AP State Profile-Executive Summary
AP State Profile-Executive Summary
AP Industrial Profile
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stations
No.national 4648 kms.
highways(12)
Airways: Hyderabad,
International Shamshabad
Domestic Airports Hyderabad,
Visakhapatnam,
Vijayawada and
Tirupati etc;
Sea Ports: Visakhapatnam,
Kakinada,
Krishnapatnam and
Machilipatnam,
Gangavaram
Power: Installed
capacity
Units generated
(MU)
Agricultural Resources Food grains chillies, cotton,
Cash crops tobacco, coconut,
cashew, groundnut,
sugarcane
Mineral resources Major minerals: Barytes 97%
State’s share in Sand
deposits of major 62%
minerals: Silver
40%
Quartz
40%
* Mica Crude
47%
Industrial Industrial 272
Infrastructure estates/development
areas
Industry at a glance No. of micro, small 1,58,128
( March 2009) enterprises
Investment in crores 10947.55
Employment no. 1532529
Large scale sector No. of enterprises 4099
( as on 31.3.09)
Investment Rs in 68258
crores
Employment ( nos) 9,77,754
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State Economy Gross State 2,29,461
2007-08 Domestic Product
GSDP at 2006-07)
prices
(Rs. Crores)
Gross State 2,07,904
Domestic Product
GSDP at 2006-07
prices
(Rs. Crores)
Per Capita Income at 33,970
Current prices (inRs)
The state has 23(twenty three) districts, with 9 districts in the coastal
area, 10 districts in the Telangana area, and 4 districts in the
Rayalseema region. Hyderabad is the State capital.
The average literacy rate in the State is 60.47 which is a good increase
from the 1991 figure of 44.1 The literacy rate among male population is
70.32, and that amongst female population is 50.43
RESOURCES:
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pulses, fruits and vegetables etc. Major furits produced are Mangoes,
grapes, pineapple, banana and guava. Apart from these, the state also
produces spices like chillies, turmeric, ginger, coriander, etc. The state’s
share in rice production in the country is 12.75%, ( 2005-06 data) share
in maize production is 20.99% , Ground nut is 17%, Mesta is 53%,
tobacco is 36% and turmeric is 61%.
Forest resources: Andhra Pradesh has a total forest cover of 23%of the
total geographical area of the state. Around 45% of the cover falls in the
Telangana region, while around 30% falls in the coastal region and 25%
in Rayalaseema region.
The major forest produces in the State are Timber, fire wood &
charcoal, Minor forest produce include bamboo, beedi leaves, soapnuts,
red sanders wood etc. Plantation products like cashew, teak and coffee
are also grown.
Natural Gas: Vast reserves of natural gas are found in the Krishna-
Godavari basin with 47 million standard cubic metres per day, has
opened up a plethora of industrial opportunities.
Human resources: Every year, the state produces more than 81,000
engineers, post graduates in computers, and management students, who
make world class professionals with good knowledge of English. These
young professionals have made a mark in the global IT industry. The
women force in the state has set exemplary standards through the Self
Help movement. The state houses a number of Engineering Colleges and
Management / Business schools. Prestigious Institutions like Indian
Instititute of Technology ( IIT), Birla Institute of Technology ( BITS), IIIT,
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NALSAR, National Institute of Techonology (NIT) etc are located in the
capital.
AP – INDUSTRIAL ENVIRONMENT:
INFRASTRUCTURE :
Roads: AP has been one of the first states to encourage private sector
participation in infrastructure development. The state ha s a total length
of over 2,00,000 kms of road network, including national and state
highways, district and rural roads. Development of high density corridors
on major routes is being undertaken with private participation.
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passengers is 36,000. Average cargo handled per month is around 2052
Tonnes.
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Entrepreneurship Development: Many training Institutions in the state
provide Entrepreneurship Development training and technical
consultancy. Important among these are NIMSME, MSME-DI, APITCO,
CEDAP, Self Employment and Training Institutes in all districts, and a
host of NGOs.
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industries
13. Basic metal 2648 460.78 43741
industries
14. Metal products 15501 919.98 131294
15. Machinery and 11696 576.78 88940
equipment
16. Electrical and 5420 631.6 64448
electronic
17. Transport equipment 2282 75.82 20244
and parts
18 Miscellaneous 3471 167.81 29208
19 Repairs and services 14634 254.65 74306
20 Others 4454 587.84 50087
Total 158173 10504.33 1532015
Source: Commissioner of Industries, Govt of AP
The State is ranked 3rd in the country with a total Rs. 1,51,454
crores of committed investment with an employment potential to
7,81,476 persons in the State after liberalization of industrial policy.
Exports from AP: The total exports from AP during the year 2007-08
were to the tune of Rs. 57343 crores. The share of software was 45.5% ,
and that of food products was 10.6%. The exports during 2006-07 was
40601 crores and that during 2005-06 was 24407.9 crores.
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Total Rs 57353 crores
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GOVERNMENT INITIATIVES
Policy Initiatives
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o 5% of the project cost will be provided as seed
capital assistance to SSI/Tiny units started by
SC/ST entrepreneurs limited to Rs.5.00 Lakhs
(5.2.8)
o 8% subsidy on capital equipment for
technology upgradation (5.4.6)
o 50% subsidy on the expenses incurred for
quality certification limited to Rs. 1 Lakh
(5.4.9)
o 25% subsidy on cleaner production measures
limited to Rs.5 Lakhs (5.6.8)
o 50% subsidy on the expenses incurred for
patent registration limited to Rs. 5 Lakh
(5.10.3)
1b. Women o 100% reimbursement of Stamp duty and
Entrepreneurs transfer duty paid by the industry. (5.1.2)
o 100% reimbursement of Stamp duty for lease
of land/shed /buildings (5.1.3)
o 100% reimbursement of Stamp duty and
transfer duty paid by the industry on financial
deeds and mortgages etc (5.1.4)
o 25% rebate in land cost in IEs/IDA’s limited to
Rs.5 lakhs (5.1.5)
o Power cost will be reimbursed @ Rs.0.75 per
unit during the first year of the policy and
thereafter for the remaining four years the rate
of reimbursement would be so regulated on
yearly basis keeping in view of the changes in
the tariff structures to ensure that power cost
to the industry is pegged down to the first
year’s level (5.1.11)
o 15% Investment subsidy limited to Rs.15
lakhs (5.2.2)
o 5% Additional Investment subsidy limited to
Rs.5 lakhs (5.3.5)
o Another 5% Investment subsidy limited to
Rs.5 lakhs for women belong to SC/ST
community (5.3.6)
o 25% of the tax paid during one financial year
will be ploughed back to Tiny/SSI/ Large &
Medium Industries as a grant by the
Government towards the payment of tax
during next year. Benefit will be available for 5
years from the date of commencement of
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production i.e upto 6th year. (5.2.4)
o 5% of the project cost will be provided as seed
capital assistance limited to Rs.5Lakhs (5.3.7)
o 5% interest rebate limited Rs.5 Lakhs per year
for 5 years (5.3.8)
o 8% subsidy on capital equipment for
technology upgradation (5.4.6)
o 50% subsidy on the expenses incurred for
quality certification limited to Rs. 1 Lakh
(5.4.9)
o 25% subsidy on cleaner production measures
limited to Rs.5 Lakhs (5.6.8)
o 50% subsidy on the expenses incurred for
patent registration limited to Rs. 5 Lakh
(5.10.3)
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o 50% subsidy on the expenses incurred for
quality certification limited to Rs. 1 Lakh
(5.4.9)
o 25% subsidy on cleaner production measures
limited to Rs.5 Lakhs (5.6.8)
o 50% subsidy on the expenses incurred for
patent registration limited to Rs. 5 Lakh
(5.10.3)
3. Mega Projects o Mega projects are eligible for all the incentives
available for large and medium scale
industries.
o 25% of the tax paid during one financial year
will be ploughed back to Industry as a grant
by the Government towards the payment of tax
during next year. Benefit will be available for 5
years from the date of commencement of
production i.e upto 6th year. (5.2.4)
Further, the Government will also extend
tailor-made benefits to suit to particular
investment requirements on case to case
basis. ( 5.7.4)
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Cluster Development in the State: The following clusters are being
undertaken in the State for cluster development:
1. Imitation Jewellery cluster, Machilipatnam, Krishna district
2. Mango jelly cluster, Bhimli, Vijayanagaram
3. Mango jelly cluster, Kakinada, East Godavari district
4. Burnt lime cluster, Piduguralla, Guntur district
5. Turmeric processing cluster, Duggirala, Guntur district
6. Food processing cluster, Vijayawada, Krishna district
7. Graphite Crucibles cluster, Rajahmundry,East Godavari district
8. Ready made garments cluster, Rayadur, Anantapur district
9. FRP Cluster , Hyderabad ( by MSME=DI, Hyderabad)
Power concessions –
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Waiver of minimum charges during the closure period
Exemption from security deposit for reconnection.
Tax Concessions –
Deferment of arrears
Continuation of incentives sanctioned earlier
Non-fiscal –
Relaxation from power cuts
Permission to mortgage surplus lands
Amicable settlement of labour disputes
For operating this scheme Special Cell has been created in the
Commissionerate of Industries for receiving and processing of the
applications from sick industrial units and to extend concessions as per
their eligibility. So far 28 cases have been considered for sanction of
relief’s and concessions for revival.
AP’s Strengths
Andhra Pradesh, a vibrant state provides a firm and ideal platform
for an industry to takeoff
Its proactive policies and legislations are helpful tools for an
investor to come in
It has made far reaching changes in
in
1) Labour Laws 2) Industrial Policy
3) Power Reforms 4) Provision of Industrial Water
5) Enacted single window clearances Act
6) A model state for good governance
Centrally and strategically located
Second longest coastline in the country
Ample water resources
Second largest mineral reserves in the country
Largest bulk drug and formulations industry in the country
Capital city Hyderabad is globally recognized and fastest growing
base for IT enabled services
Growing centre for Biotechnology
Leading state in several Agro-based industries – Sugar, Edible Oil,
Sea foods
First state to introduce Infrastructure Development Enabling Act
Huge gas reserves found in Krishna Godavari basin – 14 trillion
cubic feet
Power – good PLF : 96.3%
Good rail, road network and communications
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Government of Andhra Pradesh identified the following Growth
engines in the Primary, Secondary and tertiary sectors
Primary
Rice
Groundnut
Cotton
Chillies
Sugarcane
Horticulture
Cocoons
Dairy
Eggs
Meat & Meat Products
Fisheries
Mining
Secondary
Food Processing
Chemical Products,
Small Scale Industries
Electricity
Tertiary
Construction
Trade
Railways
Transport
Business Services (IT)
Education
Medical & Health
Communications
Banking
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