INDIAN STATE : ANDHRA PRADESH

General Information

Andhra Pradesh located strategically in the central region of the Indian sub-continent has a large part of the generic Indian floral and faunal representation. The state has a large river system which supplements the rainfall in the state. The total surface water of entire river systems across the state is estimated at 2,764 TMC at 75% dependability. Andhra Pradesh is bordered on the south by Tamil Nadu state, on the west by Karnataka state, on the north and northwest by Maharashtra state, on the northeast by Madhya Pradesh and Orissa states, and on the east by the Bay of Bengal. The northern area of Andhra Pradesh is mountainous. The highest peak Mahendragiri rises 1500 m above the sea level. The climate is generally hot and humid.The capital city of the state is Hyderabad, which is cosmopolitan, convenient and accessible.

Andhra Pradesh state is endowed with bountiful natural and human resources.The state has a total geographical area of 27.50 million hectares accounting for 8.37% of the country's area. Andhra Pradesh is situated in a tropical region and has the second longest coastline of 974 km in the country, indicating rich potential for marine fisheries. The state is ranked fourth largest in the country in terms of area and has a projected population of 84 million. The state has a rich and diverse forest area having wide and varied vegetation types enriched by a variety of flora and fauna.

Geographic Information

Economic Infrastructure

Roads

The total road network in the state was 69,051 Kms during the year 2009. Of this, the National Highways constitute 4,648 Kms, the State Highways constitute 10,519 Kms and major district roads constitute 32,170 Kms and rural roads 21,714 Kms. The density with reference to Road & Bridges road network in the state is 0.23 Kms per one square kilometer and 0.86 Kms per 1,000 persons.The surface details of the road length are Cement Concrete (CC) roads 2,854 Kms; BT roads 31,502 Kms, Water Bound Macadam (WBM) roads 22,284 Kms and Gravel 72,677 Kms.

During the year,2009, there are 17 National Highways in the State covering a length of 4727 Kms, of which four-lane and above are 2045 Kms, two-lane are 2340 Kms and intermediate lane are 123 Kms and 240 Kms is single lane. The density of National Highways is 6.202 Kms per lakh population in the state and in terms of area coverage a length of 17.186 Kms is available for every 1,000 Sq. Kms in the state. The corresponding figures at all India level are 6.40 Kms and 19.95 Kms respectively.

National Highways Development Project (NHDP): The National Highway No.5,7 and part of 9 are taken up for development of four-lane roads in the State. The total length of the roads taken up for development is 1,834 Kms. The 'Golden Quadrilateral' covering a length of 1,062 Kms is completed. The construction of roadwork named as 'North- South Corridor' covering a length of 772 Kms is under progress and so far a length of 59 Kms is completed.

In phase-III of NHDP, 519.50 Kms length of National Highways is proposed for widening into four-Lane on the basis of Build, Operate and Transfer (BOT) model. The road works proposed under this model are: Hyderabad-Vijayawada-Machilipatnam on NH-9 of length 241.0 Kms, Kadapa-Mydakur-Kurnool on NH-18 of length 192.5 Kms, Hyderabad-Yadagirigutta on NH-202 of length 30.0 Kms and Tirupathi-Tiruthani-Chennai on NH-205 of length of 56.0 Kms.

Port connectivity: The Port connectivity road of length 12 Kms and other projects of road length 58 Kms are completed.

Airports

The Rajiv Gandhi International airport at Hyderabad, was inaugurated on 14th March, 2008 and commenced operations from 23rd March, 2008. The new airport was opened to the public, pursuant to the notification issued by the Ministry of Civil Aviation to launch operations. With the new Greenfield airport starting full-scale operations, the existing airport at Begumpet has been closed for civil aviation operations.The new airport has been developed by GMR Hyderabad International Airport Limited (GHIAL), a joint venture company promoted by GMR Group (63%) and Malaysia Airports Holding Berhad (11%), Government of Andhra Pradesh (13%) and Airports Authority of India (13%) as the other consortium partners.

The airport is strategically located providing excellent opportunity to develop it as a hub for domestic and international passenger and cargo traffic. The futuristic airport reflects the long term vision to build it as a major domestic and international hub. Hyderabad is centrally located and within a two hour flying time to all the major cities in India and 4 hours from major cities in the Middle East and South East Asia. The city has the potential not only to become one of the main hubs in India while also handling traffic between the East and West.

The Hyderabad airport has registered an overall Compound Annual Growth Rate (CAGR) of 18.9% during 2001-02 to 2008-09 with international at 25.4% and domestic at 10.9%. The year 2008-09 has shown 12% increase in the overall volumes of freight handled with international at 38% and domestic at -12%.

Railways

Andhra Pradesh offers effective rail connectivity to all major cities of the country for the transportation of goods traffic such as Coal, Iron ore, Cement, Food grains, Fertilizers, Minerals, Petroleum products and general merchandise.

The South Central Railway is headquarterd at Secunderabad with divisional headquarters at Secunderabad, Hyderabad, Guntakal, Vijayawada, Nanded and Guntur serving the area falling under Andhra Pradesh, Parts of Maharashtra, Karnataka, Madhya Pradesh and Tamil Nadu.

The Government of Andhra Pradesh has outlined the Mass Rapid Transport System (MRTS) to address the problem of vehicular congestion and provide an efficient mode of transportation. The Multi Modal Transport System (MMTS) of Hyderabad covers 43 Kms of suburban route with facilities such as passenger concourse areas, platforms, booking counters, washrooms and signage have been created very aesthetically and in a passenger friendly manner.

The Hyderabad Metro Rail Project is also being taken up to meet the movement of commuters in the Greater Hyderabad. Government of India has approved the project and detailed DPR is being prepared. The project will be promoted in the lines of Delhi Metro.

Power

The present installed capacity in the State up to the end of September,2009 (including share from Central Sector) is 13,986.89 MW. The energy available from various sources for use during 2009-10 (up to 9/2009) was 36,489.63 MU. The number of consumers served has increased from 20.68 million to the end of March,2009 to 21.23 million to the end of September,2009. The per capita consumption has reached 746 kWh during 2008-09.3,880 sub-stations and 6,93,584 distribution transformers are existing upto end of September, 2009.

To meet the growing demand for power, the Government is constructing projects in State sector and encouraging private sector to implement gas based and other projects. During 10th five-year plan, 2940 MW capacity was added to the system. Out of 2940 MW, 824 MW is under State Sector, 1355 MW is under Central sector, 428 MW is under private sector (gas based projects) and 333.05 MW are Non Conventional Energy projects and others.

It is programmed to add 5582.44 MW during 11th five year plan i.e. 2007-12, out of which 3053 MW is under State sector, 769.23 MW is under Central sector, 1129 MW is under private sector (Gas based projects), and 631.21 MW are non-conventional energy projects.

Ports

Andhra Pradesh is having 974 kms. long coast line with one major Port at Visakhapatnam under Government of India and 13 non-major ports under state Government.Ports offer tremendous potential for development and for the growth of a wide spectrum of maritime activities such as international shipping, coastal shipping, ship repairs, fishing, captive ports for specific industries, all weather ports, tourism and sports etc.Recent trends show that India's trade is growing especially in dry bulk cargo traffic with China and Asian countries, leading to a substantial increase in cargo from the East Coast.

Kakinada Anchorage Port:The Anchorage Port is a sheltered Port with the location of 17 Kms. length of Hope Island. Anchorage Port handles about 150 to 200 sea going ships every year. There are about 100 private owned steel barges with a total capacity of 3,000 Tonnes employing 2,000 persons. About 3,000 workers are working as shore labour and stevedoring labour in the ships. The cargo handled in Anchorage Port was 0.48 million tonnes during 2009-10 i,e., upto 30.09.2009 and earned revenue of US$ 1.24 million. During this financial year, it is programmed to handle 2.5 million tonnes.

Kakinada Deep Water Port:The Deep water berths developed by the Government were privatized in 1999 and handed over to M/s. International Sea Ports Ltd., for Operation and Maintenance for 50 years. For this purpose, a Special Purpose Vehicle (SPV) called M/s. Kakinada Seaports Limited (KSPL) was created for operating and maintaining the Port. They have been operating the Port for the last 10 years.

Rawa Port: The Port is located in East Godavari District having an off shore single buoy mooring system for collecting off shore oil from 6 Nos. of oil rigs on the Rawa basin and pump the same into the oil tankers for transporting to other Ports.

Gangavaram Port:The Port is located in Visakhapatnam district. It is being developed with private participation as a multipurpose all weather port to become the deepest port (21m) with round the clock operations and with state-of-art cargo handling equipment. It would also be the most environment friendly port.

Krishnapatnam Port:This port is in Nellore District and this 1st greenfield port is being developed by Krishnapatnam Port Company Ltd.,(KPCL) on Build, Operate, Share and Transfer (BOST) basis under PPP over a period of 30 years.

Guidelines for Port Privatisation

The Government of Andhra Pradesh formulated an open policy with a view to encourage private sector participation in port development. The private sector is invited to design, build, finance, operate and manage the ports based on their technical feasibility, projections for traffic and planned investments.

Incentives and Assistance

• The investors would be free to fix their own tariff for various port services without determent to the development of the port in shorter/longer periods.
• Concessionaire will be declared as the Port conservator as per Indian Ports Act-1908.
• The investors would also be given complete freedom to follow their own personnel and employment policy without being governed by the rules and practices in other Indian Ports.
• Government will assist in acquisition of land on payment by the investor. Wherever port land is available, it will be provided to the parties at the rates prescribed by the Government.
• Land required for those industries which need to be located close to a port to take advantage of bulk handling of their materials/products, can be acquired on the basis of feasibility report made by the investor. If the investor wants to own the land and lease out to industries, such land can be acquired on market price under Land Acquisition Act.
• Government will give all possible help in obtaining fresh water and power supply to investors.
• In regard to other incentives for port based industries that are going to be setup, whatever incentives that are available as on date as per the Government policy will be extended.
• Concession fee os 2.5 % of gross income per annum is payable to Govt in case of Greenfield Ports.
• Wherever feasible Captive Jetties/Captive Ports will be permitted.
• Suo-moto proposals for development of any Port project or Port facility will be entertained subject to treatment of the proposals under Swiss challenge.
• Exemptions on Sales tax, seigniorage charges, Stamp duty etc will be considered on case to case basis depending on unviability of the project.

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Social Infrastructure

Education

The literacy rate of the state is 60.47 in 2001 as against 44.08 in 1991. The literacy rate of the state is lower than that of all India literacy rate at 64.84. While the overall literacy rate has improved, the male literacy rate has increased from 55.1 to 70.32 per cent. What is encouraging is that the female literacy rate has gone up by more than 54 percent, i.e. from 32.7 percent in 1991 to 50.43 percent in 2001.

School Education

Government of Andhra Pradesh intends to achieve the goal of Universalization of Elementary Education by recognizing Education as a potential instrument for Human Development. The primary goal of the state is to increase the overall literacy levels steadily. During 2008-09, in the Elementary Education sector there were 65,609 Primary Schools and 14,942 Upper Primary schools and under Secondary Education, there were 17,376 High Schools and 100 Higher Secondary schools. There was enrolment of 13.66 million in the state as on 30-09-2008 in all types of schools in the state.

Intermediate Education

There are 4,611 Junior Colleges under different managements. Vocational courses are offered exclusively in 479 Private Junior Colleges and 12 Govt. Junior Colleges.

Collegiate Education

There are 249 Government Degree Colleges and 179 Aided Degree Colleges in the state with a strength of 3,64,726 students.

Technical Education

There are 656 Engineering Colleges, 703 MCA Colleges, 881 MBA Colleges, 278 B.Pharmacy Colleges, and 213 Polytechnics functioning in the state (includes 370 MCA and 224 MBA stand-alone colleges). The intake of the students is 2,26,870 in engineering courses, 47,595 in M.C.A courses, 59,676 in MBA courses, 16,675 in Pharmacy, and 63,075 in Polytechnics.

Universities and Centres of Excellence

The State of Andhra Pradesh has an excellent presence of a number of renowned universities,training and Research and Development institutes.

Universities

• Osmania University,
  
• Nagarjuna University
  
• Shri Krishnadevaraya University
  
• Shri Venkateswara University
  
• Dr.B.R.Ambedkar Open University
  
• JNT University
• Andhra University
  
• Kakatiya University
  
• Central University of Hyderabad.

Training institutions

• Indian Institute of Information Technology
• Indian School of Business
  
• International Institue of Information Technology
  
• National Institute of Fashion Technology

Research and Development Centres

• Centre for Cellular and Molecular Biology ( CCMB).
  
• Indian Institute of Chemical Technology ( IICT).
  
• International Crop Research Institute for Semi-arid Tropics ( ICRISAT).
  
• Defence Research Development Organization ( DRDO).
  
• National Remote Sensing Agency ( NRSA).
  
• Defence Metallurgical Research Institute ( DMRI).
  
• Central Institute of Tool Design ( CITD).
  
• Defence Electronics Research Laboratory ( DERL).
  
• Central Power Research Institute ( CPRI).
  
• Central Food Technology Research Institute ( CFTRI)
  
• Central Institute of Plastic Engineering and Technology ( CMET).
  
• National Academy of Construction ( NAC).
  
• National Informatics Centre ( NIC).
  
• Indian Institute of Information Technology ( IIT).
  
• Administrative Staff College of India ( ASCI).
  
• National Institute for Small Industry Extension and Training ( NISIET).
  
• National Institute of Rural Development (NIRD)
  
• National Institute of Nutrition ( NIN).
  
• National Geographic Research Institute ( NGRI).

Board of Intermediate Education, Andhra Pradesh

The Board of Intermediate Education, Andhra Pradesh promotes the vision of world-class education in Andhra Pradesh through quality leadership, support, and services thereby striving towards continuous improvement of education in the State.

The Board also regulates and supervises the system of intermediate education that include devising of courses of study, prescribing syllabus, conducting examinations, granting affiliations to colleges and, providing direction, support and leadership for all educational institutions under its jurisdiction.

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Andhra Pradesh State Council for Higher Education ( APSCHE)

The Andhra Pradesh state council of Higher Education (APSCHE) came into existence on 20th May 1988 through an Act (No. 16 of 1988) of the State Legislature to advise the Government in matters relating to Higher Education in the State and to oversee its development with perspective planning and for matters connected therewith. This council was the first of its kind in the Country, set up as per the recommendations of the National Education Policy 1986 and is primarily a coordinating and liaisoning body between the University Grants Commission, the State Government and the Universities.

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Health

Directorate of Health

The Directorate of Health in Andhra Pradesh is primarily responsible for the provision of healthcare services in the state. The directorate of health has been entrusted with the following:

• Provision of first aid at primary health centres and district hospitals for all accident and injury cases.
  
• Provision of adequate equipments in hospitals and health centres with medical kits and personnel for childbirth and pregnancy.
  
• Supply and distribution of preventive medicines for communicable diseases / epidemics.
  
• Rehabilitative services for leprosy / encephalitis patients.
  
• Treatment of Disorders namely Respiratory, Digestive, Neural, Circulatory and ENT Cases.
  
• Promotion of positive health, health education and health campaigns.

Women and Child Welfare

Andhra Pradesh holds the distinction of being one of the few states in India where a separate directorate and department has been set up in order to look at the welfare of women and children.

The Department initially looked at a community based approach to Women's issues through the formation of Mahila Mandals , District shelters/ homes. Later the priority was given to training institutions, Child Welfare Programs and Programs through Voluntary Organizations, NGO's etc. The Focus in the 1990's was on Employment and Income Generation Services, Skill Development Training and Support Services.

Currently the department is striving to achieve Womens empowerment through increased Gender Sensitisation in education and employment and women's participation in various aspects of development.

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Super-speciality Healthcare facilities

Hyderabad has a number of number of super-speciality hospitals such as the Apollo hospital, CARE, Indo-American Cancer Institute and Research Centre and Nizam's Institute of Medical Sciences.

Mines and Geology

Minerals form as a major resource and contribute considerably to the economic growth of the state. Andhra Pradesh is renowned as the mineral store house of the south and established as a prime mineral producer in the Country.

The varied geology of the state has rich and wide variety of minerals useful for mineral specific industry. 48 varieties of minerals have been identified so far and important among them are-Gold, Diamond, Bauxite, Beach Sand, Limestone, Coal, Oil and Natural Gas, Manganese, Dolomite, Quartz, Feldspar, Precious and Semi-precious stones, Clays, Calcite, Steatite Iron Ore, Base Metals, Barytes, Uranium, Granite, Limestone Slabs, Marbles, Dimensional Stones and other Building Materials etc.

Mineral Resources

Andhra Pradesh is well known globally for variety of rocks & minerals and called as 'Ratna Garbha', a State endowed with variety of minerals. Many of the ancient travelers and historians have mentioned about ancient mining of Gold, Diamond, Base Metals, Precious Stones etc. A.P. is repository of many minerals and has tremendous potential for mining and development; contain varieties of Litho units/ Rocks, which contain host of industrial and non-industrial minerals.

Andhra Pradesh is geologically unique and consists of Igneous, Volcanic, Metamorphic and Sedimentary formations range in age from most ancient (Archean) to recent(teriaries), and contain Peninsular gneissic complex, Dharwars, Eastern ghats, Cuddapah, Pakhal, Penganga, Bheema Kurnool (Palnadu,) Gondwana, Deccan traps, Tertiary and Quaternary formations. These formations with different Litho Units / Rocks contain host of industrial, Non-Industrial, Metallic Minerals.

Estimates of some of these important mineral reserves are given below:

Source:-Mines and Geology Department

Andhra Pradesh is comfortably placed in various Minerals such as Limestone (34%), Coal (10%), Mica(86%), Dolomites (11%),Bauxite(40%),Barytes (96%),Clays (30%),Heavy mineral beach sand (40%),Manganese (10%),Feldspar (11%),Quartz,Silica sand Soapstone (16%), Gold, Diamonds (16%), Uranium, Oil and Natural gas, Iron ore, Semi-precious stones, Granite (40%), Slates, Limestone slabs, Marbles, Dimensional and Building stones (40%).

• The State is first in Barytes, Limestone and Beach sand heavy Mineral deposits in the country.
  
• The State is well known for Gold, Diamond, Precious and Semi Precious stones occurrences over vast areas.
  
• There are huge deposits of Bauxite in East Godavari and Visakhapatnam districts.
  
• Krishna-Godavari on shore and off shore basin contain huge reserves of oil and natural gas.
  
• The State also contains huge uranium deposits in Kadapa and Nalgonda districts.
  
• Andhra Pradesh is only State in the entire Southern India which contains large deposits of Coal.
  
• The State also has number of scattered low grade iron ore deposits in Prakasam, Krishna, Khammam, Karimnagar, Kurnool and Kadapa districts.
  
• The State is well known for exclusive granite varieties viz., Chimakurthy Black Galaxy Granite, Srikakulam Blue, Khammam and Warangal Black granite Karimnagar Tan Brown etc.
  

The department of Mines and Geology is entrusted with both promotional and regulatory functions for overall development of mineral sector and also collection of mineral revenue to the State Exchequer. The department is overseeing the functions of receipt and processing of mineral concession applications, grant of leases for Minor Minerals, approval of Mine Plans, Inspection of Mines, curbing of illicit Mining and Transportation, Vigilance, monitoring of Mineral Production, Survey and Demarcation of areas, Mineral Revenue Collection, Mineral Investigations and explorations and dissemination of Mineral information.

Leases and Mining

There are 2,039 Mining leases and 9052 quarry leases for Major minerals (Industrial Minerals) and Minor Minerals (Construction Minerals) with an extent of 1,02,376 hects and 30,736 hectares respectively and 35 Reconnaissance permits (Gold, Diamond, Base metals, Precious metals). Mining for coal, Limestone, Barytes and Natural Gas falls under large scale mechanized sector, Granite, Dolomite, quartz, feldspar, Clays etc. Nearly 90% of the Mines fall under small sector and remaining 10% falls under medium and large sectors.

Mineral Based Industries

97 principle large and medium scale mineral based industries have been established in Public and Private sectors for manufacture of cement, steel, sponge Iron, Fertilizers, Ferro Alloys, Glass, Oil refinery, Fibre Glass, Ceramics, Refractories, Zinc refinery, Chemicals etc. A.P. is the 2nd largest cement producer in the country. There are 18 major and 17 mini cement plants with an installed capacity of 23 Million Tons per annum. In addition, there are about 5,000 Granite, Marble and Limestone cutting and polishing units, Slate cutting units, mica processing units, Gem cutting and faceting units, Granite monuments manufacturing units, Pulverizing units, stone crushers, mosaic and ceramic tile units, lime kilns, and Rock stone sand units.

Mineral Production and Value

The mineral consumption is increasing due to promotion of various industries and manufacture of mineral based products. State produces about 100 to 110 million tonnes of industrial minerals and 200 million cubic meters of dimensional stones and building material. A.P. stands 1st in Barytes and Limestone production in the country.

The state stands first in value of minor mineral production and Second in total value of mineral production in the country; contributing about 9 to 10 percent, (US$ 3.44 billion -2008-09) to the country's mineral value production. The production of Coal, Natural Gas and Limestone from 1994-95 to September 2009.

Revenue

The Mineral and Mining sector has achieved US$ 378.42 million of Mineral Revenue during 2008-09 against the target of US$ 472.10 million.Mineral revenue of US$ 180.46 million was achieved upto September 2009 against the annual target of US$ 528.68 million for 2009-10.During the 2008-09, State stands first in Mineral Revenue among the important Mineral Producing States of the country viz., Jharkhand (US$ 316.01 million), Rajasthan (US$ 273.09 million), Chattisgarh (US$ 262.53 million), and Karnataka (US$ 106.35 million).

Policy Initiatives

• Initiative was taken in enactment of "the A.P. Mineral Bearing Lands" (infrastructure) Cess Rules, 2005 for collection of Cess on Mineral Bearing Lands for promotion of infrastructure facilities and rapid exploitation of Mineral resources in the State. Initially, only Coal, Oil, and Natural gas, Barytes, Lime Stone, Iron Ore and Granite are brought under the Cess Rules.
  
• Initiative has been taken and identified 12 exclusive Mining zones over an extent of 0.14 million acres around Hyderabad for Building stone, Metal and Manufacture of stone sand. The Government has already declared One Exclusive Mining Zone at Bandaraviryala over an extent of 670 Acres.
  
• The sand quarrying and regulation subject has been transferred from Panchayatraj Raj and Rural Development Department to the Mines and Geology Department for scientific, regulation and effective realization of Mineral Revenue to the State exchequer. The department has taken fresh initiative to conduct sand auctions throughout the State.
  
• The State Coal Policy facilitating APMDC to operate Coal Mines in Tribal Agency areas in conformity with APLTR and also in association with other PSU's was announced.
  
• Introduced uniform collection of Seigniorage fee on Slab system to help the Granite and Limestone slab cutting and polishing units in the state and also waiver of Seigniorage fee on granites.

Other Initiatives

• The State pursued with Central Geological Agencies for exploration of Diamond, Coal, Gold, Base Metals, Rare Earths, Beach Sand minerals, Volcanic Ash, Granites.
  
• Investigation has been taken up to identify areas for exclusive quarry zones for Road Metal and building material for promoting manufacture of rock sand around Visakhapatnam town and Granite deposits in East Godavari and Medak Districts, Laterite and Iron ore resources in Kadapa and Adilabad Districts and Dolomite in Khammam District. Further intends to identify the areas for proposing exclusive mining zones in Mahabubnagar District for promoting manufacture of sand from Rock.
  
• Initiative was taken to review the achievements in case of 38 reconnaissance permits granted to 10 National and International Companies for gold and diamond. The reconnaissance permit holders have indicated the presence of diamond ferrous kimberlite bodies after review and some of them have filed 42 Prospecting licenses for detailed exploration of Diamonds.
  
• Initiative has been taken to promote the manufacture of Robo sand and grant of leases to encourage the entrepreneurs for manufacture of sand as an alternative to the natural sand.
  
• Taken initiative for development of the largest Bauxite deposits of Visakhapatnam and East Godavari districts and establish Alumina /Aluminium Units with the active participation by the NALCO, JSWH Ltd., Local Tribal Societies, TRICOR and Andhra Pradesh Mineral Development Corporation.
  
• Encouraged the Andhra Pradesh Mineral Development Corporation, Indian Rare Earths and other Private Sector entrepreneurs for mining and establishment of Beach Sand Mineral Separation Units, Titanium Slag and down stream industry at Vizianagaram and Srikakulam districts.
  
• Encouraged the APMDC for establishment of Low Grade Iron Ore beneficiation Plant at Ongole and large scale mining of Galaxy Granite in Prakasam District.
  
• The Government through APMDC intends to enter into oil and Natural Gas exploration and coal mining in other States. The department through Government has requested the Government of India to allocate on-share oil and Natural Gas blocks to APMDC for exploration on nomination basis so as to cater the needs of the state.
  

Major Industries

Automobile and Auto Components Industry

The Automobile Industry has a strong presence in the State of Andhra Pradesh owing to a broad base of automotive component manufacturers and a large pool of highly trained and skilled manpower. Andhra Pradesh has to its credit, more than a 100 automotive component manufacturing companies (including first-tier suppliers and OEM's) that specialise in precision aluminium castings, high pressure die castings, forging, machined components, pressed metal components, gears, pistons, leaf springs, front axles, brake liners, cylinder liners, clutch covers, fuel filters, nozzles, delivery valves, starter motors, alternators, grey-iron, oils and lubricants, diesel fuel injection equipment, electronics /electrical, electronic regulators, CAD/CAM design, etc. Over half the cylinder liners and clutch plates in India are produced in Andhra Pradesh.

Most of these components are presently being supplied to Ashok Leyland, Honda, Tata, Suzki, Mahindra & Mahindra, Escorts, Kirloskar and Bajaj. Amaron Batteries are manufactured in Chittoor district.

Bulk Drugs and Pharmaceuticals

Andhra Pradesh has a dominant position in the bulk drugs and pharmaceutical sector with Hyderabad accounting for nearly one third of India's total bulk drug production. Andhra Pradesh is well known internationally for its skills in chemical synthesis and process engineering. The state provides for favourable investment in bulk drugs and pharmaceuticals, with a good scope for the establishment of large and medium scale industrial units.

Biotechnology

Biotechnology is another important industry sector in Andhra Pradesh with the state being naturally blessed with abundant and diverse agriculture, forest wealth, marine resources and cattle population that serve as catalysts for the promotion of the biotech sector.

In the field of Agri-biotech, tissue cultures for food crops and ornamental plants have been taken up in the state successfully. The State already has six agri-biotech companies doing well. The presence of a large number of hospitals and facilities for healthcare education and research also facilitate clinical trials of biotech products.

Information Technology

Government of Andhra Pradesh aspires to transform the State into a Knowledge Society and make available the benefits of Information Technology (IT) to the last mile of the State and to all citizens, especially those in rural areas. It has emerged as a State that provides the right climate for the growth of IT business and is now one of the most preferred destinations in the Country.

Despite economic slowdown, the State continued to maintain high growth rates in the IT sector. For the year 2008-09, the IT sector recorded an export growth rate of 24.5% as against the national average of 20.65%, with the exports turnover of US$ 7019.23 million. IT sector contributes to about 52.09% of total exports from all sectors in the State. AP State ranked fourth in IT performance in the Country. The share of IT exports from the State of Andhra Pradesh occupies 15% of national IT exports.

As of 2008-09, IT sector created gainful direct IT employment to 2,51,786 as against the All India IT/ITES employment generation of 22,00,000(AP Share 11.44%). It is estimated by NASSCOM (National Association of Software & Service Companies) that every direct job in IT creates four indirect jobs.

As of 2008-09, there are 1,206 IT/ITES companies registered in A.P with STPI. During 2008-09, 69 IT/ITES companies registered with STPI, with a total projected investment of US$ 110.08 million, as against 616 companies registered in the country.

A.P. is at present home for major MNC-IT giants and Fortune 500 companies,such as Microsoft, Google, IBM, Oracle, DELL, Deloitte, Convergys, UBS, Bank of America,HSBC,Wipro, Infosys, HCL,Honeywell, Siemens,Cognizant,Sonata,Mahendra British Telecom,Patni, Celestica, Unisys, and many more.

Mines and Minerals

Andhra Pradesh ranks among the second largest storehouse of mineral resources in India. The state stands first in the value of mineral production, contributing 9 to 10 percent US$ 1419.57 million of the country's mineral value of production and approximately US$ 172.47 million by way of foreign exchange.

The Mining sector has been identified as a growth engine for the overall development of the industry and infrastructure. The state offers numerous investment opportunities for investment and development of mineral and mining projects owing to its vast explored mineral potential and natural infrastructure. The state also envisages mineral projects with the participation and investment from the private sector.

Textiles and Leather Industry

The Textile and leather industry is poised for exponential growth in Andhra Pradesh with the state being second in the manufacture of raw silk and cotton, fourth in the production of wool and textile mills in the country. Andhra Pradesh is well suited in terms of ideal climatic conditions that are conducive to the growth of the leather and textile industry. The state also posseses an excellent raw material base with skilled human resources.

The Government aims at creating the right climate and atmosphere for investors and entrepreneurs to benefit from the world trade through the Textile and Apparel Promotion policy, that poises to promote a strong and vibrant textile industry that would promote sustainable employment to weavers and workers in the handloom, powerloom and textile / apparel sector.

Tourism

Andhra Pradesh Tourism Development Corporation (APTDC) is a State Government Undertaking incorporated in the year 1976. It continues to register significant growth since 1999-2000 with a focus on the creation of tourism infrastructure and products.APTDC continues to strive for promotion of new tourism products such as Eco-Tourism, Beach Tourism and Cruise Tourism.

During 2008-09, six new Eco-tourism destinations have been promoted as novel initiatives under community based Eco-Tourism. The River Cruise tourism to Pattiseema and Papikondalu on river Godavari has become immensely popular.

Eco-Tourism:The Corporation develops tourism infrastructure and package development for overall development of tourism in the State. The Corporation involved in many areas of development i.e. hotels, resorts, wayside amenities, tourist packages and water sports etc. Recently, it has ventured into new tourism related fields like, Heritage, Pilgrimage and Eco-tourism etc.

Growth:Growth in Andhra Pradesh tourism from 2006-06 to 2009-10 is shown below in Table:

Tourists Inflow and Revenue
Year	Tourists (nos. in million)	Revenue (US$ million)
2006-07	5.35	19.29
2007-08	6.25	21.75
2008-09	7.38	23.49
2009-10 (projected)	7.75	25.22

Source: Tourism Development Corporation

Recent Initiatives in Tourism sector by Government

Tour Packages:APTDC has designed a number of Tourists Packages to varied destinations both in and outside the state through its modern transport fleet.

Haritha Hotel Chain:APTDC has developed the "Haritha Hotel Chain" located in important tourist centers. which provides the right ambience and the quality a tourist truly deserves.

Wayside Amenities:To provide better facilities to highway travelers, APTDC has taken up development of Wayside Amenities along the highways at Alankanpally, Suryapet, Pragnapur, Kamareddy, Lepakshi, Wyra, Sone and Srikalahasthi. Facilities like Restaurant, Washrooms, Parking area, Souvenir Shop and Children Play area are developed at these places. Projects completed and commissioned are Alankanpally, Pragnapur, Lepakshi, Srikalahasti and Suryapet. Development of wayside amenities at Wyra and Tallapaka is taken up and works are in progress.

Water Fleet:The large number of water bodies have enabled APTDC to develop lake and river tourism in Andhra Pradesh.The water fleet strength of APTDC is 117 which includes FRP Boats, Launches, Parasail Boat and large vessels. The Corporation operates 10 cruises in Godavari and Krishna rivers. New catamaran type boats and latest Speedboats have been introduced at various water bodies as a part of strengthening the water fleet operation.

River Cruises:As a part of new product development, the Corporation has aggressively promoted river cruises during last year. The Corporation operates one of the most popular River Cruise on River Godavari between Pattiseema and Papikondalu.

Sound and Light Shows:The corporation in its endeavour to show case historic and heritage monuments to the tourists has developed Sound and Light shows at Golconda Fort, Hyderabad and Chandragiri palace near Tirupati.

Eco-Tourism:The Corporation took the initiative of identifying potential Eco-tourism spots and successfully implemented the popular eco projects like the Belum caves, revamping of Borra caves, an exotic Jungle destination by name Jungle Bells at Tyda, famous lake project at Durgam Cheruvu, illumination of Ettipothala water Falls and development of Bhavani River Island.

Eco-Tourism initiatives

• APTDC in coordination with AP Forest Department and Vana Samrakshana Samithi(Tribal communities) has identified eight Eco-tourism destinations at Maredumilli (East Godavari District), Nelapattu (Nellore District), Mamandur, Talakona, Nanniyal (Chittoor District), Balapalli (Kadapa District), Ettipotala (Guntur District), Kambala Konda (Visakhapatnam District).
  
  
• Eco-tourism package would involve Nature Treks, Wildlife Tourism and Jungle Stays. Transport to and fro the destination will be provided by APTDC.
  
  
• Vana Samrakshana Samithi (community) will provide accommodation, guide services and food.
  
  
• A.P. Forest Department will provide infrastructure under Community Forest Management (CFM).

Investment Opportunities

I) Agro-Food processing Industry

The opportunities in Agro based food processing include:

• Rice: Value based additions in rice based products such as rice flakes, puffed rice, Noodles, rice cakes, fermented products, Rice based beverages, barren oil etc.
  
• Maize: Ethanol made from maize is blended with petrol and provides scope for utilizing the marketable surplus in the state.
• Jowar: Alcohol can be effectively extracted from Jowar.
• Horticulture: Fruit & Vegetable processing, Fruit based beverages.
• Marine Food: The long coastline and reservoirs have attracted the processing of Marine and fresh water seafood, including fish and prawns.
• Poultry: Andhra Pradesh is the largest egg producer in India, producing 35 million eggs annually. A common facility for egg washing, grading and packing is being set up near Hyderabad.
• Animal Husbandry:Processing of poultry , eggs, meat , meat products.
• Food Processing:Oilseed meals (edible), breakfast foods, biscuits, confectionery, including cocoa processing and chocolate, oil expelling and refining, malt extraction, protein isolates, high protein foods, weaning foods, extruded / other ready to eat food products.

Current Project

Food processing Park, Kuppam

II) Biotechnology

The state of Andhra Pradesh, especially Hyderabad has produced several pioneers in the area of Medical/Human and Animal Healthcare. Some examples include Biotech companies such as Shanta Biotechnics, Bharat Biotech, Krebs Biotech, Biological E Ltd.,Jupiter Biosciences and Dr. Reddy's Laboratories among others. This portrays the unique advantage of the State in the area of Pharma-related Biotech.

The Government of Andhra Pradesh has put forth the following areas in Biotech which offer opportunities for investment namely

• Therapeutics
  
• Diagnostics
  
• Industrial Biotechnology
  
• Inputs to the industry (hardware suppliers - Instrumentation and Chemicals)
  
• Agricultural Biotechnology

III) Mines and Minerals

Numerous opportunities exist in the field of Mines and Minerals by way of

• The Andhra Pradesh Minerals Development Corporation (APMDC),a fully owned Government undertaking for the exploration, exploitation and development of mineral resources has initiated investment proposals in bauxite, granite and beach sand. The government is also likely to open up diamond mines with the participation of National and International companies. There also exists a good scope for the revival of old gold mines and opening of a world-class gold mine in Kurnool district in the coming years.
  
• Mineral exploration projects with reference to diamonds, gold, base metals, limestone and granite.
  
• Envisaged mineral projects with participation and investment from the private sector.
  
• Ample scope to tap coal reserves for the development of coal based thermal plants,washeries, gasification and carbonisation plants. Proposed programmes to augment coal production with the aid of private participation.
  
• Andhra Pradesh is known for its wide variety of granites such as the world renowned Chimakurthy Black Galaxy Granite, Srikakulam Blue and White, Warangal and Khammam Black etc. A plethora of opportunities exist in making novelty and artifact products with polished granite that have a good demand in the International market.
  
• The Government of Andhra Pradesh has offered the development of advanced ceramics like Electro and and Mechano ceramics under private sector investment.

IV) Tourism

The State Government with a view to promote Andhra Pradesh as an ideal tourist destination has adopted a proactive investor friendly open door policy for investors, with a mechanism of active private sector participation. The following areas could be explored in the tourism sector.

• The convention and heritage tourism
  
• Sea and inland water cruise tourism
  
• Pilgrim Tourism
  
• Health tourism
  
• Buddhist circuit and Buddhist sites
  
• Science and technology tourism
  
• Beach tourism
  
• Eco tourism
  
• Leisure tourism
  
• Wild life tourism
  
• Adventure tourism
  
• Fairs and Festivals and
  
• Rural / Village tourism

V) Information Technology

In the arena of Information Technology investment opportunities exist in the following areas namely,

• Software Development.
• IT enabled services.

Mega Project

Hardware Park

VI) Ports

Mega Project

Gangavaram Port Project

VII) Roads

Mega Project

Hyderabad to Vijaywada Highway

Integrated Infrastructure Development

Mass Rapid Transport System

Investment and Industrial Policies

Industrial Policy (2005-2010)

The Industrial Policy of Andhra Pradesh has been formulated with a view to drive industrial growth in the state by attracting private investments with specific measures to improve the investment climate towards better regulation by removing barriers to competition.

Full text of the policy (.pdf)

Biotechnology Policy (2001)

The Government of Andhra Pradesh has accorded a strong thrust on the Biotechnology sector. The policy on Biotech aims to facilitate the development of biotechnology in the State by creating high quality infrastructure through the strategy of setting up specialized Biotech Parks in different parts of the State, encouraging research activities, developing human resources and establishing links between research institutions, academia and industry. The State Government aims to create a hassle-free environment for the biotech industry through simplification of procedures and a single window clearance mechanism.

Full text of the policy

Information and Communication Technology Policy (2005-2010)

The Government of Andhra Pradesh introduced the ICT policy with a view to transform the state into a knowledge society and make available the benefits of information technology to all citizens, especially those in rural areas. The State aims to leverage ICT for achieving an Info-age (inclusive, networked, fast, open, accountable, globally benchmarked and efficient) government.

Full text of the policy

Infrastructure Policy

The Government of Andhra Pradesh with a view to undertake mega projects to attract industries and the overall development of the state has constituted a High Level Task Force and identified 31 Mega Infrastructure Projects for immediate implementation with the private sector participation.

The Infrastructure sectors covered by the policy are Power generation, Transmission and Distribution projects, Roads (Govt Highways, Major Road Districts, Other District Roads, Village Roads), Bridges and Bypasses, Minor Ports and Harbours, Airports and Heliports, Gas and Gas Works, Inland Containers and Logistics Hubs.

Full text of the policy (.pdf)

Ports Policy

Andhra Pradesh was amongst the first maritime states in 1994-95 to recognise the imperative need for increased port infrastructure and the central role that the private sector would be required to play in developing the same. The port privatisation in Andhra Pradesh has been based on Build-Operate-Share-Transfer basis.

Full text of the policy (.pdf)

Foreign Direct Investment in Andhra Pradesh

The State has received US$ 3491.12 million of Foreign Direct Investment (FDI) inflows as equity from January 2005 to September 2009 as per the statement of Reserve Bank of India (RBI) regional office at Hyderabad.

Source:Department of Industrial Policy & Promotion (DIPP)

Useful Web Links

Government of Andhra pradesh

National Informatics Centre, Andhra Pradesh

Commissionerate of Industries

A.P.Industrial Development corporation Ltd