VISHAKHAPATNAM:

AN EMERGING METRO CITY

 India: Fastest Growing Economy

India is one of the emerging economies of the world as per Central statistics
organisation(CSO) and International Monetary Fund(IMF).It is expected to
become one of the three economic superpowers of the world over next 10-
15 years. Today, India is weaving an ambitious dream of becoming USD 5
Trillion economy by 2024-25 on the back of expanding manufacturing
capacities, infrastructural development and service sector growth.

As the current Indian metros witnesses a saturation in the economic

growth, the Tier-II Indian cities have the potential to become India’s growth
engines for future. India’s Tier II cities has enormous potential to unleash
due to some inherent advantages such as ample availability of land & skilled
labour. Moreover, the development of Tier II cities is a positive sign for the
nation as it deviates the pressure from the metros which are struggling
under the pressure of space, money and infrastructure.
 Vishakhapatnam- The City of Destiny

Vishakhapatnam popularly known as Jewel of East coast is one of the

upcoming economic hotspot in the heart of Andhra Pradesh. Surrounded by
coast of Bay of Bengal on one side and Eastern Ghats on other, the city is
blessed with immense scenic beauty making it a major tourist spot in
Southern India. The city of destiny, being one of its kind, owing to its
strategic location near the sea offers multiple opportunities for the
development of blue economy. With a great natural harbour, Vizag is a
natural hub for defence, shipping, trade and manufacturing.
The young professionals in search of unspoiled environment and affordable
housing can be immensely benefitted from this city with their craving for
quality life being getting fulfilled here.
Can Vishakhapatnam be the next big city in
India?
Vizag has emerged as a promising candidate in India’s search for next big cities
due to growing business prospects, rising income levels and thriving blue
economy. Its selection in smart cities mission itself conveys a lot about its
capability to develop and lead on forefront. But to aid India’s dream of USD 5
trillion economy, there is a need for cities having rare attributes including livability,
competitiveness and sustainability. COVID-19 has taught some difficult lessons on
urban developments and we need to imbibe them properly for prosperous future.
Our next cities need to possess extra-ordinary capabilities to bear the brunt of
social, economic & health crisis and excel in the global world. Thus, a careful
analysis of various parameters need to be conducted before considering any city
as a probable frontrunner for next batch of Tier-I cities.
In order to analyze Vishakhapatnam's potential to transform itself into Tier-I city
in future, it is important to evaluate it on crucial parameters such as industries,
infrastructure, education and healthcare, transportation network and incentives
by State & Central Governments.

Economic profile Industrial Profile

•Current GDP (sector wise) •Manufacturing
capabilities
•Information technology
•Tourism
•Logistics
•Aquaculture

Smart City Project Other ancillary

▪Vision to transform Vizag facilities
▪Proposed projects under •Transportation network
Smart cities mission •Education
 Vizag Achievements

3rd cleanest city in Swachch Bharat Rankings 2017

Pharma City- JNPC & Andhra Pradesh

Medtech Zone

Steel city of Andhra Pradesh

9th largest Contributor to GDP

5th busiest Cargo Port in India

Brandix-India’s largest Textile park developed

in area of 1000 acre.

One of the 100 fastest growing cities in world

 Economic Profile

Vishakhapatnam is one of the 100 fastest growing cities in the world and 9th
largest contributor to GDP in India. Services sector plays a major role in the
economy with total Gross Value Added(GVA) contribution of USD 6.73 Billion
(49.32%). It is closely followed by Industry and Agriculture sector adding
USD 4.95 Billion and USD 1.97 Billion respectively to the economy. Strong
GVA figures in services and secondary sector is owing to presence of world
class MNCs in IT and Pharma sector. The heavy industries, tourism and
logistics is also adding substantially to the GVA figures.
 Industrial Profile

Popularly known as Steel city of Andhra Pradesh, Vizag has best production
facilities in the country with numerous public and private sector companies
carrying out operations in the district. There are several Special Economic
Zones (SEZs), Industrial corridors, Industrial parks located in heart of city
providing conducive environment for growth of business.. The ease of doing
business, favorable govt. policies and availability of labour & raw material
has helped in attracting attention of both domestic and foreign investors
towards the city.
 Industrial Highlights

LIFESCIENCES Jawaharlal Nehru Pharma City(JNPC)

• Spread over 2400 acres, JNPC is a world class pharma city.
The park has been developed as an exclusive hub for
manufacturers of bulk drugs, active pharmaceuticals
ingredients, and intermediates
• Diverse range of inbuilt infrastructure and facilities for
entrepreneurs and companies such as Common Effluent
Treatment Plant, Secured Land fill, Hazardous Waste
Management with incinerator, assured continuous potable
water distribution, emergency medical centre, central fire
services etc.
• Over 104 registered companies including leading
international players like Eisai Pharma (Japanese Pharma
Giant), Biocon, Pfizer, Pharmazell, Aptuit Lauras Labs etc.

Andhra Pradesh Medtech Zone Ltd.

• India’s first ultra-modern medical equipment
manufacturing and testing facility open for manufacturers
and innovators.
PETRO-CORRIDOR • Houses bottling units of Hindustan Petroleum Corporation
Refinery(HPCL), Indian Oil Corporation and Bharat
Petroleum Corporation Limited(BPCL)
• Vishakhapatnam is part of Petroleum, Chemical and
Petrochemical Investment Region (PCPIR) - A project
developed on PPP model which combines ports, airports,
SEZs, industrial, IT parks, etc. with huge potential to deliver
exponential returns.
STEEL PLANT • Vishakhapatnam Steel Plant, popularly known as VIZAG
steel is one the largest plant in single location built using
German and Soviet technology.
• It runs under the corporate entity Rastriya Ispat Nigam
Limited(RINL).
• In FY 2018-19, the Total Turnover was USD 3.474 Billion
registering a growth of 25% over previous years.
HINDUSTAN SHIPYARD LTD. • In 1948, HSL built its first ship Jala Usha.
Subsequently, it built 167 various other ships.
• The availability of port and this shipyard
supported several large-scale industries like:
• GAIL, RINL, HPCL, BHEL, Hindustan Zinc,
Dredging Corporation of India, Coramandel
Fertilisers, Reliance, among other
POWER PLANTS • Simahdri Super Thermal Plant of NTPC Limited
generates c. 2000 MW of electricity.
• Hinduja Thermal Power Plant - A coal based
thermal power plant with power generation
capacity of approx. 1040 MW located in
Palavalasa village.
BRANDIX INDIA APPAREL • Largest textile Park in country spread over 1000
CITY acre
• Employees 15,000+ women at a single location.
• Tenant profile includes exclusive manufacturers
such as Victoria Secrets,M&S and Jockey
DIARY INDUSTRY • One of the fastest growing industries with
focus on value added milk products
• Visakha Diary recorded exponential growth in
past 40 years with revenues exceeding USD
1600 Million.
• Milk products from Vishakha exported to
foreign countries like Singapore, Malaysia etc.
 Tourism
Tourism is one the key revenue generating sector providing employment
opportunities to regional people. In past years, Vizag have emerged as a
preferred destination for tourists owing to its attractive beaches, beautiful
caves, wildlife sanctuaries and splendid valleys. The city offer variety of
options for the tourists with Rama Krishna beach, Rushikonda beach,
Gangavaram Beach, Yarada Beach, Bheemili Beach, Borra Caves, Kailasagiri,
Indira Gandhi Zoological Park, Simhachalam temple, Submarine museum,
Erra Matti dibbalu, and Araku valley being some of the most popular
sightseeing places here. The city also houses INS Kursura Sabmarine
Museum and TU 142 Aircraft museum which are only one of the kind in
whole world.

VIZAG has witnessed 4 fold increase in tourism

between 2011-2017 with number of tourists increasing
from 51,68,304 in 2011 to 2,13,92,728 in 2017.
 Logistics

The port city of Vishakhapatnam is located on Eastern coast of India and well
connected by air, road and rail network. The Vishakhapatnam port is 5th
Busiest cargo port in India and headquarters to south coast railway zone.
The Vishakhapatnam Port has become the first gateway for Nepal, leaving
behind West Bengal port with minimal waiting list and excellent
infrastructural facilities.

Vishakhapatnam Port has handled 72.72 million metric

tonnes of cargo during the F.Y. 2019-20 as against 65.3
million metric tonnes handled during 2018-19.It has
recorded an incremental growth of 11.5% which is
highest growth in all major ports across India.
 Sea food Exports from Visakhapatnam Port.(USD Mn)

5049.5
4458.8
4028.4 4056.0
24.5%
22.6% 22.7% 23.5%

2266.7
2000.0 1800.0
1600.0
1010.4 1217.5
910.1 954.8

2013-14 2014-15 2015-16 2016-17

India AP Vizag

Aquaculture Industry

Vishakhapatnam has emerged as one of highest exporter of sea food in past

years. Its strategic location on east coast and flourishing aquaculture farms
is major reason behind its success in the industry. The Vishakhapatnam port
has state of the art facilities for movement of seafood in refrigerators. It has
consistently maintained top spot in marine export products with a total
turnover of USD 930 Mn for past several years.

MPEDA Chairman Dr. A. Jayathilak on Vizag Port,”

Visakhapatnam Port would play a key role in
achieving the target of crossing USD 10 Billion set for
marine exports from India.”
 Education Hub
Every knowledge city in India has a rich supply of skilled professions aiding high
pace in overall economic growth and development of new business centers.
Vishakhapatnam is next emerging city of India and the brewing educational
institutes in city is fueling its growth trajectory. Vizag has plethora of higher
education institutes, schools and colleges offering quality education in diverse
streams such as management,engineering,medicine,industrial training courses.
International schools like Oakridge International are further helping to meet the
rising demand for high quality education adhering to international standards and
streamlining critical thinking among the coming generation.

LIST OF PROMINENT EDUCATIONAL INSTITUTIONS

• Indian Maritime University

• National Institute of Oceanography
• Indian Institute of Petroleum and Energy
• National Law University
• Andhra Pradesh University
• Indian Institute of Management (B)
• GITAM University (B)
 IT Sector
Information technology has been one of the most significant growth
contributors to Indian economy since globalization. It has transformed India’s
image from a slow bureaucratic economy to a global player in providing world
class technology solutions. Vizag is also earning huge dividends in IT sector due
to India’s great reputation overseas. Vishakhapatnam has over 350 IT firms
and estimated turnover of USD 760 Million in 2016-17. Rushikonda hills area is
developed as hub for IT, with SEZs and incubation centers facilitating growth.

With a view to establish Vizag as a global fintech hub,Fintech Valley Vizag and
Sunrise Start-up Village, an incubation centre was established. Vizag is also
making relentless efforts to attract investments from global players in the
fintech sector. Millenium IT Towers 1 is a testimony to the district’s initiatives
in direction of luring global investments for development of world-class IT
infrastructure .
 Transportation Facilities
The Smart transport infrastructure in the district binds it in a coherent whole
ensuring smooth and timely flows of people and resources.Vishakapatnam airport
is an international airport receiving a high passenger count of about 2.3 Mn in F.Y.
2016-17.The passenger traffic has ensured more than 3 fold increase from year
2010-11 to 2016-17 highlighting the growing importance of the city. Moreover,
international airport is well connected to all major cities and other international
trade centers ensuring free movement of people and services. Vizag port is one of
13 major Indian ports and second largest port by volume of cargo handled. Cruise
shipping services are also available between Vishakhapatnam and Andaman &
Nicobar islands making the city a lucrative spot for tourists.
The city is well connected with rail and road network. Vizag is headquarters of South
Coast Railway Zone of Indian Railways. The Vishakhapatnam Railway station is an A1
station and serves an average of 20000-25000 passengers. The Govt. has also
planned a metro line for the city in order to ensure unrestricted mobility with
increasing population levels. Apart from this, the bus terminals having fleet of 600
buses operating over 150 routes. Due to its robust transportation facilities through
road, rail, air and water, the city is a preferred destination for many global and
domestic companies.
 Smart City Vishakhapatnam
Vishakhapatnam was selected under smart cities project by First Smart Cities
Council. Vizag was identified as one of Best cities under Basic services(BSUP) and
Interest subsidy scheme for Housing the urban poor(IHSDP). The smart cities
framework plan has laid the ground for transforming Vishakhapatnam from a 20th
century port city to a leading economic center of 21st century. The smart cities
mission has proposed to develop own distinct urban character for four major
centers of Vishakhapatnam Metropolitan regions.
1. Rushikonda and Madhur Wada are to be developed as high-end knowledge
clusters that offer world class educational, recreational and tourism facilities
2. The city center will carve its identity as business and cultural center of the
region by carrying out many signature development projects.
3. The southern Industrial area will develop as smaller, mixed use urban area that
offers job-housing balance and improved living conditions for local workforce.
4. The coastline of Vizag will be developed as set of distinct recreational,
ecological and livelihood destination.

“25 projects out of a total of 70 projects under the

Smart Cities Mission (SCM) in Visakhapatnam have
been completed”, said Union Minister of State for
Housing and Urban Affairs Hardeep Singh
Puri.(Newspaper report-12 March 2020)
Highlights of Smart Cities Mission Projects

Metro Rail Project & NTPC to set up new power plant of 4000 MW

Six-laning of Anandapuram Visakapatnam-Anakapalli section of

NH-5

Multi-model logistic hub to be set up at Vizag port as JV

between VPT and Balmer Lawrie & Co Ltd

Expansion of ports with container terminal, outer

harbour and multi-purpose berths; to be available as
point of call for designated carriers of Sri Lanka

Setting up of 96,000 solar street lights| Development of

tourism circuits in Vishakhapatnam-Vizianagaram-
Srikakulan;

Setting up a second LNG terminal at Gangavaram port through

JV with Petronet LNG Terminal

Visakhapatnam Port Trust to develop dedicated berth for coastal shipping

and extend container terminal to enhance capacity by 0.54 million TEU
Conclusion
The city of Vizag is currently on a threshold of significant breakthrough in
establishing itself the next big city of India. The exceptional combination of
beautiful beaches, natural reserves of minerals, IT and knowledge hubs,
horticulture, handicraft, coffee industry, Pharma, Petro-corridors, Logistics
and Fisheries symbolizes its potential to transform itself into leading Trading
and Industrial Hub of India. The Smart City Project is further going to give
wings to the industry attracting plethora of opportunities and investments in
future.

The biggest challenge today is to transform VIZAG into an economic hotspot

without spoiling its natural heavens. The current incident of gas leak at LG
polymers plant highlights the darkest realms of development and stress on
stricter industrial regulations to avoid such incidents in the future.

Undoubtedly, the city of destiny is all set to become a major industrial

landmark on world map with upgradation of social, industrial and financial
infrastructure. The holistic development of the city with focus on urban
planning, power-projects, expansion of ports, setting up of solar plants will
accelerate its growth story and establish it as a preferred destination for
investors, businessmen and professionals.

The time is ripe to take first mover advantage by becoming the part of
VIZAGs success story and earn rich dividends in future.