Andhra Pradesh

India’s foremost Investment Destination

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Andhra Pradesh - Overview

8th

largest state in India

~ $ 82 BnSGDP (2014-15)

974 km/ 13% of India’s coastline

Rapidly urbanizing state • 30% of population is urban • Major urban centers in every district envisaged• Greenfield capital city of Amaravati

Rich natural resource base

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Andhra Pradesh – India’s gateway to the world

Natural advantages like long coastline and deep drafts enable ports which can act as linkages with major markets in the world

Direct shipping calls from South East Asian economies to AP ports vis-à-vis ports on west coast will save transit time of around 2-3

days

Accelerated industrialization in the region, agglomeration of cargo

from distant hinterland and increased connectivity will create

windows of opportunity

AP’s location is ideal for emerging as global logistics

hub of choice

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Andhra Pradesh’s growth drivers

Physical Infrastructure

Skill Base

Social Infrastructure

Leadership

Industrial Corridors

Policy Interventions

Ease of Doing Business

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Infrastructure will form the backbone of development in AP

• First state in South India to offer 24X7 power to industry

• Generating capacity – 8300 MW

• Capacity Addition –17000 MW by 2019

• Focus on Green Energy Projects

• Massive Strengthening of electricity grid

• Transparent policy of land allotment

• Creating a land bank of 1 million acres

• Online Land Bank and allocation

• Affordable land rates• Scope for developing

industrial parks on PPP/ private basis

• Fiscal incentives –100% reimbursement of stamp and transfer duty

• Ports – 14 under operation, 6 under development and 5 planned to be developed

• Airports – 6 existing, 1 mega Aerotropolisand 5 no-frills airports to be developed

• Vast network of road, rail and inland waterway connectivity

Power Land Connectivity

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Andhra Pradesh is a leader in labour reforms to support the large number of skilled human resources in the state

First State to Amend Contract Labour Act

Definition of factory (for applicability of Factories act) relaxed - from minimum of 10/20 employees in a

facility to 20/40

Rules regarding government registration of contract labour relaxed from minimum 5 to minimum of 50

Defined “Go-Slow” as illegal activity

Maximum limit of number of workers, where management can initiate lockout/ closure/

retrenchment of facility without government permission increased from 100 to 300

POLICY INTERVENTIONS SKILL AVAILABILITY

18 State Universities

78 Government Industrial Training Institutes

368 Engineering Colleges> 0.16 million students intake

128 Pharmacy Colleges> 11,700 students intake

~ 400 Management Schools> 46,500 students intake

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Andhra Pradesh ranks amongst top 3 Indian states in creating conducive business environment

EASE OF DOING BUSINESS

COUNTRY DESKS FOR STRATEGIC PARTNERS

APPROVALS IN 21 DAYS

SINGLE DESK PORTAL

INVESTMENT FACILITATION

OFFICERS

INVESTMENT TRACKER

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Andhra Pradesh has identified 10 focus manufacturing sectors, where targeted approach is being followed

AGRO AND FOOD PROCESSING

MINERAL BASED INDUSTRY

LIFE SCIENCES

TEXTILE AND APPAREL

ELECTRONICS AND IT

AUTOMOBILES AND AUTO COMPONENTS

AEROSPACE AND DEFENCE

PETROLEUM, CHEMICALS AND PETROCHEMICALS

ENERGY

LEATHER

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Best-in Class Policy environment in Andhra Pradesh

INDUSTRIAL DEVELOPMENT POLICY

Targets 2020

Investment:` 2 Lakh Crore (US$ 32 Bn)

Employment:10 Lakh (1 Mn.)

new jobs

SECTORAL POLICIES

Auto & Auto Components Textile & Apparel Biotechnology

Electronics Manufacturing

Aerospace & Defence

Food Processing MSME Industrial Parks

BEST IN CLASS POLICY INSTRUMENTS

Development of Clusters

Skill Development

Tailor-made incentives for Mega Projects

Reimbursement of VAT/SGST/Stamp Duty

Capital, Interest and Power Cost subsidies

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3 large Industrial Corridors and many Industrial hubs across State being developed

VISAKHAPATNAM INDUSTRIAL HUB

(3 Airports, 3 Ports)

CHENNAIBENGALURU

AMARAVATIINDUSTRIAL HUB

(2 Airports, 2 Ports)

� 4 Major Ports, 4 Active Airports & NH7 which acts as a spine to AP

� Excellent Rail & Road Network� 32 SEZs, 258 Industrial Parks� Focus on upgrading Infrastructure� VCIC & CBIC - $1.5 Billion Investment

on Infrastructure

HyderabadBhogapuram

Kakinada

Tricity (Tirupati-Nellore-Chittoor)

(3 Airports, 2 Ports)

Airports

PortsVisakhapatnam– Chennai Industrial Corridor (VCIC) Chennai-Bengaluru Industrial Corridor (CBIC)

Bengaluru – Hyderabad proposed Corridor

Krishnapatnam Node – will leverage its proximity to rapidly developing Krishnapatnam Port

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•Nellore district/ Andhra Pradesh state

District/ State

•170 km from city centre of Chennai along NH-5 and access road to Krishnapatnam port •40 km from Nellore city

Distance from Metropolitan/major city

•20 km from NH-5, however no direct access from the national highway • Railway access connects Krishnapatnam port to the mainline; however no railway access to the node area so far

Accessibility to trunk road and rail network

•10 km from Krishnapatnam port •90 km from Tirupati airport

Accessibility to major transport facilities (port, airport)

•80 km from the proposed SEZ at Naidupeta on NH-5 •130 km from Sri City on NH-5

Major industrial locations in the surrounding area

•South of Nellore District has a low population density (under 200 people/sq.km), except Nellore capital city - 1,000 people/sq.km. •There are no core cities in the hinterland of the node area

Demographic profile

221

50 km

NH5

NH5

Krishnapatnam

port

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Andhra Pradesh’s engagement with Japan

Delegation from Andhra Pradesh (led by Hon’ble CM) visited Japan in November 2014 and July 2015

Met Hon’ble PM of Japan, Hon’ble Chief Cabinet Secretary, METI, MLIT, JBIC, JICA and private companiesMoUs with METI, NEDO, Sumitomo Corporation, NEC, Mizuho Bank Potential areas of Collaboration

Capital region – AmaravatiUrban Development Infrastructure Development (Ports, Irrigation) ManufacturingEnergy SystemsAgriculture & Food Processing

INVESTMENT SEMINAR WITH 50 JAPANESE COMPANIES HELD ON 5TH MARCH 2015

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Proactive Governance to Promote Japanese Investments

• Promote cultural ties between AP and Japan• Japanese classes in Andhra University and Nagarjuna University

• Japanese schools in Visakhapatnam, Vijayawada and Guntur

• Dedicated Japanese industrial townships and industrial clusters proposed

• Tax Reforms to boost investment sentiment (GST proposed to be implemented by April

2016)

• Closer interaction with Japan

• Joint working group with participation from METI, JICA and JETRO

• Focused sector teams (Electronics, Food Processing, Marine, Energy, Engineering,

Logistics)

• Periodic visits of Government of AP to Japan

We welcome you to Sunrise Andhra Pradesh