government of andhra pradesh: industry mission blueprint 2014 · 2015-05-22 · 2 draft industry...
TRANSCRIPT
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
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
2 Draft Industry Mission Blueprint- 2014
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.
3 Draft Industry Mission Blueprint- 2014
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.
4 Draft Industry Mission Blueprint- 2014
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.
5 Draft Industry Mission Blueprint- 2014
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
6 Draft Industry Mission Blueprint- 2014
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
7 Draft Industry Mission Blueprint- 2014
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
8 Draft Industry Mission Blueprint- 2014
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.
9 Draft Industry Mission Blueprint- 2014
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
10 Draft Industry Mission Blueprint- 2014
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.
11 Draft Industry Mission Blueprint- 2014
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
12 Draft Industry Mission Blueprint- 2014
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.
13 Draft Industry Mission Blueprint- 2014
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
14 Draft Industry Mission Blueprint- 2014
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
15 Draft Industry Mission Blueprint- 2014
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
16 Draft Industry Mission Blueprint- 2014
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)
17 Draft Industry Mission Blueprint- 2014
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.
18 Draft Industry Mission Blueprint- 2014
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.
19 Draft Industry Mission Blueprint- 2014
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.
20 Draft Industry Mission Blueprint- 2014
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.