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Investment climate of a state is determined by a mix of factors
• • • •
Skilled and cost-effective labour Labour market flexibility Labour relations Availability of raw materials and natural resources
• • • •
Procedures for entry and exit of firms Industrial regulation, labour regulation, other government regulations Certainty about rules and regulations Security, law and order situation
Incentives to industry
• • • • •
Investment climate of a state
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Regulatory framework Physical and social infrastructure
Tax incentives and exemptions Investment subsidies and other incentives Availability of finance at cost-effective terms Incentives for foreign direct investment (FDI) Profitability of the industry
Condition of physical infrastructure such as power, water, roads, etc. Information infrastructure such as telecom, IT, etc. Social infrastructure such as educational and medical facilities
Advantage Andhra Pradesh State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Andhra Pradesh
ADVANTAGE ANDHRA PRADESH Andhra Pradesh November 2010 Andhra Pradesh – State Profile • Covering an area of 275. English and Tamil are the other languages used. Nellore and Kurnool are the other key cities in the state. Andhra Pradesh has three major rivers. viz. Warangal. Andhra Pradesh is the fourth-largest state in India after Rajasthan. Kakinada. Hyderabad is the capital city. The most commonly spoken language of the state is Telugu. It falls in the Southern peninsula of India and has a coast line of 974 km. The state has 23 administrative districts. Madhya Pradesh and Maharashtra. the Godavari. Source: Maps of India • • • • 4 . There are seven agro-climatic conditions and a variety of soils to support the cultivation of wide range of crops. the Krishna and the Thungabhadra. Tirupati. Guntur.100 sq km.Visakhapatnam. Vijayawada.. Hindi.
It is also a leading agricultural state in the country. the state has a large pool of semi-skilled and unskilled labour. the state has well drafted sectorspecific policies. Rich labour pool The state has a large base of skilled labour. 2010-2015. Additionally. in the 15 to 49 age group. Over 70 of the 500 top global corporations are present in the state. making it an ideal destination for the knowledge sectors. Further. Source: Maps of India 5 . especially. pharmaceuticals and biotechnology.ADVANTAGE ANDHRA PRADESH Andhra Pradesh November 2010 Advantage Andhra Pradesh … (1/2) Hub for knowledge-based industries Andhra Pradesh has emerged as a key state or the knowledgebased industry including IT. Policy and fiscal incentives The state offers a wide range of fiscal and policy incentives for businesses under the Industrial Investment Promotion Policy.
has good power.ADVANTAGE ANDHRA PRADESH Andhra Pradesh November 2010 Advantage Andhra Pradesh … (2/2) Facilitating infrastructure The state has well-developed social. The State Government is committed towards creating a progressive business environment. Source: Maps of India 6 . Stable political environment The state has a stable political environment with a single-party government. airport. physical and industrial infrastructure and virtual connectivity. IT and port infrastructure. High economic growth The GSDP of the state is growing at compound annual growth rate of 12 per cent annually. Vast natural gas reserves found in the Krishna–Godavari basin have opened up immense possibilities for the state economy.
as of June 2010 As of October 2008 Ministry of Road Transport & Highways.0 12+187 133 Social indicators Literacy rate (%) Birth rate (per 1. as of 2007-08.765 400.0 1+13 9 456.2 12.981. current prices CMIE.409.548.8 22.5 Central Electricity Authority. current prices CMIE.5 18. 2000-01 to 2007-08.4 159.586.325. 2001 Ministry of Health & Family Welfare. as of March 2010 Cellular Operators Association of India. as of 2007-08. 2008-09. RHS Bulletin.398.162 4.3 990. current prices Andhra Pradesh All-states Source GSM cellular subscribers (No) Broadband subscribers (No) National highway length (km) Major and minor ports (No) Airports (No) 33.ADVANTAGE ANDHRA PRADESH Andhra Pradesh November 2010 Andhra Pradesh in figures … (1/2) Parameter Economy GSDP as a percentage of all states‘ GSDP Average GSDP growth rate (%)* Per capita GSDP (US$) Physical infrastructure Installed power capacity (MW) 13.8 992.976 70.4 64.663 4.0 11.000 population) * In terms of Indian rupee 60. Ministry of Shipping Industry sources 8.537. Annual Report. March 2008 7 .0 100.8 Census of India.5 CMIE.
2 1.ADVANTAGE ANDHRA PRADESH Andhra Pradesh November 2010 Andhra Pradesh in figures … (2/2) Parameter Andhra Pradesh All-states Source Ease of doing business FDI inflows (US$ billion) Outstanding investments (US$ billion) Industrial infrastructure PPP projects (No) 74 515 www. tourism.com Functional as of August 2010. SEZ: special economic zone Parameter Policy support Sectors with specific policies Availability of labour Andhra Pradesh Government Industry overall.pppindiadatabase.972. biotechnology.sezindia.6 Department of Industrial Policy and Promotion. textile and apparel Adequate skilled labour available 8 . as of March 2010 SEZ (No) 22 121 PPP: public private partnership.1 120. Information and communication technology.8 146. www.in 4.nic. April 2000 to May 2010 CMIE.
natural resources and capital 9 .ADVANTAGE ANDHRA PRADESH Andhra Pradesh November 2010 Key industries with policy thrust and factor advantages Industry attractiveness matrix High Bulk drugs and pharmaceuticals IT and ITeS Textiles and apparel Agro and food processing Biotechnology Policy thrust Medium Low Medium *Factor advantage High *Factor advantages include benefits due to geographical location and availability of factors like talent pool.
ANDHRA PRADESH November 2010 Contents Advantage Andhra Pradesh State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Andhra Pradesh 10 .
3 50.gov.7 14. Census Operations.in) Director. Hyderabad Directorate of Economics and Statistics.aponline.P.5 70.2 38.9 11 .000 males) Literacy rate (%) Male (%) Female (%) Average life expectancy (years) Sources: Andhra Pradesh Government (www.6 978 60.STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Andhra Pradesh November 2010 Socio-economic snapshot of Andhra Pradesh Parameters Capital Geographical area (sq km) Administrative districts (No) Population density (persons per sq km) Total population (million) Male population (million) Female population (million) Decadal population growth rate (%) Sex ratio (females per 1. Hyderabad CMIE Andhra Pradesh Hyderabad 275.100 23 277 76.5 37. A.4 63.
0 20.8 billion in 2009-2010. Andhra Pradesh‘s GSDP (US$ billion) 100. the average annual GSDP growth was 12 per cent.9 53.0 85.0 60.3 81. Between March 2000 and March 2010.6 36.0 32.0 82.0 1999-00 Source: CMIE 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 27.6 30. the Gross State Domestic Product (GSDP) was US$ 85. This growth was primarily driven by the service sector and was supported by primary and secondary sectors.0 80.STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Andhra Pradesh November 2010 Andhra Pradesh‘s GSDP • • • At current prices.0 40.2 66.5 CAGR 12% 46.8 12 .0 0.6 43.
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Andhra Pradesh November 2010 Andhra Pradesh‘s NSDP • At current prices the Net State Domestic Product (NSDP) of Andhra Pradesh was about US$ 76. Andhra Pradesh‘s NSDP (US$ billion) 100. The average NSDP growth rate between 1999-2000 and 2009-2010.0 60.1 39.0 40.1 13 .0 80.0 20.9 billion in 2009-2010.9 47.0 1999-00 Source: CMIE 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 29. was about 11.9 per cent.9 • 58.6 33.9% 72.1 27.0 0.0 25.5 CAGR 11.6 42.7 76.7 73.
3 per cent) and primary sector (10.7 per cent (US$ 16.8 per cent followed by tertiary sector (12.9 per cent). contributing 28. During the period.7 2009-10 Tertiary sector 47.9 CAGR 12.3 billion).0 31.9 per cent to the GSDP (at current prices). It was followed by the primary sector.STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Andhra Pradesh November 2010 The tertiary sector has an increasing share in Andhra Pradesh‘s economy Percentage distribution of GSDP • In 2009-2010.9% • 0% 14 . the tertiary sector contributed 48.4 per cent (US$ 19.9 billion. at US$ 41.4 48.4 28. 100% 80% 60% 40% 20% 21. secondary sector had largest growth of 12.6 billion) and the secondary sector‘s contribution of 22.3% 12.6 1999-00 Primary sector Source: CMIE Secondary sector 22.8% 10.
000.0 400. A robust tertiary sector has helped Andhra Pradesh increase its average per capita GSDP by over 10.4 in 1999-2000 to US$ 1.STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Andhra Pradesh November 2010 Per capita GSDP • The per capita GSDP of Andhra Pradesh increased almost 2.6 CAGR 10.6 in 2009-2010.7 990. Per capita GSDP 1.4 662.025.8 per cent between 1999-2000 and 2009-2010.0 • 1025.0 200.0 US$ 600.5 553.0 1.0 800.0 812.200.0 1999-00 Source: CMIE 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 366.8 times from US$ 366.1 471.8% 589.0 0.6 15 .4 394.0 426.9 990.
689 proposal for large scale industries.STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Andhra Pradesh November 2010 Industries in Andhra Pradesh • The natural resources. mines and minerals. Forming industrial clusters and developing infrastructure has been a key strategy of the state to attract investments in various industries. leather and tourism.344 people. textiles.4 billion are at various stages of implementation. policy incentives and infrastructure in the state are favourably suited for investments in major sectors such as drugs and pharmaceuticals. 2. IT and ITeS.931 have been implemented attracting investment of US$ 11. the state has received 6. Andhra Pradesh is one of the foremost states to have developed sector-specific policies. 16 .5 billion and providing employment opportunity to 437.016 proposals with investment of US$ 60. biotechnology. Key industries in Andhra Pradesh • • • • • Agro and food-based industry Biotechnology Bulk drugs and pharmaceuticals IT and ITeS Mines and minerals Textiles and leather • • • • Tourism • • Another 2. of which. Between August 1991 and September 2009.
ragi. chilly and onion.8 million tonnes in 2007-08 to 20. pulses and jowar.448.462.STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Andhra Pradesh November 2010 Andhra Pradesh – among the three largest food-grain producers in the country • In 2008-09.0 729. Crop Sugarcane Rice Annual production (‗000 tonnes) 15. Other major crops produced were sugarcane. groundnut.241. Major food grains^ produced in the state are rice. maize.152.4 million tonnes in 2008-09.0 149. 17 . Government of Andhra Pradesh.0 436. pulses and other millets.0 14. Andhra Pradesh was among the three largest producers in the country of rice.4 million hectors which remained stable over last three years. production of food grains increased from 19.0 973. total area in the state under production of food grains was 7. However. jowar.0 728. bajra. Socio Economic Survey 2009-2010 as of 2008-09 *A variety of Jute. maize.0 1.322. groundnut and sunflower seeds. because of increased productivity. in million bales ^Food grains include rice.0 2.0 4. wheat. maize.0 3. cotton.94 • Maize Cotton Pulses Groundnut • Chilly Onion Jowar Greengram Mesta* • • Source: Department of Agriculture. In 2007-08.
0 29. the State Government offers a special package of incentives to the export oriented units (EOU).3 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 0 10 16. Export package to EOUs under the Industrial policy • 60 Source: Capital Markets Sales tax exemption on purchase of raw materials. animal and marine products. The state‘s major exports products are software and electronic parts which contribute around 50 per cent of exports. Engineering goods. Grant of 30 per cent on ground rent for participation in the international trade fairs.2 20 30 40 50 3. Annual exports growth trends (%) 2007-08 21.STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Andhra Pradesh November 2010 Andhra Pradesh‘s exports trends • Andhra Pradesh‘s exports increased at a compound annual growth rate (CAGR) of about 26.7 • 50. and agriculture and agro-based products are other major export items. drugs and pharmaceuticals. leather. • Financial assistance through Andhra Pradesh State Financial Corporation (APSFC) at concession rates.5 26. subject to a maximum limit of nine sq m. • 18 .8 23.3 • In order to boost exports from Andhra Pradesh.6 per cent between 2001-02 and 2007-08.
8 billion.8% 22. primarily. automotive.STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Andhra Pradesh November 2010 Investments and FDI inflows • According to the Reserve Bank of India. electricity.5% 31. FDI inflows from April 2000 to May 2010 amounted to US$ 4. in sectors related to IT and ITeS. The state has had a healthy FDI inflow over the years.8% • Irrigation Construction ^Excluding financial services Source: CMIE 19 .8% 23. Andhra Pradesh had a well balanced distribution by sectors with manufacturing.1% Manufacturing Mining Electricity Services^ 16. Break up of investments by sectors as of March 2010 • 23. Of the total outstanding investments of US$ 146.1 billion as of March 2010.5% 4. engineering and electronics. irrigation and construction sharing project investments of about 16 per cent to 32 per cent each. services.
ANDHRA PRADESH November 2010 Contents Advantage Andhra Pradesh State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Andhra Pradesh 20 .
Roads under the State Road and Building Department was 69. there were 41 publicprivate partnership (PPP) projects in the roads sector that are at various stages of development.537 km. As of August 2010. • • As on March 2009. • Source: Maps of India 21 . Andhra Pradesh has 17 National Highways running through it and covering 4.INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Road network • As on March 2009.86 km.051 km. road density per thousand population was 0.
311.9 360.7 km of broad gauge and 184.2 569. The state has a total of 748 railway stations. Directorate of Economics and Statistics website.0 0. The total cost for the MRTS project has been estimated at US$ 2.6 Total 1. which is under the control of the South Central Railway with Secunderabad as the headquarters.306.2 569.2 945.in.8 1. www. The Central Government has already sanctioned 20 per cent of the project cost through the viability gap funding (VGF) mode. http://scrailway.5 million passengers per day by 2015 and 2. The rail network comprises of 4. Project description.0 5.7 km of metre gauge tracks. the Mass Rapid Transit Service (MRTS) project is expected to carry about 1.4 km.8 1.INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Railway network … (1/2) • Andhra Pradesh has a total railway network of 4.2 617.121.2 million passengers per day by 2025.in.0 175.apdes. Hyderabad metro rail website.102.hyderabadmetrorail.gov.3 Metre gauge 0.ap.2 945.748. www. AP Admin setup.6 billion. South Central Railway network Division Secunderabad Broad gauge 1.9 5.7 0.311.0 184.6 617.0 0.gov.287.in 22 .9 • Vijaywada Guntakal Guntur • Hyderabad Nanded Total • Sources: South Central Railways website. When completed.388.6 998.6 823.
In September 2010. The metro rail project is environmental friendly and is expected to reduce pollutants by about 3. • 23 . construction work of the project has been awarded to Larsen & Toubro Limited through competitive bidding process.INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Railway network … (2/2) • • The state is the first to have a PPP Metro Rail project sanctioned by Government of India.100 tonnes per annum (TPA).
GMR-Hyderabad International Airport Limited (GHIAL).INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Airports • The state has an international airport at Hyderabad and domestic airports at Visakhapatnam. The Rajiv Gandhi International Airport near Shamshabad (about 27 km from Hyderabad) is a newly completed airport. Source: GHIAL website. Total built-up area of 900. Bangkok.Vijayawada.449 acres.Warangal. London and Kuala Lumpur. Hyderabad is connected to several key international destinations such as Amsterdam. A new flight academy to be established at the airport. Singapore.000 sq m. it has been built on an area of 5. Constructed by the consortium of: • GMR group • Malaysia Airport Holding Berhad (MAHB) • Government of Andhra Pradesh • Airports Authority of India Single terminal. besides all major destinations across India. Rajahmundry.Tirupati. Kadapa and Puttaparthy. Chicago. www. Shamsabad Started operations in May 2008. repair and overhaul (MRO) facility at the airport. The total cost for this project was US$ 560 million. expandable structure Final capacity of 40 million passengers per year and one million tonne of cargo. Dubai. Lufthansa Technik to set up a maintenance.hyderabad. Donakonda.aero • • • 24 . It has replaced the former international airport of the city at Begumpet. Sharjah. Frankfurt.
In 2008. • Coking coal. In 2009-2010. the state has 13 intermediate and minor ports.9 65.5 63.3 64.5 million tonnes which accounted for 11. the minor ports at Andhra Pradesh handled about nine per cent of the total traffic at all minor ports across the country. It also has a high volume of container traffic. iron ore.7 per cent of total port traffic at all major ports.5 ^Year ended in March 2010 Source: Visakhapatnam port 25 . The Visakhapatnam port ranks amongst the top three of the 12 major ports in the country. 70 60 50 40 30 20 10 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010^ 22 23 26 30 33 34 36 36 40 45 44 46 48 • • Visakhapatnam Port Traffic (million tonnes) 56 50 56.INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Ports • • Andhra Pradesh has the second-highest cargo-handling port after Gujarat. petroleum products and thermal coal are some of the key products handled by the port. Other than Visakhapatnam. it had a port traffic of 65.
Reliance Communications has created infrastructure for providing the required bandwidth for basic telecom services and other high-end services by laying a fibre-optic cable backbone of 3. Department of Telecommunication. one gbps to each of the 1. • • • Sources: Chief General Manager. The number of public call offices as of March 2009 was 200. • • The State Government has appointed an agency to provide reliable communications backbone. There are about 41.000 offices across the state. there were 16.291. Andhra Pradesh had 4. It would connect the state secretariat to district headquarters.146 post offices in the state.4 million cellular subscribers (GSM and CDMA) and 400.128 mandal headquarters and 100 megabit per second to each of the villages.000 km of fibreoptic cable network with public and private sector connectivity.166 telephone exchanges and 2. • • • The state has approximately 44. As of January. annual report 2009-2010 26 .000 km throughout the state. Andhra Pradesh. mandals and villages.000 broadband connections.INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Telecom infrastructure • As of December 2009.5 million wire line telephone connections. The broadband network being implemented with private participation would connect the state headquarters with 10 gigabit per second (gbps) to each district headquarter. 2010. which will provide gigabit ethernet connectivity to all government departments and 40. bringing the information superhighway to the doorstep of the common man in rural areas. Telecom.
000.0 6.INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Power … (1/2) • As of March 2010.591.000.6 11.0 4.000.688.5 MW were major sources of electric power in the state.0 12.617.000.409. Per capita consumption of electricity was 746 units in 2008-09.000.260 MW and 2.483.000. 3.0 2005-06 2006-07 2007-08 2008-09 2009-10 11.866.000.0 8.0 0.129.0 10.3 MW under central utilities and 2.1 13.8 11.4 MW.580.6 MW under the private sector.809.0 2. Installed power capacity (MW) 14.4 and hydropower plants with capacity of 3. Coal.4 11.409.4 • • Source: Central Electricity Authority • 27 . Andhra Pradesh had a total installed power generation capacity of 13. The entire capacity of gas-based power plants is contributed by the private sector.and gas-based thermal power plants with installed capacity of 6.639. which comprised 7.5 MW under state utilities.
Tirupati Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL). Hyderabad Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL). Warangal AP Genco‘s hydro-power plants AP Genco‘s thermal power plants 28 .INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Power … (2/2) • The integrated Andhra Pradesh State Electricity Board (APSEB) was restructured in 1999 to form the following companies: Segment Power generation Power transmission Power distribution Company name Andhra Pradesh Power Generation Corporation Limited (AP Genco) Transmission Corporation of Andhra Pradesh Limited (AP Transco) Central Power Distribution company of Andhra Pradesh Limited (APCPDCL). Visakhapatnam Northern Power Distribution Company of Andhra Pradesh Limited (APNPDCL).
INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Urban infrastructure … (1/2) Sewerage system and solidwaste management system • Water supply • Per capita water supply across key cities The average per capita supply of water in major cities is 106 lpcd* A coverage of 85 to 90 per cent in the core city areas. Andhra Pradesh. • Solid waste collection efficiency is very high across the cities of Andhra Pradesh and varies from 85 to 100 per cent. for all the cities • • Area coverage of the sewerage system in the major cities varies from 10 per cent to 45 per cent Current per capita supply (litres/day) Desired Level Source: Commissionerate of Industries. on an average. at 85 per cent in Hyderabad. 2006 * litres per capita per day 29 . Operation and maintenance costs being recovered from water tariffs is high.
water supply. Percentage coverage of storm water drains varies from 30 per cent to 50 per cent.in 30 .Visakhapatnam. Sewerage treatment infrastructure (%) 50 40 30 20 10 10 0 Hyderabad Vijaywada Vishakapatnam Treated (%) Area Coverage (%) 10. drains/storm water drains and sewerage. Some of the key areas of development are roads/flyovers. In 2009-2010. Projects of value US$ 216.03 km. These projects were located in Hyderabad and Vishakhapatnam and related to roads. 50 projects costing US$1. the Central Government has released US$ 52.5 million for 22 projects.nic.5 23 45 40 • • Visakhapatnam‘s urban Infrastructure snapshot • • Visakhapatnam has a high per capita road length of 1.8 million have been completed. In 2007-08. Ministry of Urban Development. solid-waste management and mass rapid transport system.162. • • Source: JNNURM. storm water drainage.Vijayawada and Tirupati.INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Urban infrastructure … (2/2) • Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). one project of US$ 150. old city drains. water supply. Percentage of pucca roads in the cities varies from 70 per cent to 95 per cent. www.urbanindia.3 million have been completed in 2005 and 2007.1 million have been sanctioned for Hyderabad.
com Urban development Roads Roads Urban development Tourism Roads Roads Roads DBFOT BOT-Toll BOT-Toll Lease Lease BOT-Toll BOT-Toll BOT-Toll 195.2 54.5 103.3 13.pppindiadatabase.2 260.2 358.0 143.5 Construction Bidding Bidding Bidding Bidding EOI EOI EOI EOI-Expression of interest. BOT: build-operate-transfer.5 113.0 295.6 344. BOOT: build-own-operate-transfer.652. DBFOT: design-build-finance-operate-transfer 31 .6 Stage Construction Construction Construction Vodarevu Nizampatnam ports and port-based corridor development Gangavaram Port Cuddapah Mydukur Kurnool road Integrated solid waste management for Hyderabad Four-laning of Hyderabad Karimnagar Ramagundam road Narketpally Addanki Medaramitla road Bus terminal and commercial development at Musheerabad Health spa and resort Four-laning of Khammam Tallada Devarapally road Four-laning of Perecherla Thokapalli road Four-laning of Warangal Khammam road Source: www.INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Key public private partnership projects Project name Sector Ports Ports Roads PPP type BOOT BOT-Toll BOT-Toll Project cost (US$ million) 3.
145. The total number of teachers was 449.000 English-speaking graduates every year.000 management graduates and 350.INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Education sector … (1/2) • • The state had a literacy rate of 60. the male literacy figure stood at 70.5 per cent in 2001 as against 44. • In 2008-09.000 engineering graduates. There were 65.376 high schools and 100 higher secondary schools. In 2001. 14. The state adds more than 100. 17.027 schools.609 primary schools. 12. • • 32 . while female literacy was at 50. total of 13.942 upper primary schools.3 per cent.7 million students were enrolled in 98. The Hyderabad University and the Osmania University are among the leading universities of the country.1 per cent in 1991.4 per cent.
33 . Government of Andhra Pradesh Life-sciences institutes • • • • • • • Government colleges: 249 Aided colleges: 179 Un-aided colleges: 1.8 million students. engineering and technology. Degree colleges. courses are available in the science. 2009-2010 Course Number of colleges 656 703 881 278 213 • Master of Computer Application (MCA) Master of Business Administration (MBA) Bachelor of Pharmacy Polytechnics • • The Technical Education Department of Andhra Pradesh supports 656 engineering colleges. arts and commerce streams. and humanities.459^ Under-graduate and post-graduate colleges: 5. National Academy of Agricultural Research Management National Institute of Nutrition Indian Council of Agricultural Research Centres. 2009-2010 Degree colleges • • • • Source: Socio Economic Survey 2009-2010.611 junior colleges with a total enrolment of 0. home science. In 2009-2010.INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Education sector … (2/2) • At the intermediate college level. there were 4. Vocational courses are offered in the fields of agriculture. paramedical. business and commerce.236^ ^As of 2008-09 Source: Socio Economic Survey 2009-2010 Centre for Cellular and Molecular Biology Centre for DNA Fingerprinting and Diagnostics Indian Institute of Chemical Technology International Crop Research Institute for Arid and SemiArid Tropics (ICRISAT) Directorate of Rice Research. Engineering Colleges by courses.
INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Health infrastructure • As of March 2008.5 52 L V Prasad Eye Institute Krishna Institute of Medical Sciences 34 . There are 12. Andhra Pradesh had 1. Leading hospitals in Hyderabad Apollo Hospital Yashoda Super Specialty Hospitals • Care Hospital Wockhardt Kamineni Hospital Nizams Institute of Medical Sciences • MNJ institute of Oncology and Regional Cancer Centre Indo-American Cancer Institute and Research Hospital Global Hospital Medwin Hospital Health indicators Birth rate* Death rate* Infant mortality rate** *Per thousand persons ** Per thousand live births Source: Ministry of Health & Family Welfare As of March 2008 Medicity Hospital 18. with 2. There were 167 community healthcare centre (30 beds in each) with 235 specialists. Hyderabad has approximately 60 hospitals that classify as authorised centres for providing medical services.214 doctors.570 primary healthcare centres (4-6 beds in each).4 7.522 sub-centres in the state.
HITEX. Balayogi Athletic Stadium Gachibowli Indoor Stadium Fateh Maidan Sports Complex The Lal Bahadur Stadium The Lal Bahadur Stadium Aquatics Complex Kotla Vijay Bhaskar Reddy Indoor Stadium SAAP Tennis Complex. Ramoji Film City. The Army Golf Course in Secunderabad and the East Point Golf Club in Visakhapatanam are well known golf courses in the state. M. The Tirupati temple in Southern Andhra Pradesh makes the state one of the leading religious tourism spots in the country. Swimming and tennis are the major sports although.INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Cultural infrastructure • There are several sports complexes in Hyderabad. Hyderabad International Convention Centre. Fateh Maidan Shooting Range. other games are also popular. Marriott Convention Centre. Major stadiums and sports complexes in Hyderabad Swarnandhra Pradesh Sports Complex G. Visakhapatnam. AP Tourism promoted convention centres in Hyderabad state include Taramati Baradari. C. Shilpa Kala Vedika. The Boulders Hill in Hyderabad. Katriya De Royal – Convention Facilities.Tirupati and other cities. Hyderabad Central University Rajiv Gandhi International Cricket Stadium • • • 35 .
SP Bio-tech Park. IT and Communications Department website. HITEC city.INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Industrial infrastructure development … (1/2) • On the industrial infrastructure front.in.hyd.303 units were registered with the STPI.in • . Hyderabad. special economic zone (SEZ). the state has taken a number of developmental initiatives to achieve consistent economic growth. http://apit. food processing park and agri-export zones.stpi. The Government has initiated a set of prestigious projects including those in industrial infrastructure for the specific sectors. ICICI Knowledge Park. through the Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC). Hardware Park. As of August 2010.gov. Pharma City. 1.ap. Export Performance of IT/ITES Industry for the year 2008-09. APIIC has already helped set up over 300 industrial estates and specialised parks including the L&T Infocity. there were 69 Software Technology Parks of India (STPI) in the state. Marine Bio-tech Park. STPI website. IT SEZs. 36 Number of STPI registered in India and Andhra Pradesh (No) 1400 1200 1000 800 1164 1052 845 616 • 600 400 200 173 174 176 69 • 0 2005-06 2006-07 All India 2007-08 AP 2008-09 • Sources: IT parks. Agri Bio-tech Park. www. leather parks.presentation. As of 2008-09.
36 million.ap.Tada (Nellore). Genome Valley Genome Valley is India‘s first state-of-the-art life sciences cluster. Employs more than 12. Comprises dedicated parks such as ICICI Knowledge Park and Shapoorji Pallonji Biotech Park developed on a public-private partnership (PPP) model.INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Industrial infrastructure development … (2/2) • Integrated Infrastructure Development Centres (IIDC) to establish industries in rural/backward areas and provide agriculture–industry link.500 persons. in-principle approval to four SEZs and 74 notified SEZs. 2006. spread over 204 acres in Medak.in 37 . http://budget. Centres are located in Nandyal (Kurnool).nic. www. Critical Infrastructure Balancing Scheme (CIBS) to fund Industrial associations/service societies/NGOs for development of critical infrastructure. The Central Government has given formal approval to 106 SEZs.7 acres of land.8 million sq ft on 20. Andhra Pradesh Government budget website. Spread across 158 acres at Madhapur with state-of-theart infrastructure.in. • • Sources: Commissionorate of Industries. at an estimated cost of US$ 35. • • Larsen & Toubro (L&T) Infocity Developed jointly by APIIC and L&T. Built in three phases with total built-up area of 1. Keelapattu and Madikonda (Warangal).gov. APIIC has developed an Export Promotion Industrial Park (EPIP).sezindia. SEZ India website. Andhra Pradesh. Provides access to world-class infrastructure to domestic and international companies. Gajularamaram (Ranga Reddy) and Surampally (Vijaywada). spanning 600 sq km in Hyderabad.
INFRASTRUCTURE STATUS Andhra Pradesh November 2010 SEZs and industrial clusters Upcoming SEZs Industrial clusters in AP ANDHRA PRADESH Industrial Clusters MAHARASHTRA Sircilla Warangal Rangareddy Hyderabad Bheemavaram Nalagunda Guntur Karnool Kadapa Hindupur Chittoor Kuppam Ongole Vijaywada Khammam Vizianagaram Vishakapatnam MADHYA PRADESH KARNATAKA Nellore Automobiles & Engineering IT / ITES Pharma / Biotech Mineral Textile & Apparel Food Processing N TAMIL NADU 38 .
INFRASTRUCTURE STATUS Andhra Pradesh November 2010
Infrastructure investments in Andhra Pradesh were over US$ 33.4 billion, as of March 2010. Over 56 per cent of investments in infrastructure were in the area of power generation and distribution. About 15.3 per cent of the investments were in the road sector, while another 14 per cent were in the railways sector. Other sectors such as shipping (8.8 per cent), airport (3.5 per cent) and oil and gas (2.3 per cent) also attracted investments.
Infrastructure type Power* Roads Oil and gas Railways Airport Shipping Total
*Generation and distribution Source: CMIE As of March 2010
Investments (US$ million) 18,864.7 5,122.8 753.1 4,571.5 1,162.8 2,927.6 33,402.5
INFRASTRUCTURE STATUS Andhra Pradesh November 2010
Existing mega parks
Location (district) Chittoor Medak Ranga Reddy Name of the park Food processing park Export promotion industrial park Agri-biotech park Apparel park Biotech park Financial district Gems and jewellery park Hardware park Hi-Tech city Hitex exhibition centre ICICI knowledge park Industrial estate for lady entrepreneurs International convention centre Mind Space IT parks Visakhapatnam AP SEZ JN Pharma City park Visakhapatnam industrial water supply project Visakhapatnam SEZ
INFRASTRUCTURE STATUS Andhra Pradesh November 2010
Upcoming specialised parks
Location (district) Ranga Reddy Name of the park Pharma cluster Location (district) Visakhapatnam Name of the park Brandix textile city
Business district and trade towers
Rajiv Gandhi nanotech park Semindia Fab city Hardware park Aero park Auto park Nalgonda Medak Anantpur
Apparel export park Marine biotech park Handloom textile park Textile park Textile park
IT parks (three)
Food processing park
Food processing park Textile park Petroleum. Chemicals and Petrochemicals Investment Region (PCPIR) Food processing park
Sircilla, Karimanagar Vijayawada, Krishna
Textile park Auto component
Mahabubnagar Visakhapatnam, Vizianagaram, East Godavari Nellore
420 acres and the remaining 700 acres would have common facilities and utilities with green areas and open spaces in the park. it has a saleable area of 1. effluent treatment plants. Jawaharlal Nehru Pharma City (JNPC) 42 . Visakhapatnam.Jurong Corporation of Singapore.INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Sector-specific industrial parks … (1/2) Industry Lifesciences Name of the park. power and street lighting. Infrastructure includes water supply. Designed by JTC . at an estimated cost of US$ 73. About 600 acres have been earmarked for setting up a Pharma SEZ. hazardous waste management facilities.17 million through a PPP model between the State Government and Ramky Pharma City (India) Limited. JNPC project is being developed at Parwada. location Agri-science park Brief description The State Government and ICRISAT have jointly set up an agri-science park at the ICRISAT campus to support the growth of agri-based biotech industry in the state.
location Apparel Export Park Brief description The park is spread over 172 acres in Gundlapochampally and has units exporting to the US.000. Centre Government approved project under the Textile Centre Infrastructure Development Scheme. Pashamylaram Brandix India Apparel City. Pamidi Handloom Apparel Park. Commercial operations started in January 2007.INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Sector-specific industrial parks … (2/2) Industry Apparel and textile Name of the park. Proposed to be developed as a natural garment cluster with basic infrastructure facilities and skilled manpower. 50 acres of land have been developed. assured water supply and singlewindow clearance for all approvals. has a 33/11 kV substation with uninterrupted power supply. CAD centres. textile processing units. Set up in an area of 1. common effluent treatment plants. testing labs. The Government has identified 50 acres on National Highway-9 near the Pochampally Silk City and has approved the project at an outlay of US$ 810. business resource centres. the UK and other countries and for stores such as WalMart and JC Penny. Sircilla Textile Park. The park has been developed on 60 acres for providing facilities such as training centres. So far. Visakhapatnam Textile Park. Visakhapatnam Apparel Export Park. Pochampally 43 .8 million by Brandix Lanka Limited.000 acres at a project cost of US$ 609. Textile Park. Project developed on 146 acres of land for accelerated industry growth there.
certificates and representations to different government departments. the portal is servicing 29 government departments. deposits and stamp duties.3 billion have been handled through the portal. transparent and integrated manner Facilitates online transaction processing of payments. • • • Automates procurement and purchase procedures— spanning from demand aggregation to procurement and fulfilment—of the State Government. taxes. licences. offers multiple services through a single window to citizens Developed and launched by the Government in partnership with Tata Consultancy Services Facilitates online submission of forms including registrations. licenses and many other services • Launched by the State Government in August 2004. reliable. Eprocurement website. fee. it aims to provide computer literacy to at least one person in each family in rural areas Provides high bandwidth connectivity in rural areas E-governance: gateway for the State Government. www. issue certificates. Further. • • • • Source: "Mauritius pact with State Government". Presently.eprocurement. Over 61.in 44 .gov.000 tenders with work amounting to US$ 26.INFRASTRUCTURE STATUS Andhra Pradesh November 2010 Virtual infrastructure E-seva • Rajiv Internet Village • AP online • E-procurement • Presence of e-governance initiative. permits. 39 public sector undertakings. which offers a wide spectrum of citizenfriendly services One-stop shop for services of various state and central government departments in an efficient. four universities and 127 urban local bodies. Facilitates online payments for utilities. its objective is to bring government services/benefits closer to people living in rural areas. permits.
ANDHRA PRADESH November 2010 Contents Advantage Andhra Pradesh State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Andhra Pradesh 45 .
000 persons per year (200.16 billion of investment in the manufacturing sector. Creation of additional employment of 500. that creates increasing employment opportunities. Provide special focus on micro-. 46 . To build conducive ecosystem for sustained growth of industry. and raises wage incomes to higher levels through skill upgradtion so as to improve the quality of life of citizen of the state.000 indirect employment).and medium –scale enterprise (MSME) with emphasis on food processing. Objectives: • • • • • • • • Promote Andhra Pradesh as ‗the best‘ investment destination. Increase growth of manufacturing sector from 12 per cent to 17 per cent per annum.STATE POLICIES AND INCENTIVES Andhra Pradesh November 2010 Sector-specific policies … (1/12) Andhra Pradesh Industrial Investment Promotion Policy (IIPP). every year . To enhance the knowledge and skills of human resources for better productivity and global competitiveness. 2010-2015 Vision: To build a strong and vibrant industrial economy that spins off large capital formation in the state and advances inclusive development of all sections of people and industry. To create enabling environment for ensuring maximum value addition to the abundantly available resources. small.000 direct employment and 300. Attracting US$ 3.
based on factors such as technology induction. Reimbursement of 50 per cent of VAT. the local micro and small enterprises will be offered reasonable part of the order at lowest bid value. to an upper limit of US$ 4.7 million or providing employment for more than 2.and small. i.enterprises (MSE): • Subsidy of 15 per cent of fixed capital investment . etc. CST or SGST for a period of five years for medium and large enterprises.STATE POLICIES AND INCENTIVES Andhra Pradesh November 2010 Sector-specific policies … (2/12) IIPP. All projects with investments more than US$ 52. Interest subsidy on term loan for MSEs in excess of three per cent per annum subject to a maximum of nine per cent per annum for a period of five years. Reimbursement of 50 per cent of cost incurred in quality certification / patent registration. 2010-2015 (continued) Incentives: For micro.194. Price preference to the extent of 10 per cent. will be classified as mega projects and will be considered for tailor-made benefits. location of units.000 people. Providing tender forms free of cost. • • • • • Incentive for medium and large industries: • • Reimbursement of 25 per cent of VAT.subject to a maximum of US$ 42.e. CST or SGST for a period of five years for small enterprises. • Reimbursement of 100 per cent of value added tax (VAT) / central sales tax (CST) or state goods and service tax (SGST) for a period of five years for micro enterprises.. where the bid by micro and small enterprises are within 10 per cent of lowest bid. employment opportunity. 47 .219. Exemption from paying earnest money deposit (EMD) and security deposit (SD).
Reimbursement of 100 per cent of stamp duty for lease of land/shed/building and also for mortgages and hypothecations. • • 48 .548.097. 2010-2015 (continued) Incentives: For enterprises managed by women: Enterprises started by women entrepreneurs as sole proprietary concerns/partnership/private limited companies or cooperatives which have 100 per cent women participation in the enterprise will be eligible for the following benefits: • • • All the benefits as per IIIP. Reservation of 10 per cent of land in the industrial estate / parks developed by APIIC. total of 20 per cent) subsidy on investment. For enterprises managed by entrepreneurs belonging to scheduled cast (SC) and scheduled tribe (ST): Industrial units which have been established under sole proprietorship of SC/ST entrepreneurs or those partnership or private limited companies with 100 per cent share belonging to SC/ST entrepreneurs will be eligible for following benefits: • Reimbursement of 100 per cent of stamp duty and transfer duty paid by the industry on purchase of land meant for industrial use.STATE POLICIES AND INCENTIVES Andhra Pradesh November 2010 Sector-specific policies … (3/12) IIPP.e. Additional five per cent (i. 2010-2015. limited to US$ 10. Reimbursement of 25 per cent of land conversion charges for the industrial use.. limited to US$ 21.
Subsidy of eight per cent on capital expenditure on equipments for technology upgrade. medium and large enterprises will be reimbursement VA. Micro. CST or SGST to the extent of 100 per cent. which will be deducted from the eligible investment subsidy. Interest subsidy on term loan for fixed capital investments by micro and small enterprises in excess of three per cent per annum subject to a maximum of nine per cent per annum for a period of five years. Cost of power will be reimbursed at US$ 2. Preferential allotment of land in the industrial estates developed by APIIC.1 cent per unit for five years as per guideline. 50 per cent and 25 per cent respectively.485 (for MSMEs) • • • • • • • • Reimbursement of 50 per cent of expenses incurred for quality certification/patent registration up to a limit of US$ 4.219 for MSMEs. 49 . limited to US$ 105.33 per cent subsidy on land cost at industrial estates and industrial development areas. 33. additional five per cent subsidy for SC/ST women and additional five per cent investment subsidy for the units set up in the scheduled areas by ST entrepreneurs up to a maximum limit of US$ 105. 2010-2015 (continued) Incentives: For enterprises managed by entrepreneurs belonging to scheduled cast (SC) and scheduled tribe (ST) (continued): • Seed capital assistance to first generation entrepreneurs to set up micro enterprises in form of 10 per cent subsidy on cost of machineries .485. limited to US$ 21.097. small. Subsidy of 35 per cent on fixed capital investment.STATE POLICIES AND INCENTIVES Andhra Pradesh November 2010 Sector-specific policies … (4/12) IIPP.
Kakinada and Warangal). tier-II locations (Vijayawada. Special focus areas of the policy are start up companies.000 direct employment. Leverage IT as a tool for the socio-economic development of the state. Generate 125. To spread IT to nook & corner of the state. industry-friendly and proactive climate for IT companies to locate. promotion of IT incubation facilities at engineering colleges. Achieving higher levels of exports resulting in enhanced productivity. SC/ST entrepreneurs. and augmentation of GSDP. Achieve annual growth rate of 17 per cent for the IT sector in the state. gaming and digital entertainment. grow and sustain their operations in most competitive and hassle-free environment. tier-III locations (other than Hyderabad and tier-II locations) .000 indirect employment. Tirupati. women entrepreneurs. The objective will be achieved through the following: • Provision of congenial. Computer training for e-literacy. IT product/research and development companies. corporate social responsibility. electronic hardware (non-hazardous) and eGovernance. Generate 500. promotion of women‘s participation in IT sector.STATE POLICIES AND INCENTIVES Andhra Pradesh November 2010 Sector-specific policies … (5/12) Information and Communications Technology (ICT) Policy. Creation of employment opportunities to the educated youth of all sections of the society across all regions. • • • • Key targets: • • • • • • Achieve exports of US$15 billion by the IT sector in the state. animation. engineering services. 50 . small and medium enterprises (SMEs). 2010-2015 Objectives: To make Andhra Pradesh as one of the fore runners in IT sector in the country.
The Employment Exchanges (Compulsory Notification of Vacancies) Act 1959. The Payment of Wages Act 1936. IT industry will be exempt from inspections under the following. except with respect to power generation sets. IT/ITeS units or companies and non-hazardous hardware manufacturing industry are declared as essential service under AP Essential Services Maintenance Act. The Maternity Benefit Act 1961. The AP Shops & Establishments Act 1988. barring inspections arising out of specific complaints: • • • • • The Factories Act 1948. • • • • • • The Contract Labour (Regulation & Abolition) Act 1970.STATE POLICIES AND INCENTIVES Andhra Pradesh November 2010 Sector-specific policies … (6/12) ICT Policy. 51 . The Minimum Wages Act 1948. Three shift operations with women working in the night for IT/ITeS units or companies will be granted. 2010-2015 (continued) Incentives: • IT/ITeS units will be exempt from the purview of the Andhra Pradesh Pollution Control Act. IT/ITeS units and companies will be exempt from the statutory power cuts.
Rebate on land cost. Subsidy on lease rentals. • • • • • Subsidy on cost incurred in participating in exhibitions. transfer duty and registration fee. Subsidy on cost of power. 2010-2015 (continued) Special incentives for special focus areas: • • • • Reimbursement of stamp duty. Subsidy on lease rentals. Subsidy on interest charges. Subsidy on cost incurred in filing for patents and obtaining quality certifications.STATE POLICIES AND INCENTIVES Andhra Pradesh November 2010 Sector-specific policies … (7/12) ICT Policy. Recruitment assistance. 52 .
2005-10 Objectives: To generate employment opportunities for an additional 1. 2003. Fresh Food Policy. promote exports and generate employment opportunities. • Food processing units that commenced commercial production after November 14. to introduce the system of PPP and special incentives to high value and high employment-generation projects. 53 . to set up apparel exports and textile parks in clusters with state-of-the-art technology to attract investors.STATE POLICIES AND INCENTIVES Andhra Pradesh November 2010 Sector-specific policies … (8/12) Textile and Apparel Policy. 2005 Incentives: • Reimbursement of cost of power to be extended for a period of five years from April 2005. to increase exports to US$ five billion to US$ six billion by 2010.5 million persons in the sector by 2010. are eligible for reimbursement of power costs. Incentives: • All the incentives provided in the Industrial Investment and Promotion Policy are automatically applicable to textiles and apparel units.
Incentives and concessions: • Concession on allotment of land on a long lease of 33 years. Investment subsidy of 20 per cent of project cost and 15 per cent for up-gradation of existing hotels. pilgrimage. limited to US$ 48. 2006 Objectives: To create a unique selling proposition and a brand image for the state. sports. • • • • • • Market development assistance scheme for promotional activities 54 . Reimbursement of 25 per cent of entertainment tax for multiplexes in theme parks and urban entertainment centres for a period of five years. and automatic conversion/exemption from land-use zoning regulations. to create and differentiate tourism products across segments such as eco-tourism. spiritual. to develop the sector through public private partnerships (PPP).000. heritage. health. 100 per cent reimbursement of stamp duty and transfer fee on purchase of land or lease of land meant for the project. leisure and rural tourist.219 million and located in notified tourism areas or special tourism areas. to adopt a single-window clearance system. For mega projects. to provide incentives and concessions to tourism projects to be set up in special tourism areas with assurance on features such as sustainable employment generation. promotion of rural tourism and commercially viable projects. business. limited to 100 per cent of the project cost for projects more than US$ 1.STATE POLICIES AND INCENTIVES Andhra Pradesh November 2010 Sector-specific policies … (9/12) Tourism Policy. to ensure deserved positioning on the tourism map of India and the world. subject to review every five years. Floor area index relaxation. Reimbursement of 25 per cent of value-added tax and luxury tax paid for a period of five years. the lease period to exceed 33 years and lease rent shall be 10 per cent of market value.
The Government to establish a standards-based e-government Gateway to enable the various service providers to interact with the backend databases and applications of various government departments and agencies and provide cost-effective services to the citizens and businesses. To avoid the problem of limited suitability of all the delivery points and channels for delivering all the services. • • 55 . In respect of other services such as information services. For sustaining various citizen-service projects and initiatives. CARD and i-Community. cost-effective delivery channels with suitable interfaces for backward integration. licenses needing authentication. form submission and issue of certificates. it is necessary that the concerned partner. The concerned department or agency will pay the service charges to the service providers. vendor or entrepreneur is compensated on a ‗per transaction‘ basis. issue of certificates. APonline. The transaction cost could be met either by the government department/agency or by the customer. The revenue sharing between the SDP. etc.. service providers and the government department to be mutually agreed between the various parties involved and specified in a Service Level Agreement (SLA). Key provisions and incentives: • • To adopt new and more efficient. irrespective of the delivery channel. a charge of US 11 cents to US 33 cents to be payable by the customer to the operator of the Service Delivery Point (SDP). interactive services like online filing of forms. The following principles are to be adopted in this regard: • • • • No user charges to be collected from the citizen in respect of payment for utility bills and taxes. e-Procurement. 2003 Aim: To evolve a comprehensive and generic policy that permits rapid growth of electronic delivery of services under egovernance projects such as e-Seva. those services involving checking of documents. to be done at departmental outlets and/or e-Seva centres.STATE POLICIES AND INCENTIVES Andhra Pradesh November 2010 Sector-specific policies … (10/12) Electronic Service Delivery Policy. depending on the nature of the service.
contract research in all areas of biotechnology and related areas.STATE POLICIES AND INCENTIVES Andhra Pradesh November 2010 Sector-specific policies … (11/12) Biotechnology Policy. forest and environment-focussed biotechnology. mega projects. The thrust areas identified include diagnostics. creating an enabling environment. inputs to the industry (hardware suppliers – instrumentation and chemicals). funding biotech activities. pharmaco-genomics. and protecting IPR. providing incentives. bioinformatics. • • • 56 . to encourage research and development (R&D). • To create an enabling environment and simplify procedures. therapeutics. developing adequate human resources. land and grants for training institutes and housing. The strategy adopted involves encouraging R&D. developing infrastructure. 2001 Objectives: To undertake a detailed inventory evaluation of the bio-resources in the state. agriculture biotechnology. industrial biotechnology. to develop high-quality infrastructure and provide special incentives to biotech industry. to facilitate the flow of venture capital funds and address issues such as Intellectual Property Rights (IPR). marine biotechnology. The Andhra Pradesh Government is working on a new biotechnology policy.
Similar incentive to be provided to the bio-informatic units to be set up in Biotech Parks. commercial or industrial zones. Subject to certain conditions. The biotech industry is exempt from the purview of statutory power cuts. 57 . Bio-informatic centres to be permitted to be established without any location restrictions. bioinformatics companies will be offered rebate on the cost of government land allotted to them at US$ 440 per job created. General permission to be accorded to run a three-shift operation to the biotech industry (subject to Government of India concurrence). Government of Andhra Pradesh to provide government land on lease or as equity to other Biotech Parks. Shops and Establishment Act. exempt biotech units from the provisions of Contract Labour Act 1970. in so far as non-core activities are concerned. subject to the value of a maximum of two acres of government land and 100 per cent exemption from registration and stamp duties.STATE POLICIES AND INCENTIVES Andhra Pradesh November 2010 Sector-specific policies … (12/12) Biotechnology Policy. set up exclusive Special Industrial Tribunals for Biotech Parks to give top priority to the settlement of disputes that may arise in units located in the Biotech parks. Companies setting up Bioinformatics Centres in the Genome Valley will get a rebate of US$ 660 per job created. Ranga Reddy district and others – applicable for a period of seven years from the date of commencement of commercial production of a biotech unit and up to March 2010 and for units commencing operations before March 2006. industrial power tariff (and all other admissible incentives and concessions for industry) to apply. 2001 (continued) Key Incentives: A sales tax of just one per cent for ―high-end‖ biotech products manufactured by units located in – the Biotech Park at Turkapalli village.P. They can be established in residential. permit flexibility in the opening and closing times and in the weekly holiday of a biotech unit by amending relevant provisions of the A. Shamirpet mandal. if the site is found suitable for such projects.
58 .ANDHRA PRADESH November 2010 Contents Advantage Andhra Pradesh State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Andhra Pradesh Company logos cited in this section are registered trademarks of the respective companies.
5 per cent growth in 2008-09 against the national average of 20.5 billion in 2007-08. the state had attracted investments to the tune of US$ 110 million.303 IT and ITeS companies were registered under STPI. Total employment generated by IT and ITeS industry in the state increased from 239.786 in 2008-09. Key players • • • • • Mahindra Satyam Microsoft Genpact Cognizant Zensar Technologies iGate IBM Patni Computer Systems Tata Consultancy Services (TCS) Ikanos Communications HCL Intergraph CSC Sonata Software • • • • • • • • • • • • • • As of August 2010.786 (including STP and SEZ units).BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 IT and ITeS • Andhra Pradesh has had a steady growth in IT and ITeS exports from SEZs and Software Technology Park (STP). As of July 2009. employment generated by the IT sector has grown by 12. STP: Software technology park 59 .3 million. In 2008-09. recording a 24.7 per cent.000 in 2007-08 to 251. of which investments from foreign companies were at US$ 2 . 1.1 billion in 2008-09 (from STP and SEZ) against US$ 6. Hyderabad scheme. Total exports were about US$ 7.
It has established centres of excellence for storage. two of the top five chemicals manufacturers and four of the top five networking and communications equipment manufacturers. Cognizant invited 120 personnel working in Invensys Rail. networking and mobility. Founded as a captive arm of Dun & Bradstreet with headquarters in the US and operations in India. application and IT infrastructure services and business consulting. Springboard Research. globally. etc. According to the IT market research firm. Its services include business process outsourcing. at Hyderabad. semiconductors. In December 2009. IBM has been present in India since 1992. Products offered by company‘s India operations include software. three of the top ten in aerospace and defence. The company focuses on strategic and IP sensitive product development for Microsoft. the company earned revenue of US$ 1. Established in 1998. Since inception.. In 2009. Mahindra Satyam was established in 1987 and has its global headquarters at Hyderabad and several offices in 38 countries including India. the Microsoft India Development Centres (MSIDC) is located in Hyderabad on a 42-acre state-of-the-art campus and employs around 1. IBM in India has expanded its operations considerably with regional headquarters in Bengaluru and offices in 14 cities including a global delivery centre in Hyderabad.2 billion. Cognizant now has over 50 development centres (including one in Hyderabad) and 25 regional sales offices. It is Microsoft‘s largest software development centre outside the US. Microsoft IBM Cognizant 60 . to work on its recent global product research and development tie-up with the latter. IBM emerged as the largest player with a 10. IBM is a leading global IT services and solutions provider with offices across the world. Satyam Computers. systems and servers. The company provides software solutions to over 370 customers including four of the top ten electronics and electrical equipment manufacturers.8 per cent share of the Indian IT services market in 2008.500 employees.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 IT/ITeS – company profiles … (1/4) Mahindra Satyam Formerly. and has filed over 270 patents in last five years. storage.
and customer service to Genpact clients across the globe. pharmaceuticals. In 2009. iGATE Genpact Genpact is a leading BPO company with delivery centres in 13 countries. In Andhra Pradesh. consulting and BPO services provider. iGATE is an ITeS. with a team of over 750 consultants. Zensar provides end-to-end services from IT development to business process. one of which is located at Hyderabad.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 IT/ITeS – company profiles … (2/4) Zensar Technologies Zensar technologies is an Indian company for IT enabled services with 20 offices around the world and three delivery centres. Company‘s revenue in 2009-2010 was US$ 105 million. Zensar is one of the large partners of SAP in certain key segments and markets. The company has delivery centres in the US. Malaysia and India. finance and accounting services. total revenue of the company was US$ 195 million. Canada. enterprise applications. manufacturing and IT / operations. Zensar provides template-solutions in key verticals of dairy. It has three facilities in Hyderabad providing diverse specialised services in domains of IT infrastructure management. In the SAP space. Registered in the US. Zensar has a strong engagement with Oracle. 61 . textile. it has an office at Hyderabad. The State Government allotted about 50 acres of land to Genpact in 2007-08 to set up an IT SEZ in Hyderabad. China. UK. which is their worldwide certified partner. iGATE has 34 offices across 16 countries. procurement and supply chain services.
Czech and India. The company is a solutions provider to many of the world‘s leading network-equipment manufacturers and telecommunications service providers. three are located at Hyderabad. HCL has offices located at Hyderabad and Vijayawada. the company has offices in 170 cities and 500 points of presence reaching 4.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 IT/ITeS – company profiles … (3/4) Patni Computer Systems Patni is one of the leading global providers of IT services and business solutions. UK. Australia. In India. Singapore. consulting. The company has 142 offices across the world at more than 42countries. Has delivery facilities in the US. It has four centres / offices in Hyderabad. two of which serve as innovations labs where cutting edge research in the field of IT and other domains such as life sciences. Bengaluru and Hyderabad. Brazil. Ikanos has offices around the world to service a global customer base. Finland. Revenue of the company in 2009-2010 was US$ 366 million. TCS is a well recognised global service provider for a wide range of IT solutions. China. high performance semiconductor and software products. BPO. with more than 330 million ports shipped to date. Puerto Rico. HCL is a leading global technology and IT enterprise with annual revenue of US$ five billion. Ikanos develops robust. Incorporated in 1976. Headquartered in the US. The company‘s operation span 26 countries. engineering services and IT infrastructure . Tata Consultancy Services (TCS) Ikanos Communications HCL 62 . Most of the company's engineering and research is conducted at Toronto (Canada).000 towns. open source technologies and quantitative finance are carried out.9 billion. Of the total 22 global delivery centres of Patni. In Andhra Pradesh. Malaysia. Poland. A company of the TATA group of India . In 2009-2010 total revenue of the company was US$ 4.
worldwide. highvalue technology solutions including applications development and product support. Incorporated in 1994. In India. Sonata Software figured among the ―Top 20 IT Software Services Exporters‖ in India for the second consecutive year. In India. and industrial organisations in more than 60 countries better manage their operations and safeguard their infrastructure. total revenue of the company was US$ 50 million. Sonata's services include IT consulting. It has its India office at Secunderabad. managed testing. In 2009-2010. A US-based company. CSC Sonata Software 63 . As per the industry rankings released by NASSCOM for 2008-09. Intergraph Corporation fuses geospatial technology to security. customisation. CSC was established in 1991 and since then has expanded its India operations to productively respond to the needs of their customers.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 IT/ITeS – company profiles … (4/4) Intergraph As a leading global provider of spatial information management (SIM) software. Headquartered in Bengaluru. application development. Recent acquisition s like that of Covansys and expansion activities have increased CSC‘s development and delivery centres to seven locations in the country including Hyderabad. Hyderabad. helping some of the world's largest government. infrastructure management. packaged applications and travel solutions. Sonata has a development centre at Hyderabad. application management. Intergraph Consulting Private Limited is a 100 per cent owned subsidiary of Intergraph Corporation. infrastructure and BPO services. research and development serving Intergraph customers worldwide. Intergraph Consulting is a strategic offshore development centre engaging in product development. product engineering services. Incorporated in 1987. military. the company offers to clients worldwide.
Presence of related educational infrastructure has also helped the industry.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Pharmaceuticals and biotechnology • Hyderabad is the hub of the bulk-drugs industry. The biotechnology incubation centre was commissioned in late 2008. accounting for one-third of the national production of bulk drugs. The industry accounts for 43 per cent of the total biotech revenue generated by companies in south India (US$ 1. The state produces a majority of 500 basic drugs produced in the country. 64 Key players • • • Dr Reddy‘s Laboratories AMRI Natco Pharma Limited Divi‘s Laboratories Aurobindo Pharma Nektar Anu‘s Laboratories Limited Suven Life Sciences Limited Indigene Matrix Laboratories Limited Hetero Drugs Neuland Laboratories Glochem Industries Limited (GIL) • • • Shantha Biotechnics Vimta Labs Indian Immunologicals Limited (IIL) Parexel Bharat Biotech International Limited (BBIL) Biological E. The biotechnology market size of the sector in Andhra Pradesh in 2008-09 stood at US$ 475 million and accounted for 18 per cent of the total Indian biotechnology industry.104 million). The State Government has helped develop the pharmaceutical and biotechnology industry through specific policies promoting knowledge-based cluster approach with financial incentives and appropriate infrastructure support. Limited Novartis Krebs Biochemicals & Industries Limited (KBIL) • • • • • • • • • • • • • • • • • • • .
dental.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Pharmaceuticals and biotechnology – company profiles … (1/7) Dr Reddy‘s Laboratories Limited Established in 1984. cardio-vascular (CVS). With revenue of US$ 958 million. urological and oncology. A second laboratory for preparing larger amounts of pharmaceutical intermediates. dermatology. as well as preparation of reference standards. Dr Reddy‘s ranks among the top 15 generics players in the world. AMRI provides custom synthesis of scaffolds and building blocks. Albany Molecular Research Inc (AMRI) Natco Pharma Limited 65 . Natco is also a large contract manufacturers in India. Aspires to become a discoveryled global pharmaceutical company and one of the top 10 generic companies in the world. The company manufacturers formulations. pain management. The Centre's operations are fully integrated with USbased resources. Present in the therapeutics category: anti-infectives. it is the first pharmaceutical company in Asia-Pacific (outside Japan) to be listed on the New York Stock Exchange (NYSE). starting materials and other compounds is now operational as well.500 people. nutritional. AMRI research centre is located in Hyderabad in the ICICI Knowledge Park. Revenue of the company in 2009-2010 was US$ 65 million. Overseas business contributes around 86 per cent of the total revenue. It has offices in 35 countries and operations in over 115 countries. diabetes. bulk drug and parenterals. The company has headquarters at Hyderabad. Established in 2005. Natco has four manufacturing facilities and employs around 1.
phenyle ephedrine and phen procumar. Andhra Pradesh. UK Medicine and Healthcare products Regulatory Authority (UKMHRA). Aurobindo is one among the vertically integrated pharmaceutical companies in India with revenue of US$ 689 million in 2009-2010. central nervous system (CNS). strategic alliances. ANVISA-Brazil for both APIs and formulations and has global presence with own infrastructure. anti-diabetics and anti-allergic with approved manufacturing facilities by the United States Food and Drug Administration (USFDA). Divi‘s also exports dextrome thorphan. including the US and Europe. Nektar also partners with the top biopharmaceutical companies to bring new products to market. Nektar's technology and drug development expertise have enabled nine approved products for partners.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Pharmaceuticals and biotechnology – company profiles … (2/7) Divi‘s Laboratories Divi‘s is a leading manufacturer of active pharmaceutical ingredients (API) with revenue of US$ 197 million in 2009-2010. The company is among the top 10 producers of naproxen in the world and 90 per cent of the products are being exported to several countries. World Health Organisation (WHO). the UK. Headquartered in the US. in Nalgonda district. gastro-enterologics. which include leading biopharmaceutical companies. It has a product portfolio spread over major product areas encompassing CVS. The company has a state-of-the-art multi-purpose plant at Choutupal. subsidiaries and joint ventures. To date. Aurobindo Pharma Nektar 66 . Nektar Therapeutics is a leading biopharmaceutical company developing a robust pipeline of novel therapeutics based on its advanced polymer conjugate chemistry technology platform. Vietnam and Hong Kong. anti-retroviral. it has overseas branch offices at Ghana. antibiotics. nabumetone. Nektar's R&D facility is located in Secunderabad. iopamidol. Medicine Control Council of South Africa (MCC-SA). Along with a registered corporate office at Hyderabad. Ethiopia. and a second plant at Visakhapatnam.
total revenue of the company was US$ 27 million. Indigene 67 . purines.3-dibromo propane are also manufactured by the company along with methyl-4 (4-chloro 1-oxo butyl) a. a di-methyl acetate.4-Dichloro-5 fluoro-acetophenone has enabled the brand to establish itself as the flagship product of the organisation. Suven Life Sciences USA LLC.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Pharmaceuticals and biotechnology – company profiles … (3/7) Anu‘s Laboratories Limited Anu's Laboratories Limited. In 2009-2010. the global player in carbohydrate. It has a state-of-the-art research and development facility. indoles and specialty intermediates. recently acquired the assets of the New Jersey-based Synthon Chiragenics Corporation. The company is engaged in manufacturing of quality drug intermediates to meet the needs of international customers. The optimised process of 2. developing. Hyderabad. Indigene Pharmaceuticals is a biopharmaceutical company focused on designing. The company's manufacturing facilities include fine chemicals. pyrimidines. its wholly owned subsidiary. Suven Life Sciences Limited The company develops and supplies pharmaceutical and agro-chemical intermediates for New Chemical Entities (NCEs) and APIs. The company has offices in the US. Other high quality intermediates such as chlorohexanone. which supports product development. Hyderabad. contract research and customised synthesis programmes of the organisation. Suven's main thrust is in Contract Research And Manufacturing Services (CRAMS) and the company is serving as many as 22 global life sciences and fine chemical companies. 1. an ISO 9001:2000 certified company was established in 1996. imidazoles. Canada and Switzerland. located at Balanagar. The products is available to its wide customer-base as a competitive product of the highest quality. and delivering prescription and consumer healthcare products.based Chiral technology for pharmaceuticals.
it was awarded a licence to make generic oseltamivir. zidovudine . efavirenz. Hetero has its own retail chain of pharmacy outlets in India named. In January 2007. and has a strong presence in central-nervous-system drugs. Hetero Pharmacy. Hetero Drugs 68 . Headquartered in Hyderabad. mainly. now. lopinavir. recently.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Pharmaceuticals and biotechnology – company profiles … (4/7) Matrix Laboratories Limited Matrix has a USFDA-approved facility located at Hyderabad. Mylan Inc of the US acquired controlling stake in the company. lamivudine. in USA and Richmond Labs in Argentina. Canada and Europe. licensed it to make a generic version of the drug. penetrated the regulated markets in US. The company's major customer spread is across 80 countries. etc. Hetero Research Foundation. nelfnavir. Tamiflu. Symed Labs Limited. It has three API facilities at Hyderabad and one at Visakhapatnam. The company markets its products to over 50 countries and. stavudine and abscavir sulphate. Matrix has six laboratories with a team of 70 scientists. following which Matrix has now become a subsidiary of Mylan. Hetero Drugs made a mark being the first in Andhra Pradesh to produce all the anti-retrovirals: indinavir sulphate. Also. Hetero Drugs is the parent company in the Hetero group of companies and other companies which are part of the group are Hetero Labs. Roche. on synthetic research and process development. In 2005. Cirex Laboratories. ritonavir. In 2009-2010 total revenue of the company was US$ 317 million. Focusing . anti-retrovirals and anti-histamines. The Swiss firm. Genx Laboratories and also foreign subsidiaries such as Invagen Inc. quinolone anti-bacterials.
The company claims to be the largest manufacturer of albuterol sulfate in the world with USFDA approval and Certificate of Suitability from the European Department for the Quality of Medicines. Shantha is currently focused on developing generic biologicals. manufacturing and delivering tailor-made fine chemicals and intermediates for the leading pharmaceutical and fine chemical companies on exclusive basis. Africa. ciprofloaxcin and latnoprost. SHANVAC. Japan. In 2009-2010 revenue of the company was US$ 59 million Glochem is a public limited company manufacturing bulk drugs. Shantha Biotechnics is the first Indian company to develop. including the US and Europe. novel therapeutic antibodies. infectious diseases and platform technologies. The company exports to over 65 countries worldwide. It has also a US FDA approved manufacturing facility for ranitidine HCl Form1. It is based in Hyderabad. Commonwealth of Independent States (CIS) and Latin America in addition to the United Nations Children‘s Fund (UNICEF) and Pan American Health Organisation (PAHO). Glochem Industries Limited (GIL) Shantha Biotechnics 69 . Based in Hyderabad. Australia and South Africa. manufacture and market a recombinant human healthcare product in India. proteins and vaccines. GIL has been developing. Korea. Shantha caters to major international markets including AsiaPacific. Today.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Pharmaceuticals and biotechnology – company profiles … (5/7) Neuland Laboratories Neuland has two world-class manufacturing facilities on the outskirts of Hyderabad. Council of Europe. drug intermediates and specialty chemicals. Shantha Biotech became a part of the Sanofi-Aventis group in July 2009. including USA. for contract manufacturing and custom synthesis. Canada. Europe. A pioneer in the field of biotechnology. It has also started exploratory research in the fields of oncology.B is the first Indian Hepatitis-B vaccine to pre-qualify for WHO approved supply to UN agencies. globally. Latin America. GIL has tie-ups with companies in India and abroad.
antirabies vaccine. an institute in Ooty and an overseas office in Vietnam. the facility's manufacturing. Over the past 25 years.000 employees. VIMTA is a multisite organisation with more than 300. microbiology. It has one of the leading research and development centres in India. Massachusetts. Hyderabad. It has offices located at Hyderabad and Bengaluru and offers contract services in clinical evaluation through to commercialisation and medical marketing to device industries. PAREXEL operates in 69 locations throughout 52 countries around the world. The team is slated to double in next three years. IIL produces a range of veterinary vaccines such as foot -and -mouth disease (FMD) vaccine. The first bio-pharma facility in the country to be audited and approved by the Korean Food & Drugs Administration (KFDA). Headquartered near Boston. Hepatitis B. conform to the stringent standards laid down by internationally recognised institutions such as USFDA and WHO. development and manufacturing of vaccines and bio-therapeutics. and has approximately 9. measles. Indian Immunologicals Limited (IIL) PAREXEL Bharat Biotech International Limited (BBIL) 70 . BBIL is a multidimensional biotechnology company specialising in product-oriented research. bacterial vaccines. molecular biology and informatics. Its facilities in Andhra Pradesh include a life sciences campus and central laboratory at Hyderabad along with Clinical Laboratories at Visakhapatnam. BBIL's state-of-the-art manufacturing plant is the largest of its kind in Asia-Pacific. Vimta now serves several market leaders across the globe. control procedures and protocols. medicine. pharmacy. Established in 1984.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Pharmaceuticals and biotechnology – company profiles … (6/7) Vimta Labs Vimta Labs is India‘s leading contract research and testing organisation. biotechnology and medical device industries with the development and launch of their products in order to bring safe and effective treatments to the global marketplace for the patients who need them. Built with an investment of over US$ 22 million . it is located at the Genome Valley. IIL's range of human vaccines comprises of rabies. canine vaccines and a host of other combined vaccines. The company has a team of 707 professionals comprising 442 scientists in various disciplines such as chemistry. MMR and DPT.000 sq ft world-class laboratory facilities. PAREXEL has developed significant expertise to assist clients in the worldwide pharmaceutical. The company has headquarters and manufacturing facilities in Hyderabad.
Novartis has presence in over 140 countries and employs 97. The company has pioneered in fermentation technology over the last decade. oncology drugs. Limited has several firsts to its credit. Another project underway is the modern biotech facility. Biological E. the company earned revenue of US$ 131 million. Has been present in India for the last 60 years in healthcare sector. The facility also operates as a global centre for marketing and sales. Pasteur Meraux Connaught of France (sera and vaccines) and ICI. The company has established alliances with world-renowned pharma companies such as Evans Medical of the UK. KBIL manufacturing Unit-I is located at Regadichelika village of the Nellore district. The company is investing approximately US$ 50 million towards the development and expansion of infrastructure. quality control and pre-clinical activities. business planning and analysis. The company has a development centre at Hyderabad which integrates development franchises of the company though information technology. KBIL was established in the year 1991 as a public limited company with the objective of establishing commercially viable biotech processes with applications in medicine and agriculture industries. It was the first pharmaceutical company to manufacture anti-TB drugs in India and the first private sector vaccine manufacturer in the country. cardio-vascular. Novartis Krebs Biochemicals & Indisutries Limited (KBIL) 71 . formulations and herbal products. Solvay & Cie of Belgium (veterinary products).7 million at the Genome Valley..000 people. Setting up its healthcare-related IT/ITeS and R&D facility in Hyderabad. cough and cold . manufactures sera and vaccines. State-of-the-art equipment is being installed in all locations to meet the US FDA and European MEA standards in manufacturing. In 2009-2010. an exclusive marketing tie-up for animal health products. bulk drugs. with an investment of US$ 21. Products manufactured from Unit-I facility are ephedrine.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Pharmaceuticals and biotechnology – company profiles … (7/7) Biological E. pseudoephedrine and their salts. which are used for making formulations for respiratory ailments. viz. sourcing. Limited Biological E.
The state has. synthetic and blended yarns. The number of power looms in the state aggregates to around 44. with a production of about 3. It proposes to establish another 15 AEPs in the state.87 billion. the State Government has already established five apparel export parks (AEP) and seven textile parks. Medium grade and superior long staple varieties of cotton are predominantly grown in the state. There are 1. To utilise potential of the sector. It aims to achieve. fabrics and furnishings have been identified as potential products by the state. The state aims to increase its domestic contributions for apparels and textile products to US$ 4. emerged as a large textile processing centre. There are over 80 spinning mills including a number of 100 per cent export-oriented units with state-ofthe-art machinery.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Apparel and textiles • The state is a leading producer of cotton. Apparels.079 weaving units with a production capacity of 789 million metres of fabric per annum. moreover.46 million tonnes in 2008-09. and US$ 2 billion in handloom exports by 2010. US$ 6 billion in textiles exports. producing cotton.000 employing approximately 1. The domestic sales of the state are expected to be around US$ 3 billion per annum by 2010.000 workers. • • • • • 72 . • The State Government has identified textile sector as one of the long term growth engines. annually. Over 100 units are set up in the state with a processing capacity of 13 million metres of cloth per annum.10.
plantation crops and floriculture. vegetables. oilseeds. 73 • • • • • • Key players CongAgra Foods Cargill ITC APDDCF Ushodaya Enterprises Kraft foods • • • • • • . dry chilly. lime. To achieve the growth envisaged for the agricultural sector. the state aims to attract investments of around US$ 17.2 million hectares by 2008-09. The state produces some of the finest varieties of mangoes.1 per cent and the total crop area increased to 12. It is a leading producer of cash crops such as tobacco. papayas and bananas. A variety of agro-climatic conditions in the state make it conducive for growing a variety of horticulture crops such as fruits. grapes. turmeric and palm oil. cotton. tuber crops. the agricultural sector in the state witnessed a growth of 14. turmeric. production is expected to reach 22.9 million tonnes by 2020.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Agri and processed food sector • During March. It is the number one producer of sweet lime. papaya. The state is one of the large producer of rice in India. 2005 and March 2010. guavas. chilly. spices.07 billion by 2010. groundnut. The state is one of the largest producers of horticulture products in India. sugar and jute. with the total investment until 2020 targeted at around US$ 39.02 billion.
grain and oilseeds. Cargill ITC 74 . with operations including the handling and processing of a wide range of products. In 2009-2010. US is one of the world‘s leading food companies.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Agri and processed food sector – company profiles … (1/2) CongAgra Foods ConAgra Foods. Cargill entered into a joint venture and subsequently owned a leading shrimp feed manufacturing farm in Rajahmundry. The company is now a US$ 320 million entity with a dominant market position in the edible oils and branded foods sectors. It has partnered with ITC Agro and established an R&D centre to adapt food technologies to Indian conditions. A substantial part of ITC‘s agri-business is located in Andhra Pradesh. Healthy World. Cargill‘s presence in India has been growing since it began a joint venture operation in 1987. Edible oil brands include Sundrop. ITC is a large Indian business conglomerate with diverse business interests including agri-foods. It has also entered a joint venture project to set up a sugar refinery in the state. ACT II and Rath. Cargill maintains a number of businesses in India. In addition. In 2006. The company also runs its innovative internet based ―e-choupal‖ initiative in the state for the benefit of the farmers. fast moving consumer goods.5 billion. cotton and animal feed. sugar. The company has one unit each at Anaparti and Chirala and a research centre in Rajamundhry. lifestyle and retailing and hotels. an affiliate of ConAgra Foods have their registered office at Hyderabad. paper. Agro Tech Foods Limited. including refined oils. total revenue of the company was US$ 5.
etc. established a soft drink manufacturing plant in Andhra Pradesh in 2001 and is currently working on a new agronomy project. under the well known brand name – Priya. UHT milk. Ushodaya Enterprises Kraftfoods 75 . the company manufactures products such as pickles. Kraft Foods.. Multinational branded food and beverages company. flavoured milk. milk powder. These plants together have a capacity of 2.437 litres per day. Established in 1980. It is one of the 15 dairy cooperatives operating under the National Dairy Development Board (NDDB).BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Agri and processed food sector – company profiles … (2/2) Andhra Pradesh Dairy Development Cooperative Federation (APDDCF) APDDCF runs 12 dairy plants and manufactures milk products under the Vijaya brand name. kulfi and processed cheese. ghee. khoa. instant food mixes. Products include butter. the Ramoji group company uses technology and is actively involved in research and development of food products. Headquartered in Hyderabad. fruit and vegetable purees.
Vision-2020 of the state. 76 . http://agri. • • • • • • Sources: Commodities Bureau Agriculture action plan 2009-2010. Andhra Pradesh economy in brief 2008. www. total production of fish in the state was 1.in. The fisheries sector has been identified as one of the six growth engines in agriculture sector under.4 billion.apdes. news publications. The State Government will invest US$ two million towards 51 per cent of the equity in the proposed joint venture company named as Andhra Pradesh Marine Fisheries Development Limited (APMFD) while WTDI will invest the remainder. In 2009-2010. Among Indian states. The balance US$ 11.nic.in. In 2008-09.000 tonnes of marine fish.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Agriculture and allied industry … (1/2) Forestry • Fisheries • Andhra Pradesh has 6. which accounts for 22. over 25 per cent increase over 2008-09 .05 million tonnes a year ago.gov. contribution of forestry to the GSDP was estimated at US$ 441 million.6 per cent of the total geographical area of the state.ap. The contribution of fisheries to GSDP in 2009-2010 was estimated to be US$ 2.000 tonnes of inland fish (including fresh water prawn & brackish water shrimp) and around 290. Production of fish comprised of around 960.25 million tonnes compared to 1. Socio Economic Survey 2009-2010. APDES website.ap. Department of Agriculture website.21 million hectares of forest area. The Andhra Pradesh Government has entered into an agreement with the US-based World Tuna Development International (WTDI) to develop tuna fishery in the Bay of Bengal.5 million will be taken as term loans from banks. Andhra Pradesh is one of the largest producer of brackish-water shrimp and fresh-water prawn production.
• 77 .320 institutes for health of livestock.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Agriculture and allied industry … (2/2) • Animal husbandry is rapidly expanding in the state and is playing a significant role in improving the rural economy. This sector provides gainful employment to a large number of small and marginal farmers and agricultural labourers and enhance their economic status.9 17. As of March 2010.083 institutes supporting production in the animal husbandry sector and 5.55 • • Sources: Socio Economic Survey of Andhra Pradesh. Activities of the animal husbandry department have been oriented towards improving health of livestock and increased production of milk.6 Production (2007-08) 8. Product Milk (million tonnes) Egg (in million) Meat (million tonnes) Production (2008-09) 9. eggs and meat.344 0.6 18. 2009-2010. the state had 5.588 0.
130 million metric tonnes. would hold the balance. The Andhra Pradesh Government decided to enter the oil and gas exploration and development sector and set up a special purpose vehicle (SPV).6 billion. In October 2009. Hindustan Petroleum Corporation‘s Visakhapatnam plant has expanded its refined crude throughput from the existing 7. the Andhra Pradesh Gas Infrastructure Corp Limited as a joint venture between two state-owned entities. would hold 51 per cent in the SPV and AP Genco. The State Government has initiated process of appointing consultant for preparing master plan for the project. signed a memorandum of understanding with the Andhra Pradesh Government for setting up a petroleum. • • • • 78 .79 million tonnes in 2009-2010.524 million cu m. Andhra Pradesh is set to become the second Indian state after Gujarat to enter the oil and gas exploration and production segment through bids for oil and gas blocks under the Central Government‘s New Exploration Licensing Policy (NELP).57 million tonnes in 2005-06 to 8. The infrastructure provider for industries in the state. The investments expected in the PCPIR are estimated to be around US$ 74. the net natural gas production was about 1. The state‘s Krishna-Godavari basin area has a total hydrocarbon resource base of 1. the Department of Petroleum. for 2008-09. chemicals and petrochemicals • According to the Ministry of Petroleum and Natural Gas. Government of India.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Petroleum. APIIC. chemicals and petrochemicals investment region (PCPIR) in the Visakhapatnam-Kakinada region as an industrial cluster.
1000 800 600 400 200 0 2007 2008 2009 770 789 795 • • The state ranked seventh in international tourist arrivals and accounted for 5.8 per cent of the total international tourist arrivals in India in 2009. sacred places of worship.5 • • 79 . The State Government has identified Hyderabad. and Ramoji Film City. at a project outlay of US$ 21 million.2 per cent share of domestic travelers. Golconda Fort. lush green forests. Araku Valley. the state ranked first in domestic tourist arrivals. and Puttaparthi Saibaba.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Tourism Arrival of international tourist in Andhra Pradesh (in ‗000) • Andhra Pradesh is known for its pristine beaches. Arrival of domestic tourist in Andhra Pradesh (in million) 180 160 140 120 100 80 60 40 20 0 2007 2008 2009 Source: Ministry of Tourism.Vijayawada. Borra Caves. Tirupati Balaji Temple. the state offers attractive investment opportunities to developers and investors. spicy cuisine and hospitable people. Nine projects have been sanctioned for the state by the Ministry of Tourism during 2008-09.Tirupati. With tourist attractions such as Charminar. With 24. Visakhapatnam.7 157.9 132. Government of India 127. Nagarjunasagar and Warangal for tourism development.
80 .BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Tourism – upcoming mega projects • • • • Kadapa heritage circuit Tirupati heritage circuit Charminar area Mega park near Nagarjuna Sagar Sources: Directorate of Tourism and Directorate of Economics and Statistics. Andhra Pradesh.
LIDCAP website. 16 medium industrial parks of 100 acres each for processing semi-finished leather. www. ILC profile. It is proposed that KILC will house about 25 tanning units in a floor area of 250 acres of land and about 21 leather processing units with capacities ranging between six and 25 tonnes and a total capacity of 300 tonnes in a floor area of 220 acres. producing about 19 million pieces per annum.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Leather • The state is a major producer of hides and skins.000 for technology up-gradation or/and expansion. KILC is a world class infrastructure for leather tanning and leather processing.lidcap.and medium-scale sector. Government of Andhra Pradesh and has private participation in the SPV. KILC is located at Krishnapatnam in the Nellore district in an area of 412 acres near the sea coast. Plans to establish71 mini-industrial parks on 25 acres of land for processing raw material. • • • Source: Leather sector in AP. subject to a ceiling of US$ 120. constituting around 10 per cent of the country‘s output. The 34 large and medium tanneries in the state produce about 40 million sq ft of processed hides and skins per annum. The Government provides financial assistance in the form of investment grants to the extent of 30 per cent of cost of plant and machinery for SSI and 20 per cent of cost of plant and machinery for other units.org 81 . The state has15 leather goods and footwear manufacturing units in the large. Leather Industries Development Corporation (LIDCAP) LIDCAP is the nodal agency for leather industry development in the state. six mega industrial parks of more than 300 acres each including an international leather complex at Krishnapatnam (KILC). The project finance is supported by the Government of India.
5 per cent of the total value of mineral production in the state. Coal is the major mineral produced in the state which contributed 29. Ministry of Mines website. ochre by 11 per cent. dolomite by 16 per cent. • • Sources: Indian mineral scenario .states. www.nic. Andhra Pradesh is estimated to account for approximately 12.4 per cent to total mineral production in the country.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Mines and minerals • The state‘s mineral production was valued at US$ 2. Contribution to national minerals resources (%) in the country Barytes Ball clay Corundum Diamond Calcite Mica Garnet Limestone 94 63 61 40 39 28 26 20 • According to Ministry of Mines. Production in iron ore increased by eight per cent. in 2008-09.mines.in • 82 .7 billion in 2009-10.2 per cent in 2008-09. quartzite by 60 per cent. while that of manganese ore by 31 per cent and petroleum (crude) by 3. limestone by 16 per cent and coal 11 per cent in 2008-09. Production of silica sand increased by 49 per cent.
BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Gems and jewellery • Hyderabad is one of the leading hubs for the jewellery sector in India. The park is a joint venture between the Phoenix Group. The state produces a wide array of precious.gems as well as pearls. a world class convention centre. An international trade centre. It is the first jewellery park to have an integrated manufacturing and trading facility.000 new jobs. gold and watch manufacturing units and will generate 50. Hyderabad Gems SEZ Limited (HGSEZ) Situated at Hardware Park near the upcoming international airport. IOI Corporation and AP State Trading Corporation.68 to US$ 13.90 million. It has been developed as a state-of-the-art facility in which the floor space will be sold to jewellers and pearl dealers.5 acres in Hyderabad with an investment of around US$ 12. plus an exhibition area will also be a part of the SEZ. The 200-acre park will house more than 75 diamond.and semi.95 million. The AP Gems and Jewellery Park has been developed on an area of 2. SEZ to be set up at a cost of about US$ 121. • • • 83 .
BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Other growth sectors … (1/2) Hospitality and entertainment • Leisure and entertainment • Being a major tourist hub in the country. Urban entertainment.1 67. the state is making rapid strides in the retail and entertainment segment. selected hotels will be offered an incentive of 15 per cent of the project cost. Hyderabad Hyderabad 84 .000. business convention centres and theme parks. mega shopping malls. including amusement parks.projectstoday. • The sector is attracting investments in projects such as world -class spas.4 Location Banjara Hills. • • Hotel projects under construction Name Park Hyatt 7-Star hotel Leela Palace Kempinsky hotel Source: www. To encourage up-gradation to international standards.com Promoters Gayatri Hi-Tech Hotels Limited Hotel Leelaventure Limited Project cost (US$ million) 76. To attract new investments in the sector. has redefined leisure and entertainment activities in the city. subject to a maximum of US$ 50. the Government offers various incentives including an investment subsidy of 20 per cent of the project cost. entertainment centres. multiplexes.
BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Other growth sectors … (2/2) Retail • Electronics hardware • Semiconductors • Organised retail is catching up fast with significant mall development in the pipeline. ft in May 2009. computer peripherals.gvk. close to the new international airport. GVK group opened ‗GVK one‘ a world-class shopping space measuring 6. to promote the industry. • • • • • • • An investment of US$ 3 billion has been announced for setting up a fabrication unit in the Fab City. Hyderabad. large scale integration chips (LSICs) and very large scale integration chips (VLSICs). semiconductors. precision engineering. Key segments within the electronics hardware industries in the state: Telecommunications Industrial electronics Test and measuring equipment Computer and consumer electronics Strategic electronics There is immense scope for investments in the fields of nanotechnology.000 sq . ‗GVK one‘ also hosts a 1.com 85 .25. • • • • • • Sources: News publications. Fab City has been allotted 1. "Urban infrastructure". etc. reimbursements. facilitating technical education. Reebok has opened its largest store in the world in Hyderabad.200 acres.200-seat INOX multiplex along with a themed entertainment centre ‗Funzone‘. www. integrated circuits. The Electronics Hardware Policy of the state offers various incentives such as exemptions. GVK group website. Shopping malls are being developed in suburban and peripheral areas followed by central business district. appliances. Reliance Retail opened its first 'Reliance Fresh' stores in Hyderabad and Secunderabad in late 2006.
Visakh Refinery Polavaram irrigation project Greater Hyderabad growth corridor project Godavari drinking water supply scheme Finished steel project Sector Irrigation Power Power Steel Irrigation Promoter Government of Andhra Pradesh Coastal Andhra Power Limited AP Genco Bramhani Industries Limited Government of Andhra Pradesh Investment (US$ million) 8. Hyderabad Visakhapatnam West Godavari Medak.600 MW) Integrated steel project.2 652. Chittoor Power Refinery Irrigation Roads Water supply Steel X L Telecom Limited Hindustan Petroleum Corporation Limited (HPCL) Government of Andhra Pradesh Hyderabad Growth Corridor Limited Hyderabad Metro Water Supply & Sewerage Board Rashtriya Ispat Nigam Limited 782.com 86 .61 782.7 652.2 652.695.2 Shamsabad.0 Location Bejjur. Nellore.0 658.7 1.BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Major industrial projects being implemented Project Pranahita-Chevella lift irrigation scheme Krishnapatnam ultra-mega power project Krishnapatnam power project (1. Nellore Nellore Cuddapah Cuddapah.813.3 3.projectstoday. Adilabad Krishnapatnam.369. Phase-I Galeru Nagari Sujala Sravanthi irrigation project Solar energy equipment project (120 MW) Diesel hydro treater project .0 978. Ranga Reddy Visakhapatnam Source: www.635.6 3.
BUSINESS OPPORTUNITIES Andhra Pradesh November 2010 Key industrial projects being planned Project Hyderabad elevated-MRTS project Kakinada refinery project Bhavanapadu coal-based power project Alumina refinery project Multi-product Industrial Park Alumina refinery project Sector Transport Refinery Power Aluminium Industrial park Aluminium Power Construction Roads Power Promoter Hyderabad Metro Rail Limited Investment (US$ million) 2.407.260. Stage-II Source: www.7 1.5 1.7 771.521. East Godavari Srikakulam Boddavara Perupalem Hindupur Hyderabad Multiple locations Warangal Kakinada Refinery & Petrochemicals Limited East Coast Energy Private Limited Jindal South West Aluminium Limited Yeswanth Industrial Infrastructure Projects Private Limited National Aluminium Co Limited Sheshadri Power & Infrastructure Private Limited CBD Tower Private Limited National Highways Authority of India AP Genco Coal-based power project Business complex Road up-gradation (IcchapuramSrikakulam-Ankapalli-Rajahmundary) project Kakatiya power project.956.com 1.637.projectstoday.4 3.6 1.652.7 645.521.7 Location Hyderabad Kakinada.521.9 2.4 87 .2 1.
ANDHRA PRADESH November 2010 Contents Advantage Andhra Pradesh State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Andhra Pradesh 88 .
000 sq m 21 days for above 1. IEM. Industrial licenses Allotment of land/shed in industrial estates or industrial areas Acquisition and alienation of government lands Respective departments of state Registrar of firms Andhra Pradesh Industrial Development Corporation Chief Commissioner of Land Administration (CCLA) Panchayat Raj Department 4 Site and building plan approval Urban Development Authority Town and Country Planning Municipality Urban Development Authority 5 Change of land use Consent for establishment under pollution control Green Town and Country Planning Municipality 7 days AP Pollution Control Board 45 days 7 days Estimated time 7 days 7 days for up to 1.000 sq m 45 days 3 6 Orange Red 21 days 45 days Source: Commissionerate of Industries.DOING BUSINESS IN ANDHRA PRADESH Andhra Pradesh November 2010 Key approvals required … (1/2) S No 1 2 Approvals and clearances required Registration. Government of Andhra Pradesh 89 .
Government of Andhra Pradesh 90 .DOING BUSINESS IN ANDHRA PRADESH Andhra Pradesh November 2010 Key approvals required … (2/2) S No Approvals and clearances required Respective departments of state Estimated time Consent for 7 8 9 10 11 12 13 14 15 16 17 operation under pollution control Excise registration Green Orange Red Fire Services Department Excise Department Commercial Taxes Department Power distribution companies Factories Department Hyderabad Metro Water Supply and Sewerage Board Irrigation Department AP Pollution Control Board 7 days 21 days 45 days 15 days 14 days 7 days 7 days 23 days 7 days 7 days 7 days 23 days 30 days No-objection certificate for fire safety VAT/CST Registration Power feasibility Power connection Approval of factory plans Factory license Sanction of water supply Water connection Permission to draw water from rivers and/or public tanks Source: Commissionerate of Industries.
5 91 .0 Commercial: 50.8 12.8 Industrial: 9.0 Commercial: 15.5 73.8 to10.DOING BUSINESS IN ANDHRA PRADESH Andhra Pradesh November 2010 Cost of doing business in Andhra Pradesh Parameter Land price (US$ per sq m) Labour (US$ per man year) Lease rent (US cents per sq ft) Electricity (US cents per unit) Residential rent (US cents per sq ft per month) Five-star hotel room (US$ per night) Water (US cents per 1.250 36.6 to 61.0 to 512.0 Industrial: 62.000 litres) Sources: Andhra Pradesh Government websites and industry sources Cost 20 to 200 825 to1.6 to 62.
the status of their clearances. District level committees can clear investments not exceeding US$ 1.054. It also simplified procedures for getting industrial clearances. Overall. It has set time slots for issuing clearances and incorporated a provision for deemed approval after the expiry of time limit. State level committees can clear those exceeding US$ 1. Committees were constituted at district and state levels to communicate to the applicant.852. a State Board under the chairmanship of the Chief Minister oversees the progress of the scheme.DOING BUSINESS IN ANDHRA PRADESH Andhra Pradesh November 2010 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 2002.852. • • • • 92 . The maximum time taken to issue clearance of applications at all stages is 45 days.Violation of provisions of the Act made either through self-assessment or otherwise would invite a penalty of US$ 108 in the first instance and US$ 217 in the second instance. The Act made it compulsory for new industries to register with the single-window to obtain clearances quickly. 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.054.
Minister for Major Industries. The Industries & Commerce department is headed by the Industries Minister and is controlled by the Principal Secretary. The SIPB meets once a month to make final decisions regarding investments and promotion of industries in Andhra Pradesh and for approval of the projects. Commissioner Handlooms and Textiles. and other ministers connected with specific projects as special invitees as well as the Chief Secretary to Government as member or convener. The project proposals and other issues regarding investments and promotion of industries in Andhra Pradesh are processed by the Industries & Commerce Department and submitted to the Board. on the decisions taken by the SIPB. Industries & Commerce. Minister for Energy. The detailed note along with the reaction of the concerned departments are presented and discussed in the meeting of the Board. to all the concerned departments. It is ensured that all final and necessary decisions are given for the industrial projects within a period of four weeks.DOING BUSINESS IN ANDHRA PRADESH Andhra Pradesh November 2010 Key investment promotion offices … (1/2) State Investment Promotion Board (SIPB) The SIPB has been created by the Government of Andhra Pradesh with the state Chief Minister as Chairman and members consisting of the Finance Minister . incorporating the decisions of the Board. Mines and Geology. Minister for Revenue. for their action. Commissioner of Industrial Promotion They are responsible for SSIs and control the office of the Commissioner of Industries & Export Promotion. • 93 . Commerce and Export promotion Ministry • • Controls the office of the Principal Secretary. Major Industries. with detailed notes. with which they are concerned. The Industries & Commerce Department issues a single order on each project. The concerned Departments of Secretariat issue further necessary orders. The Industries & Commerce Department also circulates the project proposals. Commissioner for Sugar and Director. before taking a final decision.
DOING BUSINESS IN ANDHRA PRADESH Andhra Pradesh November 2010
Key investment promotion offices … (2/2)
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)
DOING BUSINESS IN ANDHRA PRADESH Andhra Pradesh November 2010
Key agency Contact Information 6th Floor, Parisrama Bhavan Fateh Maidan Road, Basheerbagh Hyderabad - 500 004 Phone: 91-40-2323 7622, 2321 2798 Fax: 91-40-2323 3393, 2323 3251 E-mail: firstname.lastname@example.org Website: www.apiic.in Industries and Commerce Department 2nd Floor, D Block, Room No-348A Secretariat Hyderabad - 500022 Phone: 91-040-23454449 Fax: 91-040-23452985 E-mail: email@example.com Website: www.industriesportal.apcgg.gov.in
AP Industrial Infrastructure Corporation
Department of Industries and Commerce
DOING BUSINESS IN ANDHRA PRADESH Andhra Pradesh November 2010
Exchange rates Year 2000 2001 2002 INR equivalent of one US$ 46.6 48.3 48.0
2004 2005 2006 2007
43.7 45.2 45.0 42.0
Averages for the year
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