ANDHRA PRADESH - IBEF › download › Andhra_pradesh_190111.pdf · Andhra Pradesh –State Profile...
Transcript of ANDHRA PRADESH - IBEF › download › Andhra_pradesh_190111.pdf · Andhra Pradesh –State Profile...
ANDHRA PRADESHNovember 2010
2
Investment climate of a state
Resources/Inputs
Incentives to industryPhysical and social
infrastructure
Regulatory framework
• Skilled and cost-effective labour
• Labour market flexibility
• Labour relations
• Availability of raw materials and natural
resources
• Tax incentives and exemptions
• Investment subsidies and other incentives
• Availability of finance at cost-effective terms
• Incentives for foreign direct investment (FDI)
• Profitability of the industry
• Procedures for entry and exit of firms
• Industrial regulation, labour regulation, other
government regulations
• Certainty about rules and regulations
• Security, law and order situation
• Condition of physical infrastructure such as
power, water, roads, etc.
• Information infrastructure such as telecom, IT,
etc.
• Social infrastructure such as educational and
medical facilities
Investment climate of a state is determined by a mix of factors
ANDHRA PRADESH November 2010
3
Contents
Advantage Andhra Pradesh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Andhra Pradesh
ANDHRA PRADESH November 2010
4
Andhra Pradesh – State Profile
• Covering an area of 275,100 sq km, Andhra Pradesh is the fourth-largest state in India after Rajasthan, Madhya Pradesh and Maharashtra. It falls in the Southern peninsula of India and has a coast line of 974 km.
• The state has 23 administrative districts. Hyderabad is the capital city. Visakhapatnam, Vijayawada, Tirupati, Warangal, Guntur, Kakinada, Nellore and Kurnool are the other key cities in the state.
• Andhra Pradesh has three major rivers, viz., the Godavari, the Krishna and the Thungabhadra.
• There are seven agro-climatic conditions and a variety of soils to support the cultivation of wide range of crops.
• The most commonly spoken language of the state is Telugu. Hindi, English and Tamil are the other languages used.
Source: Maps of India
Andhra Pradesh November 2010
ADVANTAGE ANDHRA PRADESH
5
Hub for knowledge-based industries
Policy and fiscal incentives
Andhra Pradesh has emerged as a key state or the knowledge-
based industry including IT, pharmaceuticals and biotechnology.
It is also a leading agricultural state in the country. Over 70 of
the 500 top global corporations are present in the state.
The state offers a wide range of fiscal and policy incentives for
businesses under the Industrial Investment Promotion Policy,
2010-2015. Additionally, the state has well drafted sector-
specific policies.
Rich labour poolThe state has a large base of skilled labour, making it an ideal
destination for the knowledge sectors. Further, the state has
a large pool of semi-skilled and unskilled labour, especially, in
the 15 to 49 age group.
Advantage Andhra Pradesh … (1/2)
Source: Maps of India
ADVANTAGE ANDHRA PRADESH
Andhra Pradesh November 2010
6
Facilitating infrastructure
The state has well-developed social, physical and industrial
infrastructure and virtual connectivity, has good power, airport, IT
and port infrastructure.
High economic growth
The GSDP of the state is growing at compound annual growth
rate of 12 per cent annually. Vast natural gas reserves found in the
Krishna–Godavari basin have opened up immense possibilities for
the state economy.
Stable political environment
The state has a stable political environment with a single-party
government. The State Government is committed towards
creating a progressive business environment.
Advantage Andhra Pradesh … (2/2)
Source: Maps of India
ADVANTAGE ANDHRA PRADESH
Andhra Pradesh November 2010
7
Andhra Pradesh in figures … (1/2)
Parameter Andhra Pradesh All-states Source
Economy
GSDP as a percentage of all states‘
GSDP8.2 100.0 CMIE, as of 2007-08, current prices
Average GSDP growth rate (%)* 12.3 11.8 CMIE, 2000-01 to 2007-08, current prices
Per capita GSDP (US$) 990.0 992.5 CMIE, as of 2007-08, current prices
Physical infrastructure
Installed power capacity (MW) 13,409.4 159,398.5Central Electricity Authority,
as of March 2010
GSM cellular subscribers (No) 33,325,765 456,586,162Cellular Operators Association of India, as of
June 2010
Broadband subscribers (No) 400,663 4,981,976 As of October 2008
National highway length (km) 4,537.0 70,548.0Ministry of Road Transport & Highways,
Annual Report, 2008-09.
Major and minor ports (No) 1+13 12+187 Ministry of Shipping
Airports (No) 9 133 Industry sources
Social indicators
Literacy rate (%) 60.5 64.8 Census of India, 2001
Birth rate (per 1,000 population) 18.4 22.8Ministry of Health & Family Welfare, RHS
Bulletin, March 2008
ADVANTAGE ANDHRA PRADESH
* In terms of Indian rupee
Andhra Pradesh November 2010
8
Andhra Pradesh in figures … (2/2)
Parameter Andhra Pradesh All-states Source
Ease of doing business
FDI inflows (US$ billion) 4.8 120.2Department of Industrial Policy and
Promotion, April 2000 to May 2010
Outstanding investments (US$ billion) 146.1 1,972.6 CMIE, as of March 2010
Industrial infrastructure
PPP projects (No) 74 515 www.pppindiadatabase.com
SEZ (No) 22 121Functional as of August 2010,
www.sezindia.nic.in
Parameter Andhra Pradesh Government
Policy support
Sectors with specific policiesIndustry overall, biotechnology, Information and communication
technology, tourism, textile and apparel
Availability of labour Adequate skilled labour available
PPP: public private partnership, SEZ: special economic zone
ADVANTAGE ANDHRA PRADESH
Andhra Pradesh November 2010
9
Medium HighLow
Medium
High
*Factor advantage
Polic
y th
rust
*Factor advantages include benefits due to geographical location and availability of factors like talent pool, natural resources and capital
Key industries with policy thrust and factor advantages
ADVANTAGE ANDHRA PRADESH
Low
High
Textiles
and apparel
Agro and food
processing
IT and ITeS
Biotechnology
Bulk drugs and
pharmaceuticals
Industry attractiveness matrix
Andhra Pradesh November 2010
10
Contents
Advantage Andhra Pradesh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Andhra Pradesh
ANDHRA PRADESH November 2010
11
Socio-economic snapshot of Andhra Pradesh
Parameters Andhra Pradesh
Capital Hyderabad
Geographical area (sq km) 275,100
Administrative districts (No) 23
Population density (persons per sq km) 277
Total population (million) 76.2
Male population (million) 38.5
Female population (million) 37.7
Decadal population growth rate (%) 14.6
Sex ratio (females per 1,000 males) 978
Literacy rate (%) 60.5
Male (%) 70.3
Female (%) 50.4
Average life expectancy (years) 63.9
Sources: Andhra Pradesh Government (www.aponline.gov.in)
Director, Census Operations, A.P. Hyderabad
Directorate of Economics and Statistics, Hyderabad
CMIE
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
Andhra Pradesh November 2010
12
• At current prices, the Gross State Domestic Product (GSDP) was US$ 85.8 billion in 2009-2010.
• Between March 2000 and March 2010, the average annual GSDP growth was 12 per cent.
• This growth was primarily driven by the service sector and was supported by primary and secondary sectors.
Andhra Pradesh‘s GSDP (US$ billion)
Source: CMIE
Andhra Pradesh‘s GSDP
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
27.6 30.0 32.636.6
43.5 46.953.3
66.0
81.2 82.085.8
0.0
20.0
40.0
60.0
80.0
100.0
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
CAGR
12%
Andhra Pradesh November 2010
13
• At current prices the Net State Domestic Product (NSDP) of Andhra Pradesh was about US$ 76.9 billion in 2009-2010.
• The average NSDP growth rate between 1999-2000 and 2009-2010, was about 11.9 per cent.
Andhra Pradesh‘s NSDP (US$ billion)
Source: CMIE
Andhra Pradesh‘s NSDP
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
25.0 27.1 29.6 33.139.5 42.1
47.6
58.9
72.7 73.7 76.9
0.0
20.0
40.0
60.0
80.0
100.0
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
CAGR
11.9%
Andhra Pradesh November 2010
14
The tertiary sector has an increasing share in Andhra Pradesh‘s
economy
• In 2009-2010, at US$ 41.9 billion, the tertiary sector contributed 48.9 per cent to the GSDP (at current prices). It was followed by the primary sector, contributing 28.7 per cent (US$ 16.6 billion) and the secondary sector‘s contribution of 22.4 per cent (US$ 19.3 billion).
• During the period, secondary sector had largest growth of 12.8 per cent followed by tertiary sector (12.3 per cent) and primary sector (10.9 per cent).
Source: CMIE
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
31.6 28.7
21.0 22.4
47.4 48.9
0%
20%
40%
60%
80%
100%
1999-00 2009-10
Primary sector Secondary sector Tertiary sector
Percentage distribution of GSDP
CAGR
10.9%
12.8%
12.3%
Andhra Pradesh November 2010
15
Per capita GSDP
• The per capita GSDP of Andhra Pradesh increased almost 2.8 times from US$ 366.4 in 1999-2000 to US$ 1,025.6 in 2009-2010.
• A robust tertiary sector has helped Andhra Pradesh increase its average per capita GSDP by over 10.8 per cent between 1999-2000 and 2009-2010.
US$
Source: CMIE
Per capita GSDP
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
366.4 394.0 426.5471.6
553.1 589.4662.7
812.9
990.0990.0
1025.6
0.0
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
CAGR
10.8%
Andhra Pradesh November 2010
16
Industries in Andhra Pradesh
Key industries in Andhra Pradesh
• Agro and food-based industry
• Biotechnology
• Bulk drugs and pharmaceuticals
• IT and ITeS
• Mines and minerals
• Textiles and leather
• Tourism
• The natural resources, policy incentives and infrastructure in the state are favourably suited for investments in major sectors such as drugs and pharmaceuticals, biotechnology, IT and ITeS, mines and minerals, textiles, leather and tourism.
• Andhra Pradesh is one of the foremost states to have developed sector-specific policies.
• Forming industrial clusters and developing infrastructure has been a key strategy of the state to attract investments in various industries.
• Between August 1991 and September 2009, the state has received 6,689 proposal for large scale industries, of which, 2,931 have been implemented attracting investment of US$ 11.5 billion and providing employment opportunity to 437,344 people.
• Another 2,016 proposals with investment of US$ 60.4 billion are at various stages of implementation.
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
Andhra Pradesh November 2010
17
Andhra Pradesh – among the three largest food-grain producers
in the country
CropAnnual production
(‗000 tonnes)
Sugarcane 15,322.0
Rice 14,241.0
Maize 4,152.0
Cotton 3,462.0
Pulses 1,448.0
Groundnut 973.0
Chilly 729.0
Onion 728.0
Jowar 436.0
Greengram 149.0
Mesta* 2.94
• In 2008-09, total area in the state under production of food grains was 7.4 million hectors which remained stable over last three years.
• However, because of increased productivity, production of food grains increased from 19.8 million tonnes in 2007-08 to 20.4 million tonnes in 2008-09.
• Major food grains^ produced in the state are rice, maize, pulses and jowar.
• Other major crops produced were sugarcane, cotton, groundnut, chilly and onion.
• In 2007-08, Andhra Pradesh was among the three largest producers in the country of rice, maize, groundnut and sunflower seeds.
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
Source: Department of Agriculture, Government of Andhra
Pradesh, Socio Economic Survey 2009-2010
as of 2008-09
*A variety of Jute, in million bales
^Food grains include rice, jowar, bajra, maize, ragi, wheat,
pulses and other millets.
Andhra Pradesh November 2010
18
Andhra Pradesh‘s exports trends
• Andhra Pradesh‘s exports increased at a compound annual growth rate (CAGR) of about 26.6 per cent between 2001-02 and 2007-08.
• The state‘s major exports products are software and electronic parts which contribute around 50 per cent of exports. Engineering goods, drugs and pharmaceuticals, leather, animal and marine products, and agriculture and agro-based products are other major export items.
• In order to boost exports from Andhra Pradesh, the State Government offers a special package of incentives to the export oriented units (EOU). Source: Capital Markets
Annual exports growth trends (%)
16.2
26.0
23.5
3.8
29.7
50.3
21.3
0 10 20 30 40 50 60
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
Export package to EOUs under the Industrial policy
• Sales tax exemption on purchase of raw materials.
• Financial assistance through Andhra Pradesh State Financial
Corporation (APSFC) at concession rates.
• Grant of 30 per cent on ground rent for participation in the
international trade fairs, subject to a maximum limit of nine sq m.
Andhra Pradesh November 2010
19
• According to the Reserve Bank of India, FDI inflows from April 2000 to May 2010 amounted to US$ 4.8 billion.
• The state has had a healthy FDI inflow over the years, primarily, in sectors related to IT and ITeS, automotive, engineering and electronics.
• Of the total outstanding investments of US$ 146.1 billion as of March 2010, Andhra Pradesh had a well balanced distribution by sectors with manufacturing, electricity, services, irrigation and construction sharing project investments of about 16 per cent to 32 per cent each.
Investments and FDI inflows
Break up of investments by sectors as of March 2010
^Excluding financial services
Source: CMIE
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
22.5%
4.1%
31.8%
23.8%
16.5%
23.8%Manufacturing
Mining
Electricity
Services^
Irrigation
Construction
Andhra Pradesh November 2010
20
Contents
Advantage Andhra Pradesh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Andhra Pradesh
ANDHRA PRADESH November 2010
21
• As on March 2009, Andhra Pradesh has 17 National Highways running through it and covering 4,537 km.
• Roads under the State Road and Building Department was 69,051 km.
• As on March 2009, road density per thousand population was 0.86 km.
• As of August 2010, there were 41 public-private partnership (PPP) projects in the roads sector that are at various stages of development.
Road network
Source: Maps of India
INFRASTRUCTURE STATUS
Andhra Pradesh November 2010
22
• Andhra Pradesh has a total railway network of 4,287.4 km, which is under the control of the South Central Railway with Secunderabad as the headquarters.
• The state has a total of 748 railway stations. The rail network comprises of 4,102.7 km of broad gauge and 184.7 km of metre gauge tracks.
• When completed, the Mass Rapid Transit Service (MRTS) project is expected to carry about 1.5 million passengers per day by 2015 and 2.2 million passengers per day by 2025.
• The total cost for the MRTS project has been estimated at US$ 2.6 billion. The Central Government has already sanctioned 20 per cent of the project cost through the viability gap funding (VGF) mode.
Sources: South Central Railways website,
http://scrailway.gov.in, AP Admin setup, Directorate of
Economics and Statistics website, www.apdes.ap.gov.in,
Project description, Hyderabad metro rail website,
www.hyderabadmetrorail.in
Railway network … (1/2)
South Central Railway network
Division Broad
gauge
Metre
gauge
Total
Secunderabad 1,311.2 0.0 1,311.2
Vijaywada 945.8 0.0 945.8
Guntakal 1,121.6 184.7 1,306.2
Guntur 617.2 0.0 617.2
Hyderabad 569.6 0.0 569.6
Nanded 823.0 175.9 998.9
Total 5,388.3 360.6 5,748.9
INFRASTRUCTURE STATUS
Andhra Pradesh November 2010
23
• The state is the first to have a PPP Metro Rail project sanctioned by Government of India.
• The metro rail project is environmental friendly and is expected to reduce pollutants by about 3,100 tonnes per annum (TPA).
• In September 2010, construction work of the project has been awarded to Larsen & Toubro Limited through competitive bidding process.
Railway network … (2/2)
INFRASTRUCTURE STATUS
Andhra Pradesh November 2010
24
Airports
• The state has an international airport at Hyderabad and domestic airports at Visakhapatnam, Tirupati, Rajahmundry, Warangal, Vijayawada, Donakonda, Kadapa and Puttaparthy.
• Hyderabad is connected to several key international destinations such as Amsterdam, Bangkok, Chicago, Frankfurt, Dubai, Singapore, Sharjah, London and Kuala Lumpur, besides all major destinations across India.
• The Rajiv Gandhi International Airport near Shamshabad (about 27 km from Hyderabad) is a newly completed airport. It has replaced the former international airport of the city at Begumpet.
• The total cost for this project was US$ 560 million, it has been built on an area of 5,449 acres.
GMR-Hyderabad International Airport Limited
(GHIAL), Shamsabad
Started operations in May 2008.
Constructed by the consortium of:
• GMR group
• Malaysia Airport Holding Berhad (MAHB)
• Government of Andhra Pradesh
• Airports Authority of India
Single terminal, expandable structure
Final capacity of 40 million passengers per year and
one million tonne of cargo.
Total built-up area of 900,000 sq m.
Lufthansa Technik to set up a maintenance, repair
and overhaul (MRO) facility at the airport.
A new flight academy to be established at the
airport.
INFRASTRUCTURE STATUS
Source: GHIAL website, www.hyderabad.aero
Andhra Pradesh November 2010
25
Ports• Andhra Pradesh has the second-highest cargo-handling port after Gujarat.
• The Visakhapatnam port ranks amongst the top three of the 12 major ports in the country. In 2009-2010, it had a port traffic of 65.5 million tonnes which accounted for 11.7 per cent of total port traffic at all major ports.
• Coking coal, iron ore, petroleum products and thermal coal are some of the key products handled by the port. It also has a high volume of container traffic.
• Other than Visakhapatnam, the state has 13 intermediate and minor ports.
• In 2008, the minor ports at Andhra Pradesh handled about nine per cent of the total traffic at all minor ports across the country.
Visakhapatnam Port Traffic (million tonnes)
INFRASTRUCTURE STATUS
22 2326
3033 34 36 36
4045 44 46 48 50
56 56.3
64.5 63.9 65.5
0
10
20
30
40
50
60
70
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010^
^Year ended in March 2010
Source: Visakhapatnam port
Andhra Pradesh November 2010
26
Telecom infrastructure
• As of December 2009, Andhra Pradesh had 4,166 telephone exchanges and 2.5 million wire line telephone connections.
• The number of public call offices as of March 2009 was 200,291.
• There are about 41.4 million cellular subscribers (GSM and CDMA) and 400,000 broadband connections.
• The state has approximately 44,000 km of fibre-optic cable network with public and private sector connectivity.
• Reliance Communications has created infrastructure for providing the required bandwidth for basic telecom services and other high-end services by laying a fibre-optic cable backbone of 3,000 km throughout the state.
• The State Government has appointed an agency to provide reliable communications backbone, which will provide gigabit ethernet connectivity to all government departments and 40,000 offices across the state.
• It would connect the state secretariat to district headquarters, mandals and villages, bringing the information superhighway to the doorstep of the common man in rural areas.
• The broadband network being implemented with private participation would connect the state headquarters with 10 gigabit per second (gbps) to each district headquarter, one gbps to each of the 1,128 mandal headquarters and 100 megabit per second to each of the villages.
• As of January, 2010, there were 16,146 post offices in the state.
Sources: Chief General Manager, Telecom, Andhra Pradesh, Department of Telecommunication, annual report 2009-2010
INFRASTRUCTURE STATUS
Andhra Pradesh November 2010
27
• As of March 2010, Andhra Pradesh had a total installed power generation capacity of 13,409.4 MW, which comprised 7,688.5 MW under state utilities, 3,129.3 MW under central utilities and 2,591.6 MW under the private sector.
• Coal- and gas-based thermal power plants with installed capacity of 6,260 MW and 2,580.4 and hydropower plants with capacity of 3,617.5 MW were major sources of electric power in the state.
• The entire capacity of gas-based power plants is contributed by the private sector.
• Per capita consumption of electricity was 746 units in 2008-09.
Installed power capacity (MW)
Source: Central Electricity Authority
Power … (1/2)
INFRASTRUCTURE STATUS
11,809.4 11,483.6 11,866.8 11,639.1
13,409.4
0.0
2,000.0
4,000.0
6,000.0
8,000.0
10,000.0
12,000.0
14,000.0
2005-06 2006-07 2007-08 2008-09 2009-10
Andhra Pradesh November 2010
28
Segment Company name
Power generation Andhra Pradesh Power Generation Corporation Limited (AP Genco)
Power transmission Transmission Corporation of Andhra Pradesh Limited (AP Transco)
Power distribution Central Power Distribution company of Andhra Pradesh Limited (APCPDCL), Hyderabad
Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL), Tirupati
Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL), Visakhapatnam
Northern Power Distribution Company of Andhra Pradesh Limited (APNPDCL), Warangal
AP Genco‘s hydro-power plants AP Genco‘s thermal power plants
• The integrated Andhra Pradesh State Electricity Board (APSEB) was restructured in 1999 to form the following companies:
Power … (2/2)
INFRASTRUCTURE STATUS
Andhra Pradesh November 2010
29
Water supplySewerage system and solid-
waste management system
• The average per capita
supply of water in major
cities is 106 lpcd*
• A coverage of 85 to 90
per cent in the core city
areas.
• Operation and
maintenance costs being
recovered from water
tariffs is high, at 85 per
cent in Hyderabad.
• Solid waste collection
efficiency is very high
across the cities of
Andhra Pradesh and
varies from 85 to 100 per
cent, on an average, for
all the cities
• Area coverage of the
sewerage system in the
major cities varies from
10 per cent to 45 per
cent
* litres per capita per day
Per capita water supply across key cities
Source: Commissionerate of Industries, Andhra Pradesh, 2006
Desired LevelCurrent per capita
supply (litres/day)
Urban infrastructure … (1/2)
INFRASTRUCTURE STATUS
Andhra Pradesh November 2010
30
Sewerage treatment infrastructure (%)• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 50 projects costing US$1,162.1 million have been sanctioned for Hyderabad, Visakhapatnam, Vijayawada and Tirupati.
• Some of the key areas of development are roads/flyovers, water supply, storm water drainage, old city drains, solid-waste management and mass rapid transport system.
• Projects of value US$ 216.3 million have been completed in 2005 and 2007. In 2007-08, one project of US$ 150.8 million have been completed. These projects were located in Hyderabad and Vishakhapatnam and related to roads, water supply, drains/storm water drains and sewerage.
• In 2009-2010, the Central Government has released US$ 52.5 million for 22 projects.
Visakhapatnam‘s urban Infrastructure snapshot
• Visakhapatnam has a high per capita road length of 1.03 km.
• Percentage of pucca roads in the cities varies from 70 per
cent to 95 per cent.
• Percentage coverage of storm water drains varies from 30
per cent to 50 per cent.
Urban infrastructure … (2/2)
Source: JNNURM, Ministry of Urban Development, www.urbanindia.nic.in
INFRASTRUCTURE STATUS
45
40
10.5
23
10
0
10
20
30
40
50
Hyderabad Vijaywada Vishakapatnam
Area Coverage (%) Treated (%)
Andhra Pradesh November 2010
31
Project name Sector PPP typeProject cost
(US$ million)Stage
Vodarevu Nizampatnam ports and port-based
corridor developmentPorts BOOT 3,652.2 Construction
Gangavaram Port Ports BOT-Toll 358.6 Construction
Cuddapah Mydukur Kurnool road Roads BOT-Toll 344.6 Construction
Integrated solid waste management for Hyderabad Urban development DBFOT 195.0 Construction
Four-laning of Hyderabad Karimnagar Ramagundam
roadRoads BOT-Toll 295.2 Bidding
Narketpally Addanki Medaramitla road Roads BOT-Toll 260.2 Bidding
Bus terminal and commercial development at
MusheerabadUrban development Lease 54.3 Bidding
Health spa and resort Tourism Lease 13.0 Bidding
Four-laning of Khammam Tallada Devarapally road Roads BOT-Toll 143.5 EOI
Four-laning of Perecherla Thokapalli road Roads BOT-Toll 113.5 EOI
Four-laning of Warangal Khammam road Roads BOT-Toll 103.5 EOI
Key public private partnership projects
Source: www.pppindiadatabase.com
EOI-Expression of interest, BOOT: build-own-operate-transfer, BOT: build-operate-transfer, DBFOT: design-build-finance-operate-transfer
INFRASTRUCTURE STATUS
Andhra Pradesh November 2010
32
Education sector … (1/2)
• The state had a literacy rate of 60.5 per cent in 2001 as against 44.1 per cent in 1991.
• In 2001, the male literacy figure stood at 70.3 per cent, while female literacy was at 50.4 per cent.
• In 2008-09, total of 13.7 million students were enrolled in 98,027 schools. There were 65,609 primary schools, 14,942 upper primary schools, 17,376 high schools and 100 higher secondary schools. The total number of teachers was 449,145.
• The state adds more than 100,000 engineering graduates, 12,000 management graduates and 350,000 English-speaking graduates every year.
• The Hyderabad University and the Osmania University are among the leading universities of the country.
INFRASTRUCTURE STATUS
Andhra Pradesh November 2010
33
Education sector … (2/2)
• At the intermediate college level, courses are available in the science, arts and commerce streams.
• Vocational courses are offered in the fields of agriculture, engineering and technology, home science, paramedical, business and commerce, and humanities.
• In 2009-2010, there were 4,611 junior colleges with a total enrolment of 0.8 million students.
• The Technical Education Department of Andhra Pradesh supports 656 engineering colleges.
Colleges by courses, 2009-2010
INFRASTRUCTURE STATUS
Degree colleges
• Government colleges: 249
• Aided colleges: 179
• Un-aided colleges: 1,459^
• Under-graduate and post-graduate colleges: 5,236^
Life-sciences institutes
• Centre for Cellular and Molecular Biology
• Centre for DNA Fingerprinting and Diagnostics
• Indian Institute of Chemical Technology
• International Crop Research Institute for Arid and Semi-
Arid Tropics (ICRISAT)
• Directorate of Rice Research, National Academy of
Agricultural Research Management
• National Institute of Nutrition
• Indian Council of Agricultural Research Centres.^As of 2008-09
Source: Socio Economic Survey 2009-2010
Course Number of
colleges
Engineering 656
Master of Computer Application (MCA) 703
Master of Business Administration (MBA) 881
Bachelor of Pharmacy 278
Polytechnics 213
Source: Socio Economic Survey 2009-2010, Government of Andhra
Pradesh
Degree colleges, 2009-2010
Andhra Pradesh November 2010
34
• As of March 2008, Andhra Pradesh had 1,570 primary healthcare centres (4-6 beds in each), with 2,214 doctors.
• There were 167 community healthcare centre (30 beds in each) with 235 specialists. There are 12,522 sub-centres in the state.
• Hyderabad has approximately 60 hospitals that classify as authorised centres for providing medical services.
Leading hospitals in Hyderabad
Apollo Hospital
Yashoda Super Specialty Hospitals
Care Hospital
Wockhardt Kamineni Hospital
Nizams Institute of Medical Sciences
MNJ institute of Oncology and Regional Cancer Centre
Indo-American Cancer Institute and Research Hospital
Global Hospital
Medwin Hospital
Medicity Hospital
L V Prasad Eye Institute
Krishna Institute of Medical Sciences
*Per thousand persons
** Per thousand live births
Source: Ministry of Health & Family Welfare
As of March 2008
Health infrastructure
INFRASTRUCTURE STATUS
Health indicators
Birth rate* 18.4
Death rate* 7.5
Infant mortality rate** 52
Andhra Pradesh November 2010
35
• There are several sports complexes in Hyderabad, Visakhapatnam, Tirupati and other cities. Swimming and tennis are the major sports although, other games are also popular.
• The Boulders Hill in Hyderabad, The Army Golf Course in Secunderabad and the East Point Golf Club in Visakhapatanam are well known golf courses in the state.
• The Tirupati temple in Southern Andhra Pradesh makes the state one of the leading religious tourism spots in the country.
• AP Tourism promoted convention centres in Hyderabad state include Taramati Baradari, Hyderabad International Convention Centre, Shilpa Kala Vedika, HITEX, Marriott Convention Centre, Ramoji Film City, Katriya De Royal –Convention Facilities.
Cultural infrastructure
INFRASTRUCTURE STATUS
Major stadiums and sports complexes in Hyderabad
Swarnandhra Pradesh Sports Complex
G. M. C. Balayogi Athletic Stadium
Gachibowli Indoor Stadium
Fateh Maidan Sports Complex
The Lal Bahadur Stadium
The Lal Bahadur Stadium
Aquatics Complex
Kotla Vijay Bhaskar Reddy Indoor Stadium
SAAP Tennis Complex, Fateh Maidan
Shooting Range, Hyderabad Central University
Rajiv Gandhi International Cricket Stadium
Andhra Pradesh November 2010
36
• On the industrial infrastructure front, the state has taken a number of developmental initiatives to achieve consistent economic growth.
• The Government has initiated a set of prestigious projects including those in industrial infrastructure for the specific sectors, through the Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC).
• As of 2008-09, there were 69 Software Technology Parks of India (STPI) in the state.
• APIIC has already helped set up over 300 industrial estates and specialised parks including the L&T Infocity, ICICI Knowledge Park, SP Bio-tech Park, Marine Bio-tech Park, Agri Bio-tech Park, special economic zone (SEZ), Pharma City, Hardware Park, HITEC city, leather parks, food processing park and agri-export zones.
• As of August 2010, 1,303 units were registered with the STPI, Hyderabad.
Industrial infrastructure development … (1/2)
Number of STPI registered in India and Andhra Pradesh (No)
Sources: IT parks, IT SEZs, IT and Communications Department
website, http://apit.ap.gov.in, Export Performance of IT/ITES
Industry for the year 2008-09- presentation, STPI website,
www.hyd.stpi.in
INFRASTRUCTURE STATUS
1052
1164
845
616
173 174 176 69
0
200
400
600
800
1000
1200
1400
2005-06 2006-07 2007-08 2008-09
All India A P
Andhra Pradesh November 2010
37
Sources: Commissionorate of Industries, Andhra Pradesh, 2006, SEZ India website, www.sezindia.nic.in, Andhra Pradesh Government budget website,
http://budget.ap.gov.in
Industrial infrastructure development … (2/2)
Larsen & Toubro (L&T) Infocity
Developed jointly by APIIC and L&T.
Spread across 158 acres at Madhapur with state-of-the-
art infrastructure.
Built in three phases with total built-up area of 1.8
million sq ft on 20.7 acres of land. Employs more than
12,500 persons.
Genome Valley
Genome Valley is India‘s first state-of-the-art life
sciences cluster, spanning 600 sq km in Hyderabad.
Provides access to world-class infrastructure to
domestic and international companies.
Comprises dedicated parks such as ICICI Knowledge
Park and Shapoorji Pallonji Biotech Park developed on
a public-private partnership (PPP) model.
• Integrated Infrastructure Development Centres (IIDC) to establish industries in rural/backward areas and provide agriculture–industry link.
• Centres are located in Nandyal (Kurnool), Tada (Nellore), Keelapattu and Madikonda (Warangal), Gajularamaram (Ranga Reddy) and Surampally (Vijaywada).
• The Central Government has given formal approval to 106 SEZs, in-principle approval to four SEZs and 74 notified SEZs.
• APIIC has developed an Export Promotion Industrial Park (EPIP), spread over 204 acres in Medak, at an estimated cost of US$ 35.36 million.
• Critical Infrastructure Balancing Scheme (CIBS) to fund Industrial associations/service societies/NGOs for development of critical infrastructure.
INFRASTRUCTURE STATUS
Andhra Pradesh November 2010
38
IT / ITES
Pharma / Biotech
Textile & Apparel
Guntur
VishakapatnamHyderabad
Sircilla
Warangal
Nalagunda
Food Processing
Vizianagaram
Bheemavaram
Chittoor
Vijaywada
Automobiles & Engineering
Rangareddy
MAHARASHTRA
KARNATAKA
TAMIL NADU
MADHYA PRADESH
ANDHRA PRADESH
Industrial Clusters
NN
Hindupur
Nellore
Karnool Ongole
Mineral
Khammam
Kuppam
Kadapa
Upcoming SEZs Industrial clusters in AP
SEZs and industrial clusters
INFRASTRUCTURE STATUS
Andhra Pradesh November 2010
39
Infrastructure typeInvestments
(US$ million)
Power* 18,864.7
Roads 5,122.8
Oil and gas 753.1
Railways 4,571.5
Airport 1,162.8
Shipping 2,927.6
Total 33,402.5
Infrastructure investments
*Generation and distribution
Source: CMIE
As of March 2010
• Infrastructure investments in Andhra Pradesh were over US$ 33.4 billion, as of March 2010.
• Over 56 per cent of investments in infrastructure were in the area of power generation and distribution.
• About 15.3 per cent of the investments were in the road sector, while another 14 per cent were in the railways sector. Other sectors such as shipping (8.8 per cent), airport (3.5 per cent) and oil and gas (2.3 per cent) also attracted investments.
INFRASTRUCTURE STATUS
Andhra Pradesh November 2010
40
Location (district) Name of the park
Chittoor Food processing park
Medak Export promotion industrial park
Ranga Reddy Agri-biotech park
Apparel park
Biotech park
Financial district
Gems and jewellery park
Hardware park
Hi-Tech city
Hitex exhibition centre
ICICI knowledge park
Industrial estate for lady entrepreneurs
International convention centre
Mind Space IT parks
Visakhapatnam AP SEZ
JN Pharma City park
Visakhapatnam industrial water supply project
Visakhapatnam SEZ
Existing mega parks
INFRASTRUCTURE STATUS
Andhra Pradesh November 2010
41
Location (district) Name of the park Location (district) Name of the park
Ranga Reddy Pharma cluster Visakhapatnam Brandix textile city
Business district and trade towers IT park
Rajiv Gandhi nanotech park Apparel export park
Semindia Fab city Marine biotech park
Hardware park Nalgonda Handloom textile park
Aero park Medak Textile park
Auto park Anantpur Textile park
IT parks (three) Guntur Food processing park
Khammam Food processing park
Sircilla, Karimanagar Textile park Mahabubnagar Textile park
Vijayawada, Krishna Auto component Visakhapatnam,
Vizianagaram,
East Godavari
Petroleum. Chemicals and
Petrochemicals Investment
Region (PCPIR)
IT park Nellore Food processing park
Upcoming specialised parks
INFRASTRUCTURE STATUS
Andhra Pradesh November 2010
42
Industry Name of the park, location Brief description
Life-
sciences
Agri-science park The State Government and ICRISAT have jointly set up an agri-science park
at the ICRISAT campus to support the growth of agri-based biotech industry
in the state.
Jawaharlal Nehru Pharma City
(JNPC)
JNPC project is being developed at Parwada, Visakhapatnam, at an estimated
cost of US$ 73.17 million through a PPP model between the State
Government and Ramky Pharma City (India) Limited. Infrastructure includes
water supply, hazardous waste management facilities, effluent treatment
plants, power and street lighting.
Designed by JTC - Jurong Corporation of Singapore, it has a saleable area of
1,420 acres and the remaining 700 acres would have common facilities and
utilities with green areas and open spaces in the park. About 600 acres have
been earmarked for setting up a Pharma SEZ.
Sector-specific industrial parks … (1/2)
INFRASTRUCTURE STATUS
Andhra Pradesh November 2010
43
Industry Name of the park, location Brief description
Apparel and
textile
Apparel Export Park The park is spread over 172 acres in Gundlapochampally and has units
exporting to the US, the UK and other countries and for stores such as Wal-
Mart and JC Penny.
Textile Park, Sircilla The park has been developed on 60 acres for providing facilities such as
training centres, business resource centres, textile processing units, testing
labs, CAD centres, common effluent treatment plants, has a 33/11 kV
substation with uninterrupted power supply, assured water supply and single-
window clearance for all approvals.
Textile Park, Pashamylaram Centre Government approved project under the Textile Centre
Infrastructure Development Scheme. So far, 50 acres of land have been
developed.
Brandix India Apparel City,
Visakhapatnam
Set up in an area of 1,000 acres at a project cost of US$ 609.8 million by
Brandix Lanka Limited. Commercial operations started in January 2007.
Apparel Export Park,
Visakhapatnam
Project developed on 146 acres of land for accelerated industry growth
there.
Textile Park, Pamidi Proposed to be developed as a natural garment cluster with basic
infrastructure facilities and skilled manpower.
Handloom Apparel Park,
Pochampally
The Government has identified 50 acres on National Highway-9 near the
Pochampally Silk City and has approved the project at an outlay of US$
810,000.
Sector-specific industrial parks … (2/2)
INFRASTRUCTURE STATUS
Andhra Pradesh November 2010
44
E-seva Rajiv Internet Village AP online E-procurement
• Presence of e-governance
initiative, which offers a
wide spectrum of citizen-
friendly services
• One-stop shop for services
of various state and central
government departments in
an efficient, reliable,
transparent and integrated
manner
• Facilitates online
transaction processing of
payments, issue certificates,
permits, licenses and many
other services
• Launched by the State
Government in
August 2004, its
objective is to bring
government
services/benefits
closer to people living
in rural areas.
• Further, it aims to
provide computer
literacy to at least one
person in each family
in rural areas
• Provides high
bandwidth
connectivity in rural
areas
• E-governance: gateway for the
State Government, offers
multiple services through a
single window to citizens
• Developed and launched by the
Government in partnership
with Tata Consultancy Services
• Facilitates online submission of
forms including registrations,
licences, permits, certificates
and representations to
different government
departments.
• Facilitates online payments for
utilities, taxes, fee, deposits and
stamp duties.
• Automates procurement and
purchase procedures—
spanning from demand
aggregation to procurement
and fulfilment—of the State
Government. Presently, the
portal is servicing 29
government departments, 39
public sector undertakings,
four universities and 127
urban local bodies.
• Over 61,000 tenders with
work amounting to US$ 26.3
billion have been handled
through the portal.
Source: "Mauritius pact with State Government", Eprocurement website, www.eprocurement.gov.in
Virtual infrastructure
INFRASTRUCTURE STATUS
Andhra Pradesh November 2010
45
Contents
Advantage Andhra Pradesh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Andhra Pradesh
ANDHRA PRADESH November 2010
46
Andhra Pradesh Industrial Investment Promotion Policy (IIPP), 2010-2015
Vision: To build a strong and vibrant industrial economy that spins off large capital formation in the state and advances inclusive
development of all sections of people and industry, that creates increasing employment opportunities, and raises wage incomes to
higher levels through skill upgradtion so as to improve the quality of life of citizen of the state.
Objectives:
• Promote Andhra Pradesh as ‗the best‘ investment destination.
• Increase growth of manufacturing sector from 12 per cent to 17 per cent per annum.
• Creation of additional employment of 500,000 persons per year (200,000 direct employment and 300,000 indirect employment).
• Attracting US$ 3.16 billion of investment in the manufacturing sector, every year .
• Provide special focus on micro-, small- and medium –scale enterprise (MSME) with emphasis on food processing.
• To enhance the knowledge and skills of human resources for better productivity and global competitiveness.
• To create enabling environment for ensuring maximum value addition to the abundantly available resources.
• To build conducive ecosystem for sustained growth of industry.
Sector-specific policies … (1/12)
STATE POLICIES AND INCENTIVES
Andhra Pradesh November 2010
47
IIPP, 2010-2015 (continued)
Incentives:
For micro- and small- enterprises (MSE):
• Subsidy of 15 per cent of fixed capital investment ,subject to a maximum of US$ 42,194.
• Reimbursement of 100 per cent of value added tax (VAT) / central sales tax (CST) or state goods and service tax (SGST) for a period of five years for micro enterprises.
• Reimbursement of 50 per cent of VAT, CST or SGST for a period of five years for small enterprises.
• Interest subsidy on term loan for MSEs in excess of three per cent per annum subject to a maximum of nine per cent per annum for a period of five years.
• Providing tender forms free of cost. Exemption from paying earnest money deposit (EMD) and security deposit (SD).
• Price preference to the extent of 10 per cent, i.e., where the bid by micro and small enterprises are within 10 per cent of lowest bid, the local micro and small enterprises will be offered reasonable part of the order at lowest bid value.
• Reimbursement of 50 per cent of cost incurred in quality certification / patent registration, to an upper limit of US$ 4,219.
Incentive for medium and large industries:
• Reimbursement of 25 per cent of VAT, CST or SGST for a period of five years for medium and large enterprises.
• All projects with investments more than US$ 52.7 million or providing employment for more than 2,000 people, will be
classified as mega projects and will be considered for tailor-made benefits, based on factors such as technology induction,
employment opportunity, location of units, etc.
Sector-specific policies … (2/12)
STATE POLICIES AND INCENTIVES
Andhra Pradesh November 2010
48
IIPP, 2010-2015 (continued)
Incentives:
For enterprises managed by women:
Enterprises started by women entrepreneurs as sole proprietary concerns/partnership/private limited companies or
cooperatives which have 100 per cent women participation in the enterprise will be eligible for the following benefits:
• All the benefits as per IIIP, 2010-2015.
• Additional five per cent (i.e., total of 20 per cent) subsidy on investment, limited to US$ 10,548.
• Reservation of 10 per cent of land in the industrial estate / parks developed by APIIC.
For enterprises managed by entrepreneurs belonging to scheduled cast (SC) and scheduled tribe (ST):
Industrial units which have been established under sole proprietorship of SC/ST entrepreneurs or those partnership or
private limited companies with 100 per cent share belonging to SC/ST entrepreneurs will be eligible for following
benefits:
• Reimbursement of 100 per cent of stamp duty and transfer duty paid by the industry on purchase of land meant for industrial use.
• Reimbursement of 100 per cent of stamp duty for lease of land/shed/building and also for mortgages and hypothecations.
• Reimbursement of 25 per cent of land conversion charges for the industrial use, limited to US$ 21,097.
Sector-specific policies … (3/12)
STATE POLICIES AND INCENTIVES
Andhra Pradesh November 2010
49
IIPP, 2010-2015 (continued)
Incentives:
For enterprises managed by entrepreneurs belonging to scheduled cast (SC) and scheduled tribe (ST) (continued):
• Seed capital assistance to first generation entrepreneurs to set up micro enterprises in form of 10 per cent subsidy on cost of machineries , which will be deducted from the eligible investment subsidy.
• Interest subsidy on term loan for fixed capital investments by micro and small enterprises in excess of three per cent per annumsubject to a maximum of nine per cent per annum for a period of five years.
• Preferential allotment of land in the industrial estates developed by APIIC.
• Subsidy of 35 per cent on fixed capital investment, additional five per cent subsidy for SC/ST women and additional five per cent investment subsidy for the units set up in the scheduled areas by ST entrepreneurs up to a maximum limit of US$ 105,485.
• 33.33 per cent subsidy on land cost at industrial estates and industrial development areas, limited to US$ 21,097.
• Cost of power will be reimbursed at US$ 2.1 cent per unit for five years as per guideline.
• Micro, small, medium and large enterprises will be reimbursement VA, CST or SGST to the extent of 100 per cent, 50 per cent and 25 per cent respectively.
• Subsidy of eight per cent on capital expenditure on equipments for technology upgrade, limited to US$ 105,485 (for MSMEs)
• Reimbursement of 50 per cent of expenses incurred for quality certification/patent registration up to a limit of US$ 4,219 for MSMEs.
Sector-specific policies … (4/12)
STATE POLICIES AND INCENTIVES
Andhra Pradesh November 2010
50
Information and Communications Technology (ICT) Policy, 2010-2015
Objectives: To make Andhra Pradesh as one of the fore runners in IT sector in the country. The objective will be achieved
through the following:
• Provision of congenial, industry-friendly and proactive climate for IT companies to locate, grow and sustain their operations in
most competitive and hassle-free environment.
• Creation of employment opportunities to the educated youth of all sections of the society across all regions.
• Achieving higher levels of exports resulting in enhanced productivity, and augmentation of GSDP.
• To spread IT to nook & corner of the state.
• Leverage IT as a tool for the socio-economic development of the state.
Key targets:
• Achieve exports of US$15 billion by the IT sector in the state.
• Achieve annual growth rate of 17 per cent for the IT sector in the state.
• Generate 125,000 direct employment.
• Generate 500,000 indirect employment.
• Computer training for e-literacy.
• Special focus areas of the policy are start up companies, small and medium enterprises (SMEs), IT product/research and
development companies, SC/ST entrepreneurs, women entrepreneurs, animation, gaming and digital entertainment, engineering
services, tier-II locations (Vijayawada, Tirupati, Kakinada and Warangal), tier-III locations (other than Hyderabad and tier-II
locations) , promotion of IT incubation facilities at engineering colleges, corporate social responsibility, promotion of women‘s
participation in IT sector, electronic hardware (non-hazardous) and eGovernance.
Sector-specific policies … (5/12)
STATE POLICIES AND INCENTIVES
Andhra Pradesh November 2010
51
ICT Policy, 2010-2015 (continued)
Incentives:
• IT/ITeS units will be exempt from the purview of the Andhra Pradesh Pollution Control Act, except with respect to power
generation sets.
• IT/ITeS units and companies will be exempt from the statutory power cuts.
• IT industry will be exempt from inspections under the following, barring inspections arising out of specific complaints:
• The Factories Act 1948.
• The Maternity Benefit Act 1961.
• The AP Shops & Establishments Act 1988.
• The Contract Labour (Regulation & Abolition) Act 1970.
• The Payment of Wages Act 1936.
• The Minimum Wages Act 1948.
• The Employment Exchanges (Compulsory Notification of Vacancies) Act 1959.
• Three shift operations with women working in the night for IT/ITeS units or companies will be granted.
• IT/ITeS units or companies and non-hazardous hardware manufacturing industry are declared as essential service under AP
Essential Services Maintenance Act.
Sector-specific policies … (6/12)
STATE POLICIES AND INCENTIVES
Andhra Pradesh November 2010
52
ICT Policy, 2010-2015 (continued)
Special incentives for special focus areas:
• Reimbursement of stamp duty, transfer duty and registration fee.
• Recruitment assistance.
• Subsidy on lease rentals.
• Subsidy on cost of power.
• Subsidy on cost incurred in participating in exhibitions.
• Subsidy on cost incurred in filing for patents and obtaining quality certifications.
• Subsidy on lease rentals.
• Subsidy on interest charges.
• Rebate on land cost.
Sector-specific policies … (7/12)
STATE POLICIES AND INCENTIVES
Andhra Pradesh November 2010
53
Textile and Apparel Policy, 2005-10
Objectives: To generate employment opportunities for an additional 1.5 million persons in the sector by 2010, to increase exports
to US$ five billion to US$ six billion by 2010, to set up apparel exports and textile parks in clusters with state-of-the-art
technology to attract investors, promote exports and generate employment opportunities, to introduce the system of PPP and
special incentives to high value and high employment-generation projects.
Incentives:
• All the incentives provided in the Industrial Investment and Promotion Policy are automatically applicable to textiles and apparel
units.
Sector-specific policies … (8/12)
Fresh Food Policy, 2005
Incentives:
• Reimbursement of cost of power to be extended for a period of five years from April 2005.
• Food processing units that commenced commercial production after November 14, 2003, are eligible for reimbursement of
power costs.
STATE POLICIES AND INCENTIVES
Andhra Pradesh November 2010
54
Tourism Policy, 2006
Objectives: To create a unique selling proposition and a brand image for the state, to ensure deserved positioning on the tourism
map of India and the world, to create and differentiate tourism products across segments such as eco-tourism, pilgrimage, heritage,
business, sports, spiritual, health, leisure and rural tourist, to provide incentives and concessions to tourism projects to be set up
in special tourism areas with assurance on features such as sustainable employment generation, promotion of rural tourism and
commercially viable projects, to develop the sector through public private partnerships (PPP), to adopt a single-window clearance
system.
Incentives and concessions:
• Concession on allotment of land on a long lease of 33 years. For mega projects, the lease period to exceed 33 years and lease
rent shall be 10 per cent of market value, subject to review every five years.
• Investment subsidy of 20 per cent of project cost and 15 per cent for up-gradation of existing hotels, limited to US$ 48,000.
• 100 per cent reimbursement of stamp duty and transfer fee on purchase of land or lease of land meant for the project.
• Reimbursement of 25 per cent of value-added tax and luxury tax paid for a period of five years.
• Reimbursement of 25 per cent of entertainment tax for multiplexes in theme parks and urban entertainment centres for a
period of five years, limited to 100 per cent of the project cost for projects more than US$ 1.219 million and located in notified
tourism areas or special tourism areas.
• Floor area index relaxation, and automatic conversion/exemption from land-use zoning regulations.
• Market development assistance scheme for promotional activities
Sector-specific policies … (9/12)
STATE POLICIES AND INCENTIVES
Andhra Pradesh November 2010
55
Electronic Service Delivery Policy, 2003
Aim: To evolve a comprehensive and generic policy that permits rapid growth of electronic delivery of services under e-
governance projects such as e-Seva, APonline, e-Procurement, CARD and i-Community.
Key provisions and incentives:
• To adopt new and more efficient, cost-effective delivery channels with suitable interfaces for backward integration.
• The Government to establish a standards-based e-government Gateway to enable the various service providers to interact with
the backend databases and applications of various government departments and agencies and provide cost-effective services to
the citizens and businesses.
• To avoid the problem of limited suitability of all the delivery points and channels for delivering all the services, those services
involving checking of documents, issue of certificates, licenses needing authentication, etc., to be done at departmental outlets
and/or e-Seva centres.
• For sustaining various citizen-service projects and initiatives, it is necessary that the concerned partner, vendor or entrepreneur
is compensated on a ‗per transaction‘ basis. The transaction cost could be met either by the government department/agency or
by the customer, depending on the nature of the service.
• The following principles are to be adopted in this regard:
• No user charges to be collected from the citizen in respect of payment for utility bills and taxes, irrespective of the delivery
channel. The concerned department or agency will pay the service charges to the service providers.
• In respect of other services such as information services, interactive services like online filing of forms, form submission and
issue of certificates, a charge of US 11 cents to US 33 cents to be payable by the customer to the operator of the Service
Delivery Point (SDP).
• The revenue sharing between the SDP, service providers and the government department to be mutually agreed between the
various parties involved and specified in a Service Level Agreement (SLA).
Sector-specific policies … (10/12)
STATE POLICIES AND INCENTIVES
Andhra Pradesh November 2010
56
Biotechnology Policy, 2001
Objectives: To undertake a detailed inventory evaluation of the bio-resources in the state, to encourage research and development
(R&D), to develop high-quality infrastructure and provide special incentives to biotech industry.
• To create an enabling environment and simplify procedures, to facilitate the flow of venture capital funds and address issues such
as Intellectual Property Rights (IPR).
• The thrust areas identified include diagnostics, therapeutics, pharmaco-genomics, bioinformatics, agriculture biotechnology,
industrial biotechnology, inputs to the industry (hardware suppliers – instrumentation and chemicals), marine biotechnology,
forest and environment-focussed biotechnology, contract research in all areas of biotechnology and related areas.
• The strategy adopted involves encouraging R&D, developing infrastructure, providing incentives, land and grants for training
institutes and housing, mega projects, developing adequate human resources, creating an enabling environment, funding biotech
activities, and protecting IPR.
• The Andhra Pradesh Government is working on a new biotechnology policy.
Sector-specific policies … (11/12)
STATE POLICIES AND INCENTIVES
Andhra Pradesh November 2010
57
Biotechnology Policy, 2001 (continued)
Key Incentives:
A sales tax of just one per cent for ―high-end‖ biotech products manufactured by units located in – the Biotech Park at Turkapalli
village, Shamirpet mandal, Ranga Reddy district and others – applicable for a period of seven years from the date of
commencement of commercial production of a biotech unit and up to March 2010 and for units commencing operations before
March 2006.
Government of Andhra Pradesh to provide government land on lease or as equity to other Biotech Parks, if the site is found
suitable for such projects. Subject to certain conditions, bioinformatics companies will be offered rebate on the cost of
government land allotted to them at US$ 440 per job created.
Bio-informatic centres to be permitted to be established without any location restrictions. They can be established in residential,
commercial or industrial zones. Companies setting up Bioinformatics Centres in the Genome Valley will get a rebate of US$ 660
per job created, subject to the value of a maximum of two acres of government land and 100 per cent exemption from registration
and stamp duties. Similar incentive to be provided to the bio-informatic units to be set up in Biotech Parks.
The biotech industry is exempt from the purview of statutory power cuts, industrial power tariff (and all other admissible
incentives and concessions for industry) to apply.
General permission to be accorded to run a three-shift operation to the biotech industry (subject to Government of India
concurrence), permit flexibility in the opening and closing times and in the weekly holiday of a biotech unit by amending relevant
provisions of the A.P. Shops and Establishment Act, exempt biotech units from the provisions of Contract Labour Act 1970, in so
far as non-core activities are concerned, set up exclusive Special Industrial Tribunals for Biotech Parks to give top priority to the
settlement of disputes that may arise in units located in the Biotech parks.
Sector-specific policies … (12/12)
STATE POLICIES AND INCENTIVES
Andhra Pradesh November 2010
58
Company logos cited in this section are registered trademarks of the respective companies.
Contents
Advantage Andhra Pradesh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Andhra Pradesh
ANDHRA PRADESH November 2010
59
IT and ITeS• Andhra Pradesh has had a steady growth in IT and ITeS
exports from SEZs and Software Technology Park (STP), recording a 24.5 per cent growth in 2008-09 against the national average of 20.7 per cent.
• Total exports were about US$ 7.1 billion in 2008-09 (from STP and SEZ) against US$ 6.5 billion in 2007-08.
• Total employment generated by IT and ITeS industry in the state increased from 239,000 in 2007-08 to 251,786 in 2008-09.
• In 2008-09, employment generated by the IT sector has grown by 12,786 (including STP and SEZ units).
• As of July 2009, the state had attracted investments to the tune of US$ 110 million, of which investments from foreign companies were at US$ 2 - 3 million.
• As of August 2010, 1,303 IT and ITeS companies were registered under STPI, Hyderabad scheme.
Key players
• Mahindra Satyam
• Microsoft
• Genpact
• Cognizant
• Zensar Technologies
• iGate
• IBM
• Patni Computer Systems
• Tata Consultancy Services (TCS)
• Ikanos Communications
• HCL
• Intergraph
• CSC
• Sonata Software
BUSINESS OPPORTUNITIES
STP: Software technology park
Andhra Pradesh November 2010
60
IT/ITeS – company profiles … (1/4)
Mahindra Satyam Formerly, Satyam Computers, Mahindra Satyam was established in 1987 and has its global headquarters
at Hyderabad and several offices in 38 countries including India. The company provides software
solutions to over 370 customers including four of the top ten electronics and electrical equipment
manufacturers, three of the top ten in aerospace and defence, two of the top five chemicals
manufacturers and four of the top five networking and communications equipment manufacturers.
Microsoft Established in 1998, the Microsoft India Development Centres (MSIDC) is located in Hyderabad on a
42-acre state-of-the-art campus and employs around 1,500 employees. The company focuses on
strategic and IP sensitive product development for Microsoft. It is Microsoft‘s largest software
development centre outside the US. It has established centres of excellence for storage, networking and
mobility, and has filed over 270 patents in last five years.
IBM IBM is a leading global IT services and solutions provider with offices across the world. Products offered
by company‘s India operations include software, storage, systems and servers, semiconductors, etc. IBM
has been present in India since 1992. Since inception, IBM in India has expanded its operations
considerably with regional headquarters in Bengaluru and offices in 14 cities including a global delivery
centre in Hyderabad. According to the IT market research firm, Springboard Research, IBM emerged as
the largest player with a 10.8 per cent share of the Indian IT services market in 2008.
Cognizant Founded as a captive arm of Dun & Bradstreet with headquarters in the US and operations in India,
Cognizant now has over 50 development centres (including one in Hyderabad) and 25 regional sales
offices, globally. Its services include business process outsourcing,, application and IT infrastructure
services and business consulting. In 2009, the company earned revenue of US$ 1.2 billion. In December
2009, Cognizant invited 120 personnel working in Invensys Rail, at Hyderabad, to work on its recent
global product research and development tie-up with the latter.
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
61
IT/ITeS – company profiles … (2/4)
Zensar Technologies Zensar technologies is an Indian company for IT enabled services with 20 offices around the world
and three delivery centres, one of which is located at Hyderabad. Zensar provides end-to-end
services from IT development to business process. Zensar has a strong engagement with Oracle,
which is their worldwide certified partner, with a team of over 750 consultants. In the SAP space,
Zensar provides template-solutions in key verticals of dairy, textile, pharmaceuticals, manufacturing
and IT / operations. Zensar is one of the large partners of SAP in certain key segments and markets.
Company‘s revenue in 2009-2010 was US$ 105 million.
iGATE iGATE is an ITeS, consulting and BPO services provider. Registered in the US, iGATE has 34 offices
across 16 countries. In 2009, total revenue of the company was US$ 195 million. The company has
delivery centres in the US, UK, Canada, China, Malaysia and India. In Andhra Pradesh, it has an office
at Hyderabad.
Genpact Genpact is a leading BPO company with delivery centres in 13 countries. It has three facilities in
Hyderabad providing diverse specialised services in domains of IT infrastructure management,
enterprise applications, procurement and supply chain services, finance and accounting services, and
customer service to Genpact clients across the globe. The State Government allotted about 50 acres
of land to Genpact in 2007-08 to set up an IT SEZ in Hyderabad.
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
62
IT/ITeS – company profiles … (3/4)
Patni Computer Systems Patni is one of the leading global providers of IT services and business solutions.
Of the total 22 global delivery centres of Patni, three are located at Hyderabad. Revenue of the
company in 2009-2010 was US$ 366 million.
Tata Consultancy Services
(TCS)
A company of the TATA group of India , TCS is a well recognised global service provider for a wide
range of IT solutions, consulting, BPO, engineering services and IT infrastructure . In 2009-2010 total
revenue of the company was US$ 4.9 billion. The company has 142 offices across the world at more
than 42countries. It has four centres / offices in Hyderabad, two of which serve as innovations labs
where cutting edge research in the field of IT and other domains such as life sciences, open source
technologies and quantitative finance are carried out.
Ikanos Communications Headquartered in the US, Ikanos has offices around the world to service a global customer base.
Most of the company's engineering and research is conducted at Toronto (Canada), Bengaluru and
Hyderabad. Ikanos develops robust, high performance semiconductor and software products. The
company is a solutions provider to many of the world‘s leading network-equipment manufacturers
and telecommunications service providers, with more than 330 million ports shipped to date.
HCL Incorporated in 1976, HCL is a leading global technology and IT enterprise with annual revenue of
US$ five billion. The company‘s operation span 26 countries. Has delivery facilities in the US, UK,
Finland, Poland, Puerto Rico, Brazil, China, Malaysia, Singapore, Australia, Czech and India. In India,
the company has offices in 170 cities and 500 points of presence reaching 4,000 towns. In Andhra
Pradesh, HCL has offices located at Hyderabad and Vijayawada.
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
63
IT/ITeS – company profiles … (4/4)
Intergraph As a leading global provider of spatial information management (SIM) software, Intergraph
Corporation fuses geospatial technology to security, helping some of the world's largest government,
military, and industrial organisations in more than 60 countries better manage their operations and
safeguard their infrastructure. In India, Intergraph Consulting Private Limited is a 100 per cent owned
subsidiary of Intergraph Corporation. Incorporated in 1987, Intergraph Consulting is a strategic
offshore development centre engaging in product development, customisation, research and
development serving Intergraph customers worldwide. It has its India office at Secunderabad,
Hyderabad.
CSC A US-based company, CSC was established in 1991 and since then has expanded its India operations
to productively respond to the needs of their customers, worldwide. Recent acquisition s like that of
Covansys and expansion activities have increased CSC‘s development and delivery centres to seven
locations in the country including Hyderabad. In India, the company offers to clients worldwide, high-
value technology solutions including applications development and product support, infrastructure
and BPO services.
Sonata Software Incorporated in 1994, Sonata's services include IT consulting, product engineering services,
application development, application management, managed testing, infrastructure management,
packaged applications and travel solutions. As per the industry rankings released by NASSCOM for
2008-09, Sonata Software figured among the ―Top 20 IT Software Services Exporters‖ in India for
the second consecutive year. Headquartered in Bengaluru, Sonata has a development centre at
Hyderabad. In 2009-2010, total revenue of the company was US$ 50 million.
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
64
Pharmaceuticals and biotechnology
• Hyderabad is the hub of the bulk-drugs industry, accounting for one-third of the national production of bulk drugs. The state produces a majority of 500 basic drugs produced in the country.
• The biotechnology market size of the sector in Andhra Pradesh in 2008-09 stood at US$ 475 million and accounted for 18 per cent of the total Indian biotechnology industry.
• The industry accounts for 43 per cent of the total biotech revenue generated by companies in south India (US$ 1,104 million).
• The State Government has helped develop the pharmaceutical and biotechnology industry through specific policies promoting knowledge-based cluster approach with financial incentives and appropriate infrastructure support.
• Presence of related educational infrastructure has also helped the industry. The biotechnology incubation centre was commissioned in late 2008.
Key players
• Dr Reddy‘s Laboratories
• AMRI
• Natco Pharma Limited
• Divi‘s Laboratories
• Aurobindo Pharma
• Nektar
• Anu‘s Laboratories Limited
• Suven Life Sciences Limited
• Indigene
• Matrix Laboratories
Limited
• Hetero Drugs
• Neuland Laboratories
• Glochem Industries
Limited (GIL)
• Shantha Biotechnics
• Vimta Labs
• Indian
Immunologicals
Limited (IIL)
• Parexel
• Bharat Biotech
International
Limited (BBIL)
• Biological E. Limited
• Novartis
• Krebs Biochemicals
& Industries Limited
(KBIL)
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
65
Dr Reddy‘s
Laboratories Limited
Established in 1984, Dr Reddy‘s ranks among the top 15 generics players in the world. With revenue of
US$ 958 million, it is the first pharmaceutical company in Asia-Pacific (outside Japan) to be listed on the
New York Stock Exchange (NYSE). It has offices in 35 countries and operations in over 115 countries.
Overseas business contributes around 86 per cent of the total revenue. Aspires to become a discovery-
led global pharmaceutical company and one of the top 10 generic companies in the world. Present in
the therapeutics category: anti-infectives, cardio-vascular (CVS), diabetes, dermatology, pain
management, nutritional, dental, urological and oncology.
Albany Molecular
Research Inc (AMRI)
AMRI research centre is located in Hyderabad in the ICICI Knowledge Park. Established in 2005, AMRI
provides custom synthesis of scaffolds and building blocks, as well as preparation of reference standards.
A second laboratory for preparing larger amounts of pharmaceutical intermediates, starting materials
and other compounds is now operational as well. The Centre's operations are fully integrated with US-
based resources.
Natco Pharma Limited Natco has four manufacturing facilities and employs around 1,500 people. The company manufacturers
formulations, bulk drug and parenterals. Natco is also a large contract manufacturers in India. The
company has headquarters at Hyderabad. Revenue of the company in 2009-2010 was US$ 65 million.
Pharmaceuticals and biotechnology – company profiles … (1/7)
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
66
Divi‘s Laboratories Divi‘s is a leading manufacturer of active pharmaceutical ingredients (API) with revenue of US$ 197
million in 2009-2010. The company has a state-of-the-art multi-purpose plant at Choutupal, in Nalgonda
district, and a second plant at Visakhapatnam. The company is among the top 10 producers of naproxen
in the world and 90 per cent of the products are being exported to several countries, including the US
and Europe. Divi‘s also exports dextrome thorphan, iopamidol, nabumetone, phenyle ephedrine and
phen procumar.
Aurobindo Pharma Aurobindo is one among the vertically integrated pharmaceutical companies in India with revenue of
US$ 689 million in 2009-2010. It has a product portfolio spread over major product areas encompassing
CVS, central nervous system (CNS), anti-retroviral, antibiotics, gastro-enterologics, anti-diabetics and
anti-allergic with approved manufacturing facilities by the United States Food and Drug Administration
(USFDA), UK Medicine and Healthcare products Regulatory Authority (UKMHRA), World Health
Organisation (WHO), Medicine Control Council of South Africa (MCC-SA), ANVISA-Brazil for both
APIs and formulations and has global presence with own infrastructure, strategic alliances, subsidiaries
and joint ventures. Along with a registered corporate office at Hyderabad, it has overseas branch offices
at Ghana, Ethiopia, the UK, Vietnam and Hong Kong.
Nektar Nektar Therapeutics is a leading biopharmaceutical company developing a robust pipeline of novel
therapeutics based on its advanced polymer conjugate chemistry technology platform. Nektar also
partners with the top biopharmaceutical companies to bring new products to market. To date, Nektar's
technology and drug development expertise have enabled nine approved products for partners, which
include leading biopharmaceutical companies. Headquartered in the US, Nektar's R&D facility is located
in Secunderabad, Andhra Pradesh.
Pharmaceuticals and biotechnology – company profiles … (2/7)
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
67
Anu‘s Laboratories Limited Anu's Laboratories Limited, an ISO 9001:2000 certified company was established in 1996.
The company is engaged in manufacturing of quality drug intermediates to meet the needs of
international customers. The optimised process of 2,4-Dichloro-5 fluoro-acetophenone has
enabled the brand to establish itself as the flagship product of the organisation. The products
is available to its wide customer-base as a competitive product of the highest quality. Other
high quality intermediates such as chlorohexanone, 1,3-dibromo propane are also
manufactured by the company along with methyl-4 (4-chloro 1-oxo butyl) a, a di-methyl
acetate. It has a state-of-the-art research and development facility, located at Balanagar,
Hyderabad, which supports product development, contract research and customised
synthesis programmes of the organisation.
Suven Life Sciences Limited The company develops and supplies pharmaceutical and agro-chemical intermediates for
New Chemical Entities (NCEs) and APIs. In 2009-2010, total revenue of the company was
US$ 27 million. The company's manufacturing facilities include fine chemicals, pyrimidines,
purines, imidazoles, indoles and specialty intermediates. Suven's main thrust is in Contract
Research And Manufacturing Services (CRAMS) and the company is serving as many as 22
global life sciences and fine chemical companies. Suven Life Sciences USA LLC, its wholly
owned subsidiary, recently acquired the assets of the New Jersey-based Synthon Chiragenics
Corporation, the global player in carbohydrate- based Chiral technology for pharmaceuticals.
Indigene Indigene Pharmaceuticals is a biopharmaceutical company focused on designing, developing,
and delivering prescription and consumer healthcare products. The company has offices in
the US, Hyderabad, Canada and Switzerland.
Pharmaceuticals and biotechnology – company profiles … (3/7)
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
68
Matrix Laboratories Limited Matrix has a USFDA-approved facility located at Hyderabad, and has a strong presence in
central-nervous-system drugs, quinolone anti-bacterials, anti-retrovirals and anti-histamines.
Focusing , mainly, on synthetic research and process development, Matrix has six laboratories
with a team of 70 scientists. The company's major customer spread is across 80 countries. In
2009-2010 total revenue of the company was US$ 317 million. It has three API facilities at
Hyderabad and one at Visakhapatnam. In January 2007, Mylan Inc of the US acquired controlling
stake in the company, following which Matrix has now become a subsidiary of Mylan.
Hetero Drugs Headquartered in Hyderabad, Hetero Drugs made a mark being the first in Andhra Pradesh to
produce all the anti-retrovirals: indinavir sulphate, nelfnavir, efavirenz, lopinavir, ritonavir,
lamivudine, zidovudine , stavudine and abscavir sulphate. The company markets its products to
over 50 countries and, recently, penetrated the regulated markets in US, Canada and Europe. In
2005, it was awarded a licence to make generic oseltamivir, Tamiflu. The Swiss firm, Roche,
licensed it to make a generic version of the drug. Hetero Drugs is the parent company in the
Hetero group of companies and other companies which are part of the group are Hetero Labs,
Hetero Research Foundation, Symed Labs Limited, Cirex Laboratories, Genx Laboratories and
also foreign subsidiaries such as Invagen Inc, in USA and Richmond Labs in Argentina, etc. Also,
now, Hetero has its own retail chain of pharmacy outlets in India named, Hetero Pharmacy.
Pharmaceuticals and biotechnology – company profiles … (4/7)
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
69
Neuland Laboratories Neuland has two world-class manufacturing facilities on the outskirts of Hyderabad. The company
claims to be the largest manufacturer of albuterol sulfate in the world with USFDA approval and
Certificate of Suitability from the European Department for the Quality of Medicines, Council of
Europe. It has also a US FDA approved manufacturing facility for ranitidine HCl Form1, ciprofloaxcin
and latnoprost. The company exports to over 65 countries worldwide, including USA, Canada,
Europe, Latin America, Korea, Japan, Australia and South Africa. In 2009-2010 revenue of the company
was US$ 59 million
Glochem Industries
Limited (GIL)
Glochem is a public limited company manufacturing bulk drugs, drug intermediates and specialty
chemicals. GIL has tie-ups with companies in India and abroad, including the US and Europe, for
contract manufacturing and custom synthesis. GIL has been developing, manufacturing and delivering
tailor-made fine chemicals and intermediates for the leading pharmaceutical and fine chemical
companies on exclusive basis. It is based in Hyderabad.
Shantha Biotechnics A pioneer in the field of biotechnology, Shantha Biotechnics is the first Indian company to develop,
manufacture and market a recombinant human healthcare product in India. Shantha is currently
focused on developing generic biologicals, novel therapeutic antibodies, proteins and vaccines. It has
also started exploratory research in the fields of oncology, infectious diseases and platform
technologies. SHANVAC- B is the first Indian Hepatitis-B vaccine to pre-qualify for WHO approved
supply to UN agencies, globally. Today, Shantha caters to major international markets including Asia-
Pacific, Africa, Commonwealth of Independent States (CIS) and Latin America in addition to the United
Nations Children‘s Fund (UNICEF) and Pan American Health Organisation (PAHO). Based in
Hyderabad, Shantha Biotech became a part of the Sanofi-Aventis group in July 2009.
Pharmaceuticals and biotechnology – company profiles … (5/7)
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
70
Vimta Labs Vimta Labs is India‘s leading contract research and testing organisation. Established in 1984, Vimta now serves several market leaders across the globe. The company has a team of 707 professionals comprising 442 scientists in various disciplines such as chemistry, pharmacy, medicine, microbiology, molecular biology and informatics. The team is slated to double in next three years. VIMTA is a multi-site organisation with more than 300,000 sq ft world-class laboratory facilities. Its facilities in Andhra Pradesh include a life sciences campus and central laboratory at Hyderabad along with Clinical Laboratories at Visakhapatnam.
Indian Immunologicals
Limited (IIL)
IIL produces a range of veterinary vaccines such as foot -and -mouth disease (FMD) vaccine, anti-rabies vaccine, bacterial vaccines, canine vaccines and a host of other combined vaccines. IIL's range of human vaccines comprises of rabies, Hepatitis B, measles, MMR and DPT. It has one of the leading research and development centres in India. The company has headquarters and manufacturing facilities in Hyderabad, an institute in Ooty and an overseas office in Vietnam.
PAREXEL Over the past 25 years, PAREXEL has developed significant expertise to assist clients in the worldwide pharmaceutical, biotechnology and medical device industries with the development and launch of their products in order to bring safe and effective treatments to the global marketplace for the patients who need them. Headquartered near Boston, Massachusetts, PAREXEL operates in 69 locations throughout 52 countries around the world, and has approximately 9,000 employees. It has offices located at Hyderabad and Bengaluru and offers contract services in clinical evaluation through to commercialisation and medical marketing to device industries.
Bharat Biotech
International Limited
(BBIL)
BBIL is a multidimensional biotechnology company specialising in product-oriented research, development and manufacturing of vaccines and bio-therapeutics. BBIL's state-of-the-art manufacturing plant is the largest of its kind in Asia-Pacific. The first bio-pharma facility in the country to be audited and approved by the Korean Food & Drugs Administration (KFDA), it is located at the Genome Valley, Hyderabad. Built with an investment of over US$ 22 million , the facility's manufacturing, control procedures and protocols, conform to the stringent standards laid down by internationally recognised institutions such as USFDA and WHO.
Pharmaceuticals and biotechnology – company profiles … (6/7)
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
71
Biological E. Limited Biological E. manufactures sera and vaccines, oncology drugs, cardio-vascular, bulk drugs,
formulations and herbal products. The company has established alliances with world-renowned
pharma companies such as Evans Medical of the UK, Solvay & Cie of Belgium (veterinary products),
Pasteur Meraux Connaught of France (sera and vaccines) and ICI, an exclusive marketing tie-up for
animal health products. Biological E. Limited has several firsts to its credit. It was the first
pharmaceutical company to manufacture anti-TB drugs in India and the first private sector vaccine
manufacturer in the country. The company is investing approximately US$ 50 million towards the
development and expansion of infrastructure. State-of-the-art equipment is being installed in all
locations to meet the US FDA and European MEA standards in manufacturing, quality control and
pre-clinical activities. Another project underway is the modern biotech facility, with an investment
of US$ 21.7 million at the Genome Valley.
Novartis Novartis has presence in over 140 countries and employs 97,000 people. Has been present in India
for the last 60 years in healthcare sector. Setting up its healthcare-related IT/ITeS and R&D facility
in Hyderabad. The company has a development centre at Hyderabad which integrates development
franchises of the company though information technology. The facility also operates as a global
centre for marketing and sales, sourcing, business planning and analysis. In 2009-2010, the company
earned revenue of US$ 131 million.
Krebs Biochemicals &
Indisutries Limited
(KBIL)
KBIL was established in the year 1991 as a public limited company with the objective of establishing
commercially viable biotech processes with applications in medicine and agriculture industries. The
company has pioneered in fermentation technology over the last decade. KBIL manufacturing Unit-I
is located at Regadichelika village of the Nellore district. Products manufactured from Unit-I facility
are ephedrine, pseudoephedrine and their salts, which are used for making formulations for
respiratory ailments, viz., cough and cold .
Pharmaceuticals and biotechnology – company profiles … (7/7)
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
72
Apparel and textiles
• The state is a leading producer of cotton, with a production of about 3.46 million tonnes in 2008-09. Medium grade and superior long staple varieties of cotton are predominantly grown in the state.
• The State Government has identified textile sector as one of the long term growth engines. To utilisepotential of the sector, the State Government has already established five apparel export parks (AEP) and seven textile parks. It proposes to establish another 15 AEPs in the state.
• There are over 80 spinning mills including a number of 100 per cent export-oriented units with state-of-the-art machinery, producing cotton, synthetic and blended yarns. There are 1,079 weaving units with a production capacity of 789 million metres of fabric per annum.
• The state has, moreover, emerged as a large textile processing centre. Over 100 units are set up in the state with a processing capacity of 13 million metres of cloth per annum.
• The number of power looms in the state aggregates to around 44,000 employing approximately 1,10,000 workers.
• Apparels, fabrics and furnishings have been identified as potential products by the state. It aims to achieve, annually, US$ 6 billion in textiles exports, and US$ 2 billion in handloom exports by 2010.
• The state aims to increase its domestic contributions for apparels and textile products to US$ 4.87 billion. The domestic sales of the state are expected to be around US$ 3 billion per annum by 2010.
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
73
• During March, 2005 and March 2010, the agricultural sector in the state witnessed a growth of 14.1 per cent and the total crop area increased to 12.2 million hectares by 2008-09.
• A variety of agro-climatic conditions in the state make it conducive for growing a variety of horticulture crops such as fruits, vegetables, spices, tuber crops, plantation crops and floriculture.
• The state is one of the large producer of rice in India. It is a leading producer of cash crops such as tobacco, groundnut, dry chilly, turmeric, oilseeds, cotton, sugar and jute.
• The state is one of the largest producers of horticulture products in India, production is expected to reach 22.9 million tonnes by 2020.
• The state produces some of the finest varieties of mangoes, grapes, guavas, papayas and bananas.
• It is the number one producer of sweet lime, lime, papaya, chilly, turmeric and palm oil.
• To achieve the growth envisaged for the agricultural sector, the state aims to attract investments of around US$ 17.07 billion by 2010, with the total investment until 2020 targeted at around US$ 39.02 billion.
Agri and processed food sector
Key players
• CongAgra Foods
• Cargill
• ITC
• APDDCF
• Ushodaya Enterprises
• Kraft foods
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
74
CongAgra Foods ConAgra Foods, US is one of the world‘s leading food companies. It has partnered with ITC
Agro and established an R&D centre to adapt food technologies to Indian conditions. The
company is now a US$ 320 million entity with a dominant market position in the edible oils and
branded foods sectors. Edible oil brands include Sundrop, Healthy World, ACT II and Rath.
Agro Tech Foods Limited, an affiliate of ConAgra Foods have their registered office at
Hyderabad.
Cargill Cargill maintains a number of businesses in India, with operations including the handling and
processing of a wide range of products, including refined oils, grain and oilseeds, sugar, cotton
and animal feed. In addition, Cargill‘s presence in India has been growing since it began a joint
venture operation in 1987. In 2006, Cargill entered into a joint venture and subsequently
owned a leading shrimp feed manufacturing farm in Rajahmundry. It has also entered a joint
venture project to set up a sugar refinery in the state.
ITC ITC is a large Indian business conglomerate with diverse business interests including agri-foods,
paper, fast moving consumer goods, lifestyle and retailing and hotels. In 2009-2010, total
revenue of the company was US$ 5.5 billion. A substantial part of ITC‘s agri-business is located
in Andhra Pradesh. The company has one unit each at Anaparti and Chirala and a research
centre in Rajamundhry. The company also runs its innovative internet based ―e-choupal‖
initiative in the state for the benefit of the farmers.
Agri and processed food sector – company profiles … (1/2)
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
75
Andhra Pradesh Dairy
Development Cooperative
Federation (APDDCF)
APDDCF runs 12 dairy plants and manufactures milk products under the Vijaya brand name.
These plants together have a capacity of 2,437 litres per day. Products include butter, UHT
milk, milk powder, ghee, flavoured milk, khoa, kulfi and processed cheese. It is one of the 15
dairy cooperatives operating under the National Dairy Development Board (NDDB).
Ushodaya Enterprises Established in 1980, the company manufactures products such as pickles, fruit and vegetable
purees, instant food mixes, etc., under the well known brand name – Priya. Headquartered in
Hyderabad, the Ramoji group company uses technology and is actively involved in research and
development of food products.
Kraftfoods Multinational branded food and beverages company, Kraft Foods, established a soft drink
manufacturing plant in Andhra Pradesh in 2001 and is currently working on a new agronomy
project.
Agri and processed food sector – company profiles … (2/2)
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
76
Forestry Fisheries
• Andhra Pradesh has
6.21 million hectares
of forest area, which
accounts for 22.6 per
cent of the total
geographical area of
the state.
• In 2009-2010,
contribution of
forestry to the GSDP
was estimated at US$
441 million.
• The fisheries sector has been identified as one of the six growth engines in agriculture sector under,
Vision-2020 of the state.
• Among Indian states, Andhra Pradesh is one of the largest producer of brackish-water shrimp and
fresh-water prawn production.
• In 2008-09, total production of fish in the state was 1.25 million tonnes compared to 1.05 million
tonnes a year ago. Production of fish comprised of around 960,000 tonnes of inland fish (including
fresh water prawn & brackish water shrimp) and around 290,000 tonnes of marine fish.
• The contribution of fisheries to GSDP in 2009-2010 was estimated to be US$ 2.4 billion, over 25 per
cent increase over 2008-09 .
• The Andhra Pradesh Government has entered into an agreement with the US-based World Tuna
Development International (WTDI) to develop tuna fishery in the Bay of Bengal.
• The State Government will invest US$ two million towards 51 per cent of the equity in the
proposed joint venture company named as Andhra Pradesh Marine Fisheries Development Limited
(APMFD) while WTDI will invest the remainder. The balance US$ 11.5 million will be taken as term
loans from banks.
Sources: Commodities Bureau Agriculture action plan 2009-2010, Department of Agriculture website, http://agri.ap.nic.in,
Andhra Pradesh economy in brief 2008, APDES website, www.apdes.ap.gov.in, news publications, Socio Economic Survey 2009-2010.
Agriculture and allied industry … (1/2)
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
77
Agriculture and allied industry … (2/2)
BUSINESS OPPORTUNITIES
• Animal husbandry is rapidly expanding in the state and is playing a significant role in improving the rural economy.
• This sector provides gainful employment to a large number of small and marginal farmers and agricultural labourers and enhance their economic status.
• Activities of the animal husbandry department have been oriented towards improving health of livestock and increased production of milk, eggs and meat.
• As of March 2010, the state had 5,083 institutes supporting production in the animal husbandry sector and 5,320 institutes for health of livestock.
ProductProduction
(2008-09)
Production
(2007-08)
Milk
(million tonnes)9.6 8.9
Egg (in million) 18,344 17,588
Meat
(million tonnes)0.6 0.55
Sources: Socio Economic Survey of Andhra Pradesh, 2009-2010.
Andhra Pradesh November 2010
78
Petroleum, chemicals and petrochemicals
• According to the Ministry of Petroleum and Natural Gas, for 2008-09, the net natural gas production was about 1,524 million cu m. The state‘s Krishna-Godavari basin area has a total hydrocarbon resource base of 1,130 million metric tonnes.
• Andhra Pradesh is set to become the second Indian state after Gujarat to enter the oil and gas exploration and production segment through bids for oil and gas blocks under the Central Government‘s New Exploration Licensing Policy (NELP).
• The Andhra Pradesh Government decided to enter the oil and gas exploration and development sector and set up a special purpose vehicle (SPV), the Andhra Pradesh Gas Infrastructure Corp Limited as a joint venture between two state-owned entities. The infrastructure provider for industries in the state, APIIC, would hold 51 per cent in the SPV and AP Genco, would hold the balance.
• Hindustan Petroleum Corporation‘s Visakhapatnam plant has expanded its refined crude throughput from the existing 7.57 million tonnes in 2005-06 to 8.79 million tonnes in 2009-2010.
• In October 2009, the Department of Petroleum, Government of India, signed a memorandum of understanding with the Andhra Pradesh Government for setting up a petroleum, chemicals and petrochemicals investment region (PCPIR) in the Visakhapatnam-Kakinada region as an industrial cluster. The investments expected in the PCPIR are estimated to be around US$ 74.6 billion. The State Government has initiated process of appointing consultant for preparing master plan for the project.
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
79
Tourism
• Andhra Pradesh is known for its pristine beaches, sacred places of worship, lush green forests, spicy cuisine and hospitable people.
• With tourist attractions such as Charminar, Golconda Fort, and Ramoji Film City, Araku Valley, Borra Caves, Tirupati Balaji Temple, and Puttaparthi Saibaba, the state offers attractive investment opportunities to developers and investors.
• The state ranked seventh in international tourist arrivals and accounted for 5.8 per cent of the total international tourist arrivals in India in 2009. With 24.2 per cent share of domestic travelers, the state ranked first in domestic tourist arrivals.
• Nine projects have been sanctioned for the state by the Ministry of Tourism during 2008-09, at a project outlay of US$ 21 million.
• The State Government has identified Hyderabad, Visakhapatnam, Tirupati, Vijayawada, Nagarjunasagarand Warangal for tourism development.
BUSINESS OPPORTUNITIES
770 789 795
0
200
400
600
800
1000
2007 2008 2009
Arrival of international tourist in Andhra Pradesh (in ‗000)
Arrival of domestic tourist in Andhra Pradesh (in million)
127.9 132.7
157.5
0
20
40
60
80
100
120
140
160
180
2007 2008 2009
Source: Ministry of Tourism, Government of India
Andhra Pradesh November 2010
80
Tourism – upcoming mega projects
• Kadapa heritage circuit
• Tirupati heritage circuit
• Charminar area
• Mega park near Nagarjuna Sagar
Sources: Directorate of Tourism and Directorate of
Economics and Statistics, Andhra Pradesh.
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
81
Leather
• The state is a major producer of hides and skins, producing about 19 million pieces per annum, constituting around 10 per cent of the country‘s output.
• The 34 large and medium tanneries in the state produce about 40 million sq ft of processed hides and skins per annum.
• The state has15 leather goods and footwear manufacturing units in the large- and medium-scale sector.
• The Government provides financial assistance in the form of investment grants to the extent of 30 per cent of cost of plant and machinery for SSI and 20 per cent of cost of plant and machinery for other units, subject to a ceiling of US$ 120,000 for technology up-gradation or/and expansion.
Leather Industries Development Corporation (LIDCAP)
LIDCAP is the nodal agency for leather industry
development in the state.
Plans to establish71 mini-industrial parks on 25 acres of
land for processing raw material, 16 medium industrial
parks of 100 acres each for processing semi-finished
leather, six mega industrial parks of more than 300 acres
each including an international leather complex at
Krishnapatnam (KILC).
KILC is a world class infrastructure for leather tanning and
leather processing. The project finance is supported by the
Government of India, Government of Andhra Pradesh and
has private participation in the SPV.
KILC is located at Krishnapatnam in the Nellore district in
an area of 412 acres near the sea coast. It is proposed that
KILC will house about 25 tanning units in a floor area of
250 acres of land and about 21 leather processing units
with capacities ranging between six and 25 tonnes and a
total capacity of 300 tonnes in a floor area of 220 acres.
Source: Leather sector in AP, ILC profile, LIDCAP website,
www.lidcap.org
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
82
Mines and minerals
• The state‘s mineral production was valued at US$ 2.7 billion in 2009-10.
• According to Ministry of Mines, in 2008-09, Andhra Pradesh is estimated to account for approximately 12.4 per cent to total mineral production in the country.
• Coal is the major mineral produced in the state which contributed 29.5 per cent of the total value of mineral production in the state.
• Production in iron ore increased by eight per cent, while that of manganese ore by 31 per cent and petroleum (crude) by 3.2 per cent in 2008-09.
• Production of silica sand increased by 49 per cent, ochre by 11 per cent, quartzite by 60 per cent, dolomite by 16 per cent, limestone by 16 per cent and coal 11 per cent in 2008-09.
Contribution to national minerals
resources (%) in the country
Barytes 94
Ball clay 63
Corundum 61
Diamond 40
Calcite 39
Mica 28
Garnet 26
Limestone 20
Sources: Indian mineral scenario - states, Ministry of Mines
website, www.mines.nic.in
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
83
Gems and jewellery
• Hyderabad is one of the leading hubs for the jewellery sector in India. The state produces a wide array of precious- and semi- gems as well as pearls.
• The AP Gems and Jewellery Park has been developed on an area of 2.5 acres in Hyderabad with an investment of around US$ 12.68 to US$ 13.90 million.
• The park is a joint venture between the Phoenix Group, IOI Corporation and AP State Trading Corporation.
• It has been developed as a state-of-the-art facility in which the floor space will be sold to jewellers and pearl dealers.
Hyderabad Gems SEZ Limited (HGSEZ)
Situated at Hardware Park near the upcoming international
airport.
SEZ to be set up at a cost of about US$ 121.95 million. The
200-acre park will house more than 75 diamond, gold and
watch manufacturing units and will generate 50,000 new jobs.
An international trade centre, a world class convention
centre, plus an exhibition area will also be a part of the SEZ.
It is the first jewellery park to have an integrated
manufacturing and trading facility.
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
84
Other growth sectors … (1/2)
Hospitality and entertainment Leisure and entertainment
• Being a major tourist hub in the country, the state is making rapid
strides in the retail and entertainment segment.
• To attract new investments in the sector, the Government offers
various incentives including an investment subsidy of 20 per cent of
the project cost, subject to a maximum of US$ 50,000.
• To encourage up-gradation to international standards, selected
hotels will be offered an incentive of 15 per cent of the project cost.
• The sector is attracting investments in projects such as
world -class spas, entertainment centres, mega
shopping malls, multiplexes, business convention
centres and theme parks.
• Urban entertainment, including amusement parks, has
redefined leisure and entertainment activities in the
city.
Name PromotersProject cost
(US$ million)Location
Park Hyatt 7-Star hotel Gayatri Hi-Tech Hotels Limited 76.1 Banjara Hills, Hyderabad
Leela Palace Kempinsky hotel Hotel Leelaventure Limited 67.4 Hyderabad
Hotel projects under construction
Source: www.projectstoday.com
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
85
Other growth sectors … (2/2)
Retail Electronics hardware Semiconductors
• Organised retail is catching up fast with significant
mall development in the pipeline.
• Shopping malls are being developed in suburban
and peripheral areas followed by central business
district.
• Reliance Retail opened its first 'Reliance Fresh'
stores in Hyderabad and Secunderabad in late
2006.
• Reebok has opened its largest store in the world
in Hyderabad.
• GVK group opened ‗GVK one‘ a world-class
shopping space measuring 6,25,000 sq . ft in May
2009.
• ‗GVK one‘ also hosts a 1,200-seat INOX
multiplex along with a themed entertainment
centre ‗Funzone‘.
• Key segments within the electronics
hardware industries in the state:
• Telecommunications
• Industrial electronics
• Test and measuring equipment
• Computer and consumer electronics
• Strategic electronics
• There is immense scope for investments
in the fields of nanotechnology,
semiconductors, computer peripherals,
appliances, precision engineering,
integrated circuits, large scale
integration chips (LSICs) and very large
scale integration chips (VLSICs).
• An investment of US$ 3
billion has been announced
for setting up a fabrication
unit in the Fab City,
Hyderabad.
• Fab City has been allotted
1,200 acres, close to the
new international airport.
• The Electronics Hardware
Policy of the state offers
various incentives such as
exemptions,
reimbursements, facilitating
technical education, etc. to
promote the industry.
Sources: News publications, "Urban infrastructure", GVK group website, www.gvk.com
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
86
Major industrial projects being implemented
Project Sector PromoterInvestment
(US$ million)Location
Pranahita-Chevella lift irrigation scheme Irrigation Government of Andhra Pradesh 8,369.6 Bejjur, Adilabad
Krishnapatnam ultra-mega power project Power Coastal Andhra Power Limited 3,695.7 Krishnapatnam,
Nellore
Krishnapatnam power project (1,600 MW) Power AP Genco 1,813.0 Nellore
Integrated steel project, Phase-I Steel Bramhani Industries Limited 978.3 Cuddapah
Galeru Nagari Sujala Sravanthi irrigation
projectIrrigation Government of Andhra Pradesh 3,635.0
Cuddapah,
Nellore,
Chittoor
Solar energy equipment project (120 MW) Power X L Telecom Limited 782.61 Shamsabad,
Hyderabad
Diesel hydro treater project - Visakh Refinery RefineryHindustan Petroleum Corporation
Limited (HPCL)782.0 Visakhapatnam
Polavaram irrigation project Irrigation Government of Andhra Pradesh 658.7 West Godavari
Greater Hyderabad growth corridor project Roads Hyderabad Growth Corridor Limited 652.2 Medak, Ranga
Reddy
Godavari drinking water supply schemeWater
supplyHyderabad Metro Water Supply &
Sewerage Board652.2 -
Finished steel project Steel Rashtriya Ispat Nigam Limited 652.2 Visakhapatnam
Source: www.projectstoday.com
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
87
Key industrial projects being planned
Project Sector PromoterInvestment
(US$ million)Location
Hyderabad elevated-MRTS project TransportHyderabad Metro Rail
Limited2,637.4 Hyderabad
Kakinada refinery project RefineryKakinada Refinery &
Petrochemicals Limited3,260.9
Kakinada, East
Godavari
Bhavanapadu coal-based power project PowerEast Coast Energy Private
Limited2,407.6 Srikakulam
Alumina refinery project AluminiumJindal South West
Aluminium Limited1,956.5 Boddavara
Multi-product Industrial Park Industrial park
Yeswanth Industrial
Infrastructure Projects
Private Limited
1,652.2 Perupalem
Alumina refinery project AluminiumNational Aluminium Co
Limited1,521.7 -
Coal-based power project Power
Sheshadri Power &
Infrastructure Private
Limited
1,521.7 Hindupur
Business complex ConstructionCBD Tower Private
Limited1,521.7 Hyderabad
Road up-gradation (Icchapuram-
Srikakulam-Ankapalli-Rajahmundary)
project
RoadsNational Highways
Authority of India771.7 Multiple locations
Kakatiya power project, Stage-II Power AP Genco 645.4 Warangal
Source: www.projectstoday.com
BUSINESS OPPORTUNITIES
Andhra Pradesh November 2010
88
Contents
Advantage Andhra Pradesh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Andhra Pradesh
ANDHRA PRADESH November 2010
89
S NoApprovals and
clearances requiredRespective departments of state Estimated time
1 Registration, IEM, Industrial licenses Registrar of firms 7 days
2Allotment of land/shed in industrial estates or industrial areas
Andhra Pradesh Industrial Development Corporation
7 days for up to 1,000 sq m
21 days for above 1,000 sq m
3Acquisition and alienation of government lands
Chief Commissioner of Land Administration (CCLA)
45 days
4 Site and building plan approval
Panchayat Raj Department
7 daysUrban Development Authority
Town and Country Planning
Municipality
5 Change of land use
Urban Development Authority
45 daysTown and Country Planning
Municipality
6
Consent for establishment under pollution control
Green
AP Pollution Control Board
7 days
Orange 21 days
Red 45 days
Key approvals required … (1/2)
DOING BUSINESS IN ANDHRA PRADESH
Source: Commissionerate of Industries, Government of Andhra Pradesh
Andhra Pradesh November 2010
90
Key approvals required … (2/2)
S NoApprovals and
clearances requiredRespective departments of state Estimated time
7
Consent for
operation under
pollution control
Green
AP Pollution Control Board
7 days
Orange 21 days
Red 45 days
8 No-objection certificate for fire safety Fire Services Department 15 days
9 Excise registration Excise Department 14 days
10 VAT/CST Registration Commercial Taxes Department 7 days
11 Power feasibilityPower distribution companies
7 days
12 Power connection 23 days
13 Approval of factory plansFactories Department
7 days
14 Factory license 7 days
15 Sanction of water supply Hyderabad Metro Water Supply and Sewerage Board
7 days
16 Water connection 23 days
17Permission to draw water from rivers and/or public tanks
Irrigation Department 30 days
DOING BUSINESS IN ANDHRA PRADESH
Source: Commissionerate of Industries, Government of Andhra Pradesh
Andhra Pradesh November 2010
91
Cost of doing business in Andhra Pradesh
Parameter Cost
Land price (US$ per sq m) 20 to 200
Labour (US$ per man year) 825 to1,250
Lease rent (US cents per sq ft) 36.6 to 61.0
Electricity (US cents per unit)
Commercial: 15.8
Industrial: 9.8 to10.8
Residential rent (US cents per sq ft per month) 12.6 to 62.5
Five-star hotel room (US$ per night) 73.0 to 512.0
Water (US cents per 1,000 litres) Commercial: 50.0
Industrial: 62.5
Sources: Andhra Pradesh Government websites and industry sources
DOING BUSINESS IN ANDHRA PRADESH
Andhra Pradesh November 2010
92
Single-window approval mechanism
• Andhra Pradesh is the first state in the country to have enacted the Industrial Single Window Clearance Act No 17 of 2002. The Act made it compulsory for new industries to register with the single-window to obtain clearances quickly. It also simplified procedures for getting industrial clearances.
• Committees were constituted at district and state levels to communicate to the applicant, the status of their clearances. It has set time slots for issuing clearances and incorporated a provision for deemed approval after the expiry of time limit.
• District level committees can clear investments not exceeding US$ 1,054,852. State level committees can clear those exceeding US$ 1,054,852.
• Above the district and state level committees is an empowered committee headed by the Chief Secretary of the State Government who reviews and monitors disposal of applications. Overall, a State Board under the chairmanship of the Chief Minister oversees the progress of the scheme.
• The maximum time taken to issue clearance of applications at all stages is 45 days. Violation of provisions of the Act made either through self-assessment or otherwise would invite a penalty of US$ 108 in the first instance and US$ 217 in the second instance.
DOING BUSINESS IN ANDHRA PRADESH
Andhra Pradesh November 2010
93
Key investment promotion offices … (1/2)
State Investment Promotion Board (SIPB)
The SIPB has been created by the Government of Andhra Pradesh with the state Chief Minister as Chairman and members
consisting of the Finance Minister , Minister for Revenue, Minister for Major Industries, Minister for Energy, and other ministers
connected with specific projects as special invitees as well as the Chief Secretary to Government as member or convener.
The SIPB meets once a month to make final decisions regarding investments and promotion of industries in Andhra Pradesh and
for approval of the projects. The project proposals and other issues regarding investments and promotion of industries in Andhra
Pradesh are processed by the Industries & Commerce Department and submitted to the Board. The Industries & Commerce
Department also circulates the project proposals, with detailed notes, to all the concerned departments, for their action. The
detailed note along with the reaction of the concerned departments are presented and discussed in the meeting of the Board,
before taking a final decision. It is ensured that all final and necessary decisions are given for the industrial projects within a period
of four weeks.
The Industries & Commerce Department issues a single order on each project, incorporating the decisions of the Board. The
concerned Departments of Secretariat issue further necessary orders, with which they are concerned, on the decisions taken by
the SIPB.
Major Industries, Commerce and Export promotion Ministry
• Controls the office of the Principal Secretary, Industries & Commerce, Commissioner of Industrial Promotion
• They are responsible for SSIs and control the office of the Commissioner of Industries & Export Promotion, Commissioner
Handlooms and Textiles, Commissioner for Sugar and Director, Mines and Geology.
• The Industries & Commerce department is headed by the Industries Minister and is controlled by the Principal Secretary.
DOING BUSINESS IN ANDHRA PRADESH
Andhra Pradesh November 2010
94
Key investment promotion offices … (2/2)
Corporations under Industries and Commerce Department
Andhra Pradesh Industrial Development Corporation (APIDC)
Andhra Pradesh Industrial Infrastructure Corporation (APIIC)
Andhra Pradesh Mineral Development Corporation (APMDC)
Andhra Pradesh State Finance Corporation (APSFC)
Andhra Pradesh State Trading Corporation (APSTC)
Andhra Pradesh State Handloom Weavers Co-operative Society Limited (APCO)
Leather Industries Development Corporation of Andhra Pradesh (LIDCAP)
Andhra Pradesh Handicrafts Development Corporation (APHDC)
Andhra Pradesh Khadi & Village Industries Board (KVIB)
DOING BUSINESS IN ANDHRA PRADESH
Andhra Pradesh November 2010
95
Contact list
Key agency Contact Information
AP Industrial Infrastructure Corporation
6th Floor, Parisrama Bhavan
Fateh Maidan Road, Basheerbagh
Hyderabad - 500 004
Phone: 91-40-2323 7622, 2321 2798
Fax: 91-40-2323 3393, 2323 3251
E-mail: [email protected]
Website: www.apiic.in
Department of Industries and Commerce
Industries and Commerce Department
2nd Floor, D Block, Room No-348A
Secretariat
Hyderabad - 500022
Phone: 91-040-23454449
Fax: 91-040-23452985
E-mail: [email protected]
Website: www.industriesportal.apcgg.gov.in
DOING BUSINESS IN ANDHRA PRADESH
Andhra Pradesh November 2010
96
Annexure
Year INR equivalent of one US$
2000 46.6
2001 48.3
2002 48.0
2003 45.6
2004 43.7
2005 45.2
2006 45.0
2007 42.0
2008 40.2
2009 46.0
2010 47.4
Exchange rates
Averages for the year
DOING BUSINESS IN ANDHRA PRADESH
Andhra Pradesh November 2010
97
India Brand Equity Foundation (―IBEF‖) engaged
ICRA Management Consulting Services Limited (IMaCS)
to prepare this presentation and the same has been
prepared by IMaCS 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 IMaCS‘s and IBEF‘s knowledge and belief, the
content is not to be construed in any manner whatsoever
as a substitute for professional advice.
IMaCS 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 IMaCS 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.
DISCLAIMER
ANDHRA PRADESH November 2010