White paper on

Industry, Employment and Skill Development

- Industries, ITE&C, Tourism, Skill development, Youth Affairs –
December 2018

Government of Andhra Pradesh

1. Table of Contents
1. Preface .......................................................................................................................................... 3
2. Summary of key achievements................................................................................................... 3
3. Challenges faced by State to drive economic development .................................................... 5
3.1 Status of the State in 2014 ....................................................................................................... 5
3.2 Unfulfilled commitments of GoI under AP Reorganisation Act, 2014 .................................. 5
4. Economic development initiatives.............................................................................................. 8
4.1 Industry Mission ....................................................................................................................... 8
4.2 Increase in Annual Budget for industries sector .................................................................... 9
4.3 Enabling policy environment................................................................................................... 9
4.4 Ease of doing business .......................................................................................................... 10
4.5 Incentives released to industry.............................................................................................. 11
4.6 Investment promotion............................................................................................................ 12
4.7 MSME development ............................................................................................................... 12
4.8 Development of infrastructure towards economic growth ................................................. 13
4.9 Tourism sector development................................................................................................. 18
4.10 Economic cities ....................................................................................................................... 20
5. Skill development....................................................................................................................... 21
5.1 Skilling initiatives by APSSDC ............................................................................................... 21
5.2 Skilling initiatives by IIDT....................................................................................................... 23
5.3 Skilling initiatives by APITA ................................................................................................... 23
5.4 Skilling initiatives in Tourism sector ..................................................................................... 23
5.5 Mukhyamantri Yuvanestham ................................................................................................ 23
6. Achievements ............................................................................................................................. 24
6.1 Industry growth ...................................................................................................................... 24
6.2 Tourism growth ...................................................................................................................... 25
6.3 Ranked number 1 on EODB ................................................................................................... 25
6.4 Investments and employment ............................................................................................... 25
6.5 Awards and Recognition ........................................................................................................ 29
7. Glossary ...................................................................................................................................... 32

Page | 2
1. Preface

Government of Andhra Pradesh envisions transforming the state into a happy, inclusive,
responsible, globally competitive and innovation driven society. To realize this vision, the
government has focused on Industry and Services sectors for creating private sector jobs within
the State. Towards this, the Government has entrusted the departments of Industries &
Commerce, IT, Electronics & Communication and Tourism to foster an environment conducive to
attract investments into the State, and the departments of Skill Development and Youth Affairs to
create a pool of skilled manpower to support and directly benefit from employment opportunities
created by new enterprises.

This White Paper on ‘Industry, Employment & Skill Development’ encompasses the Departments
of (a) Industries & Commerce (b) IT, Electronics & Communication (c) Tourism (d) Skill
development and (e) Youth Affairs.

The narrative of this White Paper is set in the context of bifurcation of the State of Andhra Pradesh
under the AP Reorganisation Act, 2014, and documents challenges faced at the time of state
bifurcation, highlights initiatives & significant achievements towards creating a business friendly
environment to attract investments, and drive skill development & employment generation in the
State.

2. Summary of key achievements

Economic growth
i. Growth of industry and manufacturing sector in AP has outpaced industrial growth in India
over past 3 years
Growth rates of
Growth rates of industrial sector
manufacturing sector
(constant prices 2011-12)
(constant prices 2011-12)
India 1 AP 2 India AP

2017-18 4.40% 8.49% 2017-18 4.60% 8.36%

2016-17 5.60% 7.40% 2016-17 7.90% 8.56%

2015-16 8.80% 9.61% 2015-16 10.80% 13.89%

1
Economic Survey 2017-18, Volume II, Ministry of Finance, Government of India
2
Andhra Pradesh Socio-Economic Survey 2017-18

Page | 3
 ii. State Government is tracking 2,622 large & mega projects with committed investment of
Rs 15.48 lakh crores and employment potential of 32.35 lakhs; Out of these, 810 projects
have gone into production, with committed investment of Rs 1.77 lakh crores, and
committed employment of 2.51 lakhs.
iii. Marquee companies that have started commercial production in AP include Isuzu Motors,
Pepsi, Cadbury’s (Mondelez), Kellogg’s, Greenply, Gamesa, Suzlon Energy, Colgate
Palmolive, Tata Chemicals, Berger Paints, Aurobindo Pharma, Laurus Labs, Hospira
Healthcare, Dr Reddy’s Labs, Lupin, Rexam etc.
iv. Automotive sector attracted projects with committed investment of USD 3.7 billion (Rs
24,615 crores) with companies such as Kia Motors and its vendors, Isuzu Motors, Apollo
Tyres, Ashok Leyland, Bharat Forge, Hero Group etc. setting up their facilities
v. One in every 5 mobile handsets produced in India is now a Made in Andhra product, with
companies such as Foxconn (Rising Star Mobiles) and Celkon Mobiles having set up
facilities. Over 3-3.5 million phones are produced every month in AP today
vi. Total employment picture: Employment from Large & Mega projects (2.51 lakhs), MSME
(3.30 lakhs), Placements facilitated by APSSDC (1.78 lakhs), Placements facilitated by APITA
(0.13 lakhs)

Skill development
vii. 8.66 lakh beneficiaries have been covered under APSSDC training programmes over last 4.5
years
viii. Mukhyamantri Yuvanestham scheme launched to benefit unemployed youth with monthly
allowance to pursue skill development courses; Over 3.3 lakh youth enrolled; Total Rs 81
crores disbursed till 25th Dec 2018
ix. International Institute of Digital Technologies (IIDT), Tirupati, made operational in 2017 to
impart advanced courses in Business Analytics and Cybersecurity.

Awards & Recognition

x. State ranked number 1 on ease of doing business amongst all States in India for two
consecutive years (2016 & 2017) by Department of industrial Policy & Promotion (DIPP),
Government of India, and World Bank

Page | 4
3. Challenges faced by State to drive economic
development
Economic development and employment generation are most important growth drivers for socio-
economic prosperity. Andhra Pradesh is primarily an agrarian economy with 55% workforce in
agriculture sector, and only 18% workforce in industrial sector (2014-15)3.

3.1 Status of the State in 2014

At the time of bifurcation in 2014, the State started on a weak foundation, with many challenges4
that had to be addressed to meaningfully drive economic growth and create employment
opportunities:
1. Manufacturing sector growth in AP was below national average for 10 years
2. Loss of the well-developed IT/ITeS sector in Hyderabad, which was contributing around Rs
34,000 crores (48.19% of State revenues)5, and was a large employment generator.
3. State was power deficit, with erratic power supply, leading to losses in industrial
production
4. Many projects such as Volkswagen and Proton failed to take off for various reasons
5. There was a large industrial incentive backlog of Rs 2,060 crores, which was pending from
2010-11
6. Absence of effective policies to support tourism development, with limited international
airport infrastructure, and negligible quality accommodation facilities
7. Lack of a skill development ecosystem to identify and nurture skills towards job creation
8. Huge revenue deficit, which became a roadblock for implementation of IT and industrial
infrastructure projects
9. There was a need to rebuild brand image of Andhra Pradesh to attract private sector
investments

3.2 Unfulfilled commitments of GoI under AP Reorganisation Act, 2014

These challenges before the State Government were further accentuated by unfulfilled
commitments of Government of India to promote industrialization and economic growth in
Andhra Pradesh in accordance with the AP Reorganisation Act, 2014

3
Sunrise Andhra Pradesh Vision 2029 Report
4
White Paper on ‘Industry, Infrastructure and Employment’, July 2014
5
ITE&C department information, 2012-13

Page | 5
3.2.1 Fiscal measures to promote industrialization and economic growth

Provision in the Act (Section 94 (1))

Fiscal measures, including offer of tax incentives, to promote industrialization and economic
growth – on lines extended to other States

Fiscal measures, including offer of tax incentives, to promote industrialization and economic
growth in Andhra Pradesh, on par with other erstwhile special category states, were not provided
by Government of India to the State. Such incentives would include exemption of excise duty &
income tax, capital subsidy, interest subsidy, freight subsidy, insurance premium etc. Such
incentives would have helped Andhra Pradesh to compete on economic growth with well-
established States like Maharashtra, Gujarat and Tamil Nadu.

Further, incentives provided under North East Industrial Development Scheme (NEIDS), 2017, was
also not extended to AP. The incentives provided under NEIDS include:
i) GST-Reimbursement up to the extent of Central Government share of CGST and IGST
for 5 Years
ii) Reimbursement of Centre's share of income tax for first 5 years
iii) 30% of investment in Plant & Machinery with an upper limit of Rs.5 crores
iv) 3% on working capital credit advanced
v) Reimbursement of 100% insurance premium on insurance for 5 years
vi) Transport and Employment subsidy

The incentives notified as additional incentives to the State of Andhra Pradesh by Government of
India under the AP Reorganisation Act, 2014, are:
i) 15% of higher additional depreciation
ii) 15% of investment allowance on cost of plant and machinery for 7 backward districts of
AP
These additional incentives announced by Government of India for Andhra Pradesh have not been
found to be effective in attracting investments and promoting Industrialization, as envisaged
under the Act. Further, these incentives have also been extended to backward districts in states
such as Telangana, West Bengal, and Bihar, thereby not being of any significant advantage to AP.

3.2.2 Visakhapatnam – Chennai industrial corridor

Provisions in the Act (Schedule XIII)

The Government shall, within six months from the appointed day, examine the feasibility of
establishing a Vizag-Chennai industrial corridor along the lines of Delhi-Mumbai Industrial
Corridor and take within such period an expeditious decision thereon

Page | 6
Visakhapatnam-Chennai industrial corridor (VCIC) program was provided a loan of USD 615
million (Rs 4,170 crores) through the Asian Development Bank (ADB), rather than direct financial
support from Government of India. Government of Andhra Pradesh is additionally contributing
USD 215 million (Rs 1,434 crores) for development of VCIC from its own budget

In contrast, the Delhi-Mumbai Industrial Corridor (DMIC) has been supported through equity
contributions and grants from Government of India. Rs 17,500 crores was contributed as equity in
DMIC through National Industrial Corridor Development & Implementation Trust (NICDIT). A
corpus of Rs 1,000 crores was provided as grant-in-aid to carry out development activities. Rs
1,200 crores was also earmarked in the Union Budget for infrastructure development at Dholera
Investment Region in Gujarat, and Aurangabad Industrial Township (Shendra – Bidkin) in
Maharashtra.

For a State with a huge revenue deficit, it would have been financially rewarding if Government
of India had developed VCIC on the lines of DMIC through 100% grant funding by National
Industrial Corridor Development & Implementation Trust (NICDIT), rather than through a loan to
be repaid by the State Government, making it an additional financial burden for the State.

3.2.3 Set up of greenfield petrochemical complex

Provisions in the Act (Schedule XIII) – Section 93 (4)

IOC or HPCL shall, within six months from the appointed day, examine the feasibility of
establishing a greenfield crude oil refinery and petrochemical complex in the successor State
of Andhra Pradesh, and take an expeditious decision thereon.

Petrochemical complex to be setup by HPCL or IOC in Andhra Pradesh did not materialize because
of Government of India’s insistence on Government of AP providing interest-free loan of Rs. 1,438
crores per annum, for 15 years, or one time capital grant of Rs. 7,330 crores towards the project
viability gap, rather than supporting the project from funds of Government of India. Government
of AP had further offered power subsidy of Rs. 577 crores per annum and water subsidy of Rs 51
crores per annum that had helped reduce project viability gap to an interest-free loan of Rs. 975
crores per annum for 15 years, or one time capital grant of Rs. 5,615 crores. Inspite of this offer
from Government of AP, Government of India has not come forward to help setup the plant with
the reduced requirement for viability gap funding.

Page | 7
3.2.4 Set up of an Integrated Steel plant in YSR Kadapa district

Provisions in the Act (Schedule XIII) – Section 93 (3)

SAIL shall, within six months of the appointed day, examine the feasibility of establishing an
integrated steel plant in YSR district of the successor state of Andhra Pradesh

SAIL was supposed to conduct a feasibility study and examine the financial viability of setting up
an integrated steel plant in YSR Kadapa district. In November 2014, SAIL submitted feasibility
report indicating weak feasibility, with the Pre-tax IRR (Internal Rate of Return) estimated at 8.07%
through the Blast Furnace – Basic Oxygen Furnace (BF-BOF) route. However, a Task Force was
constituted, chaired by the Joint Secretary, Ministry of Steel, GoI, to evaluate ways and means to
improve feasibility of the steel plant in AP. The task force decided that MECON would rework
feasibility of the plant considering inputs provided by GoAP. MECON presented their draft
feasibility report, based on which the preliminary IRR for the BF-BOF route was estimated to be
18.95% (pre-tax), which is extremely encouraging. However MECON has not yet submitted the
final feasibility report, inspite of repeated communication from the Hon’ble CM to the Hon’ble PM
and Hon’ble Minister of Steel.

Due to the lack of proactive action by the Government of India on this particular assurance in the
Act, the State Government has decided to establish the integrated steel plant in Kadapa district
through the Rayalaseema Steel Corporation, which is a government owned entity, with private
participation, set up to execute the project. The foundation stone for the steel plant has been laid
by the Hon’ble CM on 27th December 2018

4. Economic development initiatives

Inspite of challenges faced from the legacy of previous Government, and lack of committed
support from Government of India, the State Government proactively worked towards economic
development, growth of industrial & service sectors, and building a strong brand of ‘Sunrise
Andhra Pradesh’ to attract investments

4.1 Industry Mission

To promote accelerated industrial development through domestic & global investments, and
enable gainful employment opportunities, the State Government had to focus on structural shift
in economy through a mission-based approach. The Industry Mission targeted to:
i. Increase contribution of manufacturing to GSDP from 9.95% (in 2013-14) to 15% by 2020
ii. Increase contribution of industries to GSDP from 20.7% (2013-14) to 25% by 2020
iii. Attract Rs 2 lakh crores cumulative industrial investments by the year 2020 to align with
the State’s vision targets

Page | 8
4.2 Increase in Annual Budget for industries sector
The Government’s emphasis on developing the industries sector and ensuring wide-scale job
creation in Andhra Pradesh, is clearly highlighted by the increase in annual budget provided to
the Industries Department since June 2014.

During the period 2014-19, the average annual budget provided to the Industries Department
was Rs 1,593 crores, which is 2.25 times the average annual budget of Rs 707.58 crores during
the two years prior period (2012-13 and 2013-14) in the combined State.

4.3 Enabling policy environment

To position the State as the most preferred destination for investors and spur industrial and
service-sector growth, there was an urgent need to create a consistent and enabling policy
environment, which provided best-in-class fiscal and non-fiscal incentives, to make enterprises
based in Andhra Pradesh globally competitive.

Industrial Sector: With target to attract Rs. 2 lakh crores in manufacturing investments and create
employment for 10 lakh people by 2020 in the manufacturing sector across key focus sectors, the
State Government released following policies:
i. AP Industrial Development Policy 2015-20
ii. AP Single Desk Policy 2015-20
iii. AP MSME Policy 2015-20
iv. AP MSME Parks Policy 2015-20
v. AP Stressed Enterprises Policy 2018-20
vi. AP Aerospace & Defence manufacturing Policy 2015-20
vii. AP Automobile & Auto-Components Policy 2015-20
viii. AP Backward districts Ultra Mega Integrated Automobile Policy
ix. AP Biotechnology Policy 2015-20
x. AP Food Processing Policy 2015-20
xi. AP Electric Mobility Policy 2018-23
xii. AP Textiles & Apparel Policy 2015-20
xiii. AP Textiles, Apparel and Garments policy 2018-23 (revised policy)

ITE&C: With an intent to promote innovation in IT and Electronics sectors, and create 1 lakh jobs
in the IT sector, and 2 lakh jobs in the Electronics sector, the Government released following
policies:
i. Consolidated AP IT Policy 2018-2020
ii. AP Electronics Policy 2014-2020
iii. AP Innovation and Startup Policy 2014-2020

Page | 9
 iv. AP Global In-House Centers (GIC) Policy 2017-2020
v. AP Designated Technology Park (DTP) Policy 2017-2020
vi. AP Integrated Innovation and Technology (IIT) Policy 2017-2020
vii. Artificial Intelligence Cloud Hub Policy 2018-2020
viii. Animation, Visual effects, Gaming and Comic (AVGC) Policy 2018 – 2020
ix. AP Cyber Security Policy 2017

Tourism: Similarly, to develop AP as one of the most preferred tourist destinations through
sustained investments, robust tourism infrastructure projects & services, and create 5 lakh
additional jobs in the tourism sector, the State Government released the following policy:
i. AP Tourism Policy 2015-20

4.4 Ease of doing business

In Andhra Pradesh, the commitment has always been to provide the best business environment
in India. The Government’s efforts towards creating the most stable business environment in India
has been built on consistency in policies, end-to-end technology initiatives, several business
reforms, decentralization, and investor outreach. The State Government took up various initiatives
towards this endeavor.

4.4.1 Single Desk Portal

The Single Desk Portal (SDP) is an initiative taken up by Government of Andhra Pradesh to
establish a one stop portal for Government to Business (G2B) services offered across the business
cycle. Launched in April 2015, the SDP offers 69 services cutting across 19 departments. All
approvals for setting up an industry in Andhra Pradesh are provided online within a maximum of
21-days.

SDP has greatly improved service delivery to businesses. Physical visits to the departments are
eliminated and timelines for service delivery are monitored through the CORE Dashboard by
Hon’ble Chief Minister’s office. To support the SDP, the Government released the Single Desk
Policy, 2015, that provides the framework for monitoring functioning of the online SDP system.
Further, Single Desk Bureau (SDB), headed by the Commissioner of Industries, was also set up to
regularly monitor the functioning of SDP. All concerned departments have been made part of SDB
to review the approval process on SDP.

As of 21st December 2018, a total of 33,565 approvals have been provided, with service level
compliance of 99.85% in the last six months. SDP is rated as a best practice by Government of
India and World Bank in 2016.

Page | 10
4.4.2 Public Service Delivery Guarantee
The Government enacted the Public Service Delivery Guarantee (PSDG) Act 2017 to provide time-
bound delivery of public services for industry. A total of 74 services are covered under the PSDG,
out of which 44 are delivered through SDP. PSDG is expected to set higher standards of service
delivery and build a culture of performance in the State.

4.4.3 Business Reforms

To simplify processes for the industry, the Government undertook many business reforms
including:
i. Central inspection system for joint inspections
ii. GIS system for industrial land availability
iii. Online system for instant scrutiny of building plans
iv. Self-certifications for inspections (medium-risk industries)
v. Third party verifications of certificates issued by departments
vi. Automated tools for monitoring electricity outages
vii. Online system for incentives processing and sanctions
viii. On-the-spot allocation of raw materials
ix. Online system for Industrial Infrastructure Development Fund (IIDF)

Global benchmarking: The Government is also benchmarking with global EODB best practices
from countries such as Singapore, New Zealand, UK, Denmark, Korea etc. and has partnered with
Lee Kuan Yew School of Public Policy, National University of Singapore and World Economic
Forum for improving business reforms and competitiveness.

4.4.4 Advisory Committees for ease of doing business

The Government has also constituted Advisory Committees at the State level chaired by the
Hon’ble Minister for Industries, and at District level, chaired by the District Collector, for
monitoring and effective implementation of ease of doing business service delivery in the State.

4.5 Incentives released to industry

To ensure a conducive business environment in the State, and facilitate release of industrial
incentives, the Government increased the budget for industrial incentives from an average of Rs
312 crores per annum during the period 2009-14, by nearly 4 times to an average of Rs 1,218 crores
from 2014-15 onwards.

From June 2014 - December 2018, the State Government has released Rs 3,675 crores (28,083
claims) towards industrial incentives, including entire inherited incentive backlog. Out of these, Rs
1,816 crores (26,597 claims) has been released as industrial incentives to MSME units. The ITE&C

Page | 11
Department has also disbursed Rs 31.12 crores as incentives to 68 IT/ ITeS and Electronics
companies since June 2014.

4.6 Investment promotion

The Government has worked in a concerted manner to build a new brand for Andhra Pradesh,
with the tagline ‘India’s Sunrise State’. Focused investment promotion activities were undertaken
through domestic and international roadshows across countries such as China, Japan, Singapore,
South Korea, UAE, UK etc. The State was also aggressively promoted in domestic events such as
World Food India, Textiles India, Make in India, India Chem, Aero India, as well as international
events such as World Economic Forum (Switzerland), Innoprom (Russia), Taitronics (Taiwan), Bio
USA, Make In India (Sweden) and Hannover Messe (Germany).

Partnership Summit: GoAP, in partnership with CII and DIPP, organized Partnership Summit and
Sunrise Andhra Pradesh Investment Meet, for 3 consecutive years – 2016, 2017 & 2018 - at
Visakhapatnam. The Summits were intended to showcase investment opportunities in Andhra
Pradesh, while highlighting investor friendly policies of Andhra Pradesh across various sectors.
Each of the Summits attracted delegates from 40 – 50 countries, witnessed cumulative
participation of over 10,000 delegates, and served as the platform for execution of cumulative
1,437 MoUs with committed investment of Rs 13.35 lakh crores (USD 200 billion) and committed
employment of 24.60 lakhs (2.46 million).

Promotion of Fintech sector: Further, to promote the Fintech sector, GoAP hosted Asia’s largest
Blockchain conference in 2017, which was attended by 1,000+ delegates from 20+ nationalities. In
the 2018 Vizag Fintech Festival, Fintech companies from across the globe pledged investment of
over Rs 500 crores. The conference hosted an exclusive group of corporates, startup
entrepreneurs, and decision makers, as well as government think tanks with a footfall of over 2,500
visitors. Over 1,400 students participated in the Finathon, a Fintech hackathon. Additionally, the ‘1
Million Dollar Challenge’ initiative was organized as a part of the Festival. This initiative was highly
successful in generating visibility for Andhra Pradesh among growth stage startups and investors
from around the world. To further its efforts to attract Fintech companies, a FinTech policy is being
drafted to cater to specific needs of the industry

4.7 MSME development

The MSME sector helps in industrialization of rural & backward areas, thereby reducing regional
imbalances, and assuring a more equitable distribution of income. Given contribution of the
MSME sector to the economy and employment generation, the State Government formulated
dedicated policies for development of MSME sector, MSME Parks, as well as for reviving stressed
MSME units through a Stressed Enterprises Policy 2018-23.

Page | 12
MSME Units established: Since 2014, there have been a total of 30,349 MSME units established
with total investment of Rs 14,292 crores and employment generated for 3.3 lakhs people.

MSME Credit flow: Between 2014-18, Rs 82,097 crores has been disbursed as credit to MSME
sector (organized & unorganized)

The Government is establishing MSME Parks in each of the 175 assembly constituencies. A
dedicated MSME Development Corporation is also set up to provide necessary advisory and
facilitation support on product quality, marketing, exports, warehousing and skill development for
the MSME sector.

4.8 Development of infrastructure towards economic growth

The Government is developing strong industrial infrastructure to ensure economic growth regions
are spread across the State.

4.8.1 Quality power supply for industry

For industry to flourish, it is critical to provide access to quality power supply. As on 31st May-
2014, State had a power deficit of more than 10%, and power supply was erratic. Under the
leadership of the Hon’ble Chief Minister, the State is now power surplus, and is providing 24*7
reliable, affordable and quality power to industry, which has greatly boosted investor confidence
in the State. This is clearly witnessed by the increase in consumption of power by industry sector
in the State, which has nearly doubled from 1,784 MU in 2014-15 to 3,321 MU in 2017-18.

4.8.2 Industrial land allotments

The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is vested with the objective of
identifying, developing and allotting suitable land parcels for industrial use, and developing
industrial Infrastructure for robust industrial growth in Andhra Pradesh. Since June 2014, APIIC
has allotted 14,213 acres of industrial land to 1,945 units.

4.8.3 Industrial Corridors

Andhra Pradesh is implementing two large Industrial Corridors:
i. Visakhapatnam – Chennai Industrial Corridor (VCIC)
ii. Chennai – Bengaluru Industrial Corridor (CBIC)

Visakhapatnam - Chennai Industrial Corridor (VCIC), part of East Coast Economic Corridor, is the
first coastal economic corridor in the country. VCIC covers more than 800 km of the state of Andhra
Pradesh’s coastline. Under VCIC, four industrial nodes are to be developed, namely
Visakhapatnam (7,680 acres), Srikalahasti (11,000 acres), Machilipatnam (12,145 acres) and

Page | 13
Donakonda (17,117 acres). Out of these, the Visakhapatnam and Srikalahasti industrial nodes are
being developed in Phase 1, and master planning for these two nodes has been completed.

The VCIC development program is being implemented through a loan of USD 615 million (Rs 4,170
crores) from the Asian Development Bank, while Government of AP, on its part, is investing USD
215 million (Rs 1,434 crores). Various industrial infrastructure, urban infrastructure, roads and
power projects are being executed under the VCIC program.

Under Tranche-1 of VCIC development, 13 infrastructure projects worth Rs 1,958 crores are being
undertaken by agencies such as Andhra Pradesh Industrial Infrastructure Corporation (APIIC), AP
Road Development Corporation (APRDC), Transmission Corporation of AP (APTRANSCO), and
Greater Visakhapatnam Municipal Corporation (GVMC).

Road Connectivity projects

Project Project
Sl No Project Details implementing Location cost Status
unit (Rs crores)
Total Cost 717.1
Widening and Work awarded; To
1 strengthening of APRDC East Godavari 377.5 be completed by
Samarlakota–Rajanagaram June 2019
Widening of road from
Neleballi to
Routhusuramala and DPR submitted to
2 APRDC Chittoor 56.3
formation of two lane road ADB
from SrikalahastiYerpedu
to Pallamala
Greenfield approach road Nakapalli DPR submitted to
3 APRDC 42.8
to Nakapalli Cluster (Visakhapatnam) ADB

Widening of 6.1 km road

from ThimmajiKandriga to DPR submitted to
4 APRDC Chittoor 59.0
NH-5 (AH-45) near Pandlur ADB
Railway gate

Under execution;
Internal infrastructural (viz) Naidupeta
5 APIIC 181.5 To be completed
roads, storm water drains (Nellore)
by March 2019

Page | 14
 Utility projects
Project
Project cost
Sl No Project Details implementing Site Status
(Rs crores)
unit
Total Cost 1,240.9
Augmenting power
Under
distribution capacity for
execution; To
1 meeting Industry demand at APTRANSCO Visakhapatnam 276.9
be completed
Kapuluppada, Nakkapalle /
by June 2019
Chandanada and Achutpuram
Augmenting power
Under
distribution capacity for
Chittoor, execution; To
2 meeting Industry demand at APTRANSCO 337.8
Nellore be completed
Rachagunneri, Naidupeta and
by March 2020
Yerpedu
Under
Naidupeta execution; To
3 1 MLD CETP at MPSEZ APIIC 130.0
(Nellore) be completed
by July 2019
Under
Naidupeta execution; To
4 Bulk water supply APIIC 75.2
(Nellore) be completed
by June 2019
Distribution Network Under
improvements for NRW execution; To
5 GVMC Visakhapatnam 390.1
reduction and 24x7 supply in be completed
GVMC area. by Dec 2019
Technical
Watershed Development and
6 GVMC Visakhapatnam 9.5 evaluation of
Rejuvenation of Mudasarlova
bids
Developing a 3 MW Solar Contract
7 Energy Park at Mudasarlova / GVMC Visakhapatnam 14.5 awarded in Oct
Meghadri Gedda 2018
Technical
Converting 3 streets into non-
8 GVMC Visakhapatnam 7.0 evaluation of
vehicular zone
bids

Page | 15
Under Tranche-II of the VCIC program, projects worth Rs 2,846 crores have been sanctioned:

Sl. Estimated Value

Description of the Sub – Project Sector
No USD Mn INR Cr.
Chittoor Node – Chittoor South Cluster

Providing water supply to Industrial Clusters /

1 Utility 104.50 689.70
NIMZs in southern region (Chittoor & Nellore)
Development of Major infrastructure and utilities in
2 Utility 100.00 660.00
Start-up area of 1335 acres
Visakhapatnam Node – Atchuthapuram Cluster
Widening to 4 lane of Atchuthapuram - Anakapalli
3 Road 26.06 172.00
Road

4 95MLD Bulk Water Supply Utility 46.00 303.60

Development of Major infrastructure and utilities in

5 Utility 30.00 198.00
Start-up area of 610Acs.
Visakhapatnam Node – Nakkapalli Cluster
Development of Major infrastructure and utilities in
6 Utility 57.00 376.00
Start-up area of 975Acs.
Visakhapatnam Node
Internal infrastructure development in AP Med Tech
7 Utility 16.07 106.06
Zone (AMTZ)
TOTAL 431.21 2,846.00

Chennai – Bengaluru Industrial Corridor (CBIC): Under CBIC, there are three industrial nodes to be
developed, namely Krishnapatnam in Nellore district, Orvakal in Kurnool district and Hindupur in
Anantapur district. Out of these 3 nodes, the Krishnapatnam node (15,975 acres) has been taken
up for development. Master planning of the node has been completed. CBIC has been included
under National Industrial Corridor Development and Implementation Trust (NICDIT).

4.8.4 Industrial parks and clusters

The Government has been committed to ensure equitable and decentralized industrial
development in the State. Through spread of industrial and MSME parks, Government is keen to
promote industry development across the State, including the backward districts. The

Page | 16
Government is also developing various large industrial and sector-specific industrial parks &
clusters.

i. Food Parks: AP is the first state in India to sanction food parks with State Govt. funding (5
Mega Food Parks and 5 Integrated Food Parks). Each Food Park will have core and enabling
infrastructure with an average investment of Rs 150 crores for processing various
commodities grown in the area. Integrated Food Parks are under construction in
Vizianagaram, Kadapa and Chittoor districts. One Mega Food Park is operational in Nellore
district, and another Park is under construction in Prakasam district. The remaining Food
Parks are in the process of obtaining licenses.

ii. Electronics Manufacturing Clusters (EMC): To boost the electronics ecosystem, GoAP has
adopted a cluster development approach. The State has set up two (2) clusters for
electronics manufacturing at Tirupati (EMC-1 and EMC-2 catering to mobile, consumer
electronics and automotive electronics), and another EMC was set up in Nellore by a private
company (Sri City).

Further, the State is developing ‘Silicon Corridor’ near Tirupati, with the aim to provide
impetus to the Electronics ecosystem in the State. The Silicon Corridor will have essential
infrastructure, including road connectivity to all major cities, international airport, and
proximity to ports, developed local city infrastructure, and industry 4.0 skilled work force.

iii. MSME Parks: Government is establishing state-of-the-art MSME Parks with plug-and-play
facilities in each of the 175 assembly constituencies. Currently, land is identified for MSME
parks in 98 constituencies. Out of these, 31 MSME Parks are being developed on priority
basis. The total area under possession for these 31 MSME Parks is 1,317.97 acres, with
plotted area of 635.41 acres (7,246 plots). Over 2,000 applications have already been
received within 3 weeks of inviting applications, and allotments are under progress.

iv. Orvakal Mega Industrial Hub, Kurnool: The Mega industrial hub in Orvakal is being
developed over a land extent of 12,203 acres with all infrastructure facilities. Companies
such as Jairaj Ispat have already been allotted land for their project.

v. Mega Seed Park, Kurnool: Government is constructing a state-of-the-art mega seed park,
leveraging technical know-how of Iowa University, USA, at Thangadancha in Jupadu
Bungalow Mandal in Kurnool district. The Park is spread over an extent of 650 acres, and
will attract investments from reputed seed companies.

Page | 17
 vi. Koparthy Mega Industrial Park, Kadapa: Government is developing Mega Industrial Park at
Kopparthy in an extent of 6,553 acres. Tremag Alloys, which is setting up a manufacturing
unit for magnesium ingots, has already been allotted land at the Park

vii. MSE Cluster Development: Under the MSE-CDP program, the State is implementing eight
Industrial Infrastructure Development projects worth Rs 42.60 crores, across Gandrajupalli
(Chittoor), Peddapuram (East Godavari), Singarayakonda (Prakasam), Vedayapalem
(Nellore), Kopparthi (Kadapa), Amudalavalasa (Srikakulam), Kanuru (Krishna) and
Visakhapatnam.

Four Common Facility Centre projects worth Rs 41.43 crores have been sanctioned at
Guntur (steel fabrication and beverages cluster), Nellore (gold) and Chittoor (printing
cluster)

viii. Fintech Valley: With limited resources available to create a strong IT/ITeS ecosystem in
Andhra Pradesh, the Government has laid focus on promoting the fintech sector. The
Fintech Valley in Visakhapatnam, is creating an ecosystem to help identify and nurture
financial technology institutions and start-ups. The objective is to bring together the fintech
community and catalyze the sector’s growth by hosting global business competitions and
awarding innovation.

4.8.5 Industrial water supply and CETP facilities

The Government is working on supplying water to industrial clusters in Hindupur, Orvakal and
Chittoor district. Around 10 TMC of water is planned to be supplied to these industrial clusters.

Common Effluent Treatment Plants (CETP) are currently under execution at Atchutapuram (1.5
MLD at cost of Rs 72 crores) and Naidupeta (1 MLD at cost of Rs 31.4 crores). Further, CETPs have
been planned in industrial areas of Srikalahasti South (1.2 MLD at cost of Rs 44.8 crores),
Nakkapalli (1.5 MLD at cost of Rs 66 crores), Rambilli (1.5 MLD at cost of Rs 58 crores) and
Mallavalli (0.3 MLD at cost of Rs 4 crores). A Sewage Treatment Plant (STP) is planned in Tirupati
(1.6 MLD at cost of Rs 4.39 crores).

4.9 Tourism sector development

Campaigns: The Government has leveraged various forms of activities like events and campaigns
to promote both domestic as well international tourism in the state to boost economic
development in the sector. Some of the major marketing campaigns undertaken by the State
include:
i. Let’s Vizag Campaign: To promote Vizag as an ideal summer destination
ii. Konaseema Monsoon Campaign: To promote Konaseema as a family holiday

Page | 18
 destination, and experience the backwaters of the state.
iii. Festive AP Campaign: To promote festivals celebrated in the State

Festivals: To increase tourism footfalls, the Government undertook aggressive marketing and
branding of the State across B2B and B2C Fairs. Additionally, 21 festivals were conducted on a
large scale:
i. Amaravati F1H2O Grand Prix, Vijayawada
ii. Amaravati Air Show, Vijayawada
iii. Social Media Summit & Awards, Vijayawada
iv. Tour De Heritage – Across the state with closing ceremony at Visakhapatnam
v. Amaravati Shopping festival, Vijayawada
vi. Buddha Jayanthi Festival, Amaravati
vii. Flamingo Festival, Nellore
viii. World Wind Festival, Visakhapatnam
ix. International Kuchipudi Convention, Vijayawada
x. Lepakshi Festival, Ananthapuram
xi. Visakha Utsav
xii. Full Moon Punnami Orvakal Mega Festival, Kurnool
xiii. Godavari Dance and Lantern Festival, Kakinada
xiv. AP Crafts Mela, Tirupati
xv. Sounds on Sand, Visakhapatnam
xvi. Araku Balloon Festival, Araku Valley
xvii. Amaravati Theatre Festival, Vijayawada
xviii. AR Rehman live concert, Kakinada
xix. Gandikota Festival, Kadapa
xx. The Indian Performing Arts Show, Visakhapatnam
xxi. Konaseema Sankaranti (Konaseema Utsav)

Promotion of Andhra cuisine: The State organized 3 regional level culinary competitions in
Tirupati, Vijayawada and Visakhapatnam in 2016, and extended the competitions across the State
through “The Hindu” under the “Our Taste Our State” initiative in 2017 and 2018. Fourteen food
festivals were organized across the State. A book on “Recipes of Andhra Pradesh” was published
containing 30 recipes of the state, which were identified and altered by NIN (National Institute of
Nutrition), to suit nutritional and health requirements.

4.9.1 Tourism infrastructure

Development of tourism spots and circuit development: The Government undertook development
of various destination development projects through expenditure of Rs 148 crores from CFA funds,
and Rs 122 crores from SFA funds. Some of the prominent projects include:

Page | 19
 i. Development of Kakinada Hope Island Konaseema as world-class coastal & Eco-
Tourism circuit in Andhra Pradesh under Swadesh Darshan Scheme
ii. Development of Coastal Tourism Circuit in Nellore district under Swadesh Darshan
Scheme
iii. Upgradation of approach roads to heritage sites and development of heritage walk
at Amaravati
iv. Development of Tribal Eco-Tourism circuit at Araku Valley under Swadesh Darshan
v. Development of Erramattidibbalu, a notified national Geo-heritage Monument
vi. Development of Belum Caves
vii. Beach development at Dindi, Antarvedi, Uddanam, Konada
viii. Development of Ropeway, Jagatpalli resort at Srikakulam District
ix. Kondapalli Fort project, including open air museum, primary amenities for
accommodation and food etc.
x. Naval surveillance aircraft TU-142, one of the fastest turboprop aircraft in the world
decommissioned by Indian Navy, has been converted into museum in
Visakhapatnam

Tourism signages: To provide an efficient information system, coordinated tourism oriented

directional signages are being put up, to meet requirements of tourism operators as well as
travelling public. Currently, siignages on NH-16 are completed, and works on 4 more identified
State and National Highway road stretches are under progress.

Rural tourism: Andhra Pradesh Tourism Authority initiated Rural Tourism Development with a
brand name PROJECT – SANSKRITI with an objective of promoting villages which are specialized
for art, culture, handicrafts, Kalamkari and handlooms. The four clusters identified under the
project are:-
i. Ananthapuramu Hub: Lepakshi, Veerapuram, Nimmalakunta
ii. Chittoor Hub: Srikalahasthi, Madhavamala, Venkatagiri
iii. Chittoor Hub: Prakruti Vanam Agro Farms, Horsley Hills, Angallu
iv. Rajahmundry Hub: Narasapur, Dindi, Uppada

4.10 Economic cities

The Government has planned to develop Economic Cities encompassing economic, housing,
commercial and social activities, across the State. Such clusters will be developed based on
inherent strengths and positioning of each district.
i. Jakkampudi Economic City: Jakkampudi Economic City (JEC), the first of the 100 Economic
cities has been grounded, with land levelling being completed, and footings/foundation in
progress. The first block is set to be completed by January 2019, and the first phase is set
to be completed by June 2019. JEC has a confirmed demand for 29.5 lakh sq.ft and has

Page | 20
 already received firm commitments for 3.5 lakh sq. ft. Two phases of allotment has also
been completed. Once completed, JEC is going to accommodate ‘light’ and ‘green’
industries, generate jobs for 3,000 people and create demand for 6,500 houses.

ii. Private Economic cities: A total of 6 developers have come forward and submitted
proposals for 6 economic cities. These cities are expected to attract an investment of Rs.
22,000 crores, create employment for more than 1.60 lakh people and develop more than
90,000 housing facilities. These economic cities are set to be completed in 18-24 months.

iii. Pharma City, Orvakal: Orvakal in Kurnool is planned as a Pharma city in phase 1. Phase 2
of Pharma city is planned in Prakasam district. Pharma cities are expected to attract an
investment of Rs 10,000 crores and create more than 15,000 jobs. At present nearly 100
companies are ready to setup MSMEs in phase 1.

5. Skill development
To complement efforts on industrialization, economic development and driving large-scale
employment, Government set up Andhra Pradesh State Skill Development Corporation (APSSDC)
and Society for Employment Generation and Enterprise Development in Andhra Pradesh
(SEEDAP) to impart skill development trainings and ensure that skill base in the State are work-
ready.

Similarly, the International Institute of Digital Technologies (IIDT) and Andhra Pradesh Information
Technology Academy (APITA) have been established to provide industry ready talent pool,
equipped with knowledge of latest technologies.

5.1 Skilling initiatives by APSSDC

Since 2014, APSSDC has provided training to 8.66 lakh unique beneficiaries, across social welfare
& tribal welfare schools, degree colleges, engineering colleges etc.
Students Unemployed Entrepreneurship Up-skilling (for TOTAL
youth through Development those who are
short term Program / already in job)
trainings Competitive exams
programs coaching
Trainings 7,42,309 77,495 19,677 26,914 8,66,395

Page | 21
Unemployed Youth: To address the need of unemployed youth, placement linked training
programs such as skilling for tribal youth (YTC), SCs, Minorities and PMKVY are being
implemented. So far, 77,495 were trained and 34,269 placed under these training programs.

Tribal youth: Structured programs are offered through 23 YTCs of TRICOR by skilling and
providing placement assistance to ST youth. So far, 20,406 have been trained and placed 10,840
under these YTCs.

SC, BC and Minority Training Programs: Special training programmes have been planned for SC
and Minority youth of the state, which are placement linked with standardized certification
process. So far, 12,895 have been trained with 70% placements.

Number of Placements facilitated so far: (2015-2018)

Through various
Through Placement Through job
courses for final year
linked short term facilitation Activities
Degree College/ TOTAL
skill development (job fairs,
Engineering College
courses udyogaratham etc.)
Students

Students 48,428 - - 48,428

Unemployed
- 34,269 95,952 1,30,221
youth
TOTAL 48,428 34,269 95,952 1,78,649

APSSDC plans to scale up programmes with focus on certification courses for improving
employability skills in Information Technology offered by global companies such as Google,
Amazon, Dassault, HP, Udacity, Adobe, Autodesk etc. Further, certification courses in
finance/accounting are being offered directly through major companies such as ZOHO, Coursera,
Tally, Insta EMI, NSE etc.

Tie-ups with corporates such as Siemens and Dassault Systems is also ensuring strong skills are
being developed.
i. Siemens state-of-Art training centres with a capacity to impart industry relevant skills to 1
lakh students over 3 years has been launched by setting up 6 Centres of Excellence (CoE)
and 34 Technical Skill Development Institute (TSDI) in 40 identified engineering and
polytechnic colleges. So far 67,246 students have been trained.
ii. Virtual learning 3-D Experience Centers have been set up in ANU, JNTU Anantapuram, AU,
SVU and 53 Engineering Colleges, in partnership with French multinational Dassault

Page | 22
 Systems, to train students in design, manufacturing and analysis in the domains of
aerospace, automotive and ship-building.

APSSDC is also working closely with various industries such as Kia Motors, Ashok Leyland, Asian
Paints, Jain Irrigation Systems, Apollo Tyres etc. to understand their manpower requirements and
assist them with training and recruitment.

5.2 Skilling initiatives by IIDT

International Institute of Digital Technologies (IIDT) has been setup in Tirupati, to offer courses
on emerging technologies such as Cyber Security and Data Analytics. The first batch of IIDT
graduated in 2018, and presently the institute is catering to its second and third batches.

5.3 Skilling initiatives by APITA

Andhra Pradesh IT Agency (APITA) has conducted numerous trainings and job fairs across the
State. It has also designed and implemented the LEAP (Look for Employment in Andhra Pradesh)
program, with the aim of providing immediate impetus to employment generation in the State. In
FY 2018-19, APITA conducted 73 LEAP drives, which have witnessed registration of 85,860 and
12,973 offers being rolled out.

As a part of LEAP, few of the eminent industry players who have participated include Mphasis,
Byjus, Policybazaar, Flipkart, Zoho, Paytm, Walmart, Medplus, Concentrix, Patra Corp, ICICI Bank,
Kotak Mahindra Bank, Foxconn, Muthoot Group, Mahindra Group etc. On similar lines, APITA has
trained 9,252 students in 11 courses such as animation training, Autocad, Oracle Database etc.

5.4 Skilling initiatives in Tourism sector

To create a competent and specialist pool of employable youth in the tourism industry, the
Government is focusing on developing training infrastructure and tourism specific courses.

The State Institute of Hotel Management Catering Technology & Applied Nutrition, Tirupati is fully
operational, with intake of 120 students. SIHM at Kakinada is currently under construction. The
Indian Culinary Institute has started undergraduate courses on culinary programs at SIHM
Tirupati, while its permanent campus is under construction. The Indian Institute of Tourism and
Travel Management (IITTM), Nellore is functional with both undergraduate and postgraduate
courses being offered. Around 4,050 trainings have been completed in courses for tourism,
hospitality & culinary trainings (1,230), guides (600) and cab drivers (2,220).

5.5 Mukhyamantri Yuvanestham

Providing livelihood to the youth of the state is at the core of the Hon’ble Chief Minister’s agenda
of economic development. The “Mukhyamantri Yuvanestham” program was rolled out in October

Page | 23
2018 in order to provide financial support of Rs 1,000 monthly allowance to educated youth in the
State, while they find employment or start their own venture. The scheme has been designed to
upgrade the skillsets of unemployed youth to make them employable workforce for the industry,
or become entrepreneurs.

The scheme also provides internship /apprenticeship/ ‘on the job’ training in a public sector or a
private sector enterprise in conjunction with the GoI Apprenticeship Scheme. Additionally, the
scheme also helps youth in preparing and facing competitive examinations conducted by various
recruitment agencies. Similarly, the scheme helps youth in setting-up of suitable self-employment
ventures by providing financial assistance through respective corporations and commercial banks.

APSSDC identified 522 colleges/centres for imparting Employability Skills Enhancement Module
(ESEM) of 40 hours of duration. Domain training will be facilitated by APSSDC post the completion
of the ESEM module. Efforts are under progress to start Apprenticeship/Internship/On Job training
in coordination with Labour and Industries Department. The Industries Department has planned
to campaign at district level to ascertain data of industries available, trades, intake etc., in
consultation with some of the companies to start the programme shortly.

As of 26th December 2018, more than 3.3 lakh youth have enrolled under the Scheme, and have
been paid monthly allowance of Rs. 1,000 each. The total amount of disbursement by the State
Government from the launch of the Scheme till 26th December 2018, is Rs 81 crores.

6. Achievements
6.1 Industry growth
Based on the efforts of the State Government, growth of industry and manufacturing sector in AP
has outpaced industrial growth in India over past 3 years. This is in contrast to the 10-year period
prior to 2014 when industrial growth in AP lagged behind India.

Growth rates of
Growth rates of industrial sector
manufacturing sector
(constant prices 2011-12)
(constant prices 2011-12)
India AP India AP

2017-18 4.40% 8.49% 2017-18 4.60% 8.36%

2016-17 5.60% 7.40% 2016-17 7.90% 8.56%

2015-16 8.80% 9.61% 2015-16 10.80% 13.89%

Page | 24
6.2 Tourism growth
Andhra Pradesh saw significant increase in tourist footfall since the state bifurcation. This growth
was built upon a focused strategy to promote the State and its varied tourist locations comprising
of pristine beaches, hill stations, scenic backwaters and religious locations. Increase in tourist
footfalls is also a result of aggressive marketing and branding by GoAP across B2B and B2C Fairs
and also conduct of 21 large scale festivals.

State 2013 2014 2015 2016 2017 2018

(Till Nov)

Tourist Footfall 9.80 9.33 12.18 15.35 16.57 16.90

(in crores)

% Growth -4.81 30.48 26.00 8.00 15.00

6.3 Ranked number 1 on EODB

The State Government’s commitment to provide the best business environment in India is evident
from the consistency in rankings earned by Andhra Pradesh over the past 3 years. In 2015, AP was
ranked 2nd behind Gujarat. Today, Andhra Pradesh is ranked No. 1 amongst all Indian states on
ease of doing business for two consecutive years (2016 and 2017) by DIPP and World Bank.

Industry feedback: During this year’s rankings, a key component was to incorporate industry
feedback on the efficacy of the business reforms undertaken by states. AP scored highest marks
(86.5%) based on feedback from industry, which is a testament to the confidence and strong faith
of the industry in the efforts of the Government.

6.4 Investments and employment

The Government has taken significant steps to attract private sector investments and generate
employment opportunities across the State. Based on the intensive promotion activities, the
Government has been able to attract over 2,622 large & mega investment projects cutting across
various sectors, with committed investment of Rs 15.48 lakh crores, and committed employment
of 32.35 lakhs.

Page | 25
These projects are being facilitated and tracked by 18 departments/agencies of the State
Government. A State Investment Tracker has been put in place to monitor progress of projects
across various stages of approvals and implementation.

Out of these, 810 large & mega projects have already gone into production, with committed
investment of Rs 1.77 lakh crores, and committed employment of 2.51 lakhs. Further, 1211
projects, with committed investment of Rs 5.27 lakh crores and committed employment of 7.66
lakhs, are in stages beyond civil works6. Further, since June 2014, the MSME sector, with 30,349
units have provided employment to 3.3 lakh people. For mega projects such as Kia Motors, the
Government has stipulated the condition of atleast 80% employment being provided to local
people of the State, which will greatly boost local employment.

Various agencies of the State Government such as APSSDC, APITA, Youth Affairs, are investing
efforts in identifying, skilling and placing youth in the industry. Tie-ups with Corporates are also
helping in customizing courses to meet requirements of the industry. APSSDC has helped in
placements of 1.78 lakh youth already, and the APITA has facilitated roll out of 12,973 job offers.
The Mukhyamantri Yuvanestham program will further support unemployed youth, and provide
opportunities for skill development and job creation.

Many focus sectors of the State have witnessed significant progress in terms of investment, and
are providing opportunities for job creation.

6.4.1 Automotive sector

Automobile sector in the state has attracted proposals worth USD 3.7 Billion (Rs 24,600 crores),
over the past 4 years. Andhra Pradesh is fast developing into a large Automobile manufacturing
hub.

Isuzu motors, located in Sri City, has been setup with committed investment of Rs 1,500 crores,
and is estimated to create employment for about 1,200 people. The plant has annual production
capacity of 50,000 vehicles. Isuzu’s vendors such as NHK Springs, Tata Toyo, ALF Engineering etc.
have started operations, and companies such as Mahabal Metals, Wheels India, RSB
Transmissions, are under development around the Isuzu Motors plant location.

Last year, the Government released the “Backward districts Ultra Mega integrated Automobile
Policy” to attract investments of over USD 1 billion. This policy helped attract one of the largest
FDI investments in recent years in India, in form of a USD 2 billion investment from Kia Motors,
along with its subsidiaries and ancillaries, in Anantapur district. The plant, with production

6
State Investment Tracker; Data as on 21st December 2018

Page | 26
capacity of 3 lakhs vehicles per year is expected to generate permanent employment for over 4,000
people and temporary employment for over 7,000 people. At the same time, Kia’s vendors are
going to generate employment for more than 6,600 people. Construction of the Kia Motors facility
is progressing at a fast pace, and is expected to start trial production in January 2019.

Additionally, the State has been able to attract investments in the automotive sector from marquee
companies such as Apollo Tyres, Ashok Leyland, Bharat Forge and Hero group. The State
Government has also released a dedicated ‘Electric Mobility Policy’, and is geared up to attract
investments in the electric mobility sector.

6.4.2 Food Processing

Given the strong production capabilities in the State across agriculture, horticulture, aqua and
dairy, Andhra Pradesh had high potential to become a food processing hub. Through a dedicated
and focused approach, the State has seen 202 food processing units going into production, and
125 units under various stages of construction, with realized investment of Rs 6,278 crores and
committed employment of 57,250 personnel. Some of the marquee investments that have gone
into production in the food processing sector include Emami, Mondelez, Kellogg’s, Pepsi,
Nekkanti, Big Basket, Sumeru, Capricorn, Lavazza, Avanti Seeds, Podaran and Everton. Further,
the sector has a strong pipeline with investments from companies such as Patanjali, Jain
Irrigation, Parle, Jersey, Indus Coffee, Future Group, Continental Coffee, International Flavours &
Fragrances, Godrej, SH Group, Tata Foods, ITC, ConAgro and Manpasand, amongst many others.

6.4.3 IT & Electronics

Since bifurcation, the State is tracking 376 leads in the IT/Electronics sector, with committed
investment of Rs 25,461 crores, and estimated employment opportunities for 2.20 lakh people.
Some of the marquee IT/ITeS companies that have setup operations in the State include Conduent,
Pi Data Centers, Franklin Templeton, Wipro Technologies, Miracle Software etc., with HCL in the
pipeline.

Efforts of the Government in enabling investments in electronics sector continue to bear

dividends. The State has gained significant traction in mobile manufacturing sector. Today, one
in every 5 mobile handsets produced in India is made in Andhra Pradesh, all centered around
Tirupati and Sri City. Over 3-3.5 million phones are produced every month in AP today.

Foxconn (Rising Star Mobiles) has setup their facility in Sri City, where brands such as Xiaomi,
Gionee, One Plus, Lumina, Asus and InFocus are now manufactured. At this facility, more than
13,000 people, primarily women, have been provided employment. Celkon Mobiles has also
started production near Tirupati, with capacity to produce 1 million smartphones/tablets every

Page | 27
month. Flextronics, the world’s 3rd largest electronics company has set up a manufacturing facility
in Sri City to build a diverse range of intelligent products. Dixon Technologies, one of the largest
home grown electronics companies is producing LED TVs, washing machines, LED lighting
products and CCTVs at its plant in Tirupati.

Further, companies such as Reliance, TCL, Voltas have committed to setup operations in the State.
GoAP is confident of securing investments worth Rs 8,750 crores by 2019; including investment
from PSA, Sunny Optical Technologies, Mages, East India Company and second phase of
Foxconn. These investments are expected to create over 1 lakh jobs in Tirupati, which the State is
developing as the ‘Silicon Corridor’ of India.

6.4.4 Pharmaceuticals
Andhra Pradesh is among top 3 states in Pharmaceuticals exports. The State is home to 192
pharmaceuticals companies, with strong concentration in districts of Visakhapatnam,
Vizianagaram and Srikakulam. Post bifurcation, investments in pharmaceuticals sector have
picked up pace in the state. The sector has seen investment proposals worth more than Rs 21,000
crores.

The Government has so far received Rs 21,573 crores worth investment proposals, which can
potentially generate employment for over 0.43 lakh people in the state. Out of these investment
proposals, Rs 5,180 crores worth of investments have gone into production, generating committed
employment for 12,217 people. Additionally, Rs 12,563 crores of investment are in advanced
stages of implementation, and will generate 13,144 jobs.

Some of the marquee investments in the pharmaceuticals sector that have gone into production
include Hospira Healthcare, Dr. Reddy’s labs, Lupin, Laurus Labs, Aurobindo Pharma, West
Pharma, and companies such as Divi’s Labs and Natco Pharma etc. are in the pipeline. Out of the
total proposals received, proposals worth more than Rs. 17,000 crores are in advanced stages of
development, and have potential to create employment for more than 25,000 people.

6.4.5 Textiles
Andhra Pradesh is amongst the largest producers of cotton in India, with around 19 lakh bales per
year. It is also the 2nd largest raw silk production in India (4,730 metric tonnes). Additionally, the
presence of a well-developed spinning and processing sector in the state, makes Andhra Pradesh
attractive for various lines of activity such as garments, knitting apparel, fabric manufacturing,
spinning, jute Products, mattresses, cotton products etc.

Page | 28
The Government has so far received investment proposals worth Rs 16,370 crores, which can
potentially generate employment for over 1.72 lakh people in the state. Out of these investment
proposals, Rs 2,381 crores worth of investments have gone into production, generating committed
employment for 45,367 people. Additionally, Rs 2,891 crores of investment are in advanced stages
of implementation, and will generate 35,662 jobs.

Given the inherent strengths of the textile ecosystem in the state, the State has attracted number
of marquee investments in Textile sector since June 2014 including Toray, Texport, Mohan
Spintex, Indian Design, Shahi Exports, Sri Govindaraja Textiles, SAR Denim, Kallam Spinning
Mills, Page Industries, (Jockey), Arvind Group, Nisha Designs, Guntur Textile Park, Tarakeswara
Textile Park etc.

6.4.6 Tourism
The AP Tourism Department is currently tracking 198 investment projects across sub-sectors such
as hotels, resorts, amusement parks, adventure activities, water sports etc. with investment
potential of Rs 15,282 crores and employment potential of 82,692. Out of these, 57 projects with
committed investment of Rs 1,792 crores have started operations with committed employment of
10,723. A cumulative total of 97 projects with investment potential of Rs 5,110 crores have started
civil works.

Some of the marquee tourism projects include Novotel Hotel in Vijayawada, Holiday Inn and Taj
Gateway in Tirupati, ITC My Fortune in Guntur, JW Marriott and Sun Ray Resort in Visakhapatnam.

6.5 Awards and Recognition

6.5.1 Industries
i. AP has been ranked number 1 on Ease of doing business amongst all State as per
assessment conducted by DIPP and World Bank in 2016 & 2017
ii. Skoch Order of Merit Award, APIIC GIS for Industrial Land Enquiry (AGILE), December
2017
iii. Skoch Silver Technologies for Growth Award, APIIC GIS for Industrial Land Enquiry
(AGILE), December 2017
iv. Skoch Order of Merit Award, Third Party Monitoring of Industrial projects, May 2018
v. Skoch Platinum Award, Third Party Monitoring of Industrial projects, May 2018
vi. Skoch Order of Merit Award, End to End ICT-based transformation, September 2018

6.5.2 IT & Electronics

i. MeeSeva - Nihilent e-Governance Awards received on 3rd Dec’15

Page | 29
 ii. Meeseva - Skoch order of merit award received on 22nd Sep’15
iii. MeeSeva App - Digital Trailblazer award received on 30th Sep’16
iv. MeeKosam - Skoch order of merit award received on 16th Dec’16
v. MeeSeva - Gems of Digital India Awards -2017 received on 7th Jun’17
vi. CORE Dashboard - Gems of Digital India Awards -2017 received on 7th Jun’17
vii. MeeSeva - Porter Prize Strategy Award 2017
viii. APITA - Autodesk Business Appreciation Certificate award in 2015
ix. APITA - NI LabVIEW Academy School award in 2016
x. ePragati - Open Group India Conference Awards - 2017
xi. Hon’ble Minister of IT - BW Digital India Awards – Digital Leader of the Year, 2018
xii. ITE&C Department - Skoch Awards - State ICT of the Year Award under National
Significance, 2018.
xiii. ITE&C Department - Skoch Gold Award 2018
xiv. MeeSeva, eOffice, eCabinet, eProcurement - 4 Gold Skoch Awards for Individual
Projects, 2018

6.5.3 Tourism
i. Best State for Comprehensive Development of Tourism Award from GoI, received
twice consecutively in 2017 and 2018.
ii. Awarded as “Emerging Tourist Destination” by PATWA during ITB, Berlin.
iii. “Riverine Destination of India - Konaseema” award from Safari India.
iv. Most promising destination award received from Travel and Trade Fair at Mumbai.
v. Pilgrimage destination of the year award received from India International Travel Mart
at Kolkata.
vi. Tourism Policy Leadership Award was received from Fourth edition of the World Travel
and Tourism Council – India Initiative HVS state ranking survey.
vii. Best Print Promotional Award for Tourism publications - from BLTM
viii. Best Heritage State award from IITM (Hyderabad)
ix. India's Favourite City, Visakhapatnam 2017” award from Holiday IQ - India's Largest
Community on the eve of Better Holiday Awards.
x. “Wellness Destination of the Year 2017” award from India International Travel Mart
(IITM) in Bangalore.
xi. “Hill Station Resort of the Year 2017” award from India International Travel Mart (IITM)
at Kochi.
xii. “Best Video for Tourism Promotion by State Government” award by IATO at 33rd
Annual Convention in 2017.
xiii. Partnership Excellence Award” from 21 Gun Salute on the eve of 7th 21 Gun Salute
International Vintage Car Rally & Concours Show.

Page | 30
 xiv. “Best Managed Tourist Destination” award from International Tourism Conclave &
Travel Awards (ITCTA) towards the Award for Excellence in Tourism.
xv. “Religious Destination of the Year for 2017” from IITM (Mumbai)
xvi. Andhra Pradesh Tourism received “Award for Excellence” from OTM - Mumbai on 20
Jan 2018.
xvii. Andhra Pradesh Tourism received “Award for Beach Destination of the Year-
2017” from IITM - Kolkata on 25 Feb 2018
xviii. Andhra Pradesh Tourism received “India's best Tourism Destination Award” at TTE
(Mumbai) on 11 May 2018

6.5.4 Skill Development

i. AP has been awarded the Best State in Skill Development by ASSOCHAM for last two
years (2017 & 2018).
ii. AP secured No.1 position with ‘highest population with employability skills’ as per CII’s
India Skill Report-2019.
iii. Out of 15 members who participated at the National level skill competition in 10 skills,
3 candidates have received Gold and Silver Medals. 2 candidates in RAC and Mobile
Robotics skills are under training by NSDC to compete for the World Skills Competition
in Kaizan, Russia.
iv. Under the University Innovation Fellow Programmes offered by Stanford University,
258 students from Andhra Pradesh have been selected out of 679 participations from
30 countries across the world.
v. Highest number of youth (30,000) trained in Amazon Web Services across all states in
India
vi. 25,000 students have been covered in Entrepreneurship and Venture Development
Programs offered by Northeastern University, Boston, USA. 32 Ideas were converted
into startup companies.
vii. 500 students trained in Gaming & Animation course offered by Kajaani University
Finland and 13 games developed by trainees have been published in Google Play
Store.

Page | 31
7. Glossary

Abbreviation Full Form/ Definition

ADB Asian Development Bank
AP Andhra Pradesh
APIIC Andhra Pradesh Industrial Infrastructure Corporation
APITA Andhra Pradesh Information Technology Agency
APRDC Andhra Pradesh Road Development Corporation
APSSDC Andhra Pradesh State Skill Development Corporation
APTRANSCO Transmission Corporation of Andhra Pradesh
CBIC Chennai – Bengaluru Industrial Corridor
CDP Cluster Development Programme
CETP Common Effluent Treatment Plant
DMIC Delhi-Mumbai Industrial Corridor
DIPP Department of industrial Policy & Promotion
EODB Ease of doing business
ESEM Employability Skills Enhancement Module
GoAP Government of Andhra Pradesh
GoI Government of India
GVMC Greater Visakhapatnam Municipal Corporation
IIDT International Institute of Digital Technologies
IITTM Indian Institute of Tourism and Travel Management
JEC Jakkampudi Economic City
LEAP Look for Employment in Andhra Pradesh
ITE&C Information Technology, Electronics & Communication
MoU Memorandum of Understanding
MSME Micro, Small, Medium Enterprise
NICDIT National Industrial Corridor Development and Implementation Trust
PSDG Public Service Delivery Guarantee
Society for Employment Generation and Enterprise Development in
SEEDAP
Andhra Pradesh
SDB Single Desk Bureau
SDP Single Desk Portal
State Institute of Hotel Management Catering Technology & Applied
SIHM
Nutrition
VCIC Visakhapatnam-Chennai Industrial Corridor

Page | 32