Andhra Pradesh State India Economic Snapshot August 2013

2. 
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3. •
Andhra Pradesh has 38 operational special economic zones (SEZs), higher than any other
state in the country. It also has the highest number of IT/ITeS-related SEZs in India. “The
hi-tech city” in Hyderabad is the largest IT facility in India.
•
India’s first Information Technology Investment Region (ITIR) will be developed in Andhra
Pradesh over an area of 202 sq km. ITIR is likely to attract investments of around US$
40.4 billion.
•
Revenue from the IT sector crossed the US$ 10 billion mark over 2012-13.
World’s largest single
deposits of barytes
•
Andhra Pradesh has the largest single deposits of barytes in the world. It has around 70
million tonnes of baryte reserves, accounting for 94 per cent of total baryte reserves in
India.
Largest producer and
exporter of bulk drugs
•
Andhra Pradesh ranks first in the manufacturing of bulk drugs in India and accounts for
around one-third of the national production of bulk drugs.
Most operational SEZs
Largest ITIR in
development
Revenues of US$ 10
billion from IT sector
Source: Andhra Pradesh Socio-Economic Survey 2012-13, Aranca Research

4. One of the largest
mineral storehouses
Largest producer of
spices, fruits, eggs
Largest exporter of
marine products
Second largest cement
producer
Electronic hardware
policy
•
Andhra Pradesh is the largest producer of barytes and limestone in India. It also has the
largest reserves of granites (estimated at 2.4 billion cubic metres) and beach sand (241
million tonnes) in the country.
•
The state is the largest producer of spices, fruits and crops, including citrus, papaya, oil
palm and tomato, in India. It also ranks first in the production of eggs and third in milk
production in the country.
•
Andhra Pradesh ranks first in the production of brackish-water shrimps and fresh-water
prawns. It contributes around 40 per cent to the country’s total marine exports.
•
Andhra Pradesh is the second largest cement producer in India.
•
Andhra Pradesh is the first state to develop an Electronic Hardware Policy in India (201217), wherein, the state government plans to provide incentives for setting up more than
200 electronic manufacturing clusters in the stage.
Source: Andhra Pradesh Socio-Economic Survey 2012-13, Aranca Research

5. High economic growth
Growing demand
2011-12
•
IT exports:
US$ 8.5
billion
•
•
Hub for knowledge-based
industries
GSDP expanded at a compound
annual growth rate (CAGR) of 16 per
cent between 2004-05 and 2012-13
Vast natural gas reserves in the
Krishna-Godavari basin have opened
up immense possibilities for the state
economy
Andhra Pradesh is a leading
agricultural state in India
•
•
•
•
Advantage:
•
Andhra
Pradesh
Rich labour pool
•
•
•
Large base of skilled labour, making it
an ideal destination for knowledgeintensive sectors
Provides 30 per cent of the country’s
engineering talent through prestigious
institutes such as IIT, JNTU, IIIT,
BITS, ISB and NIT
Furthermore, the state has a large
pool of semi-skilled and unskilled
labour
•
•
•
•
•
Key state for industries including IT,
pharmaceuticals and biotechnology
Host to 71 out of 500 top global
corporations and has the highest
number of IT SEZs in India (56 as of
2011-12)
Fourth largest IT exporter in India,
accounting for 12 per cent of the
country’s total IT exports
2017E
IT exports:
US$ 31.3
billion
Policy and infrastructure
The engineering sector is delicensed;
support
100 per cent FDI is allowed in the
Wide range of fiscal and policy
sector
incentives for businesses under the
Industrial Investment Promotion Policy,
Due to policy support, there was
2010-15
cumulative FDI of USD14.0 billion into
Well drafted sector-specific policies
the sector over April 2000 – February
Well-developed social, physical and
2012, making up 8.6 per cent of total
industrial infrastructure and virtual
FDI into the country in that period
connectivity, and has good power,
airport, IT and port infrastructure
Source: Socio-Economic Survey of Andhra Pradesh 2012-13
GSDP: Gross State Domestic Product

6. Most commonly spoken language is Telugu. Hindi, English
and Tamil are the other languages used.
Parameters
Capital
Andhra
Pradesh
Hyderabad
Geographical area (sq km)
Administrative districts (No)
Andhra Pradesh is located in the southern peninsula of
India and has a coast line of 974 km.
23
Population density (persons per sq
km)*
308
Total population (million)*
Source: Maps of India
275,100
84.6
Hyderabad,
Visakhapatnam,
Vijayawada,
Tirupati,
Warangal, Guntur, Kakinada, Nellore and Kurnool are some
of the key cities in the state.
42.5
Female population (million)*
The state of Andhra Pradesh is bound by Odisha and
Chhattisgarh on the north, Maharashtra and Karnataka on
the west, Tamil Nadu on the south, and the Bay of Bengal
on the east.
Male population (million)*
42.1
Sex ratio (females per 1,000 males)*
992
Literacy rate (%)*
67.7
Sources: Andhra Pradesh Government Website (www.aponline.gov.in),
* Provisional Data – Census 2011

7. Andhra
Pradesh
All-States
Source
GSDP as a percentage of all states’ GSDP
7.8
100
Andhra Pradesh Socio-Economic Survey,
2012-13, current prices
Average GSDP growth rate (%)*
16.0
15.6
Andhra Pradesh Socio-Economic Survey,
2004-05 to 2012-13, current prices
1,582.2
1,414.2
Andhra Pradesh Socio-Economic Survey,
2012-13, current prices
17,098.7
225,133.1
Central Electricity Authority, as of May 2013
Wireless subscribers (No)
64,363,622
867,803,583
Telecom Regulatory Authority of India,
as of March 2013
Broadband subscribers (No)
1,342,750***
15,050,000
Telecom Regulatory Authority of India, as of
March 2013
National Highway length (km)
6,547**
79,116
Ministry of Road Transport & Highways,
as of March 2013, Andhra Pradesh Government
press release, 2013
1+14
13+187
Indian Ports Association
9
133
Airport Authority of India
Parameter
Economy
Per capita GSDP^ (US$)
Physical Infrastructure
Installed power capacity (MW)
Major and minor ports (No)
Airports (No)
* Calculated in Indian rupee terms, ** As of January 2013, *** As of December 2011, ^ Advanced estimates

8. Andhra
Pradesh
All-States
Source
Literacy rate (%)
67.7
74.0
Provisional data – Census 2011
Birth rate (per 1,000 population)
17.5
21.8
SRS Bulletin (www.censusindia.gov.in), 2012
8.0
193.4
Department of Industrial Policy & Promotion,
April 2000 to March 2013
922.0
10,499.2
CMIE (2012-13)
PPP projects (No)
100
881
www.pppindiadatabase.com
SEZs (No)
76
385
Notified as of March 2013, www.sezindia.nic.in
Parameter
Social Indicators
Investment
FDI equity inflows (US$ billion)
Outstanding investments (US$ billion)
Industrial Infrastructure
PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System

9. At current prices, Andhra Pradesh’s gross state domestic
product (GSDP) was estimated at US$ 136.0 billion over
2012-13.
91
2008-2009
Growth was mainly driven by service and secondary
sectors.
93
2007-2008
CAGR
16.0%**
137
136
2012-2013*
Between 2004-05 and 2012-13, the average annual GSDP
growth rate was 16.0 per cent**.
125
2011-2012
GSDP of Andhra Pradesh at current prices
(in US$ billion)
101
66
58
2010-2011
2009-2010
2006-2007
2005-2006
2004-2005
50
Source: Andhra Pradesh Socio-Economic Survey, 2012-2013
* Advanced estimates, ** In Indian rupee terms

10. At current prices, Andhra Pradesh’s net state domestic
product (NSDP) was estimated at US$ 122.3 billion over
2012-13.
NSDP of Andhra Pradesh at current prices
(in US$ billion)
Between 2004-05 and 2012-13, the average annual NSDP
growth rate was about 16.1 per cent**.
123
122
112
84
90
2008-2009
2009-2010
CAGR
16.1%**
81
2012-2013*
2011-2012
2010-2011
2005-2006
2007-2008
52
2006-2007
45
2004-2005
59
Source: Andhra Pradesh Socio-Economic Survey, 2012-2013
* Advanced estimates, ** In Indian rupee terms

11. Andhra Pradesh’s per capita GSDP increased to US$
1,582.2* during 2012-13 from US$ 628.8 over 2004-05.
1,484
1,105
1,122
2007-2008
2008-2009
CAGR
14.9%**
1,604
1,582
2012-2013*
Average per capita GSDP rose at a CAGR of 14.9 per
cent** between 2004-05 and 2012-13.
2011-2012
GSDP per capita of Andhra Pradesh at
current prices (in US$)
1,202
819
719
2010-2011
2009-2010
2006-2007
2005-2006
2004-2005
629
Source: Andhra Pradesh Socio-Economic Survey, 2012-2013
* Advanced estimates, ** In Indian rupee terms

12. Andhra Pradesh’s per capita NSDP grew from US$ 563.3
during 2004-05 to US$ 1,422.8* over 2012-13.
1,332
CAGR
15.0%**
987
1,009
1,439
1,423
2012-2013*
Average per capita NSDP increased at a CAGR of 15.0 per
cent** between 2004-05 and 2012-13.
2011-2012
NSDP per capita of Andhra Pradesh at
current prices (in US$)
1,078
732
2010-2011
2009-2010
2008-2009
2007-2008
2006-2007
2005-2006
2004-2005
563
645
Source: Andhra Pradesh Socio-Economic Survey, 2012-2013
* Advanced estimates, ** In Indian rupee terms

13. During 2012-13, the tertiary sector accounted for 52.5 per
cent (US$ 71.3 billion) of GSDP (at current prices), followed
by primary (25.1 per cent; US$ 34.2 billion), and secondary
(22.4 per cent; US$ 30.5 billion).
GSDP composition by sector
CAGR**
50.6%
The secondary sector grew the fastest at a CAGR of 16.6
per cent**, followed by tertiary (CAGR of 16.5 per cent**)
and primary (CAGR of 14.5 per cent**) between 2004-05
and 2012-13.
16.5%
21.5%
16.6%
27.9%
14.5%
2004-05
Primary sector
52.5%
22.4%
25.1%
2012-13*
Secondary sector
Tertiary sector
Source: Andhra Pradesh Socio-Economic Survey, 2012-2013
* Advanced estimates, ** In Indian rupee terms

14. Over 2012-13, total area under food grain production in
Andhra Pradesh was estimated at 6.6 million hectares.
Crop
Annual production
(‘000 tonnes) – 2012-13^
Sugarcane
15,912*
Overall production of food grains in the state was projected
at 17.1 million tonnes over 2012-13.
Rice
10,488
Cotton
7,200**
Major food grains# produced in Andhra Pradesh are rice,
maize, pulses and jowar.
Maize
4,484
Mango
3,901***
Sugarcane, cotton, chillies, onion, groundnut and turmeric
are some of the other major crops produced in the state.
During 2012-13, total production of oilseeds in the state was
estimated at 1.5 million tonnes.
Total pulses
Chillies
1,757***
Onion
850***
Groundnut
1,027
Bengal gram
# Food
Grains Include Rice, Jowar, Bajra, Maize, Ragi, Wheat, Pulses
and Other Millets.
1,493
Turmeric
520
1,894
Black gram (Urad dal)
379
Jowar (Sorghum)
412
Red gram (Tur dal)
148
Green gram (Moong dal)
169
Source: Andhra Pradesh Socio-Economic Survey 2012-13, Cotton Corporation of
India (www.cotcorp.gov.in), ^ Second advanced estimates as on 05 January, 2013,
*Data for 2011-12, ** ’000 bales of 170 Kg each ***Advanced estimates

15. Andhra Pradesh’s exports increased at a CAGR of about 23.4 per cent** between 2006-07 and 2011-12.
During 2011-12, exports from Andhra Pradesh totaled US$ 24.2 billion.
Computer software contributes around 35.0 per cent to the state’s total exports. Drugs & pharmaceuticals, fine chemicals,
engineering products, agriculture and agro-based products are the other major export items.
Exports break-up, Andhra Pradesh (2011-12)
Handicrafts &
Mineral & mineral carpets 3%
Handloom &
textiles 2%
products 4%
Leather, animal and
marine products 4%
Exports from Andhra Pradesh (in US$ billion)
24.2
CAGR
23.4%**
Electronics
& electronics
parts 2%
20.1
16.9
15.4
Agro-based and
forest products
10%
14.3
Software (IT &
ITeS) 35%
Drugs & pharma
and chemical
plastics 18%
9.0
2006-07
Engineering
items 23%
2007-08
2008-09
2009-10
2010-11
2011-12
Source: Andhra Pradesh Socio-Economic Survey 2012-13
** In Indian rupee terms

16. According to the Department of Industrial Policy &
Promotion (DIPP), FDI inflows from April 2000 to February
2013 totaled US$ 8.0 billion.
Break up of outstanding investments by sectors
(2012-13)
The state has had a healthy FDI inflow over the years. From
April 2012 to February 2013, FDI inflows amounted to US$
1.1 billion.
Over 2012-13, outstanding investments in Andhra Pradesh
totaled US$ 922.0 billion.
4%
Electricity
12%
28%
12%
Manufacturing
Services
Irrigation
The electricity sector accounted for around 28 per cent of
total outstanding investments, followed by manufacturing
(25 per cent) and services (19 per cent).
19%
25%
Real Estate
Mining
Source: CMIE

17. As of September 2012, there were 41 public-private
partnership (PPP) projects in the roads sector that are at
various stages of development.
The central government announced plans to develop 1,817
km of state roads in the state into national highways at an
estimated cost of US$ 9.2 billion over the next three-five
years.
Road type
Road length* (km)
as of October 2012
Source: Maps of India
National highways
As of June 2012, Andhra Pradesh had 17 national
highways, running through it and covering a distance of
4,537 km. 11 new national highways were notified in FY ‘12,
taking the total tally to 28 and distance covered to 6,547 km.
The roads network under Andhra Pradesh Roads and
Buildings Department covered a length of 70,879 km as of
October 2012.
As of October 2012, road density per thousand population
was 0.86 km.
4,537
State highways
10,491
Major district roads
32,262
Rural roads
23,396
Source: Andhra Pradesh Socio-Economic Survey 2012-13
* Under Andhra Pradesh Roads and Buildings Department

18. As of March 2011, Andhra Pradesh had a total railway
Growing demand
network of 5,044.08 km; of this, 4,348.44 km is under the
control of the South Central Railway with Secunderabad
as the headquarters.
The state had 695 railway stations as of March 2011.
The Mass Rapid Transit Service (MRTS) project is
expected to carry about 1.5 million passengers per day by
2015 and 2.2 million passengers per day by 2025.
The construction work of the project was awarded to
Larsen & Toubro Limited in September 2010 through a
competitive bidding process.
Andhra Pradesh railway network (as of March
2011)
Total route
length (in
kms)
South Central
Railway
604
4,348.44
Southern Railway
16
120.85
East Coast Railway
Total cost for the MRTS project has been estimated at
US$ 2.9 billion. The Government of India has provided
US$ 0.3 billion as central assistance under the Viability
Gap Funding (VGF) scheme.
No of
stations
75
574.79
Name of the Railway
The state is the first to have a PPP Metro Rail project
sanctioned by the Government of India.
The metro rail project is eco-friendly and is expected to
reduce pollutants by about 3,100 tonnes per annum
(TPA).
Sources: Andhra Pradesh State Portal, www.portal.ap.gov.in,
Hyderabad Metro Rail Website - www.hyderabadmetrorail.in

19. Andhra Pradesh has an international airport at Hyderabad
Growing demand
and domestic airports at Visakhapatnam, Tirupati,
Rajahmundry, Warangal, Vijayawada, Donakonda,
Kadapa and Puttaparthi.
Hyderabad is connected to several key international
destinations, such as Amsterdam, Bangkok, Chicago,
Frankfurt, Dubai, Singapore, Sharjah, London and Kuala
Lumpur, besides all major destinations across India.
The Rajiv Gandhi International Airport near Shamshabad
(about 25 km from Hyderabad) is a newly completed
airport (5,495 acres). It has replaced the former
international airport of the city at Begumpet. Total cost for
this project was at around US$ 560 million.
GMR-Hyderabad International Airport Limited
(GHIAL), Shamsabad
Started operations in March 2008.
Constructed by the consortium of:
• GMR Group (63 per cent)
• Malaysia Airport Holding Berhad (MAHB) (11 per
cent)
• Government of Andhra Pradesh (13 per cent)
• Airports Authority of India (13 per cent)
Single terminal, expandable structure
Final capacity of 40 million passengers per year and
one million tonnes of cargo
Total built-up area of 900,000 sq m
Hyderabad airport received 2,147,172 passengers and
handled 46,495 tonnes of cargo during 2012–13.
The airport was recognised as the best airport in India by
the SKYTRAX World Airport Awards in 2013. It was also
recognised as a fifth best regional airport in Asia and
featured in Top 100 airport in the World.
A third-party airframe maintenance, repair and
overhaul (MRO) facility was set up by MAS-GMR
Aerospace Engineering Company Ltd, a joint venture
company of GHIAL and Malaysian Aerospace
Engineering Sdn. Bhd. (MAE).
A flight academy was established at the airport
Sources: GHIAL Website, www.hyderabad.aero, Airports Authority of India

20. Andhra Pradesh has a 974 km long coastline and the
second highest cargo-handling port.
The Visakhapatnam port ranks amongst the top three of 13
major ports in the country. During 2012-13, it had a port
traffic of 59.0 million tonnes.
Visakhapatnam port traffic (million tonnes)
64.6
63.9
65.5
68.0
67.4
59.0
Coking coal, iron ore, petroleum products and thermal coal
are some of the key products handled by the port. It also
has a high volume of container traffic.
Other than Visakhapatnam, the state has 14 intermediate
and minor ports.
2007-08
The central government announced plans to set up a new
deep sea port in the state at an estimated investment of
US$ 2.3 billion. The port is expected to have a cargo
loading capacity of 62.0 million tonnes.
2008-09
2009-10
2010-11
2011-12
2012-13*
Source: Ministry of Shipping, Government of India
Indian Ports Association, * Tentative

21. Andhra Pradesh has the largest hydro-power generation
capacity in India, ahead of Karnataka and Maharashtra.
Installed power capacity (MW)
16,949
As of May 2013, Andhra Pradesh had a total installed power
generation capacity of 17,098.7 MW, which comprised
9,050.1 MW under state utilities, 4,891.9 MW under private
sector and 3,156.8 MW under central utilities.
Thermal power accounted for 11,980.7 MW of total power
generation installed capacity, followed by nuclear (275.8
MW), renewable power (1,107.7 MW) and hydropower
(3,734.5 MW).
The private sector contributed to the entire capacity of gasbased power plants.
Per capita consumption of electricity in Andhra Pradesh was
1,050 kWh during 2011-12.
17,099
2012-13
2013-14*
16,095
15,036
13,409
11,639
2008-09
2009-10
2010-11
2011-12
Source: Central Electricity Authority

22. The integrated Andhra Pradesh State Electricity Board
(APSEB) was restructured in 1999 to form the following
companies:
Segment
AP Genco’s hydro power plants
Company name
Power
Generation
Andhra Pradesh Power Generation
Corporation Limited (APGENCO)
Power
Transmission
Transmission Corporation of Andhra
Pradesh Limited (APTransco)
Central Power Distribution Company
of Andhra Pradesh Limited
(APCPDCL), Hyderabad
Power
Distribution
Southern Power Distribution
Company of Andhra Pradesh Limited
(APSPDCL), Tirupati
Eastern Power Distribution Company
of Andhra Pradesh Limited
(APEPDCL), Visakhapatnam
Northern Power Distribution
Company of Andhra Pradesh Limited
(APNPDCL), Warangal
AP Genco’s thermal power plants

23. According to the Telecom Regulatory Authority of India
(TRAI), Andhra Pradesh had nearly 64.4 million wireless
subscribers and 2.24 million wireline subscribers as of
March 2013.
Telecom infrastructure (as of March 2013)
64,363,622
Wire-line Subscribers
According to the Department of Telecommunications,
Government of India, the state had 4,266 telephone
exchanges and 130,282 public call offices (PCOs) as of
March 2012.
Wireless Subscribers
2,239,363
Broadband Subscribers
1,342,750*
Telephone Exchanges
4,266**
Public Call Offices (PCOs)
Optical fibre cable networks of BSNL with 44,500 km,
Reliance with 6,000 km, Bharat with 3,450 km and TATA
with 1,700 km provide a wide range of communication
networks to Andhra Pradesh.
As of January 2013, there were 16,165 post offices in the
state.
130,282**
Sources: Telecom Regulatory Authority of India,
Department of Telecommunications, Annual Report 2011-12,
Ministry of Communications & Information Technology, India Post
*As of December 2011
**As of March 2012

24. Under the Jawaharlal Nehru National Urban Renewal
Mission (JNNURM), 52 projects worth around US$ 1,159.4
million were sanctioned for Hyderabad, Visakhapatnam,
Vijayawada and Tirupati.
Water supply
•
Some of the key areas of development are roads/flyovers,
water supply, storm water drainage, solid-waste
management and mass rapid transport system.
As of March 2013, 20 projects worth US$ 223.4 million were
completed. These projects, which were related to roads,
water supply, drains/storm water drains and sewerage, are
located in Hyderabad, Vijayawada and Vishakhapatnam.
•
The state has 170 urban local bodies (ULBs), comprising 19
corporations, 113 municipalities and 38 nagar panchayats.
Sources: JNNURM, Ministry of Urban Development,
www.urbanindia.nic.in, Hyderabad Metropolitan Development Authority
Andhra Pradesh Socio-Economic Survey 2012-13
LPCD: Litres per capita per day, MLD: Million litres per day
Average water supply in
various urban local
bodies (ULBs) increased
to 85 LPCD from 63
th
LPCD during the 11 fiveyear plan (2007-12).
During 2007-11, 43 water
supply schemes with an
estimated cost of US$
191.8 million were
completed, adding 370.44
MLD of water and raising
installed capacity to
1,599.68 MLD from
1,229.24.
Sewerage system and
solid-waste
management system
•
Solid waste
collection efficiency
is 95.0 per cent
across the cities of
Andhra Pradesh.
•
Area coverage of the
sewerage system in
the major cities
varies from 10 per
cent to 45.0 per cent.
Some of the urban development projects in Hyderabad
•
•
•
•
Outer Ring Road Project
P.V. Narasimha Rao Elevated Expressway
Flyover at Lunger House Junction
Hussain Sagar Lake and Catchment Area Improvement
Project

25. Sector
PPP Type
Project Cost
(US$ million)
Stage
Ports
BOOT
3,652.2
Construction
Energy
BOO
3,650.3
Construction
Gangavaram Port
Ports
BOT-Toll
358.6
Construction
Four-Laning of Cuddapah Kurnool Road
Roads
BOT-Toll
347.8
Construction
Urban development
DBFOT
195.0
Construction
Four-laning of Hyderabad Karimnagar
Ramagundam Road
Roads
BOT-Toll
295.2
Bidding
Narketpally Addanki Medaramitla Road
Roads
BOT-Toll
260.2
Bidding
Urban development
Lease
54.3
Bidding
Tourism
Lease
13.0
Bidding
Four-Laning of Khammam Tallada Devarapalli
road
Roads
BOT-Toll
143.5
EOI
Four-Laning of Perecherla Thokapalli road
Roads
BOT-Toll
113.5
EOI
Four-Laning of Warangal Khammam road
Roads
BOT-Toll
103.5
EOI
Project Name
Vodarevu Nizampatnam ports and portbased corridor Development
Krishnapatnam Ultra Mega Power Project
Integrated solid waste management for Hyderabad
Bus Terminal and Commercial Development at
Musheerabad
Health spa and resort
Source: www.pppindiadatabase.com; P-P-P: Public-Private Partnership
EOI: Expression Of Interest, BOOT: Build-Own-Operate-Transfer, BOT: Build-Operate-Transfer,
DBFOT: Design-Build-Finance-Operate-Transfer, BOO: Build-Own-Operate

26. State received “in-principle” approval from the central government in January 2013 for
setting up two National Investment and Manufacturing Zones (NIMZs).
• The two NIMZs are proposed to be set up in Chittoor and Medak districts and would be
spread over an area of 50 sq km each.
•
Two new NIMZs
State-of-the-art
infrastructure
Investments up to US$
5.5 billion
Total employment
potential of around 0.6
million
•
The state would develop NIMZs as integrated industrial townships, with state-of-the-art
infrastructure and land use on the basis of zoning, clean and energy efficient technology,
necessary social infrastructure and skill development facilities.
•
NIMZs could attract investments of US$ 5.5 billion.
•
Andhra Pradesh expects these NIMZs to have an employment potential of 0.3 million
each.
NIMZ: National Investment and Manufacturing Zones

27. Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is the agency responsible for the supervision and execution of
SEZs in the state.
Of the projected investments of US$ 19.4 billion, US$ 2.6 billion were achieved during 2012-13.
Andhra Pradesh has the highest number of operational SEZs in India. There are 38 operational SEZs in the state as of
December 2012.
Some of the operational SEZs in Andhra Pradesh
Name/Developer
Visakhapatnam SEZ
Location
Primary Industry
Vishakhapatnam
Multi-product
Nanakramguda
IT/ITeS
Achutapuram, Visakhapatnam
Textile
Mandal, Visakhapatnam
Pharmaceuticals
CMC Limited
Ranga Reddy District, Hyderabad
IT/ITeS
DivyaSree NSL Infrastructure Pvt Ltd
Ranga Reddy District, Hyderabad
IT/ITeS
DLF Commercial Developers Ltd
Ranga Reddy District, Hyderabad
IT/ITeS
Hyderabad Gems SEZ Ltd
Ranga Reddy District, Hyderabad
Gems and jewellery
Mandal
IT/ITeS
Pocharam, Rangareddy
IT
Medak
Bio-technology
Andhra Pradesh Industrial Infrastructure Corporation Ltd
Brandix India Apparel City Private Ltd
Ramky Pharma City Pvt Ltd
L&T Phoenix Info Parks Pvt Ltd
Infosys Technologies Ltd
Vivo Bio Tech Ltd Medak Dist
Source: www.sezindia.nic.in, SEZ: Special Economic Zone

28. Wipro Limited,
Manikonda, Mandal*
•
•
•
IT SEZ with exports worth US$ 763.5 million over FY 2008-11
Investments of US$ 65.3 million made and US$ 64.5 million projected
9,018 direct employment opportunities generated, with an estimated employment of 7,000
Divi’s Laboratories
Limited, Chippada
Village, Visakhapatnam*
•
•
•
Pharmaceutical SEZs with exports worth US$ 439.4 million over FY 2008-11
Investments of US$ 65.3 million made and US$ 64.5 million projected
6,912 direct employment opportunities generated, with an estimated employment of 1,500
Hyderabad Gems
Limited, Hyderabad*
•
•
•
Gems and jewellery SEZs with exports worth US$ 724.3 million over FY 2009-11
Investments of US$ 44.8 million made and US$ 46.0 million projected
6,912 direct employment opportunities generated, with an estimated employment of
10,098
Source: Department of Commerce, www.sezindia.nic.in
SEZ: Special Economic Zone, * As of FY2012

29. Andhra Pradesh has six SEZs with valid in-principle approvals, as of January 2013.
SEZs with valid in-principle approvals
Name/Developer
Location
Primary Industry
NH-5 between Prakasam and
Nellore District
Building materials
Ananthapur
Multi-product
Sadasivpet, Medak
Strategic
Manufacturing
M/s Drugs & Pharmaceuticals Manufactures
Association
Nakkapalli Mandal, Visakhapatnam
Pharmaceuticals /APIs/formulations
M/s Vivimed Labs Ltd
Boyapalem, Naruva & Chittivalasa
villages, Ranasthalam Mandal,
Srikakulam
Chemicals &
Pharmaceuticals
Visakhapatnam
Petroleum and oil & gas
industry
South Coast Infrastructure Development Co of
Andhra Pradesh Private Ltd (SCIDCAP)
Lepakshi Knowledge Hub Private Ltd
M/s Sri Kubera Infracom India Ltd
M/s Planet SEZ Private Limited
Source: www.sezindia.nic.in

30. There are 109 SEZs with formal approvals in the state, as of January 2013.
Some of the SEZs with formal approvals
Name/Developer
WIPRO Ltd
APIIC
M/s Krishnapatnam Infratech Pvt Ltd
Deccan Infrastructure and Land Holdings Ltd
Rassai Properties & Industries Ltd
Infosys Technologies Ltd
Andhra Pradesh Industrial Infrastructure
Corporation Ltd (APIIC)
Stargaze Properties Private Ltd
Location
Primary industry
Hyderabad
IT
Visakhapatnam
Multi-product
Chillakur Mandal, Nellore
Multi-product
Mahabubnagar
Agriculture and livestock
Hindupur, Anantapur
Multi-services
Pocharam Village, Ghatkesar Mandal,
Rangareddy
IT
Nellore
Leather
Kancha Imarath, Maheswaram
IT/ITeS/electronic hardware
Source: www.sezindia.nic.in

31. The state has a literacy rate of 67.7 per cent, according to
the provisional data of Census 2011; the male literacy rate
is 75.6 per cent and the female literacy rate is 59.7 per cent.
Number of
colleges (2012-13)
Colleges
Government junior colleges
During 2012-13, 13.39 million students were enrolled in
102,436 schools. There were 66,721 primary schools,
15,579 upper primary schools, 19,053 high schools and 903
higher secondary schools. Number of teachers totaled
495,111.
812
Private-aided junior colleges
225
Private un-aided junior colleges
3,889
Government degree colleges
252
Aided-degree colleges
179
For polytechnic and engineering students, 25 skill
development centres have been planned in 23 districts in
the state.
Course
Number of
colleges
(2012-13)
Number of
students
enrolled
Andhra Pradesh increased projected expenditure on
education in the 12th five-year plan (2012-17) by more than
fourfold to US$ 5,615 million from US$ 1,248 million
incurred during 2007-12.
Engineering
707
335,000
Master of Computer
Application (MCA)
644
46,795
The University of Hyderabad and the Osmania University
are among the leading universities in the country.
Master of Business
Administration (MBA)
926
86,905
Bachelor of Pharmacy
290
29,520
Polytechnics
263
76,000
Source: Andhra Pradesh Socio-Economic Survey 2012-13

32. At the intermediate college level, courses are available in
science, arts and commerce streams.
Vocational courses are offered in the fields of agriculture,
engineering and technology, home science, paramedical,
business and commerce, and humanities.
Life-Sciences institutes
•
•
•
•
Over 2012-13, there were 6,136 junior colleges (aided and
unaided, regular and vocational), with a total enrolment of
1.02 million students.
The Department of Technical Education, Government of
Andhra Pradesh, supports 707 engineering colleges.
During 2012-13, three new government polytechnic
institutes and two new engineering colleges were
sanctioned.
•
•
•
•
Centre for Cellular and Molecular Biology
Centre for DNA Fingerprinting and Diagnostics
Indian Institute of Chemical Technology
International Crop Research Institute for the SemiArid Tropics (ICRISAT)
Directorate of Rice Research
National Academy of Agricultural Research
Management
National Institute of Nutrition
Indian Council of Agricultural Research Centers
Source: Andhra Pradesh Socio-Economic Survey, 2012-13

33. Andhra Pradesh Vaidya Vidhana Parishad (APVVP) is fully
responsible for the management of secondary level
hospitals.
APVVP covers 1,624 primary health centres (PHCs), 292
community health centres (CHCs), 91 area hospitals, 17
district hospitals, 12,522 sub-centres and 272 urban health
centres.
Health Indicators (2010-11)
Apollo Hospital
Yashoda Hospital
Care Hospital
Wockhardt Kamineni Hospital
Nizam’s Institute of Medical Sciences
APVVP controls 234 hospitals equipped with 16,184 beds.
MNJ Institute of Oncology and Regional Cancer
Centre
Basavatarakam Indo American Cancer Hospital &
Research Institute
Health indicators (2011)
Global Hospitals
Birth rate*
17.5
Death rate*
7.5
Mediciti Hospitals
Infant Mortality Rate**
43
L V Prasad Eye Institute
Medwin Hospitals
Krishna Institute of Medical Sciences
Life expectancy at birth (years)
Male (2002-06)
62.9
Female (2002-06)
65.5
Sources: Ministry of Health and Family Welfare, Government of India,
Sample Registration System (SRS) Bulletin 2012
(www.censusindia.gov.in)
*Per thousand persons, ** Per thousand live births

34. There are several sports complexes in Hyderabad,
Visakhapatnam, Tirupati and other cities. Although
swimming and tennis are the major sports, other games are
also popular.
Major stadiums and sports complexes in
Hyderabad
Swarnandhra Pradesh Sports Complex
The Boulders Hill in Hyderabad, The Army Golf Course in
Secunderabad and the East Point Golf Club in
Visakhapatnam are well-known golf courses in the state.
The Tirupati temple in Southern Andhra Pradesh makes the
state one of the leading religious tourism spots in the
country.
G. M. C. Balayogi Athletic Stadium
Gachibowli Indoor Stadium
Fateh Maidan Sports Complex
The Lal Bahadur Stadium
Aquatics Complex
In Hyderabad, Andhra Pradesh Tourism has promoted
convention centres including Taramati Baradari, Hyderabad
International Convention Centre, Shilpa Kala Vedika,
HITEX, Marriott Convention Centre, Ramoji Film City and
Katriya De Royal – Convention facilities.
Kuchipudi is the classical dance form from Andhra Pradesh.
It is known for its graceful movements and strong
narrative/dramatic character.
Kotla Vijay Bhaskar Reddy Indoor Stadium
SAAP Tennis Complex, Fateh Maidan
Shooting Range, Hyderabad Central University
Rajiv Gandhi International Cricket Stadium

35. Natural resources, policy incentives and infrastructure in the
state are favourably suited for investments in major sectors
such as drugs and pharmaceuticals, biotechnology, IT and
ITeS, mines and minerals, textiles, leather and tourism.
Andhra Pradesh is one of the foremost states to have
developed sector-specific policies.
Forming industrial clusters and developing infrastructure,
such as biotech parks, textile parks, leather parks, auto
parks, fab city and hardware parks, has been the state’s key
strategy to attract investments in various industries.
Andhra Pradesh has shortlisted three new industries to
develop under the cluster model during the 12th five-year
plan (2012-17): marine food processing at Bheemavaram,
leather at Nellore and precision & engineering tools at
Hyderabad.
Key industries in Andhra Pradesh
•
•
•
•
•
•
•
•
•
Agro and food-based industry
Biotechnology
Bulk drugs and pharmaceuticals
IT and ITeS
Mines and minerals
Textiles and leather
Tourism
Automotive & auto components
Gems and jewellery

36. 98,920 clearances with proposed investments of US$ 83.8 billion have been granted as of October 2012 under the Industrial
Single Window Clearance Act, which was enacted in 2002 to create an investor-friendly environment in the state.
As of October 2012, the state received 7,632 proposals for large-scale industries. Of these, 3,206 proposals have been
utilised for production with an investment of US$ 15.6 billion; providing employment opportunities to 516,403 people. 548
proposals with an investment of US$ 21.5 billion are under the implementation stage.
During the Partnership Summit of 2012, the state received 234 proposals worth US$ 119.7 billion.
The state government has projected investments of US$ 20.6 billion in large industries and US$ 6.2 billion in MSMEs during
the 12th Five-Year Plan.
Source: Andhra Pradesh Socio-Economic Survey, 2012-13
MSMEs: Micro, Small & Medium Enterprises

37. Large scale industries proposals
established
MSMEs
proposals established
Investments^
Employment
Investments^
Employment
2005-06
350.0
10,875
55.3
15,832
2006-07
1,218.2
26,193
195.7
36,019
2007-08
1,570.8
23,075
537.0
79,258
2008-09
1,237.2
25,058
572.4
85,211
2009-10
2,448.9
11,933
932.9
64,844
2010-11
2,063.4
20,626
1,076.4
104,620
2011-12
1,816.2
21,543
1,018.1
120,435
2012-13*
977.1
12,959
286.1
52,932
Source: Andhra Pradesh Socio-Economic Survey, 2012-13
*Till August 2012, MSMEs: Micro, Small & Medium Enterprises
^ In US$ million

38. The share of IT exports from Andhra Pradesh accounts for
around 12.4 per cent of national IT exports. The IT sector
contributes about 39.0 per cent to total exports from all
sectors in the state.
The IT industry recorded a turnover of US$ 11.1 billion over
2011-12. Of this, exports accounted for 76 per cent and the
remaining 24 per cent was generated from the domestic
market.
Total employment generated by the IT and ITeS industry
in the state increased to 318,624 over 2011-12 from
279,438 during 2010-11.
Exports from IT industry (in US$ million)
Andhra Pradesh has emerged as a state that provides the
right climate for the growth of IT business and is currently
one of the most preferred destinations in the country.
In 2012, the state government unveiled the Electronics
Hardware (EH) policy, 2012-17, aimed at providing
incentives in the areas of industrial electronics,
communication and broadcast equipment, computers and
peripherals and strategic electronics and components.
The EH policy is the first of its kind initiated by any state in
India.
As of January 2013, there were 43 IT/ITeS notified SEZs in
the state.
8,478.5
CAGR
15.6%*
6,491.6
7,685.3
7,081.0
7,062.2
4,103.8
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
Source: Andhra Pradesh Socio-Economic Survey 2012-13
* In Indian rupee terms

39. Andhra Pradesh received “in-principle” approval from the central government in
September 2012 to its ambitious plan of setting up India’s first Information Technology
Investment Region (ITIR).
• ITIR would be developed around Hyderabad and Rangareddy districts on an area of about
202 sq km (78 sq miles) over a period of 25 years.
•
First ITIR in India
Self contained
integrated ITIR
Exports potential of
US$ 43.3 billion
Investment potential of
US$ 40.4 billion
•
ITIR would include SEZs, Industrial parks, free trade zones, warehousing zones, exportoriented units and growth centres.
•
ITIR could generate revenue of US$ 57.2 billion, with exports of US$ 43.3 billion.
•
•
The state expects the project to have an investment potential of US$ 40.4 billion.
Direct employment generated from the project is estimated at 1.5 million once it is fully
functional.
Source: Andhra Pradesh Socio-Economic Survey 2012-13
ITIR: Information Technology Investment Region

40. •
Formerly Satyam Computers, Mahindra Satyam was established in 1987 and has its global
headquarters in Hyderabad and several offices in 39 countries including India. The company
provides software solutions to over 370 customers including four of the top 10 electronics and
electrical equipment manufacturers, three of the top 10 in aerospace and defence firms, two of
the top five chemicals manufacturers, and four of the top five networking and communications
equipment manufacturers.
•
Microsoft India Development Centres (MSIDC) was established in 1998. It is located in
Hyderabad on a 54-acre state-of-the-art campus. MSIDC has offices in nine cities, with 5,800
employees in India. The company focuses on strategic and IP sensitive product development for
Microsoft. It is one of the largest software development centres for Microsoft outside the US. It
has established centres of excellence for storage, networking and mobility, and has filed over
180 patents in the last three years.
•
IBM is a leading global IT services and solutions provider, with operations in over 170 countries
across the world. Products offered by the company’s Indian operations include software,
storage, systems and servers and semiconductors. IBM has been present in India since 1992.
Since inception, IBM in India has expanded its operations considerably, with regional
headquarters in Bengaluru and offices in 14 cities; including a global delivery centre in
Hyderabad.
•
Cognizant was founded as a captive arm of Dun & Bradstreet, with headquarters in the US and
operations in India. The company currently has over 50 development centres (including one in
Hyderabad) and 25 regional sales offices globally. Its services include business process
outsourcing, application and IT infrastructure services and business consulting. It generated
revenue of US$ 7.4 billion in 2012. In December 2009, Cognizant invited 120 personnel from
Invensys Rail in Hyderabad to work on its global product research and development tie-up with
the latter.
Mahindra Satyam
Microsoft
IBM
Cognizant

41. Andhra Pradesh is the hub of the bulk-drugs industry,
accounting for one-third of the national production of bulk
drugs. The state produces a majority of the 500 basic drugs
produced in the country.
Andhra Pradesh accounts for around 40 per cent of
country’s bulk drug exports.
The state ranks first in the manufacturing of bulk drugs
and third in formulations in India.
Some of the key players
•
•
Jawaharlal Nehru Pharma City was set up in Parawada,
Visakhapatnam. This is an integrated industrial park for bulk
drug manufacturers, pharmaceutical companies and fine
chemical manufacturers. The industrial park is spread over
an area of 2,143 acres; of this, 611.37 acres has been
notified as a pharmaceutical SEZ industrial park.
The state government helped to develop the pharmaceutical
and biotechnology industry via specific policies, promoting a
knowledge-based cluster approach with financial incentives
and appropriate infrastructure support.
Presence of related educational infrastructure has helped
the industry. The Biotechnology Incubation Centre was
commissioned in 2008.
•
•
Albany Molecular Research Inc (AMRI)
Novartis
Matrix Laboratories Ltd
Indian Immunologicals Ltd (IIL)
Source: PHARMABIZ Statistics

42. Novartis
•
AMRI’s research centre is located in the ICICI Knowledge Park in Hyderabad. AMRI
provides custom synthesis of scaffolds and building blocks, as well as preparation of
reference standards. A second laboratory for preparing larger amounts of pharmaceutical
intermediates, starting materials and other compounds is now operational as well. The
centre's operations are fully integrated with US-based resources.
•
Novartis has presence in over 140 countries and 115,000 employees. It has been present in
India for over 64 years in the healthcare sector. The company has a healthcare-related
IT/ITeS and R&D facility in Hyderabad. It has a development centre in Hyderabad. The
facility also operates as a global centre for marketing and sales, sourcing, business
planning and analysis. In 2012, the company generated revenue of US$ 56.7 billion.
•
Albany Molecular
Research Inc (AMRI)
Mylan Laboratories Ltd (formerly known as Matrix Laboratories Ltd) is a subsidiary of USbased Mylan Inc. It has four USFDA-approved facilities in Hyderabad and one USFDAapproved facility in Visakhapatnam. It is one of the world’s largest manufacturers and
suppliers of active pharmaceutical ingredients (APIs) for a wide range of therapeutic
categories including antibacterials, central nervous system agents, antihistamine/antiasthmatics, cardiovasculars, antivirals, antidiabetics, antifungals, proton pump inhibitors and
pain management drugs. In 2011, its revenue totalled US$ 671.4 million.
•
IIL produces a range of veterinary vaccines such as Foot and Mouth Disease (FMD)
vaccines, anti-rabies vaccines, bacterial vaccines, canine vaccines and a host of other
combined vaccines. Its range of human vaccines comprises rabies, Hepatitis B, measles,
MMR and DPT. IIL has one of the leading research and development centres in India. The
company has headquarters and manufacturing facilities in Hyderabad, an institute in Ooty
and an overseas office in Vietnam.
Mylan Laboratories Ltd
Indian Immunologicals
Ltd (IIL)

43. Andhra Pradesh is one of the leading cotton producing
states in the country, with production projected to reach a
record of 7.2 million bales over 2012-13 from 5.6 million
bales (bales of 170 kg each) during 2011-12. Medium grade
and superior long staple varieties of cotton are
predominantly grown in the state.
The state government has identified the textile sector as one
of the long-term growth engines. To utilise the potential of
the sector, the government has established five apparel
export parks (AEPs) and seven textile parks. It has proposed
to establish another five AEPs and 12 textile parks in the
state.
Andhra Pradesh has emerged as a large textile
processing centre. There are over 100 units with an
annual processing capacity of about 13 million metres of
cloth.
The number of power looms totaled 50,000, and 0.7
million families depend on the textile and clothing sector.
Handloom and textile exports (in US$ million)
479.3
CAGR
27.6%*
340.2
There are over 150 spinning mills including a number of 100
per cent export-oriented units with state-of-the-art
machinery; producing cotton, synthetic and blended yarns.
Between April 2006 and February 2012, 55 handloom
clusters were sanctioned under the Integrated Handlooms
Development Scheme (IHDS).
404.7
272.6
150.2
2006-07
149.2
2007-08
2008-09
2009-10
2010-11
2011-12
Apparels, fabrics and furnishings have been identified as
potential products for exports by the state.
Source: Andhra Pradesh Socio-Economic Survey 2012-13,
Cotton Corporation of India, * In Indian rupee terms

44. A variety of agro-climatic conditions in the state make it
conducive for growing a variety of horticulture crops such as
fruits, vegetables, spices, tuber crops, plantation crops and
floriculture.
Agro-based and forest products exports
(in US$ million)
2,455.6
CAGR
19.2%*
Andhra Pradesh is one of the largest producers of rice in
India. It is a leading producer of cash crops such as tobacco,
groundnut, dry chilly, turmeric, oilseeds, cotton, sugarcane
and jute.
1,511.7
1,392.8
1,263.1
During 2012-13, total area under food grains in the state is
estimated to be 6.6 million hectares.
The state government received a proposal to set up an
mega agro and food processing park in Nizamabad district
that remains subject to sanction from the Union Agricultural
Ministry.
1,230.3
2008-09
2009-10
1,080.6
2006-07
2007-08
2010-11
2011-12
Source: Andhra Pradesh Socio-Economic Survey 2012-13
* In Indian rupee terms

45. The state is one of the largest producers of horticulture products, with an estimated production of 28.9 million tonnes over 201213. Exports from horticulture stood at about US$ 148.0 million over 2011-12.
Andhra Pradesh ranks first in the production of spices, fruits and crops including citrus, papaya, oil palm and tomato.
The state produces some of the finest varieties of mangoes, grapes, guavas, papayas and bananas.
Horticulture exports break-up, 2011-12
Floriculture and
seeds 6%
Horticulture production (in million tonnes) and
area (in million hectares)
Cocoa products
2%
35.0
2.5
26.6
Pulses 10%
30.0
Other fresh
vegetables 13%
Processed fruits,
vegetables 34%
2.7
27.3
2.0
1.9
28.9
2.0
19.1
20.5
20.4
1.0
2011-12
2010-11
2009-10
Production (LHS)
Area (RHS)
2012-13**
Other fresh fruits
18%
2008-09
0.0
2007-08
15.0
Onions 17%
3.0
2.0
25.0
20.0
2.6
Source: Andhra Pradesh Socio-Economic Survey, 2012-13
**Advanced estimates

46. •
ConAgra Foods Inc, US, is one of the world’s leading food companies. It has partnered with
Agro Tech Foods Ltd (formerly ITC Agro) and established an R&D centre to adapt food
technologies to Indian conditions. The company has a dominant market position in edible
oils and branded foods sectors. Brands include Sundrop, Healthy World, ACT II and Rath.
Agro Tech Foods Limited, an affiliate of ConAgra Foods, has its registered office at
Secunderabad.
•
Cargill maintains a number of businesses in India, with operations including handling and
processing of a wide range of products such as refined oils, grain and oilseeds, sugar,
cotton and animal feed. Cargill’s presence in India has been growing since it began a joint
venture (JV) operation in 1987. In 2006, it entered into a JV and subsequently owned a
leading shrimp feed manufacturing farm in Rajahmundry. It has also entered into a JV with
EID Parry for a sugar refinery at Kakinada in the state.
•
ITC is a large Indian business conglomerate with diverse business interests including agrifoods, paper, fast moving consumer goods, lifestyle and retailing and hotels. Over 2011-12,
its revenue totalled around US$ 7.27 billion. A substantial part of ITC’s agri-business is
located in Andhra Pradesh. The company has a unit in Anaparti and Chirala, and a research
centre in Rajamundhry. The company also runs its innovative internet-based “e-choupal”
initiative in the state for the benefit of farmers.
•
APDDCF runs 12 dairy plants and manufactures milk products under the Vijaya brand.
These plants together have a production capacity of 2,437 thousand litres per day. Products
include butter, ultra-high-temperature (UHT) milk, milk powder, ghee, flavoured milk, khoa,
kulfi and processed cheese. It is one of the 15 dairy cooperatives operating under the
National Dairy Development Board (NDDB).
ConAgra Foods
Cargill India Pvt Ltd
ITC
Andhra Pradesh Dairy
Development Cooperative
Federation (APDDCF)

47. •
Forestry sector
Andhra Pradesh has 6.38 million hectares of forest area, which accounts for 23.2 per cent
of the total geographical area of the state.
• Major products include timber, bamboo, firewood & charcoal and beedi leaves.
• During 2012-13, the contribution of forestry and logging to GSDP was estimated at US$
1,566 million.
•
Fisheries sector
The fisheries sector has been identified as one of the six growth engines in the agriculture
sector under Vision-2020 of the state.
• Andhra Pradesh ranks first in the production of brackish-water shrimp and fresh-water
prawns, contributing around 40 per cent to the country’s total marine exports.
• Total production of fish and prawns in the state expanded at a CAGR of 11 per cent over
FY 2008-12 to reach 1.60 million tonnes.
• The contribution of fisheries to GSDP was estimated at US$ 3.0 billion during 2012-13.
•
Fisheries sector
developments
The state government entered into an agreement with US-based World Tuna
Development International (WTDI) to develop a tuna fishery in the Bay of Bengal
• The government sanctioned US$ 2.94 million for the construction of four fish landing
centres in the state under Assistance to States for Developing Export Infrastructure and
other Allied Activities (ASIDE) funds.
Source: Andhra Pradesh Socio-Economic Survey, 2011-12, www.aponline.gov.in

48. Animal husbandry is rapidly expanding in the state and is
playing a significant role in improving the rural economy.
The sector provides gainful employment to a large number
of small and marginal farmers and agricultural labourers,
and enhances their economic status.
Production
(2011-12)
Product
Milk (million
tonnes)
12.1
20,128
0.82
Meat (million
tonnes)
11.2
21,210
Egg (in million)
Activities of the animal husbandry department have been
oriented towards improving health of livestock and increased
production of milk, eggs and meat.
Production
(2010-11)
0.75
Milk and egg production
As of 2011-12, the state had 5,045 institutes supporting
production in the animal husbandry sector and 5,305
institutes for health of livestock.
17.6
19.4
20.1
9.6
10.4
11.2
2008-09
2009-10
2010-11
18.3
21.2
15.9
Livestock was estimated to account for 28.5 per cent of the
agriculture sector and 5.3 per cent of GSDP over 2012-13.
12.1
7.9
2006-07
8.9
2007-08
Milk (million tonnes)
2011-12
Egg (in billion)
Source: Andhra Pradesh Socio-Economic Survey 2012-13

49. According to the Ministry of Petroleum and Natural Gas, the net natural gas production was about 1,353 million cubic metres
during 2011-12. The state’s Krishna-Godavari basin area has a total hydrocarbon resource base of 1,130 million metric
tonnes.
Andhra Pradesh is the second Indian state, after Gujarat, to enter the oil and gas exploration and production segment
through bids for oil and gas blocks under the central government’s New Exploration Licensing Policy (NELP).
The Andhra Pradesh government decided to enter the oil and gas exploration and development sector and set up a special
purpose vehicle (SPV), the Andhra Pradesh Gas Infrastructure Corp. Limited (APGIC), as a joint venture between two stateowned entities. The infrastructure provider for industries in the state, Andhra Pradesh Industrial Infrastructure Corporation
(APIIC), owns 51.0 per cent in the SPV and the remaining is held by AP Genco.
APGIC secured four blocks under auction as part of consortium led by ONGC. APGIC owns 10 per cent in the consortium,
while other partners ONGC, British Gas and Oil India hold 40 per cent, 35 per cent and 15 per cent, respectively.
Hindustan Petroleum Corporation is setting up a diesel hydro-treater unit of 2.2 MMTPA at Visakhapatnam refinery with an
investment of US$ 569.4 million. The project is presently in the completion stage.
MMTPA: Million metric tonnes per annum

50. In October 2009, the Department of Petrochemicals,
Government of India, signed a Memorandum of Agreement
(MoA) with the Andhra Pradesh Government for setting up a
Petroleum, Chemicals and Petrochemicals Investment
Region (PCPIR) in the Visakhapatnam-Kakinada region as
an industrial cluster. The state government is in the process
of finalising the master plan and obtaining environmental
clearances.
Anchor projects in PCPIR
Other major investors in PCPIR
Key features of PCPIR
The investments generated in the PCPIR are estimated
to be around US$ 72.3 billion.
Total area of PCPIR is 603.58 square km.
The project is said to have an employment generation
capacity of 1.2 million.
As per the latest update, total committed investments
stood at US$ 35.8 billion.
The petroleum and petrochemical sector accounted for
around 28 per cent of total committed investment.
The state government is investing around US$ 3.95
billion to develop external infrastructure in Andhra
Pradesh.
PCPIR: Petroleum, Chemicals and Petrochemicals Investment Region
Source: http://www.appcpir.com/

51. Andhra Pradesh is known for its pristine beaches, sacred
places of worship, lush green forests, spicy cuisine and
hospitable people.
With tourist attractions such as Charminar, Golconda Fort,
Ramoji Film City, Araku Valley, Borra Caves, Tirupati Balaji
Temple and Puttaparthi Saibaba, the state offers attractive
investment opportunities to developers and investors.
Arrival of international tourists in Andhra Pradesh
(in ‘000s)
770.0
789.0
795.2
322.8
264.6
Andhra Pradesh is ranked 13th in international tourist
arrivals and accounted for 1.4 per cent of total international
tourist arrivals in India in 2011. With 18.0 per cent share of
domestic travelers, the state is ranked second in domestic
tourist arrivals.
The Ministry of Tourism approved 40 projects during the 11th
five-year plan period (2007-12, up to March 2011) at a
project outlay of US$ 44.3 million and 11 projects over 201213 with an outlay of around US$ 10.7 million (including the
recently approved Visakhapatnam-Bheemunipatnam Beach
Corridor Mega Circuit).
The state government has identified Hyderabad,
Visakhapatnam, Tirupati, Vijayawada, Nagarjunasagar and
Warangal for tourism development.
2007
2008
2009
2010
2011
Arrival of domestic tourists in Andhra Pradesh
(in million)
157.5
155.8
153.1
127.9
2007
132.7
2008
2009
2010
2011
Source: Ministry of Tourism, Government of India

52. The Union Ministry of Tourism is planning to set up the
Southern Zonal Tourism Council (include Andhra Pradesh,
Kerala, Karnataka, Tamil Nadu and the Union Territory of
Puducherry) to develop integrated tourism circuits.
Andhra Pradesh has ventured into the development of ecotourism with private developers on the basis of design, build,
finance, operations and maintenance.
Upcoming mega
projects
•
Kadapa Heritage Circuit
•
Tirupati Heritage Circuit
•
Charminar Area
•
Buddhavanam Project at
Nagarjuna Sagar
•
VishakapatnamBheemunipatnam Beach
Corridor Mega Circuit
Current & upcoming
eco-tourism projects
•
Hyderabad Botanical
Garden
•
Mahavir Nischal Van
•
Night safari and Eco-park,
Kothaguda (upcoming)
•
Bird park, Kothaguda
(upcoming)
•
Mrugavani National Park,
Chilkur (upcoming)
Sources: Ministry of Tourism, Government of India
Andhra Pradesh Socio-Economic Survey, 2012-13

53. The state is a major producer of hides and skins, producing
around 19 million pieces per annum, constituting around
10.0 per cent of the country’s output.
Leather Industries Development Corporation
(LIDCAP)
•
Around 34 large and medium tanneries in the state produce
about 40 million sq ft of processed hides and skins per
annum.
Nodal agency for leather industry development in the
state
•
Plans to establish 72 mini-industrial parks on 25 acres of
land each for processing raw material, 16 medium
industrial parks of 100 acres each for processing semifinished leather and six mega industrial parks of more
than 300 acres each, including an International Leather
Complex at Krishnapatnam (KILC)
•
KILC has world class infrastructure for leather tanning
and leather processing. The project finance is supported
by the Government of India, Government of Andhra
Pradesh and has private participation in the Special
Purpose Vehicle (SPV)
•
KILC is located in Krishnapatnam in the Nellore district in
an area of 412 acres near the sea coast. It is proposed
that KILC would house about 25 tanning units in a floor
area of 250 acres of land and about 21 leather
processing units with capacities ranging between six and
25 tonnes and a total capacity of 300 tonnes over a floor
area of 220 acres.
Hyderabad and Nellore are the key leather production
clusters in the state.
The government provides financial assistance in the form of
investment grants to the extent of 30.0 per cent of cost of
plant and machinery for small scale industries (SSI) and
20.0 per cent of cost of plant and machinery for other units,
subject to a ceiling of US$ 120,000 for technology
upgradation or/and expansion.
Source: Leather Sector in AP, ILC Profile, LIDCAP
Website: www.lidcap.org, www.aponline.gov.in

54. The state’s mineral production was estimated at US$ 3.1
billion over 2011-12.
Andhra Pradesh contributed about 7.0 per cent to the
country’s mineral value production during 2011-12.
Share of the national mineral reserves (%) in
India
Corundum
70.0
61.0
Calcite
42.0
Mica
The Government of India has started exploration of sizable
uranium deposits in Kadapa and Nalgonda districts in
Andhra Pradesh through M/s. Uranium Corporation India
Ltd, a public sector undertaking.
78.0
Ball Clay
Andhra Pradesh has the highest deposits of barytes,
limestone and beach sand heavy minerals in the country.
94.0
Kyanite
The state received around US$ 0.5 billion of revenue from
minerals during 2011-12.
Barytes
41.0
Garnet
26.0
Ilmenite
23.0
Limestone
20.0
Dolomite
15.0
Diamond
6.0
Sources: Indian Mineral Scenario - States, Ministry of
Mines Website, www.mines.nic.in

55. Coal is the major mineral produced in the state. Coal contributed 32.8 per cent to total revenue generated from mineral
production in the state over 2011-12.
Andhra Pradesh is the second largest cement producer in the country, with an installed capacity of 50 million tonnes per annum
across 42 plants.
Value of exports (in US$ million)
Andhra Pradesh - Minerals revenue (in US$ million)
600.0
1,840.5
40.0%
501.1
500.0
476.3
412.7
400.0
382.2
328.3
415.7
35.0%
30.0%
300.0
25.0%
200.0
960.4
20.0%
863.4
680.9
738.0
673.7
100.0
15.0%
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
All minerals (LHS)
Coal as a % of total production (RHS)
Sources: Andhra Pradesh Socio-Economic Survey 2012-13

56. Hyderabad is one of the leading hubs for the jewellery
sector in India. The state produces a wide array of precious
and semi-gems as well as pearls.
Andhra Pradesh Gems and Jewellery Park is a joint venture
between the IOI Corporation and Andhra Pradesh State
Trading Corporation. It has been developed as a state-ofthe-art facility, in which the floor space would be sold to
jewellers and pearl dealers.
The state has an estimated reserve of 12.10 million tonnes
of gold ore and 1.82 million carats of diamond.
In the state, diamond is mostly found at Cuddapah,
Anantapur, Bellary, Kurnool, Kistna, Godavary and Guntur
districts.
Hyderabad Gems SEZ Limited (HGSEZ)
•
Spread across 200 acres, the Hyderabad SEZ
houses about 75-100 diamond, gold and watch
manufacturing units.
•
The SEZ has a training centre for manufacturing
jewellery and cutting and polishing of diamonds.

57. M&M tractor manufacturing plant in Medak
Entry of automobile manufacturers
•
One of India’s largest automobile manufacturers
Mahindra and Mahindra (M&M) inaugurated Asia’s
largest tractor manufacturing plant at Medak district,
Andhra Pradesh in March 2013.
•
The facility has been set up with an investment of
around US$ 55 million and has a production capacity of
0.1 million tractors per year.
•
M&M is planning to set up a passenger vehicle plant in
the state.
•
Japanese auto manufacturer Isuzu Motors Ltd
announced plans to set up a light commercial vehicle
(LCV) manufacturing plant in Chittoor district in 2013,
with an estimated investment of US$ 276 million.

58. •
•
Hospitality, leisure and
entertainment
•
•
•
•
•
•
Retail
•
•
•
Being a major tourist hub in the country, the state is making rapid strides in the retail and
entertainment segment.
The sector is attracting investments in projects such as world-class spas, entertainment
centres, mega shopping malls, multiplexes, business convention centres and theme parks.
Urban entertainment, including amusement parks, has redefined leisure and entertainment
activities in the state.
Hotel projects under development include Taj GVK Hotels & Resorts, Pride Hotel, Duet
India Hotels Ltd, Hotel Leela Ventures (all at Hyderabad), Svenska Hotels Ltd (port town).
APTDC has planned to invest US$ 62.6 million to implement nine hotel projects and
develop new facilities, including three eco-tourism sites.
Organised retail is catching up fast with significant mall development in the pipeline.
Shopping malls are being developed in suburban and peripheral areas followed by central
business district.
Reliance Retail opened its first 'Reliance Fresh' stores in Hyderabad and Secunderabad in
late 2006.
Reebok has opened its largest store in the world in Hyderabad.
GVK Group opened ‘GVK one’,a world-class shopping space measuring over 700,000 sq
ft in Hyderabad in May 2009.
‘GVK one’ also hosts a 1,257-seat INOX multiplex, along with a themed entertainment
centre Funzone in Hyderabad.
APTDC: Andhra Pradesh Tourism Development Corporation

59. •
Electronics hardware
Key segments within electronics hardware industries in the state include
telecommunications, industrial electronics, test and measuring equipment, computer and
consumer electronics and strategic electronics.
• There is immense scope for investments in the fields of nanotechnology, semiconductors,
computer peripherals, appliances, precision engineering, integrated circuits, large scale
integration chips (LSICs) and very large scale integration chips (VLSICs).
•
Semiconductors
An investment of US$ 3 billion has been announced for setting up a fabrication unit in Fab
City, Hyderabad, to manufacture semiconductors used in computers, mobile phones and
other digital devices
• Fab City has been allotted 1,050 acres, close to the new international airport.
• The Electronics Hardware Policy of the state offers various incentives, such as
exemptions, reimbursements and facilitating technical education to promote the industry.

60. 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 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.
The maximum time taken to issue clearance of applications at all stages is 45 days. 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.

61. Agency
Description
•
The SIPB has been created by the Government of Andhra Pradesh with the state Chief Minister
as Chairman and members (consisting of Finance Minister, Minister for Revenue, Minister for
Major Industries, Minister for Energy, and other ministers) connected with specific projects as
special invitees as well as the Chief Secretary to Government as member or convener.
•
The Industries & Commerce Department issues a single order on each project, incorporating the
decisions of the Board. The concerned Departments of Secretariat issue further necessary orders,
with which they are concerned, on the decisions taken by the SIPB.
•
Controls the office of Principal Secretary, Industries & Commerce, Commissioner of Industrial
Promotion.
•
They are responsible for SSIs and control the office of the Commissioner of Industries & Export
Promotion, Commissioner Handlooms and Textiles, Commissioner for Sugar and Director, Mines
and Geology.
•
The Industries & Commerce department is headed by the Industries Minister and is controlled by
the Principal Secretary.
State Investment
Promotion Board
(SIPB)
Major Industries,
Commerce and
Export Promotion
Ministry

62. 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)

63. Agency
Contact information
Andhra Pradesh Industrial Infrastructure
Corporation
6th Floor, Parisrama Bhavan
Fateh Maidan Road, Basheerbagh
Hyderabad - 500 004
Phone: 91-40-2323 7622, 2321 2798
Fax: 91-40-2323 3393, 2323 3251
E-mail: hyd@apiic.in
Website: www.apiic.in
Department of Industries and Commerce
Industries and Commerce Department
2nd Floor, D Block, Room No-348A
Secretariat
Hyderabad - 500022
Phone: 91-040-23454449
Fax: 91-040-23452985
E-mail: secy_inds@ap.gov.in
Website: http://industriesportal.apcgg.gov.in/

64. S No
Approvals and clearances required
Respective departments of state
1
Registration, Industrial Entrepreneurs
Memorandum (IEM), Industrial Licenses
Registrar of Firms
2
Allotment of Land/Shed in Industrial
Estates or Industrial Areas
Andhra Pradesh Industrial
Development Corporation
3
Acquisition and alienation of government
lands
Chief Commissioner of Land
Administration (CCLA)
Estimated time
7 days
7 days for up to
1,000 sq m
21 days for above
1,000 sq m
45 days
Panchayat Raj Department
Urban Development Authority
4
Site and Building Plan Approval
7 days
Town and Country Planning
Municipality
Urban Development Authority
5
Change of land use
Town and Country Planning
45 days
Municipality
Source: Commissionerate of Industries, Government of Andhra Pradesh

65. S No
Approvals and clearances required
Respective departments of state
Green
6
Consent for establishment
under Pollution Control
Orange
Estimated time
7 days
AP Pollution Control Board
21 days
Red
Green
7
Consent for operation
under Pollution Control
45 days
7 days
Orange
AP Pollution Control Board
Red
8
No-Objection Certificate for Fire Safety
9
Licence for possession and use of
Rectified Spirit
11
Licence for possession and use of
Denatured Spirit
12
VAT/CST registration
45 days
Permission for Establishment of Distillery
10
21 days
Fire Services Department
15 days
30 days
Excise Department
7 days
7 days
Commercial Taxes Department
7 days
Source: Commissionerate of Industries, Government of Andhra Pradesh

66. S No
Approvals and clearances required
13
Power feasibility
14
Power connection
15
Respective departments of state
Approval of factory plans
Estimated time
7 days
Power Distribution Companies
23 days
7 days
Factories Department
16
Factory license
17
Sanction of water supply
18
Water connection
19
Permission to draw water from rivers
and/or public tanks
7 days
Hyderabad Metro Water Supply and
Sewerage Board
Irrigation Department
7 days
23 days
30 days
Source: Commissionerate of Industries, Government of Andhra Pradesh

67. Parameter
Cost estimate
Land Price (US$ per sq m)
20 to 200
Labour Cost (minimum wages per day)
US$ 2.8 to US$ 5.5
Lease Rent (US cents per sq ft per month)
36.6 to 61.0
Electricity (US cents per kWh)
Commercial: 8.0 to 18.7
Industrial: 7.6 to 12.5
Residential Rent (US cents per sq ft per month)
12.6 to 62.5
Five-Star Hotel Room (US$ per night)
125 to 512
Water Cost (US$ per 1,000 litres per month)
Commercial (Hyderabad ): 0.42 to 1.04
Industrial (Hyderabad): 0.52 to 2.08
Sources: Andhra Pradesh Government Websites and Industry Sources, Ministry
of Labour and Employment, Government of India,
Andhra Pradesh Electricity Regulatory Commission,
Hyderabad Metropolitan Water Supply & Sewerage Board

68. Andhra Pradesh Solar Power Policy -2012
Objectives
•
•
To encourage, develop and promote solar power generation in the state with a view to meet
growing demand for power in an environmentally and economically sustainable manner
To attract investment in the state for the establishment of solar power plants
Read more
Electronic Hardware Policy 2012-2017
Objective
•
To provide special incentives and facilities for the electronic hardware sector in line with the
present ICT policy. The policy would cover areas such as industrial electronics, communication &
broadcast equipments, computers & peripherals, and strategic electronics & components
(semiconductors, solar & displays)
Read more
Food Processing Policy 2010-2015
Objective
•
To provide a special focus to the food processing industry by extending the benefits for five years
from April 2010 to March 2015. The policy would cover areas such as horticulture, agriculture,
animal husbandry, fisheries, agro food processing industries and allied industries
Read more

69. Information and Communications Technology (ICT) Policy 2010-15
Objective
To make Andhra Pradesh one of the fore runners in the IT sector in the country The objective would
be achieved through the following initiatives:
•
Provision of congenial, industry-friendly and proactive climate for IT companies to locate, grow
and sustain their operations in a most competitive and hassle-free environment
•
Creation of employment opportunities for the educated youth of all sections of the society across
regions
•
Achieving higher levels of exports, resulting in enhanced productivity and augmentation of GSDP
•
To spread IT to every nook and corner of the state
Read more
•
Leverage IT as a tool for the socio-economic development of the state.
Industrial Investment Promotion Policy (IIPP) 2010-2015
Objective
•
To build a strong and vibrant industrial economy that spins off large capital formation in the
state and advances inclusive development of all sections of the population and industry that
creates increasing employment opportunities, and raises wage incomes to higher levels
through skill upgradation to improve the quality of life of citizens of the state.
Read more

70. Tourism Policy 2010
•
To position the state competitively for attracting private sector investments in the tourism and
hospitality sectors
•
To target the incentives to the private sector better as per the state government's priorities in
terms of geographical areas and tourism products
•
Objectives
To focus on maximum generation of employment in the sector by the development of Human
Resources through capacity building
Read more
Biotechnology Policy 2001
Objective
•
To undertake a detailed inventory evaluation of bio-resources in the state to encourage research
and development (R&D), develop high-quality infrastructure and provide special incentives to the
biotech industry
Read more

71. Exchange rates
Year
INR equivalent of one
US$
2004-05
44.95
2005-06
44.28
2006-07
45.28
2007-08
40.24
2008-09
45.91
2009-10
47.41
2010-11
45.57
2011-12
47.94
2012-13
54.31
Average for the year

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