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Government of Andhra Pradesh: Industry Mission Blueprint 2014 “A society without poverty…a State that is a centre of technology…And, a joyous population confident of its bright future…” - Shri N. Chandrababu Naidu

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Page 1: Government of Andhra Pradesh: Industry Mission Blueprint 2014 · 2015-05-22 · 2 Draft Industry Mission Blueprint- 2014 In the year 2012-13 the Indian economy grew by 4.47% while

Government of Andhra Pradesh:

Industry Mission Blueprint 2014

“A society without poverty…a State that is a centre of technology…And, a joyous

population confident of its bright future…”

- Shri N. Chandrababu Naidu

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1 Draft Industry Mission Blueprint- 2014

Executive Summary

Under the visionary leadership of Shri N. Chandrababu Naidu the state has conceived a Mission

Mode Development Approach that seeks to accelerate all round development. As a part of this

approach a decision has been taken to create seven missions- Social Sector Mission, Primary

Mission, Skill Development Mission, Infrastructure Mission, Industry Mission, Service Sector

Mission and Urban Development Mission. The Chief Minister would head all the missions.

Taking this forward the Industries and Commerce and Energy Departments are spearheading the

Industry Mission. The comprehensive Industry Mission envisages coverage of three major areas

of this sector: (1) Manufacturing, (2) Energy and (3) Mining. These 3 sectors will be treated as

sub-missions.

Manufacturing has been identified as a growth engine across the globe, as it has a close

relationship with GDP. At an All-India level, manufacturing sector accounts for only 14% of

GDP, much lower than other Asian countries such as China (32.4%); Taiwan (27.1%) and

Singapore (22.2%). More importantly, China's share of world manufacturing was 22.4% in 2012

while India's share is currently less than 2%. The scenario at the state level is much worse with

the share of manufacturing sector at 10%, which is much lower than the national average. In

order to raise the share of manufacturing sector, Government felt that a mission mode approach

needs to be commissioned with clear objectives and strategies in place so that the sector can

achieve higher growth.

Manufacturing

Mines & Quarrying

Energy

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In the year 2012-13 the Indian economy grew by 4.47% while the industries sector at a national

level grew by 0.96%. Out of this the manufacturing sector grew by 1.14% and contributed to

15.76% of the national output.

The key objectives of the mission are to:

1. Make Andhra Pradesh a leading “Manufacturing Hub” in the country

2. Increase the share of manufacturing sector in the overall state GDP

3. Create large scale employment

Moreover the focus of the mission is to bring about sustainable growth which is aligned with the

green objectives of the state. A favourable political system with a more business-friendly

environment and proactive policies is an enabler for growth. The Government of AP thus has

developed a comprehensive Industry mission blueprint setting out its thought processes, the

focus areas and the policy framework envisaged to provide a significant fillip to industries in

Andhra Pradesh.

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Preamble

Andhra Pradesh is strategically located on the South-East coast of India and is considered as

gateway to East & South East Asia. Andhra Pradesh has a geographical area of 160,309 sq. km

with population of 49.7million. It accounts for 4.9 per cent of country’s geographical area and

4.0 per cent of the country’s population.

Andhra Pradesh has bountiful natural resources (coal, limestone, bauxite, and a number of minor

minerals), fertile land, water, fertile river basins (Godavari, Krishna & Pennar), extensive canal

system, and conducive agro-climatic conditions. The State is agriculturally prosperous. It is

known as the “Rice Bowl of India”. The State also has the second longest coastline (974 km)

among all the States in India and it is also the largest producer of marine products with 40%

share in country’s exports. The GSDP of Andhra Pradesh in 2013-2014 was INR 475,859 crore.

Combined Andhra Pradesh was, a few years back, the third most favored investment destination

(both domestic and foreign) in the country. The bifurcation presents an opportunity for Andhra

Pradesh to chart a new course and create a conducive and best in class environment for

industries.

The state government has identified industrial growth as a means to mitigate poverty and

unemployment. Industrial development will promote higher capital formation; raises wage

incomes; and absorb surplus workforce. To realize these benefits and hasten up the socio-

economic changes, industrial development is accorded top priority by the State government. The

new Industrial Policy, proposes to establish a state-of the art infrastructure, advance inclusivity,

foster innovation, and develop skill sets of its workforce to create employment opportunities

across the state.

With support from the central government, multilateral agencies and the private players, the state

government aims to make Andhra Pradesh one of the leading investment destinations of the

country.

Pillars of Industrial Development

The GoAP has identified seven key pillars for industrial development: Visionary leadership,

24X7 power supply, progressive labour policies & skill development, effective law and order,

fiscal incentive, conducive business environment, robust infrastructure & abundant land for

industrial use.

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Visionary Leadership

People of Andhra Pradesh have given a large mandate to the Chief Minister N Chandrababu

Naidu. Dynamic leadership is a powerful enabler for progress and growth. Under the visionary

leadership of the Chief Minister the state is setting progressive policies and ambitious goals for

the welfare of the state. Well established development credentials of the Chief Minister are a

positive enabler for the holistic development of Andhra Pradesh.

24X7 Power Supply

Andhra Pradesh is one of the states selected for the centrally-sponsored “power for all” scheme.

This scheme will ensure 24x7 quality and reliable power across the state.

Progressive Labour Policies & Skill Development

The GoAP will create a model to improve employability in the state by development of skilled

manpower. AP Skill Development Mission (APSDM) will be set up in line with the National

Skill Development Corporation (NSDC). Manpower Information System would be developed

and maintained to provide relevant and timely labour market information

Effective Law & Order

GoAP has taken significant leap in managing law and order in the state. The naxal menance in

the AP has shown gradual decline year on year. The surrender and rehabilitation initiative of the

GoAP has delivered positive results.

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Fiscal Incentives

The State Government will currently provide financial incentives to all the 13 districts across

industries. Further to the bifurcation, the AP state is expecting an incentive scheme to be

declared by the Central Government.

Conducive Business Environment

The GoAP has taken SWCS (Single Window Clearance System) initiative.SWCS has been

conceptualised as an umbrella covering all modular systems. For Foreign investors the

government will establish country specific help desks to provide one point contact for

information and clearance processes.

Robust Infrastructure

The state is putting lot of impetus on expanding the physical infrastructure capability. Multiple

projects across road, rail power, ports, airports and IT infrastructure are envisaged. These

projects will act as a backbone for industrial growth in Andhra Pradesh.

Abundant Land for Industrial use

The state has abundant land bank available for industrial use. Huge parcels of land in Naidupet

Nellore, Krishnapatnam SEZ, Orvakallu, Donakonda etc are earmarked for industrial use

Thrust Sectors

As a part of this initiative, the government has identified the following areas as thrust sectors:

S. No Thrust Sectors 1 Agro and food processing

2 Life sciences (including pharmaceuticals, bio-technology and

medical equipment)

3 Textile and apparels

4 Electronics

5 Aviation and defense

6 Auto and auto components

7 Petroleum, chemical (including fertilizers) and

petrochemicals

8 Leather

9 Mineral based industry- e.g. Cement

10 Energy

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Industrial Infrastructure Development

The state envisages accelerated development by leveraging infrastructure creation and concerted

promotion of industries. The plan seeks to build on region specific industry agglomeration and

encourage industries specific to each region. In doing so it also seeks to leverage regional and

locational synergies while encouraging industrial growth. The advantage of this strategy is that

some of these regions will also emerge as key frontiers of industrial growth and also allow the

government to focus on industrial development better.

As a result of this focus Andhra Pradesh has emerged as a front runner in several areas:

• Andhra Pradesh continues to be a favourite destination of industrial investments

• Rated by Harvard Business School and World Bank as one of the most industry friendly

States in India

• Gateway of South East Asia – 974 km coastline

• First state to have Single Window Act (2002)

• First state to have Data Protection and Consumer Privacy Act

• First state to have an enabling act for Public Private Partnership (PPP) in Infrastructure

Development

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Integrated Development through Corridors

The Government has envisaged accelerated development through setting up industrial corridors.

Industrial corridors tend to accelerate development in several ways by providing infrastructure

and enabling rapid access to raw materials for production and markets for finished goods.

Industrial Corridors have the potential to enhance the competitiveness of industries located in

their vicinity. Some of the enhancement factors are as follows:

Economic enhancers

Development of quality integrated industrial infrastructure

Promotion of local factor cost advantage

Ease of access to consumption markets and gateways to market

Administrative enhancers

Institutional reforms

Regulatory and policy support (economic, trade, financial and tax systems)

Ease of doing business

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Value enhancers

Productivity enhancement

Efficiency in resource use

Technological readiness and upgrade

Skill development

Effective supply chain management

Research and development

Value addition

Vizag Chennai Industrial corridor

East coast economic corridor

The proposed industrial corridor between Visakhapatnam and Chennai is likely to attract an

investment of Rs.1 lakh crore in 10 to 15 years,

In a major boost to Andhra Pradesh’s industrial development, Asian Development Bank (ADB)

has said that it will help set up industrial zones in the State as a part of the Vishakhapatnam-

Chennai Industrial Corridor.

ADB have said that they would help the State government establish industrial zones with an

outlay of $2.5 billion (about Rs. 15,000 crore).

The project includes developing five industrial zones as part of the Visakhapatnam-Chennai

Industrial Corridor. These zones would come up in Visakhapatnam, Kakinada, Nellore,

Pydibhimavaram, Srikakulam.

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The VCIC is expected to provide a significant fillip to industrial growth in AP by enabling

speedy access to raw materials, enhance access to markets and help in the creation of industrial

clusters.

Special Investment Regions (SIRs)

The State will promote development of Special Investment Regions which will attract investment

in the state and emergence of clusters with MSMEs. A special policy would be drafted to

promote MSMEs, which play a very important role in the industrialization in the state. The State

Government will encourage investment in the social and urban infrastructure sectors as they are

necessary for sustainable industrial development. GoAP will provide state of the art industrial

infrastructure facilities through global benchmarking in the identified regions.

SIRs are industrial locations set up with world class infrastructure. Development of SIRs will

involve creation of an efficient multimodal transport network within a defined geography

supported by quality infrastructure, logistics, a policy framework that facilitates doing business

including trade facilitation, setting up of distribution networks that link production centers, urban

clusters and international getaways. Once created, these regions will facilitate growth by easing

infrastructure bottlenecks, improving access to markets, stimulating trade and investment and

boosting productivity and efficiency through associated network externalities and agglomeration

effects.

The benefits available to the tenants of the SIRs are:

Full support of the government and full potential for private sector participation

Logistic support

Premium civic amenities

Autonomy in operations

The 3 drivers of the VCIC

Industrial Clusters

Urbanization

Trade and Transport

Connectivity

Access,

Distribution, Collection

Labour, Technology, Knowledge, Innovation, Commerce

Access to Markets,

Gateways

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Flexibility in decisions

Single window clearance

Dispute Resolution mechanism

The proposed SIRs in the state are:

The upcoming National Investment Manufacturing Zones (NIMZs) in the lesser industrialized

districts of Prakasam and Chittoor might reshape the way future industrial growth centres will

emerge.

Information Technology Investment Regions (ITIRs) have been proposed in two districts,

Visakhapatnam and Chittoor which will facilitate development of Information Technology (IT)

and IT enables services (ITeS) in the state.

Industrial and Economic Corridors will promote inclusive growth by expanding economic

opportunities between SIRs developing the peripheries of the SIRs, covering industrially

backward regions between the SIRs, by providing linkages with urban centers, industrial

clusters, SIRs and so on.

The trade would be augmented by encouraging production fragmentation and linking domestic

producers in the Corridors with global production networks.

In AP, the linkages between the SIRs will be developed in the Vizag-Chennai Industrial Corridor

and Chennai-Bangalore Industrial Corridor.

Special Economic Zones (SEZ)

SEZs are similar to SIRs with increased focus on import-export related activities. SEZs aim to

provide simplified clearances and controls, world class infrastructure and a stable fiscal regime

to invest foreign investments in the state.

Various incentives will be given to the tenants of SEZs as declared by the Government of India

in the Special Economic Zones (SEZs) Policy announced in April 2000.

A specific Export Promotion Policy will be formulated which will detail other activities which

will be undertaken by the GoAP to promote exports.

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National Investment and Manufacturing Zones

Govt. of India has also accorded in-principle approval for setting up two National Investment

and Manufacturing Zones (NIMZ) - one in Yerpedu, Chittoor district and the other at Kanigiri,

Prakasam District in Andhra Pradesh.

These NIMZs would be developed as world class industrial cities with each zone having a

minimum of 5,000 hectares area and will act as growth nodes for industrial development and

employment generation in the state.

Lands have been identified in Yerpedu, Chittoor District and Kanigiri, Prakasam District for

development NIMZ. It involves an investment of Rs.30,000 Cr each and likely to create direct

employment to 6 lakh people

Industrial Parks and Growth Centres

With the view to provide infrastructure facilities to the entrepreneurs and investors, the GoAP

will develop new industrial parks, industrial estates and growth centres, as well as upgrade and

maintain the existing ones.

Industrial Park / Industrial Estates – Industrial parks and industrial estates are areas zoned

and planned for the purpose of industrial development with an area of <500 acres and >500 acres

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respectively. These will have the following infrastructure facilities required for various

industries:

a) Developed land/plot

b) Water distribution

c) Sewerage collection and treatment

d) Internal roads

e) Electricity

f) Communication network

g) Effluent treatment and disposal facilities for treated effluent

h) Training centres

i) R&D institution

j) Testing centres

Growth Centre – Growth Centres will be set up to promote green field industries through

adequate industrial as well as physical infrastructure. The infrastructure facilities provided in

these Growth Centres include:

a) Developed land

b) Industrial shed

c) Water supply

d) Power supply

e) Street lighting

f) Internal drainage

g) Sewerage system

h) Incubation centres

i) R&D institutions

j) Training centres

The locations for setting up industrial parks/estates and growth centres will be identified on the

basis of land availability.

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Port infrastructure

Andhra Pradesh has 14 notified non-major ports and one major port (Visakhapatnam) along its

974 km coastline. The State is active in encouraging the private sector to improve the port

infrastructure.

Andhra Pradesh enjoys many advantages over other states in location and infrastructure.

Port infrastructure including 1 major and 14 non-major ports.

Cargo handling capacity of about 85 MTs per annum.

Visakhapatnam port-largest cargo handling port in the country.

Andhra Pradesh plans to handle projected cargo of 200 million tones by the year 2020, larger

tonnage ships, providing ship repair facilities, industrial requirements, offshore, dedicated

feedstock, fishing requirements and water sports. Government of India granted major port at

Duggirajapatnam, Nellore District with an outlay of Rs. 8,000 Crore. Ports offer tremendous

potential for development and growth of a wide spectrum of maritime activities such as

international shipping, coastal shipping, ship repairs, fishing, captive ports for specific industries

and all weather ports.

Seaways

In order to capitalize on the strengths of an abundant coastline, it is proposed to build seaways

connecting all the ports existing along the coastal line starting from Srikakulam to

Krishnapatnam for transport of commodities. This will not only reduce the cost, time and traffic

congestion but also connects all industrial clusters to sea ports.

In order to take advantage of this initiative, it is to proposed to connect seaports at Srikakulam,

Mutyalampalem, Pudimadaka, Nakkapalli, Payakaraopeta, Kona, Machilipatnam, Nellore, etc.

through waterways duly constructing 10 jetties with a project cost of

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Airports

In AP there are 10 domestic airports and 3 Airstrips in Vizianagaram, West Godavari and

Guntur. The details are as tabulated on the next page.

Port & Airport Infrastructure (Proposed and Existing)

Roads

Road infrastructure is given significant thrust by the GoAP. 4 laning of NH 46, 6 laning of NH 5

and link roads connecting industrial nodes with seaport and airport will be given priority.

Energy

The per capita consumption of electricity is considered a development index and a parameter for

determining development level of countries/states. In this regard, the per capita consumption of

Andhra Pradesh as on 31st March 2014 was 719 units as against national average of 917 units

and 3,045 units globally

The per capita consumption of Andhra Pradesh shall be among the highest in Indian states and

comparable globally – 1650 units by 2018-19

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The power capacity allocation to Andhra Pradesh (as on 2nd June 2014) is 8037 MW. The state

intends to promote the energy sector to create an environment conducive to business as well as

raise the standard of living of its population. Thus it intends to add around 11800 MW in the next

five years. Details of the same are mentioned below

Moreover, it intends to provide a big thrust to the renewable energy sector, especially solar and

wind.

5,130 MW Solar – Including Ultra Mega Solar Power Projects of 2,500 MW

4,150 MW Wind projects

Green Corridor (Dedicated Transmission Network) for Renewable Evacuation

On the transmission front GoAP is adding 121 Substations, 4789 circuit kilometers of lines and

associated equipment to augment capacity and minimize transmission losses.

Apart from aforesaid initiatives, the GoAP is taking multiple measures for promoting energy

efficiency and conservation measures.

Mining

Andhra Pradesh has bountiful natural resources (coal, limestone, bauxite, and a number of minor

minerals) which can be a boon for industrial development

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Conducive Business Environment and Enablers

The Government of Andhra Pradesh has taken several proactive measures to create and maintain

an enabling business environment in the state. As a part of this endeavour, the government has

initiated several steps as follows:

Single Window Clearance

The state is now working on making changes to the provisions of the Single Window Clearance

Act 2002. As a part of this effort, the existing Single Window mechanism is being streamlined

by preparing new Act and Rules.

1 Including additional clearances from existing departments covered under Single Window

2 Including new departments under Single Window along with associated clearances

3 Identifying opportunities for exemptions and increased delegation

4 Constitution and mandate of nodal agency

5 Improving procedures through design of IT-enabled platform

Policy Interventions

The GoAP has introduced several attractive fiscal, labour, energy and land policies to enable a

conducive environment for sustainable industrial growth. Mentioned below are highlights.

Fiscal Incentives:

The State Government will currently provide financial incentives to all the 13 districts across

industries. Further to the bifurcation, the AP state is expecting an incentive scheme to be

declared by the Central Government.

Fiscal incentives for mega industries (investment of at least INR 500 crore or employment of

2000 people; for auto, textile and food processing investment threshold is INR 200 crore) can be

customized to suit the investment requirements on case to case basis.

Large Industries and Medium, Small and Micro enterprises (MSME) will be eligible for stamp

duty and transfer duty reimbursement

100% of stamp duty and transfer duty paid by the industry on purchase of land meant for

industrial use will be reimbursed.

100% of stamp duty for lease of land/shed/ buildings, mortgages and hypothecations will be

reimbursed

For VAT, 25% of VAT/CST or State Goods and Services Tax (SGST) will be exempted for a

period of 5 years from the date of commencement of commercial production. (For small and

micro enterprises it will be 50% and 100% respectively)

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Labour:

The GoAP will create a model to improve employability in the state by development of skilled

manpower.

Under this model, the state will identify the quantum requirement of skilled manpower,

identify industry specific skill sets required and provide courses at different levels of

education – matriculation and above.

The industries will be incentivized to participate actively in development of skilled manpower.

Industries will be involved in drafting the curriculum to make it sector-specific, industry

responsive and market driven.

AP Skill Development Mission (APSDM) will be set up in line with the National Skill

Development Corporation (NSDC), a not-for-profit organization with an equity base contributed

by the government and the private sector.

For MSME’s 50% of the cost involved in skill upgradation and training the local manpower

limited to INR 5000 per person for 10 persons and 20 persons respectively in micro & small and

medium industries will be reimbursed.

GoAP will promote skill development by catalyzing creation of large, quality, for-profit

vocational institutions

GoAP will also play a role of an ‘market maker’ by bringing financing, particularly in sectors

where market mechanisms are ineffective or missing

Energy:

Andhra Pradesh is one of the states selected for the centrally-sponsored “power for all” scheme.

This scheme will ensure 24x7 quality and reliable across the state.

Fixed power cost reimbursement @ Rs.1 per unit (upper ceiling) on the proposed revised rates

(2013-14) for 3 years from the date of commencement of commercial production will be

provided. In case of decrease in Power Tariff, the reimbursement will be reduced

proportionately.

Land:

The Government will undertake an advance valuation of parcels of government land which

would subsequently be allotted to investors on the recommendation of the AP Industrial

Infrastructure Corporation (APIIC) and the Industries Department.

The GoAP will introduce a transparent mechanism for allotment of land to the industries.

The Land Allotment Policy of APIIC shall give thrust to promote MSMEs by reserving specific

percent of total area of land in government and private industrial areas for MSME industries and

allotting land in government run Industrial Areas at a predetermined concessional lease rate as

defined by APIIC in the land allotment policy.

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GoAP will also work towards providing proper connectivity to all the existing and new industries

in the state (Large industries). Infrastructure like roads, power and water will be provided at door

step of the industry for standalone units by contributing 50% of the cost of infrastructure from

IIDF with specific ceilings.

Major initiatives proposed

• New Industrial Policy 2015-20

• Creation of new sectoral policies for 2015-20

• Policy for promotion of MSMEs

• Life Sciences

• Textile

• Food Processing

• Aerospace & Defence

• Solar & Wind energy

Governance initiatives

Amendment to Single window Act 2002

Introduce Project monitoring system

Provision of Escort Services to Mega projects

Establish investment promotion cell

Empower SW committee to issue pollution clearance for green industry Infrastructure

issues

Sector Specific Planning

The region has diversified industrial base and is in forefront in many sectors such as Textiles,

Food and Agro based Industry, Mineral based, Engineering Industry and Leather. The industrial

development in the region is mainly concentrated in certain districts like Visakhapatnam,

Chittoor, Nellore, Kakinada and they are emerging as industrial hubs.

Sectoral Strengths of the Region

Agro, Food Processing

The region is very rich in terms of agri-resources and it is historically called the "Rice Bowl of

India" and continues to be the largest producer of Rice in the country. The region is also the

leading producer of cash crops like Tobacco, Groundnut, Chillies, Turmeric, Oilseeds, Cotton,

Sugar and Jute. It produces some of the finest varieties of fruit like mango, grapes, guava, sapota,

papaya and bananas.

In addition to the agri-resources, this region is very rich in terms of marine resources due to its

longest coastal line of 974 Km. In facts the region alone account for 25% of marine exports in

the Country. The industry is mainly concentrated in Visakhapatnam and Bheemavaram areas.

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There is an increased awareness about the need to bolster food processing sector given the

region’s immense potential with regard to agricultural production.

Textiles

Textiles are another potential area for industrial growth in the region. Guntur has the second

largest cultivated area under cotton in entire AP with 1.53 Lakh Hectares (14.81%) and is the

largest producer of cotton in A.P. with 4.63 lakh Bales (21.96%). The potential for Guntur

District is as indicated below:

Textile Sector Unit Existing capacity Potential for

Additional capacity

Ginning Lakh Bales 27.14 --

Spinning Lakh Spindles 7.86 9

Weaving Looms 372 .00 4000

Textile Processing Lakh Lin. Mts 438.00 2200

Garmenting Lakh Nos. 22.00 1800

To capitalize on this strength and to make the Guntur as Textile Hub, Government of India may

consider sanctioning an integrated textile park under the Textiles Park scheme of Govt. of India.

This will also provide impetus to other spinning bases like Krishna, Prakasam, Visakhapatnam

and West Godavari also has spinning base.

Biotechnology

The biotechnology sector is expected to offer huge investment opportunities in the coming five

to ten years in the areas of vaccines, bioactive therapeutic proteins, contract research, clinical

trials, bioinformatics, medicinal plants, animal biotechnology, seri-biotechnology, stem cell

biotechnology, bio-fuels, bio pesticides, bio-informatics, human genetics and environmental

biotechnology.

The erstwhile Andhra Pradesh was recognized as one of the biggest hubs for biotech companies

in South India and almost all companies are concentrated in and around Hyderabad due to the

presence of renowned R& D facility and Genome Valley.

With the bifurcation of the state, Andhra Pradesh has been deprived of R& D facilities as well as

infrastructure. In order to be part of this growth potential, Infrastructure needs to be provided in

the form of world-class biotech parks and clusters in Andhra Pradesh, one at Visakhapatnam and

other at Tirupati. The estimated cost for these parks would be about Rs. 200 crore.

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Pharmaceuticals

The bulk drug industry is mainly concentrated in and around Hyderabad. Due to restriction

imposed by the APPCB in setting up of new bulk drug industries in and around Hyderabad,

”Pharmacity SEZ” - first of its kind in the country was developed in Visakhapatnam as an

alternated location for establishing the manufacturing of Pharmaceutical and Bulk Drugs with

Plug and Play facilities and marine outfall.

Many International companies such as EISAI (Japan), PHARMAZELL (Germany), APTUIT

LAURUS (USA) and SNF (France) have already set up their bases in Pharma City. To capture

the potential of the sector second Pharma City in the state at Nellore is proposed with Rs.500

Crore of investment.

Mineral Based Industries

Andhra Pradesh region is endowed with large number of mineral resources and it is called as a

mineral store house. The major minerals include Bauxite, Lime stone, Barytes, Sea sand, Quartz,

oil and natural gas, Dolomite, Steatite, Calcite, low grade iron ore etc. Based on these minerals,

there is huge potential for Cement, Aluminum Refinery, Barium chemicals, Glass, Atomic

Minerals, Steel and iron ore beneficiation.

Engineering

Demand for Electronics in Indian market was USD 45 billion in 2008-09 and is expected to

reach USD 125 billion by 2014 & 400 billion by 2020.

Greenfield Electronic Manufacturing City (EMC) at Visakhapatnam Region in 100 acres close to

Visakhapatnam Airport is proposed to be developed at a cost of Rs.500 crore.