Andhra Pradesh – Land of Opportunities
Information Technology & Communications Department
GOVERNMENT OF ANDHRA PRADESH
Welcomes
WORLD BANK TEAM FROM AFRICA
17-02-2009
Andhra Pradesh – Land of Opportunities
Advantage Andhra Pradesh
IT Scenario in The state Infrastructure Human resources Leisure and quality of life Most Preferred IT Destination
Andhra Pradesh – Land of Opportunities
IT Initiatives in the last decade
Particulars 1998 2008 Increase
No of IT Co. 194 1584 8 times
Employment 12,000 2,40,000 20 times
Exports ($ mil) 114.8 5224.4 45 times
Built up space(Sft)
200,000 40 million 200 times
Growth of IT in AP in the last Decade (1998-2008)
Andhra Pradesh – Land of Opportunities
Recent history of IT initiatives in the State
1998 – IT industry was allowed certain incentives in respect of power supply.
1999 – 1st ICT Policy was announced 2000(April) – Separate Dept – Department for Information
Technology & Communications created by Govt 2000 (May) – Consultative Committee on IT Industry with
Govt functionaries and representatives of IT Industry for coordination and resolving of issues on IT Promotion
2002 (May) ITES Policy announced and Spl Secy to CM is kept in charge of ITES promotion in the State.
2002(June) 2nd ICT Policy announced 2005(May) 3rd ICT Policy 2005-2010 announced. Till 2006 – Honble Chief Minister was Minister for IT&C
Goal
Andhra Pradesh – Land of OpportunitiesAndhra Pradesh – Land of Opportunities
Political Vision & Commitment
Andhra Pradesh – Land of Opportunities
• Centrally located
• Well connected with road, rail, and air network
• Good port facilities
• Excellent telecommunication network
• AP 5th largest state in India – spread over 8% of India
• AP 5th most populous state – home for 7% of Indian population
• One of the fastest growing economies @ 10.37% GSDP Growth Rate
• Attracts 7 % of FDI Annually
Overview - AP
•Area: 2,75,000 sq.kms•Population: 76 million
Andhra Pradesh – Land of Opportunities
Minister for IT&C
Assisted by Spl. Secretary, Director/ Jt. Directors drawn from Govt. and professionals taken on contract
Officer-oriented Department HODs - APTS, EDS, SAPNET, IEG
IT & C Department ORGANIZATIONAL STRUCTURE
SECRETARYE-Governance, IT Infrastructure & IT Communications
PRINCIPAL SECRETARYIT Policy – planning & formulation, IT Promotion, IT HR
Andhra Pradesh – Land of Opportunities
IT Promotion - STRATEGIES
Attract new ICT Companies Provide Scope & Opportunities for growth for the
existing companies Develop Incubation Centres in Hyderabad and
Tier II Locations for SMEs/first generation entrepreneurs.
Create adequate built up space / infrastructure, through promotion of IT Parks/IT SEZs/ITIRs
Provide quality manpower Focus on SMEs/ Animation, Gaming & Digital
Entertainment sectors.
Andhra Pradesh – Land of Opportunities
AP IT EXPORTS ($ mil)
12 26.8 56.8 114.8211.8 401.4581.4 733.6
1005
1654
2504.2
3716.4
5224.4
0
1000
2000
3000
4000
5000
6000
95-96 96-97 97-98 98-99 99-00 2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
41 %
Andhra Pradesh – Land of Opportunities
50%
26%
24%
IT ServicesITES/BPOEnterprise Appl & Others
AP Exports – Segment wise
Andhra Pradesh – Land of OpportunitiesAndhra Pradesh – Land of Opportunities
Karnataka55000
30%
Maharashtra35374
20% Tamil Nadu28295
16%
NCR2738815%
Others72264%
ANHDRA PRADESH26122
15%
Exports 07-08 –AP/Other States
Andhra Pradesh – Land of Opportunities
Existing Infrastructure – IT Parks
• Cyber Tower550,000 sq. ft. of built-up space
• Cyber Gateway860,000 sq.ft. of built-up space
HITEC City – Developed by L&T
Cyber Pearl• Total planned built-up space
of 500,000 sq.ft• First phase of 250,000 sq. ft.
inaugurated in October, 2004• In partnership with Ascendas,
Singapore
Andhra Pradesh – Land of Opportunities
Existing Infrastructure – IT Parks
RMZ Futura
• Covering 5.24 acres• 350,000 sq. ft. of built-up space• Occupants include Deloitte & Google
Cyber Gateway
• Covering 8 acres of land• 8,66,000 sq. ft. of built-up space• Occupants include GE, ICICI Bank
Andhra Pradesh – Land of Opportunities
Existing Infrastructure – IT Parks
Vanenburg IT Park
• 850,000 sq ft of built up space• Occupants include CA, Motorola and CTS
Mindspace
• 3 million sq. ft. of built-up space on 110 acres• Facilities for leisure and entertainment• Developed by K. Raheja Group
Andhra Pradesh – Land of Opportunities
Deccan Park (TCS)
•TCS initiative covering 11 acres•320,000 sq.ft development center•Employs 3,200 IT professionals
Existing Infrastructure – IT Campus
Andhra Pradesh – Land of Opportunities
Existing Infrastructure – IT Campus
Infosys Development Centre
• Campus spread over 50 acres• 311,000 sq.ft of built-up area• Employs 3,700 software professionals
Andhra Pradesh – Land of Opportunities
Existing Infrastructure – IT Campus
Convergys Campus
• Located in Hi-Tec City, Hyderabad, with 2,00,000 sq. ft. occupied and balance reserved for future growth. Development• Total Space: 400,000 sq. ft.
Andhra Pradesh – Land of Opportunities
Existing Infrastructure – IT Campus
I Labs Building •iLabs has 4-block corporate office and Media Centre• Total Built Up area is 5 lakh sq ft overlooking the secret lake at Hi-Tec City
Andhra Pradesh – Land of Opportunities
Policy - Tier II Cities Mega Project Incentives:
For projects employing above1000 or investment of US $10 million above,Negotiable Package of Incentives & Facilitation.
SME & Tier-II IncentivesAdditional Incentives for Small & Medium Enterprises and ICT companies moving to
Tier-II locations in the State
AP– ICT Policy
Andhra Pradesh – Land of Opportunities
AP–IT Policy -General Incentives
Self-certification and exemption from inspections from various Labour Laws
Exempt from the purview of the AP Pollution Control Act except in respect of power generation sets.
Single window approach for all approvals/clearances IT/ITES units/ companies and non-hazardous hardware
manufacturing industry consisting of IT & Electronics are declared as essential service
Reimbursement of certain portion of expenditure incurred on quality certifications & Patent Filing Costs.
100% reimbursement of Stamp Duty, Transfer Duty and Registration Fee on the lands registered on lease/sale
Conversion to Industrial Power Tariff from Commercial Power Tariff
Exemption from Statutory Power Cuts
Andhra Pradesh – Land of Opportunities
AP–IT Policy -Tier-II Location Incentives
Allotment of Government land at land cost reasonable and comparable rate to other Tier-II IT locations in the country.
Anchor Company Subsidy of Rs.50 lakhs to the first 5 anchor IT/ITES companies employing more than 250 employees in IT or 500 employees in ITES in any Tier-II location. or
Rs.15 lakhs Recruitment Assistance for employing minimum 100 employees in IT & 200 employees in ITES within two years of commencement of commercial operations in the Tier-II city
Andhra Pradesh – Land of Opportunities
AP–IT Policy SME - Incentives
Creation of Incubation Centres to provide ready built up space to start up companies, SMEs at affordable cost.
25% rebate on power tariff for the first three years of the operations
50%Reimbursement of Exhibition Subsidy
Rs. 10 lakhs Recruitment Assistance for employing minimum 100 employees in IT & 200 employees in ITES within one year of commencement of commercial operations in Hyderabad and around upto 50 kms.
Support IT Exporters Associations, HYSEA,NASSCOM, STPI, IEG etc., Creation of Library for making available material on trends in technology, market intelligence, research reports and analysis
Andhra Pradesh – Land of Opportunities
GOI Incentives – Special Economic Zones SEZ – Special Economic Zones are specifically delineated duty free enclave
deemed to be a foreign territory for the purpose of trade operations, dutiesand tariffs.
IT SEZs are created in a minimum area of 25 acres(10 ha) with acommitment of building up a minimum processing area(IT office space) of 1million sft.
The GOI Incentives for IT SEZs are:- Income Tax exemption for 10 yrs in a block of 15 yrs
Import/procure goods without payment of customs / excise duties
Exemption from central sales tax In house customs clearance All customs/central excise clearances on self certification basis. No pre-fixed export obligation. the units have to be positive net foreign
exchange earners only Service tax exemption to SEZ units (exclusive incentive) - 12.2 % Unlimited DTA sale on payment of full Duties
Andhra Pradesh – Land of Opportunities
Out of 295 IT SEZ approved in the Country, 59 ITSEZs are coming up in the State of AP and wouldcreate more than 100 million sft in the next 3years
Already 12 IT SEZs completed 1st phase of about2 million sft and are functioning IT SEZs
15 IT Parks are coming (less than 25 acres) andwould be crating about 2 million sft)
IT office infrastructure in Pipeline
Andhra Pradesh – Land of Opportunities
Andhra Pradesh – Land of Opportunities
Visakhapatnam 2 IT SEZs in 142 acresVijayawada IT Towers/SEZ in 30 acres with APIIC Incubation Centre in 2 acres with STPITirupati: IT SEZ in 80.45 acres IT Incubation Centre with STPI to be ready soon(12,000 sft)Kakinada: Incubation Centre with STPI started on 3-2-07 (14,000 sft) IT SEZ in 25.73aresWarangal: IT SEZ in 35.8 acresKadapa: IT SEZ in 52.76 acres
Tier –II Locations
Andhra Pradesh – Land of Opportunities
INTER STATE COMPARISON ON IT/ITES OPERATIONS SET UP COSTS
Location
Occupancy cost per month
Power Cost (per unit) Salaries Cost(per annum) Per Seat Cost (per month)
IT ITES IT ITES
Mumbai 74.43 5.9 317,950 175,000 7,443 5,955
Pune 41.18 6 342,408 175,000 4,118 3,294NCR 125.34 4.65 313,059 175,000 12,534 10,027
Hyderabad 43 3.71 317,950 175,000 4,300 3,440Bangalore 53.06 4.5 391,323 175,000 5,306 4,245Chennai 38.57 4.75 269,035 165,000 3,857 3,085Kolkata 55.85 3.2 282,051 135,000 5,585 4,468
In occupancy cost, Hyderabad is lowest after Chennai and PuneIn Power Cost, Hyderabad is lowest after KolkataIn Salaries Cost, Hyderabad is lowest after Kolkata and ChennaiIn Per Seat Cost, Hyderabad is lowest after Chennai and Pune
Source:- Cushman & Wakefield
Andhra Pradesh – Land of Opportunities
Hyderabad
Silicon Valley
Every 4th IT professional in Silicon Valley is an Indian
Every 4th Indian IT professional in Silicon Valley is from AP
AP – Talent Pool
Andhra Pradesh – Land of Opportunities
Large pool of English-speaking graduates
173,032 engineers/year
31,398 seats/year
43,045 seats/year
527- Engineering Colleges
436 - MBA Colleges
637-MCA Colleges
428,811 graduates/year1847- U.G. Colleges
AP – Talent Pool
174 - Polytechnic Colleges 40,785seats/year
Andhra Pradesh – Land of Opportunities
MS in IT - programme offered in association with Carnegie Mellon University
MBA program - set up in collaboration with Wharton, Kellogg and London Business School - supported by a distinguished list of renowned global corporates such as McKinsey, Goldman Sachs, Unilever, Bechtel, Aventis, CA, Royal Dutch/Shell, Credit Suisse, Novartis and several others
Graduate Programs in I.T. - Supported by Microsoft, Motorola, IBM, Oracle, Satyam,etc
AP State : Human Talent Base
3 Rural IIITs – Rajiv Gandhi University of Knowledge Technologies at Basara, Nuziveedu & Edupulapaya started from 2008 Academic Year for the benefit of Rural youth.
Indian Institute of Technology & BITS – PILANI 30 affiliated and 5 deemed Universities recognised by UGC in the State.
Jawahar Knowledge Centre – Initiative of Industry/University/Government - imparts industry grade skills to fresh Graduates & place them in IT Industry
Andhra Pradesh – Land of OpportunitiesHyderabad
Dubai
AP - Globally Connected
Andhra Pradesh – Land of Opportunities
Hyderabad - Connectivity
Intercity Transport• Excellent service of buses• Network of smooth, wide and clean roads• Two line, 74 km intercity commuter rail, • Multi-Modal Transport System (MMTS)
Rail and Road• Headquarter of South Central Railwaysof Indian Railways
• Regular luxury bus services connecting major Indian cities
AIR• Connected to USA, UK, Amsterdam, Singapore, Colombo,
Dubai, Sharjah, Bangkok, Kuala Lumpur etc.• Lufthansa operates thrice a week direct to Frankfurt • KLM direct to Amsterdam• Singapore Airlines to Singapore• Hyderabad - Hub for SAHARA airlines
Andhra Pradesh – Land of Opportunities
Mucherla150 Acres
TO NIZAMABAD(RLY.LINE)
OUTER Ring Road (160 KM) NJawharnagar
GENPACT and Proposed DIGITAL CITY
INTERNATIONALAIRPORT
OSMANSAGAR
Hitec city
HIMAYATSAGAR
HUSAINSAGAR
TO MUMBAIN.H 9
TO MUMBAI
TO VIKARABAD
TO BANGALOREN.H.7
TO SIDDIPET
Mamidpalli750 acres
Adibatla115 acres
SW
Infosys
Kokapet
IT Layouts
Pvt IT Parks/SEZs
TO NAGAPUR (N.H 7)
Hyd Metro Area
Andhra Pradesh – Land of Opportunities
Integrated Satellite Townships:About 22 villages in & around Hyderabad and surrounding
districts are being developed as Integrated Satellite Townships
5 areas in Hyderabad, RR, Medak, Nalgonda dists, surrounding Hyderabad are being developed as integrated IT clusters to have “walk to work” and “Plug & Play” kind of working/living environment
Outer Ring Road(ORR)160 km, 8 lane Express Highway with 150 meter width,
covering 84 villages in and around Hyderabad, connecting International Airport with IT Clusters.
Infrastructure In Hyderabad
Andhra Pradesh – Land of Opportunities
New International Airport:New International Airport in 5400 acres functioning
from 22nd March 2008 commissioned at cost of US$500 million(Rs.2000 crores) with 4.26 km runway, longest in South East Asia, 12 aero bridges and 12 million passengers per annum handling capacity.
Mass Rapid Transit System-Metro Rail(MRTS) Project (elevated)
To be implemented in 3 routes in first phase spanning over 66 km in Hyderabad. At an estimated cost of Rs.8760 crores(US $ 2000 million).
Multi Modal Transportation System(MMTS):2 routes (42.16 km length) opened in Feb 04 with a cost
of Rs.198 crores,catering to traffic needs of over 40,000 passengers per day
Infrastructure In Hyderabad
Andhra Pradesh – Land of Opportunities
QUALITY OF LIFE
•Andhra Pradesh a truly multicultural and cosmopolitan state
•Healthcare: a number of super-specialty hospitals and other state of the art facilities,
•Educational Centers having 3 IB accredited Schools
Andhra Pradesh – Land of Opportunities
Microsoft looks at Hyderabad as one of the most important centers internationally.
- Bill Gates, Microsoft
The Andhra Pradesh Government have been and continue to be extremely pro-active in both encouraging and nurturing investment into the State.This ‘can do’ attitude has, in no small, way contributed to the success of HSBC in Hyderabad and Visakhapatnam.
- Malcolm Wagget – COO, HSBC-EDP India
"Andhra Pradesh has become one of the leading global IT centers because of the talent of its business leaders, its workforce, and the strong support of its government leadership.“
- Harris Miller – President IT Association of America
AP – The Most Preferred IT Destination
Andhra Pradesh – Land of Opportunities
“GE will always evaluate Hyderabad for new businesses”Jack WelchFormer CEO General Electric
“Hyderabad is India’s next Silicon Valley”Kenichi Ohmae
Formerly Principal, McKinsey & Co, Tokyo
“ Andhra Pradesh is the Most Business Friendly State in South Asia”
World Bank Report - Doing Business in South Asia 2007
Andhra Pradesh :The Most Preferred IT destination
Andhra Pradesh – Land of Opportunities
Microsoft IBM Oracle Computer Associates Convergys Keane Cordys Motorola Nokia NVIDIA Intergraph Kanbay CSC
Honeywell Infosys TCS Wipro Visualsoft Infotech Intelligroup Sierra Atlantic Polaris Mentor Graphics Qualcomm NCR
Google HSBC HDI FranklinTempleton Bank of America Verizon UBS Analog Devices Cognizant Tech Cadence Connexant Invensys Synopsis Patni Sonata
Andhra Pradesh : The Most Preferred IT destination
Home to leading IT companies
Andhra Pradesh – Land of Opportunities
Thank YouAjay Mishra, IAS
Principal Secretary to the Government
Email:- [email protected]: www.apit.gov.in
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