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ANDHRA PRADESHSeptember 2009
2
Investment climate of a state
Resources/Inputs
Incentives to industryPhysical and social
infrastructure
Regulatory framework
• Skilled and cost-effective labour
• Labour market flexibility
• Labour relations
• Availability of raw materials and natural
resources
• Tax incentives and exemptions
• Investment subsidies and other incentives
• Availability of finance at cost-effective terms
• Incentives for foreign direct investment
(FDI)
• Profitability of the industry
• Procedures for entry and exit of firms
• Industrial regulation, labour regulation,
other government regulations
• Certainty about rules and regulations
• Security, law and order situation
• Condition of physical infrastructure such as
power, water, roads, etc.
• Information infrastructure such as telecom,
IT, etc.
• Social infrastructure such as educational
and medical facilities
Investment climate of a state is determined by a mix of
factors
ANDHRA PRADESH September 2009
3
The focus of this presentation is to discuss…
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Andhra Pradesh
Overall competitiveness of the state
State economy and socio economic profile
ANDHRA PRADESH September 2009
4
Andhra Pradesh September 2009
STATE ECONOMY AND SOCIO ECONOMIC PROFILE
Andhra Pradesh – a snapshot
• Covering an area of 2,75,068 sq km, Andhra Pradesh
(AP) is the fourth-largest state in India by area.
• It has the second-longest coastline—970 kms— in the
country.
• The state is divided into 23 districts.
• It has two major rivers, Godavari and Krishna
• There are seven agro-climatic conditions and a variety
of soils to support the cultivation of wide array of
crops
• Hyderabad is the state capital and Vijayawada,
Visakhapatnam and Warangal are the other key cities in
the state.
INDIA
Andhra Pradesh
Hyderabad
5
STATE ECONOMY AND SOCIO ECONOMIC PROFILE
Demographic profile
Population
• It is the fifth most-populous state in India with a
population of 76.2 million, constituting 7.43 per cent
of the country‘s population.
• According to Census 2001, 27.3 per cent of the total
population of the state was urban, compared to
26.89 per cent in 1999.
Distribution of population by age group,
Andhra Pradesh, 2001
Source: Socio Economic Survey, Andhra Pradesh, 2007
Source: Registrar General of India, Ministry of Home Affairs,
New Delhi
** Age not stated
Andhra Pradesh September 2009
6
STATE ECONOMY AND SOCIO ECONOMIC PROFILE
Demographic profile
Densities of cities in Andhra Pradesh
Source: City Development Plan, Andhra Pradesh
Average for Indian cities
Andhra Pradesh September 2009
• Population density stands at 277 persons per sq
km as against 313 persons per sq km in the
country
• The state‘s sex ratio is 978 females per 1,000
males as against 933 females per 1,000 males
across India Pers
ons
per
Sq K
m
7
STATE ECONOMY AND SOCIO ECONOMIC PROFILE
Economic profile
Gross State Domestic Product, 2001-08 (base year 1999-2000)
• The gross state domestic product (GSDP) for 2007-
08, at constant prices was US$ 42 billion
• During 2007-08, the GSDP at constant price grew
close to 11 per cent (in INR terms).
• During 2003-08, the growth in GSDP at constant
price averaged eight per cent (in INR terms).
• The state is looking at an annual economic growth
rate of 9 per cent during the Eleventh Five Year Plan
(2007-2012)
Source: "Handbook of Statistics on Indian Economy 2008-09, 15 September 2009",
Reserve Bank of India website, www.rbi.org.in, accessed 22 September 2009
(in U
S$ b
n)
Andhra Pradesh September 2009
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STATE ECONOMY AND SOCIO ECONOMIC PROFILE
Economic profile
Per Capita Net State Domestic Product at Factor Cost, 2001-08
(base year 1999-2000)
Average percentage increase in production of food grain
and non food grain crops (from 2003-04 to 2007-08)
• The per capita net state domestic product (NSDP) for 2007-08 at current price was US$ 700
• During 2007-08, the per capita NSDP at current price grew close to 15 per cent (in INR terms)
• Between 2003 and 2008, the growth in the per capita NSDP at current price averaged 11 per cent (in INR terms)
Source: "Handbook of Statistics on Indian Economy 2008-09, 15 September 2009", Reserve Bank of India website, www.rbi.org.in, accessed 22
September 2009
Andhra Pradesh September 2009
(in U
S$)
9
STATE ECONOMY AND SOCIO ECONOMIC PROFILE
Economic profile
• For the year 2007-08, growth rates registered in NSDP are (in INR terms at current price):
• 21 per cent in agriculture and allied activities
• 12 per cent in industry
• 15 per cent in services sector
• In 2007-08, the per capita income of the state at current price was US$ 890.5 as compared to US$ 826.5 for the country
NSDP at factor cost by industry of origin,
2000-2001
NSDP at factor cost by industry of origin,
2007-2008
Source: "Handbook of Statistics on Indian Economy 2008-09, 15 September 2009", Reserve bank of India website, www.rbi.org.in, accessed 22
September 2009
Andhra Pradesh September 2009
10
The focus of this presentation is to discuss…
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Andhra Pradesh
Overall competitiveness of the state
State economy and socio economic profile
ANDHRA PRADESH September 2009
11
INFRASTRUCTURE STATUS
Physical infrastructure
Road Railways Mass Rapid Transit Service(MRTS)
• National highways:
17 national highways
in the state covering
a length of 4,537 km
• State road and
building (R&B)
department roads:
total R&B road
network stood at
1,91,792 km in
2006-07.
• Road density per
thousand sq km was
697.43 as of 2006-07
• South Central Railway covers a network of 4,752
km in the state
• Secunderabad is the headquarters of the South
Central Railways
• The state has a total of 748 railway stations—the
rail network comprises of 3,754 km of broad
gauge and 508 km of metre gauge tracks
• MRTS is expected to carry about 1.6
million passengers per day by 2011 and
2.6 million passengers per day by 2021.
• The total cost for the project has been
calculated at US$ 2.6 billion.
• The state is home to the first PPP Metro
Rail Project to have been sanctioned by
Government of India.
• The Central government has already
sanctioned 20 per cent of the project cost
through the Viability Gap Funding (VGF)
scheme.
• This project is expected to reduces
pollutants by about 3,100 tonnes per
annum
Sources: Commissionerate of Industries, Andhra Pradesh
Ministry of Road Transport & Highways 2008-09 annual report
AP Admin setup, Directorate of Economics and Statistics website, www.apdes.ap.gov.in, accessed 22 September 2009
Project description, Hyderabad metro rail website, www.hyderabadmetrorail.in, accessed 22 September 2009
Andhra Pradesh September 2009
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INFRASTRUCTURE STATUS
Physical infrastructure
Aviation Ports
• International airport at Hyderabad and domestic airports at
Visakhapatnam, Tirupati, Rajahmundry, Warangal, Vijayawada,
Donakonda, Kadapa and Puttaparthy
• The state capital, Hyderabad, is connected to all major international
destinations such as Amsterdam, Bangkok, Chicago, Frankfurt, Dubai,
Singapore, Sharjah, London, Kuala Lumpur, etc., besides all major
domestic destinations across India
• The state has a new international airport at Hyderabad—the Rajiv
Gandhi International Airport—near Shamshabad (about 27 km from
Hyderabad).
• This airport has replaced the former international airport of the city at
Begumpet.
• It has been built by the Hyderabad International Airport Limited (HIAL), a
public-private joint venture between the GMR Group, Malaysia Airports
Holdings Berhad, the state government of Andhra Pradesh and the
Airports Authority of India (AAI).
• The total cost for this project is US$ 560 million and it is built on an area
of 5,449 acres.
• Andhra Pradesh is
considered to be the
second-highest cargo-
handling state in India.
• The state has one major
port at Visakhapatnam,
two intermediate ports
and 11 minor ports
within the state
Andhra Pradesh September 2009
13
INFRASTRUCTURE STATUS
Physical infrastructure-telecom
Telecommunications AP broadband network
• 4,166 telephone exchanges and 5.6 million
telephone connections (excluding mobile phones)
were registered in the state as of March 2009.
• Number of public call offices as of March 2009
were 2,00,291
• The state has approximately 44,000 km of fibre
optic cable network across public and private
sector connections.
• RelianceCommunications has created
infrastructure for providing the required bandwidth
for basic telecom services and other high-end
services by laying a fibre optic cable backbone of
3,000 km throughout the state
• The state government has embarked on a plan to
have a reliable communications backbone which is
capable of gigabit ethernet connectivity across all
government departments and offices, connecting
secretariat to district headquarters, mandals and
villages, bringing the information superhighway to
the doorstep of the common man in rural areas.
• The AP broadband network is under
implementation with private participation. It would
connect the state headquarters with 10 gbps* to
each district headquarter, 1 gbps to each of the
1,128 mandal headquarters and 100 mbps** to
each of the villages. The network is expected to
have fibre optic connectivity right up to the village
level
Sources: Chief General Manager, Telecom, Andhra Pradesh Telecom Regulatory Authority of India 2008-09 annual report
Note: *gigabit per second **megabit per second
Andhra Pradesh September 2009
14
INFRASTRUCTURE STATUS
Physical infrastructure-power
Power
• Installed capacity as of April 2009 was 13,147.25 MW (provisional)
• 31,110.31 million units of energy available from various sources as of March 2009
• As of April 2009, 31,751 housing colonies of the weaker section were electrified.
Andhra Pradesh September 2009
Power generation in AP
Source: Performance highlits, AP Transco website,
www.aptransco.gov.in, accessed 22 September 2009
Performance, AP Genco website, www.apgenco.gov.in, accessed 22
September 2009
Genera
tion in M
U
15
INFRASTRUCTURE STATUS
Physical infrastructure-power
Andhra Pradesh September 2009
Hydel power plants Thermal power plants
• As of April 2009, number of dalit-wadas electrified were 56,178.
• Per capita consumption was 703 Kwh in 2007-08.
• Around 26,85,559 agricultural consumers were registered as of April 2009.
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INFRASTRUCTURE STATUS
Social infrastructure-education
Literacy
• The state had a literacy rate of 60.47 per cent in 2001 as against 44.08 per cent in 1991.
• In 2001, the male literacy figure stood at 70.32 per cent, while female literacy was at 50.43 per cent.
• The state adds more than 1,00,000 engineering graduates, 12,000 management graduates and 3,50,000 English-speaking graduates every year.
• Hyderabad University and Osmania University are the leading universities in the state.
Colleges by courses, 2008-09
Degree colleges
• 5236 UG and PG colleges in 2008-09
Degree colleges
• 241 government colleges
• 179 aided colleges and 1459 unaided colleges
Andhra Pradesh September 2009
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INFRASTRUCTURE STATUS
School education Intermediate education Technical education
• 5+2+3 school education system, i.e., five
years of primary education, two years of
upper primary and three years of secondary
• Of the 97,475 schools as of 2007-08, 62,464
are primary schools, 17,957 are upper
primary, 16,937 are high schools and 99
higher secondary schools.
• A total of 41.6 million students enrolled in
schools in 2007-08.
• The total number of teachers in 2007-08 was
4,39,136.
• Courses available in science, arts and
commerce streams
• Vocational courses are offered in the
fields of agriculture, engineering and
technology, home science, para-
medical, business and commerce,
and humanities
• Total junior colleges in 2007-08 were
4,032 with a total enrolment of 1.4
million students.
• The Technical Education
Department of Andhra Pradesh
has created a sound
institutional framework to
make students competitive in
the global market. The
department supports 540
engineering colleges.
Sources: AP Admin setup, Directorate of Economics and Statistics website,
www.apdes.ap.gov.in, accessed 22 September 2009
List of colleges, AP State Council of Higher Education website, www.apsche.org,
accessed 22 September 2009
Andhra Pradesh September 2009
Social infrastructure-education
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INFRASTRUCTURE STATUS
Social infrastructure-health
Health infrastructure in public sector
• Primary healthcare centers (4-6 beds) as of March 2008: 1570
• Community healthcare centers (30 beds) as of March 2008: 167
• Doctors at primary health care centers as of March 2008: 2214
• Total specialists at community healthcare centers as of March 2008: 235
Leading hospitals in Hyderabad
Apollo Hospital
Yashoda Super Specialty Hospitals
Care Hospital
Wockhardt Kamineni Hospital
Nizams Institute of Medical Sciences
MNJ institute of Oncology and Regional Cancer Centre
Indo-American Cancer Institute and Research Hospital
Global Hospital
Medwin Hospital
Medicity Hospital
L V Prasad Eye Institute
Krishna Institute of Medical Sciences
Health infrastructure in private sector
• Hyderabad has approximately 60 hospitals that classify as authorised centres for providing medical services
• Approximately 3,800 beds in tertiary care hospitals
• 700 beds are expected to be added in the next few years
Source: Bulletin on rural health care statistics in India, Ministry of
Health and Family Welfare website, www.mohfw.nic.in, accessed
22 September 2009
Andhra Pradesh September 2009
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INFRASTRUCTURE STATUS
Virtual infrastructure
E-seva Rajiv Internet Village AP online E-procurement
• Presence of e-governance
initiative, which offers a
wide spectrum of citizen-
friendly services
• One-stop shop for services
of various state and
central government
departments in an
efficient, reliable,
transparent and integrated
manner
• Facilitates online
transaction processing of
payments, issue
certificates, permits,
licenses and many other
services
• Launched by the state
government in August
2004, its objective is
to bring government
services/benefits
closer to people living
in rural areas.
• Further, it aims to
provide computer
literacy to at least
one person in each
family in rural areas
• Provides high
bandwidth
connectivity in rural
areas
• E-governance: gateway for the
state government; offers
multiple services through a
single window to citizens
• Developed and launched by
the government in partnership
with Tata Consultancy Services
• Facilitates online submission
of forms including
registrations, licences,
permits, certificates and
representations to different
government departments.
• Facilitates online payments for
utilities, taxes, fee, deposits
and stamp duties.
• Automates procurement and
purchase procedures—
spanning from demand
aggregation to procurement
and fulfillment—of the state
government. Presently, the
portal is servicing 29
government departments, 39
public sector undertakings,
four universities and 127
urban local bodies.
• Over 61,000 tenders with
work amounting to US$ 26.3
billion has been handled
through the portal.
Source: "Mauritius pact with state government", Eprocurement website, www.eprocurement.gov.in, accessed 22 September 2009
Andhra Pradesh September 2009
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INFRASTRUCTURE STATUS
Industrial infrastructure
Special Economic Zones (SEZ)
Export Promotion Industrial Park (EPIP)
Integrated Infrastructure Development Centres (IIDC)
Critical Infrastructure Balancing Scheme
(CIBS)
• Formal approval
to 103 SEZs
• In-principle
approval to 4 SEZs
• 70 notified SEZs
• To be set up in an
area of 204 acres
• AP Industrial
Infrastructure
Corporation Ltd
(APIIC) is
developing the
park at an
estimated cost of
US$ 35.36 million
• Developed to establish industries in
rural/backward areas and to provide strong
linkages between agriculture and industry
• IIDC, Udumulapur, near Nandyal, Kurnool district
• IIDC, Tada, Nellore district
• IIDC, Keelapattu, Warangal district
• IIDC, Madikonda, Warangal district
• IIDC, Gajularamaram, Ranga Reddy district
• IIDC, Surampally, Vijaywada, Krishna district
• To fund Industrial
associations/service
societies/NGOs for
development of
critical infrastructure
• In 2006-2007, an
amount of US$
0.487 million was
allocated for this
scheme
Andhra Pradesh September 2009
Sources: Commissionerate of Industries, Andhra Pradesh, 2006,
Approved SEZs, SEZ India website, www.sezindia.nic.in, accessed 22 September 2009
Industries, AP Government budget website, http://budget.ap.gov.in, accessed 22 September 2009
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INFRASTRUCTURE STATUS
IT / ITES
Pharma / Biotech
Textile & Apparel
Guntur
VishakapatnamHyderabad
Sircilla
Warangal
Nalagunda
Food Processing
Vizianagaram
Bheemavaram
Chittoor
Vijaywada
Automobiles & Engineering
Rangareddy
MAHARASHTRA
KARNATAKA
TAMIL NADU
MADHYA PRADESH
ANDHRA PRADESH
Industrial Clusters
NN
Hindupur
Nellore
Karnool Ongole
Mineral
Khammam
Kuppam
Kadapa
Large number of upcoming SEZs Industrial clusters in AP
Sources: Commissionerate of Industries, Andhra Pradesh, 2006,
Approved SEZs, SEZ India website, www.sezindia.nic.in, accessed 22 September 2009
Industries, AP Government budget website, http://budget.ap.gov.in, accessed 22 September 2009
Andhra Pradesh September 2009
Industrial infrastructure
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IT infrastructure
Type Number
IT Parks 26
Government IT SEZs 20
Private IT SEZs/campuses 11
Private SEZs by developers 28
IT/ITeS SEZ space
mn sq mt
Proposed built up area 65,32,04
Built up area 4,47,74
Allotted area 1,91,73
IT InfrastructureLarsen and Toubro (L&T) Infocity Limited
• Developed jointly by the AP Industrial Infrastructure
Corporation Ltd (APIIC) and Larsen and Toubro
(L&T)
• Spread across 158 acres at Madhapur with state-of-
the-art infrastructure
• Phase I: Cyber Towers (November 1998) spans six
acres with a built-up space of 5,25,000 sq ft
employing 5,000 people
INFRASTRUCTURE STATUS
Andhra Pradesh September 2009
Industrial infrastructure
23
INFRASTRUCTURE STATUS
STPI units registered
Sources: IT parks, IT SEZs, IT and Communications Department website,
http://apit.ap.gov.in, accessed 22 September 2009
Export Performance of IT/ITES Industry for the year 2008-09- presentation, STPI
website, www.hyd.stpi.in, accessed 22 September 2009
Andhra Pradesh September 2009
Industrial infrastructure
• Phase II: Cyber Gateway (January 2003)
covers 8.65 acres with 7,83,000 sq ft
built-up space employing 7,500 people
• Phase III: Cyber Pearl (October 2004)
covering 5,00,000 sq ft built-up space
and constructed on 6.05 acres
Larsen and Toubro (L&T) Infocity Limited
24
INFRASTRUCTURE STATUS
Life sciences infrastructure
• Genome Valley is India‘s first state-of-the-art life sciences cluster, spanning 600 sq km in Hyderabad
• Provides access to world-class infrastructure to domestic and international companies
• Comprises of dedicated park (ICICI Knowledge Park and Shapoorji Pallonji Biotech Park) developed on a public-private partnership (PPP) model
• Key players in AP leveraging the cluster advantage include Albany Molecular Research Inc., Nektar Therapeutics, Chanelle Pharmaceuticals, Novartis, Paraxel, etc
• Key Indian players include Shantha Biotech, Bharat Biotech, GVK Biosciences, Dr. Reddy‘s, Biological E and Vimta Laboratories, among others.
Andhra Pradesh September 2009
Industrial infrastructure
25
INFRASTRUCTURE STATUS
• ICICI Knowledge Park has been constructed in three phases on 200 acres and currently 22 companies
are located in the park. It houses a specialised, world-class centre for business-driven research, a life
sciences incubation centre, IPR and patent facilitating cell, besides other enabling infrastructure
• Shapoorji Pallonji Biotech Park is spread over 400 acres and was built in three phases. Presently, there are
about 28 companies located in the area developed in the first two phases of development.
Sources: "Tenant companies", ICICIknowledge park website, www.iciciknowledgepark.com, accessed 22 September 2009
"Companies", SP Biotech park website, www.spbp.co.in, accessed 22 September 2009
Andhra Pradesh September 2009
Industrial infrastructure
26
Life sciences infrastructure
INFRASTRUCTURE STATUS
Agri-science park Jawaharlal Nehru Pharma City (JNPC) SEZ Key life sciences research institutes
The state government and ICRISAT (International Crop Research Institute for the Semi-Arid Tropics) have jointly set up an agri-science park at the ICRISAT campus to support the growth of agri-based biotech industry in the state
• JNPC has been designed by JTC - Jurong Corporation,
Singapore, with a saleable area of 1420 Acres, while
the remaining 700 Acres is planned of common
facilities and utilities with green areas and open
spaces in the park. 600 acres has been earmarked for
setting up a sector specific Pharma SEZ.
• The project is being developed at Parwada,
Visakhapatnam, at an estimated cost of US$ 73.17
million through a Public Private Partnership (PPP)
model between the state government and Ramky
Pharma City (India) Ltd
• Salient features include water supply, hazardous
waste management facilities, effluent treatment
plants, power, street lighting, etc
• The Centre for Cellular and Molecular Biology
(CCMB)
• Centre for DNA Fingerprinting and Diagnostics
(CDFD)
• Indian Institute of Chemical Technology (IICT)
• International Crop Research Institute for Arid
and Semi-Arid Tropics (ICRISAT)
• Directorate of Rice Research (DRR) and other
specialised agro-research centres of the Indian
Council of Agricultural Research (ICAR)
• National Academy of Agricultural Research
Management (NAARM)
• National Institute of Nutrition (NIN)
Source: Jawaharlal Nehru Pharma city SEZ details, RAMKY group website, www.ramky.com, accessed 22 September 2009
Andhra Pradesh September 2009
Industrial infrastructure
27
INFRASTRUCTURE STATUS
Apparel and textiles infrastructure: five apparel export parks and seven textile parks
Apparel Export Park,
Gundlapochampally
Textile Park, Sircilla, Karimnagar District Textile Park, Pashamylaram, Medak
District
• The park is spread over 172 acres.
Park occupants such as Chermas,
Pokarna and several other units are
exporting to the US, the UK and other
countries and their clientele includes
stores such as Wal-Mart, JC Penny,
etc.
• 51 entrepreneurs have already
purchased plots and 22 units started
commercial production.
• The park has been developed on 60
acres of land.
• Provides facilities such as training
centres, business resource centres,
textile process units, testing labs, CAD
centres, common effluent treatment
plants.
• Has a 33/11 KV substation with
uninterrupted power supply, assured
water supply and single window
clearance for all approvals.
• 198 plots already sold
• The Centre approved the project
under the Textile Centre
Infrastructure Development Scheme
(TCIDS). So far 50 acres of land have
been developed. Single window
clearance facility has been extended
for all industrial approvals.
Andhra Pradesh September 2009
Industrial infrastructure
28
INFRASTRUCTURE STATUS
Brandix India Apparel City,
Visakhapatnam
Apparel Export Park,
Visakhapatnam
Textile Park, Pamidi,
Anantpur District
Handloom Apparel Park,
Pochampally, Nalgonda
District
The city was set up in an
area of 1,000 acres at a
project cost of US$ 609.75
million by Brandix Lanka
Limited, creating
employment for 60,000
people. The commercial
operations started in January
2007.
The project has been
developed on 146 acres of
land and has accelerated the
growth of the industry.
Proposed to be developed as
a natural garment cluster
which will provide basic
infrastructure facilities and
skilled manpower.
The government has
identified 50 acres on NH-9
near the Pochampally Silk
City and has approved the
project at an outlay of US$
0.81 million.
Source: Apparel Export Parks Textile Parks, Apparel Export Park website, www.ap-
apparelpark.com, accessed 22 September 2009
Andhra Pradesh September 2009
Industrial infrastructure
29
INFRASTRUCTURE STATUS
Sector-specific infrastructure
Existing sector-specific parks (mega business
projects)
Upcoming specialised parks
Location (district) Name of the park
Chittoor Food processing park
Medak Export promotion industrial park
Ranga Reddy Agri-biotech park
Apparel park
Biotech park
Financial district
Gems and jewellery park
Hardware park
Hi-tech city
Location (district) Name of the park
Adibatla, Ranga Reddy IT park
Anantpur Textile park
Guntur Food processing park
Khammam Food processing park
Mahabubnagar Textile park
Manikonda, Ranga Reddy
IT park
Medak Textile park
Nalgonda Handloom textile park
Nanakramguda, Ranga Reddy
IT park
Nellore Food processing park
Andhra Pradesh September 2009
30
INFRASTRUCTURE STATUS
Sector-specific infrastructure
Existing sector-specific parks (mega business
projects)
Location (district) Name of the park
Ranga Reddy
Hitex exhibition centre
ICICI knowledge park
Industrial estate for lady entrepreneurs
International convention centre
Mind Space IT parks
Visakhapatnam
AP SEZ
JN pharma park
Visakhapatnam industrial water supply
project
Visakhapatnam SEZ
Source: Commissionerate of Industries, Andhra Pradesh, 2006
* Petroleum, Chemicals and Petrochemical Investment Regions
Ranga Reddy
Pharma cluster
Business district and trade towers
Rajiv Gandhi nanotech park
Semindia Fab city
Hardware park
Aero park
Auto park
Sircilla, Karimanagar Textile park
Vijayawada, KrishnaAuto component
IT park
Vishakapatnam
Brandix textile city
IT park
Apparel export park
Marine biotech park
Visakapatnam, Vizianagaram, East Godavari
PCPIR*
Location (district) Name of the park
Andhra Pradesh September 2009
Upcoming specialised parks
31
INFRASTRUCTURE STATUS
Urban infrastructure
Water supply Sewerage system and
solid waste
management system
• The average per
capita supply of water
in major cities is 106
lpcd*
• A high coverage of 85
per cent to 90 per
cent in the core city
areas
• Operation and
maintenance costs
being recovered from
water tariffs is high at
85 per cent in
Hyderabad
• Solid waste collection
efficiency is very high
across the cities of
Andhra Pradesh and
varies from 85 per
cent to 100 per cent
on an average for all
the cities
• Area coverage of the
sewerage system in
the major cities varies
from 10 per cent to
45 per cent
* litres per capita per day
Andhra Pradesh September 2009
Per capita water supply across key cities
Source: Commissionerate of Industries, Andhra Pradesh, 2006
Desired LevelCurrent per capita
supply - litres/day
32
INFRASTRUCTURE STATUS
Area covered by sewerage system and sewage treated across key cities (in percentage)
Andhra Pradesh September 2009
Urban infrastructure
Roads and storm water drainage
• Visakhapatnam has a high per capita road length of 1.03
km
• Percentage of pucca roads in the cities varies from 70
per cent to 95 per cent
• Percentage coverage of storm water drains varies from
30 per cent to 50 per cent
33
The focus of this presentation is to discuss…
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Andhra Pradesh
Overall competitiveness of the state
State economy and socio economic profile
ANDHRA PRADESH September 2009
34
STATE POLICIES AND INCENTIVES
Incentives provided by the Industrial Investment Promotion
Policy 2005 –10
Catego
ries
Stamp
duty
Rebate
on land
Power Investment
subsidy
Commercial
tax
Interest
subsidy
Capital
assistance
Others
Small-
scale
industri
es/ tiny
units
100 per
cent
reimburse
ment on
purchase
of land
for
industrial
use,
lease/shed
buildings,
financial
deals and
mortgage
s
25 per
cent
rebate in
industria
l estates/
industria
l
develop
ment
area
limited
to US$
12,195
Reimbur-
sement
@ US$
0.02 per
unit
during
the first
year
1) 15 per
cent on
fixed capital
investment
subject to a
max. of
US$ 36,585
2)
Additional
5 per cent
on fixed
capital
investment
limited to
US$ 12,195
for SC/ST
25 per cent of
the tax paid
during one
financial year
will be
ploughed back
as a grant by
the
government
towards the
payment of tax
during
next year.
Benefit will be
available for 5
years from the
date of
commencemen
t of production
i.e., upto the
6th year
3 per cent
on prime
lending
rate on
term loan
taken by
SSI units
subject to
a max. of
US$
12,195
per year
for five
years
5 per cent
of project
cost to
SSI units
by SC/ST
entrepren
eurs
limited to
US$
12,195
1) 8 per cent subsidy on
capital equipment for
technology upgradation
2) 50 per cent subsidy for
quality certification limited
to US$ 2,439
3) 25 per cent subsidy on
specific cleaner production
measures limited to US$
12,195
4) 50 per cent subsidy on
the expenses incurred for
patent registration limited
to US$ 12,195
Source: Andhra Pradesh – Industrial Investment Promotion Policy 2005-2010,
Project Vikas- NMCC website, http://nmcc-vikas.gov.in, accessed 22 September 2009
Andhra Pradesh September 2009
35
STATE POLICIES AND INCENTIVES
Categories Stamp
duty
Rebate
on landPower
Investment
subsidy
Commercial
tax
Interest
subsidy
Capital
assistanceOthers
Women
entrepren
eurs
100 per
cent
reimburs
ement on
purchase
of land
for
industrial
use,
lease/she
d
buildings,
financial
deals and
mortgage
s
25 per
cent
rebate in
industrial
estates/
industrial
develop
ment
area
limited
to US$
12,195
Reimbur
sement
@ US$
0.02 per
unit
during
the first
year
1) 15 per cent
on fixed
capital
investment
subject to a
maximum of
US$ 36,585
2) Additional
5 per cent on
fixed capital
investment
limited to
US$ 12,195
for SSI units
and SC/ST
Up to 25 per
cent of the
tax paid
during one
financial year
to be
ploughed
back by
government
for payment
of next year
(for five
years)
1) 5 per
cent on
prime
lending
rate on
term
loan
taken by
SSI units
subject
to a
max. of
US$
12,195/y
ear for
five
years
5 per cent
of project
cost to SSI
units
limited to
US$
12,195
1) 8 per cent subsidy
on capital equipment
for technology
upgradation
2) 50 per cent subsidy
for quality
certification limited to
US$ 2,439
3) 25 per cent subsidy
on specific cleaner
production measures
limited to US$ 12,195
4) 50 per cent subsidy
on expenses incurred
for patent registration
limited to US$ 12,195
Andhra Pradesh September 2009
Incentives provided by the Industrial Investment Promotion
Policy 2005 –10
36
STATE POLICIES AND INCENTIVES
Categories Stamp
duty
Rebate
on landPower
Investment
subsidy
Commerci
al tax
Interest
subsidy
Capital
assistanceOthers
Large- and
medium-
scale
industries
100 per
cent
reimbur
sement
on
purchas
e of land
for
industria
l use,
lease/sh
ed
buildings
,
financial
deals
and
mortgag
es
25 per
cent
rebate
in
industria
l
estates/i
ndustrial
develop
ment
area
limited
to US$
12,195
Reimburs
ement @
US$ 0.02
per unit
during the
first year
1) 15 per
cent on
fixed
capital
investment
subject to
a maximum
of US$
0.04 million
2)
Additional
5 per cent
on fixed
capital
investment
limited to
US$
12,195 for
SC/ST
25 per cent
in the of
the tax
paid during
one
financial
year to be
ploughed
back by
governmen
t for
payment of
next year
(for five
years)
1) 50 per cent subsidy for
quality certification limited to
US$ 2,439
2) 25 per cent subsidy on
specific cleaner production
measures limited to US$
12,195
3) 50 per cent subsidy on the
expenses incurred for patent
registration limited to US$
12,195
4) Roads, power and water
to units contributing 50 per
cent of cost of infrastructure
from IIDF with ceiling of US$
243,902
Andhra Pradesh September 2009
Incentives provided by the Industrial Investment Promotion
Policy 2005 –10
37
STATE POLICIES AND INCENTIVES
Categories Stamp dutyRebate
on land
Pow
er
Investmen
t subsidy
Com
merci
al tax
Interest
subsidy
Capital
assistanceOthers
Mega projects
1) Eligible for all incentives for large- and medium-scale industries
2) Tailor-made benefits on a case-to-case basis
- - - - - - -
Existing tiny/SSI/large and medium projects
- - - - - - -
1) 50 per cent subsidy for quality certification limited to US$ 2,4392) 50 per cent subsidy on patent registration limited to US$ 12,195
Existing large industries and mega projects
Special package of fiscal benefits on a case-to-case basis
- - - - - - -
Source: Andhra Pradesh - Industrial Investment Promotion Policy 2005-2010
Project Vikas- NMCC website, http://nmcc-vikas.gov.in, accessed 22 September 2009
Andhra Pradesh September 2009
Incentives provided by the Industrial Investment Promotion
Policy 2005 –10
38
STATE POLICIES AND INCENTIVES
Key incentives
• Power: it is classified under industrial units for the purpose of levying industrial power tariff.
• Rebate on cost of land: IT/ITeS companies establishing their own facilities on clear government land are eligible for a rebate in cost of land calculated at the rate of US$ 487.80 per job created. This rebate in not available on acquired land.
• Stamp duty: 100 per cent reimbursement of stamp duty, transfer duty and registration fee has to be paid by IT and telecommunication companies
• Zoning regulations and special stipulations for IT parks on private land and IT campus: IT/ITeS units will be exempt from the zoning regulations and from the payment of conversion fee.
• Urban land ceiling (ULC) exemption: Private land owners will be allowed exemption under ULC for development of IT parks with a minimum extent of 25 acres in the periphery of city limits and beyond. They will be allowed exemption under the same with a minimum of 5 acres within city limits subject to payment of prescribed fee.
• Training incentive: an incentive of US$ 48.78 per candidate will be provided to training centres which successfully train candidates in communication/soft skills and provide employment in reputed IT/ITeS companies.
• Reimbursement of patent filing and partial reimbursement of quality certification costs
Information technology policy
Andhra Pradesh September 2009
39
STATE POLICIES AND INCENTIVES
Special package for Small and Medium Enterprises (SMEs)
• This package is for IT industry units with a turnover less than US$ 2.43 million and more than US$ 0.24 million per annum.
• Power: 25 per cent rebate on power tariff in the first three years of operations and conversion to industrial power tariff.
• Reimbursement of 50 per cent exhibition subsidy for participating in international exhibitions limited to 9 sq mts, of space, with respect to stall rent payable for participation in international events notified by the IT&C Department.
• Allotment of land: Government will endeavour to reserve land for preferred allotment to SMEs in other locations. Criteria for allotment will be prepared separately.
• IT exporters associations: Government will support associations such as HYSEA, NASSCOM, STPI, IEG or any such organisation (as decided by the committee) in creating libraries for making available materials on trends in technology, market intelligence, research reports and analysis, etc., by contributing US$ 0.024 million per annum for development of the SME sector by making such material available at these libraries.
• US$ 0.024 million as recruitment assistance for employing minimum 100 employees in IT and 200 employees in ITeS within one year of commencement of commercial operations in Hyderabad and around, up to 50 km This incentive will not be available if the incentive Rebate on cost of land is availed.
Andhra Pradesh September 2009
Information technology policy
40
STATE POLICIES AND INCENTIVES
Tier-II locations: Mega projects:
• US$ 0.036 million as recruitment assistance for
employing minimum 100 employees in IT and 200
employees in ITeS within two years of
commencement in the tier-II cities
A special package of incentives will be offered
to mega projects. Such projects will be defined
as projects creating employment for more than
1,000 persons in the case of IT and 1,500
persons in the case of ITeS. An investment
above US$ 12.195 million will be considered as
a mega project.
Source: ICT Policy 2005-2010, Incentives for IT and Industry, IT and
Communications Department website, http://apit.ap.gov.in, accessed 22
September 2009
Andhra Pradesh September 2009
Information technology policy
41
Electronic hardware policy
STATE POLICIES AND INCENTIVES
• Exemption from the purview of statutory power cuts.
• Exemption from inspections; self-certification permitted on labour laws
• Non-hazardous IT and electronic hardware manufacturing industry has been declared as an essential service
• Power: IT and electronic hardware manufacturing industry shall be classified as industrial units for the purpose of levying industrial power tariff
• Stamp duty: 100 per cent reimbursement of stamp duty, transfer duty and registration fee for IT and electronic hardware manufacturing industry in hardware manufacturing cluster parks (HMCP)
• Supporting infrastructure: The Government of Andhra Pradesh will provide infrastructure including power, water, sewerage and roads up to HMCP.
• Improving the quality of existing technical education: The Government of Andhra Pradesh will facilitate linkages between Andhra Pradesh-based engineering colleges and polytechnic colleges with leading academic institutions of international repute and the industry.
• Linkages between universities and companies: Representatives from the IT and electronic hardware manufacturing industry will be included in the Andhra Pradesh State Council of Higher Education and on the boards of AP universities.
Andhra Pradesh September 2009
42
• Patent-filing costs will be reimbursed to a maximum of US$ 4,878.04 on successful attainment of patents.
• US$ 24,000 as recruitment assistance will be paid for employing minimum 100 employees within one year of commencement of commercial operations for SMEs in Hyderabad and around, up to a 50 km radius.
• US$ 3,600 as recruitment assistance will be paid for employing minimum 100 employees in tier-II cities within two years of commencement of commercial operations of the company
• Government will support ELIAP, ELCINA or STPI (as decided by the committee) in the creation of libraries for making available material on trends in technology, market intelligence, research reports and analysis, etc., by contributing US$ 0.024 million per annum by making such material available at these libraries.
• 13. 50 per cent exhibition subsidy will be reimbursed for participating in international exhibitions limited to 9 sq m of space in respect of the stall rent payable as notified from time-to-time.
Electronic hardware policy
STATE POLICIES AND INCENTIVES
Source: ICT Policy 2005-2010, Incentives for IT and Industry, IT and Communications Department website, http://apit.ap.gov.in, accessed 22 September
2009
Andhra Pradesh September 2009
43
Biotechnology policy
STATE POLICIES AND INCENTIVES
• To take a detailed inventory of the bio-resources in the state
• To encourage R&D
• To develop high-quality infrastructure
• To provide special incentives to biotech industry
Objectives
Andhra Pradesh September 2009
44
Biotechnology policy
STATE POLICIES AND INCENTIVES
Strategy
• Encouraging R&D
• Infrastructure development
• Incentives
• Sales tax
• Land for biotech parks/activities
• Exemption from power cuts
• Labor concessions
• Land and grants for training institutes
• Land for housing
• Mega projects
• Human resource development
• Creating an enabling environment
• Funding biotech activities
• Protecting intellectual property rights
Thrust areas
• Diagnostics
• Therapeutics
• Pharmacogenomics
• Bioinformatics
• Agriculture biotechnology
• Industrial biotechnology
• Inputs to the industry (hardware suppliers—instrumentation and chemicals)
• Marine biotechnology
• Forest and environment-focussed biotechnology
• Contract research in all areas of biotechnology and related areas
• To create an enabling environment and simplify procedures
• To facilitate the flow of venture capital funds and address issues such as intellectual property rights
Andhra Pradesh September 2009
45
STATE POLICIES AND INCENTIVES
Tourism Policy 2006
Objectives
• To create a unique selling proposition and a brand image for the state; to ensure correct positioning on the tourism map of India and the world.
• To create and differentiate tourism products across segments such as eco-tourism, pilgrimage, heritage, business, sports, spiritual, health, leisure and rural tourism
• To provide incentives and concessions to tourism projects to be set up in special tourism areas if they assure sustainable employment generation, promote rural tourism, commercially viable projects and so on.
• To develop the tourism sector through PPPs.
• To adopt a single window clearance system
Andhra Pradesh September 2009
46
Incentives and concessions
STATE POLICIES AND INCENTIVES
• Concessional allotment of land on a long lease of 33 years. For mega projects, lease period exceeding 33 years and lease rent shall be 10 per cent of market value and reviewed every five years.
• An investment subsidy of 20 per cent of the project cost limited to US$ 0.048 million.
• An investment subsidy of 15 per cent of the project cost limited to US$ 0.048 million for upgradation of existing hotels.
• 100 per cent reimbursement of stamp duty and transfer fee on purchase of land or lease of land meant for the project.
• Reimbursement of 25 per cent of value-added tax paid for a period of five years.
Tourism Policy 2006
Andhra Pradesh September 2009
47
Incentives and concessions
STATE POLICIES AND INCENTIVES
• Reimbursement of 25 per cent of luxury tax by new hotels for a period of five years.
• Reimbursement of 25 per cent of entertainment tax for multiplexes in theme parks and urban entertainment centres for a period of five years limited to 100 per cent of the project cost for projects more than US$ 1.219 million and located in notified tourism areas or special tourism areas.
• Floor area index relaxation
• Automatic conversion/exemption from land use zoning regulations.
• Market development assistance scheme for promotional activities
Tourism Policy 2006
Andhra Pradesh September 2009
48
Mines and Mineral Policy
STATE POLICIES AND INCENTIVES
• The state has improved the administration through interaction with the district-level officers and stakeholders.
• The policy lays emphasis on pre-fixed time disposal of mineral concession applications to bring additional areas under mining and resource mobilisation.
• Government extends support for grounding of high-tech and innovative value-added mineral projects under single window industrial clearance.
• The aim is to serve as a guiding force to translate the mineral potential into reality with the objective of eco-friendly and sustainable mining
Highlights
Andhra Pradesh September 2009
49
Mines and Mineral Policy
STATE POLICIES AND INCENTIVES
• The government has announced its policy on coal mining to augment coal production and to meet the growing demand from the state‘s power sector.
• The government, through Andhra Pradesh Mineral Development Corporation Ltd, intends to enter oil and natural gas exploration and coal mining in other states.
• The government is contemplating levying cess on semi-precious stone areas, seignorage fee on the basis of weight for granite and has plans to levy royalty on limestone consumed by cement companies on a prorated basis .
Coal policy and other policy initiations
Andhra Pradesh September 2009
50
Other policies
STATE POLICIES AND INCENTIVES
Sources: Andhra Pradesh - Food processing policy, Project Vikas- NMCC website, http://nmcc-vikas.gov.in, accessed 22 September 2009
Food Processing Policy
Incentives and concessions
• Reimbursement of cost of power for all eligible units shall be allowed at US cents 2.4 per unit as against US cents 1.8 per unit for industries eligible under the Industrial Investment Promotion Policy.
• The Fresh Food Policy came into effect from April 1, 2005. The reimbursement of cost of power shall be extended for a period of five years from April 1, 2005. Food processing units that commenced commercial production after November 14, 2003, are eligible for reimbursement of power costs.
Andhra Pradesh September 2009
51
Other policies
STATE POLICIES AND INCENTIVES
Textile and Apparel Promotion Policy 2005-10 , Incentives: Apparel Export Park website, www.ap-apparelpark.com, accessed 22 September 2009
Textile and Apparel Promotion Policy — 2005-10
Objectives
• To generate employment opportunities for an additional 1.5 million persons in this sector by 2010.
• To increase exports to US$ 5-6 billion by 2010.
Cluster approach and development in the textile and apparel sector
• Setting up apparel exports and textile parks in clusters with state-of-the-art technology to attract investors, promote exports and generate employment opportunities.
• Introducing the system of PPP and special incentives to high value, high employment generation projects
• All the incentives provided in the Industrial Investment and Promotion Policy are automatically applicable to textile and apparel units
Andhra Pradesh September 2009
52
The focus of this presentation is to discuss…
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Andhra Pradesh
Overall competitiveness of the state
State economy and socio economic profile
ANDHRA PRADESH September 2009
53
BUSINESS OPPORTUNITIES
Information technology
• Steady growth in exports, recording a 24.5 per cent growth against the national average of 20.65 per cent in 2008-09.
• Total exports are pegged at US$ 5.06 billion in 2008-09 against US$ 5.6 billion in 2007-09.
• Number of IT and ITeS companies registered under Software Technology Park (STP) scheme has grown to 69 including 9 foreign companies.
• The state attracted investments to the tune of US$ 110 million of which investments from foreign companies are between US$ 2-3 million as on July, 2009.
Source: Export Performance of IT/ITES Industry for the year 2008-09-
press note, STPI website, www.hyd.stpi.in, accessed 22 September 2009
Leading IT majors in the state
Andhra Pradesh September 2009
54
BUSINESS OPPORTUNITIES
Information technology
• Total investments under the SEZ scheme are to the tune of US$ 800 million as on July 2009.
• The total employment generated by the IT sector in 2008-09 has grown by 12,768 (STP and SEZ units).
• Total employment generated by IT and ITeS industry in the state has increased from 239,000 in 2007-08 to 251,786 in 2008-09.
Source: Export Performance of IT/ITES Industry for the year 2008-09- press note,
STPI website, www.hyd.stpi.in, accessed 22 September 2009
Andhra Pradesh September 2009
55
Pharmaceuticals and biotechnology
BUSINESS OPPORTUNITIES
• Hyderabad is the hub of the bulk drugs industry, accounting for one-third of the production of bulk drugs nationally.
• State produces a majority of 500 basic drugs produced in the country.
• The market size of the sector in AP in 2008-09 stood at US$ 475 million and accounted for 18 per cent of the total Indian Biotech industry.
• The industry accounts for 43 per cent of the total biotech revenue generated by companies in South India (US$ 1104 million).
• The state was expected to attract US$ 43.25 million worth of new investments in the year 2008.
• The top two companies in AP (Nuziveedu and India Immu) accounted for around 27 per cent of the total Indian biotech revenues for 2007-08.
• The state witnessed an investment of US$ 220 million since 2002.
Key pharma and biotech companies in AP
Source: ―Seventh Industry Survey,‖ ABLE website,
www.ableindia.org, accessed 14 September 2009
Andhra Pradesh September 2009
56
Pharmaceuticals and biotechnology
BUSINESS OPPORTUNITIES
• The state‘s capital will soon be home to two premier institutes—Centre for Stem Cells Research and National Animal Resource Facility for Biomedical Research
• The first phase of the project entails an investment of US$ 60.9 million
• The state will also have a biotechnology incubation centre, a first of its kind in India
• As a joint initiative of the Government of Andhra Pradesh and the Government of India, the Centre has come up with an investment of US$ 7 million.
• NCS Group is coming up with Botanical Gardens project by March 2009. The project is coming up in the forest reserve land at Kondapur and is being executed in PPP with the Andhra Pradesh Forest Development Corporation.
• In Phase I, the garden would be developed in 18 sectors spread over 120 acres. It would have about 5,000 species of plants, including several varieties sourced from botanical gardens across the world.
• Of the proposed cost, the promoters' contribution would be 40 per cent from internal accruals.
Source: "Economy and Industry monitor: Andhra Pradesh - February 2009", Cygnus, 22 September 2009, via ISI Emerging Markets
Andhra Pradesh September 2009
57
Apparel and textiles
BUSINESS OPPORTUNITIES
• The state is a leading producer of cotton, with an annual average production base of about 227 million bales in 2008-09 — an increase of 8.6 per cent over 2007-08.
• Medium grade and superior long staple varieties of cotton are predominant in the state
• There are over 80 spinning mills including a number of 100 per cent export-oriented units with state-of-the-art machinery, producing cotton, synthetic and blended yarns. There are 1,079 weaving units with a production capacity of 789 million metres of fabric per annum.
• The state has, moreover, emerged as a large textile processing centre. Over 100 units are set up in the state with a processing capacity of 13 million metres of cloth per annum.
• The number of power looms in the state aggregates to around 44,000 employing approximately 1,10,000 workers
• Apparels, fabrics and furnishings have been identified as growth potential products by the state. It aims to achieve US$ 6 billion in total textile exports, and US$ 2 billion in handloom exports per annum by 2010.
• The state aims to increase its domestic contributions for apparels and textile products to US$ 4.87 billion. The domestic sales of the state are expected to be around US$ 3 billion per annum by 2010.
• The state aims to generate an additional employment to 1.5 million people in this sector by 2010.
Source: Economy and Industry monitor: Andhra Pradesh - August 2009, Cygnus, 22 September 2009, via ISI Emerging Markets
Andhra Pradesh September 2009
58
BUSINESS OPPORTUNITIES
• The agricultural sector in the state witnessed a growth of 7.5 per cent over the last five years and the total crop area increased to 12.2 million hectares by 2008-09.
• A variety of agro-climatic conditions in the state make it conducive for growing a variety of horticulture crops such as fruits, vegetables, spices, tuber crops, plantation crops and floriculture.
• The state is the largest producer of rice in India. It is a leading producer of cash crops such as tobacco, groundnut, dry chilly, turmeric, oilseeds, cotton, sugar and jute.
• It is the second-largest producer of horticulture products in India; production is expected to reach 22.90 million tonnes by 2020.
• The state produces some of the finest varieties of mangoes, grapes, guavas, papayas and bananas.
• It is the number one producer of sweet lime, lime, papaya, chilly, turmeric and palm oil.
• It is the second largest producer of tomato and coriander, third for pomegranate, fourth for tapioca, lady finger and grapes, and fifth for onions.
• To achieve the growth envisaged for the agricultural sector, the state aims to attract investments of around US$ 17.07 billion by 2010, with the total investment until 2020 targetted at around US$ 39.02 billion.
Food and agro-processing sector
Andhra Pradesh September 2009
59
Food and agro-processing sector
BUSINESS OPPORTUNITIES
Case Study: Case Study:
ConAgra Foods, US: One of the world‘s leading food
companies, it has partnered with ITC Agro and
established an R&D centre to adapt food technologies
to Indian conditions. Agro Tech Foods is now a US$
320 million company with a dominant market position
in the edible oils and branded foods sectors. Edible oil
brands include Sundrop, Healthy World, ACT II and
Rath.
Multinational branded food and beverages
company, Kraft Foods, established a soft drink
manufacturing plant in Andhra Pradesh in 2001
and is currently working on a new agronomy
project.
Sources: 8 Steps to India, IBEF
Agriculture action plan 2009-2010, Department of Agriculture website, http://agri.ap.nic.in, accessed 22 September 2009
Andhra Pradesh September 2009
60
BUSINESS OPPORTUNITIES
Forestry Fisheries
• According to data for
2007-08, the state has
6.21 million hectares
of forest area which
accounts for 22.6 per
cent of the total
geographical area of
the state.
• The contribution of
forestry to the GDP
of the state in 2006-
07 was estimated at
US$ 412 million, a
seven per cent
increase over 2005-
06 (in dollar terms).
• Ranks first among Indian states in brackish water shrimp production and fresh water prawn
production. It stands second in fresh water fish production and, in addition, is fifth in marine fish
production.
• The overall fish production in the state is estimated to touch 1.4 million tonnes during 2008-09
as against 1.3 million tonnes in West Bengal making AP highest producer of fish in the country.
• In addition to fresh water fish, the state will be harvesting 260,000 tonnes of marine fish and
40,000 tonnes of brackish water shrimp. Andhra is already the top producer of brackish water
shrimps in the country.
• The contribution of fisheries to GDP in 2006-07 was estimated to be US$ 1600 million, a six per
cent increase over 2005-06 (in dollar terms).
• The AP government has entered into an agreement with the US-based World Tuna Development
International (WTDI) to develop tuna fishery in the Bay of Bengal.
• The state government will invest US$ 2 million towards 51 per cent of the equity in the
proposed joint venture company named as Andhra Pradesh Marine Fisheries Development Ltd
(APMFD) while WTDI will invests the remainder—US$ 1.99 million towards 49 per cent. The
remaining US$ 11.5 million will be taken as term loans from banks.
Sources: Commodities Bureau Agriculture action plan 2009-2010, Department of Agriculture website, http://agri.ap.nic.in ,accessed 22 September 2009
Andhra Pradesh economy in brief 2008, APDES website, www.apdes.ap.gov.in, acessed 22 September 2009 News publications
Agriculture and allied industry
Andhra Pradesh September 2009
61
Agriculture and allied industry
BUSINESS OPPORTUNITIES
Animal husbandry
• The sector is rapidly expanding and is playing a significant role in improving the rural economy.
• Providing gainful employment to a large number of small/marginal farmers and agricultural labourers to
enhance their economic status
• Activities of the Animal Husbandry Department have been oriented towards health of livestock and
increased production of milk, eggs and meat.
Andhra Pradesh September 2009
62
Petroleum, chemicals and petrochemicals
BUSINESS OPPORTUNITIES
• According to provisional figures for 2007-08, net natural gas production stood at about 1555 million cubic meters.
• The Krishna Godavari basin area has a total hydrocarbon resource base of 1,130 million metric tonnes.
• Andhra Pradesh is set to become the second Indian state after Gujarat to enter the oil and gas exploration and production segment through bids for oil and gas blocks under NELP.
• The Andhra Pradesh government decided to enter the oil and gas exploration and development sector and set up a special purpose vehicle (SPV), Andhra Pradesh Gas Infrastructure Corp Ltd as a joint venture between two state-owned entities.
• The infrastructure provider for industries in the state, AP Industrial Infrastructure Corp. Ltd, or APIIC, would hold 51 per cent in the SPV and AP Genco, would hold the balance.
• Petroleum companies are in the process of setting up a gas grid across Andhra Pradesh.
• ONGC is setting up a 7.5 million tonnes refinery in the Kakinada SEZ with a capital outlay of US$ 1.82 billion.
• HPCL Visakhapatnam plant has expanded its refined crude throughput from the existing 7.50 million tonnes in 2003-04 to 9.4 million tonnes in 2007-08
Andhra Pradesh September 2009
63
Petroleum, chemical and petrochemicals
BUSINESS OPPORTUNITIES
Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRs)
The state is setting up PCPIRs which would be specially delineated investment regions with an area of
around 250 sq km for manufacturing facilities, associated services and infrastructure for domestic and
export-led production in petroleum, chemical and petrochemicals. The government plans to locate a
PCPIR near Visakhapatnam in an area of 250 sq km
Sources: Petroleum statistics, Ministry of Petroleum and Natural Gas website, http://petroleum.nic.in, accessed 22 September 2009
Directorate General of Hydrocarbons 2007-08 annual report
News articles
Andhra Pradesh September 2009
64
Tourism
BUSINESS OPPORTUNITIES
• AP is known for its pristine beaches, sacred places of worship, lush green forests, spicy cuisine and hospitable people
• With tourist attractions such as Charminar, Golconda Fort, and Ramoji Film City, Araku Valley, Borra Caves, Tirupati Balaji Temple, and Puttaparthi Saibaba, the state offers attractive investment opportunities to developers and investors
• The state ranks first in domestic tourist arrivals.
• The state ranks seventh in international tourist arrivals and accounted for 5.6 per cent of the total international tourist arrivals in India in 2008.
• 88 projects worth US$ 197.56 million have been commissioned by the private sector.
• During the last four years, the state government has facilitated 68 projects with a total investment of US$ 368.29 million.
• Nine projects have been sanctioned for the State by the Ministry of Tourism during 2008-2009, at a project outlay of US$ 21 million.
• Andhra Pradesh Tourism Development Corporation (APTDC) has developed tourist infrastructure and special packages to facilitate the overall development of the tourism sector in the state.
Andhra Pradesh September 2009
65
Tourism
BUSINESS OPPORTUNITIES
• The state government has identified Hyderabad, Visakhapatnam, Tirupati, Vijayawada, Nagarjunasagar and Warangal for tourism development
• Upcoming mega projects
•Tirupati heritage circuit
•Kadapa heritage circuit
•Charminar area
Sources: Directorate of Tourism and Directorate of Economics and
Statistics, AP
Tourism statistics at a glance 2008, Ministry of Tourism website,
www.tourism.gov.in, accessed 22 September 2009
Projects sanctioned, Ministry of Tourism website,
www.tourism.gov.in, accessed 22 September 2009
Andhra Pradesh September 2009
66
Leather industry
BUSINESS OPPORTUNITIES
• The state is a major producer of hides and skins, producing about 19 million pieces per annum, constituting around 10 per cent of the country‘s output.
• 34 large and medium tanneries in the state produce about 40 million sq ft of processed hides and skins per annum.
• The state has15 leather goods and footwear manufacturing units in the large- and medium-scale sector.
• The government provides financial assistance in the form of investment grants to the extent of 30 per cent of cost of plant and machinery for SSI and 20 per cent of cost of plant and machinery for other units, subject to a ceiling of US$ 0.12 million for technology upgradation or/and expansion.
Andhra Pradesh September 2009
67
Leather industry
BUSINESS OPPORTUNITIES
Leather industrial parks
• Leather Industries Development Corporation of Andhra Pradesh (LIDCAP) is the nodal agency for leading the leather industry programme in the state.
• Plans to establish 71 mini industrial parks on 25 acres for processing raw material.
• Plans to establish 16 medium industrial parks of 100 acres each for processing semi-finished leather to finished leather.
• Plans to establish six mega industrial parks of more than 300 acres each including an International leather complex at Krishnapatnam (KILC) to convert all intermediate products to export quality products.
• KILC is a world class infrastructure for leather tanning and leather processing. The project finance is supported by the Government of India, Government of Andhra Pradesh and private participation in the SPV.
• KILC is located in Krishnapatnam in Nellore district of Andhra Pradesh in South India, in an area of 412 acres near the sea coast.
• It is proposed that KILC will house about 25 tanning units in a floor area of 250 acres of land and about 21 leather processing units with capacities ranging between 6 to 25 tonnes and a total capacity of 300 tonnes in a floor area of 220 acres, .
Source: Leather sector in AP, ILC profile, LIDCAP website, www.lidcap.org, accessed 22 September 2009
Andhra Pradesh September 2009
68
Other sectors identified for growth
BUSINESS OPPORTUNITIES
Hospitality and entertainment Leisure and
entertainment
Key upcoming projects
• Being a major tourist hub in
the country, the state is
making rapid strides in the
retail and entertainment
segment.
• To attract new investments in
the sector, the government
offers various incentives
including an investment
subsidy of 20 per cent of the
project cost, subject to a
maximum of US$ 0.05 million.
• To encourage upgradation to
international standards,
selected hotels will be offered
an incentive of 15 per cent of
the project cost.
• The sector is
witnessing heightened
interest in projects
such as world class
spas, entertainment
centres, mega
shopping malls,
multiplexes, business
convention centres
and theme parks.
• Urban entertainment,
including amusement
parks, has redefined
leisure and
entertainment
activities in the city.
• A five-star hotel with more than 250 rooms and 100 service
apartments is coming up near Hi-tec City, the IT hub, at an
estimated cost of US$ 121.95 million.
• Choice Hotels International is entering Andhra Pradesh with
hotels in Hyderabad, Tirupati and Visakhapatnam. The company
has partnered with Vishank Hotels International to develop a 4-
star, 130-room hotel as well as a service apartment complex in
Gachibowli, Hyderabad under the ‗Clarion‘ brand name. Choice
Hotels plans to launch budget hotels in Tirupati and
Visakhapatnam under the 'Sleep Inn' brand.
• Panoramic Universal Limited plans to open a 4-star hotel with 90
rooms at an investment of US$ 9.75 million in Hyderabad.
• India will soon have its first green hotel, The Park Hotel, in
Hyderabad. A 280-room hotel, it is scheduled to begin
operations by fall 2009. It will be built with an investment of
more than US$ 87.5 billion, which is 15 per cent higher than the
investment for a non-green hotel.
Andhra Pradesh September 2009
69
Other sectors identified for growth
BUSINESS OPPORTUNITIES
Retail Electronic hardware Semiconductors
• Organised retail is catching up fast with significant
mall development in the pipeline with 20 existing
and 24 upcoming malls in Hyderabad alone.
• Reliance Retail opened its first 'Reliance Fresh'
stores in Hyderabad and Secunderabad in late
2006. The company has plans to open
hypermarkets in Visakhapatnam, Vijayawada and
Guntur.
• Reebok has opened its largest store in the world
in Hyderabad.
• GVK group opened ‗GVK one‘ a world class
shopping space measuring 6,25,000 sq ft in May
2009.
• ‗GVK one‘ also hosts a 1,200-seat INOX multiplex
along with a themed entertainment centre
‗Funzone‘.
• Key segments within the electronic
hardware industries in the state:
• Telecommunications
• Industrial electronics
• Test and measuring equipment
• Computer and consumer
electronic
• Strategic electronics
• There is immense scope for
investments in the fields of
nanotechnology, semiconductors,
computer peripherals, appliances,
precision engineering, integrated
circuits, large scale integration chips
(LSICs) and very large scale
integration chips (VLSICs).
• An investment of US$ 3
billion has been announced
for setting up of a
fabrication unit in Fab City,
Hyderabad.
• Fab City has been allotted
1,200 acres close to the
new international airport.
• It offers various incentives
such as exemptions,
reimbursements, facilitating
technical education, etc.,
for the sector under the
electronic hardware policy
of the state.
Sources: News publications; "Urban infrastructure", GVK group website, www.gvk.com, accessed 22 September 2009
Andhra Pradesh September 2009
70
Other sectors identified for growth
BUSINESS OPPORTUNITIES
Gems and jewellery
• Hyderabad is one of the leading hubs for jewellery in India
• The state produces a wide array of gems ranging from precious gems and pearls among others.
Andhra Pradesh September 2009
• Developed on an area of 2.5 acres in Hyderabad with an investment of around US$ 12.68-US$ 13.90 million.
• The park is a JV between the Phoenix Group, IOI Corporation and AP State Trading Corporation.
• It has been developed as a state-of-the-art facility in which the floor space will be sold to jewellersand pearl dealers.
The AP Gems and Jewellery Park
71
Other sectors identified for growth
Hyderabad Gems Special Economic Zone Ltd
(HGSEZ)
• Situated at Hardware Park near the upcoming international airport.
• SEZ to be set up at a cost of about US$ 121.95 million. The 200-acre park will house more than 75 diamond, gold and watch manufacturing units and will generate 50,000 new jobs. An international trade centre, a world class convention centre, plus an exhibition area will also be a part of the SEZ.
• It is the first jewellery park to have an integrated manufacturing and trading facility.
Contribution to national mineral production (in per cent)
Barytes 94
Ball clay 63
Corundum 61
Diamond 40
Calcite 39
Mica 28
Garnet 26
Limestome 23
Sources: Socio Economic Survey, Andhra Pradesh, 2007
News publications
Indian mineral scenario - states, Ministry of Mines website,
www.mines.nic.in, accessed 22 September 2009
BUSINESS OPPORTUNITIES
Andhra Pradesh September 2009
72
Other sectors identified for growth
BUSINESS OPPORTUNITIES
Andhra Pradesh September 2009
Mines and minerals
• Andhra Pradesh is estimated to account for approximately nine per cent to total mineral production in 2008-09.
• States mineral production was valued at US$ 2.4 billion in 2007-08, a 14 per cent increase over 2006-07.
• Production in iron ore increased by 73 per cent, while that of manganese ore by 120 per cent and petroleum (crude) by 11 per cent in 2008-09.
• Production of silica sand increased by 136 per cent, ochre by 86 per cent, quartzite by 67 per cent, dolomite by 19 per cent, limestone by nine per cent and coal eight per cent in 2008-2009.
73
BUSINESS OPPORTUNITIES
Upcoming projects
Sector Promoter - ProjectInvestment
(in US$ mn)Location
Education MOCI- Agri bio park 0.5 Kadapa
Healthcare Indian Red Cross Society – Blood bank 5.8 Visakhapatnam
Sugar Sri Sarvaraya Sugar limited – sugar manufacturing unit 10.2 Prakasam District
Infrastructure Panyam Cements & Mineral Industries Ltd – cement plant 16.5 Kurnool
IT/R&D Dupont private Limited – R&D Centre 20.5 Hyderabad
IT Value Labs Limited - KPO 30.8 Hyderabad
Real estate PBEL limited – PBEL City Township 113.5 Hyderabad
Real estate Ashoka & Cybercity Builders & Developers Limited - Rainbow Vistas 123 Hyderabad
Oil and gas HPCL – oil refinery 155 Visakhapatnam
Infrastructure Larsen and Toubro Limited – water supply 166.5 Hyderabad
Aerospace Tata Advanced Systems Limited – aerospace project 205 Ranga Reddy District
Power BHEL - Kakatiya Thermal Power Project Stage-II 272 Rayalaseema region
Real estate Indu Group – Indu Ciry 340 Ranga Reddy District
Infrastructure Patel Engineering Limited – lift irrigation project 793 Pan AP
Tourism State Government – AP Tourism 2055 Kadapa District
Nuclear power AP Genco Limited – Nuclear power generation unit 3083 Kadapa/Srikakulam
Source: News publications
Andhra Pradesh September 2009
74
Investments in AP
BUSINESS OPPORTUNITIES
Investment intentions in the state filed with DIPP Proposed investments in the state
• FDI inflows in the state between April 2000 and July 2009 were close to US$ 4 billion.
Source: SIA Statistics, DIPP website, http://siadipp.nic.in, accessed 22 September 2009
Note: Total investment intentions are sum of investment in terms of Industrial Entrepreneur Memoranda (IEMs) filed, Letters of Intent (LOIs) issued and
Direct Industrial Licences issued.
Andhra Pradesh September 2009
Num
ber
of in
tentions
Inve
stm
ent
US$
mn
75
Budget plan outlay
BUSINESS OPPORTUNITIES
Plan outlay for AP state government O/s liabilities as a percentage of GSDP
• For 2008-2009, the plan outlay for the state is for US$ 9.6 billion.
• The outstanding liabilities of the state as a percentage of GSDP reduced from 43 per cent in 2005 to 35.6 per cent in 2009.
Source: Economy and Industry monitor: Andhra Pradesh - April 2009, Cygnus, 22 September 2009, via ISI Emerging Markets
Note: RE - Revised Estimates, BE - Budgeted Estimates
(In %
)
(In U
S$ b
n)
Andhra Pradesh September 2009
76
Key players
BUSINESS OPPORTUNITIES
GVK Dr. Reddy‘s Laboratories Lanco Infratech Limited
• Established in 1994
• 7,000 professionals
• Focus areas: Urban infrastructure,
hospitality, power, services,
manufacturing and biosciences
• Asset base of close to US$ 1.22 billion
and projects in hand worth US$ 3.65
billion
• Commissioned India‘s first 216 MW
private power plant in 1997 with an
investment of US$ 2.5 billion.
• Renovating and modernising Mumbai
airport
• Laying the first six lane expressway in
India, the Jaipur-Kishangarh BOT
project.
• Established in 1984
• Ranks among the top 15 generics players in the
world
• First pharmaceutical company in Asia-Pacific
(outside Japan) to be listed on NYSE
• Presence in 35 countries with operations in
over 115 countries
• Overseas business contributes around 86 per
cent of the total revenues
• Aspires to become a discovery led global
pharmaceutical company and one of the top 10
generic companies in the world
• Present in the therapeutics category: anti-
Infectives, CVS, diabetes, dermatological, pain
management, GI, nutritional, dental, urological
and oncology
• Established in 1989
• Focus areas: core sectors of power
generation, power trading,
construction, infrastructure and
property development
• The construction and EPC wing has
so far executed US$ 487.8 million
worth projects and has an order
book worth more than US$ 1,829
million.
• Projects in operation and those
underway represent over 8000 MW
of power generation.
• Lanco Hills Technology Park Pvt Ltd
is developing an integrated park at
Manikonda in Hyderabad which is
spread over 100 acres
Sources: Company websites
News publications
Andhra Pradesh September 2009
77
Key players
BUSINESS OPPORTUNITIES
Microsoft Dell Novartis Albany Molecular Research Inc.
• Microsoft India Development
Centre (MSIDC) is located in
Hyderabad on a 42-acre state-
of-the art campus.
• Established in 1998
• 1,200-plus employees
• Focusses on strategic and IP
sensitive software product
development for Microsoft
• It is Microsoft‘s largest
software development centre
outside the headquarters in
Redmond.
• It has established centres of
excellence for storage,
networking and mobility.
• It has filed around 180 patents
in the last three years.
• Dell India Pvt Ltd was
incorporated in 1996
• Established its second customer
contact centre in Hyderabad in
2003
• The centre has been
established on a 6.6-acre site in
Hi-Tec City.
• Offers multiple services to
various business segments,
including but not limited to
sales, customer care, technical
support, e-mail support and
shared services
• Dell Computer Corporation
has set a target to achieve an
export revenue of US$ 53.6
million in the first five years of
operations out of Hyderabad
• Novartis has presence in over
140 countries and employs
97,000 people
• Has been present in India for
the last 60 years in healthcare
sector.
• Setting up its healthcare-
related IT/ITeS and R&D
facility in Hyderabad
• The company plans to make
Hyderabad its back office hub
for data management in
clinical research and financial
service segments.
• The company is planning to
invest US$ 73 million in the
facility spread across 150
acres of land.
• AMRI research centre is
located in Hyderabad in the
ICICI Knowledge Park
• Established in 2005
• Provides custom synthesis of
scaffolds and building blocks,
as well as preparation of
reference standards
• A second laboratory for
preparing larger amounts of
pharmaceutical intermediates,
starting materials and other
compounds is now operational
as well.
• The Centre's operations are
fully integrated with US-based
resources.
Sources: Company websites News publications
Andhra Pradesh September 2009
78
The focus of this presentation is to discuss…
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Andhra Pradesh
Overall competitiveness of the state
State economy and socio economic profile
ANDHRA PRADESH September 2009
79
DOING BUSINESS IN ANDHRA PRADESH
S.NList of approvals andclearances required
Respective departments of state Estimated time
1 Registration, IEM, Industrial licenses Registrar of firms 7 days
2Allotment of land/shed in industrial estates or industrial areas
Andhra Pradesh Industrial Development Corporation
7 days for up to 1000 Sq mts
21 days for above 1000 sq mts
3 Acquisition / alienation of government lands Chief Commissioner of Land Administration (CCLA) 45 days
4 Site and building plan approval
Panchayat Raj Department
7 daysUrban Development Authority
Town and Country Planning
Municipality
5 Change of land use
Urban Development Authority
45 daysTown and Country Planning
Municipality
6
Consent for
establishment
under pollution
control
Green
AP Pollution Control Board
7 days
Orange 21 days
Red 45 days
Andhra Pradesh September 2009
Key approvals required
80
Key approvals required
S.NList of approvals andclearances required
Respective departments of state Estimated time
7
Consent for
operation under
pollution control
Green
AP Pollution Control Board
7 days
Orange 21 days
Red 45 days
8 No objection certificate for fire safety Fire Services Department 15 days
9 Excise registration Excise Department 14 days
10 VAT/CST Registration Commercial Taxes Department 7 days
11 Power feasibilityDistribution companies
7 days
12 Power connection 23 days
13 Approval of factory plansFactories Department
7 days
14 Factory license 7 days
15 Sanction of water supply Hyderabad Metro Water Supply and Sewerage Board
7 days
16 Water connection 23 days
17 Permission to draw water from rivers / public tanks Irrigation Department 30 days
Andhra Pradesh September 2009
DOING BUSINESS IN ANDHRA PRADESH
81
Average cost of doing business in AP
Hyderabad Visakapatnam-Vijaywada Others
Manufacturing
Land price (US$/sq m) 100-200 40-100 20-50
Labor (US$/man year) 825-1250
Lease rent (US cents/sq ft) 40.73* 36.59-60.96** NA
Services
Occupation costs (US cents/sq ft/month) 87.5-125 50-75 <37.5
Employee cost (US$/ man year)
Entry level professionals (< 5 years experience) 5, 000 – 25, 000
Mid-level professionals (5-15 years experience) 12,500 - 75,000
Senior professionals (> 15 years experience) 50,000 - 250,000
Andhra Pradesh September 2009
DOING BUSINESS IN ANDHRA PRADESH
82
Hyderabad Visakapatnam-Vijaywada
Others
Electricity (US cents/unit)
Commercial 15.75
Industrial 9.75 – 10.75
Water (US cents per 1,000 litres)
Commercial 50
Industrial 62.5
Residential rent (US cents/sq ft/month) 12.5-62.5 12.5-37.5
Five-star hotel room (US$/per night) 122-512 73-85 NA***
Average cost of doing business in AP
* Pashamylaram SEZ
** Visakhapatnam SEZ
*** Few districts have five-Star hotels
Sources: Data has been sourced from AP government website,
Industry sources, EY database
Andhra Pradesh September 2009
DOING BUSINESS IN ANDHRA PRADESH
83
Hub for knowledge-based industries
Policy and fiscal incentives
The state provides a conducive environment for the growth of knowledge-
based industries. The state is a leading IT and biotech hub. Large number of
MNCs and Indian companies in these two sectors have their development and
R&D centres in the state. 71 out of 500 top global corporates are present in
the state.
AP offers a wide range of fiscal and policy incentives for businesses under the
Industrial Investment Promotion Policy 2005–10. Additionally, the state has
well drafted sector- specific policies.
Rich labour pool
AP has a large base of skilled labour, making it an ideal destination for
knowledge-based sectors. Further, the state has a large pool of semi-skilled
and unskilled labour. It has a large labour force in the 15 to 49 age group.
Business climate
Andhra Pradesh September 2009
DOING BUSINESS IN ANDHRA PRADESH
84
Facilitating infrastructure
The state has a robust facilitating and support infrastructure for
businesses across sectors. AP boasts of well-developed social, physical
and industrial infrastructure and virtual connectivity.
High economic growth
GSDP at constant prices is expected to touch US$ 49.29 billion. The
state is targeting 9 per cent annual economic growth during the 11th
Five Year Plan period (2007–2012).
Stable political environment
The state has a stable political environment with a single-party
government. AP has a strong, committed and focussed leadership that
strives towards creating a conducive business environment for the
progress of the state.
Business climate
Andhra Pradesh September 2009
DOING BUSINESS IN ANDHRA PRADESH
85
The focus of this presentation is to discuss…
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Andhra Pradesh
Overall competitiveness of the state
State economy and socio economic profile
ANDHRA PRADESH September 2009
86
OVERALL COMPETITIVENESS OF THE STATE
Parameter
Opportunities in different industries
Tourism
Information technology
Food processing industry
Crude oil and natural gas
Petrochemicals
Pharmaceuticals and biotechnology
Agriculture food and agro
processing industry
Mineral-based industry
Engineering industry
High Medium Low
Overall competitiveness of the state
Parameter
Opportunities in different industries
Chemicals industry
Apparel and textile
Leather industry
Retail
Electronic hardware
Doing business
Fiscal and non-fiscal
incentives
Cost of doing business
Availability of labour
Ease of setting up and
carrying out business
Andhra Pradesh September 2009
87
Overall competitiveness of the state
OVERALL COMPETITIVENESS OF THE STATE
Parameter
Industrial infrastructure - existing and proposed
Power
Connectivity
Industrial estates/areas
STP
EPIP
EPZ
IIDC
Industrial growth centre
High Medium Low
Andhra Pradesh September 2009
88
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ANDHRA PRADESH September 2009