irrigation Intensity 2014-15 1.47 2015-16 (Kharif) 1.01 Source: Irrigation and CAD Department, Government of Telangana 14
ECONOMIC SNAPSHOT IRRIGATION...(2/2) Major & Minor Irrigation Schemes and Projects being planned by Telangana Schemes and Projects Palamuru-Ranga Reddy Lift Irrigation Scheme Salient features To make available drinking water to Hyderabad from Krishna river 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. Nakkalagandi Project 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. Irrigation sector investment 2018-19 (US$ million) Projects Investment Major and medium irrigation 3,396.57 Minor irrigation 425.70 C.A.D 38.94 Flood control and damage 17.76 Source: Telangana State Portal 15
BUDGET 2018-19 In 2018-19, the overall budgeted allocation amounted to US$ 27.07 billion for various sectors of Telangana. The allocation of funds was about 22.42 per cent higher in comparison with the revised estimates of 2017-18. Annual Budget (Estimates in US$ billion) Sector 2018-19 Agriculture, allied activities and rural development 3.23 Irrigation 3.31 Power 0.59 Social Services 7.06 Transport 0.69 Others (Industries, General Economic Services etc) 1.38 Source: Telangana State Portal, Department of Finance 16
PHYSICAL INFRASTRUCTURE ROADS 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 February 2018, the state was home to 18 national highways with total length of 3,786 km. The overall road length for Telangana state was around 28,290 km as of 2016-2017. The density of notified national highways in Telangana is 2.90km/100 sq. km against the nation wide average of 2.84 km/ 100sq. Km. In order to fulfil the purpose of laying double lane and four lane roads from Mandal headquarters to district headquarters and for linking every headquarter to Hyderabad, the department of R&D has taken up widening of 139 roads from single lane to double lane. An allocation of Rs 5,575 crore (US$ 8.65 billion) was made in State Budget 2018-19 for Telangana roads and buildings Department. The state government started a process to monetise toll-operatetransfer asset projects. The process to monetise the Nehru Outer Ring Road (NORR) has also been initiated. The project is expected generate a significant amount of extra-budgetary resources that can be used for other infrastructure assets. Source: Maps of India Road type Road length (km) National highways 3,786* State highways 2,731 Major district roads 13,058 Other district roads 9,161 Total 28,290 Note: *AS of February 2018 Source: Roads & Buildings Department, Government of Telangana, Budget 2016-17 17
PHYSICAL INFRASTRUCTURE RAILWAYS Telangana is well-connected to other parts of the country through the rail network. As of December 2016, the state had a railway network of 1,736.67 km. For construction of new railway lines in the state, the government proposed an investment of US$ 3.10 million in 2017-18. A rapid metro transit system is being implemented in the state through public private partnership (PPP) mode. The project is expected to be completed by November 2018, and as per the budget 2016-17, completion of this metro rail and other strategic plans in the state would help in minimizing traffic congestion across the state. The project is made up of two phases. The first phase includes 3 lines covering over 66 kilometres. The state government has proposed 83 km in five stretches for the second phase. In November 2017, the Prime Minister inaugurated a 30 kilometre long phase of the metro rail project, which is a part of phase 1 of the project. Work on two stretches is in progress and these are expected to be commissioned by June 2018. Source: Maps of India Source: Telangana State Statistical Yearbook 2015, Telangana Economic Survey, News articles 18
PHYSICAL INFRASTRUCTURE AIRPORTS (1/2) 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). Warangal Airport is a non-operational airport built over an area of 748.02 acres. In order to improve the civil aviation sector, the state government proposed an investment of US$ 3.09 million in 2017-18. The Government of Telangana sanctioned an amount of US$ 2.02 million to the Telangana Aviation Corporation. In October 2017, GMR group decided expansion of Rajiv Gandhi international airport. The airport currently has a capacity of 25 million passengers and handled 17 million passengers in 2016. To meet the growing needs, capacity expansion in the form of another runway and a new terminal will be taken up by the group. The project is expected to be completed within the next three years. Source: Telangana State Statistical Yearbook 2015, State Budget 2016-17 19
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 6.51 7.60 8.44 8.30 8.65 10.40 12.38 15.10 18.16 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 80,016 82,658 99,013 90,151 87,741 94,057 1,05,772 1,30,713 1,49,581 PHYSICAL INFRASTRUCTURE AIRPORTS (2/2) Passenger traffic at Hyderabad airport increased by 20.26 per cent year-on-year to 18.16 million in FY18. Hyderabad aircraft movement (nos.) Aircraft movement at Hyderabad airport increased by 14.43 per cent year-on-year to 1,49,581 in FY18. As per statistics of Airports Authority of India, freight traffic at Hyderabad airport increased by 10.10 per cent year-on-year to 134.14 million tonnes in FY18. 1,60,000 1,40,000 1,20,000 1,00,000 80,000 60,000 40,000 20,000 0 Hyderabad passenger traffic (million) 20.00 15.00 10.00 5.00 0.00 Source: Airport Authority of India 20
PHYSICAL INFRASTRUCTURE POWER 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 March 2018, the total installed power capacity of Telangana state was 15,087.13 MW. Out of this, 7,572.65 MW was contributed by state utilities, 5,399.63 MW by private utilities and 2,114.85 MW by central utilities. Thermal power was the largest contributor in the state s total installed capacity with 8,828.95 MW, followed by hydropower with a contribution of 2,449.93 MW, renewable energy with 3,659.52 MW and nuclear power with 148.73 MW. The state is aiming to achieve a power generation capacity of 28 GW. In November 2017, the state government announced it is planning to invest around US$ 14 billion to make the state a power surplus state. In April 2017, ReNew Power, an Indian renewable independent power producer, commissioned the construction of the largest PV plant in Telangana with a capacity of 143 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 of June 2017, three thermal power projects, with a combined capacity of 2,680 MW are under construction in the state. Also, Renovation and Modernisation (R&M) of two hydro power projects is under implementation and is expected to be completed by 2018-19. Under State Budget 2018-19, an amount of Rs 5,650 crore (US$ 876.65 million) was allocated for the power sector. Source: Central Electricity Authority, State Budget 2018-19, Telangana State Statistical Abstract 2017 21
KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS (1/2) Project name Sector Type of PPP Project Cost (US$ million) Stage Hyderabad Multi-Modal Suburban Transportation Project - Phase II Railway track, tunnel, viaducts, bridges Build-Own-Operate-Transfer (BOOT) 58.7 Under construction Roadways between Hyderabad - Bangalore Section Roads and bridges Build-Operate-Transfer (BOT) 103.9 Under construction Road Upgradation (Kadtal-Armur NH- 7) Project Roads and bridges Build-Operate-Transfer (BOT) Annuity 42.0 Operational Road Upgradation (Islam Nagar-Kadtal NH-7) Project Roads and bridges Build-Operate-Transfer (BOT) Annuity 79.2 Operational Road Upgradation (Armur-Adloor Yellareddy) Project Roads and bridges Build-Operate-Transfer (BOT) 58.3 Operational Municipal Solid Waste to Energy in Hyderabad (Hyderabad, Gadamaguda, R.R.District) Municipal Solid Waste to Energy in Hyderabad Solid waste management Solid waste management Build-Own-Operate-Transfer (BOOT) 13.0 Operational Build-Own-Operate-Transfer (BOOT) 5.2 Operational Integrated Solid Waste Management (3800 TPD) for Hyderabad Solid waste management Design-Build-Finance-Operate- Transfer (DBFOT) 137.0 Under construction Hyderabad-Yadgiri Four-Lane NH-202 Road Project Roads and bridges Design-Build-Finance-Operate- Transfer (DBFOT) 68.4 Operational Hyderabad International Airport Airports Build-Own-Operate-Transfer (BOOT) 378.6 Operational Note: NA Not Available Source: Ministry of Commerce & Industry, Department of Commerce 22
KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS (2/2) Project name Sector Type of PPP Project Cost (US$ million) Stage Three Star Hotel at Madhapur, Hyderabad Tourism Build-Operate-Transfer (BOT) 0.8 Under construction Multiplex & Shopping Mall at Secunderabad Tourism Build-Operate-Transfer (BOT) 4.1 Under construction HITEC City Cyberabad Hyderabad Common infrastructure for industrial parks, SEZ Not Available 68.7 Operational Golf Course At Naya Quilla Hyderabad Tourism Build-Operate-Transfer (BOT) 1.9 Under construction Food Courts Project at Lower Tankbund Road Hyderabad Tourism Build-Operate-Transfer (BOT) 1.1 Under construction Source: Ministry of Commerce & Industry, Department of Commerce 23
DEVELOPMENT PROJECTS: SEZs (1/2) For the supervision & execution of SEZs in the state, Telangana State Industrial Infrastructure Corporation is the concerned authority. Sector-wise operational SEZs in Telangana (December 2017) In August 2017, a proposed electronic hardware SEZ got clearance from the State-level Expert Appraisal Committee (SEAC). The SEZ is proposed to be set up over 339.75 acres in Maheshwaram at a cost of US$ 18 million. As of December 2017, Telangana had 151 SEZs; of which, 30 are operational, 57 are notified & 64 are formally approved As of September 2017, the total area of notified SEZs in Telangana stood at 1,992.28 hectares. 22 IT/ITES 1 1 1 1 1 Biotech Gems & Jewellery 1 Aviation Sector 2 Semiconductors Aerospace Engineering Industries Pharmaceuticals Electronic hardware and software Source: Ministry of Commerce & Industry, Government of India 24
DEVELOPMENT PROJECTS: SEZs (2/2) Sector-wise Operational SEZs in Telangana Industry IT/ITeS Name of SEZs DivyaSree NSL Infrastructure Private Limited, RR Dist. DLF Commercial Developers Ltd Gachibowli, APIIC Ltd Nanakramguda Wipro Limited, Gopannapally Sundew Properties, Madhapur Stargaze Properties Pvt Ltd, RR Dist, Serene Properties, Ghatkesar JT Holdings Pvt Ltd, RR Dist. Infosys Limited, Pocharam Tech Mahindra Limited (Satyam Computers), Madhapur, Tech Mahindra Limited (Satyam Computers), Bahadurpally Indu Techzone Pvt Ltd, Mamidipally Lanco Hills Technology, Manikonda Wipro Limited, Manikonda L&T Phoenix Infoparks, RR Dist Navayuga Legala Estates Pvt Ltd, Serilingampally Tata Consultancy Services Limited, RR Dist. Hill County SEZ Private Limited, Bachupally CMC Limited, RR Dist Mantri Developers Pvt. Ltd. APIIC Ltd Madikonda NSL SEZ(Hyd) Pvt. Ltd., Secunderabad Source: Ministry of Commerce & Industry, Government of India No of SEZs 22 Sector-wise Operational SEZs in Telangana Industry Biotechnology Gems & jewellery Aviation Semiconductors Aerospace engineering Name of SEZs APIIC Ltd Shantha Biotechnics Pvt. Ltd. Hyderabad Gems SEZ Ltd, RR Dist M/s GMR Hyderabad Aviation SEZ Limited, Hyderabad FAB City SPV (India) Pvt Ltd, RR Dist M/s. APIIC Ltd., Adibatla, Ibrahim patnam, R.R. Dist, Pharmaceuticals APIIC Pharma SEZ - Jedcherla 1 Electronic Hardware and Software Radiant Corporation Private Limited No of SEZs 2 1 1 1 1 1 25
PHYSICAL INFRASTRUCTURE TELECOM According to the Telecom Regulatory Authority of India (TRAI), undivided Andhra Pradesh had nearly 84.64 million wireless subscribers and 1.49 million wireline subscribers as of January 2018. As of March 2017, there were 5,788 post offices in the state. Airtel launched 4G services in the states with special focus on Hyderabad. Other players such as BSNL & Aircel are also entering in the 4G business of the state. In November 2016, Telangana State Road Transport Corporation, in conjugation with Airtel, announced Wi-Fi services for passengers of metro luxury buses. In December 2016, telecom company Idea announced investment of US$ 14.7 million for developing 4G infrastructure in Telangana. In order to provide broadband services to consumers in the state, Bharat Sanchar Nigam Ltd. (BSNL) is tying up with local cable operators. As of May 2017, the company already tied up with operators in Warangal and Karimnagar. Telecom Infrastructure (As of December 2017) 1 Wireless subscribers 84,639,369 Wireline subscribers 1,492,315 Tele density (in %) 96.03 Performance status of NOFN project (as of December 2017) No. of GPs in Phase-I 2,017 Pipe laid (kms.) 4,538 Cable laid (kms.) 4,488 GPs for which cable laid 2,038 No. of GPs Lit 206 Note: 1 For undivided state Source: Telecom Regulatory Authority of India, Ministry of Communications & Information Technology, Telangana Statistical Yearbook 2015 26
SOCIAL INFRASTRUCTURE EDUCATION (1/3) Telangana s share in educational institutions includes: 3 central universities located in Hyderabad: University of Hyderabad, English & Foreign Languages University & Maulana Azad National Urdu University. Technological institutes such as IIT, IIIT & NIT. Nalsar Law University, Indian School of Business as well as private institutes such as Symbiosis & TISS are located in the locality of Hyderabad. Under State Budget 2018-19, allocations of Rs 10,830 crore (US$ 1.68 billion) and Rs 2,448 crore (US$ 379.83 million) were made for for school education and higher education, respectively. As of March 2017, to create awareness & encourage the students, the state government has decided to give US$ 2,974.86 as incentive to each of those students who have secured admission in the National Defence Academy & have successfully completed their training. Literacy rates (%) Literacy rate 66.5 Male literacy 74.9 Female literacy 57.9 Year-wise Enrolment Details Year No. of schools Class 6-10 Enrolment Intermediate Total Strength 2015-16 182 72,283 13,897 86,180 2016-17 192 86,827 21,049 1,07,876 2017-18 194 91,919 33,711 1,25,630 Note: IT- Indian Institute of Technology, IIIT- International Institute of Information Technology, NIT- National Institute of Technology, Source: Census 2011, Telangana Socio-Economic Survey 2018, State Budget 2018-19, New Articles 27
2014-15 2015-16 2016-17 2017-18* 33.27 62.27 68.35 133.13 SOCIAL INFRASTRUCTURE EDUCATION (2/3) As per budget 2017-18, the state government plans set up a total of 119 new English medium residential schools in the state, which would provide quality education to more than 75,000 students. T-Hub, a start-up incubator launched by the Telangana Government in March 2017, entered into an agreement with Anthill, a Hyderabadbased speed scaling platform for early-growth stage start-ups, to launch an international start-up initiative, the Smart Women Angels Network (SWAN). In May 2017, the state government announced its plan to hire 11,428 Vidya volunteers and 8,792 teachers in the academic year of 2017-18, with an aim to fill the vacant seats for teachers in various schools and universities across the state. Central funds released under Sarva Shiksha Abhiyan (US$ million) 140.0 120.0 100.0 80.0 60.0 40.0 In June 2017, the National Institute of Tourism & Hospitality Management (NITHM) signed a Memorandum of Understanding with the Indian Overseas Bank Gachibowli Branch to facilitate education loans to the students, without any guarantee or collateral security. 20.0 0.0 Government of India released Rs 440.50 crore (US$ 68.35 million) under Sarva Shiksha Abhiyan for Telangana in 2017-18*. Note: 2017-18* - up to december 26, 2017 Source: State Budget 2016-17, 2017-18 28
SOCIAL INFRASTRUCTURE EDUCATION (3/3) Proposed medical colleges in Telangana with investment (US$ million) Construction of medical college and hospital at Nizamabad 15.26 Construction of new nursing college at Adilabad 0.11 Construction of new nursing college at Warangal 0.10 Construction of medical college and chest hospital, Hyderabad 0.06 Construction of nursing college and hostel at Gandhi Hospital Premises, Secunderabad 0.33 Construction of nursing college, Hyderabad 1.38 RIMS medical colleges 1.95 Source: Telangana State Statistical Abstract 29
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. Some of the initiatives by the state government to promote the healthcare sector are as follows: To double the budget allocation for the healthcare sector from the present 2% & increase public health delivery services. Supporting private players who are willing to invest in the healthcare sector. The government announced investment of US$ 16.58 billion for establishment of super speciality hospitals in the state, till 2019. The upcoming hospitals would be based on the same pattern as Nizam's Institute of Medical Sciences (NIMS) of Hyderabad. In January 2017, Telangana tied up with Cerestra Advisors to set up country s 1st Life Sciences Infra Fund, with a corpus of US$148.74 million. The state government in February 2017, launched an initiative RICH Research & Innovation Circle with an initial investment US$7.43 million to make research establishments such as CCMB, IICT, LV Prasad Eye Institute and ICRISAT. In June 2017, the state government inaugurated the largest dedicated medical devices park of the country. Companies such as Apollo Hospitals, Cyient Ltd. Sandor Medicaids, and 11 other companies have already been allocated 50 acres in the 250-acre park in Sultanpurof Sangareddy district. Health infrastructure (as of May 7, 2018) Primary health centres 837 Sub centres 4,745 Community health centres 96 Sub District hospitals 57 District hospitals 15 Budget allocation for health US$ million 2016-17 910.55 2017-18 927.58 2018-19 1,143.52 Source: Department of Health, Medical & Family Welfare & National Health Mission, Government of Telangana, Telangana Budget 2016-17 As per State Budget 2018-19, the government is conducting free medical tests to prevent diseases. Also, the government will undertake free eye checkups and provide spectacles free of cost. 30
SOCIAL INFRASTRUCTURE HEALTH (2/2) The state government proposed an endowment of US$ 91.65 million for purchase or replacement of equipment, US$ 48.27 million for implementing repair of civil works, purchase of diagnostic equipment, etc. and US$ 24.37 million for buying drugs, disposals and surgical, as per budget 2016-17. Distribution of district hospitals, area hospitals & CHCs in Telangana Further, an amount of US$ 890.77 million was allocated to Medical and Health Department for fulfilling the growing needs of healthcare during 2017-18. In March 2017, Telangana was the best performing state pan India under Mission Indra Dhanush, since its implementation in December 2014. The mission aims at immunizing infants below two years of age and pregnant women against seven vaccine preventable diseases. Primary hospitals in Telangana, by district Hyderabad Mehbubnagar Warangal Nalgonda Adilabad Karimnagar Medak Khamman Ranga Reddy Nizamabad 40 52 57 75 72 72 71 67 85 84 0 20 40 60 80 100 Note: CHC: Community Health Centres Source: Department of Health, Medical & Family Welfare & National Health Mission, Government of Telangana 31
INDUSTRIAL INFRASTRUCTURE (1/2) The secondary sector accounted for around 14.80 per cent share in overall GVA of the state during 2017-18. In the State Budget 2018-19, the Government of Telangana proposed an investment of Rs 1,286 crore (US$ 199.53 million) for industry and commerce. The Telangana Government plans to encourage an industrial corridor. This industrial corridor would be in between Hyderabad & 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. With the launch of the Industrial policy in the state, all clearance certificates are being easily issued to around 1,609 units in the state involving an investment of US$ 5.06 billion. 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 74,133.18 acres with 13,165 units (enterprises). Under TSIIC, for the execution and monitoring of Infrastructure projects in the state, the government sanctioned an investment of US$ 1.65 million. Distribution of industrial parks in Telangana These clearances have generated an employment potential of 120 thousand during 2015-16 in the state. Across 100 approvals from 1,609 units are associated with the medium & large industrial units and have generated the employment potential of around 34 thousand with an investment of US$ 1.29 billion. Further, for establishing three Aerospace parks in the state, the state government has been depicting various proposals out of which the construction work of NIMZ phase-i is projected to be accomplished during 2016-17. Note: CETP- Common Effluent Treatment Plants, TSDF- Treatment Storage Disposal Facility, TSIIC-Telangana State Industrial Infrastructure Corporation Source: Telangana State Statistical Year Book, 2015, Economic Survey 32
INDUSTRIAL INFRASTRUCTURE (2/2) Industrial Parks in Telangana Industrial park name No of plots No of sheds Vacant area (sq. m) Proposed industries Jeedimetla 250 0 1,222,765 Automotive based industries, general engineering, steel re rolling, R&D of biotech, pharmaceuticals, vaccines Karimnagar 2 0 2,136 General Patancheru 68 15 345,963 Textile, cargo, edible oils Shamshabad 376 11 2,098,571 Aerospace, solar equipment, electronic hardware Warangal 57 1 101,874 IT & ITeS, general Prime Minister's Employment Generation Programme (PMEGP) schemes in Telangana Year Margin money subsidy released US$ million Margin money subsidy utilised US$ million Number of projects assisted Estimated employment generated (no. of persons) 2014-15 3.24 3.13 604 6,604 2015-16 3.20 3.39 660 7,761 2016-17 2.99 3.82 664 6,445 2017-18* -0.31 0.18 934 304 Note: (1) As of July, 2015, ( 2)As of June 2016, 2017-18* - Up to January 2018 Source: Telangana State Industrial Infrastructure Corporation (TSIIC), Ministry of Micro, Small and Medium Enterprises 33
AMRUT AND SMART CITIES (1/2) As of January 2018, 2 cities of Telangana namely Karimnagar and Warangal are to be developed as smart cities. 12 cities of the Telangana state have also been 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. US$ 1.05 million was allocated to the state of Telangana for administrative & office expenses (A&OE) in order to prepare the Service Level Improvement Plan (SLIP)/Capacity Building (CB). In July, 2015, the Ministry of Urban Development of Government of India released US$ 0.46 million as advance for the 11 cities under Atal Mission for Rejuvenation & Urban Transformation (AMRUT) guidelines. In March 2017, as an initiative to make the city slum free, the state government announced its plans to hasten the 2-bedroom permanent housing projects on 600 acres of land situated on the outskirts & to complete skyways in municipal areas. 34
AMRUT AND SMART CITIES (2/2) Cities/towns in Telangana covered under AMRUT S. No. City/town 1. Khammam Karimnagar Greater Warangal 2. GHMC 3. Warangal 4. Nizamabad 5. Karimnagar 6. Ramagundam Source: Aranca Research 7. Mahbubnagar 8. Nalgonda Smart cities in Telangana S. No. City/town Karimnagar 261,185 9. Adilabad 10. Suryapet 11. Miryalaguda Greater Warangal 819,406 12. Siddipet 35
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. Micro, small and medium enterprises are also strengthening the economic growth of the state. Since June 2014, 13,671 MSME units have been established in the state with a cumulative investment of Rs 7,130 crore (US$ 242.32 million) which generated employment of 1,45,512. 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. 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 & Self Certification Systems is expected to increase the investments in the state coming years. As per state budget 2018-19, the work on establishment of a new eco-pharma city is under process. Moreover, Government of India has also provided the state government with final approval for establishing a food park across the district of Khammam in coming years. Key industries in Telangana Information technology Pharmaceuticals manufacturing Tourism Textile Mines and minerals Source: Socio Economic Outlook 2015, Government of Telangana, MSME- Micro, Small and Medium Enterprises Incentives for micro & small enterprises from the Government of Telangana: 100% reimbursement of stamp and transfer duty on the purchase of land for industrial use 100% reimbursement of Stamp duty for lease of land/shed/ buildings and also mortgages and hypothecations 25% rebate in land cost limited to US$ 16.58 thousand in industrial estates/ industrial parks 36
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. Telangana was the first state in India to initiate e-governance projects in India. IT and ITeS exports from Telangana grew 13.85 per cent compared to India s export growth of 7.41 per cent in FY17. In FY17, Telangana s exports of IT and ITeS reached US$ 12.74 billion. As of December 2017, out of the 274 formally approved IT SEZs in India, 22 are situated in Telangana. 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. In 2016, the state government had signed an MoU to explore cloud, machine learning with Microsoft Corporation, India, to improve healthcare and agriculture sectors in the state of Telangana. In August 2017, Telangana adopted Microsoft cloud and became the first state to use Artificial Intelligence for eye care screening for children. IT & ITeS exports from Telangana (US$ billion) 2016-17 Exports 12.74 IT Units 1,500 Source: Telangana socio-economic outlook 2017, IT/ITeS: Information Technology/Information Technology enabled Services Sector, (1) For 2015-16 Under the Department of Information Technology, Electronics & Communications, the Government of Telangana has introduced Telangana IT Policy, 2016 in April 2016 for uplifting the performance of the sector in the state. As of September 2017. the State Government is setting up an Information Technology hub in Nizamabad district with an investment of US$ 3.89 million. The necessary infrastructure and an incubation centre will be established in the hub. The state government has set a target of connecting its 23 million residents via internet, by 2018. 37
KEY INDUSTRIES INFORMATION TECHNOLOGY (2/2) Google 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. The campus was inaugurated in 2016. Microsoft One of Microsoft Alum s accelerator startup has tied up with Telangana Government to launch T- Wallet, enabling cashless payments for the residents. In August 2017, Government of Telangana has adopted Microsoft s cloud based analytics to provide eye care screening for children. Amazon In September 2017, Amazon decided to open its largest fulfilment centre in Hyderabad. The centre is operational and is spread over an area of 400,000 sq ft. Facebook Facebook is a US-based online public networking provision company with set-ups in India. In December 2016, the company decided that its first office in Asia will be in Hyderabad. Facebook India has designed a programme to strengthen Digital India and Skills India initiatives of the Government of India. Facebook s Small Business Boost initiative was inaugurated by Telangana s IT Minister K T Rama Rao in Hyderabad in August 2015. The programme aims to train more than half a million people by 2020. As of November 2017, the company has already trained more than 60,000 small businesses. 38
KEY INDUSTRIES PHARMACEUTICALS (1/2) Hyderabad accounts for about 20% 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 2014-15, Telangana had about 429 and 185 pharma companies and bulk drug units, respectively. Funds for procurement for drugs & supplies under NRHM and RCMEH in Telangana 2016-17 (US$ million) Approved Expenditure 1 9.20 2.40 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 grew 17% in 2016-17, indicating the potential in Telangana. As per the socio-economic survey 2016-17, at a projected cost of US$ 2.0 billion, the Hyderabad Pharma City is being developed, which will be the first of its kind, smart ecosystem creating a new international benchmark for Sustainable Industrial cities. In June 2017, the state government has announced plans to set up a life sciences infrastructure fund with a corpus of US$ 148.73 million. The funds collected will be used to create a modular plug-and-play specialised infrastructure for pharmaceuticals, biotechnology and medical devices industry. Source: Ministry Of Health And Family Welfare, Government of India,State Portal & News articles, Telangana socio-economic outlook 2017 39
KEY INDUSTRIES PHARMACEUTICALS (2/2) Dr Reddy s Aurobindo Pharma Dr Reddy s initiated its business processes as an Active Pharmaceutical Ingredients (API) producer in 1984 and added formulations procedures in 1987. The enterprise entered in to international markets in 1991. In 2013-14, the company works with 50 R&D associates through out the world, having three major clusters in the US, Western Europe and India. In 2016-17, the company generated revenues of US$ 2,185.54 million. In Q1 FY18, the company recorded revenues of US$ 515.31 million Aurobindo Pharma was established in 1986 and turn into a public listed company in 1995. The corporation trades its drugs to 125 countries and derives more than 70% 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 2016-17, the company generated revenues of US$ 2,342.16 million. In H1 FY18, the company recorded revenues of US$ 1.2 billion Divi's Laboratories 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. In 2016-17, the company generated revenues of US$ 642.86 million. In H1 FY18, the company recorded revenues of US$ 266.2 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 expansion of business. In 2016-17, the company generated revenues of US$ 222.78 million. In H1 FY18, the company recorded revenues of US$ 119.9 million 40
KEY INDUSTRIES TOURISM (1/3) Dynasties such as Sathavahanas, Kakatiyas, Chalukyas, Qutubshahis, Mughals & Asafjahis have ruled the state of Telangana. Hyderabad, the capital of Telangana, is highly popular for Charminar, Golconda Fort, pearls & biryani. The Kakatiya track with Warangal & Karimnagar are recognised as highly popular tourist places. Jinnaram near Kawal Tiger Sanctuary & the lake resorts at Kadem (Adilabad) & 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 Ltd. (TSTDC), under the Companies Act 2013. The state's archaeology department in March 2017, discovered & unearthed the world's largest capstone weighing of 40 tonnes, after excavating an ancient human burial site in Narmeata village in Siddipet district 2017 2016 2015 Number of tourist arrivals (millions till October 2017) 53.5 95.2 94.6 The Government of Telangana has set up Yadagirigutta Development Authority (YDA) for maintaining the historic Hindu & Jain monuments at Yadagirigutta & nearby regions. As per budget 2016-17, for renovation & renewal of historic temples in the state, the state government proposed an outlay of US$ 7.63 million as a one time grant during 2016-17. Moreover, the state government allocated an amount of US$ 35.44 million for the development of tourism & culture department during 2016-17. The total number of tourist arrivals reached 53.5 million till October 2017. 2014 2013 2012 2011 72.5 54.2 91.7 49.7 0 20 40 60 80 100 Source: News Articles, Telangana State Statistical Year Book, 2015 41
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 0.29 0.23 0.22 0.47 0.57 0.70 0.72 0.75 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 32.1 43.0 50.6 50.5 50.4 51.5 49.4 54.0 72.3 91.4 94.5 95.2 KEY INDUSTRIES TOURISM (2/3) Key tourist spots Monuments Number of domestic tourist arrivals in Telangana (million) Charminar Golconda Fort Qutb Shahi Tombs Chowmahalla Palace Falaknuma Palace Bhongir Fort Ramoji Film City 100.0 80.0 60.0 40.0 20.0 0.0 Religious Tourism Thousand Pillar Temple Bhadrachalam Temple Number of foreign tourist arrivals in Telangana (million) Nelakondapalli Dhulikatta Phanigiri Kolanpaka Mecca Masjid Others Kuntala waterfall Pochera waterfalls 0.800 0.700 0.600 0.500 0.400 0.300 0.200 0.100 0.000 0.15 0.18 0.12 0.14 0.07 Nirmal Paintings Source: News Articles, Telangana State Statistical Year Book, 2015 42
KEY INDUSTRIES TOURISM (3/3) Initiatives undertaken by the Government of Telangana: The Telangana government has introduced a 24x7 international toll free multi-lingual tourist help line. The helpline handles ten international languages and provides information relating to travel and tourism in India to the tourists. In January 2018, to promote heritage, tourist destinations, culture and other aspects and attract more tourists to the State, Telangana Tourism has started playing audio-video clips on LED screens in the Hyderabad. From November 2017, Telangana Tourism has launched cruise trips between Nagarjunasagar-Srisailam through the picturesque Nallamalla forest range. Telangana State Tourism Development Corporation (TSTDC) maintains Haritha Hotel chains, wayside amenities, river cruises and water fleet in different locations and also organizes tourist packages which connect to the neighbouring states. To attract more tourists to the state, Telangana government has started advertising on aircraft. The state expects to witness more interstate and international tourists after the promotion campaign. Source: News Articles, Telangana State Statistical Year Book, 2015 43
KEY INDUSTRIES MINES AND MINERALS (1/2) Granite, coal, lime stone, bauxite and mica are the major mineral resources in Telangana. Adilabad, Karimnagar, Khammam and Warangal are the largest producers of coal in the state of Telangana. The state have high volumes of limestone deposits, which gratify various cement factories in the region. 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. 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. 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. There are over 3,000 operational mining leases in Telangana. District Adilabad Bhadradri- Kothagudem Jagityal Jayashankar Jogulamba-Gadwal Khammam Komaram Bheem Mahabubabad Mahbubnagar Mancherial Medak Nalgonda Peddapalli Suryapet Vikarabad Wanaparthy Major Minerals Manganese Garnet, Stowing Sand, Coal Iron Ore, Manganese, Limestone Iron Ore, Coal, Stowing Sand Limestone Iron Ore, Coal Limestone, Coal Iron Ore Gold, Diamond Limestone, Coal, Stowing Sand Amethyst, laterite, Granite Limestone, Gold, Diamond Limestone, Iron Ore, Coal, Stowing Sand Limestone, Gold, Diamond Limestone Limestone Source: Indian Mineral Scenario States, Ministry of Mines, ASSOCHAM India, Telangana minerals Department 44
KEY INDUSTRIES MINES AND MINERALS (2/2) Coal industry is one of the prime segments for Telangana minerals & mines sector. Telangana coal deposits account for 20% share in India s coal deposits. In 2015, a new website for Online Sand Sale Management & Monitoring System was started & is being developed by Telangana State Mineral Development Corporation. The purpose of this website is to identify illegal mining of natural resources & maintain records of the revenues of the mining sector. Production of minor minerals, 2016-17 Minerals Unit Production (tonnes) Barytes Tonnes 13,105 B.Granite (2) Cubic meter 136,992 C. Granite (2) Cubic meter 377,365 Dolomite Tonnes 4,43,823 Gravel / Earth (2) Cubic meter 17,021,456 Feldspar Tonnes 6,76,811 Fuller's earth (2) Tonnes 277,025 Latarite Tonnes 36,79,879 L. stone slabs (2) Meter Square 1,360,770 Production of major minerals, 2016-17 Minerals Production (tonnes) Coal 6,08,09,502 Dolomite 4,43,823 Feldspar 6,76,811 Garnet(2) 9 Latarite 36,79,879 Lime Stone 2,53,83,744 Manganese ore 10,187 Quartz 6,13,876 Shale 32,100 Stowing Sand 23,08,446 White clay 65,149 Note: (2) For 2015-16 Source: Telangana Socio Economic Outlook 2017, Indian Bureau of Mines Mosaic chips (2) Tonnes 14,890 Road metal (2) Cubic meter 20,786,426 Ordinary sand (2) Cubic meter 1,618,019 Note: (2) For 2015-16 Source: Ministry of Commerce and Industry, Government of India, Telangana Socio Economic Outlook 2017 45
KEY INDUSTRIES APPARELS AND TEXTILES (1/2) Cotton is grown in almost all districts of the state except Hyderabad & Nizamabad. The state had 10 lakh spindles as of 2016-17. Out of these spindles, about 8 lakh spindles utilise cotton & the rest use synthetic & viscose fibres. In 2014-15, under Integrated Textile Park scheme, the state government proposed to set up 2 textile parks in Warangal & Sircilla cities. These cities are based in Karimnagar district. Both parks will be established similar to the parks present at Tirupur in Tamil Nadu. The Government of Telangana sought authorisation from the central government for the conversion of forest area in Warangal, which is the largest cotton producing district in the state, into a mega textile park. As per the Budget 2018-19, the work on Kakatiya Mega Textile Park in Warangal has initiated & is under process. The textile park is being built over an area of 1,190 acres at a cost of Rs 1,075 crore (US$ 166.80 million). The park is expected to attract investments worth Rs 9,000 crore (US$ 1,396.43 million) over the next five years. As of March 2015, a new textile policy was introduced in Telangana. Purpose of this policy is to provide special incentives to the textiles sector. In 2017-18, up to November, the state produced 56 metric tonnes of raw silk. In order to promote the textile sector in the state, the Government of Telangana is working on a new textile policy to attract investments in the sector. Proposed textile parks in Telangana Location Pochampally Handloom Park Limited Kanumukkala,Nalgonda Avantika Textile Park Medak Telengana Kakatiya Mega Textile park Warangal Handloom Weaver Cooperative Societies* No. of Handloom Weaver Cooperative Societies 627 No. of weaver members 82,438 No. of working handlooms Geo-tagged 16,879 No. of Powerlooms existing 49,112 Source: State Budget 2018-19, Silk Board, News Articles, *Telangana Socio-Economic Survey 2018 46
2016-17 2017-18 KEY INDUSTRIES APPARELS AND TEXTILES (2/2) As per the state budget 2017-18, financial assistance to the handloom weavers in Telangana was increased to US$ 4.5 million in FY18 from US$ 4.2 million in FY17. As of June 2017, the state had over 30 operational textile mills. FDI in the textile sector in Telangana increased by 13.14% to US$ 1.55 million in FY17 from US$ 1.37 million in FY16. The Government of Telangana had announced setting up of a mega textile park in Warangal in January 2016. The foundation stone for the Kakatiya mega textile park was laid in October 2017. The project is a fibre-to-fabric integrated textile cluster proposed to be built on 1,200 acres of land near Shayampet in the Warangal district. It is expected to generate 27,000 direct and 50,000 indirect jobs in the state. The Government of Telangana and Kay Ventures Private Limited signed a MoU of Rs 100 crore (US$ 15.45 million) for setting up a apparel superhub on a 20 acres land in Siricilla. It is expected to generate employment for 15,000 people. Financial assistance to the handloom weavers (in US$ million) 4.5 4.5 4.5 4.4 4.4 4.3 4.3 4.2 4.2 4.2 4.1 4.1 4.0 Source: Telangana Annual Plan, 2015-16, budget 2017-18 47
KEY APPROVALS REQUIRED List of approvals and clearances required Incorporation of company Registration, Industrial Entrepreneurs Memorandum, industrial licences Permission for land use Department Registrar of Companies Commerce and Industries Department Allotment of land Site environmental approval No-objection Certificate and consent under Water and Pollution Control Act Registration under States Sales Tax Act and Central and State Excise Act Commercial taxes Telangana Pollution Control Board Excise Department 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 48
CONTACT LIST Agency Description 6th Floor, Parisrama Bhavan, Fateh Maidan Road, Basheerbagh, Hyderabad 500 004, Telangana, India Telangana State Industrial Infrastructure Corporation (TSIIC) Ph: +91-40-23237625, 23237626 Fax: +91-40-23240205, 23241385 Website: https://tsiic.telangana.gov.in/ email: hyd@apiic.in Vidyutsoudha, Khairatabad, Hyderabad-500 082, Telangana State Power Generation Corporation (TSGENCO) Telangana, India Phone: 040-23499000/39839000 Fax: 040-23499101 email: contactus@tsgenco.gov.in Telangana Pollution Control Board Telangana Pollution Control Board Payavaran Bhawan, A-III, Industrial Estate, Sanath Nagar, Hyderabad - A.P. Website: http://tspcb.cgg.gov.in/default.aspx email: eew_ss@pcb.ap.gov.in 49
COST OF DOING BUSINESS IN Parameter Cost estimate Land price (US$ per sq m) 3.6 254.6 Labour cost (minimum wages per day) US$ 2.9 22.7 Commercial lease rent (US cents per sq ft per month) 5.4 714.3 Electricity (US cents per kwh) Commercial: 9.5 19.4 Industrial: 8.1 11.9 Residential rent (US cents per sq ft per month) 6.7 40.0 Five-star hotel room (US$ per night) 58 330 Water cost (US$) Industrial: 0.8-3 per 1,000 litres Commercial: 0.7-3 per 1000 litres Source: Telangana State Electricity Regulatory Commission, Ministry of Labour, Telangana State Portal, Property sites, News articles, Travel sites 50
STATE ACTS & POLICIES (1/3) Objectives To promote regionalised and dispersed generation of solar energy. The Telangana Solar Power Policy 2015 Effective energy conservation by the stimulation of connected grid and off-grid solar tenders. Endorsement of all skills related to solar power generation. Addition of solar parks Read more Telangana Full Fee Reimbursement Policy 2015 To confirm a uniform scholarship for each category of study, as well as vocational training, which is independent of the fees charged. To guarantee that fees are lower than the subsidy quantities to help students to meet their living expenses. Read more The New Industrial Policy 2014 To improve 6 industrial corridors with emphasis on main industrialised sectors, with life sciences, IT and hardware being the major benefactors. To certify viable & comprehensive industrial development. Read more Cyber Security Policy To build capacity and protect critical information infrastructure. 2016 To establish requisite institutions and legal framework to counter cybercrime. Read more IOT (Internet of Things) Policy To create an atmosphere conducive for IoT specific businesses and manufacturing units to thrive in the State To position Telangana as a test bed for IoT solutions Read more 51
STATE ACTS & POLICIES (2/3) Objectives Telangana ICT Policy 2016 To make Telangana the most favoured destination for the IT companies. Read more To position the state among the leading global hubs for innovation and technology entrepreneurship in the country. Telangana Electronics Policy 2016 To entice US$ 3 billion funds for the Electronics sector through 2020. To develop an employment potential of around 160 thousand by 2020. Read more Telangana Innovation Policy Gaming and Animation (IMAGE) Policy Textile and Apparel Incentive Scheme 2017 To boost the start-ups present across the social & rural enterprises by the provision of additional incentives to them. To endorse the innovative ideas through positive industrial engagement. Read more To make Hyderabad the most favored destination for investment in Animation, Visual effects, Gaming & Comics sector To set up a Center of Excellence i.e. Telangana Animation and Gaming - IMAGE City, with state-of-the-art facilities Read more To create an enabling environment in order to encourage investments in downstream processing activities. To support the existing units for their modernization, expansion, and for marketing and promotion activities. To encourage new units across the value chain. Read more E Waste Management Policy To create a vibrant e-waste refurbishing and recycling ecosystem in the State. To assist the highly unsafe unorganised sector transition into the organised sector through various initiatives. Read more 52
STATE ACTS & POLICIES (3/3) Objectives Telangana Excise Policy 2017-19 To standardise the process of collection of certain fees from suppliers and others. To restructure administrative units due to introduction of new districts in the state. Read more Telangana State Food Processing and Preservation Policy To develop capacity for processing major commodities up to international standards To build clusters with collaboration between government, industry and academia To position Telangana as the agri-food distribution hub for the country To drive the national objective of doubling farmer incomes by 2022 To generate employment for 1,25,000 personnel by 2022 Read more Upcoming Policies: Telangana Electric Vehicles Policy Telangana Retail Policy Short term Agriculture and Allied Industries Policy Registration Policy 53
EXCHANGE RATES Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year) Year INR INR Equivalent of one US$ Year INR Equivalent of one US$ 2004 05 44.95 2005 06 44.28 2006 07 45.29 2007 08 40.24 2008 09 45.91 2009 10 47.42 2010 11 45.58 2011 12 47.95 2012 13 54.45 2013 14 60.50 2014-15 61.15 2015-16 65.46 2016-17 67.09 2017-18 64.45 2005 44.11 2006 45.33 2007 41.29 2008 43.42 2009 48.35 2010 45.74 2011 46.67 2012 53.49 2013 58.63 2014 61.03 2015 64.15 2016 67.21 2017 65.12 Source: Reserve bank of India, Average for the year 54
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