Contents List of Exhibits

List of Exhibits 4
Exhibit 1: Sunrise State of Andhra Pradesh: Key Milestones
Preamble 5
Exhibit 2: Structure of the Andhra Pradesh Infrastructure Mission
List of Abbreviations 6
Exhibit 3: Per Capital Income (Comparative Scenarios)
Andhra Pradesh Infrastructure Mission 7
Exhibit 4: An Accelerated Growth Scenario
Laying the Foundation for the Sunrise State of Andhra Pradesh 7
Exhibit 5: Sectoral Share of Andhra Pradesh GSDP
Mission Objectives 8
Exhibit 6: Integrated Functioning of the Transformational Catalysts
Mission Functions 8
Exhibit 7: Infrastructure in China – Driving Sustainable Growth
Andhra Pradesh Infrastructure Mission Structure 8
Exhibit 8: Singapore - Asia's Global Logistics Hub
Targets 11
Exhibit 9: Industrial Innovation in Taiwan – Asia's Silicon Island
Shifting the Growth Trajectory 11
Exhibit 10: Integrated Approach towards Port Led Development
Defining Developed Economies 11
Exhibit 11: Phased Strategy for Infrastructure Development
Economic Targets from Andhra Pradesh Vision 2029 11
Exhibit 12: Summary of Targets
Structural Transformation of the Economy 12
Exhibit 13: Performance Management and Delivery Unit (PEMANDU) – A Radical &
Transformation Catalysts 13
Transformational Approach by Malaysia
Missions Mode A
- Game Changing and Holistic Approach 13
Exhibit 14: Sector-wise Investment Outlay
Five Campaigns 14
Exhibit 15: Tamil Nadu Infrastructure Finance Company (TNIFMC)
Approach and Strategy 19
Exhibit 16: Growth of Private Sector in the Total Infrastructure Outlay
Role of Infrastructure 19
Exhibit 17: Framework for Optimization of Risk Sharing
Multiplier Effects and Benefits of Infrastructure Investments 20
Infrastructure Development for Port led Logistics and Corridor Based Manufacturing 21
Core Sectors for Port Led Development: Logistics Hubs 23
Strategic Location of Andhra Pradesh 23
Thrust Sectors 26
Sector Snapshots 27
Enablers 49
Lifecycle Approach towards Infrastructure Development 49
Resources 55
Resource Augmentation 55
Risk Optimization 57
Bibliography 58
Key Contacts 60
Preamble List of Abbreviations
Andhra Pradesh has set its target to become one of the top three states in India by ADB Asian Development Bank MRO Maintenance, Repair and Opera ons
2022 and achieve the status of a developed state in the country by 2029, and this AfDB African Development Board MIS Management Informa on System
vision is to lay the foundation of the Sunrise State of Andhra Pradesh. The Vision AT&C Aggregate Technical & Commercial MSME Micro Small and Medium Enterprises
2029 hopes to impact the lives of every citizen in the State, enriching and AP Andhra Pradesh MDG Millennium Development Goals
transforming it through well coordinated small, large and mega scale development Andhra Pradesh Gas Distribu on MMSCMD Million Metric Standard Cubic Feet per Day
APGDC Corpora on MT Million Tonnes
programmes, executed as part of one of its seven development focused missions. Of
APIM Andhra Pradesh Infrastructure Mission MTPA Million Tonnes per Annum
the seven Missions, the Infrastructure Mission aims for the creation of a well- APMB Andhra Pradesh Mari me Board MU Million Units
planned and seamlessly integrated infrastructure within the State to realise the Andhra Pradesh Power Genera on MSU Mission Support Unit
objectives of Vision 2029. The 'Infrastructure Mission' will be guided by the Hon'ble APGENCO Company Limited NH Na onal Highway
Chief Minister's vision to create world class infrastructure across the industrial and Andhra Pradesh Power Distribu on Na onal Highways Development
social sectors, provide excellent global and domestic connectivity and augment the APDISCOMs Company NHDP Programme
APSEZ Andhra Pradesh Special Economic zone Na onal Investment and Manufacturing
State's power generation capacity. The Mission commits to carrying out the planned
AH Asian Highway NIMZ Zone
activities in an efficient and sustainable manner, according utmost respect and BPD Barrels per Day NOFN Na onal Op c Fibre Network
importance to environmental preservation and ecological balance. The Bn Billion NTPC Na onal Thermal Power Corpora on
Infrastructure Mission, along with the other six Missions, shall work harmoniously BCM Billion Cubic Meter Na onal Transport Development Policy
towards realising the single goal of enabling Andhra Pradesh to claim its destiny by BCM Billion Cubic Meter NTDPC Commi ee
2029 and to foster a common identity among the people of the State, and endeavour BU Billion Units NW Na onal Waterways
CBIC Chennai Bangalore Industrial Corridor PHP Peak Hour Passenger
to realise collective and individual aspirations, dreams and destinies, for its people,
CGD City Gas Distribu on Performance Management and Delivery
for the country, and for posterity.” CAGR Compound Annual Growth Rate PEMANDU Unit
DDG Decentralized Distributed Genera on POL Petroleum Oil and Lubricants
EPZ Export Promo on Zone Petroleum, Chemicals and Petrochemicals
FSRU Floa ng Storage and Regasifica on Unit PCPIR Investment Region
GAIL Gas Authority of India Limited PNG Pressurised Natural Gas
GIS Geographic Informa on System Programme Evalua on and Review
Gbps Gigabits per second PERT Technique
GOI Government of India PPP Public Private Partnership
G2B Government to Business RVEP Remote Village Electrifica on Programme
G2C Government to Consumer Rs. Rupees
GDP Gross Domes c Product SHG Self Help Group
GNI Gross Na onal Income SEZ Special Economic Zone
GSDP Gross State Domes c Product SIR Special Investment Regions
GIDB Gujarat Infrastructure Development Board Sq. Km. Square Kilometer
HDI Human Development Index SLDC State Load Dispatch Centre
IT Informa on Technology Investment Region Tamil Nadu Infrastructure Development
ITIR Informa on Technology Investment Region TNIDB Board
Infrastructure Corpora on of Andhra TMCFT Thousand Million Cubic Feet
INCAP Pradesh T&D Transmission and Distribu on
ISLs Integrated Sanitary Latrines TEU Twenty-foot Equivalent Unit
ITDA Integrated tribal Development Agency UNDP United Na ons Development Programme
ICAO Interna onal Civil Avia on Organiza on USD United States Dollar
JETRO Japan External Trade Organisa on USA United States of America
JICA Japan Interna onal Coopera on Agency VCIC Vizag Chennai Industrial Corridor
KSEZ Kakinada Special Economic Zone WGC Water Grid Corpora on
kWh Kilowa -hour WAN Wide Area Network
KG Krishna-Godavari WEF World Economic Forum
LNG Liquefied Natural Gas
LPG Liquefied Natural Gas
Chapter 1

Milestones for the State

Ÿ One of the three high-performing States in India

by 2022-23

Ÿ Best State in the country by 2029-30

Ÿ A leading investment destination in the world

by 2050-51

Andhra Pradesh Infrastructure Mission (APIM) would

streamline the efforts of the government
towards creation of infrastructural assets in a time
bound manner with set targets and monitorable
outcomes.

Andhra Pradesh Infrastructure
Mission
Under the leadership of the Hon'ble Chief Minister
Shri Nara Chandra Babu Naidu, the Government of
Andhra Pradesh has conceptualised a
comprehensive long term vision to fulfill its goal of
bringing about the State's socio-economic
development in an accelerated and sustainable
manner.
The Sunrise State of Andhra Pradesh has set itself
an ambitious and bold vision. The objective is to
transform from the status quo to a dynamic and
thriving Andhra Pradesh where the fulcrum of
development is the people of Andhra Pradesh. The
Government of Andhra Pradesh envisions a
Sunshine State where opportunities to achieve
prosperity and well being are abound with people
enjoying a high quality of life and happiness.
Laying the Foundation for the Sunrise State of Andhra
Pradesh
Vision 2029 charts out an ambitious path for
Andhra Pradesh to be amongst the top three States
in India by 2022 and a developed state measured in
terms of citizen life satisfaction and Happiness
Index by 2029. Come 2050, the Sunrise State of
Andhra Pradesh aims to be among one of the most
prominent investment destinations in the world.
The Government is conscious of the challenges
ahead and therefore has set measurable targets to
achieve the vision outcomes. Further, the Hon'ble
07 Sunrise State of Andhra Pradesh: Infrastructure Mission
Chief Minister has charted out a multi-pronged
strategy comprising seven Mission, five Grids, five
Campaigns, Janmaboomi programme and the
Smart Village programme to work towards the
common vision.
Exhibit 1: Sunrise State of Andhra Pradesh: Key Milestones
Year Target
2022-23 One of the three high-
performing States in India
by 2022
2029 Best State in the country
by 2029
2050 A leading investment
des na on in the world
The 'Infrastructure Mission' will be guided by the
Hon'ble Chief Minister's vision to create world class
infrastructure across the industrial and social
sectors, provide excellent global and domestic
connectivity and augment the State's energy
capacity. The Mission commits to carrying out the
planned activities in an efficient and sustainable
manner, according utmost respect and importance
to environmental preservation and ecological
balance. The Infrastructure Mission, along with the
other six Missions, shall work harmoniously
towards realising a single goal of enabling Andhra
Pradesh claim its destiny as a top investment
destination in the world and endeavour to realise
collective and individual aspirations, dreams and
destinies, for its people, for the country, and for
posterity.
In this context, the Andhra Pradesh Infrastructure
29
Mission (APIM) would streamline the efforts of the Mission Functions
government towards creation of infrastructural Ÿ Facilitating inter-departmental coordination
assets in a time bound manner with set targets and across the life-cycle of large infrastructure
measurable outcomes. projects
The APIM would assist Departments in speedy Ÿ Identification, scrutiny and appraisal of
implementation of projects that require inter- projects
departmental coordination. The APIM
presupposes that the various Government Ÿ Creating a shelf of bankable projects
Departments would continue to manage activities
Ÿ Institutional development and capacity
across the life-cycle of infrastructure projects that
building
would include project identification,
conceptualisation, preparation, development, Ÿ Streamlining planning and delivery
operations and monitoring. The thrust of the APIM mechanisms
in consonance with the Vision 2029 is to assist the
concerned Departments on pre-identified, specific,
growth promoting, large social and economic
infrastructure projects , which require inter-
departmental synergy.
Mission Objectives
The Andhra Pradesh Infrastructure Mission has the Andhra Pradesh Infrastructure
Mission Structure
following key objectives:
Ÿ Assist in achieving the strategic outcomes as Exhibit 2: Structure of the Andhra Pradesh Infrastructure
Mission
enshrined in the Vision 2029
Ÿ Accelerate the development of core physical Government Body
and social infrastructure in the State Chairperson: Hon’ble Chief Minister
Vice Chair Person: Hon’ble Minister,
Ÿ A dopt a l i fe- cycl e approach towards
development of infrastructure project Roads & Buildings
Ÿ Manage externalities and address inter-
Mission Support Unit (MSU)
departmental issues
Mission Coordinator: Secretary, Infrastructure
Ÿ Enhance inter-departmental synergies to
and Investments Department
multiply project outcomes and reduce time lag
Other Members: Principal Secretaries of
Ÿ Seamlessly coordinate with other missions,
Department concerned and Subject Matter
grids and programmes to enhance mission
Experts of national/international repute,
outcomes
Programme Management and Monitoring
Ÿ Optimise public and private investments by Expert, Remote Sensing, GIS, MIS Experts
providing effective planning and delivery
mechanisms
Sub - Missions
Ÿ To build a confident ecosystem for catalysing
investments in infrastructure
Line Departments
Sunrise State of Andhra Pradesh: Infrastructure Mission 08
 Chapter 2

Targets

Milestones Set by the State

The State is poised to become a developed state
by 2029-30 with a per capita nominal income in
excess of USD 12,746. A double digit growth rate
of 12 percent would be required to meet the
target of per capita income of USD 16,500 by
2029-30.

09 Sunrise State of Andhra Pradesh: Infrastructure Mission 29 Sunrise State of Andhra Pradesh: Infrastructure Mission 10
 Exhibit 3: Per Capita Income (Comparative Scenarios)

Parameter Year 2012-13 Tenta ve Target 2029-30

Per Capita Income (Current Prices) INR 84,000 Scenario I: INR 5.4 lakh
Scenario II: INR 7.64 lakh
Scenario III: INR 9.9 lakh
GSDP(Current Price) 2012-13 INR 4,19,391 crore Scenario I: INR 30.68 lakh crore
Scenario II: INR 43.31 lakh crore
Scenario III: INR 56.25 lakh crore
GSDP (Constant Price) 2012-13 INR 2,35,930 crore Scenario I: INR 8.86 lakh crore
Scenario II: INR 12.56 lakh crore
Scenario III: INR 16.24 lakh crore
Annual GSDP (constant price) 5.8% Scenario I: 8.1 %
Growth Rate Scenario II: 10.03%
Scenario III: 12.1%
Sector contribu on (percentage of Services Industry Agriculture Services Industry Agriculture
GSDP) INR
INR1,30,469 50,724 54,499 (60%) (30%) (10%)
Shifting the Growth Trajectory (55.3%) (21.5%) (23.1%)
To achieve the level of development envisioned in Popula on (2012-13) 4.9 crore 5.68 crore
the Vision 2029, the State will have to shift from the
current annual GSDP growth rate of 7 percent to a
higher trajectory of double digit growth rate. The Exhibit 4: An Accelerated Growth Scenario
Developed Countries
Government will stimulate growth in the keys 75 percentile in the Human Development Sector 2012-13 (present) 2022-23 share 2029-30 share CAGR
sectors. Index (HDI) Distribution ~ life expectancy
+ education + standard of living Agriculture 23.1% 15% 10% 6.6%
Defining Developed Economies Industry 21.1% 30% 30% 14.2%
Development typically refers to a state of relatively Services 55.3% 55% 60% 12.6%
high levels of economic growth and security. Some GSDP (Constant price) INR 2.26 lakh crore INR 7.34lakh crore INR 16.26 lakh crore 12.02%
of the most common criteria for evaluating a
country or region's degree of development are per High Income Countries
capita income or Gross Domestic Product (GDP), GNI Per Capita of USD 12,746
level of industrialisation, general standard of living
Economic Targets from Andhra Pradesh Vision 2029
Structural Transformation of the logistics, and strong hinterland access (both
and the amount of widespread infrastructure. nationally, being connected to Central, East and
Increasingly, other non-economic factors are In terms of economic performance, the indicator Economy South India, and regionally, being at a strategic
included in evaluating an economy or country's recognised globally to determine a developed Given that achievement of the Andhra Pradesh position in the South Asian and South East Asian
degree of development, such as the Human economy is the per capita income in excess of USD Vision 2029 requires increasing the GDP from INR spatial map).
Development Index (HDI). 12,746. The per capita income in Andhra Pradesh 2.96 lakh Crore (2014) to approximately INR16.25
would have to be in excess of INR 7.64 lakh (USD 1 lakh crore by 2029 (5.5 times increase over 15
= INR 60) for it to become a developed state. years), the industrial sector is envisaged as a key
Exhibit 5: Sectoral Share of Andhra Pradesh GSDP
growth driver for the State. It is estimated that the
Three per capita income scenarios have been share of the industrial sector in total output would Projected GSDP of
16,24,714
drawn for the State: significantly increase to 30 percent, from the
Andhra Pradesh in
Crore
2029
current level of around 23 percent. This translates
Ÿ Scenario I- A business as usual scenario: USD
to an annual growth rate of over 14 percent for the Sector Share in GSDP Agriculture Industry Service
9,000 (2029)
sector. Achievement of this target requires Andhra 10% 30% 60%

Advanced Countries Ÿ Scenario II-PCI meets minimum threshold: Pradesh to position itself as a highly competitive
destination for industry, not only at the national Corresponding
High level of GDP Per Capita USD 12,746 Growth Rate
Agriculture Industry Service
level, but also at regional and global levels. The Requirement (2029) 6.6% 14.2% 12.6%
+ significant deree of
industrialisation Ÿ Scenario III- An accelerated growth scenario: State has rich endowment of skilled labour, a long
USD 16,500 coastline with high potential for port driven

11 Sunrise State of Andhra Pradesh: Infrastructure Mission 29 Sunrise State of Andhra Pradesh: Infrastructure Mission 12
Increased Investment in Infrastructure
It is estimated that an Asset (net block) to GDP ratio
of 70 percent is required for sustainable provision
of services and facilitation of economic activities.
For India, this is estimated to be approximately 60
percent, compared to 71percent in Germany, 76
percent in China and 87 percent in South Africa.
Given the relatively higher contribution of
agriculture to total GSDP in Andhra Pradesh, the
net block of infrastructure is likely to be lesser than
the national average. In order to bridge the
investment gap and bring it to 70%, this
expenditure needs to increase significantly.
Applying this benchmark to Andhra Pradesh, with a
total estimated infrastructure net block at INR 1.56
lakh crore, incremental investment in
infrastructure to the tune of INR 12.4 lakh crore is
required over the next fifteen years.
Transformation Catalysts
Missions Mode - A Game Changing and Holistic
Approach
The Government realising the exigency for an
intensive development approach has constituted
seven Missions that would seamlessly work under
the guidance of the Hon'ble Chief Minister to
achieve vision outcomes with measurable targets.
The seven Missions will ensure bottom-up
planning and lay special emphasis on the
backward areas of the State to achieve equitable
growth and development. The Missions will act as
catalysts for attaining optimum levels of
performance in identified sectors with increased
resource use efficiency.
ΠInfrastructure Mission
Ÿ Develop integrated vision for infrastructure in
Andhra Pradesh to realise the objectives of
Vision 2029
Ÿ Develop fourteen ports that will compete with
Singapore as a 'Logistics Hub'
Ÿ Develop three Mega Cities, eleven smart cities
and twenty eight SEZs to make Andhra
Pradesh an Economic hub
13 Sunrise State of Andhra Pradesh: Infrastructure Mission
Ÿ Build three International Airports and ten
Domestic Airports
Ÿ Create a network of inland waterways and a
National Waterway connecting Kakinada with
Ennore
Ÿ World class infrastructure in power (24*7
supply) roads and railways
Ÿ Promote Andhra Pradesh as a Tourism Hub
 Primary Sector Mission
Ÿ Make agriculture and allied activities profitable
and sustainable
Ÿ Mitigate drought through water conservation
Ÿ Manage post harvest activities effectively
Ÿ Enhance storage processing and value
addition
Ž Social Empowerment Mission
Ÿ Score high on the MDGs and/or other global
indicators
Ÿ Monitor service quality and improve citizens’
living standards
Ÿ Network with innovative organisations and
implement their proven models
Ÿ Ensure equitable growth with specific focus on
the disadvantaged sections of society
 Industry Sector Mission
Ÿ Enhance state-wide road connectivity
Ÿ Operationalise industrial corridors
Ÿ Improve access to health and insurance
support systems for the workforce
Ÿ Create SEZs and two NIMZs
Ÿ Enhance productivity of all sectors
29
 Urban Development Mission
Ÿ I m p rove t r a n s p o r t a t i o n , h o u s i n g a n d
employment in urban areas
Ÿ Establish three mega and fourteen smart
cities
Ÿ Improve urban planning based on migration
patterns
Ÿ Improve solid waste and wastewater
management
Ÿ Develop strategies for financial resource
mobilisation
‘ Service Sector Mission
Ÿ Develop ITIRs and electronic clusters
Ÿ Stress on e-governance and m-governance
Ÿ Introduce 100 percent fibre optic connectivity
and high speed broadband connection to all
households
Ÿ Ensure growth with equity with specific focus
on the disadvantaged sections of society
’ Knowledge and Skill Development Mission
Ÿ E n s u re q u a l i t y h i g h e r e d u c a t i o n a n d
vocational education
Enhance student employability and boost
Ÿ Ÿ Objective: To increase literacy rate to 100
entrepreneurship
Ÿ Foster education and research
Ÿ Improve industry-academia collaboration
Grids
Ÿ With a Vision of making the State 'Smart', the
government has conceptualised setting up of
five grids that will provide impetus to the
growth of the economy. These include:
Ÿ Gas grid for gas connection (through
pipelines) to every household
Ÿ Water grid that will provide water for domestic
and industrial uses
Ÿ Power grid that will enable 24 * 7 power for
industry and households and nine hours of
quality, uninterrupted power supply to farms
Ÿ Road grid that links every village or hamlet and,
Ÿ Fibre-optic grid that will provide broadband
services to every household
Janmabhoomi
The Government has initiated the Janmabhoomi
Maa Vooru (JBMV) focusing on five Campaigns,
preparation of Micro Plan for each Gram
Panchayat/ municipality and has three areas of
interventions – enhanced pensions, health camp
and veterinary camp.
Five Campaigns
As part of the Vision, the Government has launched
a people centred development process that
addresses all facets of socio economic
development. The programmes will be
implemented on a campaign mode to ensure active
participation of all stakeholder(s) thereby achieving
inclusive development
Ÿ 1.Pedarikam Pai Gelupu - Victory over Poverty
Ÿ Objective: To reduce poverty levels through
women inclusive growth
Ÿ 2.Badi Pilustondi - School is Calling
percent and achieve zero drop-out rates
Ÿ 3.Polam Pilustondi – Revival of Agriculture
Ÿ Objective: To integrate technology and
agriculture to make it profitable and sustainable
Ÿ 4.Neeru Chettu - Water and Trees
Ÿ Objective: To harvest rainwater for meeting the
challenges of growing water scarcity and
achieving food and nutritional security
Ÿ 5.Aarogyam Parisubhrata - Health and Sanitation
Ÿ Objective: To ensure proper health and
sanitation is our government's priority
Sunrise State of Andhra Pradesh: Infrastructure Mission 14
Smart Village – Smart Ward towards Smart Andhra Pradesh
The Smart Village - Smart Ward initiative focuses on improved resource efficiency, empowered local self-
governance, access to assured basic amenities and responsible individual and community behaviour to build
a vibrant and happy society. It targets to achieve SMART infrastructure, SMART service delivery, SMART
technology and innovation, SMART institutions along with optimal mobilisation and utilisation of available
resources, leading to faster and more inclusive growth.

Exhibit 6: Integrated Functioning of the Transformational Catalysts

Primary Sector Industry Service Sector

Mission Sector Mission Mission
Janmabhoomi

§ Mi gate drought § Enhance state-wide § Development of

through water road connec vity ITIRs and electronic
conserva on clusters Five Campaigns
Hon’ble Chief § Create SEZs and
§ Storage processing NIMZs § 100% fibre op c
Minister & value addi on connec vity & high Badi Pilistondi /School is Calling
speed broadband
Knowledge & Pedarikam Pai Gelupu / Victory
§ Create a pool of trained, knowledgeable and skilled human resources over Poverty
Skill § Establish world class centres of excellences
Development § Foster innova on and research Aarogyam Parisubhrata /Health
Mission & Sanita on
Social § Ensure growth with equity
Empowerment § Enhance quality of life with a focus on health, sanita on Neeru Che u / Water & Trees
Mission § Promote healthy lifestyle
Smart Village Polam Pilistondi / Revival of
§ Create ameni es for absorbing migra on of labour from rural to urban Agriculture
Urban
areas
Infrastructure
§ Enhance urban ameni es with inbuilt social safeguards
Mission Water Power
Power Roads
§ Improve transporta on, housing and employment in urban areas
Grid Grid
Grid Grid
§ Develop integrated infrastructure for primary, secondary and ter ary
Infrastructure sectors Op c
Gas Grid
Mission § Facilitate development of industrial infrastructure including logis cs Fibre Grid

15 Sunrise State of Andhra Pradesh: Infrastructure Mission 29 Sunrise State of Andhra Pradesh: Infrastructure Mission 16
Chapter 3

Approach and Strategy

Andhra Pradesh is embarking upon an

infrastructure led development strategy to meet
its target. It is estimated that an incremental
investment of INR12.4 lakh crore in
infrastructure over the next fifteen years would
be required to ensure an Asset (net block) to GDP
ratio of 70 percent by 2029-30.

Ahead of port led development

Integrated approach towards a port led
development with phased infrastructure
strategy to meet planned targets.
 Further, this has been distributed more or less
evenly across roads, rail, power, water and telecom,
unlike India, where two sectors – power and
telecom account for over 60% of the total
investment.
spending a priority. A significant number of micro
and macro studies find a positive link between
infrastructure investments and growth, which
holds for both long-run economic growth as well as
specific factor outputs.

Connective infrastructure, such as roads, is likely to

Multiplier Effects and Benefits of Infrastructure
have the greatest impact on economic growth.
Investments
Improved connectivity within a country and within a
Accelerated infrastructure spending will drive
region increases firms' access to markets for their
economic growth, provide jobs, and deliver vital
goods and for cheaper inputs; assists businesses
services, such as a clean water supply. The World
in developing competitive advantages; and
Economic Forum (WEF) estimates that every dollar
provides workers, particularly those in lagging
spent on a capital project (in utilities, energy,
areas, with greater job and income opportunities.
transport, waste management, flood defence,
Transport typically facilitates agglomerations,
telecommunications) generates an economic
Andhra Pradesh is embarking on an infrastructure incremental investment of Rs. 12.4 lakh crore in which in turn promotes economic growth.
return between 5% and 25%. The multiplier effect
led development strategy. The Government infrastructure over the next fifteen years. accounts for the rapid economic growth of Core infrastructure investments also have a
recognises the experience from several emerging emerging markets that have made infrastructure multiplier effect on social indicators. On the
m a r ke t s a n d d eve l o p i n g e c o n o m i e s t h a t
bottlenecks and gaps in critical infrastructure in the
State could hinder the potential rate of growth of
the State's economy. To augment the infrastructure Key Facts:
Exhibit 7: Infrastructure in China – Driving Sustainable Growth
base of the State, the Government has set up the
Infrastructure Mission. Ÿ Infrastructure accelerates annual growth convergence
rates by as much as 13% while increasing per capital
annual growth rate by almost 1%. (AfDB)

Role of Infrastructure Ÿ Investments in core infrastructure generates economic

Historical infrastructure spending of 84 countries return of between 5% to 25% (WEF)

which account for over 90 percent of global GDP Ÿ An additional 1% of GDP invested in transport and
indicates that global investment on roads, rail, communications on a sustained basis increases the China's economic growth has increased from an factors. Investment in key infrastructure over the
p o r t s , a i r p o r t s , p o w e r, w a t e r a n d GDP per capita growth rate by 0.6% (AfDB)
average of 7.5 percent during 1970 - 1999 to over years has increased considerably as a share of
telecommunications has averaged at about 3.8
Ÿ China's investment in infrastructure (as weighted 10 percent per annum during 1999-2008. China's total GDP; which has been the key driver.
percent of global GDP2. From this panel, it is
average percent of GDP) is 8.5 versus 4.7 for India. sustained high economic growth and increased
estimated that an Asset (net block) to GDP ratio of Further, this has been distributed more or less evenly Since 2004, investment in infrastructure has
competitiveness by boosting the manufacturing
70 percent is required for sustainable provision of across roads, rail, power, water and telecom, unlike in accounted for between 25 and 35 percent of total
sector has been underpinned by a massive
services and facilitation of economic activities. India, where two sectors – power and telecom account fixed asset investment in China, and has grown in
development of physical infrastructure. This
for over 60% of the total investment nominal terms by an average annual rate of 20
For India, this is estimated to be approximately 60 correlation has also been realised at the global front
and is widely discussed. A study was conducted by percent. Although the improvement in the scale
percent, compared to 71percent in Germany, 76
Institute of Developing Economies (IDE), JETRO to and quality of infrastructure over the past two
percent in China and 87 percent in South Africa.
estimate the impact of factors such as labour, decades is evident across a variety of social and
Over the past (1992 – 2011) actual expenditure in
public and private investments, expenditure on economic indicators, there is still some way to go
India (Private and Public aggregated) has been
health and education and infrastructure on before China achieves convergence with the
about 4.7%. In order to bridge the investment gap
economic growth of China. The results indicate an provision of infrastructure seen in advanced
and even bring it to 70%, this expenditure needs to
output elasticity of infrastructure between 0.27 – economies, including Asian economies such as
increase significantly. Applying this benchmark to
0.41; which is the highest as compared to other South Korea which are further along the path of
Andhra Pradesh with an infrastructure net block of
economic development.
Rs. 1.56 lakh crore as on date, is estimated to make
2
For details, please refer to 'Infrastructure Productivity: How to save $1 trillion a year' MGI (2013).

19 Sunrise State of Andhra Pradesh: Infrastructure Mission 29 Sunrise State of Andhra Pradesh: Infrastructure Mission 20
Infrastructure Development for Port
led Logistics and Corridor Based
Manufacturing
A Port Led Development is envisaged for the State
where integration between infrastructure and
industry would help accelerate industrial growth.
Andhra Pradesh is at the pivot of two large
Exhibit 8: Singapore - Asia's Global Logistics Hub
Singapore has always been a strong performer in
the global logistics industry, with a World Bank
ranking of 5 in 2014. The World Economic Forum
ranks Singapore second for the 'Quality of Port
Infrastructure'. Increased thrusts on developing
port infrastructure, increased efficiency and
production of innovative value added goods have
contributed to its success.
21 Sunrise State of Andhra Pradesh: Infrastructure Mission
industrial corridors – the Vizag Chennai Industrial Exhibit 9: Industrial Innovation in Taiwan – Asia's Silicon Island
Corridor and the Chennai Bengaluru Industrial
Corridor. These corridors have the potential to
create a strong economic base with a globally
Since the 1950s, the Taiwanese economy has sector produced 50.94 percent of manufacturing
competitive environment, state-of-the-art
grown rapidly at an average rate of 7.3 percent per output in 2011. Moreover, the stock value of ICT
infrastructure, activate local commerce, enhance
annum (1952-2012), starting from an agrarian firms accounted for around 50 percent of the market
investments and promote sustainable
economy to become a world player in the ICT value of the Taiwan Stock Exchange in 2012. The ICT
development.
(information and communications technology) sector also contributes to 40.06 percent of its total
sector. Industrial policy and its thrust on exports.
liberalisation and globalisation have played an
important role in the economy's rapid growth. ICT firms compete well in the world market by
utilising the cost-down business model. However,
The industrial sector has undergone a in the last few years, with rising wages in China, the
revolutionary change since the 1950's. The cost-down business model encountered a
Transportation and logistics sector has continued to
contribute between 7 to 9 percent to Singapore GDP in
the last decade. As of today, the industry employs
2,05,000 people; thereby contributing to 12.3 percent of
total employment in the country.
labour intensive to technology
driven value added products
A key factor driving this sector is the economy's
Industrial transi on from
ability to leverage upon the two ports of Singapore
and Jurong, to cater to various
services including freight
forwarding, consolidation of
goods, value – added re exports
among others. Today, Singapore
has the world's busiest
transhipment hub, handling 32.6
million TEUs of containers in
2013 and has been ranked the
world's busiest port in terms of
shipping tonnage.
Ministry of Economic Affairs has played a key role in bottleneck as the value-added as a percentage of
A 'Logistics and Transportation transforming Taiwan from being an agro exporter final output value declined from 33.33 percent in
Productivity Roadmap' was o f r i c e , s u g a r a n d b a n a n a s t h e t o p I CT 2003 to 29.20 percent in 2011. To boost the ICT
unveiled by Singapore Economic manufacturer in the world. Below is a snapshot of sector further and for it to continue playing an
Development Board in 2012. The the policies and the shift in the activities undertaken important role in the industrial space, the
productivity plan had two focus by the export promotion zones (EPZs) to government has developed six industrial innovation
areas which would help achieve industrialise the economy. corridors that brings together the science parks, export
the productivity target of S$ promotion zones and the technology research institutes.
130,000 for value-added The gradual shift over more than five decades has These corridors focus on research and
products per worker by 2015. made the ICT sector as the most important development of defence, agricultural
component of Taiwan's manufacturing sector. The biotechnology, software and aviation sectors.
29 Sunrise State of Andhra Pradesh: Infrastructure Mission 22
 Core Sectors for Port Led Development: Logistics Hubs Exhibit 11: Phased Strategy for Infrastructure Development

Exhibit 10: Integrated Approach towards Port Led Development

Ports Roads Industrial Development Industrial Corridors

Enhance manufacturing
ac vi es catering to domes c Industrial
and global demand Corridors
and Zones
Short Ÿ Optimising and Ÿ Prioritise lane Ÿ Build upon existing Ÿ Industrial Nodes be
Term expanding of existing expansion of roads region specific linked with the nearby
port capacity with high vehicular industries industrial cluster
Mul -modal traffic
transport and India’s gateway to the
support world especially East and Ÿ Existing Minor ports Ÿ Agglomerate and Ÿ Connectivity between
infrastructure South-East Asian Regions to capitalise on Ÿ Upgrade state encourage industries Industrial nodes and
Seamless and cost-effec ve capacity constraints highways to national specific to each ports to be enhanced
Facilitate development of
connec vity for movement of
Ports Port linked Industries such of major ports along highways region
cargo as ship building, POL, the east coast
refineries etc.
Ÿ Improve last mile Ÿ Focus on export led
Ÿ Capitalise on deep connectivity to ports growth
draft ports to handle and industrial hubs
capesize vessels Ÿ Develop trade and
along the East Coast Ÿ Integrate road logistics centre to
network with rail and facilitate global trade
Ÿ Enhance port shipping for a multi
connectivity to modal transit system
Strategic Location of Andhra Pradesh existing ports to be
enhanced

Long Ÿ Development of new Ÿ Four/two lane Ÿ Build upon high and Ÿ Regions between the
Term ports to meet efficient hinterland large growth industrial clusters to
demand from connectivity to utilise industries an create be developed and
Special Investment Regions (SIRs) - Promote
development of Special Investment Regions which industrial corridors the port development large scale nodes to become key
will a ract investment in the State and emergence to its full potential employment growth drivers
of clusters with MSMEs
Port Led development: Capacity expansion of
exis ng ports. Proposed development for 11 Ÿ Development of
greenfield ports. Ports to act as pivot for industrial multimodal Ÿ four/six lane Ÿ Build upon
Develop 3 mega ci es, 14 smart ci es across the growth through integra on between infrastr ucture
State. The three mega ci es would be developed and industry. connectivity and connectivity from opportunities created
in Visakhapatnam, Vijayawada and Tirupa . supply chain/logistics district headquarters by global trade
infrastructure to the State capital
Andhra Pradesh Petroleum, Chemicals &
Capital City- Development of a world class capital Petrochemicals Investment Region (AP PCPIR)
city in the Vijaywada, Guntur region with strong manufacturing and service facili es for domes c
connec vity to the Rayalaseema and export led produc on in petroleum, Ÿ Lead containerisation Ÿ Village connectivity
chemicals & petrochemicals.
trend through through up gradation
improved supply- and new roads
Airport Development – Up grada on of
LNG terminals and Piped Gas chain and cargo
Network connec ng all districts
exis ng four airports to interna onal
standards and addi on of 7 Greenfield no-
agglomeration Ÿ Increased road
frills airports. Development of MRO industry density of s and
Ÿ Development of bulk national highways
World Class Ins tu ons to provide for
educated and skilled workforce
cargo ports to meet
increased energy
Two Industrial Corridors to trigger enormous growth in Cross road of two major na onal highways.
demands
manufacturing output- Vizag Chennai Industrial Corridor (VCIC) Towards providing World Class roads and last
and the Chennai Bangalore Industrial Corridor (CBIC). Four mile connec vity
industrial nodes iden fied along VCIC at Visakhapatnam, Ÿ Development of
Kakinada, Machilipatnam and Tirupa -Srikalahas and three
industrial nodes iden fied along CBIC at Hindupur, Chi oo and Coastal shipping
Krishnapatnam. Inland Waterways – Development of Na onal
8 4 as a mul modal transport system
Waterway
stretching between Srikakulum to Puducherry.

23 Sunrise State of Andhra Pradesh: Infrastructure Mission 29 Sunrise State of Andhra Pradesh: Infrastructure Mission 24
 Exhibit 11: Phased Strategy for Infrastructure Development (continued...) Thrust Sectors

Railways Exhibit 12: Summary of Targets

Gas Pipeline Airports
Power Inland Waterway
and Grids

Short Ÿ Reduction of Ÿ Development of Ÿ Upgrade NW 5 Ÿ Expansion and Ÿ Developing a

Term AT&C losses LNG terminals in and around up-gradation of multi-modal Sector Targets
and setting the industrial operational logistics hub i Power · Installed capacity of over 42,000 MW
Ÿ 24x7 power to foundation for clusters airports to meet industrial · Per capita electricity consump on to exceed 4500 units
industries, transforming AP demand from clusters and
· Renewable energy capacity addi on of over 9000 MW
commercial and into a hub for Ÿ Improve industrial nodes
domestic Natural Gas connectivity to development · Reduc on of T&D losses to below 5%
utilities roads and ports Ÿ Doubling and Airports · 3 World-class Interna onal airports at Visakhapatnam, Vijayawada and
Ÿ Expedite setting electrification Tirupa
Ÿ Capacity up of gas of existing · 12 out of 13 districts of the state will have an Airport upon comple on of the
addition through pipelines capacity as a
connecting short & envisaged plan (except Srikakulam District)
purchases
every district medium term · Andhra Pradesh to be developed into a MRO hub in India
Ÿ Augment power measure to Ports · Ports to handle cargo throughput of over 1000 MT a year
demand through Ÿ Provide gas to enhance rail
renewable · 18 ports to be opera onal (6 currently opera onal. 6 under development, 6
major industrial capacity
sources iden fied)
zones and
Ÿ Up-gradation cluster · Andhra Pradesh to develop into a hub for ship building and repairs
and Gas · Andhra Pradesh to become a gateways to import gas in the country
strengthening of · Piped gas for every industry, commercial opera on and domes c
key consump on in every district
Transmission
and Distribution Roads · Road density of 1.42 km per sq km
corridors · Four/six lane connec vity from district headquarters to the State
capital
Long Ÿ Capacity Ÿ Set up of more Ÿ Develop the Ÿ Development of Ÿ Increase the · Road connec vity to every village, with paved all weather roads
Term Addition through LNG terminals entire stretch of green field overall rail
· Beach Road from Ichchapuram to Tada
expansion of NW 5 airports density in the
existing plant Ÿ Develop AP as a region by Telecommunica on · Connec on on demand with a bandwidth of at le ast 10 Mbps through “Aerial
hub for Natural Ÿ Enable industrial Ÿ Develop AP as a augmenting Fibre Network”
Ÿ Increase supply Gas. development of MRO hub in capacity · Broadband connec vity to over 1.2 crore households
of power to the hinterland India · Tele-density of over 100%
agriculture and Ÿ Connect every by providing Ÿ Develop new
feeder IWT as an railway lines Railways · Develop new railway lines and expand capacity of exis ng railway lines
industry,
segregation domestic alternate to and expand connec ng to gateways – ports & airports to enhance cargo transporta on by
households, and surface capacity of rail.
Ÿ Strengthening commercial connectivity for existing Inland waterways Development of NW 4 as a major transporta on route for transport of cargo
and expansion establishment logistics railway lines
of transmission with pipes gas connecting to
and distribution network in the gateways –
state. ports &
Ÿ Network to meet
airports to
increased power Ÿ Gas pipelines to
enhance cargo
consumption connect AP with transportation
the rest of by rail.
Indiaal
highways

25 Sunrise State of Andhra Pradesh: Infrastructure Mission 29 Sunrise State of Andhra Pradesh: Infrastructure Mission 26
Sector Snapshots Target Ports Gangavaram – Krishnapatnam.
The Mission envisages achieving the following Andhra Pradesh has the second longest coastline
Roads The Government has also encouraged private
targets: in India, covering a length of over 974 km stretching participation for port development. Currently there
Road infrastructure comprises the National Increase the average road density across all between Srikakulam and Nellore with deep draft
Ÿ are six ports in the State that are operational and
Highways, State Highways, Major District Roads, road types above the national average and be coastal waters. A network of 14 notified non-major several others under various stages of
Panchayat Roads and Other Roads like project among the top three States in the country ports and one major port provides strong potential development.
roads. Road network provides the arterial network for the State to become India's gateway to the
to facilitate trade, transport, social integration and Ÿ Modernise State Highways and conversion of world, especially the Asian and South East Asian
economic development. Andhra Pradesh has a other highways to two lane roads with paved region. Andhra Pradesh has the unique advantage
total road length of about 1,23,334 km that criss- shoulders of having three deep draft ports – Visakhapatnam,
cross the length and breadth of the State. The NH-5 Gangavaram and Krishnapatnam that is a critical Operational and Upcoming Ports
with a length of about 1,000 km is the key highway Ÿ Provide ring road and radial roads in the new enabler for attracting bulk cargo from East and
in the State that runs parallel to the State coast Capital City Region South East Asian economies.

To reap the potential benefits and position of

Andhra Pradesh as the India's Gateway to the
Road Category Length (km) World, the Government is integrating the
Na onal Highways cons tute 4,302 development of ports, industrial clusters and
State Highways cons tute 7,255 ,hinterland and efficient evacuation systems
Major District Roads cons tute 19,783 through road, rail, inland and coastal waterways
Rural Roads 91,994 Source: Based on under the Sagarmala Project of the Government of
data available in AP India. The project is aimed at making ports as the
Socio-economic
Survey 2012-13 and
drivers of economic activity in coastal areas. The
B a s i c R o a d first phase of the project includes development of
Andhra Statistics of India, stretch comprising Visakhapatnam - Kakinada –
Head India
Pradesh MORTH 2012, GOI.

Road Density (km of road length per 100 sq. km.) 143 77
Road Density (km of road length per 1000 popula on) 3.9 2.5
Area density gap ~ 1,05,800
Popula on density gap ~ 68,500
Cargo Handled by Ports in Andhra Pradesh Non Major Ports

80

connecting the Northern and Southern Districts. It Ÿ Provide four/two lane efficient hinterland
also forms part of Asian Highways AH-45 which connectivity to utilize the port development to
60
comes under the Asian Highways Network. its full potential

In terms of either area density (roads per 100 Ÿ Provide four/six lane connectivity from
40
square kilometres of area), or population density district headquarters to the new Capital City
(roads per 1000 population), it is clear that there is a Million Tonnes
significant gap in total road availability. This Ÿ Provide adequate road capacity to support the
20
indicates an asset creation requirement of around planned logistics hubs and Industrial
68,459 km, even to reach parity with the national Corridors (VCIC and CBIC)
average on kilometre per 1000 people basis. 0
Ÿ Improve village connectivity by developing the 2007 2008 2009 2010 2011 2012 2013
required roads and improving the existing
roads Source: Indian Ports Association

27 Sunrise State of Andhra Pradesh: Infrastructure Mission 29 Sunrise State of Andhra Pradesh: Infrastructure Mission 28
Cargo Movement
In 2013-14, the ports in Andhra Pradesh handled
over 12.25% (117MT) of the total cargo moved
through sea in India. Vishakhapatnam Port
accounted for 59 MT, while the non-major ports
accounted for over 58.94 MT of the total cargo
movement. Andhra Pradesh is the second largest
handler of cargo through non major ports in the
country and Vishakhapatnam Port is the fourth
largest major port in the country in terms of cargo
handled. The current capacity of the operational
ports in the state is over 180 MT with traffic of
around 120 MT.
Economy and Cargo Movement
The Planning Commission of India has estimated
the elasticity between Gross Domestic Product
(independent variable) and the total cargo
Petroleum
(dependent variable) for data between 2001-02 and
Products
2010-11 at 1.21. An elasticity of 1.2, indicates that
for a 1% increase in GDP (factor cost at constant
prices), the total cargo increases by 1.2%. Based on
the elasticity of 1.2, the traffic projections for the
Coal
year 2023-24 are estimated to range between 290
MT and 450 MT.
Iron Ore
Fertilizers
Demand Drivers
Oil consump on in India is expected to increase from 3.68 million barrels per day (bpd)
in 2012 to 5.19 million bpd in 2025. Dependence on imports is expected to increase with
ports as the entry points. Furthermore coastal movement of petroleum products is
expected to increase with increased demand and development of refineries along the
coastline.
Increased gap between demand and indigenous availability is projected to be more than
200 MT by 2016-17 and to further increase to 423 MT by the end of 2022-23.
Increase in the export of iron ore and pellet traffic.
Of the total demand for fer lizers in the country, about 38% of the total fer lizer
consump on is met through imports. Total demand for fer lizers (products and
nutrients) is expected to increase from the current demand of 96 MT to over 140 MT by
2024-25 resul ng in greater imports.

Growth Scenario and Elasticity

Increasing share of Containeriza on- Share of container cargo in total other cargo ( other
GSDP Growth 8% 10% 12% than POL, Iron ore & pellets, Coal and Fer lizer) has increased from 44.59% in 2001 -02
Containers
Cargo Growth 9.68% 12.12% 14.52% to 54.2% in 2013-14.Container traffic would account for over 850 MT by 2023 -24
compared to about 200 MT in 2013-14.

Cargo Movement Estimated for Ports in Andhra Pradesh Potential for Ports in Andhra Pradesh increasing power demands of the state and
Endowed with a strong industrial base, coupled neighbouring states
GSDP @ 8% GSDP @ 10% GSDP @ 12%
with natural endowments of mineral reserves the
potential for a port lead development is certain. Ÿ Expansion of existing deep draft ports into
1200 With the establishment of a network of ports and mega container terminals with the ability to
land transport, Andhra Pradesh would serve as the handle ships of over 12,000 TEU
1031
1000 gateway to Eastern and Central India. Ÿ Develop multimodal connectivity and supply
However, for a port led development of the State, it chain andlogistics infrastructure for efficient
800 733 is essential that; usage
Million Tonnes

Ÿ Last mile connectivity through road and rail Ÿ Containerisation through improved supply-
600
517 and other supporting infrastructure is chain efficiency and cargo agglomeration
457 available for the movement of cargo to and
400 370 from ports Ÿ Balance the mix of exports and imports in the
297 container trade
200 Ÿ Capture traffic from neighbouring ports and
Eastern and Central India Ÿ Develop of need-based new bulk cargo ports
117 at different locations, especially to cater to the
0 Ÿ Capacity creation and prioritising energy cargo demand from VCIC and BCIC
2013 - 14 2023 - 24 2029 - 30 (Thermal coal, LNG) movement to meet the

29 Sunrise State of Andhra Pradesh: Infrastructure Mission 29 Sunrise State of Andhra Pradesh: Infrastructure Mission 30
Airports
There are six operational airports in the State, of
which five are managed and operated by the
Airport Authority of India and one managed by a
private spiritual trust. Of these, four are currently
operational for commercial traffic. The State has
one international airport located at
Vishakhapatnam and three domestic airports
located at Rajamundry, Vijayawada and Tirupati.
The erstwhile State of Andhra Pradesh accounted
for over 6% of the total passenger movement in the
country with Hyderabad airport accounting for
8 0 % o f t h e s t a t e's t r a f fi c . H o w e v e r, t h e
reorganisation of the State in 2014 has resulted in
considerable imbalance in the air connectivity of
the new Andhra Pradesh.
Currently, Visakhapatnam airport is the largest
airport in the state and handles over 60% of the
domestic traffic of the state and also the only
airport which handles cargo traffic. The total
passenger traffic in the state stood at 1.48 million
Expansion Plans for Existing Airports
For increased air connectivity and passenger traffic
in the State, the government has proposed for
expansion of existing airports and development of
greenfield airports in the state. The proposed
development plan aims at not only increasing
passenger growth, but as a result seeks to create
direct and indirect employment opportunities for
millions in the State.
Sectoral Plan
Ÿ Green Field International Aerotropolis near
Visakhapatnam
Ÿ Modernization & upgradation of 5 existing
airports (Vijayawada, Tirupati, Rajahmundry,
Kadapa, Puttaparthi)
Ÿ 5 Green Field No Frills Airports (Kuppam,
Dagadarthi, Oravakallu, Ongoleand
Tadepallegudem)
Ÿ 2 Brown Field No Frills Airports (Donakonda,
NagarjunaSagar)
Energy
a. Power Sector
The power sector is one of the most critical
components of infrastructure impacting economic
growth and well being of any developing economy.
An efficient and financially healthy power sector is
critical for growth and poverty reduction.
Andhra Pradesh currently has an energy
requirement of 54,800 MU (Million Units) of
electricity annually with an annual peak load of over
6500 MW. However, to meet the additional two
Total Connections in Andhra Pradesh
in 2013-14: 15 million
10% 1%
1%
7%
hours of power supply to agriculture, the total
energy requirement stands at 56,535 MU. The per
capita consumption of electricity in the state is over
1,050 units a year. Two distribution utilities in the
state supply power to over 15 million consumers
through transmission and distribution network of
over 50,600 ctk km spread across the State.
Power in the State is supplied through a mix of
conventional and renewable sources. The total
installed capacity in the state stands at over 10,600
MW.
Total Installed Capacity of Andhra Pradesh
as on 2014-15: 10,628 MW
1668.6
2810

Air Traffic in Andhra Pradesh 2013-14

2766.7
Airport Status Type Peak Hour Aircraft Passenger
(Passengers) Movement Traffic 1747.6
(in Lacs)
81%
Visakhapatnam Opera onal Customs 300 (Int'l) 1120 (Int'l) 0.72 (Int'l) 1633.22 2
400 (Dom) 9888(Dom) 9.4 (Dom)
Tirupa Opera onal Domes c 300 2970 2.72

Vijayawada Opera onal Domes c 90 4280 1.94

Rajahmundry Opera onal Domes c 225 7492 1.12 Domestic State Thermal

Commercial State Hydel

Kadapa Non Domes c 100 - - Source:
Opera onal Airport Industrial State Renewable
Pu aparthi Opera onal Private - - - Authority of
Agriculture Central Generating
India
Others Stations

IPPs

in 2013-14. This comprises of 1.21 % of the total Ÿ Establishment of an Aviation Academy and Renewables

domestic passenger traffic and 0.15% of the total develop Andhra Pradesh as an MRO hub for
international traffic in the country. India by setting up maintenance Repair and
Overhaul (MRO) facilities in Visakhapatnam

31 Sunrise State of Andhra Pradesh: Infrastructure Mission 29 Sunrise State of Andhra Pradesh: Infrastructure Mission 32
Power Sector and the Economy 1. Reliable 24X7 supply to the consumers b. Gas Industry wise off take of Natural Gas in India (2013-14)
It is estimated that the elasticity between GDP (except agriculture) in a phased manner The total Natural Gas consumption in India was
growth and power sector growth in the country within a period of three years. around 34 Billion Cubic Meter (BCM) for the year
Power
ranges between 0.8 and 0.9. Assuming similar 2013-14, while the erstwhile state of Andhra Genera uon

relation between the GSDP of the State and the
power sector growth, it implies that the power
sector would have to grow between 8% and 9% if
the GSDP grows at 10% per annum. Assuming a
continued GSDP growth between 8% and 12% for
the State, the demand for electricity in the state is
expected to range between 95 BU to 124 BU by
2022-23 or would require an installed capacity of
around 25,000 MW. This would translate into a per
capita consumption of ranging between 1,766 units
to 2,299 units during the same time period.
Projected Per Capita Power Consumption and Demand for Power
GSDP @ 8% GSDP @ 10%
2. Increase duration of supply of electricity
to agriculture consumers from seven
hours per day at present to nine hours
per day in a phased manner
3. All unconnected households to be
provided access to electricity in a time
bound manner by FY 2016-17
4. Ensure adequate capacity addition
planning & tie ups for power from various
sources at affordable price to meet the
GSDP @ 12% Present Demand GSDP @ 8% GSDP @ 10% GSDP @ 12%
Pradesh consumed about 1.16 BCM of natural Gas 31.02% Non Energy Fer liser Industry
Process, 32.56%
during the same year. The fertilizer sector Others 13.78 Bn CM
2.10%
accounted for the largest share in consumption in
Petrochemicals
the country at over 32.5 % followed by the power 4.11%
sector with over 31% of the total consumption. This
Cap ve Use/LPG
Others
13.96%
3.90%
is mainly due the limited availability of natural gas in Industrial Fuel
Domes c Fuel Tea Planta on3.17%
the country and provision for priority allocation of 8.60% 0.58%
natural gas for fertiliser sector.
Andhra Pradesh has an estimated onshore balance
recoverable reserve of about 48.2 BCM of Natural
Gas and the offshore reserve along the East Coast indicate existence of large unexplored resources in
the Pranahita-Godavari and Kadapa basin with an
of India, which comprise mainly around Andhra
Pradesh stands at over 531.4 BCM. The state has estimated 39,000 sq. km. of potential area.
tremendous natural gas wealth in the KG basin Although the availability of gas has been explored
both on and off-shore, which stretches to over around the State, the supply of the natural gas has
not been able to meet the growing requirements.
50,000 sq. km. of potential area, studies also

5500 300000

250000
Units Per Capita

4500 4496 255496

Million Units

200000
3500 3517 199841
2299 150000
2500 2739 124625
2017 100000 109320
1500 1766 155672
Demand Drivers for Gas Based Power Plants
1083 50000 95685
54864
500 0
2014-15 2022-23 2029-30 2014-15 2022-23 2029-30 Over 3,790 MW of gas based power plants proposed for development in the future and
Power Sector
exis ng power plants.

A major consumer of natural gas is the fer lizer sector. The Government of India
Fertilizer
The demand for power in the State is expected to be projected increase in power demand in accords the highest priority for the fer lizer sector when it comes to the
Sector
driven mainly through industrial users coupled with the future. alloca on/supply of natural gas.
increased demand from domestic consumers
resulting from increased disposable income and 5. Strengthen the Transmission and CNG sale for automobiles, piped natural gas for households and commercial
Industrial and
rural electrification. Distribution network to cater to the establishments and industrial customers are expected to drive up demand for natural
CGD Sector
expected growth in demand of existing gas in the State.
as well as forthcoming consumers.
Way Forward
Refineries The refinery sector is also a major consumer of natural gas in the state. Over 30 MTPA
To meet the power requirement of the State, 6. Monitoring the timely commissioning of
Sector addi onal refinery capaci y is planned in the Kakinada and Vizag region.
Government of Andhra Pradesh and Government of various generating plants, transmission
India have taken a joint initiative to provide un- and distribution infrastructure to meet
interrupted 24x7 power supply to the State of the expected growth in demand. Switching The switching demand arises from automobiles segment, households and commercial
Andhra Pradesh(except agriculture consumers). Demand establishments - switching from alternate fuels such as LPG, Diesel and Petrol to CNG .
This mainly includes the following:

33 Sunrise State of Andhra Pradesh: Infrastructure Mission 29 Sunrise State of Andhra Pradesh: Infrastructure Mission 34
Inland Waterways
Inland Waterways is the cheapest mode of surface
transport. The cost of moving one tone of cargo
through inland water transport is barely 50
paise/km in comparison to Re 1/km by railways
and Rs 1.5/km through roads. It also has the
advantage of low capital cost and low maintenance
cost. Given that India has one of the highest
logistics cost as percentage of output (~ 15% of
GDP), usage of inland waterways as a key logistics
channel can provide significant cost savings at
relatively lower investment.
Andhra Pradesh is bestowed with two major rivers
– Krishna and Godavari that can be developed into
waterways for speedy and cost effective
movement of goods and passenger traffic. The
National Waterways – 4 is designed to leverage this
advantage to provide a reliable and cost optimal
logistics channel spanning three states (Andhra
Pradesh, Tamil Nadu and Puducherry)
I.Target
The National Waterways - 4 (NW -4) from Kakinada
to Puducherry Canal System along with River
Godavari and River Krishna is the second longest
NW with a length of 1,078 kms after the NW 1. The
NW 4 comprises of the following:
Stretch
Godavari river from Bhadrachalam to Rajahmundry
Krishna river from Wazirabad to Vijayawada
Kakinada canal from Kakinada to Rajahmundry
Eluru canal from Rajahmundry to Vijayawada
Commamur canal from Vijayawada to Peddaganjam lock
North Buckingham canal in A.P. upto Tada
35 Sunrise State of Andhra Pradesh: Infrastructure Mission
NW – 4 runs through urban and rural centres
including Vijayawad, Rajahmundry, Kakinada,
Eluru, Bhadrachalam, Wazirabad and Chennai and
therefore serves as a vital link between the urban
areas and rural hinterland. NW-4 is connected to
the most number of ports in the country compared
to other national waterways. These include
Kakinada, Krishnapatnam, Ennore and Chennai
ports and would facilitate cargo movement and
promote trade in the region. The development of
this waterway will provide social benefits such as
employment generation, reduction in pollution,
providing port- hinterland connectivity, reduction in
road maintenance and road accidents, increase in
economic activities etc. Given that the overall
project cost is estimated at about INR 3,426 crore,
the segment of the facility within Andhra Pradesh
(888 km) is estimated to cost INR. 2,800 crore .
Terminals Proposed:
Ÿ Kakinada
Ÿ Rajahmundry
Ÿ Eluru
Ÿ Kottapatnam
Ÿ Maipadu
Ÿ Durgarajupatnam
Ÿ Vijayawada
Ÿ Tadepaligudam
Km
171
157
50
139
113
258
29
Logistics
There is a clear symbiotic relationship between
efficient transportation and logistics systems and
industrial growth. Growth of the logistics sector has
an elasticity of 1 to 1.2 on output. Given that the
Government of Andhra Pradesh envisages
industrial growth as a key driver of GDP growth in
the State especially during the 2015–2029 period
high quality logistics infrastructure is imperative for
effective implementation of Vision 2029. The State
already has good rail and road linkages to North,
South, West and East. It also has a long coastline
and a planned parallel inland waterway network. It
has natural advantages such as a long coastline
and deep drafts to enable ports which can provide
linkages to major markets. Direct shipping from
South East Asian economies to ports in the States
compared to West Coast will save transit time of
around 2–3 days. Additionally, accelerated
industrialisation in the region, cargo agglomeration
from distant hinterlands and increased
connectivity through the envisaged industrial
corridors creates a large window of opportunity for
logistics.
The logistics sector theme is essentially an
interplay of the other infrastructure components of
roads, rail, ports, airports, inland waterways and
industrial corridors, which are efficiently integrated
with the objective of reducing the total cost of
transportation to enhance competitiveness.
The NTDPC Report 2014 projects total
infrastructure investment to the tune of INR 40
trillion in the 12th plan, and INR 70 trillion, INR 100
trillion and INR 155 trillion in the 13th, 14th and 15th
Plan periods respectively. Further it suggests that
total investment in transport will need to increase to
about 3.3% of the GDP in the 12th plan, and
increase to 3.7% of the GDP subsequently.
I.Target
Andhra Pradesh seeks to emerge as the Logistics
Hub of the East Coast in the South Asian region, by
efficient integration of multi modal transportation
networks, with the objective of optimizing total cost
of logistics. The following targets are envisaged:
Ÿ Creation of multi-modal transport and
logistics infrastructure
Ÿ Reduction in the cost of logistic as percentage
of output comparable to the best performing
states in the region
Ÿ Creation of an information system integrating
multiple players in the logistics value chain
across sectors for efficient coordination. This
will be set up for the two industrial corridor
planned in the State
Industrial Corridors
Contribution of the manufacturing sector to the
State's GDP is currently around 10%. This is lower
than the national average of 15%. Globally, there is
evidence of Corridor based development strategies
increasing business competitiveness and
attracting investments. Hence, in order to bring
about all round development of the industrial
sector, the Government of Andhra Pradesh will lay
thrust on development of industrial corridors in the
State. Andhra Pradesh is at the pivot of two major
industrial corridors – the Vizag Chennai Industrial
Corridor, and the Chennai Bengaluru Industrial
Corridor.
Target
The Vizag Chennai Industrial Corridor (VCIC) will be
India's first Coastal industrial Corridor and serve as
a 'Gateway to East.' The Vizag – Chennai Industrial
Corridor is a part of the larger East Coast Economic
Corridor that is proposed to run from Chennai to
Kolkata. The corridor covers an area of about
1,14,765 sq. km., and will pass through 11 districts
across two states – 9 in Andhra Pradesh and 2 in
Tamil Nadu. It will house 3 major ports and several
non-major ports. The project is expected to create
more than 50,000 jobs, both directly and indirectly,
in the first phase alone. The corridor is expected to
enhance the manufacturing output in the region of
INR 3,000 billion by 2025, and INR 7,825 billon by
Sunrise State of Andhra Pradesh: Infrastructure Mission 36
2035. VCIC would host industries across a number
of sectors, including food processing, textiles,
m e t a l l u r g y, c h e m i c a l s , p h a r m a c e u t i c a l s ,
electronics and automotive, to leverage the factor
advantage of its various catchments.
At present four nodes have been identified in the
Corridor:
1.Atchutapuram node – Visakhapatnam
District
2.Kakinada – East Godavari District
3.Gannavaram – Kankipadu Krishna District
4.Yerpedu – Srikalahasti – Chittoor District
The Chennai Bengaluru Industrial Corridor (CBIC)
covers an area of ~ 80,359 sq. km, and a population
of over 47.5 mn. Three of the eight nodes identified
in CBIC are in Andhra Pradesh – Krishnapatnam,
Hindupur and Chittor. In Phase I of the project, the
Krishnapatnam node will be developed. Japan
Investment Corporation Agency (JICA) is
supporting the Government of Andhra Pradesh by
funding the master planning and development of
the Krishnapatnam node. About 4,801 ha of land is
planned to be developed in this node.
Krishnapatnam has strong presence of food
processing, metallurgy, electrical equipment,
chemicals and petrochemicals, textiles and
pharmaceuticals. The CBIC corridor will help in the
promotion of automobiles, machinery, electronics
and medical equipment in this node.
Development of these Corridors will entail creation
of high quality trunk infrastructure across transport
(road, rail), power, water and communication
networks. Most of projects require substantial
capital expenditure and an active facilitation by the
State, Central and Local Government. The Mission
would encourage private sector involvement in
these projects wherever possible.
37 Sunrise State of Andhra Pradesh: Infrastructure Mission
Railways
Andhra Pradesh has a total rail network of 2,660 km
with a rail density of 16.59 km of rail route per 1000
kilometers compared to the national average of 20.
In terms of rail route per 1000 population, the
State's rail density is about 0.0538 which is close to
the national average. 0.0533. The Mission would
coordinate with the Government of India for
identification and construction of new rail lines in
the State.
Targets:
Ÿ Doubling and electrification of existing
capacity to enhance rail capacity in the region
Ÿ Develop new railway lines and expand
capacity of existing railway lines connecting to
gateways – ports & airports to enhance cargo
transportation by rail.
Ÿ Increase modal shift of cargo transportation
from roads to rail over medium and long term
Ÿ Developing a multi-modal logistics hub in the
region shall act as a contributing factor for
growth of cargo movement by rail.
Ÿ Assess feasibility of development of various
upcoming projects due to external factors
such as land availability, soil erosion,
environment pollution, etc.
A total length of 3,301 kms. has been planned in the
State (including new lines and doubling) by the
Ministry of Railways of which about 2,100 is entirely
within the State.
29
Grids
The Government of Andhra Pradesh has launched five grids for water, power, gas, optic fibre and roads to
improve the access and availability of these services across the State.
Intake points, pumping stations and laying of
1. Water Grid Ÿ
pipeline
The Government of Andhra Pradesh is committed
to provide assured water supply to its people for Ÿ Capital improvements to existing storage and
drinking, irrigation and industrial use. The State transmission infrastructure
needs 156 tmcft of water to cater to the drinking
water needs of people in 13 districts and also meet
Project Funding:
the requirements of commercial and industrial
consumers. Of the total 156 tmcft water, 20 tmcft is Ÿ 50% of the project cost would be funded by
for industries and 136 tmcft is for domestic sector Government of Andhra Pradesh
drinking purposes. In order to ensure this, the
Ÿ Remaining 50% to be funded through external
Government is in the process of setting up a Water
sources
Grid Corporation (WGC) that would oversee the
development of a state-wide smart water grid. The
WGC would also monitor, supply and maintain the Project Outcomes:
water grid. The mega grid would be built at a cost of Ÿ Assured round the year water supply to all
about Rs. 40,000 crore would have about four or areas in the State for drinking, irrigation and
five sub grids. About 156 tmcft of water would be industrial purposes
drawn from Godavari, Krishna, Penna and other
Ÿ Make Rayalaseema drought free by effective
sub-rivers in the states by reserving river water
channnelisation of flood water
which flows into the ocean. Separate pipelines
would be constructed for industrial, irrigation and
Timeline
drinking purpose requirements.
Ÿ Supply of water to select towns and villages in
next two years
Project Components:
Ÿ 4-5 sub grids Ÿ Overall project completion by 2019
Ÿ New storage reservoirs
Sunrise State of Andhra Pradesh: Infrastructure Mission 38
2. Gas Grid
To contribute towards economic growth and
efficient energy distribution, a state wide Gas Grid is
being developed. The Gas Grid consists of a State
wide Natural Gas Pipeline Grid and City Gas
Distribution system. The Gas Grid would provide
natural gas through a network of pipelines to
industrial, transport commercial and domestic
sectors and thereby encouraging major indigenous
and global players of the Industry.
Through the gas grid, the KG-basin and other gas
resources would be brought to "every industry and
every household.
AP Natural Gas Grid:
East-West Pipeline: East-West Pipeline is starts
from Gadimaga on the East coast of Andhra
Pradesh near Kakinada and terminates at Baruch in
the State of Gujarat. The source for this pipeline is
D6 in KG basin in the East Coast and it traverses
through East Godavari, West Godavari, Krishna and
Nalgonda in Andhra Pradesh.
Mallavaram-Bhilvara-Bhaopal-Vijaypur
Ÿ expenditure of Rs. 3,843 crore and operation
Pipeline: This 1,440 kms pipeline will pass
through East-Gadavari and Krishna in Andhra
Pradesh, Khammam, Warangal and
Ramagundam in Telangana before reaching to
Bhopal and Vijaypur.
Ÿ Kakinada-Srikakulam Pipeline: This pipeline
would traverse through East Godavari,
Visakhapatnam, Srikakulam and
Vizianagaram Districts of Andhra Pradesh and
has a length of 275 kms.
39 Sunrise State of Andhra Pradesh: Infrastructure Mission
Ÿ Ennore – Nellore Pipeline: This 200 kms long
proposed pipeline would traverse through
Tiruvallur district in Tamil Nadu, Chittoor
district and Sri Potti Sriramulu Nellore district
in Andhra Pradesh.
Ÿ K.G. Basin Pipeline Network (GAIL): The
pipeline network covers East, West and
Krishna District in Andhra Pradesh and has a
length of about 800 kms from K.G. Basin
(onshore gas fields of ONGC) to cater to the
industrial needs in the three districts of Andhra
Pradesh.
Ÿ Vijayawada Nellore Pipeline: This pipeline
bridges the gap between KSPL and ENPL and
will cover the entire East Coast of Andhra
Pradesh. This proposed pipeline would
traverse through Sri Potti Sriramulu Dist.,
Prakasam, Guntur and Krishna Districts with a
length of about 350 kms.
Ÿ Tumkur to Nellore Natural Gas Pipeline: The
pipeline will cover Anantapur, Kurnool, YSR
Kadapa and Nellore districts. This will also
ensure the availability of gas to Andhra
Pradesh from Dhabol LNG Terminal of GAIL
through Dhabol-Bangalore Natural Gas
Pipeline as an alternative source and also form
a local gas grid covering Karnataka, Andhra
Pradesh and Telangana
Ÿ City gas distribution in major cities
(municipalities and Class I Cities) of the State
to improve PNG and CNG supply for domestic,
commercial and industrial use
29
3. Optic Fibre Grid
The Government of Andhra Pradesh has pioneered
the usage of information technology for good
governance in the country. The Government has
identified e-governance and provision of access to
information technology to its citizens as a key to
inclusive and sustainable development of the State.
The Gover nment of A ndhr a Pr ades h has
envisioned 'Digital Andhra Pradesh' that is aimed at
bridging the digital divide, and enabling skill
development, to increase economic growth of the
State. The Government has targeted to make
Andhra Pradesh as one of the top three states in the
country in the Information Technology (IT) and
electronics sector.
In its endeavour to make people a part in the overall
development process and enhance the quality of
delivery of public services the government has
envisioned achieving the following among others
through a mission mode:
Ÿ Establish a new State Data Centre
Ÿ To reach gigabit to all gram panchayats by
2017
Ÿ Last mile connectivity – all G2C and G2B
services to be made available online and on
mobile
Ÿ Redesigning the service delivery infrastructure
Ÿ Take Fibre to Village initiative
Under the 'Take Fibre to Village' initiative the
Government has fast tracked the development a
state wide optic fibre grid that would criss-cross
the length and breadth of the State.
Project features:
Ÿ One of the longest optic fibre grid in the
country with a length of 65,000 km under the
National Optic Fibre Network (NOFN) with an
end-to-end network right from the State to the
gram panchayats
Ÿ Aims to make available at least 10-15 Mbps
broadband connections to the 12 million
households in the State at a cost of Rs. 150 per
month
Ÿ On-demand availability of 100 Mbps to one
Gbps connection to every business enterprise
Ÿ The total cost of the project is estimated to be
about Rs. 6,000 crore with a capital
cost of Rs. 2,140 crore over the next ten years
Ÿ PPP/private sector participation to be
explored wherever possible
Sunrise State of Andhra Pradesh: Infrastructure Mission 40
4. Roads Grid
The Government of Andhra Pradesh is planning to
create a Road Grid with the network of R&B /PR
roads that would provide smooth access to district
headquarters and to the National highways nearby
from all parts of the district besides facilitating
effective movement of Cargo to and from the sea
ports. The Government of Andhra Pradesh is
making endeavors to make this road grid a reality
within the next 5 years i.e., by 2019.
The targets of the Roads grid include the following:
Ÿ Connecting all habitations with at least a
single lane all weather black topped road with
the nearest Mandal headquarters
Ÿ Mandal headquarters in every district to be
connected the district headquarters and the
nearest National Highways with a properly
developed Black topped road of having a
minimum of 2 lane carriageway of 7 m width.
41 Sunrise State of Andhra Pradesh: Infrastructure Mission
Ÿ All the major National Highways carrying
substantial commercial traffic are to be
developed as 4 lane divided roads.
Ÿ Separate 2/4 lane roads connecting the
villages/ towns/ cities with 4 lane National
Highways.
Ÿ Other National Highways are to be developed
at least as 2 lane roads with 1.5 m wide paved
shoulders on either side (total 10 m width).
Ÿ National Highways to be developed as 4 lane
divided roads
In order to bring the long coastline available for
Andhra Pradesh to effective use, large scale
development of all the sea ports is being planned.
To facilitate quick movement of Cargo, all the
seaports are to be connected to the nearest 4 lane
National Highway with 4 lane divided roads
29
5. Power Grid
Andhra Pradesh has total 127.53 lakh households
(Rural - 88.59 lakh, Urban - 38.94 lakh), out of which
around 5.84 lakh are un-electrified. Other than
Households, Andhra Pradesh has 14.54 lakh
Agricultural connections and 1.53 lakh industrial
consumers.
The Government has planned a robust grid for
transmission and distribution of power in the State.
At present the power grid in the state is manage by
APTRANSCO for transmission and by APEPDCL &
APSPDCL for distribution. The present
transmission infrastructure consists of 6 Nos. of
400 kV Substations, 72 Nos. 220 kV substations,
167 Nos. 132 kV substations and 18,907 Ckm of
EHT lines. The Distribution Network consists of
2,524 Nos. of 33/11 kV Substations, 9,264 Nos. of
Feeders (Urban - 2,114, Rural/Mixed – 5,375,
Dedicated / Express Industrial – 706, Others- 1069)
& 5.62 lakh of DTRs in the two DISCOMs.
Ÿ Under the grid the following is planned to be
taken up:
Ÿ Enable supply of excess energy into the grid
with the net-metering solar policy
Ÿ Providing parallel/ alternative sources of
power supply
Ÿ Alternative supply to 33 kV, 11 kV and LT
consumers
Ÿ Laying covered conductors for 33 KV & 11 KV
voltage levels
Ÿ Wedge connectors,
Ÿ Maintenance free earthing pits,
Ÿ Installation of substation monitoring software
Ÿ re-conductoring of existing lines
In addition, for coastal areas prone to cyclones and
religious towns, breakdown mitigation activities to
prevent outages such as replacement of over-
headlines with Under-Ground cables are planned at
a total capital expenditure of Rs. 3,019 crore.
APTRANSCO has planned 400 kV transmission ring
network around the cities of Vijayawada & Guntur
with three 400 kV substations and 440 km of Quad-
moose transmission lines to improve the reliability
of supply and minimize power disruptions with an
investment of Rs. 975 crore. The above schemes /
initiatives of APDISCOMs / APTRANSCO have been
included under the 'Power for All' scheme.
Sunrise State of Andhra Pradesh: Infrastructure Mission 42

Andhra Pradesh Capital City
The Government of Andhra Pradesh has proposed
to develop a world class capital city in the
Vijayawada-Guntur region. The Government has
enacted the Andhra Pradesh Capital Region
Development Authority Act 2014 for development
of the Capital Region.
Geographical Layout:
Ÿ The new capital will have a core city with a
peripheral capital region
Ÿ Core Region: 125 sq. km.
Ÿ Capital Region: 7,325 sq. km. within the
Vijayawada – Guntur – Tenali – Mangalagiri
boundary
Ÿ The Government is in the process of preparing
the Capital Region Plan for the Capital Region,
a Master Plan for the Capital City and a Seed
Development Master Plan for the construction
43 Sunrise State of Andhra Pradesh: Infrastructure Mission
of approximately 8 sq. km as the first section
of the capital city
Core Components:
Ÿ World's largest Outer Ring Road with 12 lane
and a length of about 200 km. at an estimated
project cost of USD 5,000 million
Ÿ World class urban infrastructure facilities for
solid waste management, water supply, street
lighting, storm water drainage, etc.
Ÿ Four Lane Highway connecting the New
Capital Region with the Rayalaseema Region
Investments:
Ÿ USD 30 billion in the next ten years
Ÿ Massive potential for Public Private
Partnerships
29
Tourism
Andhra Pradesh is recognized for its legendary
dynasties, its most revered temples, lacquer toys
and beautiful weaves, rich literature and vibrant
arts of Kuchipudi dance. The State is home to more
than 300 tourist locations including holy pilgrim
centres, attractive palaces, museums, ports, rivers,
beaches and hill stations. Tourism is a key
contributor to the State's economy and Andhra
Pradesh ranked 3rd in India in terms of domestic
tourist footfalls in 2013.
According to Government of India estimates, every
one crore that is invested in tourism sector creates
475 jobs compared to 126 jobs from
manufacturing sector. Realising the potential of the
sector, the Government has undertaken integrated
development approach for the sector to embolden
the State's stature as a major tourism hub in the
country. The Government's vision is "To maintain
its current position as the most sought-after
tourism destination for an authentic, luxurious, and
personalized feel and experience of Andhra
Pradesh for travelers from all regions.”
Sunrise State of Andhra Pradesh: Infrastructure Mission 44
Social Infrastructure Vijayawada and Tirupati
The Mission would coordinate with Urban
Development Mission and other missions for Ÿ Minor Sports Stadium in all district
speedy development of a few signature projects headquarters
that would enhance the overall quality of life in the International Schools
State:
Ÿ Establishment of world-class educational

Signature Tower institutions at Visakhapatnam, Nellore and

Ÿ Development of a Signature Tower at
Guntur
Madhurawada with one million sq. ft. of Golf Course
incubation space
Ÿ Development of Golf Courses at

Convention Centres Visakhapatnam, Vijayawada and Nellore

Ÿ Large Convention Centres with a capacity of
Healthcare
10,000 people to be developed at
Ÿ Set up a world class healthcare centre and
Visakhapatnam, Viajayawada and Tirupati
promote medical tourism in the State
Ÿ Minor Convention Centres with a capacity of
4,000 people to be developed in all district
headquarters

Sports Stadium
Ÿ Large Sports Stadium at Vishakhapatnam,

45 Sunrise State of Andhra Pradesh: Infrastructure Mission 29 Sunrise State of Andhra Pradesh: Infrastructure Mission 46
Chapter 4

Enablers

Given long gestation periods and lagged

realisation of investment for infrastructure,
enablers in the form of project implementation,
project management, enabling policy and
institutional mechanisms would be created to
support investment strategies to meet the set
targets.
 The Mission will have a robust monitoring involved from the project conceptualisation phase
framework and will track the progress of the f o r i m b i b i n g a c u l t u re o f o w n e r s h i p a n d
projects on a periodic basis. All the line accountability towards achieving project
departments and concerned public agencies will be outcomes.

Exhibit 13: Performance Management and Delivery Unit (PEMANDU) – A Radical and Transformational Approach by Malaysia

In 2009, the Government of Malaysia integrated the the objectives of this institution, the process
Tenth Plan with two additional components – (1) adopted and its achievements in last three years.
Economic Transformation Programme and (2)
Government Transformation Program. A new PEMANDU's methodology has gained international
methodology of initiating and managing 'labs' was recognition with adoption from Tanzania, South
unveiled to serve as a catalyst by working in Africa and Maharashtra in India. Their India
partnership with the community to ensure program titled 'Water for All – Drought Free
continued growth. Since its inception, this lab Maharashtra' Lab was conducted from February to
Lifecycle Approach towards the returns on investment are realised over an
methodology has spurred economic development June 2014. The lab was estimated to impact 115
Infrastructure Development extended period. In order to provide such stability
and social upliftment. This mechanism came to be million people through thirty two detailed initiatives
over the life cycle of a project, a holistic approach is
Laying the Foundation for the Sunrise State of Andhra known as the Performance Management and that were identified and developed by the lab.
required. The Infrastructure Mission will follow an
Pradesh Delivery Unit (PEMANDU). Below is a snapshot of
integrated approach across the life cycle of project
Given that infrastructure investments have as illustrated below:
significant gestation periods and long life cycles,

Life cycle approach towards implementing infrastructure projects

Op ons Analysis
Project Need Analysis
Project Scoping
1 Iden fica on and
Priori za on Conceptualisa on

Project Studies DPRs

2 Prepara on
Project Scoping Feasibility Report

Project Appraisal Project Structuring EIAs

3 and Approval Value for Money
Evalua on Criteria

Mode of
Implementa on
Project Award
4 Bid Documents

Project 29
Bid Process
5 Implementa on Management

Contract Resource Alloca on &

Documenta on Mi ga on
Project Monitoring
6
Monitoring &
Evalua on Framework

Claims Management
7 Project Closure
Project Closure & Exit Strategy and
Handover Formali es Transfer of Assets

49 Sunrise State of Andhra Pradesh: Infrastructure Mission 29 Sunrise State of Andhra Pradesh: Infrastructure Mission 50
Across the project life cycle, the Infrastructure
Mission will create well defined interventions to:
Ÿ Enhance the operating environment of the
sector through policy and regulatory
streamlining
Ÿ Enable better procurement by supporting
Departments on the procurement process
Ÿ Provide optimal structures and risk mitigation
support for enhancing project sustainability
Ÿ Inter departmental coordination for quick
turnaround
Ÿ Monitoring of both processes and outcomes
to provide feedback into policies, institutions
and processes
The Infrastructure Mission will help enable each of
these phases of the life cycle through calibrated
interventions in the form of policies, institutions
and processes.
The Government of Andhra Pradesh under the
leadership of the Hon'ble Chief Minister has
already undertaken several initiatives towards
building an enabling framework for facilitating
infrastructure development in the State. The key
policy initiatives include formulation of:
Ÿ Industrial Water Policy
Ÿ Electronics Policy
Ÿ Innovation and Start-Up Policy
Ÿ IT Policy
The Government will further strengthen the
institutional mechanisms for augmenting and
catalysing investments in the infrastructure
sectors. The initiatives will address policy and
process related issues pertaining to infrastructure
development. Some of the proposed interventions
to strengthen the ecosystem are:
51 Sunrise State of Andhra Pradesh: Infrastructure Mission
Policies assessment for the identified shelf of projects
Ÿ Formulate the Andhra Pradesh Public Private
Partnership Policy including the Swiss Ÿ Empanelment of consultants for various
Challenge Route to encourage PPPs as a sectors - Roads, Port, Airports, Railways
mechanism for creation of Infrastructure Power Gas, Urban Infrastructure urban
transport, tourism, Water, Environment, Legal,
Ÿ Promote cargo development through Financial Advisor y, Education, health
formulation of an integrated industrial policy Infrastructure etc.
(industrial and transportation, logistics) and
linkages to hinterland Ÿ Formulation of guidelines for Stakeholder
Engagement and Communication for early
Ÿ Formulation of Andhra Pradesh Port Policy addressing of issues
and enactment of Andhra Pradesh Maritime
Ÿ A comprehensive capacity building program
Board Act
to train a pool of government officials across
Ÿ Enactment of a Special Investment Region Act line Departments and levels on critical aspects
for development of the industrial corridors relating to infrastructure projects
Ÿ Review of the Cabotage Law to address Ÿ Streamlining proposal processing including
bottlenecks in cargo movement through ports multi-department projects, setting turnaround
times and designing of an online/automated
Institutions processing system
Ÿ Restructuring of the Infrastructure
Ÿ Development of an IT enabled post award
Corporation of Andhra Pradesh (INCAP) along
the lines of Gujarat Infrastructure monitoring and governance system for
Development Board (GIDB) and Tamil Nadu projects across their lifecycle
Infrastructure Development Board (TNIDB)
Ÿ Establishment of the Andhra Pradesh
Economic Development Board as the apex
board to shape policy issues, undertake
overall macroeconomic planning and
investment- related aspects
Ÿ Sector-wise infrastructure development and
operations regulators
Ÿ Long term financing institutions
Ÿ The Government would set up a land bank
with an initial stock of 0.4 million hectares. An
appropriate entity shall be established for
managing the land bank
Processes
Ÿ Create a framework for identification,
appraisal and prioritisation of a shelf of
credible and bankable infrastructure projects
Ÿ A process for undertaking of Value for Money
29 Sunrise State of Andhra Pradesh: Infrastructure Mission 52
Chapter 5

Resources

To meet the investment outlay of INR 12.4 lakh

crore, resources beyond available public funding
would be required to fund infrastructure
investment in the State.
 financial support to PPP concessionaires to
facilitate design, development and
implementation of PPP projects. The nature of Exhibit 15: Tamil Nadu Infrastructure
Finance Company (TNIFMC)
support is envisioned to include:

Ÿ a. Subsidy/capital grant (with appropriate

ceilings as per applicable provisions) TNIFMC will establish and manage new
Infrastructure Finance Vehicles (IFVs) to
Ÿ b. Equity augment the resource base for infrastructure
financing in the State by accessing different
Ÿ c. Loans
pools of investible funds:
Ÿ d. Government guarantees
Ÿ An Infrastructure Debt Fund (IDF)
Ÿ e. Annuities
Ÿ An Alternative Investment Fund (AIF)
Ÿ f. Other innovative modes (Category I)
In order to achieve ambitious infrastructure non-traditional funding sources that are proposed
development targets set under this Mission, it is to be tapped for investment in the Infrastructure Ÿ An Infrastructure Investment Trust (InvIT)
estimated that investments to the tune of INR 12.4 Mission projects:  Budgetary Support from the Central Government:
Government of Andhra Pradesh will seek requisite TNIFMC is the first of its kind infrastructure
l a k h c ro re i s re q u i re d f o r i n f r a s t r u c t u re
support from the Central Government through financing initiative by any State Government in
development between FY 2015 – 2029. This is
ΠBudgetary Support from the State Government:
statutory and other channels for development of India. The TNIFMC is proposed to be promoted
estimated as investment in core infrastructure and
Ÿ a.Land Acquisition Fund: in partnership with highly reputed banks and
is expected to trigger secondary and ancillary critical infrastructure projects including the Capital
Ÿ A budgetary allocation will be made to meet City Development. financial Institutions, preferably in the public
investments in other infrastructure and related
land acquisition costs for key infrastructure sector. The financing role envisaged is larger,
services, manifold in value. This investment will be
projects. covering both loan and equity to both public
spread across the identified sectors as follows: Ž Non-Budgetary Sources:
and private sector entities. TNIFMC will extend
Ÿ b.Project Development Fund: Ÿ To mobilise the investments required for the
to all the 21 infrastructure sectors enumerated
Ÿ The Government has identified a total of 122 Infrastructure Mission's targets without
Sector Investment (Rs Cr) in TNIDB
projects to be implemented in the State as a adding to the fiscal burden of the State or
Roads 2,69,776 Central Government, it is proposed to generate
part of Infrastructure Action Plan. To facilitate
Power 2,69,691 the development of these projects, it is investments through the following non-
Ports 84,000 proposed to constitute a Project Development budgetary channels.
Rail 39,095 Fund with adequate budgetary support.
Ÿ Infrastructure Financing Vehicles: It is proposed Ÿ c. Corridor Development Fund:
Telcommunica ons 2,42,251 It is proposed to mobilise resources through a
Ÿ The Project Development Fund shall be to mobilise resources for infrastructure Ÿ
Inland Waterways 2,757 projects by launching Infrastructure Financing Corridor Development Fund along the lines of
utilised to provide financial support for
Water 2,82,540 conducting project preparatory studies, Ve h i c l e s w h i c h s e r ve a s s p e c i a l i s e d the Delhi Mumbai Industrial Corridor Project
Airports 20,184 obtaining the services of subject matter investment mechanisms operating without Development Fund for developing the trunk
Gas 34,200 experts and consultants, preparing project government guarantees. These Infrastructure and link infrastructure for the two Industrial
Total 12,44,494 reports (such as Feasibility Studies, Detailed Financing Vehicles could be in the form of Corridors, viz., Vizag Chennai Industrial
Project R e p o r t s , e t c . ) , a n d c o n d u c t i n g Alternative Investment Funds and /or Corridor and the Chennai-Bengaluru Industrial
research and knowledge management Infrastructure Development Fund – Mutual Corridor.
Resource Augmentation activities (such as capacity building). Fund, formed in accordance with SEBI
The quantum of investment envisaged under the guidelines.  State and Central Public Sector Units:
Andhra Pradesh Infrastructure Mission is Ÿ c.Project Investment Fund:
Suitable models for raising funds for infrastructure
substantial and unprecedented. Given the national Ÿ To facilitate the development of PPP projects
development will be explored in collaboration with
and regional macro economic conditions, envisioned under the Infrastructure Action Plan, State and Central Public Sector Corporations
traditional models of funding alone will not suffice. it is proposed to constitute a Project Investment especially in sectors such as transportation,
The following is a list of various traditional and Fund. This Fund shall be utilised to provide mining, power etc.

55 Sunrise State of Andhra Pradesh: Infrastructure Mission 29 Sunrise State of Andhra Pradesh: Infrastructure Mission 56
 Funding from External Agencies:
Funding support for key projects would be sought
from multi-lateral and bi-lateral agencies such as
ADB, World Bank, JICA, KfW etc.
‘ Private Sector Participation:
Private sector role in infrastructure development
Exhibit 16: Growth of Private Sector in the Total Infrastructure Outlay
Risk Optimisation
The inherent characteristics of well planned
infrastructure in generating stable cash flows in the
lower risk, operational phase makes it globally a
popular vehicle for private investment. However, in
the face of continuing market inefficiency, poor
forecasting abilities and inadequate tariffs that
cannot be sufficiently addressed by regulation,
new models are now needed for economic
In cognisance of the above risk sharing framework, Government of Andhra Pradesh will evaluate suitable
models for different categories of projects for infrastructure creation, operation and maintenance.
57 Sunrise State of Andhra Pradesh: Infrastructure Mission
has increased substantially over the last two
decades. Twelfth Plan estimates about 50 percent
of the total investment in Infrastructure at the
national level is expected to come from the private
sector. Andhra Pradesh seeks to proactively tap
into private sector funding through the PPP mode
for all projects feasible for private participation.
infrastructure to attract market appetite for private
sector investment,under which the government
shares or retains demand risk are now needed for
economic infrastructure to attract market appetite
for private sector investment. In the 2015 Union
Budget speech the Finance Minister mentioned
that the Government shall evaluate existing
policies and consider taking more risk on PPP
projects.
29
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