TELANGANA - ibef.org · 3 TELANGANA For updated information, please visit Hyderabad is the major IT...

54
For updated information, please visit www.ibef.org July 2017 TELANGANA THE 29th STATE OF INDIA

Transcript of TELANGANA - ibef.org · 3 TELANGANA For updated information, please visit Hyderabad is the major IT...

For updated information, please visit www.ibef.org July 2017

TELANGANA

THE 29th STATE OF INDIA

Table of Content

Executive Summary .…………….….…….3

Advantage State …...…..………………….4

Telangana Vision ………………………….5

Telangana – An Introduction …….……….6

Budget 2016–17 …………..………...……18

Infrastructure Status ................................19

Business Opportunities ……..……….......38

Doing Business in Telangana ………...….52

State Acts & Policies …….……….............53

For updated information, please visit www.ibef.org TELANGANA 3

Hyderabad is the major IT hub of the state across the country. During 2015-16, the value of IT exports from

the state of Telangana was recorded at US$ 13.27 billion. The launch of T-Hub in November 2015 has

created most energetic community of entrepreneurs across the world for boosting the success stories of the

start-ups in India.

EXECUTIVE SUMMARY

At current prices, Telangana’s GSDP was estimated at US$ 101.56 billion during 2016-17.

Services sector is the major contributor in the GSDP of Telangana.

Economic growth

driven by service sector

Source: Telangana State Statistical Year book,2015, MOSPI, Budget 2017-18

Hyderabad – The IT

hub of the state

In 2014-15, “Telangana Samskruthika Sarathi”, a distinct state level body was created to generate awareness

about the cultural heritage of Telangana and provide information regarding the various policies and schemes

of the Government of Telangana.

Promoting tourism &

historical past

In 2017-18, the overall planned and non-planned allocation for various sectors of the state amounted to US$

23.23 billion.

Growth in annual

budget

For updated information, please visit www.ibef.org TELANGANA 4

ADVANTAGE: TELANGANA

Rich labour pool

Majority of the prominent educational universities and

institutions Telangana are located in Hyderabad. These

institutions provides a massive pool of labour which

acts as a catalyst in the development of the state.

The state government has announced scholarships to

attract more youth to these institutions.

Policy and

institutional support

Under the Department of Information Technology,

Electronics & Communications, the Government of

Telangana introduced three new policies in 2016,

namely, Telangana IT Policy, 2016, Telangana

Electronics Policy, 2016 and Telangana Innovation

Policy, 2016.

Availability of

readymade capital

Telangana accounts for easy access to capital along

with infrastructure which is benefiting the state.

Majority of the multinational companies holds

production base in Hyderabad.

Information technology and pharmaceutical sectors are

the fastest growing sector of the state and driving the

economic development of Telangana.

June 2017

Installed

power

capacity:

12,148.78

MW

2018E

Installed

power

capacity:

23,675 MW

Advantage

Telangana

Growing economy and improving infrastructure

Telangana’s GSDP grew at a CAGR of 10.50%

between 2011-12 and 2016-17.

The state government plans to build more airports in

the state to improve connectivity.

Source: Telangana State Statistical Year Book, 2015, GSDP: Gross State Domestic Product, Central Electricity Authority

For updated information, please visit www.ibef.org TELANGANA 5

TELANGANA VISION

Source: Telangana Government

Governance

Ensure people centric,

transparent and corruption free

development.

To take steps to eradicate

corruption.

Power

In next three years, Telangana is

expected to be developed as a

power surplus state

Promoting

investments

Plans to announce industrial policy to

encourage investments in state.

Setting up of faster clearances, a

single window system.

Quality of life of

people

To develop Hyderabad as a slum free

city.

Effective implementation of welfare

schemes.

Infrastructure Promoting

research

Aim to make Telangana the Seed

Bowl of India. Telangana is highly

suitable for the growth of seeds.

Endorsing greenhouse technology

and pilot projects.

Hyderabad to have most advanced

infrastructure facilities.

To have two new airports in

Hyderabad, near Shamirpet,

Jawaharnagar and Ghatkesar.

Vision

No negotiation on maintaining

law & order in the state.

Encouraging people friendly

police officials.

Installing CCTV cameras for

better vigilance.

Waiver of agricultural loans up to

Rs 1 lakh.

Technological advancement in

agriculture

Government to encourage research

in agricultural universities.

Agriculture Law & order

For updated information, please visit www.ibef.org TELANGANA 6

TELANGANA FACT FILE

Source: Population Census 2011, Telangana State Statistical Abstract, May 2015

In June 2014, Telangana was introduced as the 29th state of the

India, Hyderabad is the capital of the state.

Telangana is surrounded by Andhra Pradesh from the south and

east end, Maharashtra and Karnataka from the west, and Odisha

and Chhattisgarh from the north end.

Telugu is the generally spoken language in the state. Hindi, Urdu and

English are also usually spoken.

Mahaboobnagar, Ranga Reddy, Hyderabad, Medak, Nizamabad,

Adilabad, Karimnagar, Warangal, Khammam and Nalgonda are the

10 districts of Telangana.

Hyderabad, Secunderabad and Warangal are the key cities in the

state.

Source: Maps of India

Parameters Telangana

Capital Hyderabad

Geographical area (lakh sq. km) 114,840

Administrative districts (No) 10

Population density (persons per sq. km) 312

Total population (million) 35.2

Male population (million) 17.7

Female population (million) 17.5

Sex ratio (females per 1,000 males) 988

Literacy rate (%) 66.5

For updated information, please visit www.ibef.org TELANGANA 7

TELANGANA IN FIGURES … (1/2)

Parameter Telangana All states Source

Economy 2016-17 2016-17

GSDP as a percentage of all states’ GSDP 4.30 100.0 Directorate of Economics & Statistics of Telangana,

Central Statistics Office

GSDP growth rate (%) 13.67 11.52 Directorate of Economics & Statistics of Telangana,

Central Statistics Office

Per capita GSDP (US$) 2736.32 1611 Directorate of Economics & Statistics of Telangana,

Central Statistics Office

Physical Infrastructure

Installed power capacity (MW) 12148.78 330273.65 Central Electricity Authority, as of June 2017

Wireless subscribers (No) 85,386,2481

1,180,824,744 Telecom Regulatory Authority of India, as of May

2017

National highway length (km) 2,635.84 100,087.08 NHAI, Roads and Building Department-

Government of India

Airports (No) 12

125 Airports Authority of India

Note: 1 For undivided State, 2International operational airport

For updated information, please visit www.ibef.org TELANGANA 8

TELANGANA IN FIGURES … (2/2)

Note: 1Including Andhra Pradesh, PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System

Parameter Telangana All states Source

Social Indicators

Literacy rate (%) 66.5 73.0 Census, 2011

Birth rate (per 1,000 population) 17.5 21.6 SRS Bulletin

Investment

FDI equity inflows (US$ billion) 13.761

332.11 Department of Industrial Policy & Promotion, April

2000 to March 2017

Industrial Infrastructure

PPP projects Completed & Operational (No) 13 1,246 DEA , Ministry of Finance, Government of India, July

2016

Operational SEZs (No) 29 200 Notified as of April 2017, Ministry of Commerce &

Industry, Department of Commerce, April 2017

For updated information, please visit www.ibef.org TELANGANA 9

ECONOMIC SNAPSHOT – GSDP

GSDP of Telangana at current prices (in US$ billion)

At current prices, Telangana’s GSDP stood at US$ 101.56

billion in 2016-17.

Between 2011-12 and 2016-17, GSDP of the state grew at a

CAGR of 10.50%.

Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office,

55

.78

62

.32

70

.19

79

.34

89

.35

10

1.5

6

0.0

20.0

40.0

60.0

80.0

100.0

120.0

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 10.50%

GSDP per capita of Telangana at current prices (in US$)

1,8

27

.04

1,7

73

.24

1,7

85

.35

1,9

32

.65

2,3

99

.42

2,5

94

.85

0.00

500.00

1000.00

1500.00

2000.00

2500.00

3000.00

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 9.59%

Telangana’s per capita GSDP^ increased to US$ 2,594.85

during 2016-17 from US$ 1,827.04 in 2011-12.

Average per capita GSDP rose at a CAGR of 9.59% between

2011-12 and 2016-17.

For updated information, please visit www.ibef.org TELANGANA 10

ECONOMIC SNAPSHOT – NSDP

NSDP of Telangana at current prices (in US$ billion) 5

0.4

7

56

.49

63

.46

71

.81

81

.09

92

.19

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 10.56%

At current prices, Telangana’s net state domestic product

(NSDP) was estimated at US$ 92.19 billion in 2016-17.

Between 2011-12 and 2016-17, the average annual NSDP

growth rate was about 10.56%.

Telangana’s per capita NSDP grew from US$ 1,414.32 during

2011-12 to US$ 2,457.97 over 2016-17.

Average per capita NSDP increased at a CAGR of 9.65%

between 2011-12 and 2016-17.

NSDP per capita of Telangana at current prices (in US$)

1,4

14

.32

1,5

67

.34

1,7

43

.49

1,9

53

.09

2,1

83

.59

2,4

57

.97

0

500

1000

1500

2000

2500

3000

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 9.65%

Source: Directorate of Economics & Statistics of Telangana

For updated information, please visit www.ibef.org TELANGANA 11

ECONOMIC SNAPSHOT – PERCENTAGE

DISTRIBUTION OF GSDP

At a CAGR of 16.17 per cent, tertiary has been the fastest growing

sector in the state between 2011-12 and 2016-17.

The primary sector increased at a CAGR of 11.12 per cent between

2011-12 and 2016-17, followed by secondary sector (CAGR of 5.06

per cent).

In 2016-17, the tertiary sector contributed 63 per cent to the state’s

GSDP at current prices. It was followed by the industry sector (19

per cent) and primary sector (18 per cent).

Percentage distribution of GSDP (Current prices)

19.50% 18.00%

27.60%

19.00%

52.80% 63.00%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011-12 2016-17

Primary Sector Secondary Sector Tertiary Sector

11.12%

16.17%

5.06%

CAGR

Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office

For updated information, please visit www.ibef.org TELANGANA 12

ECONOMIC SNAPSHOT – AGRICULTURAL

PRODUCTION

Telangana is primarily a rain fed state & experiences irregular

distribution of rain.

During 2015-16, 5.56 lakh hectare of area was under cultivation of

maize, whereas pulses were cultivated over an area of 4.55 lakh

hectare, in the state.

Thus, after the divergence, the state is expected to grasp a leading

position in the production of pulses & coarse grains.

As per state budget 2016-17, 2 waiver instalments out of 4 have

been deposited into the bank accounts whereas the 3rd instalment

is expected to be unconfined during 2016-17.

The state government has proposed an amount of US$ 1.03 billion

for the departments of Agriculture & Cooperation & Marketing.

Source: Telangana Socio Economic Outlook 2016, Telangana State Budget 2016-17

Crop Annual Area

(‘000 hectare)

Annual Production

(‘000 tones)

2014-15 2015-16 2014-15 2015-16

Rice 1,415 951 4,545 2,979

Cereals &

millets 2205 1591 6955 4685

Pulses 408 455 263 250

Fruits 2613 2046 7218 4935

Cotton 1693 1778 3583 3608

Production of horticulture crops (million MT)

5.2

8 2.84

9.1

4

4.0

7 2.66 7.4

6

0

2

4

6

8

10

Pro

du

ctio

n o

fF

ruits

Pro

du

ctio

n o

fV

ege

table

s

Pro

du

ctio

n o

fP

lan

tatio

n C

rop

s

2014-15 2015-16

Annual area & production of key crops

For updated information, please visit www.ibef.org TELANGANA 13

ECONOMIC SNAPSHOT – INVESTMENTS & EXPORTS

In June, 2015, the Government of Telangana introduced a new

industrial policy to attract domestic as well as international

investments in the industrial sector of the state, with emphasis on

core manufacturing sectors.

Additionally, a legal framework has been provided in the policy to

make the existing industries more competitive, which is expected to

boost the quality of goods manufactured in the state.

Telangana is one of the leading exporters of IT services in India. In

2016-17, the overall IT exports from Telangana were valued at US$

12.71 billion.

According to the Department of Industrial Policy & Promotion (DIPP),

cumulative FDI inflows(2) in Telangana from April 2000 to March

2017, totaled US$ 13.76 billion.

In January 2017, the state government signed MOUs for several

investments and strategic partnerships, worth US$ 503.04 million.

The investment also includes setting up of Life Sciences

Infrastructure Fund in the state.

Investment intentions in terms of IEMs filed, LOIs/DILs issued

in Telangana

176 132 132 134 117 145 139 57

2,2

67

.90

2,0

90

.90

1,8

22

.20

1,3

07

.60

1,0

32

.70

1,5

91

.43

3,2

94

.06

1,5

72

.01

0

500

1000

1500

2000

2500

3000

3500

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

Number of Investment Intentions

Source: Department of Industrial Policy & Promotion, Government of India, Ministry of Commerce & Industry, Government of India

Note: (1) As of April 2017, (2) Including Andhra Pradesh, IEMs – Industrial Entrepreneur Memoranda, LOIs – Letters of Intent, DILs – Direct Industrial Licences

For updated information, please visit www.ibef.org TELANGANA 14

ECONOMIC SNAPSHOT – IRRIGATION....(1/2)

The major sources for water for irrigation purpose in the state are

Godavari and Krishna Rivers & branches. Telangana also uses water

from tanks & ponds for irrigation.

During 2015-16, share of Telangana in the water of Godavari &

Krishna was recorded to be 1,250 thousand million cubic feet.

Further, the state also has a share of 150 thousand million cubic feet

in the surplus water. Moreover, Telangana’s Chief Minister

accomplished an understanding with Maharashtra’s Chief Minister

for fulfilling the projects which are estimated to be developed over

Pranahita, Godavari & Penganga rivers.

In addition to these new projects, the state government is also trying

to finish the major & medium projects, which are under process in the

state.

In Telangana, every year around 9,000 tanks are being taken up for

their restoration & during 2015-16, the restoration of the tanks was

done with the people’s active participation. Moreover, the phase-II of

restoration is expected to be initiated within coming years.

The state government has proposed an amount of US$ 3.82 million

for the construction of the above mentioned projects & for the

fulfilment of Mission Kakatiya during 2016-17.

Source: Irrigation and CAD Department, Government of Telangana

Major irrigation projects Numbers

Completed 13

Ongoing 17

Medium irrigation projects Numbers

Completed 37

Ongoing 9

Irrigation projects status (as of June 2017)

2014-15 2015-16 (Kharif)

Gross Irrigated Area 2,529 1,324

Net Irrigated Area 1,726 1,313

Irrigation Intensity

2014-15 1.47

2015-16 (Kharif) 1.01

Gross Irrigated Area, Net Irrigated Area (‘000 ha)

For updated information, please visit www.ibef.org TELANGANA 15

ECONOMIC SNAPSHOT – IRRIGATION....(2/2)

Schemes and Projects Salient features

Palamuru-Ranga Reddy Lift Irrigation Scheme

To make available drinking water to Hyderabad from Krishna river

Irrigation of 7 lakh acres in Mahabubnagar, 2.7 lakh acres in Ranga Reddy and 0.3 lakh

acres in Nalgonda districts. This can be done by the lifting of 70 thousand million cubic

feet of water from the Krishna River.

Nakkalagandi Project

With an aim to irrigate area of 3.41 lakh acres in Nalgonda and Mahabubnagar districts

as these districts are affected by fluoride and drought conditions.

Major & Minor Irrigation Schemes and Projects being planned by Telangana

Projects Investment

Major irrigation 3,139.11

Medium irrigation 162.22

Minor irrigation (PWD) 276.28

State Irrigation Development Corporation 34.15

Commissioner, CAD-EAP 10.61

Irrigation sector investment – 2017-18 (US$ million)

Projects Investment

Ground Water Department 2.02

Command area development 34.28

Flood control and drainage 15.81

Irrigation sector investment- 2017-18 (US$ million)

Source: Telangana State Portal

For updated information, please visit www.ibef.org TELANGANA 16

BUDGET 2017-18

In 2017-18, the overall budgeted allocation amounted to US$ 23.20

billion for various sectors of Telangana. The allocation of funds was

about 14.59% higher in comparison with the 2016-17 budget.

The State budget for 2017-18 has done away with classification of

expenditure into plan and non plan. Expenditure will now be

classified as revenue and capital expenditure.

Source: Telangana State Portal, Department of Finance

Sector 2017-18

Agriculture and allied services 862.84

Rural development 1,254.29

Irrigation 3,674.75

Roads & Buildings 556.28

Industry and minerals 133.07

General Education 407.17

Transport 597.80

Economic services 35.44

Annual Budget (Estimates in US$ million)

For updated information, please visit www.ibef.org TELANGANA 17

Source: Maps of India

PHYSICAL INFRASTRUCTURE – ROADS

Source: Roads & Buildings Department, Government of Telangana, Budget 2016-17

Telangana is surrounded by Andhra Pradesh from the south and

east end, Maharashtra and Karnataka from the west, and Odisha

and Chhattisgarh from the north end. As of June 2015, state was

home to 16 national highways with total length of 2,690 km. The

overall road length for Telangana state was around 26935 km as of

2015-16.

Of the total road length in the state, 17,076 km of roads are of single

lane, 772 km are of intermediate lane, 7,357 km are of double lane

and the remaining are of 4-lane and above.

In order to fulfil the purpose of laying double lane and four lane

roads from Mandal headquarters to district headquarters and for

linking every headquarter to Hyderabad, the department of R&D

commenced construction of 2,570 km long new roads in a phased

manner during 2015-16.

Moreover, the state government has also undertaken various steps

for renovation and repairing of about 4,000 km roads in the state.

Further, for the upliftment of roads and bridges, the Government of

Telangana has proposed an amount of US$ 509.16 million.

In December 2016, the central government approved five road

projects worth US$ 1.18 billion.

In April 2017, the Ministry of Road Transport and Highways has

approved the project for the development of 14 roads with a total

length of 570 Km for a cost of US$ 537.50 millon.

Road type Road length (km)

National highways 2,690

State highways 3,152

Major district roads 12,079

Other district roads 9,014

Total 26935

For updated information, please visit www.ibef.org TELANGANA 18

PHYSICAL INFRASTRUCTURE – RAILWAYS

Telangana is well-connected to other parts of the country through the

rail network. During 2014-15, the state had a railway network of

1,753 km having 228 railway stations.

As per the state annual plan, the Government is planning to build

rapid rail connectivity in the state. The rapid rail line will connect the

capital of Telangana to the new capital of Andhra Pradesh. For

construction of new railway lines in the state, the government

proposed an investment of US$ 3.10 million in 2017-18.

The metro rail project of the state is expected to be completed by

November 2018, and as per the budget 2016-17, completion of this

metro rail and other strategic plans in the state would help in

minimizing traffic congestion across the state.

Hyderabad Metro Rail project is being implemented through public

private partnership (PPP) mode. Investment of US$ 2.1 billion has

been approved by private partners and as of August 2015, combined

viability gap funding (VGF) worth US$ 0.24 billion was approved by

the central and state governments for the state.

The two stretches of Hyderabad Metro Rail Ltd i.e. Miyapur-SR

Nagar (11 km in corridor-I) and Nagole-Begumpet (16 km in corridor-

III) sections are expected to get completed by the end of 2017.

Source: Telangana State Statistical Yearbook 2015, News articles

Source: Maps of India

For updated information, please visit www.ibef.org TELANGANA 19

PHYSICAL INFRASTRUCTURE – AIRPORTS … (1/2)

Telangana has one operating airport, Rajiv Gandhi International

Airport (RGIA), Shamshabad owned and operated by International

Airport Limited.

Rajiv Gandhi Hyderabad International Airport Limited (RGHIAL) is a

joint venture. The airport is sponsored by GMR Group, Malaysia

Airports Holding Berhad (MAHB), State Government and the Airports

Authority of India with shares of 63%,11%,13% and 13%

respectively.

The airport has two prime access points, one is the National Highway

NH-7 and another one is Outer Ring Road (ORR) (western side) and

Srisailam State Highway (eastern side).

Warangal Airport is a non-operational airport built over an area of

748.02 acres. In order to improve the civil aviation sector, the state

government proposed an investment of US$ 3.09 million in 2017-18.

The Government of Telangana sanctioned an amount of US$ 2.02

million to the Telangana Aviation Corporation.

An amount of US$ 138.52 thousand and US$ 1.65 thousand has

been approved by the Government of Telangana for the development

of Hyderabad airport and regional airport, respectively. For the

development of Warangal airport, the government proposed an

investment of US$ 165.89 thousand during 2015-16.

Source: Telangana State Statistical Yearbook 2015, State Budget 2016-17

For updated information, please visit www.ibef.org TELANGANA 20

PHYSICAL INFRASTRUCTURE – AIRPORTS … (2/2)

Source: Airport Authority of India

80

,01

6

82

,65

8

99

,01

3

90

,15

1

87

,74

1

94

,05

7

1,0

5,7

72

1,3

0,7

13

0

20,000

40,000

60,000

80,000

1,00,000

1,20,000

1,40,000

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

Hyderabad aircraft movement (nos.)

6.5

1

7.6

0

8.4

4

8.3

0

8.6

5

10

.40

12

.38

15

.10

0.002.004.006.008.00

10.0012.0014.0016.00

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

Hyderabad passenger traffic (million)

During 2016-17, Hyderabad airport handled 111,011 tonnes of

freight. In April 2017, the volume of freight handled at the airport

stood at 9,599 tonnes.

For updated information, please visit www.ibef.org TELANGANA 21

PHYSICAL INFRASTRUCTURE – POWER

TSERC is the prime authority for power generation in Telangana.

Telangana Power Generation Corporation Limited (TSGENCO) and

Transmission Corporation of Telangana Limited (TSTRANCO) are

the generation and transmission entities of the state.

As of June 2017, the total installed power capacity of Telangana

state was 12,148.78 MW. Out of this, 6,463.43 MW was contributed

by state utilities, 3,658.50 MW by private utilities and 2,026.85 MW

by central utilities. Thermal power was the largest contributor in the

state’s total installed capacity with 7,750.95 MW, followed by

hydropower with a contribution of 2,380.93 MW, renewable energy

with 1,868.17 MW and nuclear power with 148.73 MW. The

Government of Telangana is planning to increase the installed power

capacity of the state to 23,912 MW by 2019.

The state holds two power distribution companies which are

Southern Power Distribution Company of Telangana State Limited

(TSSPDCL) and Northern Power Distribution Company of Telangana

Limited (TSNPDCL).

Various new power projects have been taken up in the state during

2015-16, which include Pulichintala, Bhadadri Thermal Power

Station, Lower Jurala, Yadadri Thermal Power Station as well as

Kothagudem Thermal Power Station. These projects have a capacity

of 6,160 MW, collectively. Further, in order to set up thermal power

plants of 6,000 MW capacity across the state, the state government

signed a MoU with Bharat Heavy Electricals, Ltd. during 2015-16.

Source: Central Electricity Authority, State Budget 2016-17, State Portal

Per capita power consumption by district (all categories) (KWh)

503

554

749

682

716

929.0

1,209.00

1,307

1,342.00

1,439

0 500 1000 1500 2000

Adilabad

Khammam

Nizamabad

Warangal

Karimnagar

Mahaboobnagar

Ranga Reddy

Hyderabad

Nalgonda

Medak

BHEL (Bharat Heavy Electricals Ltd) started the first unit of 4x30MW

Pulichintala hydroelectric project in Telangana, on December 2,

2016.

In April 2017, ReNew Power, an Indian renewable independent

power producer, commissioned the construction of the largest PV

plant in Telangana with a capacity of 143MW

In May 2017, Bharat Heavy Electricals (BHEL) bagged a project

worth US$ 34.65 million for a steam and power generation package

from Ramagundam Fertilizers and Chemicals Ltd (RFCL).

For updated information, please visit www.ibef.org TELANGANA 22

KEY PUBLIC-PRIVATE PARTNERSHIP (PPP)

PROJECTS…(1/2)

Source: Ministry of Commerce & Industry, Department of Commerce

Project name Sector Type of PPP Project Cost

(US$ million) Stage

Hyderabad Multi-Modal Suburban

Transportation Project - Phase II

Railway track, tunnel,

viaducts, bridges Build-Own-Operate-Transfer (BOOT) 58.7

Under

Construction

Roadways between Hyderabad -

Bangalore Section Roads and bridges Build-Operate-Transfer (BOT) 103.9

Under

Construction

Road Upgradation (Kadtal-Armur NH-

7) Project Roads and bridges

Build-Operate-Transfer (BOT)

Annuity 42.0 Operational

Road Upgradation (Islam Nagar-Kadtal

NH-7) Project Roads and bridges

Build-Operate-Transfer (BOT)

Annuity 79.2 Operational

Road Upgradation (Armur-Adloor

Yellareddy) Project Roads and bridges Build-Operate-Transfer (BOT) 58.3 Operational

Municipal Solid Waste to Energy in

Hyderabad (Hyderabad,

Gadamaguda, R.R.District)

Solid waste

management Build-Own-Operate-Transfer (BOOT) 13.0 Operational

Municipal Solid Waste to Energy in

Hyderabad

Solid waste

management Build-Own-Operate-Transfer (BOOT) 5.2 Operational

Integrated Solid Waste Management

(3800 TPD) for Hyderabad

Solid waste

management

Design-Build-Finance-Operate-

Transfer (DBFOT) 137.0

Under

Construction

Hyderabad-Yadgiri Four-Lane NH-202

Road Project Roads and bridges

Design-Build-Finance-Operate-

Transfer (DBFOT) 68.4 Operational

Hyderabad International Airport Airports Build-Own-Operate-Transfer (BOOT) 378.6 Operational

Note: NA – Not Available

For updated information, please visit www.ibef.org TELANGANA 23

KEY PUBLIC-PRIVATE PARTNERSHIP (PPP)

PROJECTS…(2/2)

Project name Sector Type of PPP Project Cost

(US$ million) Stage

Three Star Hotel at Madhapur,

Hyderabad Tourism Build-Operate-Transfer (BOT) 0.8

Under

Construction

Multiplex & Shopping Mall at

Secunderabad Tourism Build-Operate-Transfer (BOT) 4.1

Under

Construction

HITEC City Cyberabad Hyderabad Common infrastructure

for industrial parks, SEZ Not Available 68.7 Operational

Golf Course At Naya Quilla Hyderabad Tourism Build-Operate-Transfer (BOT) 1.9 Under

Construction

Food Courts Project at Lower

Tankbund Road Hyderabad Tourism Build-Operate-Transfer (BOT) 1.1

Under

Construction

Source: Ministry of Commerce & Industry, Department of Commerce

For updated information, please visit www.ibef.org TELANGANA 24

DEVELOPMENT PROJECTS: SEZs…(1/2)

Source: Ministry of Commerce & Industry, Government of India

For the supervision & execution of SEZs in the state, Telangana

State Industrial Infrastructure Corporation is the concerned authority.

During 2015-16, a SEZ has been developed in Madikonda village of

Warangal district. IT/ITeS, formulation, biotech & aerospace are the

major sectors where SEZs are operating.

In February 2016, Cognizant Technologies Services Pvt Ltd sought

government approval to set up a special economic zone (SEZ) in

Telangana. Cognizant has proposed to set up an IT/ITeS SEZ in

Ranga Reddy district of Telangana, over an area of 2.51 hectares.

As of June 2017, Telangana had 146 SEZs; of which, 29 are

operational, 52 are notified & 64 are formally approved

As of 10th May, 2016, the total utilised area of notified SEZs in

Telangana stood at 1,957.22 hectares.

22

2

1 1

1 1 1

IT/ITES

Biotech

Gems & Jewellery

Aviation Sector

Semiconductors

Aerospace EngineeringIndustries

Pharmaceuticals

Sector-wise operational SEZs in Telangana (2015-16)

For updated information, please visit www.ibef.org TELANGANA 25

DEVELOPMENT PROJECTS: SEZs…(2/2)

Source: Ministry of Commerce & Industry, Government of India

Industry Name of SEZs No of

SEZs

Biotechnology APIIC Ltd

Shantha Biotechnics Pvt. Ltd. 2

Gems & jewellery Hyderabad Gems SEZ Ltd, RR

Dist 1

Aviation M/s GMR Hyderabad Aviation

SEZ Limited, Hyderabad 1

Semiconductors FAB City SPV (India) Pvt Ltd, RR

Dist 1

Aerospace

engineering

M/s. APIIC Ltd., Adibatla, Ibrahim

patnam, R .R. Dist, 1

Pharmaceuticals APIIC Pharma SEZ - Jedcherla 1

Sector-wise Operational SEZs in Telangana Sector-wise Operational SEZs in Telangana

Industry Name of SEZs No of

SEZs

IT/ITeS

DivyaSree NSL Infrastructure Private

Limited, RR Dist.

DLF Commercial Developers Ltd

Gachibowli,

APIIC Ltd – Nanakramguda

Wipro Limited, Gopannapally

Sundew Properties, Madhapur

Stargaze Properties Pvt Ltd, RR Dist,

Serene Properties, Ghatkesar

JT Holdings Pvt Ltd, RR Dist.

Infosys Limited, Pocharam

Tech Mahindra Limited (Satyam Computers),

Madhapur,

Tech Mahindra Limited (Satyam Computers),

Bahadurpally

Indu Techzone Pvt Ltd, Mamidipally

Lanco Hills Technology, Manikonda

Wipro Limited, Manikonda

L&T Phoenix Infoparks, RR Dist

Navayuga Legala Estates Pvt Ltd,

Serilingampally

Tata Consultancy Services Limited , RR Dist.

Hill County SEZ Private Limited , Bachupally

CMC Limited, RR Dist

Mantri Developers Pvt. Ltd.

APIIC Ltd – Madikonda

NSL SEZ(Hyd) Pvt. Ltd. , Secunderabad

22

For updated information, please visit www.ibef.org TELANGANA 26

PHYSICAL INFRASTRUCTURE – TELECOM

According to the Telecom Regulatory Authority of India (TRAI),

undivided Andhra Pradesh had nearly 85.39 million wireless

subscribers and 1.62 million wireline subscribers as of May 2017.

As of March 2016, there were 5,835 post offices in the state.

Airtel launched 4G services in the states with special focus on

Hyderabad. Other players such as BSNL & Aircel are also entering in

the 4G business of the state

In November 2016, Telangana State Road Transport Corporation, in

conjugation with Airtel, announced Wi-Fi services for passengers of

metro luxury buses.

In December 2016, telecom company ‘Idea’ announced investment

of US$ 14.7 million for developing 4G infrastructure in Telangana.

In order to provide broadband services to consumers in the state,

Bharat Sanchar Nigam Ltd. (BSNL) is tying up with local cable

operators. As of May 2017, the company already tied up with

operators in Warangal and Karimnagar.

Source: Telecom Regulatory Authority of India, Ministry of Communications & Information Technology, Telangana Statistical Yearbook – 2015

Wireless subscribers 85,386,248

Wireline subscribers 1,619,198

Tele density (in %) 97.54

No. of GPs in Phase-I 2,097

Pipe laid (kms.) 4,038

Cable laid (kms.) 4,462

GPs for which cable laid 2,038

No. of GPs Lit 106

Telecom Infrastructure (As of February 2017)

Performance status of NOFN project (as of April 2016)

For updated information, please visit www.ibef.org TELANGANA 27

SOCIAL INFRASTRUCTURE – EDUCATION … (1/3)

Telangana’s share in educational institutions includes:

• 3 central universities located in Hyderabad: University of

Hyderabad, English & Foreign Languages University & Maulana

Azad National Urdu University.

• Technological institutes such as IIT, IIIT & NIT.

• Nalsar Law University, Indian School of Business as well as

private institutes such as Symbiosis & TISS are located in the

locality of Hyderabad.

The Telangana Government has announced fee compensations for

students who belong to native & low income backgrounds. During

2015-16, the spend on the fee reimbursement was US$ 125.5

million.

In 2015-16, the 3 newly established universities Sri. P.V. Narasimha

Rao Telangana State Veterinary University, Sri. Konda Laxman

Horticulture University & Prof. Jayashankar Agricultural University

have been allocated with an investment budget of US$ 43.5 million.

As of March 2017, to create awareness & encourage the students,

the state government has decided to give US$2974.86 as incentive

to each of those students who have secured admission in the

National Defence Academy & have successfully completed their

training.

Source: Central Statistics Office, Budget 2016-17, 2017-18, Telangana Finance Department, News Articles

Literacy rate 66.5

Male literacy 74.9

Female literacy 57.9

Literacy rates (%)

Classes Total

Pre Primary 94,892

(I-V) 3,246,785

(VI-VIII) 1,758,189

(IX-X) 1,058,284

(XI-XII) 33,721

Enrolment of students in Schools (2015-16)

As per budget 2017-18, the state government has proposed an

amount of US$ 1.97 billion.

Note: IT- Indian Institute of Technology, IIIT- International Institute of Information Technology, NIT- National Institute of Technology,

For updated information, please visit www.ibef.org TELANGANA 28

SOCIAL INFRASTRUCTURE – EDUCATION … (2/3)

As per budget 2016-17, the state government set up a total of 70

new English medium residential schools in the state, at an estimated

cost of US$ 53.46 million, for minorities, which are expected to be

active by 2016-17.

For medical education, training & research department, the budget

allocation during 2017-18 is US$ 34.26 million.

T-Hub, a start-up incubator launched by the Telangana Government

in March 2017, entered into an agreement with Anthill, a Hyderabad-

based speed scaling platform for early-growth stage start-ups, to

launch an international start-up initiative, the Smart Women Angels

Network (SWAN).

In May 2017, the state government announced its plan to hire 11,428

Vidya volunteers and 8,792 teachers in the academic year of 2017-

18, with an aim to fill the vacant seats for teachers in various schools

and universities across the state.

In June 2017, the National Institute of Tourism & Hospitality

Management (NITHM) signed a Memorandum of Understanding with

the Indian Overseas Bank Gachibowli Branch to facilitate education

loans to the students, without any guarantee or collateral security.

Source: State Budget 2016-17, 2017-18

Elementary education 627.74

Secondary education 593.28

Universal and higher education 240.11

Adult education 3.16

Language development 0.66

Technical education 49.51

Budget Allocation for Education Sector in 2017-18 (US$ million)

For updated information, please visit www.ibef.org TELANGANA 29

SOCIAL INFRASTRUCTURE – EDUCATION … (3/3)

Construction of medical college and hospital at Nizamabad 15.26

Construction of new nursing college at Adilabad 0.11

Construction of new nursing college at Warangal 0.10

Construction of medical college and chest hospital, Hyderabad 0.06

Construction of nursing college and hostel at Gandhi Hospital Premises, Secunderabad 0.33

Construction of nursing college, Hyderabad 1.38

RIMS medical colleges 1.95

Proposed medical colleges in Telangana with investment (US$ million)

Source: Telangana State Statistical Abstract

For updated information, please visit www.ibef.org TELANGANA 30

SOCIAL INFRASTRUCTURE – HEALTH … (1/2)

Out of the country’s pharma production, Telangana accounted for

one-third share; the state government plans to enhance it further by

promoting a pharma city.

Some of the initiatives by the state government to promote the

healthcare sector are as follows:

• To double the budget allocation for the healthcare sector from the

present 2% & increase public health delivery services.

• Supporting private players who are willing to invest in the

healthcare sector.

• The government announced investment of US$ 16.58 billion for

establishment of super speciality hospitals in the state, till 2019.

The upcoming hospitals would be based on the same pattern as

Nizam's Institute of Medical Sciences (NIMS) of Hyderabad.

• In January 2017, Telangana tied up with Cerestra Advisors to set

up country’s 1st Life Sciences Infra Fund, with a corpus of

US$148.74 million.

• The state government in February 2017, launched an initiative

“RICH – Research & Innovation Circle” with an initial investment

US$7.43 million to make research establishments such as CCMB,

IICT, LV Prasad Eye Institute and ICRISAT.

• In June 2017, the state government inaugurated the largest

dedicated medical devices park of the country. Companies such

as Apollo Hospitals, Cyient Ltd. Sandor Medicaids, and 11 other

companies have already been allocated 50 acres in the 250-acre

park in Sultanpurof Sangareddy district.

Source: Department of Health, Medical & Family Welfare & National Health Mission, Government of Telangana, Telangana Budget 2016-17

Primary health centres 675

Sub centres 4,863

Community health centres 114

Area hospitals 42

District hospitals 8

Health infrastructure (as of November, 2015)

Urban Health Services 495.88

Rural Health Services 414.67

Total 910.55

Budget allocation for health & family welfare in 2016-17 – US$

million

For 2016-17, the state government also proposed to establish 40

diagnostics and 40 dialysis centres in the state. Further, the

transmission of Community health centres to Vaidya Vidhana

Parishad of Telangana is also expected to be accomplished during

2016-17.

For updated information, please visit www.ibef.org TELANGANA 31

SOCIAL INFRASTRUCTURE – HEALTH … (2/2)

The state government proposed an endowment of US$ 91.65 million

for purchase or replacement of equipment, US$ 48.27 million for

implementing repair of civil works, purchase of diagnostic

equipment, etc. and US$ 24.37 million for buying drugs, disposals

and surgical, as per budget 2016-17.

Further, an amount of US$ 8.55 million is also projected to be

delivered to Medical and Health Department heads for fulfilling the

growing needs of the healthcare during 2016-17.

In March 2017, Telangana was the best performing state pan India,

since the implementation of Mission Indra Dhanush. The mission

aims at immunizing infants below two years of age and pregnant

women.

Source: Department of Health, Medical & Family Welfare & National Health Mission, Government of Telangana

Distribution of district hospitals, area hospitals & CHCs in

Telangana

40

52

57

67

71

72

72

75

84

85

0 20 40 60 80 100

Nizamabad

Ranga Reddy

Khamman

Medak

Karimnagar

Adilabad

Nalgonda

Warangal

Mehbubnagar

Hyderabad

Primary hospitals in Telangana, by district

Note: CHC: Community Health Centres

For updated information, please visit www.ibef.org TELANGANA 32

INDUSTRIAL INFRASTRUCTURE … (1/2)

The industrial sector accounted for around 22.1% share in overall

GVA of the state during 2016-17. In the state budget 2017-18, the

Government of Telangana proposed an investment of US$ 133.07

million for endorsement of various industries in the state.

The Telangana Government plans to encourage an industrial

corridor. This industrial corridor would be in between Hyderabad &

Warangal. After this industrial corridor, the employment opportunities

are also expected to grow. The Telangana state plans to invest in

power plants in a large way to back up its industrial infrastructure.

With the launch of the Industrial policy in the state, all clearance

certificates are being easily issued to around 1,609 units in the state

involving an investment of US$ 5.06 billion.

These clearances have generated an employment potential of 120

thousand during 2015-16 in the state. Across 100 approvals from

1,609 units are associated with the medium & large industrial units

and have generated the employment potential of around 34 thousand

with an investment of US$ 1.29 billion.

Further, for establishing three Aerospace parks in the state, the state

government has been depicting various proposals out of which the

construction work of NIMZ phase-I is projected to be accomplished

during 2016-17.

CETPs at Jeedimetla and Patancheru and TSDF at Dundigal under

Jeedimetla Zone are established by the Government. TSIIC has

recognised 150 industrial parks in 10 districts having land of about

74,133.18 acres with 13,165 units (enterprises). Under TSIIC, for the

execution and monitoring of Infrastructure projects in the state, the

government sanctioned an investment of US$ 1.65 million.

Source: Telangana State Statistical Year Book, 2015, Economic Survey

Distribution of industrial parks in Telangana

Note: CETP- Common Effluent Treatment Plants, TSDF- Treatment Storage Disposal Facility, TSIIC-Telangana State Industrial Infrastructure Corporation

For updated information, please visit www.ibef.org TELANGANA 33

INDUSTRIAL INFRASTRUCTURE … (2/2)

Industrial park name No of plots No of sheds Vacant area (sq. m) Proposed industries

Jeedimetla 250 0 1,222,765

Automotive based industries,

general engineering, steel re

rolling, R&D of biotech,

pharmaceuticals, vaccines

Karimnagar 2 0 2,136 General

Patancheru 68 15 345,963 Textile, cargo, edible oils

Shamshabad 376 11 2,098,571 Aerospace, solar equipment,

electronic hardware

Warangal 57 1 101,874 IT & ITeS, general

Industrial Parks in Telangana

Year

Margin money

subsidy released – US$

million

Margin money

subsidy utilised – US$

million

Number of

projects assisted

Estimated employment

generated

(no. of persons)

2014-15 3.17 3.13 604 6,604

2015-16(1) 2.64 0.29 44 606

2016-17(2) 3.11 1.41 256 3,189

Prime Minister's Employment Generation Programme (PMEGP) schemes in Telangana

Source: Telangana State Industrial Infrastructure Corporation (TSIIC), Ministry of Micro, Small and Medium Enterprises

Note: (1) As of July, 2015, (2)As of June 2016

For updated information, please visit www.ibef.org TELANGANA 34

AMRUT AND SMART CITIES … (1/2)

As of June 2017, 2 cities of Telangana namely Karimnagar and

Warangal are to be developed as smart cities.

12 cities of the Telangana state have also been selected for

infrastructure development under the scheme Atal Mission for

Rejuvenation and Urban Transformation (Amrut).

The central government has approved a budget of US$ 8.3 billion for

the first phase of the Amrut project.

US$ 1.05 million was allocated to the state of Telangana for

administrative & office expenses (A&OE) in order to prepare the

Service Level Improvement Plan (SLIP)/Capacity Building (CB). In

July, 2015, the Ministry of Urban Development of Government of

India released US$ 0.46 million as advance for the 11 cities under

Atal Mission for Rejuvenation & Urban Transformation (AMRUT)

guidelines.

In March 2017, as an initiative to make the city slum free, the state

government announced its plans to hasten the 2 bedroom permanent

housing projects on 600 acres of land situated on the outskirts & to

complete skyways in municipal areas.

For updated information, please visit www.ibef.org TELANGANA 35

AMRUT AND SMART CITIES … (2/2)

S. No. City/town

1. Khammam

2. GHMC

3. Warangal

4. Nizamabad

5. Karimnagar

6. Ramagundam

7. Mahbubnagar

8. Nalgonda

9. Adilabad

10. Suryapet

11. Miryalaguda

12. Siddipet

Cities/ Towns in Telangana covered under AMRUT

S. No. City/town

Karimnagar 261,185

Greater

Warangal 819,406

Smart cities in Telangana

Karimnagar

Greater Warangal

Source: Aranca Research

For updated information, please visit www.ibef.org TELANGANA 36

KEY INDUSTRIES

The Information Technology (IT) and pharmaceuticals manufacturing

sectors are catalysing the growth of Telangana’s economy.

Hyderabad is a major exporter of IT and ITeS products. Micro, small

and medium enterprises are also strengthening the economic growth

of the state. During 2015-2016, 3,779 MSME units were established

in the state with a cumulative investment of US$ 242.32 million.

The state government is in discussions with Steel Authority of India

(SAIL) for establishing a steel factory comprising a deal of value US$

5 billion on the Khammam-Warangal border. The state government

plans to improve cotton rich Warangal, the second major city after

Hyderabad, in all aspects particularly by establishing textile parks

analogous to those in Tirupur in Tamil Nadu. The state aims to

setting up of industry across Telangana rather than limiting it to any

specific city. Incorporation and implementation of Telangana State

Industrial Project Approval & Self Certification Systems is expected

to increase the investments in the state coming years.

As per state budget 2016-17, the work on construction of the textile

hub & a new pharma city in Warangal is under process. Moreover,

Government of India has also provided the state government with

final approval for establishing a food park across the district of

Khammam in coming years. In addition, the state government has

also proposed to establish 3 Aerospace parks in the state during

2016-17.

Source: Socio Economic Outlook 2015, Government of Telangana, MSME- Micro, Small

and Medium Enterprises

Key industries in Telangana

Information technology

Pharmaceuticals manufacturing

Tourism

Textile

Mines and minerals

Incentives for micro & small enterprises from the Government of

Telangana:

• 100% reimbursement of stamp and transfer duty on the purchase

of land for industrial use

• 100% reimbursement of Stamp duty for lease of land/shed/

buildings and also mortgages and hypothecations

• 25% rebate in land cost limited to US$ 16.58 thousand in

industrial estates/ industrial parks

For updated information, please visit www.ibef.org TELANGANA 37

KEY INDUSTRIES – INFORMATION TECHNOLOGY …

(1/2)

Information technology is one of the fastest growing sectors in

Telangana, contributing around 21% share in the total GSDP of the

state. The central government has declared the realisation of an

Information Technology Investment Region (ITIR) near Hyderabad.

With the establishment of the ITIR, the Government plans to

generate 1.5 million direct and 5.3 million indirect jobs in the IT

sector in the next five years. Telangana was the first state in India to

initiate e- governance projects in India.

The growth in the total exports of IT and ITeS products in Telangana

is higher than India’s IT and ITeS exports by 2.7%. Hyderabad

accounts for a majority of the share in the exports of IT products in

the state. During 2015-16, exports of IT products of Telangana stood

at US$ 10.42 billion.

As of June 2017, out of the 274 approved IT SEZs in India, 22 are

situated in Telangana.

Leading IT companies like Facebook, Google, IBM and Microsoft

hold significant presence in Hyderabad. Continuous growth of these

companies in conjunction with expansion plans is expected to

generate 40,000 direct jobs along with indirect employment of

several thousands.

State government signed an MoU to explore cloud, machine learning

with Microsoft Corporation, India, to improve healthcare and

agriculture sectors in the state of Telangana.

Source: Telangana Telangana socio-economic outlook 2017, IT/ITeS: Information

Technology/Information Technology enabled Services Sector, (1) For 2015-16

Under the Department of Information Technology, Electronics &

Communications, the Government of Telangana has introduced

Telangana IT Policy, 2016 in April 2016 for the uplifting the

performance of the sector in the state.

Datawind is going to set up a manufacturing facility in Hyderabad,

with a investment of US$ 15.27 million. In the first year of inception,

the facility has a target of producing 20 lakh tablets and phones.

The state government has set a target of connecting its 23 million

residents via internet, by 2018.

2016-17

Exports 13.27

IT Units 1,400(1)

IT & ITeS exports from Telangana (US$ billion)

For updated information, please visit www.ibef.org TELANGANA 38

KEY INDUSTRIES – INFORMATION TECHNOLOGY …

(2/2)

Google

Microsoft

Amazon

In 2015, the company announced that it will establish its largest fulfilment centre in Telangana. Amazon

aims to intensify its employee base by more than three fold from the existing 4,000 to 13,500 in phases.

Google’s Hyderabad office played a essential role in the growth of the firm’s main products like Gmail,

Chrome, Calendar and Docs. The engineers at Hyderabad make specially Google products for native

markets and handling structures for agencies in India and other Asia Pacific markets. In 2015, Google

announced plans to establish its largest campus in Hyderabad with an investment of US$ 166 million.

In July 2014, Microsoft declared its strategies to develop processes in Hyderabad. The state

government has guaranteed land and other facilities essential for the development of project.

Microsoft’s CEO Satya Nadella visited Hyderabad in September 2014, and there are probabilities of

discussions with the state government concerning growth of the IT industry in Hyderabad.

Facebook Facebook is a US-based online public networking provision company with set-ups in India.

The agency in Hyderabad was the 1st organisation for the company in Asia. Facebook India has

designed a programme to strengthen Digital India and Skills India initiatives of the Government of India.

The program named Small Business Boost was inaugurated by Telangana’s IT Minister K T Rama Rao

in Hyderabad in August 2015. Facebook’s Small Business Boost initiative will serve as an incredible

resource for the growth of these businesses by offer training on best practices for growing a small

business online. The programme will also aim at encouraging and training the business owners to

access international markets by branding on Facebook platform.

For updated information, please visit www.ibef.org TELANGANA 39

KEY INDUSTRIES – PHARMACEUTICALS … (1/2)

Hyderabad accounts for about 20% share in the total export of

pharma products from India. This is making Hyderabad as a centre

for the drug production.

Telangana backs nearly one-third of complete pharma manufacture

in the country.

The state government declared establishing a Pharma City to

enhance the pharmaceutical business in Telangana.

As of 2014-15, Telangana had about 429 and 185 pharma

companies and bulk drug units, respectively.

Companies like Dr Reddy’s and Aurobindo are continuously

expanding and have already lined up vast investments for the same.

Total R&D by pharmaceutical enterprises has grown by additional

20.6% in 2014-15, indicating the potential in Telangana.

As per the socio-economic survey 2015-16, at a projected cost of

US$ 2.0 billion, the Hyderabad Pharma City is being established,

which will consist of R&D Lab, university, etc. The park is being

developed over 14,000 acres of land at Mucherla and is expected to

create employment opportunities for 70,000 people.

In June 2017, the state government has announced plans to set up

a life sciences infrastructure fund with a corpus of US$ 148.73

million. The funds collected will be used to create a modular plug-

and-play specialised infrastructure for pharmaceuticals,

biotechnology and medical devices industry.

Approved Released

7.94 1.31

Funds for support for drugs & supplies under Mission Flexible

Pool – 2014-15 (US$ million)

Source: Ministry Of Health And Family Welfare, Government of India ,State Portal & News articles, Telangana socio-economic outlook 2017

For updated information, please visit www.ibef.org TELANGANA 40

KEY INDUSTRIES – PHARMACEUTICALS … (2/2)

Dr Reddy’s

Aurobindo Pharma

Divi's Laboratories Divis Laboratories, started in 1990, produces APIs & intermediates.

The company has 500 acres of 13 multi-purpose manufacture units in Hyderabad and a plant in

Seemandhra.

In 2015-16, the company generated revenues of US$ 592.30 million.

Dr Reddy’s initiated its business processes as an Active Pharmaceutical Ingredients (API) producer in

1984 and added formulations procedures in 1987.

The enterprise entered in to international markets in 1991. In 2013-14, the company works with 50

R&D associates through out the world, having three major clusters in the US, Western Europe and

India. In 2016-17, the company generated revenues of US$ 2,185.54 million. From April to June 2017,

the company recorded revenues of US$ 515.31 million

Aurobindo Pharma was established in 1986 and turn into a public listed company in 1995.

The corporation trades its drugs to 125 countries and derives more than 70% of its total returns from

global operations. The company has a group of about 650 scientists who carry out the operations in

research and product development

In 2015-16, the company generated revenues of US$ 2,156.86 million.

Granules India Ltd Granules India is an Indian pharmaceutical company with manufacturing facilities dispersed across

India and China.

The company assists clienteles across 60 countries with four facilities in India, which include

Hyderabad, and a facility in Jingmen, China. In 2013, it acquired Auctus Pharma for expansion of

business.

In 2015-16, the company generated revenues of US$ 218.63 million.

For updated information, please visit www.ibef.org TELANGANA 41

KEY INDUSTRIES – TOURISM … (1/3)

Dynasties such as Sathavahanas, Kakatiyas, Chalukyas,

Qutubshahis, Mughals & Asafjahis have ruled the state of Telangana.

Hyderabad, the capital of Telangana, is highly popular for Charminar,

Golconda Fort, pearls & biryani. The Kakatiya track with Warangal &

Karimnagar are recognised as highly popular tourist places.

Jinnaram near Kawal Tiger Sanctuary & the lake resorts at Kadem

(Adilabad) & Alisagar Lake (Nizamabad) are places which are

extremely popular. Amongst the new tourist spots, the state has

established jungle resorts on the border of Telangana-Maharashtra.

In order to encourage tourism, the state government has planned

listing of a new public limited company, Telangana State Tourism

Development Corporation Ltd. (TSTDC), under the Companies Act

2013.

The Government of Telangana has set up Yadagirigutta

Development Authority (YDA) for maintaining the historic Hindu &

Jain monuments at Yadagirigutta & nearby regions. As per budget

2016-17, for renovation & renewal of historic temples in the state, the

state government proposed an outlay of US$ 7.63 million as a one

time grant during 2016-17.

Moreover, the state government allocated an amount of US$ 35.44

million for the development of tourism & culture department during

2016-17.

Source: News Articles, Telangana State Statistical Year Book, 2015

The state's archaeology department in March 2017, discovered &

unearthed the world's largest capstone weighing of 40 tonnes, after

excavating an ancient human burial site in Narmeata village in

Siddipet district

51.2

51.8

49.7

91.7

54.2

72.5

94.6

71.6

0 20 40 60 80 100

2009

2010

2011

2012

2013

2014

2015

2016

Number of tourist arrivals (millions)

Note: 1- Includes Foreign Tourists Arrivals till November 2015

For updated information, please visit www.ibef.org TELANGANA 42

KEY INDUSTRIES – TOURISM … (2/3)

Key tourist spots

Monuments

• Charminar

• Golconda Fort

• Qutb Shahi Tombs

• Chowmahalla Palace

• Falaknuma Palace

• Bhongir Fort

• Ramoji Film City

Religious Tourism

• Thousand Pillar Temple

• Bhadrachalam Temple

• Nelakondapalli

• Dhulikatta Phanigiri

• Kolanpaka

• Mecca Masjid

Others

• Kuntala waterfall

• Pochera waterfalls

• Nirmal Paintings

32

.1

43

.0

50

.6

50

.5

50

.4

51

.5

49

.4

91

.4

54

.0 72

.3 9

4.5

71

.5

0.0

20.0

40.0

60.0

80.0

100.0

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

Number of domestic tourist arrivals in Telangana (million)

0.4

7

0.5

7 0.7

0

0.7

2

0.7

5

0.2

9

0.2

3

0.2

2 0.15

0.07 0.12 0.14

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

Number of foreign tourist arrivals in Telangana (million)

Source: News Articles, Telangana State Statistical Year Book, 2015

Note: 1- Data till November 2015

For updated information, please visit www.ibef.org TELANGANA 43

KEY INDUSTRIES – TOURISM … (3/3)

Initiatives undertaken by the Government of Telangana:

• Creation of “Telangana Samskruthika Sarathi”, a distinct state level body to create awareness regarding the cultural heritage of Telangana &

provide information about various schemes launched by the Government of Telangana & development of different policies.

• Proposal to build a new mega Cinema City to promote the tourism film industry in Telangana. The proposed project is expected to span over

2,000 acres in the Nalgonda-Ranga Reddy border in Rachakonda.

• Proposal to develop “Kaloji Kala Kendram” at Warangal and “Telangana Kala Bharati” at Hyderabad, to promote cultural activities in the state.

• Allocation of US$ 16.59 million for the development of Yadagirigutta Devasthanam. Further, development of Narasimha Abhyaranyam has

been planned in 400 acres of land. Meditation centres, Veda pathshalas, marriage halls, parks and cottages would be constructed in additional

1,600 acres of land.

• With the skills & efforts of the local people & Masters Athletics Association of Telangana, the 38th National Masters Meet was conducted

successfully at the Gachibowli Stadium, which witnessed participation of 3,700 athletes. With this succession, the Masters Athletics Federation

of India (MAFI), can plan on the next level by selecting the team for India to participate in the Asian championship, which will be held in China

in September 2017.

Source: News Articles, Telangana State Statistical Year Book, 2015

For updated information, please visit www.ibef.org TELANGANA 44

KEY INDUSTRIES – MINES AND MINERALS … (1/2)

Granite, coal, lime stone, bauxite and mica are the major mineral

resources in Telangana.

Adilabad, Karimnagar, Khammam and Warangal are the largest

producers of coal in the state of Telangana.

The state have high volumes of limestone deposits, which gratify

various cement factories in the region.

Karimnagar, Khammam and Adilabad, are the prime districts for

mining in the state of Telangana. These districts accounts for 50%

share in the mining business of the state.

Karimnagar is considered as strong granite reserve districts in

Telangana. Wide range of granites such as Tan Brown, Maple Red

and Coffee Brown granite are available in the district.

Telangana holds 426 quarries for colour granite and six quarries for

black granite.

Khammam is emerging as the new growth engine with around

15,000 acres of land being freed by the state government in the

district.

District Major Minerals

Adilabad Limestone, Coal, Iron ore, Manganese

Karimnagar Lime stone, Coal, Iron ore, laterite & granite

Khammam

Limestone, Coal, Iron ore, quartz & granite,

Steatite,

Dolomite, Barites, Corrundum

Mahbubnagar Amethyst, Feldspar, laterite, Quart

Medak Amethyst, laterite, Granite

Nalgonda Limestone & Limestone Slabs

Nizambad Quartz, laterite, Granite

Ranga Reddy Amethyst, laterite, Granite, Limestone

Warangal Amethyst, Granite, Coal

Source: Indian Mineral Scenario – States, Ministry of Mines, ASSOCHAM India

For updated information, please visit www.ibef.org TELANGANA 45

KEY INDUSTRIES – MINES AND MINERALS…(2/2)

Coal industry is one of the prime segments for Telangana minerals &

mines sector. Telangana coal deposits account for 20% share in

India’s coal deposits. In 2015, a new website for Online Sand Sale

Management & Monitoring System was started & is being developed

by Telangana State Mineral Development Corporation. The purpose

of this website is to identify illegal mining of natural resources &

maintain records of the revenues of the mining sector.

Minerals Production (tonnes)

Barytes 26,077

Coal 33,116,541

Dolomite 403,743

Feldspar 361,887

Garnet 9

Latarite 1,780,239

Lime Stone 13,166,012

Manganese ore 1,400

Quartz 310,960

Shale 51,700

Stowing Sand 1,333,991

White clay 62,240

Production of major minerals, 2015-16(1)

Source: Ministry of Commerce and Industry, Government of India

Minerals Unit Production

(tonnes)

B.Granite Cubic meter 136,992

C. Granite Cubic meter 377,365

Gravel / Earth Cubic meter 17,021,456

Fuller's earth Tonnes 277,025

L. stone slabs Meter Square 1,360,770

Mosaic chips Tonnes 14,890

Road metal Cubic meter 20,786,426

Ordinary sand Cubic meter 1,618,019

Production of minor minerals, 2015-16(1)

Note: 2015-16(1) : till October 2015

For updated information, please visit www.ibef.org TELANGANA 46

KEY INDUSTRIES – APPARELS AND TEXTILES…(1/2)

Handloom Co-operative Societies Number

Cotton 259

Silk Weaver Cooperative Societies (WCSs) 33

Wool ICSs 44

Power loom WCSs 157

Tailor CSSs/ Garments CSs 134

Details of Handloom and Textile Industry (2016-17)

Source: Telangana Economic Survey 2015-16, Telangana government portal, Telangana socio-economic outlook 2017

Cotton is grown in almost all districts of the state except Hyderabad

& Nizamabad. The state had 10 lakh spindles as of 2014-15. Out of

these spindles, about 8 lakh spindles utilise cotton & the rest use

synthetic & viscose fibres. In 2014-15, under Integrated Textile Park

scheme, the state government proposed to set up 2 textile parks in

Warangal & Sircilla cities. These cities are based in Karimnagar

district. Both parks will be established similar to the parks present at

Tirupur in Tamil Nadu. The Government of Telangana sought

authorization from the central government for the conversion of forest

area in Warangal, which is the largest cotton producing district in the

state, into a mega textile park.

As per the budget 2016-17, the work on textile hub in Warangal has

initiated & is under process. As of March 2015, a new textile policy

was introduced in Telangana. Purpose of this policy is to provide

special incentives to the textiles sector. In 2015-16, the state

produced 27 metric tonnes of raw silk, as of August, 2015. In order to

promote the textile sector in the state, the Government of Telangana

is working on a new textile policy to attract investments in the sector.

Proposed textile parks in Telangana Location

Pochampally Handloom Park Limited Kanumukkala,Nalgonda

Avantika Textile Park Medak Telengana

Kakatiya Mega Textile park Warangal

For updated information, please visit www.ibef.org TELANGANA 47

KEY INDUSTRIES – APPARELS AND TEXTILES…(2/2)

Source: Telangana Annual Plan, 2015-16, budget 2017-18

4.2

4.5

4.0

4.1

4.1

4.2

4.2

4.3

4.3

4.4

4.4

4.5

4.5

201

6-1

7

201

7-1

8

Financial assistance to the handloom weavers (in US$ million) As per the state budget 2017-18, financial assistance to the

handloom weavers in Telangana is increased to US$ 4.5 million in

FY18 from US$ 4.2 million in FY17.

For updated information, please visit www.ibef.org TELANGANA 48

KEY APPROVALS REQUIRED

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration, Industrial Entrepreneurs Memorandum,

industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval

Telangana Pollution Control Board No-objection Certificate and consent under Water and

Pollution Control Act

Registration under States Sales Tax Act and Central

and State Excise Act Excise Department

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security & Public Health Engineering Department

Water connection

For updated information, please visit www.ibef.org TELANGANA 49

CONTACT LIST

Agency Description

Telangana State Industrial Infrastructure

Corporation (TSIIC)

6th Floor, Parisrama Bhavan, Fateh Maidan Road,

Basheerbagh, Hyderabad – 500 004, Telangana, India

Ph: +91-40-23237625, 23237626

Fax: +91-40-23240205, 23241385

Website: https://tsiic.telangana.gov.in/

email: [email protected]

Telangana State Power Generation

Corporation (TSGENCO)

Vidyutsoudha, Khairatabad,

Hyderabad-500 082,

Telangana, India

Phone: 040-23499000/39839000

Fax: 040-23499101

email: [email protected]

Telangana Pollution Control Board

Telangana Pollution Control Board

Payavaran Bhawan, A-III, Industrial Estate,

Sanath Nagar, Hyderabad - A.P.

Website: http://tspcb.cgg.gov.in/default.aspx

email: [email protected]

For updated information, please visit www.ibef.org TELANGANA 50

COST OF DOING BUSINESS IN TELANGANA

Parameter Cost estimate

Land price (US$ per sq m) 3.6–254.6

Labour cost (minimum wages per day) US$ 2.9–22.7

Commercial lease rent (US cents per sq ft per month) 5.4–714.3

Electricity (US cents per kWh) Commercial: 9.5–19.4

Industrial: 8.1–11.9

Residential rent (US cents per sq ft per month) 6.7–40.0

Five-star hotel room (US$ per night) 58–330

Water cost (US$) Industrial: 0.8-3 per 1,000 litres

Commercial: 0.7-3 per 1000 litres

Source: Telangana State Electricity Regulatory Commission, Ministry of Labour, Telangana State Portal, Property sites, News articles, Travel sites

For updated information, please visit www.ibef.org TELANGANA 51

STATE ACTS & POLICIES … (1/2)

The Telangana Solar

Power Policy 2015

To promote regionalised and dispersed generation of solar energy.

Effective energy conservation by the stimulation of connected grid and off-grid solar tenders.

Endorsement of all skills related to solar power generation.

Addition of solar parks

To confirm a uniform scholarship for each category of study, as well as vocational training, which is independent of

the fees charged. To guarantee that fees are lower than the subsidy quantities to help students to meet their living

expenses.

Telangana Full Fee

Reimbursement Policy

2015

Objectives

To improve 6 industrial corridors with emphasis on main industrialised sectors, with life sciences, IT and hardware

being the major benefactors.

To certify viable & comprehensive industrial development.

The New Industrial Policy

2014

To build capacity and protect critical information infrastructure.

To establish requisite institutions and legal framework to counter cybercrime.

Cyber Security Policy

2016

Read more

Read more

Read more

Read more

For updated information, please visit www.ibef.org TELANGANA 52

STATE ACTS & POLICIES … (2/2)

Upcoming Policy

Telangana Textile and Apparel Policy (T-TAP)

IOT (Internet of Things) Policy

Telangana ICT Policy

2016

To make Telangana the most favoured destination for the IT companies.

To position the state among the leading global hubs for innovation and technology entrepreneurship in the country.

To entice US$ 3 billion funds for the Electronics sector through 2020.

To develop an employment potential of around 160 thousand by 2020.

Telangana Electronics

Policy 2016`

Objectives

To boost the start-ups present across the social & rural enterprises by the provision of additional incentives to

them.

To endorse the innovative ideas through positive industrial engagement.

Telangana Innovation

Policy

Gaming and Animation

(IMAGE) Policy

To make Hyderabad the most favored destination for investment in Animation, Visual effects, Gaming & Comics

sector

To set up a “Center of Excellence” i.e. Telangana Animation and Gaming - IMAGE City, with state-of-the-art

facilities Read more

Read more

Read more

Read more

For updated information, please visit www.ibef.org TELANGANA 53

ANNEXURE

Source: Reserve Bank of India

Exchange rates (Fiscal Year)

Year INR equivalent of one US$

2004-05 44.81

2005-06 44.14

2006-07 45.14

2007-08 40.27

2008-09 46.14

2009-10 47.42

2010-11 45.62

2011-12 46.88

2012-13 54.31

2013-14 60.28

2014-15 60.28

2015-16 65.46

2016-17 67.09

Q1 2017 64.46

For updated information, please visit www.ibef.org TELANGANA 54

DISCLAIMER

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca 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 Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a

substitute for professional advice.

Aranca 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 Aranca 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.