Best Business Opportunities in Andhra Pradesh - Identification and Selection of right Project, Thrust areas for Investment, Industry Startup and Entrepreneurship
Agro-based industry: Project Opportunities in Andhra Pradesh
Agro-based industry would mean any activity involved in cultivation, under controlled conditions of agricultural and horticultural crops, including floriculture and cultivation of vegetables and post-harvest operation on all fruits and vegetables. The development of agro-industries has assumed crucial importance in the economic planning and progress of the country. India is one of the world's largest producers of food, and is the largest producer of milk, sugarcane and tea, as well as the second largest producer of rice, wheat, fruits, and vegetables. Nearly 70% of the population depend on agriculture and agro-based industries. The agro industry is regarded as an extended arm of agriculture. The development of the agro industry can help stabilise and make agriculture more lucrative and create employment opportunities both at the production and marketing stages. The broad-based development of the agro-products industry will improve both the social and physical infrastructure of India. Since it would cause diversification and commercialization of agriculture, it will thus enhance the incomes of farmers and create food surpluses.
Andhra Pradesh produces over 9.57 million tons of fruits, vegetables and spices. Andhra Pradesh is the largest egg producer in India 1,000 kilometres of coastline, 8,577 kilometre river length and 102 reservoirs spread over an area of 2.34 lakh hectares have helped Andhra Pradesh develop as the principal producer of marine and fresh water foods, including fish and prawn. State is blessed with different agro-climatic conditions for growing a variety of horticulture crops like fruits, vegetables, spices, tuber crops, plantation crops and floriculture, largest producer of rice in India. The state is a leading producer of cash crops like tobacco, groundnut, dry chilly, turmeric, oilseeds, cotton, sugar and jute, second-largest producer of horticulture products in India; production is expected to reach 22.90 million tonnes by 2020. State produces some of the finest varieties of mangoes, grapes, guavas, papayas and bananas. Number one position in production of sweet lime, lime, papaya, chilly, turmeric and palm oil, second in the production of tomato and coriander, third in pomegranate, fourth in tapioca, lady finger and grapes, and fifth in onions. To achieve the growth envisaged for the agricultural sector, the state intends to promote investment of around US$ 17.07 billion by 2010, while the total investment until 2020 would be around US$ 39.02 billion
In the recent Union Budget (2007-08), agriculture has got considerable attention with the various policy initiatives from the side of finance ministry. Some of the imp0ortant policies are:
· During 2006-07 (until December 2006), 53.37 lakh new farmers were brought into the institutional credit system. A target of Rs. 225,000 crore as farm credit and an addition of 50 lakh new farmers to the banking system have been fixed for the year 2007-08. The two per cent interest subvention scheme for short-term crop loans will continue in 2007-08, and a provision of Rs.1,677 crore has been made for that purpose.
· A special purpose tea fund has been launched for re-plantation and rejuvenation of tea. Government soon plans to put in place similar financial mechanism for coffee, rubber, spices, cashew and coconut.
· Accelerated Irrigation Benefit Programme (AIBP) has been revamped in order to complete more irrigation projects in the quickest possible time. As against an outlay of Rs.7,121 crore in 2006-07, the outlay for 2007-08 has been increased to Rs.11,000 crore.
· Rs.17,253 crore had been budgeted for fertilizer subsidies in 2006-07. However, according to the Revised Estimates, this will rise to Rs.22,452 crore.
· The National Insurance Scheme (NAIS) will be continued for Kharif and Rabi crops during the year 2007-08.
· The two per cent interest subvention scheme will continue in 2007-08.
· Rs. 100 crores have been allocated to new Rain fed Area Development Programme, set up for coordinating all schemes for watershed development.
Mineral: Project Opportunities in Andhra Pradesh
A mineral is a naturally occurring solid chemical substance formed through biogeochemical processes, having characteristic chemical composition, highly ordered atomic structure, and specific physical properties. Common rocks are often made up of crystals of several kinds of minerals. Minerals constitute the backbone of economic growth of any nation; India is endowed with significant volume of mineral deposits. It is estimated that India holds abundant reserves of minerals such as non coking coal, iron ore, bauxite (metallurgical grade), dolomite, gypsum, limestone and mica; adequate level of reserves of minerals such as lignite, chromite (metallic), manganese, zinc, graphite; but deficiency in mineral reserves such as coking coal, chromite (refractory grade), bauxite (chemical grade), copper, lead, apatite, rock phosphate and kyanite.
Andhra Pradesh is the second largest storehouse of mineral resources in India. A total of 48 minerals were located with vast explored resources of coal, limestone, bauxite, barites, mica, beach sands, granite, limestone slabs etc., and good resources of oil and natural gas, manganese, asbestos, iron ore, ball clay, fireclay gold, diamond, graphite, dolomite, quartz, tungsten, steatite, feldspar, silica sand, Uranium, beach sands minerals, etc. State is endowed with the internationally known black, pink, blue and multicoloured varieties of granites. Over 400 mines have reported production in the state of Andhra Pradesh. Some of the major mineral based industries in the state include cement, ceramic & refractories, and sulphuric acid.
The state stands First in value of mineral production, contributing 9 to 10 per cent of the country’s mineral value production. Andhra Pradesh has huge reserves of key minerals such as coal, limestone, granite, bauxite and barytes. In fact, the state is estimated to have one-third of the country's total mineral wealth. Andhra Pradesh is the only southern state with coal deposits and has 20 per cent of the country's limestone reserves and 27 per cent of its bauxite reserves. The world's best granite, Black Galaxy, is found only in Andhra Pradesh. Andhra Pradesh is the second largest producer of cement in the country
The Andhra Pradesh mineral policy aims at optimum exploitation, scientific development, value addition, marketing and exports under private and joint sectors. Mineral, cement and jewellery sectors are identified as thrust areas in the international policy. Simplified entrepreneur friendly structural changes are brought out in the state mineral policy, decentralised, deregulated and introduced prefixed time frame in the processing of mineral concessions at each level for faster implementation of projects. The government has thrown the mineral sector open for private investment & like to withdraw from areas in which their presence is no longer required & disinvest from these public sectors. The ministry of mines regulates & promotes the activities of mining in the country and is responsible for survey and exploration of all the minerals other than coal, natural gas, petroleum and atomic minerals; mining & metallurgy of non ferrous metals like aluminium, copper, zinc, lead, gold, nickel; providing administration for prospecting and mining laws
Tourism: Project Opportunities in Andhra Pradesh
India’s tourism industry is experiencing a strong period of growth, driven by the burgeoning Indian middle class, growth in high spending foreign tourists, and coordinated government campaigns to promote ‘Incredible India’. Tourism in India is the largest service industry, with a contribution of 6.23% to the national GDP and 8.78% of the total employment in India. The tourism industry has helped growth in other sectors as diverse as horticulture, handicrafts, agriculture, construction and even poultry.
Andhra Pradesh has a variety of attractions including beaches, hills, wildlife, forests and temples. The state has a rich cultural heritage and is known for its rich history, architecture and culture. Andhra Pradesh is the top tourist destination in India. The weather is mostly tropical. Andhra Pradesh attracts the largest number of tourists in India. 3.2 million Visitors visit the state every year. With more than 600 tourist locations, the second largest coast line in the country, 1000 years of history and pilgrimage centres of every major religion of India, Andhra Pradesh is truly "The essence of India". Many sites still depict that Buddhism had its major significance and it was a prime Buddhist centre. Andhra Pradesh is popularly known as “Food bowl of South”. Hyderabad is the capital of Andhra Pradesh, which is a rich cultural city with many places of interests, palaces, museums, parks and religious sites. Andhra Pradesh is home to many wildlife and natural forest reserves with a large variety of flora and fauna. Diverse landscapes, deciduous forest, coastal belt, dense mangrove forest and many rivers of religious importance also originate in Andhra Pradesh. Largest Indian tiger reserve at Nallamala forest and pelican refuge at Kolleru Lake forms an important location for wildlife lovers.
Some of the salient features of the Tourism Policy are:
· The policy proposes the inclusion of tourism in the concurrent list of the Constitution to enable both the central and state governments to participate in the development of the sector.
· No approval required for foreign equity of up to 51 per cent in tourism projects. NRI investment up to 100% allowed.
· Automatic approval for Technology agreements in the hotel industry, subject to the fulfilment of certain specified parameters.
· Concession rates on customs duty of 25% for goods that are required for initial setting up, or for substantial expansion of hotels.
· 50% of profits derived by hotels, travel agents and tour operators in foreign exchange are exempt from income tax. The remaining profits are also exempt if reinvested in a tourism related project.
Automotive Industry: Project Opportunities in Andhra Pradesh
The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units. Automotive industry is the key driver of any growing economy. It plays a pivotal role in country's rapid economic and industrial development. It caters to the requirement of equipment for basic industries like steel, non-ferrous metals, fertilisers, refineries, petrochemicals, shipping, textiles, plastics, glass, rubber, capital equipments, logistics, paper, cement, sugar, etc. It facilitates the improvement in various infrastructure facilities like power, rail and road transport. Due to its deep forward and backward linkages with almost every segment of the economy, the industry has a strong and positive multiplier effect and thus propels progress of a nation. The automotive industry comprises of the automobile and the auto component sectors.
Andhra Pradesh recognizes the enormous economic potential of automotive industry for the future development of the state. The economic benefits of the automobile industry to a host economy are legion. The immediate tangible benefits of the automotive industry are employment generation, fast development of key linkage industries liked steel, plastics, paints, etc., improvement in technological and related skill levels in various supporting industries, increased exports, increased revenues, etc. The automotive component manufacturing industry has a major share in the economic map of Andhra Pradesh. An abundance of skilled and non-skilled labourers helped the industry flourish in Andhra Pradesh and today there are more than 100 automotive component manufacturing companies in the state.
The government policies on Indian automobile industry have been framed in order to aid in the expansion of the automobiles sector in India. The Auto Policy has spelt out the direction of growth for the auto sector in India and addresses most concerns of the automobile sector, including-
· Promotion of R&D in the automotive sector to ensure continuous technology up gradation, building better designing capacities to remain competitive.
· Impetus to Alternative Fuel Vehicles through appropriate long term fiscal structure to facilitate their acceptance.
· Emphasis on low emission fuel auto technologies and availability of appropriate auto fuels and encouragement to construction of safer bus/truck bodies - subjecting unorganised sector also to 16% excise duty on body building activity as in case of OEMs.
The government has recently proposed for an infrastructure that will provide one stop clearance for any kind of proposal for foreign direct investment in the automotive sector. This will include the local clearance system also for the same purpose. There are also plans for imposing a 100 % tax deduction on export profits. The government has also proposed for a concession in import duty for the establishment of new manufacturing units and industrial holdings.
Biotechnology: Project Opportunities in Andhra Pradesh
Biotechnology is gaining increasing ground in India. It is said that the 21st century belongs to this technology. Biotechnology is a frontier technology which has the potential to provide very substantial benefits to society in a wide range of sectors such as agriculture, medical and health, forestry, animal husbandry, environment protection, and improving the quality of products and services. The frontier technology is finding application in the field of healthcare, food, agriculture, horticulture, biopharmaceuticals, environmental protection, etc. The commercialisation of this technique for the betterment of mankind is poised to grow rapidly. The State is leading centre for Biotechnology and several global and Indian Biotechnological companies, global renowned research institutions.
Andhra Pradesh is the leading centre for Biotechnology and is known as Vaccine Capital of India. The Biotech industry is Andhra Pradesh accounts for 43% of the total biotech revenue generated by companies in South India. Hyderabad has become the Centre for International Bio Events like Bio India and Bio Asia. Technology will play a critical role in accelerating the pace of development in the State. Andhra Pradesh is endowed with rich bio-resources. There are 7 agro-climatic zones across the State, with 19 major food and commercial crops grown in different parts of the State. There are more than 5000 species of trees and, out of these, 2000 species are flowering trees. About 40 percent of the land is utilised for agriculture and 23 percent of the land is covered by forests in the State. Andhra Pradesh has unique proven expertise, commercial success and thus a competitive edge in biotechnology. With the increasing convergence of these technologies, Andhra Pradesh is poised to forge further ahead. In Agri-biotech, tissue culture for food crops and ornamental plants has been taken up in several parts of the state with considerable success.
The Government of Andhra Pradesh has identified the biotechnology sector as engine of economic growth and one of the thrust areas that has the potential to make a positive contribution to the life of the common man. The Government has consistently pursued proactive policies and undertaken several initiatives to support and promote the biotechnology sector in the State. Government of Andhra Pradesh has several firsts to its credits in the area of Bio sector. Key Highlights of the Policy:
· Single Window Clearance System
· Sales tax of 1%
· Provision of rebate based on the employment opportunity created
· To support the various initiatives being undertaken, the Government proposes to redraft the biotech policy and introduce positive changes that would enable an investor friendly environment.
Waste management: Project Opportunities in Andhra Pradesh
Waste utilization, recycling and reuse plays a major role in limiting resource consumption and the environmental impact of waste. Recycling is an integral part of any waste management system as it represents a key utilization alternative to reuse and energy recovery (Waste-to-Energy). Which option is ultimately chosen depends on the quality, purity and the market situation. Hazardous waste management is a new concept for most of the Asian countries including India. The lack of technical and financial resources and the regulatory control for the management of hazardous wastes in the past had led to the unscientific disposal of hazardous wastes in India, which posed serious risks to human, animal and plant life.
In A.P., the collection and transportation constitutes 80 to 95% of total budget of solid waste management, hence it forms key component in determining the economics of whole waste management. Besides other factors like collection and transportation time, routing, the design and carrying capacity of vehicles, types of bins will have bearing effect on the efficient waste management system. It is preferable to use vehicles having mechanical loading system and with closed system of having no dust/smell nuisance during the transportation.
National policy on waste management is set out in the October 1998 policy statement on waste management - Changing our Ways. It outlines the Government's policy objectives in relation to waste management, and suggests some key issues and considerations that must be addressed to achieve these objectives. The policy is firmly grounded in an internationally recognised hierarchy of options, namely prevention, minimisation, reuse/recycling, and the environmentally sustainable disposal of waste which cannot be prevented or recovered.
Petroleum, petrochemicals, Chemicals: Project Opportunities in Andhra Pradesh
The Petroleum, Chemical and Petrochemical industry in India is well established and has recorded a steady growth over the years. The industry offers a wide scope for development that contributes positively to economic growth and regional development. The future outlook for the industry is bright with positive developments anticipated in various chemical and sub-sectors. The Indian chemical industry is an integral component of the Indian economy contributing around 67% id Indian GDP (Gross Domestic Product). In terms of consumption the chemical Industry is its own largest customer and accounts for approximately 33% of the consumption. Chemical Industries are very important for the economy of any country. This is because; these Chemical Industries supply the farmers Pesticides and Fertilizers which are essential for crop growing. In this way Chemical Industries contribute to agriculture and food self sufficiency of every country.
Andhra Pradesh is identified to locate PCPIR (Petroleum, Chemical, and Petro-Chemical Investment Regions) near Visakhapatnam in an area of 250 Sq. Kms (62,000 acres).
Ministry of Chemicals & Fertilisers, Department of Chemicals & Petrochemicals, and Government of India had prepared the PCPIR policy duly addressing the following issues and policy would be announced very shortly:
· Feedstock availability and its pricing,
· Incentives and package of the Government of India,
· Identification of location of PCPIRs,
· legal framework for the PCPIR policy,
· State’s commitment and their incentive packages
· Mechanism for inter-action with identified / prospective investor’s / developers.
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