ANDHRA PRADESH - IDOL OF NANDI IN LEPAKI, ANDHRA PRADESH March 2021 For updated information, please visit www.ibef.org
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ANDHRA PRADESH IDOL OF NANDI IN LEPAKI, ANDHRA PRADESH March 2021 For updated information, please visit www.ibef.org
Table of Contents Executive Summary 3 Re-organisation Act, 2014 4 Introduction 7 Economic Snapshot 12 Physical Infrastructure 18 Social Infrastructure 26 Industrial Infrastructure 29 Key Sectors 32 Key Procedures & Policies 38 Appendix 49 2
Executive summary Largest exporter of marine products 1 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. Growth of pharmaceutical industry 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. 2 Out of the 20 operational SEZs in Andhra Pradesh, four are pharmaceutical SEZs, as of October 31, 2020. Exports of pharmaceuticals* from the state stood at US$ 1.48 billion in FY20 and reached US$ 1.46 billion in FY21 (until January 2021). Government initiatives to improve infrastructure The Andhra Pradesh government is taking various initiatives to develop its physical infrastructure in the areas of rail, roads, metros and ports. 3 Groundwork for Vizag metro project with 140km-long mass rapid transit system started in October 2020. The project is estimated to cost Rs. 22,000 crore (US$ 2.98 billion) and will be completed by 2028. Tourist destination The state has taken proactive measures to promote ecotourism, which has a huge potential to facilitate job creation and growth. 4 While the state has incurred losses due to the ongoing pandemic, it is now making plans to open itself to tourists with new policies. Note: P - Provisional, *includes drug formulations, biologicals, bulk drugs and drug intermediates, SEZ- Special Economic Zone Source: The Marine Products Export Development Authority (MPEDA), Ministry of Tourism, Government of India, State Budget, AP State Portal, Andhra Pradesh Tourism, DGCIS Analytics 3
Reorganisation Act, 2014…(1/3) 1 Common capital and Governor 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. 2 Police forces Central Government to provide assistance to raise additional forces. New training centre for Seemandhra would be established.t 3 High Court 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. 4 Special development package 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. 4
Reorganisation Act, 2014…(2/3) 5 Services of Employees 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 and 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. 6 Water Resources Two separate boards would be created by the central Government for Krishna and Godavari Rivers to look after administration, regulation, maintenance and operation of notified projects. 7 Energy 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. 8 Higher Education The Government of India shall establish an AIIMS-type super-specialty hospital-cum-teaching institution. Admissions in higher, technical and medical education would be common for 10 years. Quotas under article 371-D would also continue. 5
Reorganisation Act, 2014…(3/3) 9 New Capital 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) and 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. 6
Andhra Pradesh fact file Hyderabad1, Amaravati Capital 304 persons per sq km 54.0944 million Population density total population 1,62,970 sq.km. geographical area 24.64 million 24.73 million female population male population 997 Sex ratio 67.4% administrative districts: 13 (females per 1,000 males) Key Insights literacy rate • Andhra Pradesh is in the southern peninsula of India and has a coastline of 974 kms. It is eighth 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 and the Bay of Bengal on the east. • Visakhapatnam, Vijayawada, Tirupati, Rajahmundry, Guntur, Kakinada, Ongole, Nellore and Kurnool are some of the key cities in the state. • Most commonly spoken language is Telugu. Urdu, Hindi, Tamil, Kannada and 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. Note: 1For ten years Source: Andhra Pradesh State Portal, Andhra Pradesh Socio-Economic Survey 2018-19 8
Advantage 2 LONG COASTLINE 3 ADEQUATE POWER A 974-km long coastline provides numerous GENERATION CAPACITY opportunities for the state to develop several Most of the coal-based power plants are located ports. in the coastal regions due to their connectivity to The Visakhapatnam port ranks fourth in terms of the ports. port traffic. During FY20, the traffic handled at The Government of Andhra Pradesh delivers the port was 72.72 million tonnes. 1 HIGH ECONOMIC 24X7 reliable and quality power across the industrial commercial and domestic sectors of GROWTH the state. The overall economic growth in 4 GROWTH IN EXPORT Andhra Pradesh is driven by the agriculture and allied sector, Exports from the state from April which contributed to the highest 2020 to January 2021 stood at GVA growth of 15.89% from 2 3 US$ 13.17 billion. FY12 to FY20, followed by Major exports from the state are services sector (12.52%) and marine, drugs & pharmaceuticals, industry sector (6.27%). ship boat & floating structure, iron The GSDP at current prices for & steel and rice (other than 2019-20 was Rs. 9,72,782.11 Bamoti). crore (US$ 138.19 billion) for 1 4 2019-20 as opposed to Rs. 8,62,957.08 crore (US$ 126.1 billion) for 2018-19.` Note: GSDP: Gross State Domestic Product, GVA: Gross Value Added, AE: Advanced Estimates Source: Central Electricity Authority, Directorate of Economics & Statistics of Andhra Pradesh, Central Statistics Office, Andhra Pradesh State Portal, Indian Port Association, Directorate General of Commercial Intelligence and Statistics 9
Andhra Pradesh in figures Andhra Pradesh’s Contribution to Indian Economy (2019-20) Physical Infrastructure in Andhra Pradesh GSDP GSDP as a percentage of all states’ GSDP Installed power capacity (MW) (as of February 2021) India: 100.0 | Andhra Pradesh: 4.80 India: 379130.41 | Andhra Pradesh: 25277.42 GSDP growth rate** (%) Wireless subscribers (million) (as of September 2020) India: 9.80 | Andhra Pradesh: 12.14 India: 1,148.58 | Andhra Pradesh: 86.97 Per capita GSDP* (US$) Internet subscribers (million) (as of September 2020) India: 1,975.05 | Andhra Pradesh: 2,675.9 India: 776.45 | Andhra Pradesh: 61.12 Social Indicators National highway length (km) (as of December 2020) India: 136,440 | Andhra Pradesh: 7,339.95 Literacy rate (%) Major and minor ports (No.) India: 73.0 | Andhra Pradesh: 67.40 India: 12+200 | Andhra Pradesh: 1 + 12 Birth rate (per 1,000 population) (2018) Airports (No.) (December 2020) India: 20 | Andhra Pradesh: 16.0 India: 125 | Andhra Pradesh: 7 Industrial Infrastructure Investments (as of September 2020) Operational PPP projects (No.) (December 2019) Cumulative FDI equity inflows (From October India: 1824 | Andhra Pradesh: 85 2019 to December 2020) (US$ million) India: 75,351.56 | Andhra Pradesh: 272.76 Exporting SEZs (No.) (as of October 2020) India: 262 | Andhra Pradesh: 24 Note: GSDP, per capita GSDP figures are taken at current prices, For source refer to Annexure 10
Vision – 2029 1 Economic Growth 6 Agriculture and Increase GSDP per capita to Rs. Fisheries 5.07 lakh (US$ 7,866.56) by 2029- 30. Add value to 40% of total fish produce by 2029. Achieve12% annual GSDP growth till 2029-30. 1 6 2 Job Creation 5 Start-up through MSMEs Ecosystem 25,000 new and export oriented Establish 100 MSMEs Share of MSME Employment to be 2 5 Incubators/Accelerators Incubate 5,000 companies and 10% by 2029 start-ups 3 Infrastructure Development 4 Social • Construct 24,000 km of roads and highways 3 4 Development • Increase storage and warehouse capacity to Achieve Human Development Index 62.9 MTPA by 2029 (HDI) score of 0.9 • As per the Budget 2019-20, Government has started a massive school infrastructure Receive very high human modernization program with an allocation of development status Rs. 1,500 crore (US$ 210 million). Source: Sunrise Andhra Pradesh Vision 2029 11
ECONOMIC SNAPSHOT 12
Economic snapshot – GSDP GSDP of Andhra Pradesh at current prices GDP per capita of Andhra Pradesh at current prices 160 12000 3000 200000 CAGR (in Rs.) 12.64% CAGR (in Rs.) 11.98% 180000 188,370.34 140 10000 2500 2,675.94 138.19 160000 168,083.42 2,456.57 9,727.8 120 2,411.20 126.12 155,401.75 123.07 140000 8000 2000 8,629.6 100 134,878.87 2,010.42 7,931.9 120000 102.01 1,829.78 119,777.31 92.31 6,844.2 80 6000 1500 100000 6,042.3 60 80000 4000 1000 60000 40 40000 2000 500 20 20000 0 0 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 US$ billion Rs. billion US$ Rs. At current prices, Andhra Pradesh's Gross State Domestic The state’s per capita GSDP in 2019-20 was Rs. 188,370.33 Product (GSDP) was Rs. 9,72,782.11 crore (US$ 138.19 billion) (US$ 2,675.9). for 2019-20 as opposed to Rs. 8,62,957.08 crore (US$ 126.1 billion) for 2018-19. Per capita GSDP increased at a CAGR of 11.98% between 2015-16 and 2019-20. The GSDP increased at a CAGR of 12.64% from 2015-16 to 2019-20. Source: Ministry of Statistics & Programme Implementation 13
Economic snapshot – NSDP NSDP of Andhra Pradesh at current prices NSDP per capita of Andhra Pradesh at current prices 3 180.0 140 CAGR (in Rs.) 12.59% 10000 CAGR (in Rs.) 11.93% 160.0 169.5 9000 3 120 151.2 140.0 124.4 8,754.3 8000 2.41 139.7 113.4 110.6 2.21 100 7,761.4 2 120.0 2.17 7000 7,129.4 120.7 6000 100.0 91.3 108.0 1.80 80 6,123.5 2 83.2 1.65 5000 5,448.3 80.0 60 4000 1 60.0 40 3000 40.0 2000 1 20 20.0 1000 0 0 0 0.0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 US$ billion Rs. billion US$ (000s) Rs. (000s) At current prices, the NSDP of Andhra Pradesh was Rs. The state’s per capita income at current prices increased to Rs. 875,429.02 crore (US$ 124.4 billion) in 2019-20. 1,69,519 (US$ 2,408) in 2019-20 from Rs. 1,51,173 (US$ 2,210) in 2018-19, a growth of 12.14%. The NSDP increased at a CAGR of 12.59% from 2015-16 to 2019-20 Per capita GSDP increased at a CAGR of 11.93% between 2015-16 and 2019-20. Source: Ministry of Statistics & Programme Implementation 14
Economic snapshot – % distribution of GSDP In 2019-20, the services sector accounted for 41.80% in the total Visakhapatnam GSDP composition port trafficby (million sectortonnes) GVA of the state, followed by agriculture and allied (39.99%) and industry (18.21%). 100% 40.91% CAGR^ 41.80% 90% The agriculture and allied sector grew at the fastest rate at 15.89% between 2011-12 and 2019-20, followed by services sector (12.52%) 80% 12.52% and industry sector (6.27%). 70% The growth achievement for 2019-20 is significant, especially in the 60% 28.16% 18.21% context of global economic slowdown and other fallouts that affect 50% 6.27% the national economy and its attendant impact on the state as well. 40% 39.99% 30% 30.93% 20% 15.89% 10% 0% 2011-12 2019-20 AE Agriculture & Allied Industry Services Source: Ministry of Statistics & Programme Implementation 15
Economic snapshot – FDI inflow & investments FDI inflow in Andhra Pradesh in April 2000-March 2020 (US$ According to Department for Promotion of Industry and Internal Visakhapatnam port traffic (million tonnes) million) Trade (DPIIT), FDI inflow in Andhra Pradesh between April 2000 and 20000 19,196 March 2020 reached US$ 19.20 billion. 3,457 18000 727 16000 1,246 Between October 2019 and December 2020, FDI inflows in Andhra 14000 2,195 Pradesh stood at US$ 272.76 million. The state ranked 12th in India 1,556 12000 1,369 in terms of FDI inflows. 10000 678 1,159 8000 848 In January 2019, Asia Pulp & Paper decided to invest US$ 3.5 billion 6000 4000 for setting up of a greenfield pulp and paper plant in Prakasam 2000 district. 0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 FY20 FY01-FY11 FY01-FY20 In 2019, 139 investment intentions worth Rs. 18,823 crore (US$ 2.69 billion) were filed in Andhra Pradesh. In January 2020, 15 investment intentions worth Rs. 3,054 crore Investment intentions in terms of IEMs filed, LOIs / DILs issued (US$ 0.43 billion) were filed in the state. Year Number Proposed Investments (US$ billion) 2016 164 5.13 2017 154 4.54 2018 161 2.83 2019 139 2.69 2020* 15 0.43 Source: Department for Promotion of Industry and Internal Trade 16
Economic snapshot – Export trends Merchandise Export from Andhra Pradesh (US$ billion) Principal Commodities Exported in FY20 16.00 Marine Products 14.00 14.78 14.08 Drug Formulations, 12.00 13.02 13.17 14.56% Biologicals 12.14 11.94 Ship, Boat & Floating 10.00 Structure 8.00 11.06% Iron & Steel 47.59% 6.00 Rice (other than Basmoti) 4.00 9.15% Residual Chemical and 2.00 Allied Production 6.78% 0.00 Spices FY16 FY17 FY18 FY19 FY20 F21 (till January 4.06% Others 2021) 3.37% 3.42% Merchandise exports from Andhra Pradesh have increased to US$ 14.78 billion in FY20. In FY21 (until January 2021), it reached US$ 13.17 billion. Marine products is the largest export category of the state, accounting for ~14.56% of the total exports in FY21 (until January 2021). Note: MEIS - Merchandise Export from India Scheme Source: Directorate General of Commercial Intelligence and Statistics 17
PHYSICAL INFRASTRUCTURE 18
Physical infrastructure – Roads The total R&B road network (excluding NH roads) in the state in Road length (kms) Road Surface 2019-20 was 46,211.69 kms, comprising 13,500.445 kms of state (As of March 2019) highways, 32711.245 kms of major district road and rural roads. Cement & concrete 2,366.705 For 2020-21, the State Government has allocated Rs. 6,588.63 crore (US$ 934.69 million) as capital expenditure on transport, road, and Black top 48,463.888 buildings department in the state. The Government has initiated two projects with funding from New Metaled and unmetalled 2,266.709 Development Bank on cost sharing model of 70:30 - Andhra Pradesh Road and Bridges Reconstruction Project (APRBRP) and Andhra Pradesh Mandal Connectivity and Rural Connectivity Improvement Total roads 53,097.302 Project (APMCRCIP). A cumulative road length of 3,104 kms and 479 bridges will be covered under these projects. Under Andhra Pradesh Petroleum, Chemicals & Petrochemicals In February 2021, Union Minister for Road Transport and Highways Investment Region (AP PCPIR), construction of 40 km of national Mr. Nitin Gadkari approved a proposal to construct a six-lane highways, 42 km of state highways and nearly 75 km of major district Kantakapalle-Sabbavaram section of NH 130CD worth Rs. 824.29 roads is under planning and is expected to be completed in the next crore (US$ 111.1 million) and the development of a six-lane Korlam- 5 years. Kantakapalle section of NH 130CD worth Rs. 772.70 crore (US$ 104.2 million). In addition, approval was also provided for widening During the year 2019-20, 950 Km length of road is completed duly and strengthening four-lane of urban link of NH-42 in Ananthapur incurring an expenditure of Rs. 1126 crores (US$ 153.2 million). town worth Rs. 311.93 Crore (US$ 42.1 million) in the state. Source: Andhra Pradesh Socio Economic Survey 2019-20, NHAI, State Budget 2020-21 19
Physical infrastructure – Railways & metro rail The state is well connected through the rail network. Rail network across the state 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. In FY 2019-20, the Union Government has 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. In April 2020, the Amaravati Metro Rail Co (AMRC) was renamed as Source: Maps of India Andhra Pradesh Metro Rail Co. Ltd. (APMRC). In February 2021, Finance Minister Ms. Nirmala Sitharaman Groundwork for Vizag metro project with 140km-long mass rapid announced commencement of the Nadikudi-Srikalahasti railway transit system started in October 2020. The project is estimated to project. The Central government spared Rs. 1,144 crore (US$ 154.2 cost Rs. 22,000 crore (US$ 2.98 billion) and will be completed by million) to fast-track the project, which was only 15% complete since 2028. its launch in 2009. In November 2020, Alstom announced that it has successfully completed production of its 500th metro car at its ‘SriCity’ factory in Andhra Pradesh that manufactures ‘rolling stock’ (metro trains) for urban metro projects. Source: News Articles 20
Physical infrastructure – Airports Andhra Pradesh has six operational airports/air strips which connect major cities. Passenger traffic of 32.14 lakh was recorded between April 2019 and October 2019. 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 model, at an estimated cost of US$ 328.60 million & will cater to 6.3 million passengers a year. In 2019, existing runways at Vijaywada airport has been extended from 2,286 metres to 3,360 metres similarly, Rajahmundry airport extended from 1,750 metres to 3,165 metres. Andhra Pradesh Airport Statistics Parameter 2019-20 2018-19 2017-18 2016-17 Passenger traffic- Vijayawada airport 11,30,583 1,184,853 746,392 622,354 Passenger traffic-Visakhapatnam airport 26,81,283 2,853,390 2,480,379 2,358,029 Aircraft movement-Vijayawada airport 15,242 19,026 11,998 10,333 Aircraft movement-Visakhapatnam airport 20,935 23,695 19,595 19,550 Source: Airports Authority of India 21
Physical infrastructure – Ports Traffic handled by Visakhapatnam port reached 72.72 million tonnes Visakhapatnam port traffic (million tonnes) in FY20. 80.00 The State Government plans to develop a Greenfield Port at 75.00 70.00 72.72 Ramayapatnam in the state to meet the ever-increasing cargo 65.00 65.30 60.00 63.54 demand under the land-lord model with artificial deep harbour along 61.02 55.00 57.03 an open straight seacoast and protected by breakwaters. The 50.00 45.00 estimated cost for phase I is Rs. 3,736 crore (US$ 530 million). 40.00 35.00 30.00 The State Government had invited bids for development of 25.00 Bhavanapadu port in 2016. In August 2020, the state government 20.00 15.00 has approved the Detailed Project Report (DPR) of the Phase-1 10.00 5.00 work of Bhavanapadu Port in Srikakulam at an estimated cost of Rs. 0.00 FY16 FY17 FY18 FY19 FY20 3,669.95 crore (US$ 499.51 million). The project is expected to be completed by 2023 to 2024. In September 2020, Andhra Pradesh’s State Cabinet led by Chief In March 2021, Adani Group agreed to acquire a 31.5% stake in Minister, Mr. Y. S. Jagan Mohan Reddy, approved the Gangavaram Port from Warburg Pincus, a private equity firm, and is in discussion with its promoters to purchase their 58.1% interest. The Krishnapatnam port deal, paving way for Adani Ports and Special state government owns the remaining 10.4% stake in the port. Economic Zone Ltd. (APSEZ) to conclude the process to acquire a 75% controlling stake in Krishnapatnam Port Company Ltd. (KPCL) for an enterprise value of Rs. 13,572 crore (US$ 1.84 billion). Source: Ministry of Shipping, Indian Ports Association, News Articles 22
Physical infrastructure – Power In July 2020, the state government approved the Andhra Pradesh Installed power capacity (MW) Renewable Energy Export Policy 2020, which aims to attract private investments for establishing solar/wind/wind-solar hybrid projects on 25,500 a massive scale. 25,000 25,251.17 24,854.00 Under the policy, the renewable energy produced can be exported 24,500 to other states without any obligation to the state DISCOMs to 24,000 24,184.29 procure power as the DISCOMs have already exceeded the 23,500 Renewable Power Purchase Obligation (RPO). 23,000 22,933.77 As of March 2020, Andhra Pradesh had a total installed power 22,500 generation capacity of 24,854.00 MW. Out of the total, private utilities 22,298.30 22,000 contributed 15,800.75 MW, state utilities contributed 6975.18 MW 21,500 and central utilities contributed 2,078.08 MW. 21,000 In Budget 2020-21, the State Government announced plans to invest 20,500 2016- 2017- 2018- 2019- 2020- Rs. 6,984.73 crore (US$ 990.88 million) for the development of 21* 17 18 19 20 energy sector in the state. Government also plans to set up AP Green Energy Corporation with a mandate to install 8,000 MW to 10,000 MW of dedicated solar In September 2020, the Central Government released Rs. 3,300 power capacity. crore (US$ 447.88 million) loan to the Andhra Pradesh power sector under the second tranche of the ‘Atmanirbhar Bharat’ programme. Government of Andhra Pradesh has been saving upto 2,000 million units (MU) of power and about Rs. 1,000 crore (US$ 136.08 million) According to a survey conducted by Smart Power India (SPI), in annually for last three years by promoting energy efficiency initiatives association with NITI Aayog and the Rockefeller Foundation, on with an aim to conserve 15,000 MU of power by 2023. ‘electricity access and benchmarking of distribution utilities’, power utilities in Andhra Pradesh are among the top performers in the country. Note: ^Under Vision 2029, MW- Megawatt, * - Until January 2021 Source: Central Electricity Authority, News Articles 23
Physical infrastructure – Telecom Performance status of Bharat Net project (as of December 2018) Telecom Infrastructure (as of September 2020) No. of GPs in Phase-I 3,860 Wireless subscribers 86,965,757 Pipe laid (kms.)(July 2017) 2,627 Wireline subscribers 1,353,444 Internet subscribers (until June Optical Fiber Cable laid (kms) 4,268 61.12 2020) Service ready GPs (November 2020) 1,675 Tele-density (in %) 97.82 According to Telecom Regulatory Authority of India (TRAI), Andhra Pradesh* had ~86.97 million wireless subscribers and 1.35 million wireline subscribers by September 2020. As of September 2020, the overall tele-density in the state stood at 97.82%. By the end of August 2020, 42.31 million subscribers had submitted requests for mobile number portability in the state*. Note: *Including Telangana Source: Telecom Regulatory Authority of India, India Post BSNL: Bharat Sanchar Nigam Limited 24
Physical infrastructure – Urban Classification of AMRUT Cities in Andhra Pradesh on the basis Smart City indicators (Census 2011) of population (Census 2011) Number of AMRUT cities with population City Population Literacy rate Area (sq. km) 30 less than 1 million Visakhapatnam 1,728,128 81.79 % 544 Number of AMRUT cities with population 3 in the range of 1 - 10 million Kakinada 312,538 80.62 % 30.51 Number of AMRUT cities with population 0 greater than 10 million Tirupati 287,482 86.97 % 27.44 Total number of AMRUT cities 33 Amaravati 5,180,000 88.23 % 217.23 The State Government is expediting work for the development of Amaravati, the state’s future capital. During FY20, 40,481 houses were completed with an expenditure of Rs. 678.26 crore (US$ 96.22 million). Government has planned to construct 25 lakh houses (14 lakh in rural areas and 11 lakh in urban areas) in the next 4 years as a part of “Navaratnalu” with an estimated total project cost of Rs. 1,000 crore (US$ 8.30 billion) to provide Pucca houses to all eligible. 15 lakh houses will be provided in FY 2020-21. Other proposed plans include: To provide house sites to all the poor and needy and register land, along with the house on the name of women. Allot sites and facilitate to provide loans under Pavala Interest through banks and other financial agencies for the amount required over and above unit cost. The government has already taken steps for acquiring land and has also proposed to distribute house site pattas to 25 lakh beneficiaries in July 2020. Source: Andhra Pradesh Socio Economic Survey 2019-20, State Budget 2020-21 25
SOCIAL INFRASTRUCTURE 26
Social infrastructure – Education Enrolment of students in all types of schools, Classes Number of schools (2019-20) Classes 2019-20 (in 000s)) Primary 39,774 I–V 3,795 (I-VII/VIII) 9,685 (I-XII) 218 VI-VIII 2,137 (VI-XII) 236 IX-X 1,342 (I-X) 2,299 Total 7,274 (VI-X) 10,306 Andhra Pradesh has a literacy rate of 67.4 per cent, as per Census 2011. The government is committed to achieve 100% literacy by 2020 and several schemes have been initiated for bringing out both quantitative and qualitative improvement. The government provides schooling facility to 72.74 lakh children. 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. Under State Budget 2020-21, Government allocated Rs. 3,000 crore (US$ 425.59 million) to Manabadi Nadu-Nedu scheme, under which 15,715 Government schools have been identified in the first phase for improving infrastructural facilities. In State Budget 2020-21, Rs. 22,604 crore (US$ 3.21 billion) has been allocated for secondary and intermediate education and Rs. 2,277 crore (US$ 323.02 million) for higher education. In September 2020, the state government announced plans to install 45,000 smart televisions in government schools in order to bridge the gap between private and public schools. In February 2021, the state government announced completion of the first-phase of ‘Nadu-Nedu’—a scheme launched by the state government to take up basic infrastructure works—covering 15,700 schools, with the cost being Rs. 2,570 crore (US$ 346.45 million) Source: Directorate of Intermediate Education, Andhra Pradesh Socio Economic Survey 2020-21, State Annual Budget, 2020-21 27
Social infrastructure – Health Medical Facilities (May 2020) Health indicators (SRS Bulletin 2019) 1 Sub-centres 7,459 Birth rate 16.0 2 Infant mortality rate 29 Primary health centres 1,533 1 Death Rate 6.7 Community health centres 215 Major hospitals Sub District hospitals 47 Apollo Hospital Care Hospital District hospitals 26 Manipal Hospital Krishna Institute of Medical Sciences Total 9,280 As of May 2020, the state had 1,533 primary health centres, 7,459 sub centres, 47 sub-district hospitals and 26 district hospitals. The State Government allocated Rs. 470.29 crore (US$ 66.72 million) for expansion of 108 and 104 services in the state. In October 2019, Government launched Kanti Velugu programme with an objective of universal eye screening and provision of appropriate interventions. In State Budget 2020-21, Rs. 20 crore (US$ 2.84 million) has been allocated for the programme. An allocation of Rs. 11,419.44 crore (US$ 1.62 billion) has been proposed by the State Government for healthcare sector in the state under the State Budget 2020-21. In October 2020, the Andhra Pradesh government announced its plan to spend Rs.17,300 crore (US$ 2.34 billion) to revamp the existing government hospitals and set up 16 new medical colleges under the ‘Nadu-Nedu’ initiative. In February 2021, the state government approved seven new ESI (Employees’ State Insurance) hospitals. Of these, construction of a 100-bed ESI hospital in Vizianagaram is estimated to be complete by March 2023. Note: 1Per thousand persons, 2Per thousand live births Source: Andhra Pradesh State Budget 2020-21, Andhra Pradesh state portal, SRS Bulletin 1Per thousand persons, 2Per thousand live births, News Articles 28
INDUSTRIAL INFRASTRUCTURE 29
Industrial infrastructure…(1/2) In 2019-20, 44 large and mega industrial projects were established Logistics Infrastructure in Andhra Pradesh with an investment of Rs. 22282.16 crore (US$ 3.03 billion), providing employment to 18,385 people Andhra Pradesh has identified development of MSMEs as a catalyst for job creation and balanced regional development. In line with the plan, the government has introduced the MSME policy 2015-20 to provide a holistic framework for sustainable development of MSMEs in the state and make them globally competitive. In 2019-20, 10,019 Micro, Small and Medium Enterprises were established with an investment of Rs. 2979.86 crore (US$ 401.91 million), providing employment to 76,716 people. It is planned to continue to focus on MSME during 2020-21. In September 2020, the state government stated that it is conducting a comprehensive survey to provide required infrastructure to industries in the state. In October 2020, Kinetic Green, an electric vehicles manufacturer, announced plans to set up a manufacturing facility for electric golf carts and a battery swapping unit in Andhra Pradesh. These two projects will entail an investment of Rs. 1,750 crore (US$ 236.27 million). Source: APIIC, Andhra Pradesh State Budget 2020-21, Andhra Pradesh Socio Economic Survey 2020-21 30
Industrial infrastructure…(2/2) Andhra Pradesh was home to 20 operational SEZs, 32 SEZs with formal approvals, four SEZs with in-principle approval and 27 notified SEZs, as of February 2020. 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 E-Bonangi Villages, Parawada Ramky Pharma City (India) Pvt. Ltd. Pharmaceuticals Mandal, Visakhapatnam District Andhra Pradesh Industrial Infrastructural Corporation Madhurawada Village, Visakhapatnam IT/ITES Ltd.(APIIC) Andhra Pradesh Industrial Infrastructure Corporation Atchutapuram and Rambilli Mandals, Multi-product Limited (APIIC) Visakhapatnam Ace Urban Hitech City Limited (Formerly L&T Hitech City Keesarapalli Village, Gannavaram IT/ITES Limited) Mandal, Krishna District, Hetero Infrastructure Pvt. Ltd. Nakkapalli Mandal, Visakhapatnam Pharmaceuticals Mas Fabric Park (India) Pvt. Ltd Chillakru Mandal, Nellore District Textile and apparel Duppituru, Doturupalem Maruture and Brandix India Apparel City Private Limited Textile Gurujaplen Villages in Visakhapatnam Source: Department of Industries, Government of Andhra Pradesh 31
KEY SECTORS 32
Key industries – Drugs and pharmaceuticals Andhra Pradesh is home to many global & national pharma players; Andhra Pradesh drugs and pharmaceutical export various companies have set up their manufacturing hubs in (US$ billion) Visakhapatnam & Srikakulam districts. 3 Pharmaceutical exports from the state stood at US$ 1.48 billion in 2019-20. In September 2020, Andhra Pradesh Industrial Infrastructure 3 Corporation Ltd. (APIIC) signed an MoU with CSIR-IICT, a premier 2.50 R&D institute in the country to set up a bulk drug pharma park in the state. 2 Speaking on the occasion, Special Chief Secretary (industries) Mr. Karikal Valaven stated that AP is heading to become the leader of the bulk drug market in the country. 2 In February 2020, Novartis has launched Biome India, a digital 1.48 1.46 innovation hub, in Hyderabad. This is the company’s first such centre 1.40 1.41 in Asia and the fourth globally. 1 1.15 On September 2, 2020, the Andhra Pradesh Industrial Infrastructure Corporation Ltd. (APIIC) signed a memorandum of understanding (MoU) with the Council of Scientific and industrial Research-Indian 0.65 1 Institute of Chemical Technology (CSIR-IICT) to set up a bulk drug park (BDP) in the state. The park will be set up in 2,000 acres at a cost of Rs. 6,940 crore (US$ 941.55 million) in the East Godavari District of Andhra Pradesh. 0 FY15 FY16 FY17 FY18 FY19 FY20 FY21* Note: * till January 2021 Source: Andhra Pradesh IT department, News articles, Andhra Pradesh Socio Economic Survey 2020-21, Directorate General of Commercial Intelligence and Statistics 33
Key industries – Agriculture and allied industries…(1/2) The presence of rich climatic and soil conditions make Andhra Area under production Crop production Pradesh a major agricultural belt. The state ranks first in area and Crop ‘000 Ha ‘000 tonnes production of fruits and spices in the country. (2018-19)* (2018-19)* Few of the leading crops produced in the state include rice, chilly, oilseeds, cotton, pulses and gram. Paddy 2,209 12,370 Jowar 156 354 The total production of foodgrains increased to 180.54 lakh metric tonnes in 2019-20 from 149.5 lakh MT in 2018-19. The average five- Bajra 22 22 year production stood at 159.3 lakh MT (2014-2018). The achievement is despite the fact that there is no increase in the extent Maize 267 1,565 of the land cultivated. Ragi 34 43 Under State Budget 2020-21, Rs. 11,891.20 crore (US$ 1.69 billion) Other millets has been allocated to the agriculture sector. 12 6 including wheat On September 7, 2020, the state government signed MoUs with the Pulses 1,326 752 Netherlands government and seven companies in food processing, marketing and technologies to benefit horticulture and aquaculture Total food grains 4,026 15,112 farmers across the state. Groundnut 759 477 YSR Rythu Bharosa scheme is one of the prestigious government Castor 35 15 flagship schemes designed for farmers welfare, providing financial assistance to farmers and making farming a remunerative Sesamum 48 15 profession. Total Oilseeds 963 2,493 However, the state faces a challenge with a number of suicides involving farmers increasing to 1,029 in 2019 from 664 in 2018. Vegetables 718.91 17,614.67 Fruits 259.83 7,091.37 Note: P - Provisional, * - As per 4th Advance Estimates Source: MPEDA, APEDA, Andhra Pradesh Economic Survey 2019-20 34
Key industries – Agriculture and allied industries…(2/2) Andhra Pradesh Fish and Prawn Production (million tonnes) Andhra Pradesh Marine Product Export (US$ million) 5 3,000 4 4.18 2,500 2,680.14 2,753.13 3.99 4 3.44 3 2,000 1,932.43 1,918.11 3 2.77 1,500 2 2.35 2 1,000 1,114.39 1 500 1 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2016-17 2017-18 2018-19 2019-20 2020-21* On September 20, 2020, Mr. S Appala Raju, Minister for Fisheries, Government of Andhra Pradesh announced that Andhra Pradesh stands in the first place for production of fish and prawns with 71% in aqua production. He also added that the state government has extended a subsidy of Rs. 750 crore (US$ 101.16 million) to aqua farmers towards power supply. Andhra Pradesh was ranked first in egg production, fourth in meat production, and fourth in milk production in the country during 2018-19. It is also home to a thriving fisheries industry and employees about 1.45 million people and contributes 36% of the total value of sea food export from the country. The state produced 4.18 million tonnes of fish and prawn in 2019-20 compared with 3.99 million tonnes produced in 2018-19. The state’s exports of marine products increased to US$ 2,753.13 million in 2019-20 and reached US$ 1,918.11 million in 2020-21 (until January 2021). Note: * – till January 2021 Source: Andhra Pradesh Economic Survey 2019-20, Directorate General of Commercial Intelligence and Statistics 35
Key industries – Petroleum, chemicals and petrochemicals According to the Director General of Hydrocarbons (DGH), Andhra Production of crude oil and natural gas Pradesh has huge oil and natural gas reserves. The state’s Krishna- 1,200 Godavari basin, spread over an area of nearly 52,000 sq km, has a total hydrocarbon resource base of 1,130 million metric tones. 1,077.00 1,000 Production of crude oil and natural gas in the state was recorded at 959.00 216.51 thousand metric tonnes and 847.00 MCM during 2019-20, 853.00 800 847.00 respectively. To promote investments in the industry, Andhra Pradesh Petroleum, 600 Chemicals & Petrochemicals Investment Region (PCPIR) is being set up. The projects is coming up over an investment area of 603 400 square km and will boost refining, petrochemicals, chemical and 322.00 286.90 manufacturing sectors in the state. 276.00 200 216.51 0 2016-17 2017-18 2019-20 2018-19 Crude Oil Production ('000 MT) Natural Gas Production (MCM) Note: MCM – Million Cubic Metres Source: Ministry of Petroleum and Natural Gas, News articles, Andhra Pradesh Petroleum, Chemicals and Petrochemicals Investment Region, India Bureau of Mines 36
Key industries – Tourism Andhra Pradesh is known for its pristine beaches, sacred places of Domestic tourist arrival in Andhra Pradesh (in million) worship, lush green forests, spicy cuisine & hospitable people. The state continued to witness increase in domestic tourist arrivals over the last few years. 250 Andhra Pradesh has 13 wildlife sanctuaries and 3 National Parks 236.55 covering an area of 8139.89 sq. km., which is 21.87% of the state’s forest area and 4.99% of the state’s geographical area. 200 The government has started eco-tourism initiatives by creating new 194.77 community-based Eco-Tourism Centres and strengthening the existing eco-tourism centers by involving local tribes. 165.43 In the first week of September 2020, the state’s Minister for Culture, 150 153.16 Tourism and Youth Advancement, Mr. Muttamsetti Srinivasa Rao announced opening of the state for tourism activities such as ropeway, boating, adventure sports, museums and protected monuments including forts, heritage structures and other tourist destinations. 100 In 2019, domestic tourist arrivals in the state stood at 195.8 million, while foreign tourist arrivals stood at 0.23 million. The tourism sector incurred a loss of >Rs. 50 crore (US$ 6.79 million) 50 in the past five months due to the coronavirus pandemic. However, tourism activities resumed as per the ‘Unlock-4’ guidelines in 28.27 September 2020. In September 2020, The Andhra Pradesh government issued the ‘AP 0 2020* 2016 2017 2018 2019 Tourism Trade (Registration and Facilitation) Guidelines, 2020’ to position the state as a premier tourist destination by improving the standard of services. Under State Budget 2020-21, the Government of Andhra Pradesh allocated Rs. 273.66 crore (US$ 38.82 million) for Youth Advancement, Tourism, and Culture department. Note: *- till May 2020 Source: Ministry of Tourism, Government of India; News articles AP State Portal, Budget 2020-21 37
KEY PROCEDURES AND POLICIES 38
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
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
Contact list Agency Contact information 4th Floor, Parisrama Bhavan Fateh Maidan Road, Basheerbagh Hyderabad – 500 004 Andhra Pradesh Industrial Infrastructure - Phone: 91-40-2323 7622, 2323 7623 Corporation Fax: 91-40-2323 3251, 2323 1459 E-mail: hyd@apiic.in Website: www.andhra.apiic.in Industries and Commerce Department 2nd Floor, D Block, Room No-348A Secretariat Hyderabad - 500022 Department of Industries and Commerce Phone: 91-040-23454449 Fax: 91-040-23452985 E-mail: secy_inds@ap.gov.in Website: http://industriesportal.apcgg.gov.in 41
Key approvals required…(1/3) Approvals and clearances required Departments to be consulted Estimated time taken (days) Registration, Industrial Entrepreneurs Memorandum (IEM), Industrial Licenses 7 days Registrar of Firms Allotment of Land/Shed in Industrial • 7 days for up to 1,000 sq m Andhra Pradesh Industrial • 21 days for above 1,000 sq m Estates or Industrial Areas Development Corporation Acquisition and alienation of Chief Commissioner of Land Government lands 45 Days Administration (CCLA) Building/Site Permission / Approval/License from Municipality/ Department of Municipal UDA (Urban Development Authority) DT Administration & Urban 7 Days & CP (Directorate of Town & Country Development Planning) Building /Site Permission from Gram Department of Panchayati Raj & 15 days / Deemed Panchayat Rural Development Approval of change of land use for Land Administration If in Master Plan - 10 days Industrial purpose Department of If not in Master Plan - 21 days Revenue Consent for establishment under • Green: 7 days Pollution Control AP Pollution Control Board • Orange: 15 days • Red: 21 days Source: Commissionerate of Industries, Government of Andhra Pradesh 42
Key approvals required…(2/3) Approvals and clearances required Departments to be consulted Estimated time taken (days) No-Objection Certificate for Fire Safety Directorate of Fire Services 15 days Department of Home • Permission for Establishment of Distillery • Licence for possession and use of Prohibition & Excise • 30 Days Rectified Spirit Department of • 21 Days • Licence for possession and use of Revenue • 21 Days Denatured Spirit VAT/CST registration Commercial Tax Department of 3 Days Revenue • 7 Days • Power feasibility • To be based on the length of the DISCOM-Department of Energy • Power connection HT line Directorate of Factories • Approval of factory plans Department of Labor Employment 7 days / Deemed for • Factory license Training and Factories Registration only • Approval for water supply from ULB s- MA & UD Department Department of Municipal 7 Days • Water connection Administration & Urban 21 Days Department Permission to draw water from river/public tanks, Irrigation & CAD Department Permission to dig new wells Irrigation & CAD Department 15 Days from Ground Water Department Source: Commissionerate of Industries, Government of Andhra Pradesh 43
Key approvals required…(3/3) Approvals and clearances required Departments to be consulted Estimated time taken (days) License for manufacture of ayurvedic, homeo, siddha, unani AYUSH-Department of Health, Medical & Family Welfare 15 days Drug Control Administration License for manufacture of bulk Department of Health, Medical & 15 days drugs / formulations / cosmetics Family Welfare Registration & Stamps Registration of partnership firms 3 days Department of Revenue Commercial Tax Department of Registration under professional tax Spot approval Revenue Commissionerate of Labor - Registration of shops & establishments Department of Labor Employment Spot approval Training and Factories Directorate of Boilers Department Boiler registration of Labor Employment Training and 15 Days Factories Registration of plastic manufacturers / AP Pollution Control Board 15 Days recyclers License for storage of petroleum, diesel District Collector/ Civil Supplies Department 15 Days and Naptha Source: Commissionerate of Industries, Government of Andhra Pradesh 44
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 Metropolitan Area: 9.1 Electricity (US cents per kWh) 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 topped the 2017 Ease of Doing Business Index, prepared by the World Bank and DPIIT. Source: Vijayawada Municipal Corporation, Visakhapatnam Industrial Water Supply Company, Property Sites, News articles, Travel sites, PwC report, Andhra Pradesh State Electricity Board 45
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 1 IoT market by 2020. • In IoT verticals, direct employment for at least 50,000 people and to create opportunities related to employment in IoT space for educated youth of the state. Read more Industrial Development Policy 2015-2020 • To ensure sustainable & inclusive industrial growth and be among the top 3 states in terms of industrial 2 investments by 2022 • 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. Read more Textile, Apparel and Garments Policy 2018-23 • To attract new investments in value added textile activities worth Rs. 15,000 crore (US$ 2.24 3 billion) by 2023. • To convert the major portion of yarn produced in the state into fabric and garment’s within the state. Read more Andhra Pradesh Solar Power Policy 2018 4 • 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. Read more Andhra Pradesh Wind Power Policy 2015 • The new policy would replace the existing policy in order to attract new investments and 5 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 Read more 46
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 6 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. Read more Food Processing Policy 2015-2020 7 • 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. Read more Andhra Pradesh Single Desk Policy 2015-20 • To create a conducive ecosystem to provide all clearances required to setup industry within 21 8 working days. • To provide spot and deemed approvals based on self-certification and to provide parallel processing of streamlined processes. Read more New Tourism Policy-2015-20 9 • 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. Read more Biotechnology Policy - 2015-20 10 • 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. Read more 47
State acts and policies…(3/4) Innovation & Start-up Policy 2014-2020 • To provide special incentives and facilities for the electronic hardware sector in line with the 11 present ICT policy. The policy would cover areas such as industrial electronics, communication & broadcast equipment, computers & peripherals, and strategic electronics & components (semiconductors, solar & displays). Read more Andhra Pradesh Cyber Security Policy 2017 12 • To create a robust cyber ecosystem in Andhra Pradesh • Establishment of a Cyber Security framework and strengthening law enforcement agencies Read more Andhra Pradesh Electronics Policy 2014-2020 13 • 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 Andhra Pradesh Port Policy 2015 14 • 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. Read more Andhra Pradesh Fisheries Policy 2015-20 15 • To double the production and export of shrimp and fish to 4.2 million metric tons and US$ 2.4 Billion respectively. Read more 48
State acts and policies…(4/4) Industrial Development Policy 2020-23 16 • To focus on reducing the cost of doing business and supporting MSMEs to achieve scale and improve competitiveness. Read more Andhra Pradesh State Mega Seed Park Policy, 2018 17 • 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. Read more Designated Technology Parks (DTP) Policy, 2017-2020 18 • 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. Electric Mobility Policy- 2018-2023 • To attract investments worth Rs. 30,000 crore (US$ 4.47 billion) in manufacturing of electric 19 vehicles (EVs) in the next five years and create 60,000 jobs • To replace public transport buses in four cities to electric buses by 2024 and across the state by 2030. Animation, Visual Effects, Gaming and Comics (AVGC) Policy 2018-2020 20 • 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. 49
APPENDIX 50
Sources Data Sources GSDP (state) Economic Survey 2019-20 (Andhra Pradesh) Per capita GSDP figures Economic Survey 2019-20 (Andhra Pradesh) GSDP (India) Ministry of Statistics and Programme Implementation Installed power capacity (MW) Central Electricity Authority Wireless subscribers (No) Telecom Regulatory Authority of India Internet subscribers (million) Telecom Regulatory Authority of India National highway length (km) NHAI, Roads and Building Department-Government of India 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 for Promotion of Industry and Internal Trade Operational PPP projects (No) DEA , Ministry of Finance, Government of India Operational SEZs (No) Ministry of Commerce & Industry, Department of Commerce 51
Exchange rates Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year) Year Rs. Rs. Equivalent of one US$ Year Rs. Equivalent of one US$ 2004-05 44.95 2005 44.11 2005-06 44.28 2006 45.33 2006-07 45.29 2007 41.29 2007-08 40.24 2008 43.42 2008-09 45.91 2009 48.35 2009-10 47.42 2010 45.74 2010-11 45.58 2011 46.67 2011-12 47.95 2012 53.49 2012-13 54.45 2013 58.63 2013-14 60.50 2014 61.03 2014-15 61.15 2015 64.15 2015-16 65.46 2016 67.21 2016-17 67.09 2017 65.12 2017-18 64.45 2018 68.36 2018-19 69.89 2019 69.89 2019-20 70.49 2020 74.18 2020-21 72.59 2021* 73.69 Note: As of February 2021 Source: Reserve Bank of India, Average for the year 52
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