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For updated information, please visit www.ibef.org January 2019
ANDHRA PRADESH
THE RICE GRANARY OF INDIA
IDOL OF NANDI IN LEPAKI, ANDHRA PRADESH
Table of Content
Executive Summary…….………….…..…….3
Re-organisation Act, 2014..………….…......4
Introduction..………………………...………..6
Economic Snapshot..…………………..…..11
Physical Infrastructure..………...............…17
Social Infrastructure...................................25
Key Sectors..…..........................................31
Key Procedures & Policies...…….........…..37
Annexure...…….……….........................….48
Industrial Infrastructure..............................28
For updated information, please visit www.ibef.orgAndhra Pradesh3
EXECUTIVE SUMMARY
Source: The Marine Products Export Development Authority (MPEDA), Ministry of Tourism, Government of India, State Budget, AP State Portal, Andhra Pradesh Tourism, DGCIS Analytics
 Andhra Pradesh accounts for a major share in the overall exports of seafood products from India, in value
terms.
 Andhra Pradesh ranks first in prawn and fish production in the country and fourth in production of marine
fisheries.
Largest exporter of marine
products
 Various pharmaceutical companies have set up their manufacturing hubs in Visakhapatnam and Srikakulam
districts. The state provides ample growth opportunities due to availability of ports along with large parcels of
land for expansion, etc.
 Out of the 19 operational SEZs in Andhra Pradesh, four are pharmaceutical SEZs, as of March 2018.
Exports of pharmaceuticals* from the state stood at US$ 1.41 billion in FY18 and reached US$ 752.35 million
in FY19 (up to September 2018).
Growth of pharmaceutical
industry
 A National Investment and Manufacturing Zone (NIMZ) is under works in Prakasam district. It is going to be
set up over an area of 14,231 acres and will help in generating 500,000 jobs over the next 10 years. As per
latest available data, land acquisition for the project has already been started.
Largest exporter of marine
products
 Tourist arrivals in Andhra Pradesh increased around 13.98 per cent to 165.43 million in 2017^.
 Under Budget 2018-19, the Government of Andhra Pradesh announced an allocation of Rs 290 crore (US$
44.79 million) for the development of tourism and culture in the state.
Tourist Destination
Note: P – Provisional, *includes drug formulations, biologicals, bulk drugs and drug intermediates, ^ - Estimated figures of Andhra Pradesh for the year 2017 using all-India growth rate
For updated information, please visit www.ibef.orgAndhra Pradesh4
REORGANISATION ACT, 2014 … (1/2)
Andhra Pradesh Reorganisation Act, 2014 or the Telangana Act is a parliamentary declaration of the bifurcation of Andhra Pradesh state into 2
states, Telangana & residuary Andhra Pradesh. The act consisted of the aspects of division of assets and liabilities, the boundaries of the proposed
new states & status of the capital city Hyderabad after the separation of the state. As per the Ministry of Law & Justice, this act may be called the
Andhra Pradesh Reorganisation (Amendment) Act, 2015. After the amendment of this act, number size of members will increase to 58 from 50.
 Greater Hyderabad Municipal Corporation area of Hyderabad would be the common capital for the states for a period not
more than 10 years. However, the new capital city would be Amaravati. Both states to have a common Governor.
Common capital and
Governor
 Central Government to provide assistance to raise additional forces.
 New training centre for Seemandhra would be established.
Police forces
 High Court at Hyderabad would be a common High Court till a separate High Court is established for Seemandhra.
 The expenditure is to be allocated on the basis of population ratio.
High Court
 Central Government to make appropriate grants, provide adequate benefits & incentives in the form of a special
development package for Seemandhra.
 This will ensure expansion of physical & social infrastructure.
Special development
package
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REORGANISATION ACT, 2014 … (2/2)
 The Government of India shall take steps to establish institutions of national importance in the newly formed state.
 The Government of India shall establish an AIIMS-type super-specialty hospital-cum-teaching institution.
 Admissions in higher, technical & medical education would be common for 10 years.
 Quotas under article 371-D would also continue.
Higher Education
 2 separate boards would be created by the central government for Krishna & Godavari Rivers to look after administration,
regulation, maintenance & operation of notified projects.
Water Resources
 Existing PPAs would continue; units of APGENCO and assets of APTRANSCO would be divided based on location.
 Central power would be allotted on actual energy consumption trend.
Energy
 Central Government to provide financial support for creation of a new capital.
 An expert committee to be constituted by the central government to study various alternatives & make a recommendation
within 6 months. However, the new capital city would be Amaravati.
 The World Bank, Housing & Urban Development Corporation (HUDCO) & Andhra Bank, sanctioned US$2.61 billion for the
construction of capital city of Amaravati.
 The state government is planning to build a new world class capital city, Amaravati, on a 217 sq km open area in Guntur
district. The city is being designed with 10% water bodies and 51% green spaces, along with several iconic buildings.
New Capital
 For central government employees, an advisory committee would be appointed to draw up guidelines and take up the
allocation exercise.
 For state government employees, district, zonal & multi-zonal cadres falling in one of the successor states are deemed to be
allotted to that state; else employees would be allocated based on options.
Services of
Employees
ANDHRA PRADESH
INTRODUCTION
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ANDHRA PRADESH FACT FILE
 Andhra Pradesh is located in the southern peninsula of India & has a
coast line of 974 km. It is considered to be among the top 10 largest
states in the country.
 The state of Andhra Pradesh is bound by Chhattisgarh on the north,
Odisha on the northeast, Telangana & Karnataka on the west, Tamil
Nadu on the south & the Bay of Bengal on the east.
 Visakhapatnam, Vijayawada, Tirupati, Rajahmundry, Guntur,
Kakinada, Ongole, Nellore & Kurnool are some of the key cities in
the state.
 Most commonly spoken language is Telugu. Urdu, Hindi, Tamil,
Kannada & Oriya are the other languages used.
 Out of various districts in the state, Krishna district has the highest
population density at 518 persons per sq. km.
Source: Maps of India
Source: Andhra Pradesh State Portal, Andhra Pradesh Socio-Economic Survey 2016-17, 1For ten years
Parameters Andhra Pradesh
Capital Hyderabad
1
, Amaravati
Geographical area (sq km) 162,970
Administrative districts (No) 13
Population density (persons per sq km) 304
Total population (million) 49.58
Male population (million) 24.83
Female population (million) 24.75
Sex ratio (females per 1,000 males) 997
Literacy rate (per cent) 67.4
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ADVANTAGE
Long coastline
 A 974-km long coastline provides numerous
opportunities for the state to develop a number of
ports.
 The Visakhapatnam port ranks fourth in terms of
port traffic. During 2017-18, the traffic handled at
the port was 63.537 million tonnes.
Growth in Exports
 The state recorded exports of US$ 6.30 billion
during FY19 (between April-September 2018).
 Andhra Pradesh primarily exports drugs,
pharmaceuticals and allied chemicals and
plastics, agriculture and agro-based products,
engineering products, mineral products,
handicrafts and carpets, textiles, leather, animal
and marine products.
Adequate power
generation capacity
 Most of the coal-based power plants are located
in the coastal regions due to their connectivity to
the ports.
 The Government of Andhra Pradesh delivers
24X7 reliable and quality power across the
industrial commercial and domestic sectors of the
state.
Advantage
Andhra
Pradesh
High economic growth
 GSDP at current prices expanded at a compound
annual growth rate (CAGR) of 13.33* per cent between
2011-12 and 2017-18 to Rs 8.03 trillion (US$ 124.59
billion).
 During 2017-18AE, the Gross Value Added by the
industrial sector, at current prices, was recorded to be
US$ 25.21 billion.
Source: Central Electricity Authority, Directorate of Economics & Statistics of Andhra Pradesh, Central Statistics Office, Andhra Pradesh State Portal, Indian Port Association,
Note: GSDP: Gross State Domestic Product, * In Rs terms, AE – Advance Estimates
For updated information, please visit www.ibef.orgAndhra Pradesh9
ANDHRA PRADESH IN FIGURES
Parameter
Andhra
Pradesh
India
GSDP as a percentage of all
states’ GSDP
4.80 100.00
GSDP growth rate (%) 15.58 9.80
Per capita GSDP (US$) 2,443.69 1,975.05
Andhra Pradesh’s Contribution to Indian Economy (2017-18)
Parameter Andhra Pradesh India
Installed power capacity
(MW) (November 2018)
23,674.17 346,619.37
Wireless subscribers (No)
(as of October 2018)
86,758,856 1,170,015,908
Internet subscribers (Mn)
(as of September 2018)
43.78 560.01
National highway length
(km)
8,053 122,432
Major and minor ports
(No)
1+12 12+200
Airports (No) 7 129
Physical Infrastructure in Andhra Pradesh
Parameter
Andhra
Pradesh
India
Literacy rate (%) 67.40 73.0
Birth rate (per 1,000
population)
16.4 20.4
Social Indicators
Parameter
Andhra
Pradesh
India
Operational PPP projects (No) 66 1,467
Operational SEZs (No) (as of
July 2018)
19 223
Industrial Infrastructure
Parameter
Andhra
Pradesh
India
Cumulative FDI equity inflows
since April 2000 (US$ billion)
16.487 389.721
Investments (as of June 2018)
Note: GSDP, per capita GSDP figures are taken at current prices, exchange rates used is average of 2017-18 i.e. 64.45, For source refer to Annexure, FDI data is expected to be updated
by March 2019 from FDI Statistics Report
For updated information, please visit www.ibef.orgAndhra Pradesh10
VISION - 2029
Job Creation
through MSMEs
Economic
Growth
Infrastructure
Development
Social
Development
 Achieve Human Development Index
(HDI) score of 0.9
 Receive very high human
development status
Start-up
Ecosystem
Agriculture
and
Fisheries
 25,000 new and export oriented
MSMEs
 Share of MSME Employment to be
10% by 2029
 Establish 100
Incubators/Accelerators
 Incubate 5,000 companies and
start-ups
 Increase GSDP per capita to Rs 5.07 lakhs
(US$ 7,866.56) by 2029-30.
 Achieve12 per cent annual GSDP growth till
2029-30.
 Construct 24,000 km of roads
and highways
 Increase storage and warehouse
capacity to 62.9 MTPA by 2029
 Increase cargo handling capacity
to 550 MTPA
 Reduce post - harvest losses in
horticulture crops to 5%
 Add value to 40 per cent of total
fish produce by 2029
Vision 2029
Source: Sunrise Andhra Pradesh Vision 2029
ANDHRA PRADESH
ECONOMIC SNAPSHOT
For updated information, please visit www.ibef.orgAndhra Pradesh12
ECONOMIC SNAPSHOT – GSDP
Source: Andhra Pradesh Socio Economic Survey 2017-18
GSDP of Andhra Pradesh at current prices
79.12
75.56
76.74
85.85
91.70
103.67
124.73
3.79
4.11
4.64
5.25
6.00
6.95
8.04
0
1
2
3
4
5
6
7
8
9
0
20
40
60
80
100
120
140
2011-12
2012-13
2013-14
2014-15
2015-16SRE
2016-17FRE
2017-18AE
US$ billion Rs trillion
CAGR (In Rs) 13.33%
1,605.77
1,524.36
1,539.19
1,711.84
1,817.88
2,042.95
2,443.69
76,996.85
83,001.25
93,120.73
104,679.07
118,998.14
137,061.47
157,495.54
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
0
500
1000
1500
2000
2500
3000
2011-12
2012-13
2013-14
2014-15
2015-16SRE
2016-17FRE
2017-18AE
US$ Rs
GSDP per capita of Andhra Pradesh at current prices
CAGR (In Rs) 12.67%
 At current prices, the GSDP of Andhra Pradesh was Rs 8.04
trillion (US$ 124.20 billion) in 2017-18.
 The GSDP grew at a CAGR of 13.33 per cent from 2011-12 to
2017-18.
 The state’s per capita GSDP in 2017-18 was Rs 1,57,495.54
(US$ 2,432.74) compared with Rs 76,996.85 (US$ 1,642.42) in
2011-12.
 Per capita GSDP increased at a CAGR of 12.67 per cent
between 2011-12 and 2017-18.
Note: SRE – Second Revised Estimates, FRE - First Revised Estimates, AE - Advance Estimates
For updated information, please visit www.ibef.orgAndhra Pradesh13
ECONOMIC SNAPSHOT – NSDP
NSDP of Andhra Pradesh at current prices
70.91
67.99
68.29
77.01
82.67
93.53
112.00
3.40
3.70
4.13
4.71
5.41
6.28
7.25
0
1
2
3
4
5
6
7
8
0
20
40
60
80
100
120
2011-12
2012-13
2013-14
2014-15
2015-16SRE
2016-17FRE
2017-18AE
US$ billion Rs trillion
Source: Andhra Pradesh Socio Economic Survey 2017-18
CAGR (In Rs) 13.45%
NSDP per capita of Andhra Pradesh at current prices
1,439.00
1,371.68
1,369.75
1,535.62
1,638.80
1,843.26
2194.2
69,000.00
74,688.00
82,870.00
93,903.00
107,276.00
123,664.00
142,054.00
0
20000
40000
60000
80000
100000
120000
140000
160000
0
500
1000
1500
2000
2500
2011-12
2012-13
2013-14
2014-15
2015-16SRE
2016-17FRE
2017-18AE
US$ Rs
CAGR (In Rs) 12.79%
 At current prices, the NSDP of Andhra Pradesh was Rs 7.25
trillion (US$ 112.00 billion) in 2017-18.
 The NSDP grew at a CAGR of 13.45 per cent from 2011-12 to
2017-18.
 The state’s per capita NSDP in 2017-18 was Rs 1,42,054.00
(US$ 2,194.22) compared with Rs 69,000.00 (US$ 1,471.84) in
2011-12.
 Per capita GSDP increased at a CAGR of 12.79 per cent
between 2011-12 and 2017-18.
Note: SRE – Second Revised Estimates, FRE – First Revised Estimates, AE – Advance Estimates
For updated information, please visit www.ibef.orgAndhra Pradesh14
ECONOMIC SNAPSHOT – PERCENTAGE
DISTRIBUTION OF GSVA
 During 2017-18AE, the services sector accounted for a share of 43.6
per cent in the total GVA of the state, followed by agriculture and
allied sector at 34.4 per cent and Industry at 22.1 per cent.
 The agriculture and allied sector grew at the fastest rate at 17.93 per
cent between 2011-12 and 2017-18AE, followed by the services
sector at 14.38 per cent and industry sector at 6.29 per cent.
Visakhapatnam port traffic (million tonnes)GSVA composition by sector
26.88%
34.37%
32.21%
22.09%
40.91% 43.55%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011-12 2017-18AE
Agriculture & Allied Industry Services
17.93%
14.38%
6.29%
CAGR^
Source: Andhra Pradesh Socio Economic Survey 2017-18
Note: AE – Advance Estimates
For updated information, please visit www.ibef.orgAndhra Pradesh15
ECONOMIC SNAPSHOT – FDI INFLOWS &
INVESTMENTS
 According to the Department of Industrial Policy & Promotion (DIPP),
FDI inflows in Andhra Pradesh between April 2000 and June 2018
reached US$ 16,487 million.
 During AP-CII Partnership Summit 2018 held at Vishakhapatnam,
the state signed MoUs worth Rs 4.39 lakh crore (US$ 68.11 billion).
 In August 2018, Chinese phone components maker Holitech
Technology Company decided to invest Rs 1,400 crore (US$ 200
million) for setting up of a facility which will manufacture five types of
smartphone components exclusively for Xiaomi India.
 During 2018, up to October, 131 investment intentions worth Rs
14,334 crore (US$ 1.99 billion) were filed in Andhra Pradesh.
Visakhapatnam port traffic (million tonnes)
Source: Department of Industrial Policy & Promotion
FDI inflows in Andhra Pradesh in April 2000-June 2018 (US$
million)
16,487
848
1,159
678
1,369
1,556
2,195
1,246
1,475
5,961
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
FY01-FY11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19*
FY01-FY19*
Year Number Proposed Investments (US$ billion)
2016 164 5.13
2017 154 4.54
2018^ 131 1.99
Investment intentions in terms of IEMs filed, LOIs / DILs issued
Note: *up to June 2018, ^Up to October 2018, FDI data is expected to be updated by March 2019 from FDI Statistics Report
For updated information, please visit www.ibef.orgAndhra Pradesh16
ECONOMIC SNAPSHOT – EXPORT TRENDS
 Merchandise exports from Andhra Pradesh have increased to US$ 13.02 billion in 2017-18 from US$ 11.94 billion in 2016-17. In 2018-19* they
have reached US$ 6.30 billion.
 Marine Products is the largest export category of the state, accounting for nearly 20.74 per cent of total exports in 2018-19*, followed by Drugs
Formulations, Biologicals (8.87 per cent) and Iron and Steel (8.24 per cent).
 As of September 2017, the state was also home to 76 functional Export Oriented Units (EOUs). EOUs receive various benefits including duty free
imports, benefits of MEIS scheme and reimbursement of Central Sales Tax (CST) on items not covered under Goods and Services Tax (GST).
Note: MEIS – Merchandise Export from India Scheme, *up to September 2018
Source: APEDA, Economic Survey 2017-18
Merchandise Exports from Andhra Pradesh (US$ billion)
15.91
12.14 11.94
13.02
6.30
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
FY15 FY16 FY17 FY18 FY19*
Principal Commodities Exported in 2018-19*
20.74%
8.87%
8.24%
5.99%
4.76%3.77%3.67%
3.27%
40.69%
Marine Products
Drug Formulations,
Biologicals
Iron and Steel
Ship, Boats and Other
Floating Structures
Rice (Other than Basmati)
Cotton Yarn
Spices
Tobacco Unmanufactured
Others
ANDHRA PRADESH
PHYSICAL
INFRASTRUCTURE
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PHYSICAL INFRASTRUCTURE – ROADS
Source: NHAI, State Budget 2018-19
 As of February 2018, the state was connected via 6,383 km of
National Highways.
 In September 2016, the state had approved India’s first coastal
corridor – the Vishakhapatnam Chennai Industrial Corridor (VCIC).
The Asian Development Bank (ADB) has approved US$ 631 million
(in loans and grants) for the project. Further, in State Budget 2018-
19, the government allocated Rs 1,668 crore (US$ 258.81 million) for
the project. Under the project, four nodes – Vishakhapatnam,
Kakinada, Kankipadu-Gannavaram and Yerpedu-Srikalahasti have
been identified for development. The master planning of two nodes
of the corridor – Vishakhapatnam and Yerpedu-Srikalahasti – is
currently ongoing.
 For 2018-19, the state government has allocated US$ 726.44 million
as capital expenditure on transport, road and buildings department in
the state.
 Under Andhra Pradesh Petroleum, Chemicals & Petrochemicals
Investment Region (AP PCPIR), construction of 40 km of national
highways, 42 km of state highways & nearly 75 km of major districts
roads is under planning & is expected to be completed in the next 5
years. As of July 2018, the draft master plan and draft Environmental
Impact Assessment Study has been prepared.
Road Surface
Road length (km)*
(As of April 2017)
Cement & concrete 2,216.89
Black top 47,454.57
Metalled and unmetalled 2,624
Total roads 52,295.43
Note: *Update may be available by March 2019 Madhya Pradesh Economic Survey 2018-19
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PHYSICAL INFRASTRUCTURE – RAILWAYS & METRO
RAIL
 The state is well connected through the rail network.
Visakhapatnam, the largest city in the state, has rail accessibility to
nine district headquarters out of thirteen in the new state. The city is
also well connected to the neighbouring states of Odisha and
Chhattisgarh.
 The state government has undertaken construction of Nadikudi-
Srikalahasti line, covering a length of 308 km. The main purpose
behind the construction of this new line is to develop the backward
areas of Guntur, Prakasam, Nellore and Chittoor districts and
improve their connectivity with other states and also enable exports
of raw materials that are used in cement and granite industries. As
of July 2018, a section of the line stretching between Piduguralla
and Rompicherla has been laid and trial runs initiated.
 The Union Government has also planned to develop metro rail
projects at Visakhapatnam and Vijayawada. The Visakhapatnam
project, estimated to cost Rs 8,300 crore (US$ 1,287.82 million), will
develop three important routes. As of June 2018, the state
government has prepared a draft Request For Proposal (RFP)
document. Also, the state government has decided to allocate 250
acres of land for the project, as of July 2018.
 The first phase of the Vijayawada Metro Rail Project is expected to
be completed by August 2018 and the Visakhapatnam Metro Rail
Project is expected to be completed by December 2018.
Source: Maps of India
Rail network across the state
Source: News Articles
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PHYSICAL INFRASTRUCTURE – AIRPORTS
 Andhra Pradesh has eight operational airports/air strips at Visakhapatnam, Tirupati, Rajahmundry, Vijayawada, Bobbili, Nagarjuna Sagar and
Puttaparthi. Apart from these, Donakonda airport is non-operational (closed) whereas 4 are under development in Nellore, Kurnool, Ongole.
Kadapa airport has been made operational. Visakhapatnam, also popular as Vizag, has an international airport, which is under the Navy's
command.
 In January 2018, Andhra Pradesh inaugurated its seventh airport at Orvakallu near Kurnool city. It is developed on a 1,010 acre site at a cost of
Rs 110 crore (US$ 15.25 million).
 The upcoming international airport Bhogapuram will be developed by the state government, under PPP mode, at an estimated cost of US$ 328.60
million & will cater to 6.3 million passengers a year. It is expected that the airport will be completed by December 2020.
Parameter 2018-19* 2017-18 2016-17
Passenger traffic- Vijayawada airport 790,581 746,392 622,354
Passenger traffic-Visakhapatnam airport 1,877,342 2,480,379 2,358,029
Aircraft movement-Vijayawada airport 12,848 11,998 10,333
Aircraft movement-Visakhapatnam airport 15,736 19,595 19,550
Source: Airports Authority of India
Andhra Pradesh Airport Statistics
Note: 2018-19* - up to November 2018
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PHYSICAL INFRASTRUCTURE – PORTS
 Traffic handled by Visakhapatnam port reached 63.54 million tonnes
in 2017-18. In 2018-19, up to December 2018, traffic handled
reached 49.28 million tonnes.
 The state government had invited bids for development of
Bhavanapadu port in 2016. In January 2018, the state government
finalised Adani Ports and SEZ Ltd as the developer of the greenfield
project. The port is expected to have a capacity of 30.57 million
tonnes and will be constructed over 2,050 acres of land. The project
is expected to be completed by 2023 to 2024.
 Further, the Visakhapatnam multi-modal logistics parks (MMLP) is
ready for operation. The government has also announced its plans to
set up 2 more MMLPs at Krishnapatnam and Kakinada.
 On November 21, 2018, Kakinada Gateway Port Ltd, an arm of the
GMR Group signed a agreement with the director of ports to build a
port over an area of 1,811 acres owned by Kakinada SEZ.
Visakhapatnam port traffic (million tonnes)
63.91
65.50
68.04
67.42
59.04
58.50
58.00
57.03
61.02
63.54
49.28
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
55.00
60.00
65.00
70.00
75.00
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19*
Source: Ministry of Shipping, Indian Ports Association, News Articles
Note: 2018-19* - up to November2018
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PHYSICAL INFRASTRUCTURE – POWER
 As of November 2018, Andhra Pradesh had a total installed power
generation capacity of 23,674.17 MW. Out of the total, private utilities
contributed 14,654.59 MW, state utilities contributed 6,967.75 MW
and central utilities contributed 2,051.83 MW. With a contribution of
14,643.82 MW, thermal power accounted for the highest share of the
overall installed power generation capacity of the state, followed by
renewable energy with a contribution of 7,229.48 MW.
 In Budget 2018-19, the state government announced plans to invest
Rs 5,140 crore (US$ 793.95 million) for the development of the
energy sector in the state.
 The government had approved setting up of 6 light-water nuclear
reactors in the state in 2016. The nuclear reactors will be set up in
Kovvada and will have a capacity of 1,208 MW each. As of August
2018, project proposal for setting up the reactors in cooperation with
USA are in progress.
 The state achieved the lowest level of Transmission and Distribution
(T&D) losses across the country as its T&D losses decreased from
13.91 per cent in 2014 to 9.80 per cent in 2017.
 In January 2019, the Government of Andhra Pradesh launched Wind
Power Policy 2018 for the period of five years and the incentives are
declared for the period of 10 years. It aims to expand the base of
wind projects.
Installed power capacity (MW)#
11,255.54
15,301.07
22,298.30
22,933.77
23,674.17
0
5,000
10,000
15,000
20,000
25,000
2014-15
2015-16
2016-17
2017-18
2018-19*
Source: Central Electricity Authority, News Articles
Note: 2018-19* - As of November 2018, ^Under Vision 2029
For updated information, please visit www.ibef.orgAndhra Pradesh23
PHYSICAL INFRASTRUCTURE – TELECOM
 According to the Telecom Regulatory Authority of India (TRAI), Andhra Pradesh* had nearly 86.76 million wireless subscribers and 1.43 million
wireline subscribers, as of October 2018.
 As of October 2018, the overall tele-density in the state* stood at 97.86 per cent.
 By the end of October 2018, 34.35 million subscribers had submitted requests for mobile number portability in the state*.
Source: Telecom Regulatory Authority of India, India Post BSNL: Bharat Sanchar Nigam Limited
Note: ^As of July 2017, *Including Telangana, **As of September 2018, @ - till December 02, 2018, ^^ - January 02, 2018
Wireless subscribers 86,758,856
Wireline subscribers 1,431,988
Internet subscribers** 43.78
Tele density (in %) 97.86
Telecom Infrastructure (As of October 2018)*
No. of GPs in Phase-I 3,860
Pipe laid (kms.)^ 2,627
Optical Fiber Cable laid (kms)
@
4,268
Service ready GPs^^ 1,239
Performance status of Bharat Net project (as of July 2018)
For updated information, please visit www.ibef.orgAndhra Pradesh24
PHYSICAL INFRASTRUCTURE – URBAN
 The State Government is expediting work for the development of Amaravati, the state’s future capital. Tenders worth Rs 22,000 crore (US$ 3.4
billion) have been floated, 95 per cent of land pooling has been completed and the trunk infrastructure is expected to be completed by January
2019.
 As of January 2018, the State Government has launched four Smart City projects and identified 210 infrastructure projects entailing an investment
of Rs.8,814.18 crore (US$ 1.36 billion). Out of the total, 71 projects are in Kakinada, 39 projects in Tirupati, 47 projects have been identified in
Vishakhapatnam.
 Government of India has identified 33 cities in the state for coverage under AMRUT Mission. To support the mission, the state government
allocated Rs 490.94 crore (US$ 76.17 million) in budget 2018-19. Over the past four and half years, the Government of Andhra Pradesh has spent
Rs 77,000 crore (US$ 10.67 billion) in urban infrastructure.
Number of AMRUT cities with population
less than 1 million
30
Number of AMRUT cities with population
in the range of 1 – 10 million
3
Number of AMRUT cities with population
greater than 10 million
0
Total number of AMRUT cities 33
Classification of AMRUT Cities in Andhra Pradesh on the basis
of population (Census 2011)
City Population Literacy rate Area (sq. km)
Visakhapatnam 1,728,128 81.79 % 544
Kakinada 312,538 80.62 % 30.51
Tirupati 287,482 86.97 % 27.44
Amaravati 5,180,000 88.23 % 217.23
Smart City indicators (Census 2011)
ANDHRA PRADESH
SOCIAL
INFRASTRUCTURE
For updated information, please visit www.ibef.orgAndhra Pradesh26
SOCIAL INFRASTRUCTURE – EDUCATION
 Andhra Pradesh has a literacy rate of 67.4%, as per Census 2011.
 The “Sarva Siksha Abhiyaan” and “Rashtriya Madhyamik Siksha Abhiyaan” are two schemes which are focusing towards fulfilling the aim of
reinforcing the education in the schools in accordance to the enrolment, quality, access as well as retention.
 Funds allocated under Sarva Shiksha Abhiyan for Andhra Pradesh increased stood at Rs 2,882.48 crore (US$ 447.24 million).
 During 2017-18, the state had a total of 61,942 schools with a total enrolment of 6.96 million students.
 In Budget 2018-19, US$ 33.38 billion is allocated for secondary education and US$ 437.91 million for higher education.
Source: Directorate of Intermediate Education Andhra Pradesh Socio Economic Survey 2017-18, State Annual Budget, 2018-19
Classes
Enrolment of students in government schools,
2017-18 (in million)
Class I 683,022
I to II 708,049
II to III 701,997
III to IV 706,027
IV to V 702,254
V to VI 681,669
VI to VII 679,825
VII to VIII 690,929
Classes Number of schools (2017-18)
Primary 39,605
(I-VII/VIII) 9,678
(I-XII) 201
(VI-XII) 193
(I-X) 2,050
(VI-X) 10,215
Note: Update not available. It is expected to be updated by April 2019 from state's economic survey 2018-19
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SOCIAL INFRASTRUCTURE – HEALTH
 As of January 2019, the state had 1,502 primary health centres, 7,459 sub centres, 47 sub-district hospitals and 26 district hospitals.
 The state government has come up with new programmes which include 102 Talli Bidda Express for Maternal & Child Health, Tele Radiology, e-
Aushadi, etc. to provide ensured health care services to the people of the state.
 An allocation of US$ 1.31 billion has been proposed by the state government for health care sector in the state, as per the Budget 2018-19.
Source: Andhra Pradesh State Budget 2018-19, Andhra Pradesh state portal, SRS Bulletin 1Per thousand persons, 2Per thousand live births
Major hospitals
 Apollo Hospital
 Care Hospital
 Manipal Hospital
 Krishna Institute of Medical Sciences
Health indicators (SRS Bulletin 2017)
Birth rate
1
16.4
Infant mortality rate
2
34
Death Rate
1
6.8
Medical Facilities (January 2019)
Sub-centres 7,459
Primary health centres 1,502
Community health centres 215
Sub District hospitals 47
District hospitals 26
Total 9,249
Note: 1Per thousand persons, 2Per thousand live births
ANDHRA PRADESH
INDUSTRIAL
INFRASTRUCTURE
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INDUSTRIAL INFRASTRUCTURE…(1/2)
 Government of India is setting up a National Investment &
Manufacturing Zone (NIMZ) in Prakasam district, which would be set
up in an area of 14,231 acres and help in generating 5 lakh jobs over
next 10 years. Land acquisition for the project is currently underway.
 Also, development of Visakhapatnam-Chennai industrial corridor is
ongoing. The project once completed is expected to attract
investments of worth US$ 16.7 billion and generate more than
50,000 jobs.
 In April 2017, Kia Motors, a subsidiary of Hyundai Motors, signed a
Memorandum of Understanding (MoU) with the state government to
build a manufacturing facility in the state. The manufacturing facility
will be spread over 213.7 hectares and will entail US$ 2 billion of
investments and 3,000 jobs. Production of cars from the facility is
expected to begin in mid-2019. In December 2018, Kia Motors has
signed another Memorandum of Understanding (MoU) with the state
to support in the development of Electric Vehicle (EV) infrastructure
and boost to eco-friendly vehicles.
Source: APIIC
Logistics Infrastructure in Andhra Pradesh
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INDUSTRIAL INFRASTRUCTURE…(2/2)
Source: Department of Industries, Government of Andhra Pradesh
 Andhra Pradesh was home to 19 operational SEZs, 31 SEZs with formal approvals, four SEZs with in-principle approval and 26 notified SEZs, as
of July 2018. These SEZs were spread across diversified sectors which include textiles & apparel, food processing, footwear & leather products,
multi-product, pharma, IT SEZs, etc.
Some of the operational SEZs in Andhra Pradesh
Name/Developer Location Primary industry
Visakhapatnam SEZ Vishakhapatnam, Multi-product
Divi’s Laboratories Limited Chippada Village, Visakhapatnam, Pharmaceuticals
Apache SEZ Development India Private Limited Mandal Tada, Nellore District Footwear
Ramky Pharma City (India) Pvt. Ltd.
E-Bonangi Villages, Parawada
Mandal, Visakhapatnam District
Pharmaceuticals
Andhra Pradesh Industrial Infrastructural Corporation
Ltd.(APIIC)
Madhurawada Village, Visakhapatnam IT/ITES
Andhra Pradesh Industrial Infrastructure Corporation
Limited (APIIC)
Madhurawada Village, Visakhapatnam IT/ITES
L&T Hitech City Limited (formerly, Andhra Pradesh
Industrial Infrastructural Corporation Ltd.(APIIC)
Keesarapalli Village, Gannavaram
Mandal, Krishna District,
IT/ITES
Hetero Infrastructure Pvt. Ltd. Nakkapalli Mandal, Visakhapatnam Pharmaceuticals
Andhra Pradesh Industrial Infrastructural Corporation
Ltd.(APIIC)
Atchutapuram and Rambilli Mandals,
Visakhapatnam
Multi Product
Brandix India Apparel City Private Limited
Duppituru, Doturupalem Maruture and
Gurujaplen Villages in Visakhapatnam
Textile
ANDHRA PRADESH
KEY SECTORS
 Drugs and Pharmaceuticals
 Agriculture and Allied Industries
 Petroleum, Chemicals and Petrochemicals
 Tourism
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KEY INDUSTRIES – DRUGS AND PHARMACEUTICALS
 Andhra Pradesh is home to many global & national pharma players;
various companies have set up their manufacturing hubs in
Visakhapatnam & Srikakulam districts.
 Exports of pharmaceuticals* from the state stood at US$ 1.41 billion
in FY18 and reached US$ 752.99 million in FY19 (up to September
2018).
 In December 2018, the first phase of Andhra Pradesh Medtech Zone
(AMTZ) was inaugurated at Pedagantyada in Visakhapatnam. It will
have around 240 companies manufacturing medical equipments and
will generate 25,000 jobs.
Source: Andhra Pradesh IT department, News articles
Andhra Pradesh drugs and pharmaceutical exports
(US$ billion)#^
2.50
1.40
0.65
1.41
0.75
0
1
1
2
2
3
3
FY15 FY16 FY17 FY18 FY19*
Note: * up to September 2018 and includes drug formulations, biologicals, bulk drugs and drug intermediates
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KEY INDUSTRIES – AGRICULTURE AND ALLIED
INDUSTRIES … (1/2)
 The presence of rich climatic and soil conditions make Andhra
Pradesh a major agricultural belt. The state ranks first in area and
production of fruits and spices in the country.
 Few of the leading crops produced in the state include rice, chilly,
oilseeds, cotton, pulses and gram.
 The overall production of food grains in the state, during 2017-18 is
expected to have reached 15.76 million tonnes with pulses
production reaching 1.14 million tonnes.
 The production of fruits and vegetables is estimated to have reached
140.13 million tonnes and 9.77 million tonnes in 2017-18P,
respectively.
 The production of pulses and total food grains reached 154,900*
tonnes and 12,155,200 tonnes in 2018-19**. Production of total
oilseeds reached 508,100 in 2018-19**.
Source: MPEDA, APEDA, Andhra Pradesh Economic Survey 2017-18
Crop
Area under production
‘000 Ha
(2017-18)
Crop production
‘000 tonnes
(2017-18)
Paddy 2,152 12,077
Jowar 125 260
Bajra 44 84
Maize 327 2,143
Ragi 32 35
Other millets
including wheat
21 16
Pulses 1,371 1,224*
Total food grains 4,072 12,155.2*
Groundnut 738 1,009
Castor 31 16
Sesamum 36 10
Total Oilseeds 914 1,090*
Vegetables 223.58 8,503.87
Fruits 639.56 13,912.66
Note: P – Provisional, * - As per 4th Advance Estimates, ** - As per 1st Advance Estimates (Kharif only), Other crops data is expected to be updated by April 2019 from state's economic
survey 2018-19
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KEY INDUSTRIES – AGRICULTURE AND ALLIED
INDUSTRIES … (2/2)
 Andhra Pradesh is also home to a thriving fisheries industry. The state ranks first in the production of fish and shrimp in India and contributes more
than 70 per cent of the country’s cultures shrimp production.
 Fish and prawns production contributed around 6.4 per cent of the state’s GSDP and supported livelihood of 1.45 million persons, as of 2017-18.
 The state’s exports of marine products have increased from US$ 1,559.49 million in 2014-15 to US$ 2680.14 million in 2017-1 and reached US$
1,306.6 million in 2018-19 (up to September 2018).
Source: Andhra Pradesh Economic Survey 2017-18
Andhra Pradesh marine products exports (US$ million)
1559.49
1,379.17
1,114.39
2,680.14
1,306.60
0
500
1,000
1,500
2,000
2,500
3,000
2014-15 2015-16 2016-17 2017-18 2018-19**
Andhra Pradesh fish and prawn production (million tonnes)
1.98
2.35
2.77 2.75
0
1
1
2
2
3
3
2014-15 2015-16 2016-17 2017-18*
Note: 2017-18* - up to December 2017, **up to September 2018, fish and prawn production data is expected to be updated by April 2019 from state's economic survey 2018-19
For updated information, please visit www.ibef.orgAndhra Pradesh35
KEY INDUSTRIES – PETROLEUM, CHEMICALS AND
PETROCHEMICALS
 According to the Director General of Hydrocarbons (DGH), Andhra
Pradesh has huge oil & natural gas reserves. The state’s Krishna-
Godavari basin, spread over an area of nearly 52,000 sq km, has a
total hydrocarbon resource base of 1,130 million metric tones.
 Production of crude oil and natural gas in the state was recorded at
322 thousand metric tonnes and 943 mcm during 2017-2018,
respectively.
 To promote investments in the industry, Andhra Pradesh Petroleum,
Chemicals & Petrochemicals Investment Region (PCPIR) is being
set up. The projects is coming up over an investment area of 603
square km and will boost refining, petrochemicals, chemical and
manufacturing sectors in the state.
 The production of major chemical and petrochemicals stood at
659,200 tonnes in 2017-18^^.
Source: Ministry of Petroleum and Natural Gas, News articles, Andhra Pradesh Petroleum, Chemicals and Petrochemicals Investment Region, India Bureau of Mines
Production of Crude Oil and natural gas^
254.00
295.00
276.00
322.00
541.00
619.00
834.00
943.00
0
100
200
300
400
500
600
700
800
900
1,000
2014-15
2015-16
2016-17
2017-18*
Crude Oil Production ('000 MT) Natural Gas Production (MCM)
Note: MCM – Million Cubic Metres, ^Update may be available by April 2019, ^^ - includes Alkali and Inorganic Chemicals , Pesticides and Insecticides (Technical Grade) , Polymers and
Performance Plastics and Other Petrochemicals
For updated information, please visit www.ibef.orgAndhra Pradesh36
KEY INDUSTRIES – TOURISM
 Andhra Pradesh is known for its pristine beaches, sacred places of
worship, lush green forests, spicy cuisine & hospitable people. The
state continued to witness increase in domestic tourist arrivals over
the last few years.
 In 2017*, domestic tourist arrivals in the state stood at 165.43 million,
while foreign tourist arrivals stood at 271,362. In 2017-18, the state
was host to 8 per cent more tourists than the previous year.
 As per budget 2018-19, the Government of Andhra Pradesh
announced plans to spend Rs 290 crore (US$ 45.00 million) for the
development of tourism and Culture department in the state.
98.02
93.31
121.59
153.16
165.43
0
20
40
60
80
100
120
140
160
180
2013
2014
2015
2016
2017*
Domestic tourist arrival in Andhra Pradesh (in million)
Source: Ministry of Tourism, Government of India; News articles AP State Portal
Note: P – Provisional, * - Estimated figures of Andhra Pradesh for the year 2017 using all-India growth rate
ANDHRA PRADESH
KEY PROCEDURES
AND POLICIES
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SINGLE-WINDOW APPROVAL MECHANISM
 Andhra Pradesh is the first state in the country to have enacted the Industrial Single Window Clearance Act No 17 of 2002. The Act made it
compulsory for new industries to register with the single-window to obtain clearances quickly. It also simplified procedures for getting industrial
clearances.
 Committees were constituted at district and state levels to communicate to the applicant the status of their clearances. It has set time slots for
issuing clearances and incorporated a provision for deemed approval after the expiry of the time limit.
 District level committees can clear investments not exceeding US$ 219,442. State level committees can clear those exceeding US$ 219,442. .
 Above the district and state level committees is an empowered committee headed by the Chief Secretary of the state government, who reviews
and monitors disposal of applications. Overall, a State Board under the chairmanship of the Chief Minister oversees the progress of the scheme.
 Post effectiveness of The Andhra Pradesh Single Desk Policy 2015, the number of days required for clearance of application has been reduced to
21 days. The applications would be cleared at single information technology platform to enhance ease in doing business in the state.
 Andhra Pradesh has become the top ranking state as per the ease of doing business ranking in India.
 Violation of the provisions of the Act made either through self-assessment or otherwise would invite a penalty of US$ 109 in the first instance and
US$ 219 in the second instance.
For updated information, please visit www.ibef.orgAndhra Pradesh39
KEY INVESTMENT PROMOTION OFFICES
Corporations under Industries and Commerce Department
 Andhra Pradesh Industrial Development Corporation (APIDC)
 Andhra Pradesh Industrial Infrastructure Corporation (APIIC)
 Andhra Pradesh Mineral Development Corporation (APMDC)
 Andhra Pradesh State Finance Corporation (APSFC)
 Andhra Pradesh State Trading Corporation (APSTC)
 Andhra Pradesh State Handloom Weavers Co-operative Society Limited (APCO)
 Leather Industries Development Corporation of Andhra Pradesh (LIDCAP)
 Andhra Pradesh Handicrafts Development Corporation (APHDC)
 Andhra Pradesh Khadi & Village Industries Board (KVIB)
 Andhra Pradesh Urban Financial Infrastructure Development Corporation
 Directorate of Sugar and Commissionerate of Cane
 Directorate of Mines and Geology
 Commissionerate of Industries
For updated information, please visit www.ibef.orgAndhra Pradesh40
CONTACT LIST
Agency Contact information
Andhra Pradesh Industrial Infrastructure Corporation
4th Floor, Parisrama Bhavan
Fateh Maidan Road, Basheerbagh
Hyderabad - 500 004
Phone: 91-40-2323 7622, 2323 7623
Fax: 91-40-2323 3251, 2323 1459
E-mail: hyd@apiic.in
Website: www.andhra.apiic.in
Department of Industries and Commerce
Industries and Commerce Department
2nd Floor, D Block, Room No-348A
Secretariat
Hyderabad - 500022
Phone: 91-040-23454449
Fax: 91-040-23452985
E-mail: secy_inds@ap.gov.in
Website: http://industriesportal.apcgg.gov.in/
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KEY APPROVALS REQUIRED … (1/3)
S No Approvals and clearances required Respective departments of state Estimated time
1
Registration, Industrial Entrepreneurs
Memorandum (IEM), Industrial Licenses
Registrar of Firms 7 days
2
Allotment of Land/Shed in Industrial Estates or
Industrial Areas
Andhra Pradesh Industrial Development
Corporation
7 days for up to 1,000 sq m
21 days for above 1,000 sq m
3 Acquisition and alienation of Government lands Chief Commissioner of Land Administration (CCLA) 45 days
4
Building/Site Permission / Approval/License from
Municipality/ UDA (Urban Development Authority)
DT & CP (Directorate of Town & Country Planning)
Department of Municipal
Administration & Urban Development
7 days
5 Building /Site Permission from Gram Panchayat
Department of Panchayati Raj &
Rural Development
15 days / Deemed
6
Approval of change of land use for
Industrial purpose
Land Administration Department of
Revenue
If in Master Plan - 10 days
If not in Master Plan – 21 days
7
Consent for establishment
under Pollution Control
Green
AP Pollution Control Board
7 days
Orange 15 days
Red 21 days
8
Consent for operation under
Pollution Control
Green
AP Pollution Control Board
7 days
Orange 15 days
Red 21 days
Authorization of
units handling
hazardous wastes
Processed along with
CFO
Source: Commissionerate of Industries, Government of Andhra Pradesh
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KEY APPROVALS REQUIRED … (2/3)
Source: Commissionerate of Industries, Government of Andhra Pradesh
S No Approvals and clearances required Respective departments of state Estimated time
9 No-Objection Certificate for Fire Safety Directorate of Fire Services Department of Home 15 days
10 Permission for Establishment of Distillery
Prohibition & Excise Department of
Revenue
30 days
11 Licence for possession and use of Rectified Spirit 21 days
12 Licence for possession and use of Denatured Spirit 21 days
13 VAT/CST registration
Commercial Tax Department of
Revenue
3 days
14 Power feasibility
DISCOM-Department of Energy
7 days
15 Power connection
To be based on the
length of the HT line
16 Approval of factory plans
Directorate of Factories Department of Labor
Employment Training and Factories
7 days
17 Factory license
Directorate of Factories-Department
of Labor Employment Training and Factories
7 days / Deemed for
Registration only
18
Approval for water supply from
ULB s-MA & UD Department Department of Municipal Administration & Urban
Department
7 days
19 Water connection 21 days
20
Permission to draw water from
river/public tanks, Irrigation & CAD
Department Permission to dig new wells from
Ground Water Department
Irrigation & CAD Department 15 days
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KEY APPROVALS REQUIRED … (3/3)
Source: Commissionerate of Industries, Government of Andhra Pradesh
S No Approvals and clearances required Respective departments of state Estimated time
21
License for manufacture of
ayurvedic, homeo, siddha, unani
AYUSH-Department of Health, Medical & Family
Welfare
15 days
22
License for manufacture of bulk
drugs / formulations / cosmetics
Drug Control Administration Department of Health,
Medical & Family Welfare
15 days
23 Registration of partnership firms Registration & Stamps Department of Revenue 3 days
24 Registration under professional tax Commercial Tax Department of Revenue Spot approval
25 Registration of shops & establishments
Commissionerate of Labor -Department of Labor
Employment Training and Factories
Spot approval
26 Boiler registration
Directorate of Boilers Department of Labor
Employment Training and Factories
15 days
27 Registration of plastic manufacturers / recyclers AP Pollution Control Board 15 days
28
License for storage of petroleum, diesel and
Naptha
District Collector/ Civil Supplies Department 15 days
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COST OF DOING BUSINESS IN ANDHRA PRADESH
Parameter Cost estimate
Land price (US$ per hectare) 373,416
Labour cost (US$ / man year) 1,573
Occupation costs (US$ / sq ft / year) 18.4
Electricity (US cents per kWh)
Metropolitan Area: 9.1
Non Metro Area: 9.4
Cost of capital (Prime lending rate,%) 10.57
Employee cost (US$ / man year)
Software developers 6,383
Team leads 14,893
Architects 21,276.5
Project managers 31,915
 Andhra Pradesh and Telangana jointly topped the 2016 Ease of Doing Business Index, prepared by the World Bank and DIPP.
Source: Vijayawada Municipal Corporation, Visakhapatnam Industrial Water Supply Company, Property Sites, News articles, Travel sites, PwC report, Andhra Pradesh State Electricity
Board
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STATE ACTS AND POLICIES … (1/4)
Andhra Pradesh Internet
of Things (IoT) Policy
2016-2020
 To develop Andhra Pradesh as an IoT hub and accomplish a considerable share in the country’s IoT market by
2020.
 To create opportunities related to employment in IoT space for educated youth of the state.
 To ensure sustainable & inclusive industrial growth.
 To be among the Top 3 states in terms of industrial investments by 2022 and be the most preferred logistics hub
and India’s gateway to East and Southeast Asia by 2029.
 To enhance the quantum and quality of skilled manpower and create significant employment opportunities.
Industrial Development
Policy 2015-2020
Objectives
Read more
Read more
 To attract new investments in value added textile activities worth Rs 15,000 crore (US$ 2.24 billion) by 2023.
 To convert the major portion of yarn produced in the state into fabric and garment’s within the state.
Textile, Apparel and
Garments Policy 2018-
23 Read more
 To aid the development of solar power projects in the state and attract new investments for capacity addition of
5,000 MW over next five years
 NREDCAP would act as the nodal agency and responsible for capacity allotment.
Andhra Pradesh Solar
Power Policy 2015
Read more
 The new policy would replace the existing policy in order to attract new investments and achieve 4,000 MW
capacity addition through wind power projects in the state
 NREDCAP would act as the nodal agency and would be responsible for capacity allotment of up to 40 MW
Andhra Pradesh Wind
Power Policy 2015
Read more
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STATE ACTS AND POLICIES … (2/4)
Automobile and Auto-
Components Policy
2015-20
 To provide a special focus on Automobile Industry by the provision of subsidies and reimbursements on CST,
VAT/SGST. The development of Industrial Corridors(VCIC/CBIC) by providing excellent port logistics and
infrastructure has been highlighted in the policy.
 To attract high investments in the state and improving the employment status.
 To attract investments worth ~US$ 757 million by the end of 2020 in order to make the state as one of the most
preferred destinations for food processing industries
 Create 50,000 job opportunities in the state by 2020.
Food Processing Policy
2015-2020
 To create a conducive ecosystem to provide all clearances required to setup industry within 21 working days.
 To provide spot and deemed approvals based on self-certification and to provide parallel processing of streamlined
processes.
Andhra Pradesh Single
Desk Policy 2015-20
Objectives
 To attract investments worth ~US$ 1.5 billion by the end of 2020 through projects under the public-private
participation (PPP) mode
 Create 500,000 job opportunities in the state by 2020.
New Tourism Policy-
2015-20
 To attract investments worth ~US$ 908 million by the end of 2020 and support the state to emerge as most
preferred destination for biotech investments
 Create 5,000 job opportunities in the state by 2020.
Biotechnology Policy -
2015-20 Read more
Read more
Read more
Read more
Read more
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STATE ACTS AND POLICIES … (3/4)
Objectives
 To promotion Andhra Pradesh as the ‘Aqua Hub” of India.
Andhra Pradesh
Fisheries Policy 2015 Read more
 To make minor ports of the state as the favoured ports for container cargos from North and Central regions of the
country.
 To allow commercial feasibility of various projects related to the ports.
Andhra Pradesh Port
Policy 2015 Read more
 To provide special incentives and facilities for the electronic hardware sector in line with the present ICT policy.
The policy would cover areas such as industrial electronics, communication & broadcast equipment, computers &
peripherals, and strategic electronics & components (semiconductors, solar & displays).
Innovation & Start-up
Policy 2014-2020
Read more
Andhra Pradesh
Electronics Policy 2014-
2020
 To develop Electronics Industry as an important growth engine for Andhra
 The Policy aims to attract investments to the tune of US$ 5 billion in ESDM sector and create an employment of
0.4 Million by 2020. Read more
 To create a robust cyber ecosystem in Andhra Pradesh
 Establishment of a Cyber Security framework and strengthening law enforcement agencies
Andhra Pradesh Cyber
Security Policy 2017 Read more
For updated information, please visit www.ibef.orgAndhra Pradesh48
STATE ACTS AND POLICIES … (4/4)
Objectives
 To make Andhra Pradesh one of the most preferred destinations for seed industry.
 To attract new Investments in seed industry worth Rs 3,000 crore (US$ 0.45 billion) by 2023.
 To create additional employment opportunity for 40,000 personnel by 2023.
Andhra Pradesh State
Mega Seed Park Policy,
2018
Read more
 To incentivise real estate developers to build larger world class Information Technology (IT) office spaces.
 To reduce the approval time for office spaces for IT companies from 50 days to 21 days.
Designated Technology
Parks (DTP) Policy,
2017-2020
 To attract investments worth Rs 30,000 crore (US$ 4.47 billion) in manufacturing of electric vehicles (EVs) in the
next five years.
 To replace public transport buses in four cities to electric buses by 2024 and across the state by 2030.
Electric Mobility Policy
 To attract investments worth Rs 6,400 crore (US$ 954.65 million) in the sector by 2020.
 To bridge the demand and supply gap of human resources and capture a larger share of outsourced work in
gaming, animation, media and entertainment sector.
Animation, Visual
Effects, Gaming and
Comics (AVGC) Policy
2018-2020
ANDHRA PRADESH
ANNEXURE
For updated information, please visit www.ibef.orgAndhra Pradesh50
ANNEXURE…(1/2) - SOURCES
Data Sources
GSDP (state) Economic Survey 2017-18 (Andhra Pradesh)
Per capita GSDP figures Economic Survey 2017-18 (Andhra Pradesh)
GSDP (India) Second Advance Estimate of National Income – Ministry of Statistics and Programme Implementation
Installed power capacity (MW) Central Electricity Authority, as of November 2018
Wireless subscribers (No) Telecom Regulatory Authority of India, as of October 2018
Internet subscribers (Mn) Telecom Regulatory Authority of India, as of September 2018
National highway length (km) NHAI, Roads and Building Department-Government of India, as of February 2018
Major and minor ports (No) Indian Ports Association
Airports (No) Airports Authority of India
Literacy rate (%) Census 2011
Birth rate (per 1,000 population) SRS Bulletin 2017
Cumulative FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, April 2000 to June 2018
Operational PPP projects (No) DEA , Ministry of Finance, Government of India
Operational SEZs (No) Notified as of March 2018, Ministry of Commerce & Industry, Department of Commerce, March 2018
For updated information, please visit www.ibef.orgAndhra Pradesh51
ANNEXURE…(2/2) - EXCHANGE RATES
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR INR Equivalent of one US$
2004–05 44.95
2005–06 44.28
2006–07 45.29
2007–08 40.24
2008–09 45.91
2009–10 47.42
2010–11 45.58
2011–12 47.95
2012–13 54.45
2013–14 60.50
2014-15 61.15
2015-16 65.46
2016-17 67.09
2017-18 64.45
Q1 2018-19 67.04
Q2 2018-19 70.18
Q3 2018-19 72.15
Year INR Equivalent of one US$
2005 44.11
2006 45.33
2007 41.29
2008 43.42
2009 48.35
2010 45.74
2011 46.67
2012 53.49
2013 58.63
2014 61.03
2015 64.15
2016 67.21
2017 65.12
Source: Reserve Bank of India, Average for the year
For updated information, please visit www.ibef.orgAndhra Pradesh52
DISCLAIMER
India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with
IBEF.
All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced,
wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or
incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of
IBEF.
This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a
substitute for professional advice.
Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do
they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.
Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any
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Andhra Pradesh State Report - January 2019

  • 1. For updated information, please visit www.ibef.org January 2019 ANDHRA PRADESH THE RICE GRANARY OF INDIA IDOL OF NANDI IN LEPAKI, ANDHRA PRADESH
  • 2. Table of Content Executive Summary…….………….…..…….3 Re-organisation Act, 2014..………….…......4 Introduction..………………………...………..6 Economic Snapshot..…………………..…..11 Physical Infrastructure..………...............…17 Social Infrastructure...................................25 Key Sectors..…..........................................31 Key Procedures & Policies...…….........…..37 Annexure...…….……….........................….48 Industrial Infrastructure..............................28
  • 3. For updated information, please visit www.ibef.orgAndhra Pradesh3 EXECUTIVE SUMMARY Source: The Marine Products Export Development Authority (MPEDA), Ministry of Tourism, Government of India, State Budget, AP State Portal, Andhra Pradesh Tourism, DGCIS Analytics  Andhra Pradesh accounts for a major share in the overall exports of seafood products from India, in value terms.  Andhra Pradesh ranks first in prawn and fish production in the country and fourth in production of marine fisheries. Largest exporter of marine products  Various pharmaceutical companies have set up their manufacturing hubs in Visakhapatnam and Srikakulam districts. The state provides ample growth opportunities due to availability of ports along with large parcels of land for expansion, etc.  Out of the 19 operational SEZs in Andhra Pradesh, four are pharmaceutical SEZs, as of March 2018. Exports of pharmaceuticals* from the state stood at US$ 1.41 billion in FY18 and reached US$ 752.35 million in FY19 (up to September 2018). Growth of pharmaceutical industry  A National Investment and Manufacturing Zone (NIMZ) is under works in Prakasam district. It is going to be set up over an area of 14,231 acres and will help in generating 500,000 jobs over the next 10 years. As per latest available data, land acquisition for the project has already been started. Largest exporter of marine products  Tourist arrivals in Andhra Pradesh increased around 13.98 per cent to 165.43 million in 2017^.  Under Budget 2018-19, the Government of Andhra Pradesh announced an allocation of Rs 290 crore (US$ 44.79 million) for the development of tourism and culture in the state. Tourist Destination Note: P – Provisional, *includes drug formulations, biologicals, bulk drugs and drug intermediates, ^ - Estimated figures of Andhra Pradesh for the year 2017 using all-India growth rate
  • 4. For updated information, please visit www.ibef.orgAndhra Pradesh4 REORGANISATION ACT, 2014 … (1/2) Andhra Pradesh Reorganisation Act, 2014 or the Telangana Act is a parliamentary declaration of the bifurcation of Andhra Pradesh state into 2 states, Telangana & residuary Andhra Pradesh. The act consisted of the aspects of division of assets and liabilities, the boundaries of the proposed new states & status of the capital city Hyderabad after the separation of the state. As per the Ministry of Law & Justice, this act may be called the Andhra Pradesh Reorganisation (Amendment) Act, 2015. After the amendment of this act, number size of members will increase to 58 from 50.  Greater Hyderabad Municipal Corporation area of Hyderabad would be the common capital for the states for a period not more than 10 years. However, the new capital city would be Amaravati. Both states to have a common Governor. Common capital and Governor  Central Government to provide assistance to raise additional forces.  New training centre for Seemandhra would be established. Police forces  High Court at Hyderabad would be a common High Court till a separate High Court is established for Seemandhra.  The expenditure is to be allocated on the basis of population ratio. High Court  Central Government to make appropriate grants, provide adequate benefits & incentives in the form of a special development package for Seemandhra.  This will ensure expansion of physical & social infrastructure. Special development package
  • 5. For updated information, please visit www.ibef.orgAndhra Pradesh5 REORGANISATION ACT, 2014 … (2/2)  The Government of India shall take steps to establish institutions of national importance in the newly formed state.  The Government of India shall establish an AIIMS-type super-specialty hospital-cum-teaching institution.  Admissions in higher, technical & medical education would be common for 10 years.  Quotas under article 371-D would also continue. Higher Education  2 separate boards would be created by the central government for Krishna & Godavari Rivers to look after administration, regulation, maintenance & operation of notified projects. Water Resources  Existing PPAs would continue; units of APGENCO and assets of APTRANSCO would be divided based on location.  Central power would be allotted on actual energy consumption trend. Energy  Central Government to provide financial support for creation of a new capital.  An expert committee to be constituted by the central government to study various alternatives & make a recommendation within 6 months. However, the new capital city would be Amaravati.  The World Bank, Housing & Urban Development Corporation (HUDCO) & Andhra Bank, sanctioned US$2.61 billion for the construction of capital city of Amaravati.  The state government is planning to build a new world class capital city, Amaravati, on a 217 sq km open area in Guntur district. The city is being designed with 10% water bodies and 51% green spaces, along with several iconic buildings. New Capital  For central government employees, an advisory committee would be appointed to draw up guidelines and take up the allocation exercise.  For state government employees, district, zonal & multi-zonal cadres falling in one of the successor states are deemed to be allotted to that state; else employees would be allocated based on options. Services of Employees
  • 7. For updated information, please visit www.ibef.orgAndhra Pradesh7 ANDHRA PRADESH FACT FILE  Andhra Pradesh is located in the southern peninsula of India & has a coast line of 974 km. It is considered to be among the top 10 largest states in the country.  The state of Andhra Pradesh is bound by Chhattisgarh on the north, Odisha on the northeast, Telangana & Karnataka on the west, Tamil Nadu on the south & the Bay of Bengal on the east.  Visakhapatnam, Vijayawada, Tirupati, Rajahmundry, Guntur, Kakinada, Ongole, Nellore & Kurnool are some of the key cities in the state.  Most commonly spoken language is Telugu. Urdu, Hindi, Tamil, Kannada & Oriya are the other languages used.  Out of various districts in the state, Krishna district has the highest population density at 518 persons per sq. km. Source: Maps of India Source: Andhra Pradesh State Portal, Andhra Pradesh Socio-Economic Survey 2016-17, 1For ten years Parameters Andhra Pradesh Capital Hyderabad 1 , Amaravati Geographical area (sq km) 162,970 Administrative districts (No) 13 Population density (persons per sq km) 304 Total population (million) 49.58 Male population (million) 24.83 Female population (million) 24.75 Sex ratio (females per 1,000 males) 997 Literacy rate (per cent) 67.4
  • 8. For updated information, please visit www.ibef.orgAndhra Pradesh8 ADVANTAGE Long coastline  A 974-km long coastline provides numerous opportunities for the state to develop a number of ports.  The Visakhapatnam port ranks fourth in terms of port traffic. During 2017-18, the traffic handled at the port was 63.537 million tonnes. Growth in Exports  The state recorded exports of US$ 6.30 billion during FY19 (between April-September 2018).  Andhra Pradesh primarily exports drugs, pharmaceuticals and allied chemicals and plastics, agriculture and agro-based products, engineering products, mineral products, handicrafts and carpets, textiles, leather, animal and marine products. Adequate power generation capacity  Most of the coal-based power plants are located in the coastal regions due to their connectivity to the ports.  The Government of Andhra Pradesh delivers 24X7 reliable and quality power across the industrial commercial and domestic sectors of the state. Advantage Andhra Pradesh High economic growth  GSDP at current prices expanded at a compound annual growth rate (CAGR) of 13.33* per cent between 2011-12 and 2017-18 to Rs 8.03 trillion (US$ 124.59 billion).  During 2017-18AE, the Gross Value Added by the industrial sector, at current prices, was recorded to be US$ 25.21 billion. Source: Central Electricity Authority, Directorate of Economics & Statistics of Andhra Pradesh, Central Statistics Office, Andhra Pradesh State Portal, Indian Port Association, Note: GSDP: Gross State Domestic Product, * In Rs terms, AE – Advance Estimates
  • 9. For updated information, please visit www.ibef.orgAndhra Pradesh9 ANDHRA PRADESH IN FIGURES Parameter Andhra Pradesh India GSDP as a percentage of all states’ GSDP 4.80 100.00 GSDP growth rate (%) 15.58 9.80 Per capita GSDP (US$) 2,443.69 1,975.05 Andhra Pradesh’s Contribution to Indian Economy (2017-18) Parameter Andhra Pradesh India Installed power capacity (MW) (November 2018) 23,674.17 346,619.37 Wireless subscribers (No) (as of October 2018) 86,758,856 1,170,015,908 Internet subscribers (Mn) (as of September 2018) 43.78 560.01 National highway length (km) 8,053 122,432 Major and minor ports (No) 1+12 12+200 Airports (No) 7 129 Physical Infrastructure in Andhra Pradesh Parameter Andhra Pradesh India Literacy rate (%) 67.40 73.0 Birth rate (per 1,000 population) 16.4 20.4 Social Indicators Parameter Andhra Pradesh India Operational PPP projects (No) 66 1,467 Operational SEZs (No) (as of July 2018) 19 223 Industrial Infrastructure Parameter Andhra Pradesh India Cumulative FDI equity inflows since April 2000 (US$ billion) 16.487 389.721 Investments (as of June 2018) Note: GSDP, per capita GSDP figures are taken at current prices, exchange rates used is average of 2017-18 i.e. 64.45, For source refer to Annexure, FDI data is expected to be updated by March 2019 from FDI Statistics Report
  • 10. For updated information, please visit www.ibef.orgAndhra Pradesh10 VISION - 2029 Job Creation through MSMEs Economic Growth Infrastructure Development Social Development  Achieve Human Development Index (HDI) score of 0.9  Receive very high human development status Start-up Ecosystem Agriculture and Fisheries  25,000 new and export oriented MSMEs  Share of MSME Employment to be 10% by 2029  Establish 100 Incubators/Accelerators  Incubate 5,000 companies and start-ups  Increase GSDP per capita to Rs 5.07 lakhs (US$ 7,866.56) by 2029-30.  Achieve12 per cent annual GSDP growth till 2029-30.  Construct 24,000 km of roads and highways  Increase storage and warehouse capacity to 62.9 MTPA by 2029  Increase cargo handling capacity to 550 MTPA  Reduce post - harvest losses in horticulture crops to 5%  Add value to 40 per cent of total fish produce by 2029 Vision 2029 Source: Sunrise Andhra Pradesh Vision 2029
  • 12. For updated information, please visit www.ibef.orgAndhra Pradesh12 ECONOMIC SNAPSHOT – GSDP Source: Andhra Pradesh Socio Economic Survey 2017-18 GSDP of Andhra Pradesh at current prices 79.12 75.56 76.74 85.85 91.70 103.67 124.73 3.79 4.11 4.64 5.25 6.00 6.95 8.04 0 1 2 3 4 5 6 7 8 9 0 20 40 60 80 100 120 140 2011-12 2012-13 2013-14 2014-15 2015-16SRE 2016-17FRE 2017-18AE US$ billion Rs trillion CAGR (In Rs) 13.33% 1,605.77 1,524.36 1,539.19 1,711.84 1,817.88 2,042.95 2,443.69 76,996.85 83,001.25 93,120.73 104,679.07 118,998.14 137,061.47 157,495.54 0 20000 40000 60000 80000 100000 120000 140000 160000 180000 0 500 1000 1500 2000 2500 3000 2011-12 2012-13 2013-14 2014-15 2015-16SRE 2016-17FRE 2017-18AE US$ Rs GSDP per capita of Andhra Pradesh at current prices CAGR (In Rs) 12.67%  At current prices, the GSDP of Andhra Pradesh was Rs 8.04 trillion (US$ 124.20 billion) in 2017-18.  The GSDP grew at a CAGR of 13.33 per cent from 2011-12 to 2017-18.  The state’s per capita GSDP in 2017-18 was Rs 1,57,495.54 (US$ 2,432.74) compared with Rs 76,996.85 (US$ 1,642.42) in 2011-12.  Per capita GSDP increased at a CAGR of 12.67 per cent between 2011-12 and 2017-18. Note: SRE – Second Revised Estimates, FRE - First Revised Estimates, AE - Advance Estimates
  • 13. For updated information, please visit www.ibef.orgAndhra Pradesh13 ECONOMIC SNAPSHOT – NSDP NSDP of Andhra Pradesh at current prices 70.91 67.99 68.29 77.01 82.67 93.53 112.00 3.40 3.70 4.13 4.71 5.41 6.28 7.25 0 1 2 3 4 5 6 7 8 0 20 40 60 80 100 120 2011-12 2012-13 2013-14 2014-15 2015-16SRE 2016-17FRE 2017-18AE US$ billion Rs trillion Source: Andhra Pradesh Socio Economic Survey 2017-18 CAGR (In Rs) 13.45% NSDP per capita of Andhra Pradesh at current prices 1,439.00 1,371.68 1,369.75 1,535.62 1,638.80 1,843.26 2194.2 69,000.00 74,688.00 82,870.00 93,903.00 107,276.00 123,664.00 142,054.00 0 20000 40000 60000 80000 100000 120000 140000 160000 0 500 1000 1500 2000 2500 2011-12 2012-13 2013-14 2014-15 2015-16SRE 2016-17FRE 2017-18AE US$ Rs CAGR (In Rs) 12.79%  At current prices, the NSDP of Andhra Pradesh was Rs 7.25 trillion (US$ 112.00 billion) in 2017-18.  The NSDP grew at a CAGR of 13.45 per cent from 2011-12 to 2017-18.  The state’s per capita NSDP in 2017-18 was Rs 1,42,054.00 (US$ 2,194.22) compared with Rs 69,000.00 (US$ 1,471.84) in 2011-12.  Per capita GSDP increased at a CAGR of 12.79 per cent between 2011-12 and 2017-18. Note: SRE – Second Revised Estimates, FRE – First Revised Estimates, AE – Advance Estimates
  • 14. For updated information, please visit www.ibef.orgAndhra Pradesh14 ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSVA  During 2017-18AE, the services sector accounted for a share of 43.6 per cent in the total GVA of the state, followed by agriculture and allied sector at 34.4 per cent and Industry at 22.1 per cent.  The agriculture and allied sector grew at the fastest rate at 17.93 per cent between 2011-12 and 2017-18AE, followed by the services sector at 14.38 per cent and industry sector at 6.29 per cent. Visakhapatnam port traffic (million tonnes)GSVA composition by sector 26.88% 34.37% 32.21% 22.09% 40.91% 43.55% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011-12 2017-18AE Agriculture & Allied Industry Services 17.93% 14.38% 6.29% CAGR^ Source: Andhra Pradesh Socio Economic Survey 2017-18 Note: AE – Advance Estimates
  • 15. For updated information, please visit www.ibef.orgAndhra Pradesh15 ECONOMIC SNAPSHOT – FDI INFLOWS & INVESTMENTS  According to the Department of Industrial Policy & Promotion (DIPP), FDI inflows in Andhra Pradesh between April 2000 and June 2018 reached US$ 16,487 million.  During AP-CII Partnership Summit 2018 held at Vishakhapatnam, the state signed MoUs worth Rs 4.39 lakh crore (US$ 68.11 billion).  In August 2018, Chinese phone components maker Holitech Technology Company decided to invest Rs 1,400 crore (US$ 200 million) for setting up of a facility which will manufacture five types of smartphone components exclusively for Xiaomi India.  During 2018, up to October, 131 investment intentions worth Rs 14,334 crore (US$ 1.99 billion) were filed in Andhra Pradesh. Visakhapatnam port traffic (million tonnes) Source: Department of Industrial Policy & Promotion FDI inflows in Andhra Pradesh in April 2000-June 2018 (US$ million) 16,487 848 1,159 678 1,369 1,556 2,195 1,246 1,475 5,961 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 FY01-FY11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19* FY01-FY19* Year Number Proposed Investments (US$ billion) 2016 164 5.13 2017 154 4.54 2018^ 131 1.99 Investment intentions in terms of IEMs filed, LOIs / DILs issued Note: *up to June 2018, ^Up to October 2018, FDI data is expected to be updated by March 2019 from FDI Statistics Report
  • 16. For updated information, please visit www.ibef.orgAndhra Pradesh16 ECONOMIC SNAPSHOT – EXPORT TRENDS  Merchandise exports from Andhra Pradesh have increased to US$ 13.02 billion in 2017-18 from US$ 11.94 billion in 2016-17. In 2018-19* they have reached US$ 6.30 billion.  Marine Products is the largest export category of the state, accounting for nearly 20.74 per cent of total exports in 2018-19*, followed by Drugs Formulations, Biologicals (8.87 per cent) and Iron and Steel (8.24 per cent).  As of September 2017, the state was also home to 76 functional Export Oriented Units (EOUs). EOUs receive various benefits including duty free imports, benefits of MEIS scheme and reimbursement of Central Sales Tax (CST) on items not covered under Goods and Services Tax (GST). Note: MEIS – Merchandise Export from India Scheme, *up to September 2018 Source: APEDA, Economic Survey 2017-18 Merchandise Exports from Andhra Pradesh (US$ billion) 15.91 12.14 11.94 13.02 6.30 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 FY15 FY16 FY17 FY18 FY19* Principal Commodities Exported in 2018-19* 20.74% 8.87% 8.24% 5.99% 4.76%3.77%3.67% 3.27% 40.69% Marine Products Drug Formulations, Biologicals Iron and Steel Ship, Boats and Other Floating Structures Rice (Other than Basmati) Cotton Yarn Spices Tobacco Unmanufactured Others
  • 18. For updated information, please visit www.ibef.orgAndhra Pradesh18 PHYSICAL INFRASTRUCTURE – ROADS Source: NHAI, State Budget 2018-19  As of February 2018, the state was connected via 6,383 km of National Highways.  In September 2016, the state had approved India’s first coastal corridor – the Vishakhapatnam Chennai Industrial Corridor (VCIC). The Asian Development Bank (ADB) has approved US$ 631 million (in loans and grants) for the project. Further, in State Budget 2018- 19, the government allocated Rs 1,668 crore (US$ 258.81 million) for the project. Under the project, four nodes – Vishakhapatnam, Kakinada, Kankipadu-Gannavaram and Yerpedu-Srikalahasti have been identified for development. The master planning of two nodes of the corridor – Vishakhapatnam and Yerpedu-Srikalahasti – is currently ongoing.  For 2018-19, the state government has allocated US$ 726.44 million as capital expenditure on transport, road and buildings department in the state.  Under Andhra Pradesh Petroleum, Chemicals & Petrochemicals Investment Region (AP PCPIR), construction of 40 km of national highways, 42 km of state highways & nearly 75 km of major districts roads is under planning & is expected to be completed in the next 5 years. As of July 2018, the draft master plan and draft Environmental Impact Assessment Study has been prepared. Road Surface Road length (km)* (As of April 2017) Cement & concrete 2,216.89 Black top 47,454.57 Metalled and unmetalled 2,624 Total roads 52,295.43 Note: *Update may be available by March 2019 Madhya Pradesh Economic Survey 2018-19
  • 19. For updated information, please visit www.ibef.orgAndhra Pradesh19 PHYSICAL INFRASTRUCTURE – RAILWAYS & METRO RAIL  The state is well connected through the rail network. Visakhapatnam, the largest city in the state, has rail accessibility to nine district headquarters out of thirteen in the new state. The city is also well connected to the neighbouring states of Odisha and Chhattisgarh.  The state government has undertaken construction of Nadikudi- Srikalahasti line, covering a length of 308 km. The main purpose behind the construction of this new line is to develop the backward areas of Guntur, Prakasam, Nellore and Chittoor districts and improve their connectivity with other states and also enable exports of raw materials that are used in cement and granite industries. As of July 2018, a section of the line stretching between Piduguralla and Rompicherla has been laid and trial runs initiated.  The Union Government has also planned to develop metro rail projects at Visakhapatnam and Vijayawada. The Visakhapatnam project, estimated to cost Rs 8,300 crore (US$ 1,287.82 million), will develop three important routes. As of June 2018, the state government has prepared a draft Request For Proposal (RFP) document. Also, the state government has decided to allocate 250 acres of land for the project, as of July 2018.  The first phase of the Vijayawada Metro Rail Project is expected to be completed by August 2018 and the Visakhapatnam Metro Rail Project is expected to be completed by December 2018. Source: Maps of India Rail network across the state Source: News Articles
  • 20. For updated information, please visit www.ibef.orgAndhra Pradesh20 PHYSICAL INFRASTRUCTURE – AIRPORTS  Andhra Pradesh has eight operational airports/air strips at Visakhapatnam, Tirupati, Rajahmundry, Vijayawada, Bobbili, Nagarjuna Sagar and Puttaparthi. Apart from these, Donakonda airport is non-operational (closed) whereas 4 are under development in Nellore, Kurnool, Ongole. Kadapa airport has been made operational. Visakhapatnam, also popular as Vizag, has an international airport, which is under the Navy's command.  In January 2018, Andhra Pradesh inaugurated its seventh airport at Orvakallu near Kurnool city. It is developed on a 1,010 acre site at a cost of Rs 110 crore (US$ 15.25 million).  The upcoming international airport Bhogapuram will be developed by the state government, under PPP mode, at an estimated cost of US$ 328.60 million & will cater to 6.3 million passengers a year. It is expected that the airport will be completed by December 2020. Parameter 2018-19* 2017-18 2016-17 Passenger traffic- Vijayawada airport 790,581 746,392 622,354 Passenger traffic-Visakhapatnam airport 1,877,342 2,480,379 2,358,029 Aircraft movement-Vijayawada airport 12,848 11,998 10,333 Aircraft movement-Visakhapatnam airport 15,736 19,595 19,550 Source: Airports Authority of India Andhra Pradesh Airport Statistics Note: 2018-19* - up to November 2018
  • 21. For updated information, please visit www.ibef.orgAndhra Pradesh21 PHYSICAL INFRASTRUCTURE – PORTS  Traffic handled by Visakhapatnam port reached 63.54 million tonnes in 2017-18. In 2018-19, up to December 2018, traffic handled reached 49.28 million tonnes.  The state government had invited bids for development of Bhavanapadu port in 2016. In January 2018, the state government finalised Adani Ports and SEZ Ltd as the developer of the greenfield project. The port is expected to have a capacity of 30.57 million tonnes and will be constructed over 2,050 acres of land. The project is expected to be completed by 2023 to 2024.  Further, the Visakhapatnam multi-modal logistics parks (MMLP) is ready for operation. The government has also announced its plans to set up 2 more MMLPs at Krishnapatnam and Kakinada.  On November 21, 2018, Kakinada Gateway Port Ltd, an arm of the GMR Group signed a agreement with the director of ports to build a port over an area of 1,811 acres owned by Kakinada SEZ. Visakhapatnam port traffic (million tonnes) 63.91 65.50 68.04 67.42 59.04 58.50 58.00 57.03 61.02 63.54 49.28 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00 55.00 60.00 65.00 70.00 75.00 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19* Source: Ministry of Shipping, Indian Ports Association, News Articles Note: 2018-19* - up to November2018
  • 22. For updated information, please visit www.ibef.orgAndhra Pradesh22 PHYSICAL INFRASTRUCTURE – POWER  As of November 2018, Andhra Pradesh had a total installed power generation capacity of 23,674.17 MW. Out of the total, private utilities contributed 14,654.59 MW, state utilities contributed 6,967.75 MW and central utilities contributed 2,051.83 MW. With a contribution of 14,643.82 MW, thermal power accounted for the highest share of the overall installed power generation capacity of the state, followed by renewable energy with a contribution of 7,229.48 MW.  In Budget 2018-19, the state government announced plans to invest Rs 5,140 crore (US$ 793.95 million) for the development of the energy sector in the state.  The government had approved setting up of 6 light-water nuclear reactors in the state in 2016. The nuclear reactors will be set up in Kovvada and will have a capacity of 1,208 MW each. As of August 2018, project proposal for setting up the reactors in cooperation with USA are in progress.  The state achieved the lowest level of Transmission and Distribution (T&D) losses across the country as its T&D losses decreased from 13.91 per cent in 2014 to 9.80 per cent in 2017.  In January 2019, the Government of Andhra Pradesh launched Wind Power Policy 2018 for the period of five years and the incentives are declared for the period of 10 years. It aims to expand the base of wind projects. Installed power capacity (MW)# 11,255.54 15,301.07 22,298.30 22,933.77 23,674.17 0 5,000 10,000 15,000 20,000 25,000 2014-15 2015-16 2016-17 2017-18 2018-19* Source: Central Electricity Authority, News Articles Note: 2018-19* - As of November 2018, ^Under Vision 2029
  • 23. For updated information, please visit www.ibef.orgAndhra Pradesh23 PHYSICAL INFRASTRUCTURE – TELECOM  According to the Telecom Regulatory Authority of India (TRAI), Andhra Pradesh* had nearly 86.76 million wireless subscribers and 1.43 million wireline subscribers, as of October 2018.  As of October 2018, the overall tele-density in the state* stood at 97.86 per cent.  By the end of October 2018, 34.35 million subscribers had submitted requests for mobile number portability in the state*. Source: Telecom Regulatory Authority of India, India Post BSNL: Bharat Sanchar Nigam Limited Note: ^As of July 2017, *Including Telangana, **As of September 2018, @ - till December 02, 2018, ^^ - January 02, 2018 Wireless subscribers 86,758,856 Wireline subscribers 1,431,988 Internet subscribers** 43.78 Tele density (in %) 97.86 Telecom Infrastructure (As of October 2018)* No. of GPs in Phase-I 3,860 Pipe laid (kms.)^ 2,627 Optical Fiber Cable laid (kms) @ 4,268 Service ready GPs^^ 1,239 Performance status of Bharat Net project (as of July 2018)
  • 24. For updated information, please visit www.ibef.orgAndhra Pradesh24 PHYSICAL INFRASTRUCTURE – URBAN  The State Government is expediting work for the development of Amaravati, the state’s future capital. Tenders worth Rs 22,000 crore (US$ 3.4 billion) have been floated, 95 per cent of land pooling has been completed and the trunk infrastructure is expected to be completed by January 2019.  As of January 2018, the State Government has launched four Smart City projects and identified 210 infrastructure projects entailing an investment of Rs.8,814.18 crore (US$ 1.36 billion). Out of the total, 71 projects are in Kakinada, 39 projects in Tirupati, 47 projects have been identified in Vishakhapatnam.  Government of India has identified 33 cities in the state for coverage under AMRUT Mission. To support the mission, the state government allocated Rs 490.94 crore (US$ 76.17 million) in budget 2018-19. Over the past four and half years, the Government of Andhra Pradesh has spent Rs 77,000 crore (US$ 10.67 billion) in urban infrastructure. Number of AMRUT cities with population less than 1 million 30 Number of AMRUT cities with population in the range of 1 – 10 million 3 Number of AMRUT cities with population greater than 10 million 0 Total number of AMRUT cities 33 Classification of AMRUT Cities in Andhra Pradesh on the basis of population (Census 2011) City Population Literacy rate Area (sq. km) Visakhapatnam 1,728,128 81.79 % 544 Kakinada 312,538 80.62 % 30.51 Tirupati 287,482 86.97 % 27.44 Amaravati 5,180,000 88.23 % 217.23 Smart City indicators (Census 2011)
  • 26. For updated information, please visit www.ibef.orgAndhra Pradesh26 SOCIAL INFRASTRUCTURE – EDUCATION  Andhra Pradesh has a literacy rate of 67.4%, as per Census 2011.  The “Sarva Siksha Abhiyaan” and “Rashtriya Madhyamik Siksha Abhiyaan” are two schemes which are focusing towards fulfilling the aim of reinforcing the education in the schools in accordance to the enrolment, quality, access as well as retention.  Funds allocated under Sarva Shiksha Abhiyan for Andhra Pradesh increased stood at Rs 2,882.48 crore (US$ 447.24 million).  During 2017-18, the state had a total of 61,942 schools with a total enrolment of 6.96 million students.  In Budget 2018-19, US$ 33.38 billion is allocated for secondary education and US$ 437.91 million for higher education. Source: Directorate of Intermediate Education Andhra Pradesh Socio Economic Survey 2017-18, State Annual Budget, 2018-19 Classes Enrolment of students in government schools, 2017-18 (in million) Class I 683,022 I to II 708,049 II to III 701,997 III to IV 706,027 IV to V 702,254 V to VI 681,669 VI to VII 679,825 VII to VIII 690,929 Classes Number of schools (2017-18) Primary 39,605 (I-VII/VIII) 9,678 (I-XII) 201 (VI-XII) 193 (I-X) 2,050 (VI-X) 10,215 Note: Update not available. It is expected to be updated by April 2019 from state's economic survey 2018-19
  • 27. For updated information, please visit www.ibef.orgAndhra Pradesh27 SOCIAL INFRASTRUCTURE – HEALTH  As of January 2019, the state had 1,502 primary health centres, 7,459 sub centres, 47 sub-district hospitals and 26 district hospitals.  The state government has come up with new programmes which include 102 Talli Bidda Express for Maternal & Child Health, Tele Radiology, e- Aushadi, etc. to provide ensured health care services to the people of the state.  An allocation of US$ 1.31 billion has been proposed by the state government for health care sector in the state, as per the Budget 2018-19. Source: Andhra Pradesh State Budget 2018-19, Andhra Pradesh state portal, SRS Bulletin 1Per thousand persons, 2Per thousand live births Major hospitals  Apollo Hospital  Care Hospital  Manipal Hospital  Krishna Institute of Medical Sciences Health indicators (SRS Bulletin 2017) Birth rate 1 16.4 Infant mortality rate 2 34 Death Rate 1 6.8 Medical Facilities (January 2019) Sub-centres 7,459 Primary health centres 1,502 Community health centres 215 Sub District hospitals 47 District hospitals 26 Total 9,249 Note: 1Per thousand persons, 2Per thousand live births
  • 29. For updated information, please visit www.ibef.orgAndhra Pradesh29 INDUSTRIAL INFRASTRUCTURE…(1/2)  Government of India is setting up a National Investment & Manufacturing Zone (NIMZ) in Prakasam district, which would be set up in an area of 14,231 acres and help in generating 5 lakh jobs over next 10 years. Land acquisition for the project is currently underway.  Also, development of Visakhapatnam-Chennai industrial corridor is ongoing. The project once completed is expected to attract investments of worth US$ 16.7 billion and generate more than 50,000 jobs.  In April 2017, Kia Motors, a subsidiary of Hyundai Motors, signed a Memorandum of Understanding (MoU) with the state government to build a manufacturing facility in the state. The manufacturing facility will be spread over 213.7 hectares and will entail US$ 2 billion of investments and 3,000 jobs. Production of cars from the facility is expected to begin in mid-2019. In December 2018, Kia Motors has signed another Memorandum of Understanding (MoU) with the state to support in the development of Electric Vehicle (EV) infrastructure and boost to eco-friendly vehicles. Source: APIIC Logistics Infrastructure in Andhra Pradesh
  • 30. For updated information, please visit www.ibef.orgAndhra Pradesh30 INDUSTRIAL INFRASTRUCTURE…(2/2) Source: Department of Industries, Government of Andhra Pradesh  Andhra Pradesh was home to 19 operational SEZs, 31 SEZs with formal approvals, four SEZs with in-principle approval and 26 notified SEZs, as of July 2018. These SEZs were spread across diversified sectors which include textiles & apparel, food processing, footwear & leather products, multi-product, pharma, IT SEZs, etc. Some of the operational SEZs in Andhra Pradesh Name/Developer Location Primary industry Visakhapatnam SEZ Vishakhapatnam, Multi-product Divi’s Laboratories Limited Chippada Village, Visakhapatnam, Pharmaceuticals Apache SEZ Development India Private Limited Mandal Tada, Nellore District Footwear Ramky Pharma City (India) Pvt. Ltd. E-Bonangi Villages, Parawada Mandal, Visakhapatnam District Pharmaceuticals Andhra Pradesh Industrial Infrastructural Corporation Ltd.(APIIC) Madhurawada Village, Visakhapatnam IT/ITES Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) Madhurawada Village, Visakhapatnam IT/ITES L&T Hitech City Limited (formerly, Andhra Pradesh Industrial Infrastructural Corporation Ltd.(APIIC) Keesarapalli Village, Gannavaram Mandal, Krishna District, IT/ITES Hetero Infrastructure Pvt. Ltd. Nakkapalli Mandal, Visakhapatnam Pharmaceuticals Andhra Pradesh Industrial Infrastructural Corporation Ltd.(APIIC) Atchutapuram and Rambilli Mandals, Visakhapatnam Multi Product Brandix India Apparel City Private Limited Duppituru, Doturupalem Maruture and Gurujaplen Villages in Visakhapatnam Textile
  • 31. ANDHRA PRADESH KEY SECTORS  Drugs and Pharmaceuticals  Agriculture and Allied Industries  Petroleum, Chemicals and Petrochemicals  Tourism
  • 32. For updated information, please visit www.ibef.orgAndhra Pradesh32 KEY INDUSTRIES – DRUGS AND PHARMACEUTICALS  Andhra Pradesh is home to many global & national pharma players; various companies have set up their manufacturing hubs in Visakhapatnam & Srikakulam districts.  Exports of pharmaceuticals* from the state stood at US$ 1.41 billion in FY18 and reached US$ 752.99 million in FY19 (up to September 2018).  In December 2018, the first phase of Andhra Pradesh Medtech Zone (AMTZ) was inaugurated at Pedagantyada in Visakhapatnam. It will have around 240 companies manufacturing medical equipments and will generate 25,000 jobs. Source: Andhra Pradesh IT department, News articles Andhra Pradesh drugs and pharmaceutical exports (US$ billion)#^ 2.50 1.40 0.65 1.41 0.75 0 1 1 2 2 3 3 FY15 FY16 FY17 FY18 FY19* Note: * up to September 2018 and includes drug formulations, biologicals, bulk drugs and drug intermediates
  • 33. For updated information, please visit www.ibef.orgAndhra Pradesh33 KEY INDUSTRIES – AGRICULTURE AND ALLIED INDUSTRIES … (1/2)  The presence of rich climatic and soil conditions make Andhra Pradesh a major agricultural belt. The state ranks first in area and production of fruits and spices in the country.  Few of the leading crops produced in the state include rice, chilly, oilseeds, cotton, pulses and gram.  The overall production of food grains in the state, during 2017-18 is expected to have reached 15.76 million tonnes with pulses production reaching 1.14 million tonnes.  The production of fruits and vegetables is estimated to have reached 140.13 million tonnes and 9.77 million tonnes in 2017-18P, respectively.  The production of pulses and total food grains reached 154,900* tonnes and 12,155,200 tonnes in 2018-19**. Production of total oilseeds reached 508,100 in 2018-19**. Source: MPEDA, APEDA, Andhra Pradesh Economic Survey 2017-18 Crop Area under production ‘000 Ha (2017-18) Crop production ‘000 tonnes (2017-18) Paddy 2,152 12,077 Jowar 125 260 Bajra 44 84 Maize 327 2,143 Ragi 32 35 Other millets including wheat 21 16 Pulses 1,371 1,224* Total food grains 4,072 12,155.2* Groundnut 738 1,009 Castor 31 16 Sesamum 36 10 Total Oilseeds 914 1,090* Vegetables 223.58 8,503.87 Fruits 639.56 13,912.66 Note: P – Provisional, * - As per 4th Advance Estimates, ** - As per 1st Advance Estimates (Kharif only), Other crops data is expected to be updated by April 2019 from state's economic survey 2018-19
  • 34. For updated information, please visit www.ibef.orgAndhra Pradesh34 KEY INDUSTRIES – AGRICULTURE AND ALLIED INDUSTRIES … (2/2)  Andhra Pradesh is also home to a thriving fisheries industry. The state ranks first in the production of fish and shrimp in India and contributes more than 70 per cent of the country’s cultures shrimp production.  Fish and prawns production contributed around 6.4 per cent of the state’s GSDP and supported livelihood of 1.45 million persons, as of 2017-18.  The state’s exports of marine products have increased from US$ 1,559.49 million in 2014-15 to US$ 2680.14 million in 2017-1 and reached US$ 1,306.6 million in 2018-19 (up to September 2018). Source: Andhra Pradesh Economic Survey 2017-18 Andhra Pradesh marine products exports (US$ million) 1559.49 1,379.17 1,114.39 2,680.14 1,306.60 0 500 1,000 1,500 2,000 2,500 3,000 2014-15 2015-16 2016-17 2017-18 2018-19** Andhra Pradesh fish and prawn production (million tonnes) 1.98 2.35 2.77 2.75 0 1 1 2 2 3 3 2014-15 2015-16 2016-17 2017-18* Note: 2017-18* - up to December 2017, **up to September 2018, fish and prawn production data is expected to be updated by April 2019 from state's economic survey 2018-19
  • 35. For updated information, please visit www.ibef.orgAndhra Pradesh35 KEY INDUSTRIES – PETROLEUM, CHEMICALS AND PETROCHEMICALS  According to the Director General of Hydrocarbons (DGH), Andhra Pradesh has huge oil & natural gas reserves. The state’s Krishna- Godavari basin, spread over an area of nearly 52,000 sq km, has a total hydrocarbon resource base of 1,130 million metric tones.  Production of crude oil and natural gas in the state was recorded at 322 thousand metric tonnes and 943 mcm during 2017-2018, respectively.  To promote investments in the industry, Andhra Pradesh Petroleum, Chemicals & Petrochemicals Investment Region (PCPIR) is being set up. The projects is coming up over an investment area of 603 square km and will boost refining, petrochemicals, chemical and manufacturing sectors in the state.  The production of major chemical and petrochemicals stood at 659,200 tonnes in 2017-18^^. Source: Ministry of Petroleum and Natural Gas, News articles, Andhra Pradesh Petroleum, Chemicals and Petrochemicals Investment Region, India Bureau of Mines Production of Crude Oil and natural gas^ 254.00 295.00 276.00 322.00 541.00 619.00 834.00 943.00 0 100 200 300 400 500 600 700 800 900 1,000 2014-15 2015-16 2016-17 2017-18* Crude Oil Production ('000 MT) Natural Gas Production (MCM) Note: MCM – Million Cubic Metres, ^Update may be available by April 2019, ^^ - includes Alkali and Inorganic Chemicals , Pesticides and Insecticides (Technical Grade) , Polymers and Performance Plastics and Other Petrochemicals
  • 36. For updated information, please visit www.ibef.orgAndhra Pradesh36 KEY INDUSTRIES – TOURISM  Andhra Pradesh is known for its pristine beaches, sacred places of worship, lush green forests, spicy cuisine & hospitable people. The state continued to witness increase in domestic tourist arrivals over the last few years.  In 2017*, domestic tourist arrivals in the state stood at 165.43 million, while foreign tourist arrivals stood at 271,362. In 2017-18, the state was host to 8 per cent more tourists than the previous year.  As per budget 2018-19, the Government of Andhra Pradesh announced plans to spend Rs 290 crore (US$ 45.00 million) for the development of tourism and Culture department in the state. 98.02 93.31 121.59 153.16 165.43 0 20 40 60 80 100 120 140 160 180 2013 2014 2015 2016 2017* Domestic tourist arrival in Andhra Pradesh (in million) Source: Ministry of Tourism, Government of India; News articles AP State Portal Note: P – Provisional, * - Estimated figures of Andhra Pradesh for the year 2017 using all-India growth rate
  • 38. For updated information, please visit www.ibef.orgAndhra Pradesh38 SINGLE-WINDOW APPROVAL MECHANISM  Andhra Pradesh is the first state in the country to have enacted the Industrial Single Window Clearance Act No 17 of 2002. The Act made it compulsory for new industries to register with the single-window to obtain clearances quickly. It also simplified procedures for getting industrial clearances.  Committees were constituted at district and state levels to communicate to the applicant the status of their clearances. It has set time slots for issuing clearances and incorporated a provision for deemed approval after the expiry of the time limit.  District level committees can clear investments not exceeding US$ 219,442. State level committees can clear those exceeding US$ 219,442. .  Above the district and state level committees is an empowered committee headed by the Chief Secretary of the state government, who reviews and monitors disposal of applications. Overall, a State Board under the chairmanship of the Chief Minister oversees the progress of the scheme.  Post effectiveness of The Andhra Pradesh Single Desk Policy 2015, the number of days required for clearance of application has been reduced to 21 days. The applications would be cleared at single information technology platform to enhance ease in doing business in the state.  Andhra Pradesh has become the top ranking state as per the ease of doing business ranking in India.  Violation of the provisions of the Act made either through self-assessment or otherwise would invite a penalty of US$ 109 in the first instance and US$ 219 in the second instance.
  • 39. For updated information, please visit www.ibef.orgAndhra Pradesh39 KEY INVESTMENT PROMOTION OFFICES Corporations under Industries and Commerce Department  Andhra Pradesh Industrial Development Corporation (APIDC)  Andhra Pradesh Industrial Infrastructure Corporation (APIIC)  Andhra Pradesh Mineral Development Corporation (APMDC)  Andhra Pradesh State Finance Corporation (APSFC)  Andhra Pradesh State Trading Corporation (APSTC)  Andhra Pradesh State Handloom Weavers Co-operative Society Limited (APCO)  Leather Industries Development Corporation of Andhra Pradesh (LIDCAP)  Andhra Pradesh Handicrafts Development Corporation (APHDC)  Andhra Pradesh Khadi & Village Industries Board (KVIB)  Andhra Pradesh Urban Financial Infrastructure Development Corporation  Directorate of Sugar and Commissionerate of Cane  Directorate of Mines and Geology  Commissionerate of Industries
  • 40. For updated information, please visit www.ibef.orgAndhra Pradesh40 CONTACT LIST Agency Contact information Andhra Pradesh Industrial Infrastructure Corporation 4th Floor, Parisrama Bhavan Fateh Maidan Road, Basheerbagh Hyderabad - 500 004 Phone: 91-40-2323 7622, 2323 7623 Fax: 91-40-2323 3251, 2323 1459 E-mail: hyd@apiic.in Website: www.andhra.apiic.in Department of Industries and Commerce Industries and Commerce Department 2nd Floor, D Block, Room No-348A Secretariat Hyderabad - 500022 Phone: 91-040-23454449 Fax: 91-040-23452985 E-mail: secy_inds@ap.gov.in Website: http://industriesportal.apcgg.gov.in/
  • 41. For updated information, please visit www.ibef.orgAndhra Pradesh41 KEY APPROVALS REQUIRED … (1/3) S No Approvals and clearances required Respective departments of state Estimated time 1 Registration, Industrial Entrepreneurs Memorandum (IEM), Industrial Licenses Registrar of Firms 7 days 2 Allotment of Land/Shed in Industrial Estates or Industrial Areas Andhra Pradesh Industrial Development Corporation 7 days for up to 1,000 sq m 21 days for above 1,000 sq m 3 Acquisition and alienation of Government lands Chief Commissioner of Land Administration (CCLA) 45 days 4 Building/Site Permission / Approval/License from Municipality/ UDA (Urban Development Authority) DT & CP (Directorate of Town & Country Planning) Department of Municipal Administration & Urban Development 7 days 5 Building /Site Permission from Gram Panchayat Department of Panchayati Raj & Rural Development 15 days / Deemed 6 Approval of change of land use for Industrial purpose Land Administration Department of Revenue If in Master Plan - 10 days If not in Master Plan – 21 days 7 Consent for establishment under Pollution Control Green AP Pollution Control Board 7 days Orange 15 days Red 21 days 8 Consent for operation under Pollution Control Green AP Pollution Control Board 7 days Orange 15 days Red 21 days Authorization of units handling hazardous wastes Processed along with CFO Source: Commissionerate of Industries, Government of Andhra Pradesh
  • 42. For updated information, please visit www.ibef.orgAndhra Pradesh42 KEY APPROVALS REQUIRED … (2/3) Source: Commissionerate of Industries, Government of Andhra Pradesh S No Approvals and clearances required Respective departments of state Estimated time 9 No-Objection Certificate for Fire Safety Directorate of Fire Services Department of Home 15 days 10 Permission for Establishment of Distillery Prohibition & Excise Department of Revenue 30 days 11 Licence for possession and use of Rectified Spirit 21 days 12 Licence for possession and use of Denatured Spirit 21 days 13 VAT/CST registration Commercial Tax Department of Revenue 3 days 14 Power feasibility DISCOM-Department of Energy 7 days 15 Power connection To be based on the length of the HT line 16 Approval of factory plans Directorate of Factories Department of Labor Employment Training and Factories 7 days 17 Factory license Directorate of Factories-Department of Labor Employment Training and Factories 7 days / Deemed for Registration only 18 Approval for water supply from ULB s-MA & UD Department Department of Municipal Administration & Urban Department 7 days 19 Water connection 21 days 20 Permission to draw water from river/public tanks, Irrigation & CAD Department Permission to dig new wells from Ground Water Department Irrigation & CAD Department 15 days
  • 43. For updated information, please visit www.ibef.orgAndhra Pradesh43 KEY APPROVALS REQUIRED … (3/3) Source: Commissionerate of Industries, Government of Andhra Pradesh S No Approvals and clearances required Respective departments of state Estimated time 21 License for manufacture of ayurvedic, homeo, siddha, unani AYUSH-Department of Health, Medical & Family Welfare 15 days 22 License for manufacture of bulk drugs / formulations / cosmetics Drug Control Administration Department of Health, Medical & Family Welfare 15 days 23 Registration of partnership firms Registration & Stamps Department of Revenue 3 days 24 Registration under professional tax Commercial Tax Department of Revenue Spot approval 25 Registration of shops & establishments Commissionerate of Labor -Department of Labor Employment Training and Factories Spot approval 26 Boiler registration Directorate of Boilers Department of Labor Employment Training and Factories 15 days 27 Registration of plastic manufacturers / recyclers AP Pollution Control Board 15 days 28 License for storage of petroleum, diesel and Naptha District Collector/ Civil Supplies Department 15 days
  • 44. For updated information, please visit www.ibef.orgAndhra Pradesh44 COST OF DOING BUSINESS IN ANDHRA PRADESH Parameter Cost estimate Land price (US$ per hectare) 373,416 Labour cost (US$ / man year) 1,573 Occupation costs (US$ / sq ft / year) 18.4 Electricity (US cents per kWh) Metropolitan Area: 9.1 Non Metro Area: 9.4 Cost of capital (Prime lending rate,%) 10.57 Employee cost (US$ / man year) Software developers 6,383 Team leads 14,893 Architects 21,276.5 Project managers 31,915  Andhra Pradesh and Telangana jointly topped the 2016 Ease of Doing Business Index, prepared by the World Bank and DIPP. Source: Vijayawada Municipal Corporation, Visakhapatnam Industrial Water Supply Company, Property Sites, News articles, Travel sites, PwC report, Andhra Pradesh State Electricity Board
  • 45. For updated information, please visit www.ibef.orgAndhra Pradesh45 STATE ACTS AND POLICIES … (1/4) Andhra Pradesh Internet of Things (IoT) Policy 2016-2020  To develop Andhra Pradesh as an IoT hub and accomplish a considerable share in the country’s IoT market by 2020.  To create opportunities related to employment in IoT space for educated youth of the state.  To ensure sustainable & inclusive industrial growth.  To be among the Top 3 states in terms of industrial investments by 2022 and be the most preferred logistics hub and India’s gateway to East and Southeast Asia by 2029.  To enhance the quantum and quality of skilled manpower and create significant employment opportunities. Industrial Development Policy 2015-2020 Objectives Read more Read more  To attract new investments in value added textile activities worth Rs 15,000 crore (US$ 2.24 billion) by 2023.  To convert the major portion of yarn produced in the state into fabric and garment’s within the state. Textile, Apparel and Garments Policy 2018- 23 Read more  To aid the development of solar power projects in the state and attract new investments for capacity addition of 5,000 MW over next five years  NREDCAP would act as the nodal agency and responsible for capacity allotment. Andhra Pradesh Solar Power Policy 2015 Read more  The new policy would replace the existing policy in order to attract new investments and achieve 4,000 MW capacity addition through wind power projects in the state  NREDCAP would act as the nodal agency and would be responsible for capacity allotment of up to 40 MW Andhra Pradesh Wind Power Policy 2015 Read more
  • 46. For updated information, please visit www.ibef.orgAndhra Pradesh46 STATE ACTS AND POLICIES … (2/4) Automobile and Auto- Components Policy 2015-20  To provide a special focus on Automobile Industry by the provision of subsidies and reimbursements on CST, VAT/SGST. The development of Industrial Corridors(VCIC/CBIC) by providing excellent port logistics and infrastructure has been highlighted in the policy.  To attract high investments in the state and improving the employment status.  To attract investments worth ~US$ 757 million by the end of 2020 in order to make the state as one of the most preferred destinations for food processing industries  Create 50,000 job opportunities in the state by 2020. Food Processing Policy 2015-2020  To create a conducive ecosystem to provide all clearances required to setup industry within 21 working days.  To provide spot and deemed approvals based on self-certification and to provide parallel processing of streamlined processes. Andhra Pradesh Single Desk Policy 2015-20 Objectives  To attract investments worth ~US$ 1.5 billion by the end of 2020 through projects under the public-private participation (PPP) mode  Create 500,000 job opportunities in the state by 2020. New Tourism Policy- 2015-20  To attract investments worth ~US$ 908 million by the end of 2020 and support the state to emerge as most preferred destination for biotech investments  Create 5,000 job opportunities in the state by 2020. Biotechnology Policy - 2015-20 Read more Read more Read more Read more Read more
  • 47. For updated information, please visit www.ibef.orgAndhra Pradesh47 STATE ACTS AND POLICIES … (3/4) Objectives  To promotion Andhra Pradesh as the ‘Aqua Hub” of India. Andhra Pradesh Fisheries Policy 2015 Read more  To make minor ports of the state as the favoured ports for container cargos from North and Central regions of the country.  To allow commercial feasibility of various projects related to the ports. Andhra Pradesh Port Policy 2015 Read more  To provide special incentives and facilities for the electronic hardware sector in line with the present ICT policy. The policy would cover areas such as industrial electronics, communication & broadcast equipment, computers & peripherals, and strategic electronics & components (semiconductors, solar & displays). Innovation & Start-up Policy 2014-2020 Read more Andhra Pradesh Electronics Policy 2014- 2020  To develop Electronics Industry as an important growth engine for Andhra  The Policy aims to attract investments to the tune of US$ 5 billion in ESDM sector and create an employment of 0.4 Million by 2020. Read more  To create a robust cyber ecosystem in Andhra Pradesh  Establishment of a Cyber Security framework and strengthening law enforcement agencies Andhra Pradesh Cyber Security Policy 2017 Read more
  • 48. For updated information, please visit www.ibef.orgAndhra Pradesh48 STATE ACTS AND POLICIES … (4/4) Objectives  To make Andhra Pradesh one of the most preferred destinations for seed industry.  To attract new Investments in seed industry worth Rs 3,000 crore (US$ 0.45 billion) by 2023.  To create additional employment opportunity for 40,000 personnel by 2023. Andhra Pradesh State Mega Seed Park Policy, 2018 Read more  To incentivise real estate developers to build larger world class Information Technology (IT) office spaces.  To reduce the approval time for office spaces for IT companies from 50 days to 21 days. Designated Technology Parks (DTP) Policy, 2017-2020  To attract investments worth Rs 30,000 crore (US$ 4.47 billion) in manufacturing of electric vehicles (EVs) in the next five years.  To replace public transport buses in four cities to electric buses by 2024 and across the state by 2030. Electric Mobility Policy  To attract investments worth Rs 6,400 crore (US$ 954.65 million) in the sector by 2020.  To bridge the demand and supply gap of human resources and capture a larger share of outsourced work in gaming, animation, media and entertainment sector. Animation, Visual Effects, Gaming and Comics (AVGC) Policy 2018-2020
  • 50. For updated information, please visit www.ibef.orgAndhra Pradesh50 ANNEXURE…(1/2) - SOURCES Data Sources GSDP (state) Economic Survey 2017-18 (Andhra Pradesh) Per capita GSDP figures Economic Survey 2017-18 (Andhra Pradesh) GSDP (India) Second Advance Estimate of National Income – Ministry of Statistics and Programme Implementation Installed power capacity (MW) Central Electricity Authority, as of November 2018 Wireless subscribers (No) Telecom Regulatory Authority of India, as of October 2018 Internet subscribers (Mn) Telecom Regulatory Authority of India, as of September 2018 National highway length (km) NHAI, Roads and Building Department-Government of India, as of February 2018 Major and minor ports (No) Indian Ports Association Airports (No) Airports Authority of India Literacy rate (%) Census 2011 Birth rate (per 1,000 population) SRS Bulletin 2017 Cumulative FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, April 2000 to June 2018 Operational PPP projects (No) DEA , Ministry of Finance, Government of India Operational SEZs (No) Notified as of March 2018, Ministry of Commerce & Industry, Department of Commerce, March 2018
  • 51. For updated information, please visit www.ibef.orgAndhra Pradesh51 ANNEXURE…(2/2) - EXCHANGE RATES Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year) Year INR INR Equivalent of one US$ 2004–05 44.95 2005–06 44.28 2006–07 45.29 2007–08 40.24 2008–09 45.91 2009–10 47.42 2010–11 45.58 2011–12 47.95 2012–13 54.45 2013–14 60.50 2014-15 61.15 2015-16 65.46 2016-17 67.09 2017-18 64.45 Q1 2018-19 67.04 Q2 2018-19 70.18 Q3 2018-19 72.15 Year INR Equivalent of one US$ 2005 44.11 2006 45.33 2007 41.29 2008 43.42 2009 48.35 2010 45.74 2011 46.67 2012 53.49 2013 58.63 2014 61.03 2015 64.15 2016 67.21 2017 65.12 Source: Reserve Bank of India, Average for the year
  • 52. For updated information, please visit www.ibef.orgAndhra Pradesh52 DISCLAIMER India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.