Investment Promotion

Focus Sector
Higher Education
Andhra Pradesh is a forerunner in higher education with a legacy of top universities. It is amongst the top six states for engineering, for example, accounting for about 65% of all intake. The state passed the AP Private Universities Act in 2015 – path-breaking legislation which eases the process of setting up credible private higher education establishments. One of the most forward-looking higher-education laws in the country, the Act permits universities to receive approval in about 140 days based on recommendations from an appointed panel of experts.

Amaravati is envisioned as a hub for top-tier universities with a focus on providers which are multi-disciplinary or renowned in an anchor sector. The city plans to explore collaboration with leading international education providers as well. A model for new-age education, the city aims to promote innovative delivery models such as online, hybrid and field-and-forum courses, to bring world’s best professors to Amaravati through virtual classrooms. To attract faculty and students, the city will need to be highly livable and offer a strong social infrastructure, dining, entertainment, etc.

The Amaravati Advantage:
1. Ease of business:
  The AP Private Universities Act, the most forward-looking bill in India, allows universities to receive approval in about 140 days based on recommendations from an appointed panel of experts.
2. Economic activity in vicinity:
  Co-location with growing economic hubs which provide internship and career opportunities to students. Amaravati is envisioned as one of the fastest-growing economic hubs which could generate nearly 4–6 lakh jobs over the next 10 years.
3. Social infrastructure:
  Designed as per smart-city benchmarks, Amaravati will be able to offer world-class social infrastructure amenities.
4. Connectivity:
  Amaravati is well-connected to all major modes of transport and nearby Tier 1 cities – it has two highways and is about 50 km. from the airport, about 20 km from the Vijayawada railway junction, and 300–600 km from Hyderabad, Chennai and Bangalore.
5. Availability of encumbrance free land
Health
Quality healthcare is fundamental to Amaravati’s vision of happiness and healthy living. Studies worldwide have shown that residents often base their relocation decisions at least partly on the quality of healthcare. Mercer’s Quality of Living Survey of 230 cities globally identified ‘Medical and health considerations’ as the fourth most-important parameter for livability. Developing robust healthcare delivery facilities will be a crucial enabler to attract and retain talent as well as maintain a healthy work force.

The Amaravati Advantage:

Four main factors make a location favorable for healthcare delivery providers:
1. Local unmet demand: Amaravati is expected to be one of the fastest-growing cities in India with a projected population of 3.5 to 6 lakh in the first 10 years. Given the greenfield nature of the city, this growing population will provide unmet demand for quality healthcare.
2. Availability of encumbrance free land.
3. Connectivity: Amaravati is well-connected to all major modes of transport and nearby Tier 1 cities – it has two highways and is about 50 km. from the airport, about 20 km from the Vijayawada railway junction, and 300–600 km from Hyderabad, Chennai and Bangalore.
4. Social infrastructure, livability and the ability to attract talent: Amaravati, pursuing its vision of the happiest and healthiest city in India, is aimed to offer a unique living experience for healthcare professionals and their families. With schoolsin walking distance, low crime rates, abundant greenery and recreation and distinctive retail, entertainment and dining options, the city is expected to be a preferred location to raise a family.
5. Medical Tourism:
  A unique Opportunity for Amaravati
6. With its vision of happiness and health, Amaravati aims to emerge as one of India’s leading hub medical tourism with a special focus on natural therapies such as Ayurveda, Yoga, Naturopathy and Homoeopathy and niche offerings such as luxury healthcare.
7. Through concerted public-private efforts, the city plans to offer at least one or two JCI accredited facilities and develop the end-to-end ecosystem required to attract medical tourism such as tie-ups at a government level, travel support for incoming tourists, global connectivity and world-class infrastructure. Support will begin from the outset as tourists plan their visits, include handholding through treatment, and continue until they return home and recover. This would ensure that the People’s Capital not only serves its own healthcare needs but also becomes a preferred healthcare destination for patients from India and abroad.
Tourism
Amaravati, the riverfront capital city of Andhra Pradesh, is centrally located with close connectivity to the developed cities of Vijayawada and Guntur. The city is situated on the southern banks of the Krishna River, lies close to the hill ranges of Eastern Ghats and is home to the delicate flora and fauna of the Krishna basin. This lends the city and its surrounding area a unique natural beauty. Amaravati also boasts of rich historic and cultural roots with close ties to Buddhism and Hinduism.

The erstwhile seat of power of the Satavahana dynasty, Amaravati has a fascinating history closely intertwined with the early Buddhist culture that flourished in the region from 400 BC to 1100 AD. The Satavahana rulers made remarkable contributions to Buddhist art and culture by encouraging and propagating the Amaravati style of sculpture across their kingdom.

Vision & Concept for Amaravati tourism

The vision for the tourism value proposition of Amaravati has been defined as:'Experience all-round wellness amidst natural tranquility steeped in ancient history'

The tourism vision is aligned with the city's vision of high-quality, healthy and sustainable living. It will conserve the Metropolitan region's natural resources by raising awareness, and preserve its heritage and history of tranquility. It will promote wholesome tourism development, and contribute to residents’ quality of life by balancing development and environmental and cultural preservation.

To make the best use of Amaravati's natural, cultural and historic resources, four key themes have been shortlisted:
1. Healthy living, wellness & Yoga
2. Heritage & Culture
3. Buddhist Tourism
4. Nature inspired tourism
High-end services including IT, Financial services and R&D
Information technology, IT engineering services (ITES) and financial services are crucial sectors for India and Amaravati.

Major focus segments are:
1. IT Services: With a market size of about 5 lakh crore rupees in 2015 and annual growth of 13-14%, this segment accounts for 47% of the total revenue of IT-BPM industry.It includes project-based services (IT consulting, systems and network integration, software testing), outsourcing and managed services (application management, IS outsourcing), and support and training. Over 67% of the revenue of this sector comes from the export market. Banking, financial services and insurance (BFSI) is a key vertical with export revenues of over two lakh crore rupees during 2013, accounting for 41% of total IT-BPM exports from India. Given Amaravati’s proximity to education clusters and uninterrupted power supply, this can be an important segment for the city. Development of top class incubation centers and research labs can make the region more attractive for well-educated individuals who are crucial to this segment.
2. Business process management: This segment has a market size of nearly 1.8 lakh crore rupees and accounts for 18% of total revenue of the industry. Around 85% of revenue of this segment comes from export market and it is the largest segment in terms of creating employment with 3.1 million jobs. It involves delegation of IT business processes to an external provider and thus, includes traditional BPO and business process as a service (BPAAS). Since BPO will need low skill workers, this may be an easier segment to implement compared to IT services.
3. Packaged software, ER&D and product development: This segment accounts for 16% of the total revenue for the industry with a market size of roughly 1.6 lakh rupees in 2015. Activities include Software development and cloud infrastructure, Management of processes, infrastructure and equipment to create products and services, R&D for development of hardware and software technologies (including CAD), Offshore product development.
4. Hardware:
  The hardware segment had a market size of about 1.2 lakh crore rupees in 2015. The domestic market accounts for a significant share and is growing as the penetration of personal computers and laptops rises in India.
5. Banking and non-banking financial companies: This category accounts for 75% of total income of the sector and has grown by more than 15% in each of the last five years. It includes scheduled commercial banks, regional rural banks, cooperative banks, and NBFCs. Amaravati can be an attractive location for banks, especially PSBs, to set up regional corporate offices, training centers or central processing centers.
6. Insurance:
  This segment includes life, general, and health insurance, and reinsurance. It accounts for 18% of the income of the financial services sector. The life insurance market grew from nearly 67,000 crore rupees in 2002 to USD 52 billion in 2014, with penetration rising to 3.1% in 2014 from 2.2% in 2001. There is a lot of room for growth, since this penetration is far below the global average of 6.3%. The non-life insurance market grew from about 17,000 crore rupees in 2002 to about 93,000 crore rupees in2015 at a CAGR of 9.5%. Motor and health segments have driven non-life premiums with 39.4% and 27.7% share respectively.
7. Other financial intermediaries: It includes collective investment companies, credit rating agencies, exchanges, brokers and market intermediaries and accounts for around 8% of the total income for the sector.
8. SMAC:
  Disruptive new technologies such as SMAC are offering new growth opportunities across verticals for IT companies, leading to digitization of the entire business model. The SMAC market is expected to grow to 15 lakh crore rupees by 2020. Within SMAC, analytics and cloud are likely to be the biggest growth drivers. Indian public cloud services market is expected to grow (at ~33% CAGR over next 2 years) to about 7,000 crore rupees by 2016 with IT players offering services across the board.
9. Digital India:
  The government has approved a lakh crore rupee to implement the Digital India initiative. It is an effort to connect all villages and cities by broadband, develop smart cities and introduce eGovernance in every government department. The industry body NASSCOM and vendors like Cisco are keen to work with the government to tap the opportunity. Facebook and Microsoft have shown interest in partnering with the Government in providing last-mile connectivity.
10. Non-linear models: Indian IT providers will aggressively push non-linear models, such as raising revenues with fewer employees and product-driven growth. Revenue productivity per employee has grown by 10 to 20% over the last three years. Service providers are evolving from vendors to partners with risk-sharing revenue models, for example. They are betting on ‘projects to platforms’ for the next phase of growth, such as from ‘FTE-based’ to platform- and product-based delivery.
Government
The government is a critical first-anchor which will contribute to the vibrancy of Amaravati. As the administrative capital of Andhra Pradesh, the city will house the members responsible for effective functioning of the state machinery. This includes ministers, bureaucrats, judiciary, employees of various government departments and the police forces. Currently, most of these administrative functions are still based in Hyderabad, the shared Capital of Telangana and Andhra Pradesh until 2024.

Over 9,000 employees are expected to relocate to Amaravati across cadres over the next few months. A large scale relocation of the personnel will be required for a smooth transition of governance mechanisms from Hyderabad to Amaravati. At such a time of flux, it would be necessary to retain talent who would drive the growth of the state and strive to achieve the state vision. All efforts will be made to make this move seamless and comfortable, and to provide high quality livability in the city for its first residents, in line with the vision. Making Amaravati a destination of choice for the government to emerge as a preferred destination for government employees, the state capital will explore measures such as those detailed below:
1. Facilitating housing for employees
2. Development of Social Infrastructure and measures to improve lifestyle
3. State of the Art Workplace
Electronics
Even though India is far behind in global rank for electronics, it has the potential to outperform many of its peers in the long term. The vast opportunities exists in areas like access (wireless), digitization (electronic society), security and surveillance, education (digital classrooms), energy (smart meters), healthcare (affordable medicine/telemedicine) and automotive (low cost emission). Of the four stakeholders, viz. Industry organizations, private sector, educational and research centers and government, the latter has embarked upon a series of measures to ensure that conducive ecosystem is built to cater to long term growth and sustainability of this industry. These measures include – develop tech parks and high-tech clusters, encourage partnerships and foreign technology-based venture capital investments, increase core spending on R&D, share risks in launching and running industry initiatives, strict implementation of IP rights to promote innovation and provide financial backing for initiatives, human resource development.

The long term aspiration for Amaravati is to clearly emerge as the preferred destination as an electronics manufacturing hub focusing on design and fabrication.

In order to achieve that vision and create a vibrant ecosystem of companies, it is expected that the city would need to evolve over the course of the next 10-15 years and build its capabilities in various segments of the sector. Beginning with a focus on assembly of electronics products in the initial years, the objective should be to expand to manufacturing of components over the course of 6-10 years. This could lead to a significant increase in local value addition in the sector – and could create a localized supply chain for components and parts which could be used in an established assembly ecosystem. However, over the longer term, the industry sector should be prepared and nurtured to attract design and fabrication companies which could bring in significant investmentin hi-tech plants as well as the need for highly skilled talent in these segments of the industry sector.

The Amaravati Advantage:
1. Skilling & Talent availability
  
  Availability of literate, semiskilled labour
  
  II. Proposed Centre of excellence for fabless semiconductors and other capacity building initiatives in AP Electronics Policy
1. Quality of power
  
  24X7 availability of Power
1. Financial Incentives
  
  GoI’s M-SIPS and EDF policy
  
  Additional fiscal incentives as per NPE 2012 and AP electronics policy 2014–20
1. Port Connectivity
  
  2 deep-water ports with container terminals within 300 km
1. Airport Connectivity
  
  Domestic airport within about 50 km
  
  International airport within 250 km
1. Ease of Doing Business
  
  #2 state in ease of doing business
  
  Empowered mission for electronics and IT, single window, time-bound approvals
Fashion & Apparel
Andhra Pradesh has a long-standing legacy in the textile and apparel sector. It is the third-largest producer of cotton in India, producing medium-grade and superior long staple varieties. The capital region is especially endowed for this sector. Guntur is the second-largest cotton-producing district in India and renowned for its handloom industry. Vijayanagaram, East Godavari, Prakasam and Kurnool are the other major cotton producers in the region. Brandix India Apparel City (BIAC), a 1,000 acre park in Visakhapatnam, is one of the most ambitious integrated textile parks in India.

Given Amaravati’s natural endowment of cotton and legacy of textile manufacturing and garmenting, it may be developed as a strong hub for the sector. The city could focus on thenon-polluting downstream segment of garmenting, with textile mills and dyeing plants outside city limits. Amaravati is aimed to develop a hub with high environmental and social standards to produce organic cotton, for example, and fair-trade products. In the long run, the city could emerge as a global brand known for its earth- and people-friendly practices in addition to its competitive costs and high productivity.

Amaravati’s long-term vision is to become a design hub with the highest productivity in India, and a preferred global sourcing destination for high-quality ‘ethical’ garments.The apparel and fashion sector at Amaravati is envisioned to evolve in the long run from a contract manufacturing destination to an original design and brand development hub. The sector can be developed along four key areas:
1. I. Design and innovation:
  
  Amaravati aims to build a strong design district which will be home to leading Indian and international design schools and fashion houses. With iconic landscaping and architecture, this district will create an environment of creativity and innovation and will promote the emergence of original brands and designs.
2. II. Environmental and social sustainability:
  
  Through dedicated promotion and implementation of environmentally and socially friendly practices, the city will have the potential to emerge as a global brand which is synonymous with guilt-free garments. From organic cotton and pollution-free production to fair-trade and people empowerment, the city could offer garment manufacturers an ethical sourcing destination while maintaining a cost-effective value proposition.
3. III. Productivity:
  
  India has low productivity compared to leading manufacturers such as China. Amaravati aims to offer the most productive Indian hub for apparel by supporting and disseminating practices such as lean manufacturing, technology upgrades, reliable infrastructure and worker training.
4. IV. Global sourcing destination
  
  Despite the high cost of operations, India is emerging as an attractive sourcing destination given increasing challenges faced by competing nations. For example, China is struggling with rising labour costs, and Bangladesh is facing compliance and labour-management problems. Given macro trends and India’s increasing attractiveness, Amaravati aims to develop as a preferred sourcing destination for apparel globally and support improving access for local manufacturers to global markets through measures such as trade and fashion shows, tours in partner cities, quality-control certifications and an international trade help desk.
Engineering Manufacturing
1. In 2015, the global medical device industry generated revenues of INR 1.5 million crore. The US leads the industry with 38% of the market, followed by Western Europe (Germany, France, the UK, and Italy) at 25% and China at 21%. The industry is growing at about 4.4% annually and should generate revenues of INR 2.9 million crore by 2018.The sector’s key drivers are cost containment, pricing and reimbursement controls and regulatory issues. India is home to Asia’s fourth-largest medical device industry, which was dominated by domestic players until 1991, when India opened its markets to other players. The technological expertise of global leaders helped them gain share quickly, though many domestic players were quick to learn and managed to survive.
2. Amongst medical device segments, small and medium-scale apparatus has a higher potential because the raw materials required can be sourced locally, and only 40% of products are manufactured locally. The other segments are not as interesting; large-scale apparatus represent just 6% of the industry, for example, and has the slowest growth at 11%.157 Since 90% of needs are met by imports, and the segment is very small, focusing on it would be of no use. The consumable segment is a highly fragmented, with over 750 companies in the space and only a handful with revenues of over INR 50 crore.158 Also, since consumables are required on regular basis by all customers, companies need strong distribution channels and huge operational expenses, leaving small profit margins. Implants have the highest growth rate of 19%, but they represent just 5% of the industry, and over 90% of domestic needs are met by imports.
3. Machine tools help companies produce critical components to meet precise industry specifications and are the bedrock of many new industries. Demand for machine tools in India was about INR 12,200 crore in 2015 and is likely to grow to 20,200 crore in 2018 at a CAGR of 18.3%.159 India today is a net importer of machine tools . Total consumption has more than doubled since 2006, with 2012 being a peak year, and the industry has moved toward local production with less reliance on imports.
4. Machine tools can be categorized by their purpose and the technology used. They can be segmented into metal-cutting tools and metal forming, for example, and by conventional and computer numerical control (CNC).
5. Driven by client needs, the industry is moving more towards sophisticated CNC machinery; local players need to build capabilities to meet this demand, but high investment costs create resistance to improving technology. However, the Make in India program , along with state level exemptions, are geared to help bridge this supply gap locally.
6. Machine tool exports are negligible, worth about INR 280 crore in 2015.160 The Indian Machine Tools Manufacturers Association’s export promotion program aims to boost this number through various benefit programs and coaching to help Indian manufacturers compete on quality and price in the global market.
Food Processing
Food processing is a critical growth and employment engine for India, Andhra Pradesh and Amaravati. The nation is a global powerhouse for agriculture and food processing, ranking fifth overall in exports10, production and consumption, second in fruit and vegetable production (10% of world production) and first in terms of milk production (27% of world production).

Andhra Pradesh, known as the ‘Rice Bowl of India’, is a leading state for agriculture and food processing. It ranks in the top five for the production of rice, maize, tomatoes, sunflower, mango, sugarcane, jowar and pulses such as arhar, tur and gram.18 Andhra Pradesh enjoys a diverse climate with five agro climatic zones and 8.45 million hectares of net cultivable area and fertile river systems of Godavari, Krishna, Tungabhadra, Vamsadhara and Penna. The combination of natural endowments and developed infrastructure, irrigation systems, utilities and manpower (for example, Andhra Pradesh has a 70% literacy rate, 58 agricultural research stations and one sugar cane research station) make this a favored state for food processors in the country.

With the region’s many advantages, Amaravati can emerge as a hub for processing the top crops in the region including sugarcane, rice, tomato, maize and mango. It could focus opportunistically on other surplus crops including banana, lemon, brinjal, pulses, groundnut, coconut, and cabbage. In the long term, Amaravati is envisioned as a hub for new-age agriculture and food processing driving productivity improvements and innovations for India and Asia. The long-term goal of the city is to emerge as the region’s top destination for research and development, training and implementation in progressive agricultural practices such as greenhouse farming, precision farming, vertical farming, fustigation, hydroponics and automation.

In the short and medium term, Amaravati aims to promote ecological farming practices while offering high-quality infrastructure at competitive rates.To build a vibrant hub for food processing, Andhra Pradesh Metropolitan Region Development Authority plans to explore the following implementation ideas and requirements:
1. Establish organic farming practices
2. Create a food processing hub with shared infrastructure within the industrial park
3. Leverage regional advantages of top crops in Krishna and Guntur
4. Develop sector infrastructure including cold chains and warehousing
5. Promote Amaravati as a hub for modern trade sourcing
6. Improving productivity of local farmers
7. Focus on value-added and progressive farming services

9 Theme Cities

A city of 9 cities

To realize the economic strategy and create a vibrant global destination for people to cherish living in, a well-designed theme city based land use plan is being transformed into impactful project.

Government City

Knowledge City

Tourism City

Health City

Electronic City

Finance City

Media City

Sports City

Justice City

Types of Land use	Public Auction	Public Tender	Quality cum Price based selection	QBS	On Application/Nomination	Randomized Selection
Residential	Yes	Yes	Yes	No	No	Yes
Commercial	Yes	Yes	Yes	Yes	No	No
Industrial	No	No	Yes	Yes	Yes	No
Institutional facilities	No	No	Yes	Yes	Yes	No
Infrastructure Development reserve	No	No	No	Yes	Yes	No
Open space and Protected area	No	No	Yes	Yes	Yes	No
Composite	Yes	Yes	Yes	Yes	No	No

Types of Land use

Public Auction

Public Tender

Quality cum Price based selection

QBS

On Application/Nomination

Randomized Selection

Residential

Yes

Commercial

Yes

Industrial

Yes

Institutional facilities

Yes

Infrastructure Development reserve

Yes

Open space and Protected area

Yes

Composite

Yes

S.No	Name	Contact No	Countries
1	Divya Karlapudi	7095599138	China, South Korea, Japan, Malaysia, Singapore, Thailand, UAE, Saudi Arabia, Qatar, Oman, Bahrain, Kazakhstan, Turkmenistan, Turkey
2	Vishnu Prasad Pinnamaneni	7995015745	UK, Austria, Switzerland, Belgium, Germany, Ireland, Denmark, Swedan, Finland, Norway, Netherland
3	Narendra Yendru	9951148888	USA, Canada, Brazil, Australia, New Zealand, Russia, France, Spain, Portugal, Italy

S.No

Name

Contact No

Email Id

Countries

Divya Karlapudi

7095599138

China, South Korea, Japan, Malaysia, Singapore, Thailand, UAE, Saudi Arabia, Qatar, Oman, Bahrain, Kazakhstan, Turkmenistan, Turkey

Vishnu Prasad Pinnamaneni

7995015745

UK, Austria, Switzerland, Belgium, Germany, Ireland, Denmark, Swedan, Finland, Norway, Netherland

Narendra Yendru

9951148888

USA, Canada, Brazil, Australia, New Zealand, Russia, France, Spain, Portugal, Italy

India’s Happiest and Healthiest city

Mission:

Focus Sector

The Amaravati Advantage:

The Amaravati Advantage:

Vision & Concept for Amaravati tourism

To make the best use of Amaravati's natural, cultural and historic resources, four key themes have been shortlisted:

Major focus segments are:

The Amaravati Advantage:

Skilling & Talent availability

Quality of power

Financial Incentives

Port Connectivity

Airport Connectivity

Ease of Doing Business

I. Design and innovation:

II. Environmental and social sustainability:

III. Productivity:

IV. Global sourcing destination

a. Medical Devices

b. Machine tools

9 Theme Cities

Following methods of land allocation are under implementation in Amaravati region:

On Application and/or by Nomination

Quality based Selection

Quality Cum Price based Selection

Public Auction including e-Auction and Public Tender including e- Tendering

Randomized Selection

The following is an illustrative table (indicative) depicting the possible methods of allotment based on the type of use:

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