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ANDHRA PRADESH - IDOL OF NANDI IN LEPAKI, ANDHRA PRADESH March 2021 For updated information, please visit www.ibef.org
ANDHRA PRADESH

                 IDOL OF NANDI IN LEPAKI, ANDHRA PRADESH
                                                             March 2021
                           For updated information, please visit www.ibef.org
ANDHRA PRADESH - IDOL OF NANDI IN LEPAKI, ANDHRA PRADESH March 2021 For updated information, please visit www.ibef.org
Table of Contents

        Executive Summary           3

        Re-organisation Act, 2014   4

        Introduction                7

        Economic Snapshot           12

        Physical Infrastructure     18

        Social Infrastructure       26

        Industrial Infrastructure   29

        Key Sectors                 32

        Key Procedures & Policies   38

        Appendix                    49

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Executive summary

                     Largest exporter of marine products

       1                Andhra Pradesh accounts for a major share in the overall exports of seafood products from India, in value terms.

                        Andhra Pradesh ranks first in prawn and fish production in the country and fourth in production of marine fisheries.

                     Growth of pharmaceutical industry
                        Various pharmaceutical companies have set up their manufacturing hubs in Visakhapatnam and Srikakulam
                         districts. The state provides ample growth opportunities due to availability of ports along with large parcels of land
                         for expansion, etc.

       2                Out of the 20 operational SEZs in Andhra Pradesh, four are pharmaceutical SEZs, as of October 31, 2020. Exports
                         of pharmaceuticals* from the state stood at US$ 1.48 billion in FY20 and reached US$ 1.46 billion in FY21 (until
                         January 2021).

                     Government initiatives to improve infrastructure
                         The Andhra Pradesh government is taking various initiatives to develop its physical infrastructure in the areas of rail,
                          roads, metros and ports.

       3                 Groundwork for Vizag metro project with 140km-long mass rapid transit system started in October 2020. The project
                          is estimated to cost Rs. 22,000 crore (US$ 2.98 billion) and will be completed by 2028.

                     Tourist destination
                         The state has taken proactive measures to promote ecotourism, which has a huge potential to facilitate job creation
                          and growth.

       4                 While the state has incurred losses due to the ongoing pandemic, it is now making plans to open itself to tourists
                          with new policies.

 Note: P - Provisional, *includes drug formulations, biologicals, bulk drugs and drug intermediates, SEZ- Special Economic Zone
 Source: The Marine Products Export Development Authority (MPEDA), Ministry of Tourism, Government of India, State Budget, AP State Portal, Andhra Pradesh Tourism, DGCIS Analytics

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Reorganisation Act, 2014…(1/3)

     1
         Common capital and Governor
          Greater Hyderabad Municipal Corporation area of Hyderabad would be the common capital for the states for a period not more than 10
           years. However, the new capital city would be Amaravati. Both states to have a common Governor.

     2
         Police forces
          Central Government to provide assistance to raise additional forces.
          New training centre for Seemandhra would be established.t

     3
         High Court
          High Court at Hyderabad would be a common High Court till a separate High Court is established for Seemandhra.
          The expenditure is to be allocated on the basis of population ratio.

     4
         Special development package
                Central Government to make appropriate grants, provide adequate benefits & incentives in the form of a special development
                 package for Seemandhra.
                This will ensure expansion of physical & social infrastructure.

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Reorganisation Act, 2014…(2/3)

     5
         Services of Employees
          For Central Government employees, an advisory committee would be appointed to draw up guidelines and take up the allocation
           exercise.
          For state Government employees, district, zonal and multi-zonal cadres falling in one of the successor states are deemed to be allotted to
           that state; else employees would be allocated based on options.

     6
         Water Resources
          Two separate boards would be created by the central Government for Krishna and Godavari Rivers to look after administration,
           regulation, maintenance and operation of notified projects.

     7
         Energy
          Existing PPAs would continue; units of APGENCO and assets of APTRANSCO would be divided based on location.
          Central power would be allotted on actual energy consumption trend.

     8
         Higher Education
                The Government of India shall establish an AIIMS-type super-specialty hospital-cum-teaching institution.
                Admissions in higher, technical and medical education would be common for 10 years.
                Quotas under article 371-D would also continue.

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Reorganisation Act, 2014…(3/3)

     9
         New Capital
          Central Government to provide financial support for creation of a new capital.
          An expert committee to be constituted by the central Government to study various alternatives & make a recommendation within 6
           months. However, the new capital city would be Amaravati.
          The World Bank, Housing & Urban Development Corporation (HUDCO) and Andhra Bank, sanctioned US$2.61 billion for the
           construction of capital city of Amaravati.
          The state Government is planning to build a new world class capital city, Amaravati, on a 217 sq. km open area in Guntur district. The city
           is being designed with 10% water bodies and 51% green spaces, along with several iconic buildings.

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INTRODUCTION

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Andhra Pradesh fact file

                                                              Hyderabad1,
                                                               Amaravati
                                                                    Capital           304 persons per sq km                    54.0944 million
                                                                                         Population density                      total population

                                                             1,62,970 sq.km.
                                                               geographical area             24.64 million                     24.73 million
                                                                                           female population                   male population

                                                                                                                                     997
                                                                                                                                   Sex ratio
                                                                    67.4%            administrative districts:   13      (females per 1,000 males)
     Key Insights                                                 literacy rate

     • Andhra Pradesh is in the southern peninsula of India and has a coastline of 974 kms. It is eighth largest states in the country.
     • The state of Andhra Pradesh is bound by Chhattisgarh on the north, Odisha on the northeast, Telangana & Karnataka on the west, Tamil Nadu on
       the south and the Bay of Bengal on the east.
     • Visakhapatnam, Vijayawada, Tirupati, Rajahmundry, Guntur, Kakinada, Ongole, Nellore and Kurnool are some of the key cities in the state.
     • Most commonly spoken language is Telugu. Urdu, Hindi, Tamil, Kannada and Oriya are the other languages used.
     • Out of various districts in the state, Krishna district has the highest population density at 518 persons per sq. km.

 Note: 1For ten years
 Source: Andhra Pradesh State Portal, Andhra Pradesh Socio-Economic Survey 2018-19

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Advantage

                                          2 LONG COASTLINE                                                              3 ADEQUATE POWER
                                         A 974-km long coastline provides numerous                                     GENERATION CAPACITY
                                          opportunities for the state to develop several
                                                                                                                       Most of the coal-based power plants are located
                                          ports.
                                                                                                                        in the coastal regions due to their connectivity to
                                         The Visakhapatnam port ranks fourth in terms of                               the ports.
                                          port traffic. During FY20, the traffic handled at
                                                                                                                       The Government of Andhra Pradesh delivers
                                          the port was 72.72 million tonnes.
 1 HIGH ECONOMIC                                                                                                        24X7 reliable and quality power across the
                                                                                                                        industrial commercial and domestic sectors of
 GROWTH                                                                                                                 the state.
 The overall economic growth in                                                                                                             4 GROWTH IN EXPORT
  Andhra Pradesh is driven by the
  agriculture and allied sector,                                                                                                               Exports from the state from April
  which contributed to the highest                                                                                                              2020 to January 2021 stood at
  GVA growth of 15.89% from                                                    2                               3                                US$ 13.17 billion.
  FY12 to FY20, followed by                                                                                                                    Major exports from the state are
  services sector (12.52%) and                                                                                                                  marine, drugs & pharmaceuticals,
  industry sector (6.27%).                                                                                                                      ship boat & floating structure, iron
 The GSDP at current prices for                                                                                                                & steel and rice (other than
  2019-20 was Rs. 9,72,782.11                                                                                                                   Bamoti).
  crore (US$ 138.19 billion) for                            1                                                                       4
  2019-20 as opposed to Rs.
  8,62,957.08 crore (US$ 126.1
  billion) for 2018-19.`

 Note: GSDP: Gross State Domestic Product, GVA: Gross Value Added, AE: Advanced Estimates
 Source: Central Electricity Authority, Directorate of Economics & Statistics of Andhra Pradesh, Central Statistics Office, Andhra Pradesh State Portal, Indian Port Association, Directorate
 General of Commercial Intelligence and Statistics

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Andhra Pradesh in figures

   Andhra Pradesh’s Contribution to Indian Economy (2019-20)                                     Physical Infrastructure in Andhra Pradesh

 GSDP      GSDP as a percentage of all states’ GSDP                                                   Installed power capacity (MW) (as of February 2021)
           India: 100.0 | Andhra Pradesh: 4.80                                                        India: 379130.41 | Andhra Pradesh: 25277.42

           GSDP growth rate** (%)                                                                     Wireless subscribers (million) (as of September 2020)
           India: 9.80 | Andhra Pradesh: 12.14                                                        India: 1,148.58 | Andhra Pradesh: 86.97

           Per capita GSDP* (US$)                                                                     Internet subscribers (million) (as of September 2020)
           India: 1,975.05 | Andhra Pradesh: 2,675.9                                                  India: 776.45 | Andhra Pradesh: 61.12

    Social Indicators
                                                                                                      National highway length (km) (as of December 2020)
                                                                                                      India: 136,440 | Andhra Pradesh: 7,339.95
           Literacy rate (%)                                                                           Major and minor ports (No.)
           India: 73.0 | Andhra Pradesh: 67.40
                                                                                                       India: 12+200 | Andhra Pradesh: 1 + 12
           Birth rate (per 1,000 population) (2018)                                                   Airports (No.) (December 2020)
           India: 20 | Andhra Pradesh: 16.0                                                            India: 125 | Andhra Pradesh: 7
      Industrial Infrastructure                                                                  Investments (as of September 2020)

          Operational PPP projects (No.) (December 2019)                                                Cumulative FDI equity inflows (From October
            India: 1824 | Andhra Pradesh: 85                                                            2019 to December 2020) (US$ million)
                                                                                                        India: 75,351.56 | Andhra Pradesh: 272.76
           Exporting SEZs (No.) (as of October 2020)
           India: 262 | Andhra Pradesh: 24

 Note: GSDP, per capita GSDP figures are taken at current prices, For source refer to Annexure

 10
Vision – 2029

 1 Economic
 Growth                                                              6 Agriculture and
  Increase GSDP per capita to Rs.                                   Fisheries
   5.07 lakh (US$ 7,866.56) by 2029-
   30.                                                               Add value to 40% of total fish
                                                                      produce by 2029.
  Achieve12% annual GSDP growth
   till 2029-30.                                        1   6
 2 Job Creation                                                     5 Start-up
 through MSMEs                                                      Ecosystem
  25,000 new and export oriented                                    Establish 100
   MSMEs
  Share of MSME Employment to be
                                                    2           5     Incubators/Accelerators
                                                                     Incubate 5,000 companies and
   10% by 2029                                                        start-ups

     3 Infrastructure
     Development                                                    4 Social
 •    Construct 24,000 km of roads and highways
                                                        3   4       Development
 •    Increase storage and warehouse capacity to                     Achieve Human Development Index
      62.9 MTPA by 2029                                               (HDI) score of 0.9
 •    As per the Budget 2019-20, Government has
      started a massive school infrastructure                        Receive very high human
      modernization program with an allocation of                     development status
      Rs. 1,500 crore (US$ 210 million).

 Source: Sunrise Andhra Pradesh Vision 2029

 11
ECONOMIC SNAPSHOT

12
Economic snapshot – GSDP

                 GSDP of Andhra Pradesh at current prices                                                                               GDP per capita of Andhra Pradesh at current prices

      160                                                                                                                    12000   3000                                                                                                                            200000
                                                  CAGR (in Rs.) 12.64%                                                                                                                CAGR (in Rs.) 11.98%
                                                                                                                                                                                                                                                                     180000

                                                                                                                                                                                                                                                        188,370.34
      140
                                                                                                                             10000   2500

                                                                                                                                                                                                                                             2,675.94
                                                                                                         138.19
                                                                                                                                                                                                                                                                     160000

                                                                                                                                                                                                                                168,083.42
                                                                                                                                                                                                                     2,456.57
                                                                                                                   9,727.8
      120

                                                                                                                                                                                            2,411.20
                                                                                     126.12

                                                                                                                                                                                                       155,401.75
                                                          123.07                                                                                                                                                                                                     140000
                                                                                                                             8000    2000

                                                                                               8,629.6
      100

                                                                                                                                                                               134,878.87
                                                                                                                                                                    2,010.42
                                                                    7,931.9                                                                                                                                                                                          120000
                                      102.01

                                                                                                                                            1,829.78
                                                                                                                                                       119,777.31
                  92.31

                                                6,844.2

       80                                                                                                                    6000    1500                                                                                                                            100000
                            6,042.3

       60                                                                                                                                                                                                                                                            80000
                                                                                                                             4000    1000
                                                                                                                                                                                                                                                                     60000
       40
                                                                                                                                                                                                                                                                     40000
                                                                                                                             2000     500
       20                                                                                                                                                                                                                                                            20000
         0                                                                                                                   0          0                                                                                                                            0
                  2015-16

                                      2016-17

                                                          2017-18

                                                                                     2018-19

                                                                                                         2019-20

                                                                                                                                                       2015-16

                                                                                                                                                                               2016-17

                                                                                                                                                                                                       2017-18

                                                                                                                                                                                                                                2018-19

                                                                                                                                                                                                                                                        2019-20
                                                US$ billion                   Rs. billion
                                                                                                                                                                                                       US$          Rs.
        At current prices, Andhra Pradesh's Gross State Domestic                                                                     The state’s per capita GSDP in 2019-20 was Rs. 188,370.33
         Product (GSDP) was Rs. 9,72,782.11 crore (US$ 138.19 billion)                                                                 (US$ 2,675.9).
         for 2019-20 as opposed to Rs. 8,62,957.08 crore (US$ 126.1
         billion) for 2018-19.                                                                                                        Per capita GSDP increased at a CAGR of 11.98% between
                                                                                                                                       2015-16 and 2019-20.
        The GSDP increased at a CAGR of 12.64% from 2015-16 to
         2019-20.

 Source: Ministry of Statistics & Programme Implementation

 13
Economic snapshot – NSDP

                 NSDP of Andhra Pradesh at current prices                                                                          NSDP per capita of Andhra Pradesh at current prices

                                                                                                                                   3                                                                                         180.0
      140                                       CAGR (in Rs.) 12.59%                                                     10000                                      CAGR (in Rs.) 11.93%
                                                                                                                                                                                                                             160.0

                                                                                                                                                                                                                   169.5
                                                                                                                         9000      3
      120

                                                                                                                                                                                                  151.2
                                                                                                                                                                                                                             140.0

                                                                                                     124.4
                                                                                                               8,754.3
                                                                                                                         8000

                                                                                                                                                                                                            2.41
                                                                                                                                                                                 139.7
                                                                                 113.4
                                                          110.6

                                                                                                                                                                                           2.21
      100

                                                                                           7,761.4
                                                                                                                                   2                                                                                         120.0

                                                                                                                                                                          2.17
                                                                                                                         7000
                                                                    7,129.4

                                                                                                                                                               120.7
                                                                                                                         6000                                                                                                100.0
                                      91.3

                                                                                                                                              108.0

                                                                                                                                                        1.80
       80
                                                6,123.5

                                                                                                                                   2
                  83.2

                                                                                                                                       1.65
                                                                                                                         5000
                            5,448.3

                                                                                                                                                                                                                             80.0
       60                                                                                                                4000
                                                                                                                                   1                                                                                         60.0
       40                                                                                                                3000
                                                                                                                                                                                                                             40.0
                                                                                                                         2000      1
       20                                                                                                                                                                                                                    20.0
                                                                                                                         1000
         0                                                                                                               0         0                                                                                         0.0

                                                                                                                                              2015-16

                                                                                                                                                               2016-17

                                                                                                                                                                                 2017-18

                                                                                                                                                                                                  2018-19

                                                                                                                                                                                                                   2019-20
                  2015-16

                                      2016-17

                                                          2017-18

                                                                                 2018-19

                                                                                                     2019-20

                                      US$ billion                             Rs. billion
                                                                                                                                                           US$ (000s)                             Rs. (000s)

        At current prices, the NSDP of Andhra Pradesh was Rs.                                                                    The state’s per capita income at current prices increased to Rs.
         875,429.02 crore (US$ 124.4 billion) in 2019-20.                                                                          1,69,519 (US$ 2,408) in 2019-20 from Rs. 1,51,173 (US$
                                                                                                                                   2,210) in 2018-19, a growth of 12.14%.
        The NSDP increased at a CAGR of 12.59% from 2015-16 to
         2019-20                                                                                                                  Per capita GSDP increased at a CAGR of 11.93% between
                                                                                                                                   2015-16 and 2019-20.

 Source: Ministry of Statistics & Programme Implementation

 14
Economic snapshot – % distribution of GSDP

   In 2019-20, the services sector accounted for 41.80% in the total              Visakhapatnam
                                                                                         GSDP composition
                                                                                                 port trafficby
                                                                                                             (million
                                                                                                                sectortonnes)
      GVA of the state, followed by agriculture and allied (39.99%) and
      industry (18.21%).                                                    100%
                                                                                            40.91%             CAGR^         41.80%
                                                                            90%
   The agriculture and allied sector grew at the fastest rate at 15.89%
      between 2011-12 and 2019-20, followed by services sector (12.52%)     80%                                12.52%

      and industry sector (6.27%).                                          70%

   The growth achievement for 2019-20 is significant, especially in the    60%
                                                                                            28.16%                           18.21%
      context of global economic slowdown and other fallouts that affect    50%                                6.27%
      the national economy and its attendant impact on the state as well.
                                                                            40%
                                                                                                                             39.99%
                                                                            30%
                                                                                            30.93%
                                                                            20%
                                                                                                               15.89%
                                                                            10%

                                                                             0%
                                                                                            2011-12                         2019-20 AE

                                                                                        Agriculture & Allied     Industry    Services

 Source: Ministry of Statistics & Programme Implementation

 15
Economic snapshot – FDI inflow & investments

                                                                             FDI inflow in Andhra Pradesh in April 2000-March 2020 (US$
   According to Department for Promotion of Industry and Internal                    Visakhapatnam port traffic (million tonnes)
                                                                                                       million)
      Trade (DPIIT), FDI inflow in Andhra Pradesh between April 2000 and
                                                                               20000                                                                                                              19,196
      March 2020 reached US$ 19.20 billion.                                                                                                                                     3,457
                                                                               18000                                                                                                       727
                                                                               16000                                                                            1,246
   Between October 2019 and December 2020, FDI inflows in Andhra              14000
                                                                                                                                                           2,195

      Pradesh stood at US$ 272.76 million. The state ranked 12th in India                                                                       1,556
                                                                               12000
                                                                                                                                     1,369
      in terms of FDI inflows.                                                 10000                                       678
                                                                                                               1,159
                                                                                8000                848

   In January 2019, Asia Pulp & Paper decided to invest US$ 3.5 billion        6000
                                                                                4000
      for setting up of a greenfield pulp and paper plant in Prakasam
                                                                                2000
      district.                                                                    0

                                                                                                     2011-12

                                                                                                                 2012-13

                                                                                                                           2013-14

                                                                                                                                      2014-15

                                                                                                                                                 2015-16

                                                                                                                                                            2016-17

                                                                                                                                                                      2017-18

                                                                                                                                                                                 2018-19

                                                                                                                                                                                           FY20
                                                                                        FY01-FY11

                                                                                                                                                                                                    FY01-FY20
   In 2019, 139 investment intentions worth Rs. 18,823 crore (US$ 2.69
      billion) were filed in Andhra Pradesh.

   In January 2020, 15 investment intentions worth Rs. 3,054 crore
                                                                            Investment intentions in terms of IEMs filed, LOIs / DILs issued
      (US$ 0.43 billion) were filed in the state.
                                                                                Year                  Number                         Proposed Investments (US$ billion)
                                                                                2016                           164                                                    5.13
                                                                                2017                           154                                                    4.54
                                                                                2018                           161                                                    2.83
                                                                                2019                           139                                                    2.69
                                                                                2020*                          15                                                     0.43
 Source: Department for Promotion of Industry and Internal Trade

 16
Economic snapshot – Export trends

         Merchandise Export from Andhra Pradesh (US$ billion)                                      Principal Commodities Exported in FY20

      16.00                                                                                                                     Marine Products

      14.00                                                           14.78
                                                         14.08                                                                  Drug Formulations,
      12.00                                 13.02                              13.17                        14.56%              Biologicals
                  12.14        11.94                                                                                            Ship, Boat & Floating
      10.00                                                                                                                     Structure
       8.00                                                                                                          11.06%     Iron & Steel
                                                                                          47.59%
       6.00
                                                                                                                                Rice (other than Basmoti)
       4.00                                                                                                           9.15%
                                                                                                                                Residual Chemical and
       2.00                                                                                                                     Allied Production
                                                                                                                   6.78%
       0.00                                                                                                                     Spices
                  FY16         FY17         FY18         FY19         FY20    F21 (till
                                                                              January                              4.06%        Others
                                                                               2021)                 3.37% 3.42%

     Merchandise exports from Andhra Pradesh have increased to US$ 14.78 billion in FY20. In FY21 (until January 2021), it reached US$ 13.17
       billion.

     Marine products is the largest export category of the state, accounting for ~14.56% of the total exports in FY21 (until January 2021).

 Note: MEIS - Merchandise Export from India Scheme
  Source: Directorate General of Commercial Intelligence and Statistics

 17
PHYSICAL INFRASTRUCTURE

18
Physical infrastructure – Roads

   The total R&B road network (excluding NH roads) in the state in                                                                Road length (kms)
                                                                                     Road Surface
      2019-20 was 46,211.69 kms, comprising 13,500.445 kms of state                                                                (As of March 2019)
      highways, 32711.245 kms of major district road and rural roads.
                                                                                     Cement & concrete                                   2,366.705
   For 2020-21, the State Government has allocated Rs. 6,588.63 crore
      (US$ 934.69 million) as capital expenditure on transport, road, and
                                                                                     Black top                                          48,463.888
      buildings department in the state.

   The Government has initiated two projects with funding from New                  Metaled and unmetalled                             2,266.709
      Development Bank on cost sharing model of 70:30 - Andhra Pradesh
      Road and Bridges Reconstruction Project (APRBRP) and Andhra
      Pradesh Mandal Connectivity and Rural Connectivity Improvement                 Total roads                                        53,097.302
      Project (APMCRCIP). A cumulative road length of 3,104 kms and
      479 bridges will be covered under these projects.

   Under Andhra Pradesh Petroleum, Chemicals & Petrochemicals                       In February 2021, Union Minister for Road Transport and Highways
      Investment Region (AP PCPIR), construction of 40 km of national                 Mr. Nitin Gadkari approved a proposal to construct a six-lane
      highways, 42 km of state highways and nearly 75 km of major district            Kantakapalle-Sabbavaram section of NH 130CD worth Rs. 824.29
      roads is under planning and is expected to be completed in the next             crore (US$ 111.1 million) and the development of a six-lane Korlam-
      5 years.                                                                        Kantakapalle section of NH 130CD worth Rs. 772.70 crore (US$
                                                                                      104.2 million). In addition, approval was also provided for widening
   During the year 2019-20, 950 Km length of road is completed duly                  and strengthening four-lane of urban link of NH-42 in Ananthapur
      incurring an expenditure of Rs. 1126 crores (US$ 153.2 million).                town worth Rs. 311.93 Crore (US$ 42.1 million) in the state.

 Source: Andhra Pradesh Socio Economic Survey 2019-20, NHAI, State Budget 2020-21

 19
Physical infrastructure – Railways & metro rail

   The state is well connected through the rail network.                      Rail network across the state
    Visakhapatnam, the largest city in the state, has rail accessibility to
    nine district headquarters out of thirteen in the new state. The city is
    also well connected to the neighbouring states of Odisha and
    Chhattisgarh.

    The State Government has undertaken construction of Nadikudi-
     Srikalahasti line, covering a length of 308 km. The main purpose
     behind the construction of this new line is to develop the backward
     areas of Guntur, Prakasam, Nellore and Chittoor districts and
     improve their connectivity with other states and also enable exports
     of raw materials that are used in cement and granite industries.

    In FY 2019-20, the Union Government has planned to develop metro
     rail projects at Visakhapatnam and Vijayawada. The Visakhapatnam
     project, estimated to cost Rs. 8,300 crore (US$ 1,287.82 million), will
     develop three important routes.

    In April 2020, the Amaravati Metro Rail Co (AMRC) was renamed as                                                               Source: Maps of India

     Andhra Pradesh Metro Rail Co. Ltd. (APMRC).
                                                                                In February 2021, Finance Minister Ms. Nirmala Sitharaman
    Groundwork for Vizag metro project with 140km-long mass rapid
                                                                                 announced commencement of the Nadikudi-Srikalahasti railway
     transit system started in October 2020. The project is estimated to
                                                                                 project. The Central government spared Rs. 1,144 crore (US$ 154.2
     cost Rs. 22,000 crore (US$ 2.98 billion) and will be completed by
                                                                                 million) to fast-track the project, which was only 15% complete since
     2028.
                                                                                 its launch in 2009.
    In November 2020, Alstom announced that it has successfully
     completed production of its 500th metro car at its ‘SriCity’ factory in
     Andhra Pradesh that manufactures ‘rolling stock’ (metro trains) for
     urban metro projects.
 Source: News Articles

 20
Physical infrastructure – Airports

    Andhra Pradesh has six operational airports/air strips which connect major cities.
    Passenger traffic of 32.14 lakh was recorded between April 2019 and October 2019.
    In January 2018, Andhra Pradesh inaugurated its seventh airport at Orvakallu near Kurnool city. It is developed on a 1,010 acre site at a cost of
     Rs. 110 crore (US$ 15.25 million).
    The upcoming international airport Bhogapuram will be developed by the state Government, under PPP model, at an estimated cost of US$
     328.60 million & will cater to 6.3 million passengers a year.
    In 2019, existing runways at Vijaywada airport has been extended from 2,286 metres to 3,360 metres similarly, Rajahmundry airport extended
     from 1,750 metres to 3,165 metres.

   Andhra Pradesh Airport Statistics

   Parameter                                                   2019-20                    2018-19             2017-18                  2016-17

   Passenger traffic- Vijayawada airport                      11,30,583                   1,184,853            746,392                 622,354

   Passenger traffic-Visakhapatnam airport                    26,81,283                   2,853,390           2,480,379               2,358,029

   Aircraft movement-Vijayawada airport                        15,242                      19,026              11,998                   10,333

   Aircraft movement-Visakhapatnam airport                     20,935                      23,695              19,595                   19,550

 Source: Airports Authority of India

 21
Physical infrastructure – Ports

    Traffic handled by Visakhapatnam port reached 72.72 million tonnes                               Visakhapatnam port traffic (million tonnes)
      in FY20.
                                                                                              80.00
    The State Government plans to develop a Greenfield Port at                               75.00
                                                                                              70.00

                                                                                                                                                          72.72
      Ramayapatnam in the state to meet the ever-increasing cargo                             65.00

                                                                                                                                              65.30
                                                                                              60.00

                                                                                                                                  63.54
      demand under the land-lord model with artificial deep harbour along

                                                                                                                      61.02
                                                                                              55.00

                                                                                                          57.03
      an open straight seacoast and protected by breakwaters. The                             50.00
                                                                                              45.00
      estimated cost for phase I is Rs. 3,736 crore (US$ 530 million).                        40.00
                                                                                              35.00
                                                                                              30.00
    The State Government had invited bids for development of                                 25.00
      Bhavanapadu port in 2016. In August 2020, the state government                          20.00
                                                                                              15.00
      has approved the Detailed Project Report (DPR) of the Phase-1                           10.00
                                                                                               5.00
      work of Bhavanapadu Port in Srikakulam at an estimated cost of Rs.
                                                                                               0.00

                                                                                                          FY16

                                                                                                                      FY17

                                                                                                                                  FY18

                                                                                                                                              FY19

                                                                                                                                                          FY20
      3,669.95 crore (US$ 499.51 million). The project is expected to be
      completed by 2023 to 2024.

    In September 2020, Andhra Pradesh’s State Cabinet led by Chief                        In March 2021, Adani Group agreed to acquire a 31.5% stake in
      Minister,     Mr.    Y.    S.    Jagan     Mohan       Reddy,      approved   the     Gangavaram Port from Warburg Pincus, a private equity firm, and is
                                                                                            in discussion with its promoters to purchase their 58.1% interest. The
      Krishnapatnam port deal, paving way for Adani Ports and Special
                                                                                            state government owns the remaining 10.4% stake in the port.
      Economic Zone Ltd. (APSEZ) to conclude the process to acquire a
      75% controlling stake in Krishnapatnam Port Company Ltd. (KPCL)
      for an enterprise value of Rs. 13,572 crore (US$ 1.84 billion).

 Source: Ministry of Shipping, Indian Ports Association, News Articles

 22
Physical infrastructure – Power

   In July 2020, the state government approved the Andhra Pradesh                                         Installed power capacity (MW)
    Renewable Energy Export Policy 2020, which aims to attract private
    investments for establishing solar/wind/wind-solar hybrid projects on        25,500
    a massive scale.                                                             25,000

                                                                                                                                                          25,251.17
                                                                                                                                             24,854.00
       Under the policy, the renewable energy produced can be exported          24,500
        to other states without any obligation to the state DISCOMs to           24,000

                                                                                                                                24,184.29
        procure power as the DISCOMs have already exceeded the                   23,500
        Renewable Power Purchase Obligation (RPO).                               23,000

                                                                                                                   22,933.77
   As of March 2020, Andhra Pradesh had a total installed power                 22,500
    generation capacity of 24,854.00 MW. Out of the total, private utilities

                                                                                               22,298.30
                                                                                 22,000
    contributed 15,800.75 MW, state utilities contributed 6975.18 MW             21,500
    and central utilities contributed 2,078.08 MW.
                                                                                 21,000
   In Budget 2020-21, the State Government announced plans to invest            20,500

                                                                                             2016-

                                                                                                                  2017-

                                                                                                                               2018-

                                                                                                                                            2019-

                                                                                                                                                         2020-
    Rs. 6,984.73 crore (US$ 990.88 million) for the development of

                                                                                                                                                          21*
                                                                                              17

                                                                                                                   18

                                                                                                                                19

                                                                                                                                             20
    energy sector in the state.

   Government also plans to set up AP Green Energy Corporation with
    a mandate to install 8,000 MW to 10,000 MW of dedicated solar               In September 2020, the Central Government released Rs. 3,300
    power capacity.                                                              crore (US$ 447.88 million) loan to the Andhra Pradesh power sector
                                                                                 under the second tranche of the ‘Atmanirbhar Bharat’ programme.
   Government of Andhra Pradesh has been saving upto 2,000 million
    units (MU) of power and about Rs. 1,000 crore (US$ 136.08 million)          According to a survey conducted by Smart Power India (SPI), in
    annually for last three years by promoting energy efficiency initiatives     association with NITI Aayog and the Rockefeller Foundation, on
    with an aim to conserve 15,000 MU of power by 2023.                          ‘electricity access and benchmarking of distribution utilities’, power
                                                                                 utilities in Andhra Pradesh are among the top performers in the
                                                                                 country.
 Note: ^Under Vision 2029, MW- Megawatt, * - Until January 2021
 Source: Central Electricity Authority, News Articles

 23
Physical infrastructure – Telecom

  Performance status of Bharat Net project (as of December 2018)                            Telecom Infrastructure (as of September 2020)

  No. of GPs in Phase-I                                             3,860                       Wireless subscribers                  86,965,757

  Pipe laid (kms.)(July 2017)                                       2,627                       Wireline subscribers                   1,353,444

                                                                                                Internet subscribers (until June
  Optical Fiber Cable laid (kms)                                    4,268                                                                   61.12
                                                                                                2020)

  Service ready GPs (November 2020)                                 1,675                       Tele-density (in %)                         97.82

   According to Telecom Regulatory Authority of India (TRAI), Andhra Pradesh* had ~86.97 million wireless subscribers and 1.35 million wireline
      subscribers by September 2020.

   As of September 2020, the overall tele-density in the state stood at 97.82%.

   By the end of August 2020, 42.31 million subscribers had submitted requests for mobile number portability in the state*.

 Note: *Including Telangana
 Source: Telecom Regulatory Authority of India, India Post BSNL: Bharat Sanchar Nigam Limited

 24
Physical infrastructure – Urban

  Classification of AMRUT Cities in Andhra Pradesh on the basis
                                                                               Smart City indicators (Census 2011)
  of population (Census 2011)

  Number of AMRUT cities with population                                       City                 Population         Literacy rate     Area (sq. km)
                                                                  30
  less than 1 million
                                                                               Visakhapatnam         1,728,128           81.79 %               544
  Number of AMRUT cities with population
                                                                   3
  in the range of 1 - 10 million
                                                                               Kakinada               312,538            80.62 %              30.51
  Number of AMRUT cities with population
                                                                   0
  greater than 10 million                                                      Tirupati               287,482            86.97 %              27.44

  Total number of AMRUT cities                                    33           Amaravati             5,180,000           88.23 %             217.23

   The State Government is expediting work for the development of Amaravati, the state’s future capital.
   During FY20, 40,481 houses were completed with an expenditure of Rs. 678.26 crore (US$ 96.22 million).
   Government has planned to construct 25 lakh houses (14 lakh in rural areas and 11 lakh in urban areas) in the next 4 years as a part of
    “Navaratnalu” with an estimated total project cost of Rs. 1,000 crore (US$ 8.30 billion) to provide Pucca houses to all eligible. 15 lakh houses will
    be provided in FY 2020-21.
   Other proposed plans include:
       To provide house sites to all the poor and needy and register land, along with the house on the name of women.
       Allot sites and facilitate to provide loans under Pavala Interest through banks and other financial agencies for the amount required over and
        above unit cost.
       The government has already taken steps for acquiring land and has also proposed to distribute house site pattas to 25 lakh beneficiaries in July
        2020.

 Source: Andhra Pradesh Socio Economic Survey 2019-20, State Budget 2020-21

 25
SOCIAL INFRASTRUCTURE

26
Social infrastructure – Education

                                                                                                                     Enrolment of students in all types of schools,
   Classes                          Number of schools (2019-20)                                 Classes
                                                                                                                                  2019-20 (in 000s))
   Primary                                        39,774
                                                                                                I–V                                        3,795
   (I-VII/VIII)                                   9,685

   (I-XII)                                          218                                         VI-VIII                                    2,137

   (VI-XII)                                         236
                                                                                                IX-X                                       1,342
   (I-X)                                          2,299

                                                                                                Total                                      7,274
   (VI-X)                                         10,306

    Andhra Pradesh has a literacy rate of 67.4 per cent, as per Census 2011. The government is committed to achieve 100% literacy by 2020 and
     several schemes have been initiated for bringing out both quantitative and qualitative improvement. The government provides schooling facility to
     72.74 lakh children.
    The “Sarva Siksha Abhiyaan” and “Rashtriya Madhyamik Siksha Abhiyaan” are two schemes which are focusing towards fulfilling the aim of
     reinforcing the education in the schools in accordance to the enrolment, quality, access as well as retention.
    Under State Budget 2020-21, Government allocated Rs. 3,000 crore (US$ 425.59 million) to Manabadi Nadu-Nedu scheme, under which 15,715
     Government schools have been identified in the first phase for improving infrastructural facilities.
    In State Budget 2020-21, Rs. 22,604 crore (US$ 3.21 billion) has been allocated for secondary and intermediate education and Rs. 2,277 crore
     (US$ 323.02 million) for higher education.
    In September 2020, the state government announced plans to install 45,000 smart televisions in government schools in order to bridge the gap
     between private and public schools.
    In February 2021, the state government announced completion of the first-phase of ‘Nadu-Nedu’—a scheme launched by the state government to
     take up basic infrastructure works—covering 15,700 schools, with the cost being Rs. 2,570 crore (US$ 346.45 million)

 Source: Directorate of Intermediate Education, Andhra Pradesh Socio Economic Survey 2020-21, State Annual Budget, 2020-21

 27
Social infrastructure – Health

  Medical Facilities (May 2020)                                                               Health indicators (SRS Bulletin 2019)

                                                                                                         1
   Sub-centres                                                          7,459                 Birth rate                                                  16.0

                                                                                                                     2
                                                                                              Infant mortality rate                                       29
   Primary health centres                                               1,533
                                                                                                             1
                                                                                              Death Rate                                                  6.7
   Community health centres                                              215
                                                                                              Major hospitals

   Sub District hospitals                                                 47                   Apollo Hospital

                                                                                               Care Hospital
   District hospitals                                                     26
                                                                                               Manipal Hospital

                                                                                               Krishna Institute of Medical Sciences
   Total                                                                9,280

   As of May 2020, the state had 1,533 primary health centres, 7,459 sub centres, 47 sub-district hospitals and 26 district hospitals.
   The State Government allocated Rs. 470.29 crore (US$ 66.72 million) for expansion of 108 and 104 services in the state.
   In October 2019, Government launched Kanti Velugu programme with an objective of universal eye screening and provision of appropriate
    interventions. In State Budget 2020-21, Rs. 20 crore (US$ 2.84 million) has been allocated for the programme.
   An allocation of Rs. 11,419.44 crore (US$ 1.62 billion) has been proposed by the State Government for healthcare sector in the state under the
    State Budget 2020-21.
   In October 2020, the Andhra Pradesh government announced its plan to spend Rs.17,300 crore (US$ 2.34 billion) to revamp the existing
    government hospitals and set up 16 new medical colleges under the ‘Nadu-Nedu’ initiative.
   In February 2021, the state government approved seven new ESI (Employees’ State Insurance) hospitals. Of these, construction of a 100-bed
    ESI hospital in Vizianagaram is estimated to be complete by March 2023.

 Note: 1Per thousand persons, 2Per thousand live births
 Source: Andhra Pradesh State Budget 2020-21, Andhra Pradesh state portal, SRS Bulletin 1Per thousand persons, 2Per thousand live births, News Articles

 28
INDUSTRIAL INFRASTRUCTURE

29
Industrial infrastructure…(1/2)

    In 2019-20, 44 large and mega industrial projects were established                 Logistics Infrastructure in Andhra Pradesh
     with an investment of Rs. 22282.16 crore (US$ 3.03 billion),
     providing employment to 18,385 people

    Andhra Pradesh has identified development of MSMEs as a catalyst
     for job creation and balanced regional development.

       In line with the plan, the government has introduced the MSME
        policy 2015-20 to provide a holistic framework for sustainable
        development of MSMEs in the state and make them globally
        competitive.

       In 2019-20, 10,019 Micro, Small and Medium Enterprises were
        established with an investment of Rs. 2979.86 crore (US$ 401.91
        million), providing employment to 76,716 people. It is planned to
        continue to focus on MSME during 2020-21.

    In September 2020, the state government stated that it is conducting
     a comprehensive survey to provide required infrastructure to
     industries in the state.

    In October 2020, Kinetic Green, an electric vehicles manufacturer,
     announced plans to set up a manufacturing facility for electric golf
     carts and a battery swapping unit in Andhra Pradesh. These two
     projects will entail an investment of Rs. 1,750 crore (US$ 236.27
     million).

 Source: APIIC, Andhra Pradesh State Budget 2020-21, Andhra Pradesh Socio Economic Survey 2020-21

 30
Industrial infrastructure…(2/2)

   Andhra Pradesh was home to 20 operational SEZs, 32 SEZs with formal approvals, four SEZs with in-principle approval and 27 notified SEZs, as
      of February 2020. These SEZs were spread across diversified sectors which include textiles & apparel, food processing, footwear & leather
      products, multi-product, pharma, IT SEZs, etc.

   Some of the operational SEZs in Andhra Pradesh

   Name/Developer                                                 Location                                         Primary industry

   Visakhapatnam SEZ                                              Vishakhapatnam,                                    Multi-product
   Divi’s Laboratories Limited                                    Chippada Village, Visakhapatnam,                 Pharmaceuticals
   Apache SEZ Development India Private Limited                   Mandal Tada, Nellore District                        Footwear
                                                                  E-Bonangi Villages, Parawada
   Ramky Pharma City (India) Pvt. Ltd.                                                                             Pharmaceuticals
                                                                  Mandal, Visakhapatnam District
   Andhra Pradesh Industrial Infrastructural Corporation
                                                                  Madhurawada Village, Visakhapatnam                   IT/ITES
   Ltd.(APIIC)
   Andhra Pradesh Industrial Infrastructure Corporation           Atchutapuram and Rambilli Mandals,
                                                                                                                     Multi-product
   Limited (APIIC)                                                Visakhapatnam
   Ace Urban Hitech City Limited (Formerly L&T Hitech City        Keesarapalli Village, Gannavaram
                                                                                                                       IT/ITES
   Limited)                                                       Mandal, Krishna District,
   Hetero Infrastructure Pvt. Ltd.                                Nakkapalli Mandal, Visakhapatnam                 Pharmaceuticals

   Mas Fabric Park (India) Pvt. Ltd                               Chillakru Mandal, Nellore District              Textile and apparel

                                                                  Duppituru, Doturupalem Maruture and
   Brandix India Apparel City Private Limited                                                                           Textile
                                                                  Gurujaplen Villages in Visakhapatnam

 Source: Department of Industries, Government of Andhra Pradesh

 31
KEY SECTORS

32
Key industries – Drugs and pharmaceuticals

   Andhra Pradesh is home to many global & national pharma players;                                  Andhra Pradesh drugs and pharmaceutical export
    various companies have set up their manufacturing hubs in                                                          (US$ billion)
    Visakhapatnam & Srikakulam districts.
                                                                                                  3
   Pharmaceutical exports from the state stood at US$ 1.48 billion in
    2019-20.
   In September 2020, Andhra Pradesh Industrial Infrastructure                                   3
    Corporation Ltd. (APIIC) signed an MoU with CSIR-IICT, a premier                                    2.50
    R&D institute in the country to set up a bulk drug pharma park in the
    state.
                                                                                                  2
       Speaking on the occasion, Special Chief Secretary (industries) Mr.
        Karikal Valaven stated that AP is heading to become the leader of
        the bulk drug market in the country.
                                                                                                  2
   In February 2020, Novartis has launched Biome India, a digital                                                                                             1.48   1.46
    innovation hub, in Hyderabad. This is the company’s first such centre                                          1.40                  1.41
    in Asia and the fourth globally.
                                                                                                  1                                                 1.15
   On September 2, 2020, the Andhra Pradesh Industrial Infrastructure
    Corporation Ltd. (APIIC) signed a memorandum of understanding
    (MoU) with the Council of Scientific and industrial Research-Indian                                                       0.65
                                                                                                  1
    Institute of Chemical Technology (CSIR-IICT) to set up a bulk drug
    park (BDP) in the state. The park will be set up in 2,000 acres at a
    cost of Rs. 6,940 crore (US$ 941.55 million) in the East Godavari
    District of Andhra Pradesh.                                                                   0
                                                                                                        FY15       FY16      FY17       FY18       FY19       FY20    FY21*

 Note: * till January 2021
 Source: Andhra Pradesh IT department, News articles, Andhra Pradesh Socio Economic Survey 2020-21, Directorate General of Commercial Intelligence and Statistics

 33
Key industries – Agriculture and allied industries…(1/2)

   The presence of rich climatic and soil conditions make Andhra
                                                                                                  Area under production   Crop production
    Pradesh a major agricultural belt. The state ranks first in area and
                                                                                    Crop                 ‘000 Ha            ‘000 tonnes
    production of fruits and spices in the country.
                                                                                                        (2018-19)*           (2018-19)*
   Few of the leading crops produced in the state include rice, chilly,
    oilseeds, cotton, pulses and gram.                                             Paddy                  2,209               12,370

                                                                                   Jowar                  156                  354
   The total production of foodgrains increased to 180.54 lakh metric
    tonnes in 2019-20 from 149.5 lakh MT in 2018-19. The average five-              Bajra                  22                   22
    year production stood at 159.3 lakh MT (2014-2018). The
    achievement is despite the fact that there is no increase in the extent        Maize                  267                  1,565
    of the land cultivated.
                                                                                    Ragi                   34                   43
   Under State Budget 2020-21, Rs. 11,891.20 crore (US$ 1.69 billion)           Other millets
    has been allocated to the agriculture sector.                                                          12                   6
                                                                               including wheat
   On September 7, 2020, the state government signed MoUs with the                Pulses                 1,326                752
    Netherlands government and seven companies in food processing,
    marketing and technologies to benefit horticulture and aquaculture        Total food grains           4,026               15,112
    farmers across the state.
                                                                                 Groundnut                759                  477
   YSR Rythu Bharosa scheme is one of the prestigious government
                                                                                   Castor                  35                   15
    flagship schemes designed for farmers welfare, providing financial
    assistance to farmers and making farming a remunerative                      Sesamum                   48                   15
    profession.
                                                                               Total Oilseeds             963                  2,493
   However, the state faces a challenge with a number of suicides
    involving farmers increasing to 1,029 in 2019 from 664 in 2018.              Vegetables              718.91              17,614.67

                                                                                   Fruits                259.83              7,091.37

 Note: P - Provisional, * - As per 4th Advance Estimates
 Source: MPEDA, APEDA, Andhra Pradesh Economic Survey 2019-20

 34
Key industries – Agriculture and allied industries…(2/2)

      Andhra Pradesh Fish and Prawn Production (million tonnes)                                     Andhra Pradesh Marine Product Export (US$ million)

        5                                                                                       3,000

        4                                                                    4.18
                                                                                                2,500                2,680.14              2,753.13
                                                              3.99
        4
                                               3.44
        3                                                                                       2,000
                                                                                                                                1,932.43              1,918.11
        3                      2.77
                                                                                                1,500
        2       2.35

        2                                                                                       1,000     1,114.39
        1
                                                                                                  500
        1

        0                                                                                           0
              2015-16        2016-17         2017-18        2018-19        2019-20                         2016-17   2017-18    2018-19    2019-20    2020-21*

   On September 20, 2020, Mr. S Appala Raju, Minister for Fisheries, Government of Andhra Pradesh announced that Andhra Pradesh stands in the
    first place for production of fish and prawns with 71% in aqua production.
       He also added that the state government has extended a subsidy of Rs. 750 crore (US$ 101.16 million) to aqua farmers towards power supply.
   Andhra Pradesh was ranked first in egg production, fourth in meat production, and fourth in milk production in the country during 2018-19.
   It is also home to a thriving fisheries industry and employees about 1.45 million people and contributes 36% of the total value of sea food export
    from the country.
   The state produced 4.18 million tonnes of fish and prawn in 2019-20 compared with 3.99 million tonnes produced in 2018-19.
   The state’s exports of marine products increased to US$ 2,753.13 million in 2019-20 and reached US$ 1,918.11 million in 2020-21 (until January
    2021).

 Note: * – till January 2021
 Source: Andhra Pradesh Economic Survey 2019-20, Directorate General of Commercial Intelligence and Statistics

 35
Key industries – Petroleum, chemicals and petrochemicals

   According to the Director General of Hydrocarbons (DGH), Andhra                                          Production of crude oil and natural gas
      Pradesh has huge oil and natural gas reserves. The state’s Krishna-
                                                                                                 1,200
      Godavari basin, spread over an area of nearly 52,000 sq km, has a
      total hydrocarbon resource base of 1,130 million metric tones.

                                                                                                                                                                                              1,077.00
                                                                                                 1,000
   Production of crude oil and natural gas in the state was recorded at

                                                                                                                                                             959.00
      216.51 thousand metric tonnes and 847.00 MCM during 2019-20,

                                                                                                                                 853.00
                                                                                                   800

                                                                                                                                                                                                                            847.00
      respectively.

   To promote investments in the industry, Andhra Pradesh Petroleum,                              600

      Chemicals & Petrochemicals Investment Region (PCPIR) is being
      set up. The projects is coming up over an investment area of 603                             400
      square km and will boost refining, petrochemicals, chemical and

                                                                                                                                          322.00

                                                                                                                                                                           286.90
      manufacturing sectors in the state.

                                                                                                              276.00
                                                                                                   200

                                                                                                                                                                                                         216.51
                                                                                                      0

                                                                                                                       2016-17

                                                                                                                                                   2017-18

                                                                                                                                                                                                                  2019-20
                                                                                                                                                                                    2018-19
                                                                                                       Crude Oil Production ('000 MT)                                 Natural Gas Production (MCM)

 Note: MCM – Million Cubic Metres
 Source: Ministry of Petroleum and Natural Gas, News articles, Andhra Pradesh Petroleum, Chemicals and Petrochemicals Investment Region, India Bureau of Mines

 36
Key industries – Tourism

   Andhra Pradesh is known for its pristine beaches, sacred places of                                   Domestic tourist arrival in Andhra Pradesh (in million)
    worship, lush green forests, spicy cuisine & hospitable people. The
    state continued to witness increase in domestic tourist arrivals over
    the last few years.
                                                                                                   250
   Andhra Pradesh has 13 wildlife sanctuaries and 3 National Parks

                                                                                                                                                 236.55
    covering an area of 8139.89 sq. km., which is 21.87% of the state’s
    forest area and 4.99% of the state’s geographical area.
                                                                                                   200
   The government has started eco-tourism initiatives by creating new

                                                                                                                                      194.77
    community-based Eco-Tourism Centres and strengthening the
    existing eco-tourism centers by involving local tribes.

                                                                                                                          165.43
   In the first week of September 2020, the state’s Minister for Culture,                         150

                                                                                                               153.16
    Tourism and Youth Advancement, Mr. Muttamsetti Srinivasa Rao
    announced opening of the state for tourism activities such as ropeway,
    boating, adventure sports, museums and protected monuments
    including forts, heritage structures and other tourist destinations.                           100
   In 2019, domestic tourist arrivals in the state stood at 195.8 million,
    while foreign tourist arrivals stood at 0.23 million.
   The tourism sector incurred a loss of >Rs. 50 crore (US$ 6.79 million)
                                                                                                    50
    in the past five months due to the coronavirus pandemic. However,
    tourism activities resumed as per the ‘Unlock-4’ guidelines in

                                                                                                                                                             28.27
    September 2020.
   In September 2020, The Andhra Pradesh government issued the ‘AP                                  0

                                                                                                                                                             2020*
                                                                                                               2016

                                                                                                                          2017

                                                                                                                                      2018

                                                                                                                                                 2019
    Tourism Trade (Registration and Facilitation) Guidelines, 2020’ to
    position the state as a premier tourist destination by improving the
    standard of services.
   Under State Budget 2020-21, the Government of Andhra Pradesh
    allocated Rs. 273.66 crore (US$ 38.82 million) for Youth
    Advancement, Tourism, and Culture department.
 Note: *- till May 2020
 Source: Ministry of Tourism, Government of India; News articles AP State Portal, Budget 2020-21

 37
KEY PROCEDURES AND POLICIES

38
Single-window approval mechanism

   Andhra Pradesh is the first state in the country to have enacted the Industrial Single Window Clearance Act No 17 of 2002. The Act made it
    compulsory for new industries to register with the single-window to obtain clearances quickly. It also simplified procedures for getting industrial
    clearances.

   Committees were constituted at district and state levels to communicate to the applicant the status of their clearances. It has set time slots for
    issuing clearances and incorporated a provision for deemed approval after the expiry of the time limit.

   District level committees can clear investments not exceeding US$ 219,442. State level committees can clear those exceeding US$ 219,442. .

   Above the district and state level committees is an empowered committee headed by the Chief Secretary of the state Government, who reviews
    and monitors disposal of applications. Overall, a State Board under the chairmanship of the Chief Minister oversees the progress of the scheme.

   Post effectiveness of The Andhra Pradesh Single Desk Policy 2015, the number of days required for clearance of application has been reduced to
    21 days. The applications would be cleared at single information technology platform to enhance ease in doing business in the state.

   Andhra Pradesh has become the top ranking state as per the ease of doing business ranking in India.

   Violation of the provisions of the Act made either through self-assessment or otherwise would invite a penalty of US$ 109 in the first instance and
    US$ 219 in the second instance.

 39
Key investment promotion offices

  Corporations under Industries and Commerce Department

   Andhra Pradesh Industrial Development Corporation (APIDC)

   Andhra Pradesh Industrial Infrastructure Corporation (APIIC)

   Andhra Pradesh Mineral Development Corporation (APMDC)

   Andhra Pradesh State Finance Corporation (APSFC)

   Andhra Pradesh State Trading Corporation (APSTC)

   Andhra Pradesh State Handloom Weavers Co-operative Society Limited (APCO)

   Leather Industries Development Corporation of Andhra Pradesh (LIDCAP)

   Andhra Pradesh Handicrafts Development Corporation (APHDC)

   Andhra Pradesh Khadi & Village Industries Board (KVIB)

   Andhra Pradesh Urban Financial Infrastructure Development Corporation

   Directorate of Sugar and Commissionerate of Cane

   Directorate of Mines and Geology

   Commissionerate of Industries

 40
Contact list

                   Agency                                                      Contact information

                                                                  4th Floor, Parisrama Bhavan
                                                                  Fateh Maidan Road, Basheerbagh
                                                                  Hyderabad – 500 004
                       Andhra Pradesh Industrial Infrastructure
               -                                                  Phone: 91-40-2323 7622, 2323 7623
                       Corporation
                                                                  Fax: 91-40-2323 3251, 2323 1459
                                                                  E-mail: hyd@apiic.in
                                                                  Website: www.andhra.apiic.in

                                                                  Industries and Commerce Department
                                                                  2nd Floor, D Block, Room No-348A
                                                                  Secretariat
                                                                  Hyderabad - 500022
                       Department of Industries and Commerce
                                                                  Phone: 91-040-23454449
                                                                  Fax: 91-040-23452985
                                                                  E-mail: secy_inds@ap.gov.in
                                                                  Website: http://industriesportal.apcgg.gov.in

 41
Key approvals required…(1/3)

  Approvals and clearances required                          Departments to be consulted                Estimated time taken (days)

       Registration, Industrial Entrepreneurs
      Memorandum (IEM), Industrial Licenses                                                                          7 days
                                                                             Registrar of Firms

         Allotment of Land/Shed in Industrial                                                            • 7 days for up to 1,000 sq m
                                                                         Andhra Pradesh Industrial      • 21 days for above 1,000 sq m
                  Estates or Industrial Areas
                                                                         Development Corporation

                  Acquisition and alienation of
                                                                        Chief Commissioner of Land
                            Government lands                                                                        45 Days
                                                                          Administration (CCLA)
                  Building/Site Permission /
        Approval/License from Municipality/                               Department of Municipal
      UDA (Urban Development Authority) DT                                Administration & Urban                    7 Days
        & CP (Directorate of Town & Country                                    Development
                                  Planning)

         Building /Site Permission from Gram                           Department of Panchayati Raj &          15 days / Deemed
                                   Panchayat                                 Rural Development

           Approval of change of land use for                               Land Administration             If in Master Plan - 10 days
                          Industrial purpose                                  Department of              If not in Master Plan - 21 days
                                                                                 Revenue

             Consent for establishment under                                                                   • Green: 7 days
                            Pollution Control                            AP Pollution Control Board           • Orange: 15 days
                                                                                                                • Red: 21 days

 Source: Commissionerate of Industries, Government of Andhra Pradesh

 42
Key approvals required…(2/3)

  Approvals and clearances required                          Departments to be consulted                 Estimated time taken (days)

      No-Objection Certificate for Fire Safety                           Directorate of Fire Services                15 days
                                                                            Department of Home
         • Permission for Establishment of
                                  Distillery
       • Licence for possession and use of                                  Prohibition & Excise                   • 30 Days
                            Rectified Spirit                                   Department of                       • 21 Days
       • Licence for possession and use of                                       Revenue                           • 21 Days
                          Denatured Spirit

                            VAT/CST registration                       Commercial Tax Department of                  3 Days
                                                                                Revenue

                                                                                                                   • 7 Days
                             • Power feasibility                                                        • To be based on the length of the
                                                                       DISCOM-Department of Energy
                            • Power connection                                                                        HT line

                                                                           Directorate of Factories
                   • Approval of factory plans                         Department of Labor Employment          7 days / Deemed for
                           • Factory license                                Training and Factories              Registration only
  • Approval for water supply from ULB s-
                    MA & UD Department                                    Department of Municipal
                                                                                                                      7 Days
                     • Water connection                                   Administration & Urban
                                                                                                                     21 Days
                                                                                Department
            Permission to draw water from
       river/public tanks, Irrigation & CAD
   Department Permission to dig new wells                               Irrigation & CAD Department                  15 Days
           from Ground Water Department

 Source: Commissionerate of Industries, Government of Andhra Pradesh

 43
Key approvals required…(3/3)

  Approvals and clearances required                          Departments to be consulted                    Estimated time taken (days)

                  License for manufacture of
             ayurvedic, homeo, siddha, unani                            AYUSH-Department of Health,
                                                                          Medical & Family Welfare                      15 days

                                                                        Drug Control Administration
             License for manufacture of bulk                           Department of Health, Medical &                  15 days
             drugs / formulations / cosmetics                                 Family Welfare

                                                                           Registration & Stamps
             Registration of partnership firms                                                                           3 days
                                                                           Department of Revenue

                                                                       Commercial Tax Department of
          Registration under professional tax                                                                        Spot approval
                                                                                Revenue

                                                                         Commissionerate of Labor -
      Registration of shops & establishments                           Department of Labor Employment                Spot approval
                                                                            Training and Factories

                                                                       Directorate of Boilers Department
                                Boiler registration                    of Labor Employment Training and                 15 Days
                                                                                   Factories

       Registration of plastic manufacturers /                           AP Pollution Control Board                     15 Days
                                    recyclers

      License for storage of petroleum, diesel                         District Collector/ Civil Supplies
                                                                                  Department                            15 Days
                                   and Naptha

 Source: Commissionerate of Industries, Government of Andhra Pradesh

 44
Cost of doing business in Andhra Pradesh

  Parameter                                                                                                                      Cost estimate

  Land price (US$ per hectare)                                                                                                       373,416

  Labour cost (US$ / man year)                                                                                                        1,573

  Occupation costs (US$ / sq ft / year)                                                                                                18.4

                                                                                                                            Metropolitan Area: 9.1
  Electricity (US cents per kWh)
                                                                                                                             Non Metro Area: 9.4

  Cost of capital (Prime lending rate,%)                                                                                              10.57

  Employee cost (US$ / man year)

  Software developers                                                                                                                 6,383

  Team leads                                                                                                                         14,893

  Architects                                                                                                                        21,276.5

  Project managers                                                                                                                   31,915

   Andhra Pradesh topped the 2017 Ease of Doing Business Index, prepared by the World Bank and DPIIT.

 Source: Vijayawada Municipal Corporation, Visakhapatnam Industrial Water Supply Company, Property Sites, News articles, Travel sites, PwC report, Andhra Pradesh State Electricity
 Board

 45
State acts and policies…(1/4)

                     Andhra Pradesh Internet of Things (IoT) Policy 2016-2020
                     • To develop Andhra Pradesh as an IoT hub and accomplish a considerable share in the country’s

      1                IoT market by 2020.
                     • In IoT verticals, direct employment for at least 50,000 people and to create opportunities
                       related to employment in IoT space for educated youth of the state.                  Read more

                     Industrial Development Policy 2015-2020
                     •   To ensure sustainable & inclusive industrial growth and be among the top 3 states in terms of industrial

      2
                         investments by 2022
                     •   Be the most preferred logistics hub and India’s gateway to East and Southeast Asia by 2029.
                     •   To enhance the quantum and quality of skilled manpower and create significant employment
                         opportunities.                                                                              Read more

                     Textile, Apparel and Garments Policy 2018-23
                     • To attract new investments in value added textile activities worth Rs. 15,000 crore (US$ 2.24

      3                 billion) by 2023.
                     • To convert the major portion of yarn produced in the state into fabric and garment’s within the
                        state.                                                                               Read more

                     Andhra Pradesh Solar Power Policy 2018

      4
                     • To aid the development of solar power projects in the state and attract new investments for
                       capacity addition of 5,000 MW over next five years
                     • NREDCAP would act as the nodal agency and responsible for capacity allotment.
                                                                                                                      Read more

                     Andhra Pradesh Wind Power Policy 2015
                     • The new policy would replace the existing policy in order to attract new investments and

      5                achieve 4,000 MW capacity addition through wind power projects in the state
                     • NREDCAP would act as the nodal agency and would be responsible for capacity allotment of up
                       to 40 MW                                                                             Read more

 46
State acts and policies…(2/4)

                     Automobile and Auto-Components Policy 2015-20
                     • To provide a special focus on Automobile Industry by the provision of subsidies and

      6                reimbursements on CST, VAT/SGST. The development of Industrial Corridors(VCIC/CBIC) by
                       providing excellent port logistics and infrastructure has been highlighted in the policy.
                     • To attract high investments in the state and improving the employment status.           Read more

                     Food Processing Policy 2015-2020

      7
                     • To attract investments worth ~US$ 757 million by the end of 2020 in order to make the state as
                       one of the most preferred destinations for food processing industries
                     • Create 50,000 job opportunities in the state by 2020.
                                                                                                              Read more

                     Andhra Pradesh Single Desk Policy 2015-20
                     • To create a conducive ecosystem to provide all clearances required to setup industry within 21

      8                working days.
                     • To provide spot and deemed approvals based on self-certification and to provide parallel
                       processing of streamlined processes.                                                 Read more

                     New Tourism Policy-2015-20

      9
                     • To attract investments worth ~US$ 1.5 billion by the end of 2020 through projects under the
                       public-private participation (PPP) mode
                     • Create 500,000 job opportunities in the state by 2020.
                                                                                                              Read more

                     Biotechnology Policy - 2015-20

      10
                     • To attract investments worth ~US$ 908 million by the end of 2020 and support the state to
                        emerge as most preferred destination for biotech investments
                     • Create 5,000 job opportunities in the state by 2020.
                                                                                                              Read more

 47
State acts and policies…(3/4)

                     Innovation & Start-up Policy 2014-2020
                     • To provide special incentives and facilities for the electronic hardware sector in line with the

      11                present ICT policy. The policy would cover areas such as industrial electronics, communication
                        & broadcast equipment, computers & peripherals, and strategic electronics & components
                        (semiconductors, solar & displays).                                                     Read more

                     Andhra Pradesh Cyber Security Policy 2017

      12             • To create a robust cyber ecosystem in Andhra Pradesh
                     • Establishment of a Cyber Security framework and strengthening law enforcement agencies
                                                                                                               Read more

                     Andhra Pradesh Electronics Policy 2014-2020

      13
                     • To develop Electronics Industry as an important growth engine for Andhra
                     • The Policy aims to attract investments to the tune of US$ 5 billion in ESDM sector and create
                       an employment of 0.4 Million by 2020.
                                                                                                               Read more

                     Andhra Pradesh Port Policy 2015

      14
                     • To make minor ports of the state as the favoured ports for container cargos from North and
                       Central regions of the country.
                     • To allow commercial feasibility of various projects related to the ports.
                                                                                                               Read more

                     Andhra Pradesh Fisheries Policy 2015-20

      15             • To double the production and export of shrimp and fish to 4.2 million metric tons and US$ 2.4
                       Billion respectively.
                                                                                                               Read more

 48
State acts and policies…(4/4)

                     Industrial Development Policy 2020-23

      16             • To focus on reducing the cost of doing business and supporting MSMEs to achieve scale and
                        improve competitiveness.
                                                                                                              Read more

                     Andhra Pradesh State Mega Seed Park Policy, 2018

      17
                     • To make Andhra Pradesh one of the most preferred destinations for seed industry.
                     • To attract new Investments in seed industry worth Rs. 3,000 crore (US$ 0.45 billion) by 2023.
                     • To create additional employment opportunity for 40,000 personnel by 2023.
                                                                                                              Read more

                     Designated Technology Parks (DTP) Policy, 2017-2020

      18
                     • To incentivise real estate developers to build larger world class Information Technology (IT)
                       office spaces.
                     • To reduce the approval time for office spaces for IT companies from 50 days to 21 days.

                     Electric Mobility Policy- 2018-2023
                     • To attract investments worth Rs. 30,000 crore (US$ 4.47 billion) in manufacturing of electric

      19                vehicles (EVs) in the next five years and create 60,000 jobs
                     • To replace public transport buses in four cities to electric buses by 2024 and across the state by
                        2030.

                     Animation, Visual Effects, Gaming and Comics (AVGC) Policy 2018-2020

      20
                     • To attract investments worth Rs. 6,400 crore (US$ 954.65 million) in the sector by 2020.
                     • To bridge the demand and supply gap of human resources and capture a larger share of
                        outsourced work in gaming, animation, media and entertainment sector.

 49
APPENDIX

50
Sources

                        Data                                                                Sources

 GSDP (state)                                  Economic Survey 2019-20 (Andhra Pradesh)

 Per capita GSDP figures                       Economic Survey 2019-20 (Andhra Pradesh)

 GSDP (India)                                  Ministry of Statistics and Programme Implementation

  Installed power capacity (MW)                Central Electricity Authority

  Wireless subscribers (No)                    Telecom Regulatory Authority of India

  Internet subscribers (million)               Telecom Regulatory Authority of India

  National highway length (km)                 NHAI, Roads and Building Department-Government of India

  Major and minor ports (No)                   Indian Ports Association

  Airports (No)                                Airports Authority of India

  Literacy rate (%)                            Census 2011

  Birth rate (per 1,000 population)            SRS Bulletin 2017

 Cumulative FDI equity inflows (US$ billion)   Department for Promotion of Industry and Internal Trade

  Operational PPP projects (No)                DEA , Ministry of Finance, Government of India

  Operational SEZs (No)                        Ministry of Commerce & Industry, Department of Commerce

 51
Exchange rates

  Exchange Rates (Fiscal Year)                                                 Exchange Rates (Calendar Year)

                  Year Rs.                         Rs. Equivalent of one US$               Year                 Rs. Equivalent of one US$
                  2004-05                                   44.95                          2005                          44.11

                  2005-06                                   44.28                          2006                          45.33
                  2006-07                                   45.29                          2007                          41.29
                  2007-08                                   40.24                          2008                          43.42
                  2008-09                                   45.91                          2009                          48.35
                  2009-10                                   47.42                          2010                          45.74
                  2010-11                                   45.58                          2011                          46.67
                  2011-12                                   47.95                          2012                          53.49
                  2012-13                                   54.45                          2013                          58.63
                  2013-14                                   60.50                          2014                          61.03
                  2014-15                                   61.15                          2015                          64.15
                  2015-16                                   65.46                          2016                          67.21
                  2016-17                                   67.09                          2017                          65.12
                  2017-18                                   64.45                          2018                          68.36
                  2018-19                                   69.89                          2019                          69.89
                  2019-20                                   70.49                          2020                          74.18
                  2020-21                                   72.59                         2021*                          73.69

 Note: As of February 2021
 Source: Reserve Bank of India, Average for the year

 52
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