Best of Andhra Pradesh by Nadimidoddi Prasad

Biju Mathews biju.mathews@expressindia.com

A Revolution through Patience The year 2009-10 saw eye opening and soul stirring events in the state of Andhra Pradesh, especially during the first half. The untimely demise of Chief Minister YSR, the floods and then the unrest due to the Telangana agitation left the state in turmoil. Businesses across the state went into hibernation and many in the country thought that the state’s marathon run towards the ultimate growth mile has come to an end. But as it often happens, the spirit of people from the state did not let that happen. As Sarvepalli Radhakrishnan, the first Vice-President of India who also went on to be the second President of India once said, “History records and contemporary events confirm that when we push people too far, they will fight back with raw courage borne of desperation even without weapons, leadership or organisation.” This statement came true in with a silent revolution that did not require any propaganda. The people of Andhra Pradesh, after the initial disturbances fought back with the two weapons of Patience and Desire to get back to normalcy. This year, we at Indian Express bring out “Best of Andhra Pradesh 2010” celebrating this spirit of the people of the state, their united peaceful struggle to retain last year’s growth path and continue their march towards sociology-economic stability which began a decade ago. Taking the theme “United, Affluent, Prudent”, this year’s Best of Andhra Pradesh is mainly about the progressive steps that the state has been able to take with the support of its citizens in the last one year in different sectors. Even while the state was staring at turmoil, this issue shows how the state got back its strength and has moved ahead unhindered. We hope with this issue of Best of Andhra Pradesh you will find many reasons to be proud of being in Andhra Pradesh and heighten the level of respect for the state. The revolution of patience will sustain and we hope to see many more of the Bests that the state has in store in the near future. 4

2010

Dr. K Rosaiah Chief Minister of Andhra Pradesh

Message I am glad to note that The Indian Express Limited is planning to bring out its annual almanac, Best of Andhra Pradesh. Andhra Pradesh truly deserves to be documented annually in a planned manner as growth is witnessed every year at a faster pace. Andhra Pradesh has had the distinction of registering development in all sectors – agriculture and irrigation, industrialization and information & biotechnology. It has pioneered many schemes for the welfare of the poor and the downtrodden ranging from supply of rice at Rs.2 a kg to construction of houses, provision of educational opportunities to health insurance coverage. It is again a leader in empowering women, artisans and farmers through grant of loans at three percent interest and ensuring remunerative prices for agricultural produce and in providing employment and livelihood opportunities to the unemployed - both the educated and semi-educated. I am sure with this year’s ‘Best of Andhra Pradesh’, all the past developmental activities as well as future plans in terms of growth of the state will be well documented as before. I wish the initiative all success.

Dr. K Rosaiah Chief Minister of Andhra Pradesh

2010

S.V.Prasad, IAS Chief Secretary Government of Andhra Pradesh

Message I am happy to note that The Indian Express Limited is bringing out the 7th annual edition of ‘Best of Andhra Pradesh’ with a comprehensive documentation of developmental activities of all the sectors in the State. I heartily welcome and appreciate the efforts for projecting Andhra Pradesh in a fresh new light this year. Last year had been a tough year for the state. In spite of severe crisis and uncertainty, Andhra Pradesh has performed tremendously well in all departments. The state administration has taken all the measures to overcome the hurdles in its way to take forward all development programmes. Taking the theme ‘United, Afﬂuent, Prudent – A State of Promise’, I feel the edition will truly reﬂect the state’s development in the last one year. I once again extend my best wishes and congratulate the efforts of The Indian Express Limited in this venture.

S.V.Prasad, IAS Chief Secretary Government of Andhra Pradesh

2010

Cutting across all

Barriers ROADBLOCKS IN LIFE ARE MERE HURDLES

THAT CAN BE CLEARED WITH THE LEAP OF FAITH AND BELIEF; FAITH IN ITS PEOPLE AND BELIEF IN ITS SYSTEM CAN HELP A

STATE OF THE UNION OVERCOME ANY DIFFICULTIES – NATURAL, INDUSTRIAL OR POLITICAL. ANDHRA PRADESH HAS BEEN WITNESS TO NATURAL CALAMITIES, MARKET COLLAPSES AND POLITICAL UNREST IN THE PAST ONE YEAR, BUT HAS STILL MANAGED TO PULL THROUGH WITH FLYING COLOURS.

WITH UNWAVERING

DEDICATION TOWARDS THE BETTERMENT OF THE STATE, THE GOVERNMENT HAS BEEN SUCCESSFUL IN OVERHAULING SUCH SETBACKS TO GET BACK ON TRACK.

BRIEF LOOK AT THE HUGE TASK THAT WAS TO BE CARRIED FORWARD AND HOW THE CURRENT

CHIEF MINISTER, K. ROSAIAH

WAS ABLE TO CUT THROUGH ALMOST ALL OF THE BARRIERS.

The state of Andhra Pradesh has come a long way from simply being an agrarian society; the infotech and bio-

tech industries have developed rapidly and taken the state’s economy to new levels. Andhra Pradesh provides an environment conducive for the growth of knowledge-based industries and has become a leading IT and biotech hub, with a large number of Multi National and Indian companies in these two sectors having their development and R&D centres in the state. Many of the top global corporations are present in Andhra Pradesh as the state offers a wide range of ﬁscal and policy incentives for businesses under the Industrial Investment Promo2010

tion Policy 2005–10 along with well drafted sector policies.

Infrastructure Development Andhra Pradesh would receive a major boost to infrastructure development in its sustenance to become the Preferred Global Sourcing Hub for Apparel industry in the country. The State is projected to attract overall investment of Rs.70,000 crore with an expected employment potential of 25 lakh in the coming years. The state has already been allocated 73 SEZs which will attract Rs. 14,700 crore investments with one lakh employment (both direct and indirect) to the State. The natural gas potential in the Krishna-Godavari basin in the Northeast belt of the State starting from Visakhapatnam to Kakinada has been promoted as a major industrial corridor with major projects like AP Special Economic Zone, a multi product SEZ, Jawaharlal Nehru Pharma City, Brandix Apparel City, Kakinada Multi product SEZ, expansion projects of Visakha-

patnam Steel Plant, HPCL etc which can act as a catalyst to attract more number of investments in the region. Recently Brandix India Apparel City (BIAC) was inaugurated at Achyutapuram, in Visakhapatnam. It is one of the state-of-the-art apparel supply chain city spread across 1,000 acres with a ‘Fibre-to-store’ concept. It has 749 acres of processing zone and 251 acres of non-processing zone with in-built water and efﬂuent treatment facilities.

BIAC will attract an investment of One Billion dollars (Rs. (Rs 4,500 4 500 crore) to Visakhapatnam and promote export of apparel worth more than 1.4 billion dollars a year. So far Rs.800 crore has been invested on infrastructure development in the multi-product APSEZ promoted by the APIIC at Visakhapatnam in an area spread over 5659 acres in Achyutapuram and Rambilli. According to the APIIC projections, BIAC would employ over 60,000 people and will contain 20 apparel factories, two fabric mills, eight accessories factories, a logistics warehouse and a ﬁnishing plant when it becomes fully operational. The Indian manufacturing arm of Brandix Sri Lanka, has already commenced commercial production for export and provided 2,800 jobs directly and another 5,000 indirectly. Several world class Fabric companies like Ocean India (US), Fountain Set Holdings of Hong Kong, Pioneer Elastic India Quantum Clothing India (UK), DEB Fashion India and Seeds Intimate Apparel India have come forward to set up joint ventures in the BIAC. Five of the 13 units that were allotted land in the APSEZ have already gone into commercial production and provided jobs for 1,500 persons including those from the project affected families. The prestigious project

of Petroleum, Chemicals and Petro Chemical Investment Region (PCPIR) is jointly promoted with Government of India and private participation in the region with an outlay of Rs. 19,031 Crores. The entire project has an employment potential of 12 lakh in the next 6 to 8 years. The Central government had agreed to share the cost of the PCPIR Expressway project from Gangavaram Port to APSEZ and from APSEZ to Kakinada with an estimated cost of Rs.300 crore on 50:50 share basis. 11

Jawaharlal Nehru Pharma City (JNPC) developed over 2,143.23 acres at Parawada mandal of Visakhapatnam at Rs.350 crores is expected to attract investments of Rs.10, 000 crores and employ 20,000 people. So far 81 units have begun operations in the Pharma City and provided jobs to 4,312 persons with an investment of Rs.549 crores.

other States like Karnataka, Maharashtra and Tamil Nadu are monitoring the online system to replicate it in their states. Even other countries have evinced keen interest in launching the scheme for providing quality healthcare to their under-privileged people.

IT/ITES sector in Hyderabad (Cyberabad) has an investment potential of Rs.25, 497 crore and can create 4,64,750 jobs in the future.

There is no dearth of funds for medical and surgical infrastructure in the state. As on 6th May 2010 the government has spent Rs.1770.07 crore for screening of 31.9 lakh patients in 17,847 health camps.

So far IT sector had attracted investments of Rs.3,543 crore in the

Ever since 17th July 2008, Arogyasri has provided coverage for 612

Hardware Park and generated jobs for 33,639 persons in the state.

identiﬁed procedures both in medical and surgical management cases.

Arogyasri

Healthcare service is provided through 340 network hospitals and around 10,000 concurrent users utilize the online services of the scheme.

Arogyasri is a ﬁrst of its kind Health Insurance scheme for the poor in the State. The scheme is embodied with a noble objective to provide advanced medical care for the poor living Below Poverty Line. It enables the rural poor the provision of “cashless” quality treatment for nearly 950 types of diseases. Central government’s assent to study the proposal for assisting the Arogyasri scheme is great news which would beneﬁt 2 crores BPL families holding the Arogyasri cards in the state. A team of expert doctors from 12

On any day 5,000 persons are being screened freely at 20-30 health camps, 3500 are screened in PHCs, 5000 patients are registered, 1200 pre-authorizations are given and 1,100 surgeries are performed. It can be noted that 70.98 per cent of the beneﬁciaries were in the age group of 15 to 55 years, thus resulting in protecting the productive age group of the society. The average cost was down to

a minimum of Rs.30,000. Among the beneﬁciaries 48 per cent were women and children and 79 per cent belonged to the vulnerable social groups like SC/ST/Minorities/BC and other low income groups. The present has decided to restructure the whole Health Department as “Arogya Raksha” with the help of National Rural Health Mission. The proposal to revamp the entire health delivery system has been given a goahead. With the effective implementation of a series of measures like cluster schemes, recruitment of doctors

(which is already on) and leveraging funds from National Rural Health Mission (NRHM) Andhra Pradesh will be in the forefront in Public Health. Under the NRHM, it is proposed to start special program for vulnerable groups with targeted outreach of villages with poor health indicators – Improved access through special package, identifying pockets of vulnerability – Mapping Exercise and improving Maternal and Child Healthcare. The proposal is to have two VH Mobile Health Units per district with a Medical Ofﬁcer, Social Organizer and Health Educator for focused attention to these Groups, pro-active Community Engagement and Close Coordination and Collaboration with 2010

the department of SERP and Women Development & Child Welfare. The objective of the programme is to substantially reduce Maternal Mortality Rate; Revitalise Primary Health System in a big way with Village Level Linkage etc. Special Package for Tribal Areas is proposed with Community Health and Nutrition Clusters. It is planned to rationalise access from village to District Hospital, strengthen referral services, mobility for all PHCs and Cluster Coordinators, Outreach Activities - Nutrition and Day Care Centres with SERP, Up-gradation

of Facilities – improve conditions of health centres in dilapidated condition, Strengthen Birth Waiting Homes and establish ITDA Health Society under ITDA - strengthen ITDA health management capacity. The government has planned to revitalize the Primary Health System by strengthening of Primary Health Centre in the state. All PHCs will run 24x7 and every PHC will have two Medical Officers, two Additional Nurses (NRHM) and all PHCs will have facility for Conducting Deliveries, Clear delineation of service area for all PHC staff, Fixed-day Health Services in the field by PHC, Integration of 104 with PHC outreach Services and Focused Tasks for the PHC Medical Officer are also planned. 2010

It was also decided that a Special Healthcare programme for School Children - “Bala Arogya Raksha” - will be launched to meet the health needs of 85.32 lakh children in the government schools in the state. It will be on a massive campaign on the lines of Praja Patham to be launched from 15th July to 14th August 2010. Screening of all school children will be taken from 15th July – 14th August 2010; Health Cards will be issued and cases will be referred for those requiring specialist care. Immunization will be taken up for every child

of 5 -7 yrs, Micronutrient (Vitamin A & Iron Folic Acid) Supplement will be distributed. The government has also introduced Janani Suraksha Yojana to promote institutional deliveries to reduce infant mortality rate and maternal mortality rate. It is proposed to increase incentives for institutional deliveries.

Agriculture The Agriculture department has achieved the maximum production in spite of severe drought and ﬂoods during the past one year. The area covered under agriculture during 2009-10 was 108.08 lakh hectares as against the normal of

116.76 lakh ha. (92.5% to normal) and the estimated food grain production was 152.93 lakh tonnes as against the normal of 173.62 lakh tonnes (88% to normal). During Kharif-2010, the state planned to supply 29.00 lakh quintals of various crop seeds out of which 18.16 lakh quintals of seed will be supplied to farmers on a subsidy of Rs.207.71 crore under various schemes through input supplying agencies. As per approved plan of 36.50 lakh tonnes of fertilizers, 7.08 lakh tonnes are made available in all the districts.

The stocks available in all the districts as on date are 5.71 lakh tonnes. Government has nominated APMARKFED as nodal agency for maintenance of buffer stocks to meet requirements in case of exigency. APMARKFED is holding 0.62 LMTs of DAP, 0.92 LMTs of Complex Fertilizers. M/s NFCL is maintaining 0.50 LMTs of Urea as buffer stock. The government has proposed to extend a credit of Rs.41, 913 crore for Agriculture during the year 2010-11. The target under crop loan, agriculture term loan and allied activities is Rs.26261 crore, Rs.8,538 crore and Rs.7,114 crore respectively, totalling to Rs.41,913 crores for the year 2010. 13

tive enforcement. Rs.9.30 crores has been allocated for strengthening and enforcing better road safety measures. A special recruitment drive for appointing Junior Assistants and Constables is also on cards. The government had decided to computerise all the 38 MVI ofﬁces in the state. It is also proposed the APSRTC should establish Vehicle Fitness Centres in a phased manner under the control of Transport department. The government has also asked HMDA and VUDA to take up the construction of bus stands for contract carriages buses. Food security and Farmers welfare are the two important areas of our agenda. Earlier, a meagre amount of Rs 9000 crores was spent for agriculture sector during 2003-04 whereas Rs.38,000 crores has been spent during 2009-10. It clearly shows our commitment towards farmers and our government is committed for Rythu Rajyam established by Dr.Y.S.Rajasekhara Reddy. As on 31st March 2010 agricultural advances have registered a growth of 169 percent with Rs.68658 crore during past 5 years. Lending exceeded targets both under Kharif and Rabi. The government is also continuing with free power supply to farmers since 2004 without break. The area under paddy cultivation had increased considerably this year due to the increase in irrigated area and completion of several irrigation projects. Paddy was being cultivated in 28 lakh hectares and rice production projected at 83.86 lakh tonnes in the current Kharif. This showed that the ambitious Jalayagnam program is already paying good dividends to the farming community. 14

The government is planning to take up the ‘Rythu Sadassus’ in all the 79 revenue divisions from 7th to 11th June 2010. ‘Rythu Chaitanya Yatras’ would cover 50,083 villages and 50 lakh farmers and the Rythu Sadassus would be attended by four lakh farmers in each division. During the past one year Cotton was being grown in 11.10 lakh hectares with a production target of 34.28 lakh tonnes. Pulses were sown in 9.08 lakh hectares with a production target of 4.26 lakh tonnes. Oil seeds were sown in 20.44 lakh hectares with a production target of 15.86 lakh tonnes this season.

Transports system The govertnment has been concerned about the continuing road accidents and loss of innocent lives. It has been decided to reconstitute a Road Safety Council to coordinate with all the concerned departments to ensure road safety in the State. It is also decided to establish Andhra Pradesh Road Safety Authority and bring in legislation to provide all authority and powers to the proposed Authority. Road Transport Authority is permitted to hire larger vehicles for effec-

Every year, RTA in Andhra Pradesh issues 5.50 lakh licences, registers 9.90 lakh vehicles and grants permits to 2.02 lakh vehicles. It delivers services through 43 RTO offices and 42 Unit Offices and 37 MVI offices. It conducts 28,000 Transactions per day and the computerization has enabled faster access, greater transparency and accountability. Scientific Driving Tracks have been established in all districts with Slot booking for driving test and Licences are delivered through speed post. In 1998-99, RTA earned only Rs.377 crores while it shot up to Rs.2007 crores during 2009-10 and the target is Rs.2778 crores for the year 2010-11.

Civil Supplies The Civil Supplies Department has been directed to verify the requests for 7, 61,647 new ration cards. The transparent de-duplication of ration cards drive conducted by the Civil Supplies Department through Iris system and Grama Sabha has found that there are over 19,09,348 duplicate or ineligible ration cards with corresponding units of 21,79,859. The number of BPL cards surveyed and data entered are 20,333,051 with a corresponding unit of 72,963,577. Andhra Pradesh is the 2010

ﬁrst State porting the entire ration card database online. Out of 5.8 Crores Iris biometric databases, 4.7 Crores has been identiﬁed as unique after the de-duplication.

Visakhapatnam is now emerging as the next IT Hub in the State. The growth rate in 2008-09 is 35% against the national average of 20.65%.

Measures have been taken to check Sugar prices which touched Rs.40.05 per kg and have now come down to Rs.30.54 per kg.

Companies like HSBC, Mahindra Satyam, Kenexa, and IBM Daksh are now operating from Vizag. The IT sector aims to achieve an export turnover of Rs.70,000 crores by 2015; to create new direct employment of 1,25,000 by 2015; to attract new IT MNCs that do not have presence in India & Hyderabad; and to attract IT MNCs/IT majors that have presence in India but not in Hyderabad by conducting Road shows, networking meetings, etc.

Compared to the previous month, it has fallen by Rs.3.26 per kg. Price of onions is also showing a downward trend. Increase in prices of some of these commodities is due to wide gap between production and requirement. Due to severe drought and unprecedented ﬂoods in some districts, overall Food Production in the State declined to 153 Lakh MTs from 204 lakh MTs of last year. Rice Production has fallen to 106 Lakh MTs from 142 Lakh MTs. The Group of Ministers in the meeting decided that as per the decision taken earlier, the MARKFED should purchase the total quantity of 50,000 tonnes of red gram under commercial operations by taking cash credit. As far as Deepam scheme is concerned, 4 Lakh new connections have been sanctioned recently.

IT Sector

IT majors present in Hyderabad are motivated to grow in size & operations and move to Tier-II locations – Warangal, Vijayawada, Vizag, Kakinada and Tirupati, etc. New verticals like Electronic Hardware, Animation & Gaming, Engineering Services are also promoted through attractive package of incentives. Incentives such as stamp duty reimbursement, power subsidy, Exhibition Subsidy, Quality Certiﬁcation, Recruitment Assistance, and provision of infrastructure to the doorstep for IT promotion are being offered. Solitaire incubation centre at Madhapur will be inaugurated soon

and the government is planning to lay foundation stones for IT SEZs at Kokapet, Warangal, Vizag and Tirupati. Other companies which are about to be inaugurated are TSI and Honeywell facilities at Hyderabad; Mahati, Infotech, eCentric, IIC Systems and Miracle at Vizag.

Land Distribution Scheme Continuing with the land distribution plan, the Andhra Pradesh Government had distributed 1, 41,191 acres of land to the landless poor in the fifth round that was taken up during April 2010. Thus so far, the State has completed four rounds of land distribution to an extent of 6.05 lakh acres to over 4.34 lakh beneficiaries, during the past few years. The State Government which began land distribution to the landless poor in 2004 has achieved a historic milestone with the completion of the fifth phase this year. Andhra Pradesh has become thus a role model in land distribution in the country and registered disbursement of a total of 7,09,228.81 acres to 5,04,099 beneficiaries. While 50 lakh acres of land were distributed since 1955 after independence of the country, the Andhra

Priority is given to IT sector in the current year. The government wants the Tier-II locations to be developed as fast as possible in the State. The share of IT exports from Andhra Pradesh occupies 15 per cent total national IT exports. IT/ITES Industry in the State contributes 0.57% share of the national GDP (as against the national GDP share of 3.83%), IT sector contributes to about 49% of total exports from all sectors in the State. AP ranked 4th position in IT performance in the country next to Karnataka, Maharashtra and Tamil Nadu. Industrial exports in the State were Rs.33,676 crores against IT exports of Rs.32,500 crores. 2010

Pradesh government has created a record distributing 6,03,809 acres to 4,33,723 landless poor in the first four phases. In the fifth and current phase which began on the birthday of Dr. B R Ambedkar, the government took up distribution of 1,00,615.22 acres to nearly 69,506 landless poor. At least 50 per cent of the beneficiaries belonged to the Scheduled Caste and Scheduled Tribes and other deprived classes.

self sufﬁciency in power generating capacity. During the XI plan period (2007-08 to 2011-12), the scheduled capacity additions of power in the state is 4560 MW (inclusive of State, Central and Private sectors). Out of the scheduled capacity additions, 2059 MW was added up to March 2010 bringing the total capacity in the State to 14041MW. The balance capacity of 2501 MW would be added before end of XI plan i.e. March 2012.

To ensure that the landless did not fall prey to land grabbing all such land pattas were given in the name of the woman of the family only.

The Government has taken advance action for the projects to be commissioned during XII plan (2012-13 to 2016-17).

Each family is given 2.50 acres of wet land or 5.00 acres of dry land including the land originally held by the family.

It is proposed to add 12,282 MW in the state sector alone by APGENCO during the above period. The works for 2440 MW out of the above capacity are already under execution. The advance planning initiated by APGENCO is expected to ensure timely capacity addition thereby minimizing risk of slippage.

The State Government had since 2004 spent a sum of Rs.599 crore under the Rural Infrastructure Development Fund (RIDF) schemes to develop 3.49 lakh acres of land distributed to the landless poor.

Power To meet the unprecedented increase in power demand Andhra Pradesh needs 500 MW of unallocated power from Central Grid. The State Government has drawn up special programme to ensure 16

The State Government is also going to request the Centre to sanction coal linkage for APGENCO’s Sattupalli thermal power project (600 MW), Vodarevu super thermal power plant (5x 800 MW) and Integrated Gasiﬁcation Combined Cycle Project (182 MW) & gas linkage for Karimnagar gas based power project (2100 MW). Besides, the Central Government will

be asked to take steps to ensure that, works related to laying of railway tracks to thermal power stations are taken up on a priority basis. The officials brought to the notice of the Chief Minister about the fulfilment of very recent decision of the Government regarding the Transmission schemes which have got financial tie up with banks and financial institutions with an estimated cost of around Rs.4453 crores. These transmission schemes/projects are to evacuate power from new power Generating Stations, system improvement and to meet additional load.

The above schemes will be completed with in next 4 years. Out of the above, an amount of Rs.1265 crores has been sanctioned by JICA & PFC for strengthening of HMDA area. Under RGGVY programme, it is proposed to electrify 14,309 unelectriﬁed habitations and 38.94 lakhs rural households including 25.48 lakhs BPL Rural Households at a cost of Rs.830.03 crores. The Chief Minister expressed conﬁdence that the outcome of the Delhi conference on power would light the path to progress, prosperity and a brighter future of the power sector in the State. 2010

Prices of basic commodities The Government of Andhra Pradesh has initiated many steps to ensure food security and curb price rise. Its food-grain go-downs are full. The State Government is totally committed to the welfare of the people of the State, particularly the BPL families in ensuring that they have two square meals a day and are protected against malnutrition. In order to achieve this, Rice is being provided to them at the subsidised rate of Rs. 2 per kg. 3.10 lakh tonnes of rice at Rs.2 per kg., 2,754 tonnes of wheat, 9,694 tonnes of sugar, 10,000 tonnes of Red gram dal and 20,000 Kilolitres of Palmolien oil,

The prices of rice including the preferred variety have shown a downward trend since last two months. The prices of vegetables including onions are also under control. The State Government is closely monitoring the situation and has already initiated market intervention schemes to keep the prices under control. Compared to other States, the prices of essential commodities in the state are under control. However, there might be marginal increase in the prices of some of the essential goods like pulses which are seasonal and will be brought under control.

along with Green gram dal and Chana are being distributed through PDS every month.

The government is taking various measures to control the prices of essential commodities.

The State Government is utilising the Subsidy scheme provided by the Government of India for Red gram and Palmolien oil to its fullest.

The State Government constituted a Group of Ministers to periodically review the price situation and take remedial measures.

An amount of about Rs.3,000 crores per annum is being spent as subsidy by the State Government for distribution of the PDS commodities annually.

Price Monitoring Committees at District and Mandal levels have been constituted for taking effective steps at local level.

Prices of rice, vegetables and other essential commodities are under control in spite of the severe summer. There are no shortages of any essential commodities. 2010

A system to collect, monitor and analyse the prices of essential commodities including Vegetables on a daily basis has been set up within the State.

The same is also being uploaded on the department website to provide information to the general public and media. No stone is left unturned to ensure that the dealers indulging in malpractices are sternly dealt with under the provisions of the Essential Commodities Act. The Chief Minister said provisions of the Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act are being invoked wherever the situation warrants. The State Government would continue to exempt imported Sugar from VAT provided of course the beneďŹ t of this exemption is passed on to the end

consumer by the importer. Government of Andhra Pradesh provided an incentive of Rs.1200 per quintal over MSP of Rs.2300 to encourage the farmers to cultivate more Red gram, which is the staple pulse in the State. The State government made speciďŹ c requests to the Government of India to restore the allocation of 45,000 tonnes of rice under the APL category for supply of rice to BPL families at Rs.2 per kg, to restore the allocation of kerosene to 55,368 kilo litre and continuation of subsidy scheme on red gram and palm oil.

United Afﬂuent Prudent A State of Promise 18

IT IS TOUGH AND MAYBE UNJUSTIFIABLE TO CRITICALLY ANALYZE THE STATE OF

ANDHRA PRADESH WHEN IT

WAS HIT BY TURBULENT TIMES DUR-

2009-10. DESPITE ALL THE UPROAR, THANKS TO THE POLITICAL ING

WILL AND UNPERTURBED BUREAUCRATIC STRUCTURE, THE STATE HAS MOVED FORWARD THROUGH ALL ILLS AND HAS CAUGHT UP WITH DEVELOPMENT ACTIVITIES WITH PLENTY OF OPTIMISM.

THE STATE IS MARCHING AHEAD WITH THE ‘UNITED, AFFLUENT, PRUDENT’ FEEL, ENSURING THAT IT REMAINS A STATE OF PROMISE FOR FUTURE GENERATIONS. 2010

here had been a host of unexpected sequences of events which virtually stalled the administration and the government machinery of Andhra Pradesh. The year 2009 in all sense was rather one of the worst periods the state had ever witnessed in the midst of its peak growth in the recent past. All began with the unfortunate death of Dr.Y.S.Rajasekhara Reddy, the then Chief Minister of Andhra Pradesh. Soon after, heavy rains and ﬂoods killed thousands of people & domesticated ungulates as well as damaged vast areas of standing crops. Within two months or so, when every one was in retrospection, and when the government was slowly coming out of the leadership crisis, the Telangana uproar paralysed the state. The state was suddenly thrown into a whirl, burdened and ransacked by social disturbance, political uncertainty and natural disaster. But the spirit of the state, which has seen it pass through several tough phases to reign supreme, returned. The usual planned roadmap of the government, slowly but steadily, found its strength. In many instances we have seen things change tremendously with time and political power, but thanks to the spirit, the bureaucratic and administrative structure of the state, it has progressively channelled political power and boldly faced challenges and tackled them amicably directing it to a positive and constructive solution keeping in view the larger interests of the state. Usually “Bests” of a place change from time to time based on the people’s interests, aspirations and perceptions. But for Andhra Pradesh, even in the hard times, its best have always been retained. Be it the Temples of worship, or the enticing Tourism spots, Education or sports, Industrial growth or Social welfare, Agriculture or Irrigational development, Information Technology or Biotechnology; Andhra Pradesh has

2010

created its own niche in every sector. Today, despite under intense regional disparities and pressure of separatism, the state is surging forward with an accelerated pace to become one of the best states in the country.

The Contention The desire of the optimists has been that the state will tread the growthpath only if it remains united; the separatists are crying of underdevelopment and regional injustice under the united regime for the past 50 years, which cannot be ignored. Yes, if every thing would have gone well right from the beginning, development would have reached the untouched and the deprived regions of the state. The contention continues. While there were many initiatives and measures taken by the successive governments to bring every region under the fold of development, unfortunately there were drawbacks, unavoidable circumstances and entities at different levels of the delivery system which hindered development. Undoubtedly during the past two decades, since the time of open economy, Andhra Pradesh has shown tremendous and unimagined growth in every sector it touched upon. Be it agriculture, irrigation, infrastructure, health, education and tourism, the state made a mark. But the entire state was not enjoying the fruits of development. There still were many areas which had been left behind and a few had even felt the burnt of development. It is not surprising that certain parts of the state are left where they were 50 years back. Lives in majority of these areas are still deprived of their basic rights like food, clothes and shelter. Though the situation seems to be tough, opinion makers feel that the state should work on a mutually beneﬁcial solution which is acceptable to all.

The Phased Development Looking back, it is a matter of

deep satisfaction that despite initial setbacks during its formation during the Fifties, Andhra Pradesh caught up with the national rhythm sooner than later. During the Sixties, the edifice of several multipurpose river valley projects, also known as temples of Modern India was rising dramatically. And, from the Seventies onwards, the life giving waters of Nagarjunasagar and Pochampadu had reached millions of farmers across the state. Several major power projects like Srisailam, VTPS and KTPS generated enough energy to electrify its villages. During the Eighties, political change inherent in democratic polity saw various welfare measures reaching to all the needy families. Similarly, the Nineties witnessed the rise of Andhra Pradesh on ICT map of India. It also witnessed the SHG program of women transforming into a silent, yet, solid movement. The latest political change brought in by the same democratic polity is agrarian focused with farmer and poor at its centre. Mandate now is for a healthy economic growth for broadening opportunity spectrum to include all sections of society. “Andhra Pradesh is always seen as a great State in terms of performance and reforms. In fact some states have even taken it as a role model. Andhra Pradesh has brought in many innovative and beneficial schemes either borrowed from other states or from other countries. For instance, we have implemented pension scheme from Netherlands, Microfinance form Bangladesh, Textile policy from South Korea, Micro irrigation policy from Israel and number of other schemes from China. From our own research institutions we have implemented innovative water harvesting schemes, Tribal welfare, Social welfare and backward classes welfare schemes. Andhra Pradesh is the only state in the country to be in the forefront implementing all such new concepts with a holistic approach of equitable development in the state” says S.V. Prasad, Chief Secretary Government of Andhra Pradesh. 19

Referring to the power sector, the Chief Minister said the Power Generation Corporation of Andhra Pradesh Limited has been given the go-ahead to take up massive capacity addition of 17,558 MW to meet future power requirements. The state has formed Visakhapatnam-Kakinada Petroleum, Chemical and Petrochemical Investment Region Special Development Authority for planned growth of the area.

Main Sectors

Deficit Budget 2010-11 Andhra Pradesh Chief Minister K Rosaiah presented a tax-free budget for financial year 2010-11 with an outlay of Rs 1,13,675 crore and a projected expenditure of Rs 1,13,660 crore. The fiscal deficit is estimated at Rs 12,983 crore, or 2.97 per cent of the gross state domestic product (GSDP). This is the third year in a row where the state’s budget has crossed Rs 100,000 crore mark. Out of the Rs 1,13,675 crore, the state’s share of revenues would be Rs 62,702 crore, its share in central taxes would be Rs 14,505 crore while central grants were projected at Rs 13,441 crore. The state expected capital receipts for 2010-11 at Rs 23,027 crore. Of the Rs 1,13,660 crore expenditure, Rs 73,347 crore would be non-Plan expenditure while Rs 40,313 crore would be Plan expenditure. The revenue surplus is estimated at Rs 3,548 crore. According to the revised estimates for 2009-10, revenue receipts stood at Rs 78,406 crore projected revenues for 2010-11 were Rs 90,648 crore. 20

“The global economic slowdown has impacted the economies of all states more than what we had anticipated,” said the chief minister. “The focus of the government is achieving economic growth with equity. For faster economic growth, we are proposing to keep the capital expenditure high,’’ Rosaiah said adding that three major projects, with Rs 5,699 crore ﬁnancial assistance from World Bank, were being taken up to strengthen infrastructure in urban and rural areas. There were no marked improvements in budget allocation for the various sectors. The state government reduced the allocation to Jalayagnam (irrigation projects) from Rs 18,000 crore in 2009-10 to Rs 15,011 crore in 2010-11. It also reduced the power subsidy bill to Rs 4,500 crore from Rs 6,040 crore in 2009-10. The allocation for food subsidy changed from Rs 500 crore to Rs 3,000 crore. It earmarked Rs 3,261 crore for urban development, Rs 1839 crore for agriculture, Rs 3,155 crore for education and Rs 2,284 crore for infrastructure among others. “The state would shortly announce a new industrial policy to attract industrial investments,” Rosaiah said.

Education Andhra Pradesh has become the brand name for education and educational institutions in the country. All the three regions, viz., Andhra, Telangana and Rayalaseema, have their own landmark institutions. The Andhra University in Andhra region, Osmania University in Telangana and Sri Venkateswara University in Rayalaseema are among the best places of learning in the state. Adding to these age old institutions, many new engineering and medical colleges have come up under the supervision of private entrepreneurs. The newly established IIT at Hyderabad (Telangana), IIIT and RIMS in Kadapa (Rayalaseema) and Jawaharlal Nehru Technological University in all the three regions of Andhra Pradesh are some of the new entrants in the educational arena of the state. “The Higher Education department in the state is concentrating to develop and build more number of Degree and Post Graduation colleges in the rural areas of the state. We are also encouraging private institutions to invest in Higher education and set up advanced educational institutions in the rural areas. Priority is also given to upgrade the existing institutions by providing better amenities and infrastructure facilities,” says C.R. Biswal, Principal Secretary to Government of Andhra Pradesh, Higher Education. Infrastructure Infrastructure in Andhra Pradesh has improved remarkably, but this 2010

activity is observed only in urban areas or big cities. Says Shakti Sagar, Chairman, CII-Andhra Pradesh, “Infrastructural development in the state is experienced only in few areas of Andhra Pradesh. It is important that this development also percolates to Tier II and Tier III cities and towns. There is need to evolve independent industrial policy based on the needs and requirements of a region or zones across Andhra Pradesh which will catalyze the infrastructure development process. In this context, the Government of Andhra Pradesh has a plan, which needs to be expedited. Earlier sanctioned but now deferred projects to beneﬁt Hyderabad, such as Krishna Drinking Water Supply – Phase – III and a gas based mega thermal plant in the near vicinity need to be implemented immediately.” Tourism Andhra Pradesh is blessed with bounty of natural beauty as well as incredible historical and cultural heritage. Regionally the state is blessed with best of temples and places of worship. Though the recent agitations and communal disturbances decreased the tourist inﬂow into the state, efforts of the Tourism department are on to rejuvenate its ability to attract more tourists. As a part of this effort, APTDC recently evolved a new special summer package for the tourists who wish to tour the entire state with a reasonable cost which includes boarding, food and travel.

the next 2-3 months” said Sandeep Kumar Sultania, Managing Director APTDC. Agriculture Agriculturally, the fertile deltas of Krishna and Godavari in the State have been yielding abundant rice production. The government of Andhra Pradesh has bestowed top priority to Agriculture sector and framed various strategies like supply of quality inputs, technology transfer, infrastructural support, credit, etc. The government has also engaged 50,000 Adarsha Rythus to bridge the gap between the farmers and the extension staff and facilitate in implementation of programmes. The state recorded a growth rate of 7.44% during the last ﬁve years as against a target of 4% envisaged by the Planning Commission for Agriculture sector. The Agriculture department had also formulated an Action plan at an estimated cost of Rs 1,313 crores for the year 2009-10 which will help in continuing its efforts and sustain growth rate. Industries Industrially, Andhra Pradesh has come a long way. It is the only state in the country which has been accorded the highest number of 72 SEZs. Though the state government had left no stone unturned to encourage the industrial sector by declaring lots

of incentives in terms of subsidised power, free land and water and even exempted taxes for establishing new industries in the state, the recent bandhs and agitations in the State adversely impacted the brand name and also the production and productivity of the industry. The crisis has affected the business climate for foreign investments and slowed the pace of economic reforms. Adding to the above problems, the lackadaisical attitude of the bureaucratic machinery in clearing the projects and thus creating unnecessary hindrances have also created a fear in the minds of the investors. Most of the existing and new prospective investors are vexed due to the delay from the government to clear the projects on time. “A delay of one year in clearing of a project increases 22 percent of project cost. In many cases the investors fear of this hike in the cost of the project. During the past one year Andhra Pradesh had lost an investment of more that 2 billion dollars to Singapore, Malaysia and Thailand! My advice to the government is to form an Industrial Advisory Body under the chairmanship of Chief Minister, which would look in to the matters concerning industries and new investments. The body should act promptly and be able to mould the rules and remove all unnecessary hur-

“We want to improve the face of the tourism department in the state. APTDC is moving ahead with a customer centric approach. We want to entertain and make every tourist feel at home by providing them caring and touching hospitality at every tourist location in the state. To make sure quality customer service at our hotels and tourist destinations, a plan has been evolved to train our employees at different levels. We have already devised a systematic training programme in collaboration with IHM (Institute of Hospitality Management) which is going to be started in 2010

dles in clearing projects speedily and provide incentives to priority sectors and solve the issues on a case to case basis without tying every one under one umbrella,” says Narender Surana, Chairman FICCI Andhra Pradesh and Managing Director Surana Telecom and Power Ltd. Despite such hurdles, the contribution of the Southern Region States to Real GDP had increased at 11% per annum during 2005-2009, which outpaced the National Real GDP growth at 8.5%. Driven by the growth in Manufacturing and Services sectors, Andhra Pradesh contributed at around 9% during the period 20052009. However, the Manufacturing and Services sector underperformed in 2009 in Andhra Pradesh and the real GDP grew just above 5% in 2008-09. If the uncertainty is prolonged, the negative impact is expected to escalate. “IT/ITES industry have very critical operations with time bound service level agreements reported concerns from the parent companies, partners and clients. People being the most important asset for the industry, residents from other cities have shown reluctance to relocate to Hyderabad. The Industry generated revenues of Rs. 32, 000 crores accounting for 15 % of the exports of Indian IT Services,” adds Sagar. 22

To further enhance the industrial sector in different dimensions, the state government is planning to announce a new industrial policy to attract industrial investments. The government had already received proposals for establishment of 353 new large industries with an overall investment of Rs 81,092 crore (Rs 810.92 billion) to create additional employment for 1,11,000 people. Revenue “2009 was a tough year for the revenue department, though we could surpass the revenue targets for excise, our targets from commercial tax suffered a deﬁcit of Rs.2834 crores. The deﬁcit can be attributed mainly to the recent global economic downfall which was also catalyzed with local agitation in the state. There is also an urgent need to repair the loopholes in the rules because of which many people are evading taxes. Not only this, the mounting pending court cases have also added to the problem” says, Ashutosh Mishra, Principal Secretary to Government, Department of Revenue Andhra Pradesh.

Conclusion Looking at all the developments at the background, it only indicates that Andhra Pradesh is building a strong basement for its future growth in all sectors. The state is moving ahead

with an accelerated pace to emerge as a leading state in the country. As per its new vision 2025 the state is poised to become a leader in human development, employment generation, education, infrastructure and better governance in the country. While being sensitive to environmental issues the state owes to ensure an inclusive and sustainable growth with a holistic and inclusive perspective in the ﬁeld of economic, social and cultural aspects. Special efforts have been made to address the issues of poverty and human development, regional imbalances and eliminating discrimination based on gender, caste or religion. There is a strong focus on universal primary education, inclusive growth, sustainability in development, and ensuring that the fruits of development spread to all the districts in the state by the end of 2025.

THIS IS THE THIRD YEAR IN A ROW WHERE THE STATE’S BUDGET HAS CROSSED RS 100,000 CRORE MARK. OUT OF THE RS 1,13,675 CRORE, THE STATE’S SHARE OF REVENUES WOULD BE RS 62,702 CRORE, ITS SHARE IN CENTRAL TAXES WOULD BE RS 14,505 CRORE WHILE CENTRAL GRANTS WERE PROJECTED AT

13,441 CRORE. THE STATE EXPECTED CAPITAL RECEIPTS FOR

2010-11 AT RS 23,027 CRORE. OF THE RS 1,13,660 CRORE EXPENDITURE, RS 73,347 CRORE WOULD BE NON-PLAN EXPENDITURE WHILE RS 40,313 CRORE WOULD BE PLAN EXPENDITURE. 2010

“The signiﬁcant and immediate challenge faced by the state is to improve the level of economy” HAVING STRIDDEN PAST CHALLENGING TIMES OF 2009, ANDHRA PRADESH BEHOLDS ITS HOLISTIC APPROACH OF A TWO PRONGED STRATEGY TO SOLVE IMMEDIATE AS WELL AS LONG TERM ISSUES.

S.V. PRASAD, CHIEF SECRETARY GOVERNMENT OF ANDHRA PRADESH IS OPTIMISTIC OF MAKING ANDHRA PRADESH A BETTER AND UNITED STATE TO

WITH ALL PROBLEMS SOLVED IN THE COURSE OF TIME.

BY AMGUTH R AJU

How do you view the performance of Andhra Pradesh during the past one year? If one just looks back, Andhra Pradesh has always been seen as a great state in terms of performance. It is the only state in the country that stood in the forefront to initiate reforms in every sector. Be it Information Technology, Industry, Agriculture, Education, Infrastructure, Social welfare, Biotechnology or Pharmacy; the reforms initiated in each sector have yielded remarkable results. Another remarkable achievement of Andhra Pradesh is its holistic approach of social welfare and uplift of weaker sections. The state government had introduced innovative schemes to beneﬁt the poor and help them economically. The government is constantly studying the schemes offered in other states and countries and implementing them here based on the need and feasibility. For instance, we have taken up the pension scheme from Netherlands, Microﬁnance from Bangladesh, Textile policy from South Korea, Irrigational schemes from Israel and various other schemes have been borrowed from China. From our own research 24

institutions and extension centers we have picked up innovative schemes like water harvesting, Tribal Welfare, Social Welfare and Backward classes welfare schemes. We are also concentrating more on innovative ideas for youth employment and welfare of handicapped sectors. The benefits of growth should be equitably distributed among all sections of society. The two important issues for Andhra Pradesh are longterm development and welfare of people. They have to go hand in hand. The State has also instituted development projects and welfare measures to ensure inclusive growth. During the past few years, Andhra Pradesh is laying great stress on health and education. In the field of higher education, Andhra Pradesh announced the starting of 18 universities, six medical colleges, and three Indian Institutes of Information Technology (IIIT) in a short period. The IIITs - one for each of the three regions, Rayalaseema, Telangana, and Coastal Andhra would cost Rs. 1,200 crore each. Nearly 2,000 boys and girls would be admitted from rural areas with the top five students from each mandal given admission on merit. In the health sector, the Rajiv Arogyasri programme is very popular. About Rs. 925 crore was being spent each year to provide free medical assistance up to Rs. 2 lakh to people from poorer sections. Under the “108” scheme, callers from any interior village in the State could get ambulance service within 20 minutes. Under the “104” service, “mini hospitals on wheels” would tour each village once a month with qualified

S.V. Prasad, Chief Secretary to Government of Andhra Pradesh

WE NEVER HAVE ANY RESERVATIONS OR RESTRICTIONS TO WELCOME CONSTRUCTIVE CHANGES ACCORDING TO THE NEEDS OR DEMAND OF THE OCCASION.

WE ARE

ALWAYS FLEXIBLE AND MOULD THE PLANS TO PROVIDE BETTER AND EFFECTIVE SERVICE TO THE PEOPLE.

2010

doctors, staff nurses, and lab technicians to conduct preliminary tests and advise further treatment to villagers. An ambitious scheme of constructing 86 small and large irrigation projects had been taken up in the primarily agrarian State to bring 98.25 lakh new acres into cultivation apart from standardising 22 lakh acres in the Krishna-Godavari deltas. The government had also doubled its lending to agriculturists with Rs. 16,000 crore disbursed as term loans this year. Self-help groups were given loans at a low rate of interest to perform their activities. Around 71.4 lakh pensions were being disbursed along with monthly support for the elderly, widows, and physically handicapped persons. Nearly 65 lakh houses would be constructed by the State government and post-matric scholarships to 25 lakh students worth Rs. 3,000 crore, including a new scheme for economically backward communities (EBC) had been introduced. To ensure transparency, the government had instituted a social audit of the NREGP after complaints were brought to its notice over the past year. Complete ﬁeld veriﬁcation is being taken up. Transparency is ensured by involving the village committees in the process.

farmers etc., and second is to look for long term development activities such as building infrastructure facilities like Roads, Ports, Airports and setting up industries and so on. It doesn’t mean that we are rigid on our plans. We never have any reservations or restrictions to welcome constructive changes according to the needs or demand of the occasion. We are always ﬂexible and mould the plans to provide better and effective service to the people. Since the past two years, the government’s priority has been Farming, Welfare and Health sectors. A lion’s share in the budget has been dedicated for farm sector, especially for the development of irrigation infrastructure and agriculture in the state. The State government had allocated Rs 15,011 crore for Jalayagnam for the current the year 2010-11. Last year this amount was Rs 18,000 crore. Similarly, Rs 1,839 crore has been allocated for the uplift of agriculture and allied sectors for the current year. Rs 1,820 crore has been allocated for health. Rs 925 crore is being spent on Arogyasri scheme every year. For the various welfare schemes Rs 4383 crore is allocated in the budget this year, out of which senior citizens and handicapped gets Rs. 1,846

cores, Rs 210 crore for Minorities, Rs 995 crore for Scheduled tribes and their welfare, Rs 1032 for Backward Caste and Rs 300 crore for OBCs. Apart from the above, other crucial sectors which we are looking at are education, housing, infrastructure, employment, poverty elimination and drinking water supply. Rs 3,155 crore is allocated for Education and Rs 3,000 crore is allocated for Infrastructure like roads and highways. How do you view the new investments and Industrial growth in the state during the past one year in the wake of the Telangana disturbance? Last year was really a challenging period for Andhra Pradesh. To begin with, rainy season was not as expected and the government had to declare 850 mandals as drought hit areas. Soon followed was the unfortunate death of YSR that triggered political turmoil for a brief period which was adjusted with Central Government’s intervention. When everything was thought to have just settled, un-seasonal rains lashed out washing lakhs of acres of agricultural crop and inundating lakhs of urban and rural habitats. Thousands of crores of property, cattle and human lives were

We have focused on all sectors, sections and areas of development. As the Japanese saying goes—Fish or Fishing rod—but we have provided the weaker sections not only the ﬁshing rod but also trained him how to use the ﬁshing rod and till he learned it, we have fed him. So our approach of development is entirely comprehensive and holistic in nature. What are your priorities for the current year? Our priority is always to look at multifaceted development. We are following a two pronged strategy in our development plan. First is to lookout for immediate concerns of people like providing adequate water supply, power and solving the issues of 2010

lost due to the ﬂoods. As if all this is not enough, the Telangana and United Andhra agitations totally stalled the state for a brief while. Despite of all these, the state has come to normalcy now. Thanks to the people, for they had shown tremendous resilience and will power. Now everybody wants to take the path of development and growth.

are sincere and have no previous record of any slant towards any political ideology. This committee is bestowed with the responsibility to study the situation in the state through wide consultations with people, students, groups, NGOs and political parties to ﬁnd the best possible and a balanced solution that protects the interests of all the people in the state.

Of course, though the temporary phase of agitation might have impacted negatively on the industrial growth and new investment for a short while but it is not as serious as being perceived. The fear created in the minds of investors is only temporary and it will deﬁnitely fade away as everything has come to normalcy now and there is no reason for anybody to fear to do business in the state. The state provides a very conducive atmosphere for investors. Security for business houses and other commercial installations is just adequate with fool proof security measures.

The Srikrishna committee carries signiﬁcance because the earlier studies on Telangana did not reﬂect fair and in-depth search in terms of socio, political and economic conditions of the region.

During the past one year a number of private investors have shown interest in the development of ports and airports under PPP (public private partnership) mode. Similarly highest numbers of SEZs have been allotted to the state based on the subject and sector. Some of the signiﬁcant SEZs include Pharma City, Health City, and Aero-space industry.

We are hoping of a balanced report from the committee that is acceptable by all the people in the state. Though it may take sometime for the committee to come out with a best possible report, the credibility will be really great. What are the major challenges faced by the state and what according to you are the possible solutions for the same? The signiﬁcant and immediate challenge faced by the state is to improve the level of economy. We have to improve our ﬁnancial resources without really affecting the common man.

Plugging the leakages and loopholes in the government rules and regulations is also another big challenge. Many are taking advantage of this and resorting to corrupt practices. There are lots of unnecessary bureaucratic hurdles that are delaying the clearance of projects which is becoming unavoidable. The government will definitely look in to it and would constitute a body to solve any kind of problems faced by the existing or prospective investors in the state. The best possible solutions to counter all the challenges would be to propagate the PPP mode of development in all sectors. Already this mode of operation has yielded exemplary results in Infrastructure and Industrial sector. It can also be applied in Higher education, social welfare, finance, law and order etc. This mode of operation will completely reduce the financial burden on the government. It will create huge employment in the rural as well as urban areas. The other big challenge faced by the state in the recent past was maintenance of a peaceful environment. This has decreased tourist inflow and also impacted the business investments in the state. Good governance is another big challenge which needs to be comprehended effectively.

The biggest and notable achievements in the industrial sector for the state during the past one year include the establishment of BHEL (Bharat Heavy Electricals Limited) at Tirupati in Chittoor district and construction of 12,000MW power project at Krishnapatnam in Nellore district which would sufﬁce the power requirements of the entire state. How do you view the constitution of Srikrishna committee and the issue of separate Telangana state? What according to you would be the best solution for the state? Srikrishna committee is a non-political body constituting members who 26

Srikrishna Committee 2010

“It is high time for the government to constitute an Industrial Advisory to look into matters with more proactive initiatives and incentives” NARENDRA SURANA, CHAIRMAN, FICCI-ANDHRA PRADESH STATE COUNCIL AND MANAGING DIRECTOR SURANA TELECOM LIMITED TALKS ABOUT THE TELANGANA ISSUE AND HOW IT HAS AFFECTED ANDHRA’S INDUSTRIAL

agricultural productivity and Industrial accessibility.

DEVELOPMENT AND ALSO STRESSES ON

Merely providing facilities like land, water, power and Tax exemptions will not help grow industrial sector in the state unless and until the state and central governments take more proactive steps to modify the existing policies, rules and regulations that are hindering the way for getting speedy clearances from the government.

THE NEED FOR PROACTIVE ACTION BY THE GOVERNMENT TO DRIVE GROWTH.

AMGUTH R AJU What are your views on the current state of industrial affairs of Andhra Pradesh in the wake of the Telangana issue? Andhra Pradesh was in the forefront to attract the maximum investment in the country during the past few years, but now due to lackadaisical attitude of the government and increased red-tapism the existing as well as new prospective investors are shifting their bases to neighbouring states like Karnataka, Tamil Nadu and Maharashtra. It is high time for the government to constitute an Industrial Advisory Body to look in to matters with more proactive initiatives and incentives for attracting more investments to the state. Earlier, Andhra Pradesh had provided a very good base for the setting up of world class industries base in the state. Especially, Hyderabad was branded as an emerging global point that created a new impetus for the overall economic growth. It is the responsibility of the present government to have an inclusive growth in terms of 28

Most of the industrial projects are stuck in the middle and some of them have even rolled back their plans because of the bureaucratic hurdles.

There should not be any Red-tapism by the government ofﬁcials to adhere to the strict rules and formalities which are unnecessarily delaying setting up of new projects. What are your views on the incentives provided by the state government? Our government is comparing itself with other states in the country as to what incentives they are providing and what best we can provide in comparison to their initiatives to the new investors. In fact, this strategy will not help the government to compete with other states rather it will backﬁre. Evidently, it was even proved that our incentives are not as effective for we have lost many prospective manufacturing companies and electronic industries to the neighbouring states like Tamil Nadu, Karnataka and Maharashtra. Instead, the State Government should compare its strategies and policies or incentives

Narendra Surana, Chairman, FICCI-Andhra Pradesh State Council & Managing Director, Surana Telecom Limited

THE RECENT TELANGANA UPROAR HAD CREATED A SENSE OF FEAR IN THE MINDS OF NEW INVESTORS. THOUGH IT IS NOT A MATTER OF PRO OR AGAINST ANY REGION, BUT PEOPLE, POLITICIANS AND THE GOVERNMENT SHOULD VIEW THE REGIONAL ISSUES FROM AN ECONOMIC POINT OF VIEW.

2010

with countries like Singapore, Malaysia and Thailand so that we can provide much better amenities and incentives to the prospective investors and it will also enable other new investors to set their bases in the state. How are investors looking at the state given the current scenario? Despite having a huge potential and customer base in the state, prospective investors are not willing to invest in the state; rather they are going to other locations fearing Red-tapism and Socio political disturbances in the state. For instance, recently Singapore constructed a Solar Power Plant with an investment of Rs. 9000 Crores. To be frank, there is no drastic need for setting up of such a plant for a small customer base of only 200 rural hamlets. But still, the investors are being attracted by their government and have instilled conﬁdence to have better returns for their investments.

mittee submits its report, the Central Government should take constructive measures to develop the entire Telangana Region or any other backward region in the state. All the political parties should shun their selﬁsh designs and bridge their differences and think in a constructive and positive way and evolve a long term strategy keeping in view the future interests of the people in the region. The State and Central governments should declare a comprehensive package or declare the entire region as a Special Economic Zone and develop the region in all aspects such as industries, agriculture, health and education.

DESPITE HAVING A HUGE POTENTIAL AND CUSTOMER BASE IN THE STATE, PROSPECTIVE INVESTORS ARE NOT WILLING TO INVEST IN THE STATE; RATHER THEY ARE GOING TO OTHER LO-

RED-TAPISM AND SOCIO POLITICAL DISTURBANCES IN THE STATE. FOR INSTANCE, RECENTLY SINGAPORE CONSTRUCTED A SOLAR POWER PLANT WITH AN INVESTMENT OF RS. 9000 CRORES. CATIONS FEARING

This would deﬁnitely generate large number of employment and would improve living standards which would automatically subside the feeling of injustice or backwardness among the people and help them lead a better livelihood.

Had the same power plant come in Andhra Pradesh, it would have beneﬁted a huge customer base in the rural areas that are deprived of power. The recent Telangana uproar had also created a sense of fear in the minds of new investors. Many prospective investors are having second thoughts to come to Andhra Pradesh. Though it is not a matter of pro or against any region, but people, politicians and the government should view the regional issues from an economic point of view. If Telangana is formed, the new state will have more disadvantages rather than advantages. First of all it will become a land locked state and moreover there are not many natural resources like Natural gas deposits and Mineral deposits as in Andhra region. Therefore, in my opinion, once the Sri Krishna com2010

“The State of Andhra Pradesh had a tough period in 2009” SHAKTI SAGAR, CHAIRMAN, CIIANDHRA PRADESH CHAPTER SHEDS LIGHT ON THE SUDDEN SLOWDOWN IN DEVELOPMENT WITHIN

ANDHRA PRADESH

state have exacerbated a host of economic, social and political problems. This crisis has affected the business climate for foreign investments and slowed the pace of economic reforms.

IN ALL SECTORS AND ALSO RECOMMENDS THE WAY FORWARD FOR THE STATE.

AMGUTH R AJU. Andhra Pradesh has been doing well in the past in all sectors. Now in the event of the recent separatist agitation, how do you evaluate the performance of the state in terms of development? A series of events impacted Andhra Pradesh’s industry negatively; we had global recession, droughts, ﬂoods, sad demise of Chief Minister YSR, the agitations for a separate State of Telangana and Samaikhya (United) Andhra Pradesh, power cuts, and now the communal riots, besides others. India, presently, has entered the stage of recovery and is expected to get back onto the growth track at the earliest. In fact, India is one of the foremost countries to come out of recession. All credit is due to the Government of India and the State Governments for taking appropriate measures at the right time. Indian economy was consistently achieving the target of 9% growth rate till the recession. It is good to note that even in recession, India could achieve a growth rate of around 7%. Though this economic crisis has been taken care of by the right measures adopted by the Government and the Industry, Andhra Pradesh was, unfortunately affected by a few other developments speciﬁc to the State. The recent Bandhs and Agitations in the State are impacting the brand name and also the production and productivity of the industry. The protests for and against carving a new 30

In fact, if we see the contribution of the Southern Region States to Real GDP, it increased at 11% per annum during 2005-2009, which outpaced the National Real GDP growth at 8.5%. Driven by the growth in Manufacturing and Services sectors, Andhra Pradesh contributed at around 9% during the period 2005-2009. However, the Manufacturing and Services sector underperformed in 2009 in Andhra Pradesh and the real GDP grew just above 5% in 200809. If the uncertainty is prolonged, the negative impact is expected to escalate. IT/ITES industry have very critical operations with time bound service level agreements reported concerns from the parent companies, partners and clients. People being the most important asset for the industry, residents from other cities have shown reluctance to relocate to Hyderabad. The Industry generated revenues of Rs. 32, 000 crores accounting for 15 % of the exports of Indian IT Services. It provides employment to 2.3 lakh people directly and 8.0 lakh people indirectly. The total people beneﬁted from this industry is almost 40 lakh (Assuming 4 people per family). The Pharma sector alone during the last 3 months reported a direct loss of Rs. 400 crores as countries stopped importing bulk drugs from India and Hyderabad happens to be the bulk drug capital of India. The Hotel industry has reportedly clocked a loss of Rs.130 crores during the months of active bandhs and agitations – November (2009), December (2009) and January (2010). There has been a sharp decline in the

Shakti Sagar, Chairman, CII-Andhra Pradesh Chapter

CII ANDHRA PRADESH RECOMMENDS ENSURING PEACEFUL COEXISTENCE OF INDUSTRY AND SOCIETY, IRRESPECTIVE OF THE DEMANDS FOR SEPARATE

/ UNITED STATE. THIS CAN BE DONE THROUGH SPREADING AWARENESS AMONG THE PEOPLE ON THE IMPORTANCE OF THE EXISTENCE OF INDUSTRIES FOR DEVELOPMENT OF THE REGION AS WELL AS PRESENT AND FUTURE EMPLOYMENT OPPORTUNITIES.

2010

occupancy rate because of violent agitations. The Realtors and the Service sector are also facing a negative impact due to the present situation. The Film Industry in Andhra Pradesh is one of the largest, which has over 1000 crores turnover and provides direct employment to as many as a lakh of population. Due to the agitations, the Film industry is also getting impacted negatively, which in fact gives low-end employment to a large population. The agitations also impacted the daily-wage workers, the Micro and Small Scale enterprises, and the transport networks, all of which are an integral part of industrial development in the State. Noting this political unrest, many investors have expressed their concern over their proposed investments in the state. It is the uncertainty and ambiguity over the Telangana / United Andhra Pradesh issue, which is undermining the place of Andhra Pradesh and Hyderabad as an investment destination. The prestigious International event, Partnership Summit 2010, organized by CII, which was initially scheduled at Hyderabad, but due to the unrest in the city, it was shifted to Chennai; and which involved visits by various heads of the countries and also involves signing of many business MoU’s for new investments; was a great loss to the State. In various studies initiated by CII, Andhra Pradesh was projected as one of the best places for industrial investments. Various studies by World Bank and RBI also reiterated this fact. From the preliminary impressions of various industries in Andhra Pradesh, the present uncertainty, will impact negatively, the projected growth rates of the State. In the event of vertical divisions among parties, people and the bureaucrats, what in your opinion would be the best solution for Andhra Pradesh? What is your recommendation for consistent progress of the state irrespective of the hiccups? 2010

CII, as an Industry body, does not take any stand for or against a Separate Statehood for the Telangana region / United Andhra Pradesh, as long as it does not impact the growth of the industry. In-fact, CII recommends a quick resolution to end the current ambiguity. It is important that the Industry needs to be protected irrespective of the decision regarding political demarcation of the present geography of Andhra Pradesh. Any disruption in the normal process of the economy will negatively impact the industrial production and output. The frequent Bandh’s did impact the industry and led to revenue losses. There has been no study, so far to statistically measure the impact. It is of utmost importance to have a peaceful atmosphere for industry to function and grow. It will be very difﬁcult for the industry to survive in a state of uncertainty. CII Andhra Pradesh recommends ensuring peaceful coexistence of industry and society, irrespective of the demands for separate / united state. This can be done through spreading awareness among the people on the importance of the existence of industries for development of the region as well as present and future employment opportunities. A proper Planning for economic development in the entire region must be envisioned. The Government must come up with a concrete Plan of action to ensure economic development in the entire region. CII Andhra Pradesh has come up with some District Development Plans We are experiencing infrastructural development only in a few areas and corners of Andhra Pradesh. It is important that infrastructural development must also take place in the Tier II and Tier III cities, towns and also for industrial development in different zones across Andhra Pradesh. In this context, the Government of Andhra Pradesh has a plan, which needs to be expedited.

The deferred but earlier sanctioned projects to beneﬁt Hyderabad, such as Krishna Drinking Water Supply – Phase – III and a gas based mega thermal plant in the near vicinity need to be implemented immediately. The Central Government must assist in rejuvenating the employment creation process. Some major investments seem to have been aborted or deferred and need to be revived or replaced. This would not only do a lot to revive the morale and address some of the economic and social concerns of the local people and would revive the Credibility of the Central Government with the local people which is now at a historical low. CII Andhra Pradesh recommends that more and more Anchor industries must be encouraged at various places, which will ensure economies of scale and develop other small scale industries and generate greater employment in the future. CII Andhra Pradesh has made several other recommendations to the Government of Andhra Pradesh through its Report – CII AP Economic Agenda for Government of Andhra Pradesh.

IN VARIOUS STUDIES INITIATED BY CII, ANDHRA PRADESH WAS PROJECTED AS ONE OF THE BEST PLACES FOR INDUSTRIAL INVESTMENTS.

VARIOUS STUDIES BY WORLD BANK AND RBI ALSO REITERATED THIS FACT. FROM THE PRELIMINARY IMPRESSIONS OF VARIOUS INDUSTRIES IN

ANDHRA PRADESH, THE PRESENT UNCERTAINTY, WILL IMPACT NEGATIVELY, THE PROJECTED GROWTH RATES OF THE STATE. 31

Prime Sectors EVEN THOUGH THE STATE HAD BEEN REELING UNDER PRESSURE DUE TO VARIOUS EVENTS, THE STATE STILL MANAGED TO MAINTAIN ITS GROWTH TRACK AND NOW AS IT MOVES AHEAD OF THE HALF-YEAR,

ANDHRA PRADESH SEEMS TO HAVE FOUND THE RIGHT TRACK TOWARDS THE WAY FORWARD. WE LOOK AT EACH SECTOR AND HOW IT FARED IN THE LAST ONE YEAR EVEN WHEN TURMOIL WAS STARING AT EACH OF THEM.

2010

AGRICULTURE

IRRIGATION

INFOTECH

POWER

TELECOM

INDUSTRY

HEALTH

EDUCATION

INNFRASTRUCTURE

HOUSING

TOURISM

RURAL DEVELOPMENT

Agriculture BEING AN AGRARIAN STATE, ANDHRA PRADESH IS FOLLOWING NEW TRENDS WITH CHANGING TIMES TO MAKE ITS AGRICULTURE SECTOR MORE ROBUST.

BESIDES IMPLEMENTING THE NATIONAL AGRICULTURE INSURANCE SCHEME (NAIS) FOR THE FIRST TIME IN THE

STATE, THE GOVERNMENT HAS ALSO IMPLEMENTED A NEW SCHEME NAMELY

“WEATHER BASED CROP INSURANCE” DURING KHARIF 2009 SEASON FOR RED CHILLY CROP IN GUNTUR DISTRICT ON A PILOT BASIS AND IT IS BEING IMPLEMENTED SUCCESSFULLY.

Andhra Pradesh continues to be one of the leading agrarian States in the country with a sizeable presence in the crop sector, horticulture, sericulture, and livestock and ﬁsheries sectors. The State continues to be the third largest producer of food grains in the country with a second position in respect of rice production. The agricultural GSDP was Rs.91,000 crores for the year 2008-09 and this constitutes 24.5 per cent of State’s GSDP and about 11 per cent of Country’s agricultural GDP. In the cur34

rent ﬁscal, a sum of Rs.18,300 crores was distributed as crop loans till 31st December 2009 and it had gone up to Rs.20,000 crores by 31st March, 2010. The State had achieved an average annual growth rate of 8.9 per cent in quantitative terms for food grains production. Agricultural credit at affordable interest rate is an important input in the development of agriculture. The crop loans in A.P have doubled in the four years period 2004-2008 and have 2010

reached a level of Rs.16,469 crores in 2008-09. The total agriculture loans in the State outstanding as on 31st December, 2009 are Rs.62,005 crores which approximately accounts for 17.5 per cent of total agricultural loans in the country and in absolute terms this is the highest for any State in the country. The rural credit deposit ratio of the com-

strengthened during the year 201011 with a subsidy of Rs.375 crores. The other programmes viz., the Rythu Chaitanya Yatralu, Polam Badi and Rythu Sadassulu are being actively pursued. The Integrated Pest Management (IPM) programmes in Polambadi have contributed in scaling down the consumption of pesticides to 1381 MTs during

mercial banks in A.P continues to be highest in the country.

2008-09 which was as high as 4,000 to 5,000 MTs earlier.

Availability of quality seeds is very important for improving the farm productivity. In recognition of this, the government is not only effectively implementing the seed village programme but has also supplied 22.50 lakh quintals of quality seed to farmers at 50 per cent subsidy amounting to Rs.320 crores during the current ďŹ scal year. This scheme is sought to be

Crop Insurance scheme is operational in 22 districts with village as the unit. This has been introduced for higher accuracy in assessment of losses. As regarding compensation for Kharif 2008, an amount of Rs.801.20 crores has been released and paid to the affected farmers. Besides implementing the National Agriculture Insurance Scheme (NAIS) for the ďŹ rst time in

2010

AVAILABILITY OF QUALITY SEEDS IS VERY IMPORTANT FOR IMPROVING THE FARM PRODUCTIVITY.

IN RECOGNITION OF THIS, THE GOVERNMENT IS NOT ONLY EFFECTIVELY IMPLEMENTING THE SEED VILLAGE PROGRAMME BUT HAS ALSO SUP-

22.50 LAKH QUINTALS OF QUALITY SEED TO FARMERS AT 50 PER CENT PLIED

SUBSIDY AMOUNTING TO

RS.320 CRORES

DURING THE CURRENT FISCAL YEAR.

the State, the Government has also implemented a new scheme namely “Weather Based Crop Insurance” during Kharif 2009 season for Red Chilly Crop in Guntur District on a pilot basis and it is being implemented successfully. The Government is implementing the Rashtriya Krishi Vikas Yojana (RKVY) in the State with 100% Central assistance. Under this scheme, seed management, extension services, farm mechanization, induction of milch animals etc., are being implemented.

districts of Andhra Pradesh, with a view to provide supplementary avenues of income to the farmers. The package has been initially sanctioned for 3 years from 2006-07 with a ﬁnancial outlay of Rs.247.07 crores, and subsequently extended till September 2011. As part of this programme, so far about 44,000 milch animals have been distributed to farmers in the aforesaid districts. An amount of Rs.3028 crores is provided for Agriculture and allied Sectors in 2010-11 Budget Estimates.

Livestock There are about 92.54 lakh families engaged in livestock and livestock related activities in the state. 23.63 lakh families are directly dependent on livestock for their livelihood. Andhra Pradesh with annual milk production of 95.69 lakh metric tonnes stands second in the country surpassing Rajasthan and Punjab. Andhra Pradesh continues to be at ﬁrst position in egg and broiler production. The Government has been actively promoting live stock activity in the State through the programmes like Pasukranti and Jeevakranti for insulating the income of the farmers against the vagaries of drought. The Government of India has sanctioned Special Livestock and Fisheries Package under Animal Husbandry Sector and Rehabilitation of farmers in the Prime Minister’s package for 16 distressed

THE STATE HAD ACHIEVED AN AVERAGE ANNUAL GROWTH RATE OF

8.9 PER CENT

IN QUANTI-

TATIVE TERMS FOR FOOD GRAINS PRODUCTION.

AGRICULTURAL CREDIT AT AFFORDABLE INTEREST RATE IS AN IMPORTANT INPUT IN THE DEVELOPMENT OF AGRICULTURE. THE CROP LOANS

A.P HAVE DOUBLED IN THE FOUR YEARS PERIOD 20042008 AND HAVE REACHED A LEVEL OF RS.16,469 CRORES IN 2008-09. IN

2010

“Necessary act and rules are under active consideration to enable a person for establishing Spot Exchange for trading through electronic media” THE DEPARTMENT OF MARKETING IN THE STATE OF ANDHRA PRADESH HAS BEEN ONE OF THE MOST INNOVATIVE IN TERMS OF STRATEGICALLY MAINTAINING IS COMMODITY MANAGEMENT AND ENSURING THAT THE RESPECTIVE FARMER GROUP ARE NOT AT LOSS. THE DEPARTMENT HAS BEEN ABLE TO EVOLVE NEW MARKETING STRATEGIES IN THE LEST ONE YEAR TO SEE THAT THE AGRI-POPULATION DOES NOT SUFFER.

Andhra Pradesh (Agricultural Produce and Livestock) Markets Act was amended in May, 2005 incorporating certain new provisions on private markets, National Integrated Produce Markets, Special Markets, Contract Farming etc., in accordance with the provisions of the Model Markets Act communicated by Government of India to meet the challenges taking place in the agricultural marketing sector in the world. The status of these new provisions after the amendment to the Act are:

Private Markets A provision of Sub-Section (7) of Section 7 of the Market Act was incorporated for establishment of Private Markets in the State with the participation of private entrepreneurs for enhanced market infrastructure and for more competitiveness. Relevant Market Rules were also amended and incorporated at Rule 53-A of Andhra Pradesh Agricultural Produce & Livestock Market Rules, 1969. A minimum investment provision of not less than Rs.10.00 crores is prescribed for establishment of a private market. The following companies have come forward for establishing private markets in the State. (a) M/s Metro Cash and Carry 38

India Private Limited:- Government have issued a licence to this multinational company under 7 (7) of the AP Markets Act for establishment of a private market at Hyderabad in November, 2006. It established a private market on Hub and Spoke Market concept with an initial investment of about Rs.100 crores. Spoke Markets are collection centres at the village through direct marketing from the farmers and Hub Market in Hyderabad. It is functioning successfully in accordance with the provisions of AP Markets Act. Metro Cash & Carry proposed to establish another Private Market at Uppal, Hyderabad for which the Government issued a Letter of Intent for commencement of the project (b)M/s Sri Satyanarayana Cold Storage (Pvt.) Limited:- (under M/s Continental Warehousing Corporation Limited). This company has applied for establishment of Private Market under 7 (7) of the Act. Government have issued a letter of intent for the private market (c)M/s Sri. Bhuvaneswari Multiplex Pvt.Ltd:- This company has applied for establishment of Private Market under 7 (7) of the Act. Government has issued a letter of intent for commencement of the project.

National Integrated Produce Markets A provision is made in the Act under Sections 7 – A and 7 – B for establishing a National Integrated Produce Market and exempted the NDDB from the provisions of the Act. And the NDDB is formulating to establish the integrated produce markets for fruits and vegetables in important metros in the State.

Damodar Rajanarasimha, Minister for Marketing & Warehousing

TO PROVIDE AN ALTERNATIVE MARKETING STRUCTURE THAT PROVIDES MULTIPLE CHOICES TO FARMERS FOR SALE OF PRODUCE, ALONG WITH COMPREHENSIVE SOLUTION TO MEET KEY NEEDS OF STAKEHOLDERS, THE

SCHEME OF TERMINAL MARKETS COMPLEX HAVE BEEN CONCEPTUALIZED AND INTRODUCED AS A

NHM. THE GOVERNMENT OF AP HAS IDENTIFIED 4 CENTERS HYDERABAD, VISAKAPATNAM, TIRUPATHI AND GUNTUR FOR SETTING UP OF TERMINAL MARKETS. NEW ITEM UNDER

2010

Special Markets A provision is also made in the Act under Sections 4(1-B) and 5-A establishing commodity speciﬁc markets for cotton, chillies, turmeric etc., in the State. Government have already initiated action in this regard for chillies in Guntur, Cotton in Adilabad, turmeric in Nizamabad etc.

Contract Farming Though a provision is made under Section 11-A of the Act, the contract farming transactions have yet to take place into the tripartite agreements among contract farming buyers and sellers and the Market Committees. Steps are being taken to bring these transactions into the fold of the Markets Act.

E-Market/Spot exchange Necessary act and rules are under active consideration to enable a person for establishing Spot Exchange for trading through electronic media

purview of Markets Act 1966. Rythu Bazars are located on Government land convenient to both the farmers and consumers. Across the State 105 Rythu Bazars are functioning in Andhra Pradesh.

PRICES OF THE VEGETABLE ARE FIXED THROUGH A COMMITTEE OF FARMERS AND THE DEPARTMENTAL

Prices of the vegetable are ﬁxed through a committee of farmers and the departmental ofﬁcer. The prices of vegetable of Rythu Bazars are generally 25% above the wholesale prices and 25 % less than the local retail price, thus reducing the gap between farm gate price and retail price.

OFFICER. THE PRICES OF

A total quantity of 18 lakh metric tones of Vegetables are traded through Rythu Bazars during the year 2008-09. The Marketing Department is undertaking Market Intervention to make the vegetables available at reasonable prices when the prices of Tomato, Onions and other vegetables increase / decrease abnormally. These vegetables made available in Rythu Bazars through Self Help Groups.

PRICE, THUS REDUCING THE

RYTHU BAZARS ARE GENERALLY 25% VEGETABLE OF

ABOVE THE WHOLESALE PRICES AND

25 % LESS

THAN THE LOCAL RETAIL GAP BETWEEN FARM GATE PRICE AND RETAIL PRICE.

Terminal Markets To provide an alternative marketing structure that provides multiple choices to farmers for sale of produce, along with comprehensive solution to meet key needs of stakeholders, the Scheme of Terminal Markets Complex have been conceptualized and introduced as a new item under NHM, which may be implemented in a Public Private Partnership (PPP) mode. Being the lead State in production of perishables the Government of Andhra Pradesh have identiﬁed four centers Hyderabad, Visakapatnam, Tirupathi and Guntur for setting up of Terminal Markets. In this regard necessary steps are being taken for acquisition of land for setting up of Terminal Markets at Guntur, Tirupati,Visaikapatnam & Hyderabad.

Rythu Bazars Rythu Bazars are planned for direct interface between the farmers and the consumers eliminating middlemen. Rythu Bazars will operate outside the 2010

Irrigation SINCE THE LAST FEW YEARS, IRRIGATION HAS BEEN THE BASIC PRIORITY SECTOR OF THE GOV-

ANDHRA PRADESH. THE STATE HAD WITNESSED DRAERNMENT IN

MATIC CHANGES IN ITS APPROACH TOWARDS IRRIGATION AND LEFT NO STONED UNTURNED TO

‘JALAYAGNAM’ A BIG AIMING HIGH ON THE RETURNS OF IRRIGATIONAL INVESTMENT, THE STATE GOVERNMENT MAKE

SUCCESS.

HAD ALLOCATED A TOTAL

RS. 68074 CORES SINCE 2004-05 TO 2010, OF WHICH RS.53,206.29 CRORES BUDGET OF

HAVE BEEN SPENT ON

86 PROJECTS. SO FAR, 12 IRRIGATION PROJECTS HAVE BEEN FULLY COMPLETED AND

OF THEM ARE PARTIALLY COMPLETED. THE TOTAL

IP (IRRIGATION POTENTIAL) CREATED UNDER

MEDIUM PROJECTS SINCE 200405 TO 2009-10 IS 19.26 LAKH ACRES. THE MAJOR AND

paara Bhagiratha’ is the apt term to describe late. Dr. Y.S.Rajashekhara Reddy, the former Chief Minister of Andhra Pradesh, for he had visioned and crafted the gigantic feat of building irrigational infrastructure in the state. After Y.S.R’s sad demise, taking the baton, K.Rosaiah, the present Chief Minister had never let his vision down and had carried forward the leftover work studiously with the support of Ponnala Lakshmaiah, his able Minister for Major Irrigation. ‘

The Government has taken up Major, Medium and Minor Irrigation projects in a big way under the “Jalayagnam” programme to utilize every drop of water in the State for agriculture and drinking water purposes. Where it is not possible to command the area by gravity, lift irrigation schemes are being taken up to beneﬁt the backward and drought prone areas. The State Government aims at completing 86 Major and Medium Irrigation Projects besides taking up programmes for raising Flood Banks, 2010

Modernization of Delta and Lift Irrigation Schemes with an ultimate objective of creating new Irrigation Potential of 98.41 lakh acres, besides stabilization of 22.26 lakh acres. During 2004-05 to 2008-09, as part of “Jalayagnam” programme an additional irrigation potential of 19.26 lakh acres was created in addition to providing stabilization of 3.09 lakh acres.

are covered under normal AIBP. Efforts are being made for inclusion of 8 new projects under AIBP i.e. 6 projects under PMRP and 2 projects under Normal AIBP.

Looking back, 33 Major and Medium Irrigation projects were included under the Accelerated Irrigation Beneﬁt programme (AIBP) since 1996-97 in Andhra Pradesh. Out of these projects, 22 projects comprising 12 Major and 10 Medium were included after 200506. Central Assistance is fully received for 11 projects and these projects are treated as completed. Out of the 22 ongoing projects, 15 projects are covered under the Prime Minister’s Relief Package and the balance 7 projects

ate new ayacut of 7.47 lakh acres and modernization of 9.75 lakh acres with an outlay of Rs.3,423 Crores.

2010

Minor Irrigation is considered as a major instrument for development of the backward and tribal areas of the State. Works are in progress to cre-

Government of India has approved 90 Minor Irrigation and Lift Irrigation schemes at a cost of Rs.434.00 Crores to create new ayacut of 90,000 acres for the ﬁrst time under AIBP. A Pilot project for restoration and rehabilitation of Minor irrigation tanks was implemented with the assistance of Government of India in two districts and it has 41

from 2004-05 to 2010 is Rs. 53.206 Crores. There are 35 other projects under Jalayagnam that are under various stages of their completion. The government had spent Rs. 10,721.12 Crores on them so far. Elaborating on the expenditure incurred on the Jalayagnam projects, “There have been 12 major irrigation projects fully completed with a cost of Rs. 1,389.6 Crores to create a new IP of 3,20,633 acres in the state since 2004-05 to 2009-10. We have taken up works on 39 projects on priority with an expenditure of Rs. 30,382.80 Crores. 75 per cent of the works have already been completed and water is also released to 20 projects which has an IP of 14,07,678 acres” said, Ponnala Lakshmaiah, Minister for Major Irrigation, Andhra Pradesh.

been scaled up to 3000 tanks with 25 per cent grant from Government of India and 75 per cent loan from World Bank. In addition to the above, 3000 Minor irrigation tanks are proposed to be restored with the ﬁnancial assistance of Government of India under a new Renewal, Repair and Restoration Programme. In order to meet the requirement of power for running the lift irrigation schemes, Hydroelectric Schemes at Polavaram, Dummugudem, Kanthanapally and Pulichintala are being taken up with an installed capacity of 1850 MW Power, apart from other power projects. An allocation of Rs.15,011 crores is proposed in the budget 2010-11 for Irrigation sector. So far, the government had given an administrative sanction of Rs. 1,79,891 Crores for all the irrigation projects taken up since 2004 to 2010 and the total agreed value is set at Rs.1,19,612.94 Crores. The total expenditure incurred 42

To carry forward works on the 39 other Irrigation projects for the year 2010-11 and 2011-12 the state government requires an amount of Rs. 8,777.15 Crores for all the three regions in the state. A region wise analysis illustrates that Telangana region requires Rs. 2482.02 Crores and Rs. 968.63 Crores for the year 2010-11 and 2011-12 respectively to contemplate 23,08,587 acres of new area and stabilize 30,00,0 acres of existing areas. For Rayalaseema, Nellore and Prakasam regions an amount of Rs. 4,128.19 Crores are required to contemplate and stabilize an area of 11,60,025 acres and 1,04,724 acres respectively for the same period. The Andhra region has the largest stabilization area of 1,39,048 acres while the new contemplated area is only 6,58,685 acres. The region requires a total of Rs. 1198.47 Crores for the current and coming years. Of all the total irrigation projects taken up by the government, water was released in to 20 projects. These projects have almost reached their full completion except with small pending works of canal lining or other minor bund works. In Andhra region, Vamshadara, Jhanjhavathi, Thotapally and Tadipudi lift irrgation projets are prominent among the water released 2010

Completed projects under Jalayagnam Projects

Administrative Sanction (Rs. Crs.)

Expenduture from 2004-05 to 2010 (Rs. Crs.)

Districts beneďŹ ted

New IP(Irrigation Potential)

IP Stabilization

Andhra Region Chagalnadu LIS

70.77

75.03 East Godavari

22846

Peddagedda Reservoir

73.19

91.89 Vizianagaram

7500

4500

K.V. Ramakrishna Surmpalem Reservoir

51.38

52.21 East Godavari

14207

15000

9700

Madduvalasa

132.17

Tenneti Viswandham Pedderu Reservoir Kovvadakava Project

152.51 Srikakulam

38.41

50.02 Visakhapatnam

9601

9721

68.1

60.87 West Godavari

15000

72874

Rayalaseema Region Sri Magunta Subbarami Reddy Ramatheertham BR

Swarnamukhi Barrage Veligallu Project

44.93 Prakasam

52.04

55.4 Nellore

9100

208.72

173.46 Kadapa

24000

Telangana Region Alisagar LIS Arugula RajaramGuthpa LIS Gaddena-Suddavagu Project

261.3

248.09 Nizamabad

53792

204

184.7 Nizamabad

38792

14000

131254

189379

186.68

Grand Total

146.34 Adilabad

1389.76

1335.45

Total IP created

131254+189379 =320633

Region wise status of Various projects in the state: Region

75% and Above

50% to 75%

25%to 50%

Below 25%

No of projects

Amount in No of Amount in No of projects Amount in Rs. (Crores) projects Rs. (Crores) Rs. (Crores)

727

107

8717

17908

Rayalaseema, 8 Nellore and Prakasam

2375

1168

5006

9263

Telangana

2331

2096

1258

83660

Grand Total

5433

3370

14981

110831

Andhra

2010

No of projects

Amount in Rs. (Crores)

Abstract of region wise projections of 39 Projects to be taken up in 2010-11 and 2011-12 Region

Amount required (Rs Crores)

Irrigation Potential (Acres)

2010-11 Andhra

2011-12

Contemplated area

Created area

Target for year 2010-11

2011-12

940.43

258.04

2049163

254583

351580

1443000

Rayalaseema, Nellore & Prakasam

2472.08

1656.11

1264749

530007

204042

383100

Telangana

2482.02

968.63

2338587

410644

203827

929116

Grand total of 39 projects

5894.53 2882.63

5652499

1195234

759449

2755216

Rs.8777.15

3514665

Budget Expenditure from 2008-09 to 2009-10 Type of Project

Jalayagnam Projects Other Major & Medium Projects (completed) Minor & other Expenditure Total

2008-09

2009-10

Total from 2004-2010 Expenditure Budget Expenditure (Rs. In Crores) (Rs. In Crores) (Rs. In Crores)

Budget (Rs. In Crores)

Expenditure (Rs. In Crores)

Budget (Rs. In Crores)

12329

7808

14050

9596

50319

42494

901

822

843

605

5446

3430

3282

1373

2994

1953

12309

7282

16512

10002

17887

12155

68074

53206

projects. An Irrigation potential of 163869 acres of new IP was created under these projects. In Rayalaseema region, Gundlakamma Project, Somasila Project, Telugu Ganga and SRBC are the important projects under which an IP of 4,52,162.85 acres was created during 2004-05 to 2009-10. The projects in Telangana are considered to be very important because they have been taken up from the root only recently. The works on them are going on at a rapid pace to complete in time as they are the only projects to serve the irrigational needs of large tracks of hinter lands in the region. Prominent among the water released projects in Telangana are AMRP (SLBC) and SRSP-II. The AMRP (SLBC) has been given an administrative sanction of Rs. 5607.23 Crores, of which Rs. 1697.66 Crores 44

have been spent on it to create a new IP of 1,97,144 acres in the region. Under SRSP new irrigation potential of 1,60,000 acres have been created with a cost of Rs. 830.75 Crores. Among the others, Mathadivagu project, JCR-DLIS, Gollavagu and Ralivagu projects are important. JCR-DLIS is a lift irrigation project which is being build with a total cost of Rs. 9178.78 Crores of which 411.47 Crores have already been spent to create an IP of 45,000 acres. The budget on Irrigation projects in the state was just Rs.4246 Crores in 2004-05 of which Rs. 3331 Crores was spent. Since then the budget had gone up almost three folds during the year 2007-08 to Rs. 13014 Crores. Not ending there, the budget for the next consecutive years had increased to Rs. 16512 Crores and Rs.17887 Crores in 2008-09 and 2009-10 respectively. 2010

“The total IP created since 2004-05 to 2009-10 is 19.26 lakh acres” PONNALA LAKSHMAIAH, THE MINISTER FOR MAJOR IRRIGATION HAS ATTAINED THE RARE DISTINCTION OF COMPLETING 12 PROJECTS AND GETTING CLEARANCES FROM THE CENTER AND CONVINCING STATES LIKE MAHARASHTRA AND ORISSA DURING THE PAST ONE YEAR. HE SPEAKS ABOUT THE ACHIEVEMENTS OF HIS DEPARTMENT AND HIS PLANS FOR THE SECTOR. What are the major achievements of Irrigation Department in the state during 2009-10? We have achieved far greater achievements in a very short period of just 6 years. Taking up the challenge of building 86 projects in this short span of time is not an easy task. So far we have spent an amount of Rs.53,206.29 Crores on 86 projects. 12 Irrigation projects have been fully completed and 20 are partially completed. The total IP (irrigation potential) created under the major and Medium projects since 2004-05 to 2009-10 is 19.26 lakh acres. During the past one year our major achievement was to convince the state Government of Maharashtra, which has finally given its nod to the Rs.38,500 crore Pranahita-Chevella project proposed by Andhra Pradesh to utilize 160 tmcft of water from the Pranahita river. The project seeks to irrigate 16.4 lakh acres in Nizambad, Adilabad, Karimanagar, Medak, Ranga Reddy, Warangal and Nalgonda districts and provide 30 tmcft to Hyderabad. Maharasthra’s gesture is significant, considering the row between the states over the Babli project and 11 other barrages being built across the Govdavari. After giving its ‘tacit consent’, the Maharastra government had asked Andhra Pradesh to constitute an inter-state committee with officials from both states. This panel will oversee operation and maintenance of the 6,477meter long barrage proposed across the Pranahita at Tummudi Hatti in Adilabad district with its 2,301 meter long earthern dam on the left bank lying in Kungada village in Maharasthra. We have also offered to pay whatever compensation sought against 2010

1,800 hectares of land in Maharashtra which will be submerged by the barrage’s reservoir. The project was already cleared by the Godavari water Disputes Tribunal and the inter-State agreement signed in 1975. What is the budget allocation for the year 2010-11 and what are your priorities for the current year? We have allocation of Rs.15,011 crores in the budget for the year 2010-11 for Irrigation sector. The most important priories for the current year is to complete all the 39 projects by the end of 201011. Completion of all these projects will incur an expenditure of Rs. 30,382.80 Crores which will create an irrigation potential of 14,07,678 acres in the state. What are your future plans for the next one year and where do you place Andhra Pradesh in terms of Irrigation in the country? At any cost, we are determined to complete all the initiated irrigation projects in time. Irrespective of hurdles and bottlenecks there is no change in our determination. The unfortunate demise of YSR had created a great void initially, but that has been ﬁlled with our able leader Dr. K. Rosiah who is the strength behind our vision. Now, we are even more determined to realize the dream of our beloved leader. In the next two years we are planning to create an Irrigation potential of 3514665 acres with an estimated cost of Rs.8777.15 Crores. We are focusing more towards the underdeveloped areas of Telangana and Rayalaseema and trying to provide irrigational facilities wherever it is easily available and possible on priority.

Ponnala Lakshmaiah, Minister for Major Irrigation, Government of Andhra Pradesh

DURING THE PAST ONE YEAR OUR MAJOR ACHIEVEMENT WAS TO CONVINCE

GOVERNMENT OF MAHARASHTRA, WHICH THE STATE

HAS FINALLY GIVEN ITS NOD

RS.38,500 CRORE PRANAHITA-CHEVELLA PROJTO THE

ECT PROPOSED BY ANDHRA

PRADESH TO UTILIZE 160 TMCFT OF WATER FROM THE

PRANAHITA RIVER. 45

InfoTech THE GOVERNMENT OF ANDHRA PRADESH ASPIRES TO TRANSFORM THE STATE INTO A KNOWLEDGE SOCIETY AND MAKE AVAILABLE THE BENEFITS OF INFORMATION TECHNOLOGY TO ALL CITIZENS, ESPECIALLY THOSE IN RURAL AREAS AND LIVING IN POVERTY.

THE STATE ALSO WISHES TO BECOME A LEADING DESTINATION FOR INVESTMENTS IN INFORMATION

& COMMUNICATIONS TECHNOLOGY (ICT) AND A MAJOR PLAYER IN THE INFORMATION ECONOMY.

THE STATE WILL LEVERAGE ICT FOR ACHIEVING AN INFO-AGE (INCLUSIVE, NETWORKED, FAST, OPEN, ACCOUNTABLE, GLOBALLY BENCHMARKED AND EFFICIENT) GOVERNMENT.

ndhra Pradesh is currently looking at repositioning Hyderabad as a destination of investment. The state along with NASSCOM is looking at identifying Engineering Services as a new vertical in ICT Sector. The State government and NASSCOM are planning to work on policy measures for attracting Engineering Services Companies in AP which shall include special incentives package and creation of Product Testing Lab. The state is also working closely with NASSCOM on promoting Anima-

tion Industry in Andhra Pradesh. Today, Andhra Pradesh is the ямБrst state in India to treat IT Industry under ESMA Act which will provide a Safety Cover to Industry and enable 24/7 seamless operation in the state. It will reinforce assurance to the Industry and enable attracting new Investments in the state of Andhra Pradesh. One of the leading states in Information Technology and Information Technology-Enabled Services sectors, 2010

the state is also developing an Information Technology Investment Region (ITIR) over 50,000 acres of land around Hyderabad. The massive 25-year plan is aimed at attracting an investment of Rs 2.19 lakh crore in the IT\ITES sectors and create direct employment for 15 lakh youths. Besides, it also holds promise for an indirect employment for 53 lakh persons.

planning to have a new Information Technology Policy in place. The existing policy, which came into force in 2005, ended in March 2010.

State Chief Minister K Rosaiah approved the ITIR plan and it has been sent to the Government of India for sanctioning. AP will be the ďŹ rst state in the country to have an ITIR. The ITIR would come up around Gachibowli, Mamidipalli and Maheshwaram areas in an extent of 50,000 acres spread over 200 sq km. It is estimated that the ITIR will enable the state to step up its IT exports to Rs 2.35 lakh crore in the next 25 years. The state government would also like to develop a similar ITIR at Visakhapatnam. The state is also

in the Hardware Park and generated jobs for 33,639 persons.

2010

The IT/ITES sector in Hyderabad (Cyberabad) has an investment potential of Rs.25,497 crore and job creation of 4,64,750 persons. The sector so far attracted investments of Rs.3,543 crore

Software Exports Software exports from Andhra Pradesh have declined by a sharp 40 per cent in 2009-10, a claim which was disputed by the industry. Software exports from Andhra Pradesh stood at Rs 22,000 crore in 2009-10 against Rs 32,509 crore in 2008-09, as per the ďŹ gures presented to the state legislative assembly in the just-concluded Budget session. 49

TODAY, ANDHRA PRADESH IS THE FIRST STATE IN INDIA TO TREAT IT INDUSTRY UNDER ESMA ACT WHICH WILL PROVIDE

SAFETY COVER TO INDUSTRY AND ENABLE 24/7 SEAMLESS A

OPERATION IN THE STATE. IT WILL REINFORCE ASSURANCE TO THE INDUSTRY AND ENABLE ATTRACTING NEW INVESTMENTS IN THE STATE OF

PRADESH.

ANDHRA

On other hand, a whopping 25,000 new jobs were created in the IT sector in 2009-10 compared to 12,786 last year. Satyam scam and the turmoil in the state over the Telangana issue seem to have hit the exports from Andhra Pradesh, once a preferred destination for IT companies to set up shops. “Exports seemed to have tumbled because of various factors like the Satyam fiasco, global economic recession and, of course, the political turmoil in the state in the last few months. The impact of Satyam saga on the IT sector in Andhra Pradesh could not be undermined,” a top official of the state information and communications technology department said. A senior official of the Information Technology and Services Industry Association of AP (formerly Hyderabad Software Exporters Association), however, said software exports were expected to be “flat” in 2009-10. “The software export revenues were expected to remain flat because of the economic slowdown but we do not expect them to fall so drastically,” the industry official said. Buoyed by Rs 12,000 crore exports at the end of the second quarter of the

fiscal, the industry body had initially projected a growth of 10 to 12 per cent for the whole fiscal. AP’s software growth story had actually been remarkable. From just Rs 284 crore in 1997-98, software exports touched Rs 32,509 crore in 200809, peaking from Rs 3,668 crore (in 2002-03), Rs 5,025 crore (2003-04), Rs 8,270 crore (2004-05), Rs 12,521 crore (2005-06), Rs 18,582 crore (2006-07) and Rs 26,122 crore (200708). The IT sector also grew exponentially over the years starting with 8,700 employees in 1997-98 to 2,51,786 in 2008-09. The IT sector in the state has grown exponentially over the years. The industry employed 2,51,786 people in 2008-09, far greater than 8,700 employees in 1997-98. Andhra Pradesh also has the highest number (57) of IT Special Economic Zones approved in the country, of which 43 have already been notified. “By February, 2010, 15 notified SEZs have become operational creating employment for 24,030 IT professionals. With the IT sector expanding to tier-II cities like Visakhapatnam and Vijayawada, we expect software exports to pick up once again in 2010-11,” the ICT official said. 2010

e-Governance The state has undertaken several e-Government initiatives to provide convenient and transparent services to citizens and to promote greater efficiency within the government department. IT e-GOV Projects Human Resource Management System (HRMS) The main objective of the project is creation of a G2E portal - a self-service zone for government employees, automating the HR, administration and service procedure of AP government and providing a unified view of deployment of human resource. Its main modules are Pay Roll, Service matters, Leave Account, Transfers & Postings and Retirement benefits. Social benefit management system (SBMS) This application aims at bringing transparency and improved quality of services to student community by automating Scholarship sanction and disbursement of amount directly through bank. File Management System Govt. functions and administrations all over the world moves around files. Any improvement in managing files in any office can add lot of value in providing efficient and transparent to citizens.

KM-ATOM- File Management System The revolution of KM-ATOM is fast spreading in all the departments and district collectorates of the state showing the way for others too. The use of KM-ATOM has helped in reducing red-tapism and helped ofﬁcials to do their job more effectively. It also provides powerful MIS for improving accountability in ofﬁce environment.

e-Procurement The e-Procurement marketplace for the Government of Andhra Pradesh was launched on January 29, 2003. This initiative is a part of the state government’s efforts to increase efﬁciency in all its departments through faster and more transparent and automated procurement procedures. The government plans to eventually extend it to all the departments. With this launch, Andhra Pradesh becomes the ﬁrst State to adopt e-procurement.

THE IT SECTOR IN THE STATE HAS GROWN EXPONENTIALLY OVER THE YEARS. THE INDUSTRY

2,51,786 PEOPLE IN 200809, FAR GREATER THAN 8,700 EMPLOYEES IN 1997-98. ANDHRA PRADESH ALSO HAS THE HIGHEST NUMBER (57) OF IT SPECIAL ECONOMIC ZONES APPROVED IN THE COUNTRY, OF WHICH 43 HAVE ALREADY BEEN NOTIFIED. EMPLOYED

Jawahar Knowledge Centres have been established across the state with the purpose of: To promote the Government University Industry interaction To provide conducive environment for learning by doing in colleges

The objectives are: Automate the workﬂow Enhance employer productivity Create and enable online access to knowledge base (like Acts, GOs, rules, judgements, policies, references etc. for quality decisions) Monitoring and tracking of ﬁles for improved accountability Informed decision Paperless work atmosphere in government departments 2010

THE E-PROCUREMENT MARKETPLACE FOR

GOVERNMENT OF ANDHRA PRADESH THE

WAS LAUNCHED ON

JANUARY 29, 2003. THIS INITIATIVE IS A PART OF THE STATE GOVERNMENT’S EFFORTS TO INCREASE EFFICIENCY IN ALL ITS DEPARTMENTS THROUGH FASTER AND MORE TRANSPARENT AND AUTOMATED PROCUREMENT PROCEDURES.

To promote the dissemination of knowledge fostering the innovative thoughts of the students To develop and deploy e-Governance applications done in a cost-effective manner, thus upgrading the quality of life of the citizens To empower students living in the rural areas so as to bridge the Urban - Rural divide To undertake research and apply these fruitful results to the beneﬁt of the society To produce readily employable graduates by imparting industry grade skills

NASSCOM Knowledge Centre NASSCOM Foundation, the CSR arm of NASSCOM, and General Electric’s community outreach foundation, have launched a knowledge centre in Andhra Pradesh under the NASSCOM Knowledge Network programme.

literacy skills as an added educational tool to gain a competitive edge. The centre will also provide multipurpose services such as education, health, e-governance and other services. Called GEMS-NASSCOM Knowledge Centre, it is the ﬁrst of the centers to be inaugurated in the Nasscom - GEMS partnership, and will function in partnership with Don Bosco Navajeevan Society in Bhoiguda, Secunderabad and Ramanthapur, Hyderabad. Together they will facilitate access to information and essential services and provide opportunities to enhance employability through capacity building and training tools, using ICT and address the needs of children and youth by training them on various skills through personality development activities. (With inputs from PTI)

The centre is aimed at helping underprivileged children enhance computer 52

2010

Power WHILE INCREASING THE INSTALLED POWER

14047 MW ON ONE SIDE, THE POWER SECTOR IN THE

CAPACITY TO

STATE HAD ELECTRIFIED ABOUT

13,215 UN-

ELECTRIFIED HABITATIONS

26.70 LAKHS RURAL HOUSEHOLDS INCLUDING 21.50 LAKH BPL RURAL HOUSEHOLDS AT A COST OF RS.671 CRORES DURING 2009-10 ON THE OTHER. AND

ower sector has been given the highest priority by the Andhra Pradesh government during the past one year. Many Hydro Power and Thermal power projects have been taken up to build up the required capacity. Year after year, the demand for power among the population and the Industry is growing exponentially. The power sector in Andhra Pradesh is bifurcated in APTransco and APGenco. The present installed capacity in the state is 14,047 MW. All the existing gas 54

based power projects have become fully operational with the commencement of supply of gas from the D6 block of KG basin. The stage 4 unit of VTPS has also been operational recently. With this, APGENCOâ&#x20AC;&#x2122;s installed capacity has reached 7587.9 MW, accounting for 40% of total energy requirement of the State. Keeping in view, the future power demand of the State, the Government has allowed the APGENCO to take up massive capacity addition programme 2010

of adding 17,558 MW. Of this, APGENCO is already in the process of implementing 10 projects with a total installed capacity of 3946 MW. Besides, 10 more projects with a capacity of 13612 MW are also planned. APGENCO has bagged the “Indian Power Award2009” instituted by Council of Power Utilities for overall utility performance in thermal generation.

Under the Rajiv Gandhi Gramin Vidyudikaran Yojana (RGGVY) programme launched in Andhra Pradesh, it was proposed to electrify 14,334 unelectriﬁed habitations and 38 lakh rural households including 25 lakhs BPL Rural Households at a cost of Rs. 810 crores.

High Voltage Distribution System has also been implemented in 5.85 lakh Agricultural services with a total expenditure of Rs.1,838 crores for reduction of losses and improvement of voltage proﬁle.

trification programme of AP TRANSCO, “ as on 31st December 2009, we have electrified about 13,215 un-electrified habitations and 26.70 lakhs rural households including 21.50 lakh BPL Rural Households at a cost of Rs.671 crores,” said Ajay Jain, CMD, A.P. Transco.

APTRANSCO Andhra Pradesh Transmission Corporation is the sole body in the state looking after the power transmission to domestic, agriculture and industrial sectors in the state. 2010

Giving a brief elaboration on the statistical achievements of rural elec-

“Out of 1.73 lakh applications registered under INDIRAMMA urban household electriﬁcation programme, we have electriﬁed 1.71 lakh urban households. The balance households which are left 55

un-electriﬁed are slated to be completed by the end of March 2010,” he said.

KEEPING IN VIEW, THE FUTURE POWER DEMAND OF THE

STATE, THE GOV-

ERNMENT HAS ALLOWED

APGENCO TO TAKE UP MASSIVE CAPACITY ADDITION PROGRAMME OF ADDING

17,558 MW. OF THIS, APGENCO IS ALREADY IN THE PROCESS OF IMPLEMENTING 10 PROJECTS WITH A TOTAL INSTALLED

3946 MW. BESIDES, 10 MORE PROJ-

CAPACITY OF

ECTS WITH A CAPACITY OF

13612 MW ARE ALSO PLANNED.

Initiating further reforms, AP TRANSCO has grounded the plan of feeder bifurcation programme on the pilot basis. The feeders will be distinguished clearly for agriculture, industries and household purposes. “As the agriculture sector is suffering severely with the present supply system, the feeder bifurcation system would deﬁnitely enable 24 hour power supply in the future, if the pilot program is successful we shall gradually extend it to the other parts of the state” said the CMD. During the year 2008-09 AP TRANSCO has supplied 67,387 million units with a minimum transmission loss of 18.5 percent which is the lowest in the country. Transco had 99.7 percent available supply capacity which is equal to available capacity of PGCIL. AP TRANSCO has been adding 14,086 MW of power to T&D network every year. as the government of Andhra Pradesh has taken up lot of lift irrigation projects, Transco has played a vital role in providing power supply to all these projects.

As on date, of the 21 power projects, 11 are in various stages of execution. The ongoing projects, estimated to cost Rs 25,000 crore, will have a total generating capacity of 4,363 MW. These include the Krishnapatnam power plant with an installed capacity of 1,600 MW costing Rs 8,500-crore and 1,100 MW Kakatiya thermal power plant. The ﬁnancial Director Prabhakar Rao said, “We have achieved ﬁnancial closure for all the ongoing projects, which will be executed over the next three years.” Even before the completion of the ongoing projects, APGenco is taking up 10 new projects, estimated to cost Rs 55,000 crore. The new projects include the Rs 6,000 crore, 2100 MW gasbased power plant in Karimnagar, Rs 16,500crore, 4,000 MW ultra mega power project at Vodarevu and Rs 4,500 crore 900 MW hydel power plant at Polavaram.

Under the JBIC funding, AP TRANSCO had spent 940 crores and constructed 8 JIS substations and built 2x400kV substations and laid under ground cable in Hyderabad as a part of modernization drive in the city.

APGENCO APGENCO is third largest power generating utility in the Country next to NTPC and Maharashtra. It’s installed Hydro capacity of 3703.4 MW is the highest among the Country. APGENCO had an equity base of Rs.2117 crores with 11,000 dedicated employees as on 30th June 2009. The company has an asset base of approximately Rs.17344 crores. In an attempt to unleash its complete potential APGENCO has embarked upon an ambitious plan of setting up 21 power plants with a combined capacity of 15, 900 MW and an investment of Rs 80,000 crores over the period of next ﬁve years. 56

2010

“About 25000 MW is being proposed by Private developers with coal as fuel” EVERY DROP HAS THE POTENTIAL TO GENERATE ENERGY STORED IN IT, BUT THE RESOURCES TO EXTRACT IT ARE SCARCE. FOR ANDHRA PRADESH THE ONGOING POWER PROJECTS WILL PLAY A CRUCIAL ROLE IN SUFFICING THE POWER NEEDS IN THE NEAR FUTURE, BUT THE PRESENT SITUATION IN THE STATE IS CRITICAL AS THE DEMAND FOR POWER IS INCREASING 10-12 PERCENT EVERY YEAR. GIVEN THE UNEVEN SEASONAL PERFORMANCE LAST YEAR THE HYDRO ELECTRICITY CAPABILITY HAS DRASTICALLY REDUCED. SIMILARLY, THE PRICE RISE OF NATURAL GAS AND COAL HAS LIMITED THE CAPABILITY OF THERMAL POWER STATIONS. DESPITE OF ALL THE DRAWBACKS AND HURDLES, THE ENERGY DEPARTMENT HAD LEFT NO STONE UNTURNED TO SEE EVERY SECTOR GETS ADEQUATE POWER SUPPLY. SUTIRTHA BHATTACHARYA, PRINCIPAL SECRETARY TO GOVERNMENT, ENERGY DEPARTMENT, ANDHRA PRADESH SPEAKS TO AMGUTH R AJU ABOUT THE DEPARTMENT’S PRIORITY AREA, STRATEGIES AND SIGNIFICANT ACHIEVEMENTS. How do you view the Energy situation in Andhra Pradesh and what measures have been taken by the Energy Department to meet the growing power demand in the state? During the past one year Andhra Pradesh had faced a severe power shortage following a prolonged lull in monsoon. The Krishna and Godavari rivers and all the reservoirs are virtually empty affecting hydro power generation. The contribution to the State grid by these Hydro power stations had gone down from 60 million units (MU) a day around this time last year to around 10 to 15 million units now. The government is able to supply only 154 MU a day to consumers in all the sectors against the demand of 200 MU a day. Keeping in view all these challenges, the Power Generating Company of Andhra Pradesh (APGENCO) has an installed capacity of 7587.9 MW and is the third largest Power Utility in the country. APGENCO’s Hydel Installed Capacity is Second Highest in India. What are the important priority areas of Energy Sector during the year 2010-11? Our priority is always to see that we provide adequate power supply for all sectors through out the year. For which we are continuously upgrading the power generation capability and regularly checking the transmission losses. For the year 2010-11 the priority for Andhra Pradesh Generation Corporation 58

is programmed to add 891MW of power. Accordingly each thermal unit in different parts of the state are programmed to reach the set targets. For example the Rayalaseema TPP unit will contribute 210 MW, Kothagudem TPS will contribute 500 MW and Jural HEP will contribute 117 MW for the year 2010-11. Similarly, the priority for APTRANSCO (Andhra Pradesh Transmission Corporation) and DISCOMs (Distribution companies) for the year 2010-11, is to reduce the T&D Losses, Building Transmission & Distribution Infrastructure, meeting the maximum peak Loads and maintaining reliable power supply and ensuring effective metering at all levels of voltages. Our experience of being regularly affected by the uneven monsoons and inadequate rains have made us think seriously to prioritise areas of renewable resources like Wind power & Solar Power for the year 201011. We have already initiated works in respect of Six 220 kV & Eighteen 132 kV substations with associated lines that are expected to be completed by the end of 2010-11 with an estimated cost of Rs.1060 Crores. For the Lift Irrigation Schemes, we are planning to commission 17 new substations of 220 kV at a cost of Rs 574 Crores by the end of the year 2010-11. Similarly, 4 new 132 kV power stations are to be com-

Sutirtha Bhattacharya, IAS Principal Secretary to Government, Energy Department

WE HAVE FOCUSED OUR PRIORITIES TO MEET THE FUTURE DEMANDS OF URBAN AREAS, ESPECIALLY FOR

HYDERABAD.

IT IS ESTIMATED THAT BY END OF 2019-20 THE CITY NEEDS 5000 MW OF POWER TO WITHSTAND THE INDUSTRIAL LOADS OF HARDWARE PARK AT MAMIDIPALLI AND IT SEZ AT MANIKONDA AND RAYADURG AS PROJECTED BY APIIC 2010

missioned at a cost of Rs 32 Crores during the current year. Name of the Project

PFC and other Financial Institutions. An amount of Rs. 1265 Crores is Capacity Addition Programmed during 2010-11

Thermal: Rayalaseema TPP Unit 5 (1x210MW)

210

Kothagudem TPS Stage VI (1x500 MW)

500

Hydel: Pochampad HEP Unit 4 (1x9 MW)

Priyadarshini Jurala HEP (3x39 MW)

117

Nagarjunasagar Tail Pond Dam (2x25MW) 25 Pulichintala HEP (4x30 MW)

Total

891 MW

Except for the Bhoopalapalli Power Transmission Scheme, the works on the following Power Generation projects are under brisk progress: Vijayawada Power Transmission Scheme Bhoopalapalli Power Transmission Scheme - completed Kothagudem Power Transmission Scheme Krishnapatnam Transmission Scheme Priyadarshini Jurala Hydro Electric Scheme Nagarjunasagar Tailpond Hydro Electric Scheme This apart we have also focused our priorities to meet the future demands of urban areas, especially for Hyderabad. It is estimated that by end of 2019-20 the city (HMDA-Hyderabad Metropolitan Development Areas) needs 5000 MW of power to withstand the Industrial loads of Hardware Park at Mamidipalli and IT SEZ at Manikonda and Rayadurg as projected by APIIC (Andhra Pradesh Industrial Infrastructure Corporation). APTRANSCO has undertaken Hyderabad city improvement scheme with ﬁnancial assistance from JICA, 2010

already sanctioned for the above scheme. For the development of 400 kV Ring Main Transmission scheme, APTRANSCO had spent Rs 72 Crores to build a 400 kV substation at Malkaram. Currently the substation is ready for charging. Similarly, another substation of 400 kV at Yeddumylaram is also expected to be completed by end of December 2010 at a cost of Rs 115 crores. These two 400 kV Substations will relieve the existing 400 kV substation loads at Mamidipalli and Ghanapur through 220 kV and 132 kV Substations to improve the system. In the coming next 4 years, we have proposed to build 10 more 220 kV substations at Erragadda, Chilakalaguda (Osmania University), Imliban, Hayatnagar, Gunrock, Raidurg, Manikonda and Fabcity, Balanagar and HMT Hills in the next four year by 2014. Similarly we have also proposed to take up 6 new 132 kV Substations at Balkampet, Moosarambagh, Osmania University (Fever Hospital), Patigadda, Miralam Filter Bed and Mamidipalli during the next four years from 2010-2014. Proposals are also on to take up the works of GIS, Consumer indexing, and Ring fencing etc., under Part A of the programme. Our Discoms have already submitted

proposals to PFC and got sanction for an amount of Rs. 388 crores. Most cost effective procurement in India has been done by us. PFC has already released Rs 116.43 Crore (30%) of sanctioned amount as an advance. Implementation agency for the same has been appointed by the Discoms. We are conﬁdent that we will implement Part A within three years and get the loans converted into grants. Further, our DISCOMS have submitted proposal under Part B and got sanction for an amount Rs. 232.68 Crores. PFC has released an amount of Rs 34.4 crores (15%) towards advance. What were some of the signiﬁcant achievements of Energy Department during the year 2009-10? The achievements of energy department are mainly attributed to three major companies—APGENCO, APDISCOMS and APTRANSCO dealing with power generation, Distribution and Transmission respectively.

APGENCO (Andhra Pradesh Generation Corporation) APGENCO has generated 32097 MU of power during the year 2009-

THE PRIORITY FOR APTRANSCO (ANDHRA PRADESH TRANSMISSION CORPORATION) AND DISCOMS (DISTRIBUTION COMPANIES) FOR THE YEAR 2010-11, IS TO REDUCE THE T&D LOSSES, BUILDING TRANSMISSION & DISTRIBUTION INFRASTRUCTURE, MEETING THE MAXIMUM PEAK LOADS AND MAINTAINING RELIABLE POWER SUPPLY AND ENSURING EFFECTIVE METERING AT ALL LEVELS OF VOLTAGES.

under National Solar Mission. During the year 2009-10, APDISCOMs have added three 220 KV substations at a cost of Rs. 105 Crores and nine 132 kV substations at a cost of Rs. 180 Crores. With this, Andhra Pradesh has in its kitty nine 400 kV, ninety six 220 kV and 277 numbers of 132 kV substations in the state.

10 and had contributed about 40% of energy to the AP State grid. Since inception the Thermal power stations have achieved highest generation of 26566 MU. This is about 3.5 percent more than last year’s 25678 MU. With this remarkable generation the Thermal Power stations have achieved 86.2 percent PLF against all India Average of 77.5 percent. The contribution from the Hydro power stations during the year 200910 was 5532 MU. As on 6th March 2010 APGENCO’s Thermal power stations have achieved highest daily generation of 86.7 MU. Other signiﬁcant achievement of Energy department during the past one year was the capacity addition of 500 MW from Dr. Narla Tata Rao TPS stage-IV at Vijayawada. NTRTPS

is one of the ﬁrst of its kind power units commissioned from APGENCO. Similarly Unit-3 with a capacity of 39 MW of Priyadarshini Jurala HEP was commissioned on 28th May 2009. The 500 MW Kakatiya TPS stage-I at Bhoopalapalli in Warangal district was also synchronized during March 2010.

APDISCOMS (Andhra Pradesh Distribution Companies) The APDISCOMs entered into Power Purchase Agreements (PPA) with wind power developers of 20 MW capacities, out of which about 12 MW capacity projects were approved for synchronization by March.2010. Government of AP recommended 8 Solar Power projects with a total capacity of 28 MW to the Government of India for consideration and permit migration scheme announced

Similarly APDISCOMs in the state have also built and upgraded new lines to hold the adequate load capacity. Of which, 165 CKm of 400 kV, 191 CKm of 220 kV, 165 CKm of 132 kV i.e., total 521 Circuit kilometer of EHT lines were added at a cost of Rs. 266 Crores during the year 2009-10 totaling to 3174 CKm of 400 kV, 12694 CKm of 220 kV and 15105 CKm of 132 kV i.e. total 30973 CKm of EHT Lines in the state. The DISCOMS have also augmented the Transformer capacity of 2398 MVA during 2009-10.

APTRANSCO (Andhra Pradesh Transmission Corporation) APTRANSCO had invested an amount of Rs. 833 Crores for expanding and strengthening the transmission network and improved its availability to 99.80 percent during the year 2009-10. Similarly the failure rate of Power Transformer is reduced to 1.16 percent and saved an amount of Rs 3.31 Crores towards repairs. This was achieved only because of the conditional monitoring of the power transformers. During ﬂoods in October 2009,

Name of the Corporation: APTRANSCO (In Rs. Lakhs) Scheme

2009-10 RE 2010-11BE

Plan Scheme Assistance to APTRANSCO (EAP) Transmission system Modernisation & Strengthening Project in Hyderabad

75.0

12650.00

Metropolitan Area Assistance to DISCOMS (EAP) High Voltage Distribution System (HVDS)

100.00*

100.00

Loans to APTRANSCO for Krishnapatnam thermal Power project

12000.00

33000.00

Total EAP

12175.00

45750.00

Non-Plan Provided in the budget (Total MH 800)

604415.00

450000.00

* HVDS project proposals for implementation of HVDS is under active consideration of GOI for arranging sanction from JICA under ODA package. 60

2010

transmission lines were totally destroyed and plunged the affected areas of Kurnool & Mahaboobnagar districts totally in to dark. Realizing the urgency of the situation, APTRANSCO took the restoration work on War-footing and enabled power supply to Gadwal & Alampur in shortest time period of just 2 days. Under RGGVY progamme it was proposed to electrify a target of 14,309 un-electriﬁed habitations and 38.94 Lakhs rural households including 25.48 Lakhs BPL Rural Households at a cost of Rs. 830.03 Crores. Out of which we were able to electrify about 13,270 un-electriﬁed habitations and 28.38 Lakhs rural households including 22.97 Lakhs BPL Rural Households with a cost of Rs. 720.68 Crores as on March 2010. The balance work is in progress and is expected to be completed by the end of December, 2010.

allocated to Krishnapatnam TPS (2x800MW) under external aided project scheme. What were the important projects commissioned during the past one year (2009-10)? During the past one year since 2009-10, we have commissioned various power projects under AP Genco, AP Transco and Discoms. The signiﬁcant of them are Priyadarshini Jurala HEP Unit-3, Vijawada TPS stage-IV and Kakatiya TPP stage-I. All these projects contribute about 1039MW of power annually.

APGENCO Name of the project Capacity (MW) Priyadarshini Jurala HEP Unit-3

Vijayawada TPS stage-IV

500

Kakatiya TPP stage-I

500

Total

1039

Awards Completion and making successful operational of Dr.N.Tata Rao TPS project in record time has earned the Energy Department the National Meritorious Performance Award (Bronze) from the Ministry of Power for the year 2008-09. APGENCO bagged THE INDIA POWER AWARD 2009 instituted by Council of Power Utilities and KW conferences Pvt. Ltd for overall Utility performance in Thermal generation and received the Award from the Central Government. What was the Budget allocated for your department during 2009-10 and budget for 2010-11? During the year 2009-10, as a part of APGENCO’s share Rs. 20 Crore were allocated to Krishnapatnam TPS (2x800MW). APPDCL’s equity from Government of Andhra Pradesh to the project was Rs 150 Crore during the same period. For the current year 201011, an amount of Rs 330Cr has been 2010

AP Transco and DISCOMs Under Andhra Pradesh Transmission corporation two important gas based power projects have been commissioned during 2009-10. They are: 220 MW GVK Extn., Project. 464 MW Gautami Power Project. The above projects are generating power to their rated capacity using Reliance D-6 gas, since April 2009 onwards. What is the status of past projects in the state? We have successfully completed all the past projects and they are performing well on the expected lines. Most recently APGENCO has successfully commissioned Dr. N.Tata Rao TPS stage-IV (1x500MW) on 6th April and achieved 511MW at the rated capacity. From AP Transco and DISCOMs, 370 MW Vemagiri project was commissioned in 2006. it is successfully performing at the rated capacity using Reliance D-6 gas since

April 2009. Again with the efforts of APTRANSCO and the DISCOMS, the Energy Department had built and commissioned Wind Power stations with a capacity of 117 MW along with 647 MW capacities of other renewable energy projects. Elucidate on the New Projects initiated by the Energy Department to meet the growing power needs of the future? Keeping in view the future power needs, APGENCO has taken up 19 new power projects with a total capacity of 16,865 MW under the XI & XII Plans. Out of which 3 projects viz., Rayalaseema TPP stage-II & Vijayawada TPS Stage IV, Kakatiya TPP stage-I with a cumulative capacity of 1537 MW are completed. Similarly, out of 6 units of Priyadarshini Jurala HES 3 Units of 39 MW each have been commissioned. Another 9 projects of 3446 MW are under construction. The remaining 7 projects with a capacity of 11882 MW are at various stages of development.

Projects under construction (3446 MW) Thermal Projects (2910 MW) Kothagudem TPS Stage VI

500 MW

Rayalaseema TPP Stage III Unit 5

210 MW

Kakatiya TPP Stage II

600 MW

Sri Damodaram Sanjeevaiah (Krishnapatnam) Super Critical TPP

1600 MW

Hydro Projects (536 MW) Priyadarshini Jurala HEP (6x39 MW) (3units commissioned)

117 MW

Pochampadu HEP Unit 4

9 MW

Nagarjunasagar Tail Pond Dam PH (2x25 MW)

50 MW

Pulichintala HEP (4x30 MW)

120 MW

Lower Jurala HEP (6x40 MW) 61

Projects at development stage (11882 MW) Rayalaseema TPP Stage IV Unit 6 (1x600MW)

600 MW

Integrated Gasiﬁcation 182 MW Combined Cycle Plant (IGCC) JV Karimnagar gas based project (3x700 MW)

2100 MW

Sattupally TPS (1x600MW)

600 MW

What are the Future Plans of Energy Department in the state?

Vadarevu Mega 4000 MW Thermal Power Project (5x800MW) JV Pulivendula Nuclear Power Plant (2x1000MW) JV

2000 MW

Srikakulam TPP (4x600MW) JV

2400 MW

AP Transco and DISCOMs Based on the indications of the availability of Natural Gas in KG basin, all the existing IPPs are proposing to expand their projects with the total capacity of about 6500 MW. Further, other private developers are also proposing to establish gas based projects to an extent of about 5000 MW. In addition to the above, about 25000 MW is being proposed by Private developers with coal as fuel. The APDISCOMs have communicated their willingness to purchase solar power as per National Solar Mission and ﬁled a petition before the APERC for determination of tariff for rooftop and small solar power plants. Latest technologies viz., GIS substations & XLPE under ground cables are being adopted in the 220 kV and 132 kV systems due to Right of Way issues and to ensure reliability of supply. Transmission & Sub-Transmission: Transmission schemes with an estimated cost of around Rs.4453 crores have got ﬁnancial tie up with 62

banks and ﬁnancial institutions. These transmission schemes/projects are to evacuate power from new power Generating Stations, system improvement and to meet additional load. The above schemes may be completed in the coming 3 to 5 Financial Years. Out of the above, an amount of Rs. 1265 Crore has been sanctioned by JICA & PFC for strengthening of HMDA area.

APGENCO is opening a new era in Andhra Pradesh with a plan to setup 2000 MW Nuclear Power Plant in Kadapa District in a Joint Venture with Nuclear Power Corporation of India Limited, a Government of India Undertaking. APGENCO is the ﬁrst State Power Utility to establish 800 MW SuperCritical Thermal units at Krishnapatnam, in Nellore District. This project has been taken as a bench mark price for all upcoming projects in the country with similar capacities. Two units of 800 MW each are programmed to be commissioned June and December 2012 respectively.

We have taken advance action for the projects to be commissioned during XIIth plan (2012-13 to 2016-17). It is proposed to add 12,282 MW in the state by APGenco alone during the next ﬁve year plan. The works for 2440 MW out of the above capacity are already under execution. The advance planning initiated by APGenco is expected to ensure timely capacity addition thereby minimizing risk of slippage. Distribution companies have also initiated action to procure 2000 MW through Case-1 bidding route. In line with the true spirit of Electricity Act 2003, Open Access is being implemented in our State. The Open Access charges in the State pertaining to transmission and wheeling of power is one of the lowest in the country. How proactive are you in PPP? We have not taken up any projects under the PPP mode till now, however we are forming joint ventures with BHEL, NPCIL and PTC and APDISCOMS for mobilising funds for the new projects.

APGENCO is also foraying into IGCC technology by establishing 182 MW project at Vijayawada in collaboration with BHEL, which is first of its kind with such a magnitude. IGCC technology provides low emission, high efficiency with less fuel and water Consumption when compared to the conventional coal based plants. For APTRANSCO and DISCOMS, it is proposed to add 3 new units of 400 kV each, 24 numbers of 220 kV and 34 units of 132 kV substations in the State during next 4 years i.e., by 2014 with an investment of Rs. 3940 Crore. The 765 kV Evacuation for Vodarevu 5x800 MW power plant, being taken up by APGENCO, is planned. During the 11th five year plan (2007-12), the scheduled capacity addition in Andhra Pradesh will be enhanced to 4560 MW (inclusive of State, Central and Private Sectors). 2010

Telecom ANDHRA PRADESH IS SURELY FOLLOWING THE HERD IN TELECOMMUNICATIONS AND IT HAS BEEN INFLUENCED BY THE EVENTS AT A NATIONAL LEVEL. THE STATE HAS A HUGE MOBILE AND LAND LINE BASE WHILE THE INTERNET PENETRATION IS NOW GETTING BRIGHTER. RURAL ANDHRA PRADESH IS STILL TAKING THE SLOW PATH, BUT IN FEW YEARS FROM NOW, THE STATE MAY SURE SHOW ITS TELECOM STRENGTH IN TERMS OF NUMBERS THROUGH ITS SHEER SIZE.

he Indian telecommunication industry is one of the world’s fastest growing industry, with 621.28 million telephone (landlines and mobile) subscribers and 584 million mobile phone connections as of March 2010, is the second largest telecommunication network in the world and the second largest in terms of number of wireless connections in the world after China. Telecommunication activities saw rapid growth in India starting at the dawn of the 21st century and since then efforts have been made from both 64

governmental and non-governmental organizations to further improve the telecommunication infrastructure. The eventual goal is to foster the development and widespread use of modern telecommunication technologies that will serve all segments of India’s culturally diverse society, and to transform it into a country of technologically aware people. The Indian Mobile subscriber base has increased in size by a factor of more than one-hundred since 2001 when the number of subscribers in the country was approximately 5 million 2010

to 584 million in March 2010. As the fastest growing telecom industry in the world, it is projected that India will have 1.159 billion mobile subscribers by 2013. Furthermore, projections by several leading global consultancies indicate that the total number of subscribers in India will exceed the total subscriber count in China by 2013.

January, 8.20 lakh new mobile subscribers were recorded in the State. Hyderabad itself boasts of 60 lakh mobile users already.

Andhra Pradesh Telecom

mobile population in the State. The low number of mobile phones in rural areas is being attributed to irregular power supply, non-availability of coverage and less number of outlets. The distances are way too far to provide service to the rural audiences, but by the end of this year, the count will go up to 10,000 towers so that the connectivity is improved.

Andhra Pradesh, being one of the largest subscriber bases for the telecom industry, registers a whopping nine lakh new mobile phone connections every month. Landline connection in Andhra Pradesh was at Andhra Pradesh 2,477,755 as on September 2009. These numbers are expected to grow in the months to come, indicating that the telecom industry has not been affected by the global recession. During 2010

However, the growth of mobile penetration in rural areas today is 18 per cent and every month, over 1.5 lakh rural subscribers are added to the

Beaming with Conﬁdence EVER-EVOLVING TECHNOLOGY AND IT’S DYNAMICS ARE CHANGING AT A FASTER PACE THAN WHAT USERS CAN ADAPT TO. BEING A SERVICE PROVIDER IT IS VERY IMPORTANT FOR ANY COMPANY TO KEEP UP PACE WITH SUCH TECHNOLOGICAL DEVELOPMENTS FOR DELIVERING SUPERIOR SERVICE TO CUSTOMERS. AT BEAM TELECOM, THE VERY LEARNING OF TECHNOLOGY-MARKET-PRICING FORMULA HELPED THEM ACHIEVE THE DESIRED RESULTS. THEIR RESILIENCE, THE CORPORATE CULTURE AND THEIR SERVICE ATTITUDE HAS MADE WINNERS OUT OF BEAM TELECOM – AN INTERNET SERVICE PROVIDER WITH THE BELIEF THAT THE COMING WAR IN INTERNET PLAYERS IS NOT A PRICE WAR, RATHER IT IS A WAR OF VALUE ADDED SERVICES.

tarting off as a cable operator and later transforming into an Internet Service Provider, Beam Telecom has a strong customer base of 60,000 concentrated in the city of Hyderabad, and is looking to reach one million subscribers in the coming 4 to 5 years across the country. Broadband is slowly being commoditised and in the up and coming future it will not just be a price game, but will be all about value added services. “Technology has been simple till now, but with cloud computing all content including TV Channels, Movies and Videos, Games, PC software and applications, entire database and ERP system of companies etc. will all be available online for instant access, and broadband will become essential for every employee, student and home-maker. Everything will actually run seamlessly on very high speed broadband connectivity,” says Brijesh Chandwani, Managing Director - Beam Telecom Pvt Ltd.

Inspiration Drawing inspiration from his father, a businessman in his own times, Brijesh learnt the ropes of doing business as early as his childhood days. His entrepreneurial spirit is quite evident from the fact that while studying in Siva Sivani Public School, he took up small business ventures of reselling biscuits and toothbrushes; the positive results were surprising for both the reseller and him, and proved his strong business acumen. In the second year of engineering college, Brijesh set up a cable TV network and with 300 connections in the ﬁrst year itself he was making enough money to take care of his home. By the time he graduated as an enginner, he was literally an entrepreneur, thinking about how different technology was going to be in the future. Commencing a distribution business for satellite channels, Brijesh got down to really 2010

understanding hardware manufacturing for the cable TV business, and stumbled upon the concept of fibre-optic cables which encouraged him to step into broadband and strive for 10,000 connections. Brijesh shares, “We had no system in place, but I was sure about the technology shift. The rest is a story of progression; distributed profit-centre based operating style made the difference – profit centres run the day to day operations and the Corporate focuses on the Strategy and Technology.” From the impact his father made in his childhood, to the people in his life now, family has always been a great strength and support. “I look forward to spending time with my kids. My mother has always been my inspiration; she is a super woman and has dedicated all her life to children and now grandchildren. My wife Anju has been a pillar of strength, always by my side at home and office. Hats off to all the women, they are masters of multitasking,” says Brijesh.

Innovation “In the Broadband venture, we laid a standard copper network and soon understood the limitations in delivery of ‘reliable services’ and the quality of ‘Internet bandwidth’. That is when we decided to create a metro Ethernet network far ahead of its time. We were the first to introduce fibre to the curb and further extended fibre to the building. Years of experience in the Cable TV business helped us innovate and introduce fibre technology in Broadband. Today that same network carries ‘Terabits’ of data for our network,” says Brijesh. Incorporating innovative methods in conducting business, Beam Telecom implemented a distributed profit-centre based operating style – profit centres run the day to day operations and the Corporate focuses on the Strategy and Technology. To ensure the best possible human resources, Brijesh surrounds himself with people who share his passion and excitement over technology and bring in competencies that would matter in the long run. He believes that Beam Telecom has the best Management Team and the Company is ready to explore bigger opportunities. Beam Telecom employs 600 people including the ground staff, customer care, call centre, field engineers, and collection executives. Technology is going from complexity to simplicity; Brijesh believes that this is a bandwidth world and the journey has just begun.

Integration At Beam Telecom, the very learning of technologymarket-pricing formula helped them always achieve the desired results. Beam Telecom managed to get far ahead of other players in the Internet industry; while the competition comprised mostly telecom players using copper cable, they delivered internet on ﬁbre. “Today, I can see 100 Mbps internet speeds and value added services like Video, TV, Online Games and many other on-demand value 2010

Brijesh Chandwani, Managing Director - Beam Telecom Pvt Ltd. & Anju Chandwani, wife and partner

additions becoming a reality really fast,” says Brijesh. His wife and partner Anju Chandwani adds, “Our future looks bandwidth guzzling and there is no way one will ever go back to slower speeds.” Brijesh gives utmost respect to the visionary city of Hyderabad. Chandrababu Naidu during his tenure as Chief Minister, introduced in his Dream Vision 2010 paper, the thought of wired fibre network across the country facilitating millions of people to work from home. “That was really a foresight; we wanted to take the longest leap in the first instance. There are a lot of things for which we are grateful to him,” says Anju. “Adopting that very thought, we are fortunate that we were always profit making. But that does not mean we did not have all kinds of upheavals - in technology that is just not possible. We were aware since the beginning that running such a service is a 24 hours commitment. Our small size network initially allowed us to experiment with different technologies and we went for the most advanced technology available at the time; fibre optic cable is not expensive, the technology is,” elaborates Brijesh.

Transformation Beam Telecom took pains in customising everything. They employed a user friendly approach for their clients, such as portal logins providing customised information, creating a people friendly brand and not just delivering internet bandwidth. The Company’s vision and passion, coupled with the wonderful and loyal team of people has helped make the company what it is today. It will be the very same combination which will help Beam Telecom to grow to one million subscribers. With a determined and optimistic view of the future, Brijesh says, “We should sustain our passion and maintain our self belief. In a world needing better and faster broadband, we are poised to become the most preferred service provider and the ISP of choice. People recognise high quality service and with India being a word-of-mouth country, people will go for what has satisﬁed someone else.” 67

Industries R APID ECONOMIC GROWTH IS POSSIBLE ONLY WITH A STRONG INDUSTRIAL BASE.

FOR ANDHRA PRADESH, THE BASE HAS ALREADY BEEN CREATED, BUT FOR IT TO MOVE ON A PROGRESSIVE TRACK IT NEEDS A CAPITALIZING POLICY, WHICH HAS BEEN REALISED BY THE STATE GOVERNMENT RECENTLY.

ndustrially Andhra Pradesh is moving ahead with a road map of making the state a strong base for manufacturing sector. The government is planning to increase industrial investment by 10 per cent every year with an objective to reach Rs 170 billion by 2010 by promoting rapid growth of market driven, knowledge based, efďŹ cient and competitive industrial environment. The industrial sector in the state is striving to increase from 12.9 percent to 15 percent to the State GDP (GSDP) 68

and is geared to improve exports from the State by increasing the present share of exports in India from 4.39 percent to 10 percent by the end of 2010.The state government accords highest priority to the industrial sector to attain a balanced and sustainable economic growth. Apart from value addition, the sector enhances employment generation, equitable distribution of national income, mobilization of capital, entrepreneur skills and contribution to exports. 2010

In the recent past the Andhra Pradesh government had introduced new Industrial Policy to drive industrial growth by clearly spelling out various components of incentives being offered, supply of quality power, improved infrastructure facilities etc. To remove the existing barriers; and for creation of congenial and hassle-free investment climate and

also to boost investor conﬁdence, a series of proactive measures are being proposed under the new policy.

New Industrial Policy The state government announced its new industrial policy for 2010-2015 in the month of June 2010. “More incentives would be given for industries with a view to attract investments. The state had attracted investments worth Rs 3.49 lakh crore for 2007-2010. Out of this, Rs 1.10 lakh crore projects are in 2010

various stages and a project worth Rs. 37000 crore would be going on stream soon,” said Major Industries Minister Kanna Lakshminarayana. The Chief Minister Dr K Rosaiah categorically said that with the industrial policy for 2010-2015, Andhra Pradesh will become the best investment desti-

nation in the country. “The new industrial policy is the best in the country. The industrial policy offers better incentives to the investors and will deﬁnitely attract more investments in the State. The policy is the best when compared with the policies of other industrially advanced States like Gujarat, Karnataka, Maharashtra, and Tamil Nadu. The ultimate objective is to achieve manufacturing growth rate of 12 per cent to 17 per cent; create additional employment 69

to 5 lakh persons per year -- 2 lakh directly and 3 lakh indirectly; with special focus on Micro, Small and Medium Enterprises (MSMEs) and Food Processing; facilitate reduction of regional and sub-sector imbalances; leverage the existing sectoral strengths as well as the natural resources for value addition. To take maximum advantage of the Natural Gas availability, industries would be promoted along the Gas pipeline and tap the potential of ever expanding services sector,” said Dr Rosaiah.

Kanna Lakshminarayana, Major Industries Minister

KEEPING IN VIEW, THE FUTURE POWER DEMAND OF THE

STATE, THE GOVERN-

MENT HAS ALLOWED THE

APGENCO TO TAKE UP MASSIVE CAPACITY ADDITION

The new policy ensures creation of quality infrastructure in the Industrial Clusters, Industrial Estates, promotion of Manufacturing Investment Regions along National Highways to capitalize the strengths in line with GoI initiatives for value addition within the State; Encouraging industrial estates in backward revenue divisions in PPP mode and provides differential rate of incentives to MSMEs in backward revenue divisions to reduce regional imbalances. It also provides sector speciﬁc Policies/Focus to capitalize the sectoral strengths like Textiles, Cement, Pharma, Food Processing, Steel, Granite etc.; alignment of policy incentives to ensure optimum utilization of GoI Schemes; Skill Development Policy to meet the industry requirement; build brand Andhra Pradesh as a benchmark for quality; streamlining the single window

clearances system; encouraging anchor industries in thrust sectors to increase the ancillary base and comprehensive policy for revitalization of MSME sector. States like Tamil Nadu, Karnataka and Maharashtra have identiﬁed industrially backward areas and provide differential rate of incentives to these areas. In the New industrial policy, it is proposed to identify backward revenue divisions for providing differential rate of incentives to MSMEs to reduce regional imbalances. MSME Development Act 2006 of GoI changed the nomenclature of Industry as entreprise; enterprises are deﬁned as Micro, Small, Medium as per the Investment in plant and machinery of Equipment and as per the Act, any manufacturing, servicing and business activities are called as Enterprises. It has been decided to change the limits of various sections of industries. Micro Enterprise - manufacturing up to Rs.25 lakhs; service up to Rs.10 lakhs; Small Enterprises - manufacturing above Rs.25 lakhs up to Rs.5 crores, service above Rs.10 lakhs up to Rs.2 crores; Medium Enterprise - manufacturing above Rs.5 crores up to Rs.10 crores and service above Rs.2 crores up to Rs.5 crores. Under this act, any activity can be registered as Enterprise with Industries Department. However, service enterprises related to industrial activities

PROGRAMME OF ADDING

17,558 MW. OF THIS, APGENCO IS ALREADY IN THE PROCESS OF IMPLEMENTING 10 PROJECTS WITH A TOTAL INSTALLED

3946 MW. BESIDES, 10 MORE PROJ-

CAPACITY OF

ECTS WITH A CAPACITY OF

13612 MW ARE ALSO PLANNED.

2010

THE CHIEF MINISTER SAID THAT THE NEW INDUSTRIAL POLICY AIMS TO STRENGTHEN AND REVITALISE

DISTRICT INDUSTRIAL CENTRES (DICS) IN TUNE WITH THE RECOMMENDATIONS OF PRIME MINISTERS TASK FORCE COMMITTEE TO ENSURE THAT THE DICS THE

are proposed to be made eligible for incentives from Municipal Corporations; the activities proposed to be covered include Material Testing Centre, power laundries linked to the textiles industries, weigh bridges, seed grading etc., and the complete list of such activities would be worked out separately and eligible Service Enterprises related to industry will be provided investment subsidy in urban/ municipal areas linked to employment generation. Andhra Pradesh provides the maximum power tariff incentives in the country. The Chief Minister further said that the new industrial policy aims to strengthen and revitalise the District Industrial Centres (DICs) in tune with the recommendations of Prime Ministers Task force Committee to ensure that the DICs act as a genuine agency for providing support to MSMEs like information on policies, programmes, project proﬁles, Facilitation Cell for sick unit revival, Skill Development, Market support etc. Infrastructure would be created taking the advantage of Prime Ministers Task Force Committee recommendations. For easy ﬂow of credit to MSMEs, the policy proposes certain active measures to enhance the loan rendering capacity of banks through various schemes and also by lowering the interest rates on PLR. Initiatives have been proposed in the policy for providing marketing assistances to 2010

brand building, quality certiﬁcation and creating platforms for domestic and global markets. “Investments in Andhra Pradesh were increasing by 20 percent every year for the last four years. Prime Minister Manmohan Singh would soon lay the foundation stone for an electrical equipment company to be set up by BHEL and NTPC at Mannavaram in Chittoor District. Two major industries will come up with an investment of Rs 9000 crore in Kadapa and some other major projects in various districts of the state,” said Lakshminarayana.

ACT AS A GENUINE AGENCY FOR PROVIDING SUPPORT TO

MSMES LIKE INFORMATION ON POLICIES, PROGRAMMES, PROJECT PROFILES, FACILITATION CELL FOR SICK UNIT REVIVAL, SKILL DEVELOPMENT, MARKET SUPPORT ETC.

Out of 110 Special Economic Zones (SEZ) in the state, the highest number in the country, at present 73 SEZs were working and there was no problem for land acquisition as the government was acquiring lands at 15 per cent from the private parties. The remaining land was provided by the state from waste lands, assigned and government land, he added.

Industrial Strength In terms of industrial development, Andhra Pradesh has progressed rapidly. Its gross state domestic product (in PPP) was $150 billion during 2002-03. It has thus emerged as one of the most attractive investment destinations, ranking third in India. 71

IN THE INDUSTRIAL INFRASTRUCTURE FRONT, THE STATE HAS TAKEN LOT OF INITIATIVES FOR DEVELOPMENT OF INDUSTRIAL INFRASTRUCTURE FOR THE CONSISTENT GROWTH.

GOVERNMENT IN ASSOCIATION WITH APIIC HAS INITIATED A SET OF PRESTIGIOUS PROJECTS THAT INCLUDE INDUSTRIAL INFRASTRUCTURE, SOCIAL INFRASTRUCTURE AND INFRASTRUCTURE FOR THE SPECIFIC SECTORS. THE STATE OWNED CORPORATION

APIIC HAS ALREADY SET UP 272 INDUSTRIAL ESTATES AND SPECIALIZED PARKS LIKE

ICICI KNOWLEDGE PARK, SP BIO-TECH PARK, MARINE BIO-TECH PARK, AGRI BIO-TECH PARK, SPECIAL ECONOMIC ZONE, PHARMA CITY, HARDWARE PARK, HITEC CITY, LEATHER PARKS, FOOD PROCESSING PARK, AGRI EXPORT ZONES ETC.

Andhra Pradesh’s strength lies in its fully diversified industrial base, with the thrust on high-tech sectors including information technology, pharmaceuticals, biotechnology and Nano Technology. Traditional sectors such as textiles, leather, minerals, and food processing are also being further developed for high value addition. The state has an exclusive financial institution APSFC for providing finance to small industry. Apart from this 5288 commercial banks are functioning in the state in rural and urban areas. The state has a good network of specialized SSI branches for extending assistance to small and tiny industry. In the Industrial infrastructure front, the State has taken lot of initiatives for development of industrial infrastructure for the consistent growth. Government in association with APIIC has initiated a set of prestigious projects that include industrial infrastructure, social infrastructure and infrastructure for the specific sectors. The state owned corporation APIIC has already set up 272 industrial estates and specialized parks like ICICI Knowledge Park, SP Biotech Park, Marine Bio-tech Park, Agri Bio-tech Park, Special Economic Zone, Pharma City, Hardware Park, HITEC city, Leather Parks, Food Processing Park, Agri Export Zones etc.

The state has one major port at Visakhapatnam which handles largest tonnage among all Indian ports and minor ports at Kakinada, Krishnapatnam, Vadarevu and Gangavaram. The State has undertaken wide-ranging measures to nurture its industries: simplified, less restrictive regulations, labour and fiscal reforms, incentives. In line with this objective, the State has enacted a law for single-window clearances. It is the first State in the country to have a law for single-window clearances, which ensures that all clearances to investors are given within a set period. The State has been qualified as “flexible” in its approach to labour regulations and “good” for its simplification of rules and regulations. It introduced the self-certification concept, common annual returns in place of multiple returns with simplified registers, and zero inspection regimes through accredited agencies. Communal harmony, peaceful industrial relations, lower crime rate and low cost social infrastructure with safety and security make the State a right destination for any business venture. The State provides better and advanced health care facilities with presence of Super Specialty Hospitals. Hyderabad, the capital of Andhra Pradesh has been recognized as the Health Capital of the country.

2010

The Government has helped to establish, in collaboration with some of the well-known institutions in the world, a number of centers of excellence for training and research: the Indian School of Business, the Indian Institute of Information Technology, the National Academy for Construction and the Knowledge Park are part of this knowledge revolution. Every year, 3,50, 000 skilled graduates pass out from universities, and 81,000 engineering graduates from engineering schools, another 10, 078 management students graduate from management institutions every year. About 23% of India’s software professionals within and outside the country are from Andhra Pradesh. To provide suitable atmosphere for setting up asset management, venture capital companies, insurance companies, commercial banks, Financial District is being set-up in Hyderabad. With the establishment of Insurance Regulatory and Development Authority head quarters in Hyderabad, the State has been recognized as Insurance Capital. It is the endeavor of the Government of Andhra Pradesh to create a conducive environment for industrial growth by providing necessary support and services. The Prime minister is also scheduled to lay the foundation stone for the NTPC-BHEL joint venture Power Plant Manufacturing Project at Mannavaram village, near Srikalahasthi, Tirupati in July 2010. Chief Minister Dr Rosaiah said, “NTPC-BHEL power equipment project at Mannavaram is a proud achievement of the Government of Andhra Pradesh, particularly the then Chief Minister Dr Y S Rajasekhara Reddy who strived hard to get the project established in the State.” Dr Rosaiah said the Joint venture company would establish a Greenﬁeld industry for manufacturing Power Plant equipments with a total investment of Rs.6,000 crores and proposed to provide direct employment to 6,000 persons and indirect employment to 25,000-30,000 people. The NTPC-BHEL Joint Venture company was incorporated on 28th April 2008 to carry out Engineering, Procurement, Erection, Commissioning etc for power 2010

plants as well as infrastructure projects. The ultimate objective of the Government is to make Andhra Pradesh as the Number One industrialised State surpassing Gujarat, Maharashtra, Tamil Nadu, Karnataka and other developed States in the country. The latest industrial policy approved by the cabinet envisages to achieve a manufacturing growth rate of 17 per cent; create additional employment to over 5 lakh persons per year -- 2 lakh directly and 3 lakh indirectly; with special focus on Micro, Small and Medium Enterprises (MSMEs) and Food Processing; facilitate reduction of regional and sub-sector imbalances; leverage the existing sectoral strengths as well as the natural resources for value addition. The CM said, “That is the very reason the State Government decided to establish the NTPC-BHEL Joint Venture Project in an industrially backward area in Chittoor District.”

Recent developments in Industrial sector in Andhra Pradesh During the past one year the Industrial Department in the state had achieved remarkable progress. The government had taken up a host of programmes to usher the industrial growth in the state. The focus had been broadly on SEZs, NTPC&BHEL, PCPIR, NID and Employment Generation. Recently, the state government had issued orders permitting APIIC to invest in the equity up to a maximum of 5 per cent share in Bhagyanagar Gas Ltd., a joint venture of M/s GAIL and M/s HPCL (Gas Authority of India Limited and Hindustan Petroleum Corporation Limited). The presence of the State undertaking as equity holder in the Bhagyanagar Gas Ltd., will facilitate not only the required clearances from different agencies but can also expedite the whole process of City Gas distribution which would eventually beneﬁt the public at large. BGL has already taken up the City Gas Distribution in 3 major cities namely Hyderabad, Vijayawada and Kakinada. The main operations of the company include the distribution and marketing of environment friendly fuels like Natu-

Sam Bob, Principal Secretary, Industries, Govt. of Andhra Pradesh.

NTPC-BHEL POWER EQUIPMENT PROJECT AT

MANNAVARAM IS A PROUD ACHIEVEMENT OF THE

GOVERNMENT OF ANDHRA PRADESH, PARTICULARLY THE THEN CHIEF MINISTER DR Y S RAJASEKHARA REDDY WHO STRIVED HARD TO GET THE PROJECT ESTABLISHED IN THE STATE. DR ROSAIAH SAID THE JOINT VENTURE COMPANY WOULD

GREENFIELD INDUSTRY FOR MANUFACTURING POWER PLANT ESTABLISH A

EQUIPMENTS WITH A TOTAL INVESTMENT OF

RS.6,000

CRORES AND PROPOSED TO PROVIDE DIRECT EMPLOYMENT TO

6,000 PERSONS

AND INDIRECT EMPLOYMENT

25,000-30,000 PEOPLE. TO

ral Gas, Piped Gas and Auto liqueﬁed Petroleum Gas for residential, industrial, commercial and automotive sectors.

A SPECIAL PURPOSE VEHICLE (SPV) CALLED “ANDHRA PRADESH GAS INFRASTRUCTURE CORPORATION PRIVATE LIMITED” WILL BE CREATED WITH AN INITIAL EQUITY BASE OF

RS 100

CRORE WITH A RATIO OF

51:49 SHARE BETWEEN THE APIIC AND THE APGENCO RESPECTIVELY. ALONG WITH FACILITATING INFRASTRUCTURE SUPPORT FOR EXPLORATION AND PRODUC-

SPV SHALL ALSO COORDINATE WITH DIFFERTION THE

ENT AGENCIES TO MAXIMIZE THE EMPLOYMENT POTENTIAL IN SERVICE SECTOR, RELEVANT TO PETROLEUM AND NATURAL GAS. 74

Under Phase-I, BGL had proposed to invest Rs 3166 crore on the City Gas Distribution network for entire Hyderabad City which includes GHMC and surrounding Sub-urban areas. Hakeempet, Medchal and Cantonment deposits will be covered under CND roller plan of the initial phase. CGS-cum MS commissioning will be done shortly and PNG will start off along with CGS commissioning. With this, the government is planning to give 4000 domestic connections and develop 5 online stations, 10 DRS, 1 DRS APSRTC and 2 online APSRTC stations in the state. An agreement has also been signed by BGL with APSRTC for providing CNG facilities to all 23 depots in the state. “With the commissioning of first online CNG, we are working to provide approximately 1000 connections. Similarly, the commissioning of CNG station in Kakinada this year in January had cleared the way for the domestic gas flow. With the commissioning of first CNG station in Kakinada in January 2010 the domestic gas flow is expected shortly,” said Sam Bob, Principal Secretary, Industries, Government of Andhra Pradesh.

In the next 5 years, the government is planning to provide around 2.66 lakh domestic connections and 50 CNG stations for the public transport. The government is also planning to develop 30 DRS stations with a capital expenditure of Rs 723 crore. “With an infrastructure of 645 kms pipeline, we are planning to provide 2.25 lakh domestic connections in Vijayawada in the coming years,” said Bob. To catalyze the industrialization process, the state Government is planning to create a state owned exploration and Production Company (E&P) to enter in to exploration and production business and ensure a sustainable development with an uninterrupted Hydrocarbon resources availability in the state. A Special Purpose Vehicle (SPV) called “Andhra Pradesh Gas Infrastructure Corporation Private Limited” will be created with an initial equity base of Rs 100 crore with a ratio of 51:49 share between the APIIC and the APGENCO respectively. Along with facilitating infrastructure support for exploration and production the SPV shall also coordinate with different agencies to maximize the employment potential in service sector, relevant to petroleum and natural gas. In addition to the above, this SPV may 2010

also collaborate with Bhagyanagar Gas Limited (BGL) to explore the possibilities of involvement in city gas distribution network, so as to maximize the utilization of natural gas within Andhra Pradesh.

SEZ promotion The state government is committed to provide world class infrastructural facilities to make Andhra Pradesh a manufacturing hub for national and international companies. Special Economic Zones (SEZs) are being promoted in different regions to generate employment in export oriented manufacturing sector. Government of India has given approvals to 103 SEZs in Andhra Pradesh. Out of these, 73 SEZs are notiﬁed, 40 SEZs have already become operational and 54,776 jobs are already created. As a part of Government’s initiative of developing IT in tier-2 cities, APIIC is developing IT / ITES SEZs at Visakhapatnam, Vijayawada, Kakinada, Tirupati, Kadapa, Warangal and also Ranga Reddy districts. During 2009-10, 48 large Industries with an investment of Rs.8,399 crores have been set up in the State, creating employment for 8,116 persons. In addition to this, proposals for 353 new large Industries have been received with an investment of Rs.81,092 crores which are expected to give employment for 1,11,328 persons. The Government of India has accorded approval for development of Petroleum Chemical and Petrochemical Investment Region (AP PCPIR) in Visakhapatnam-Kakinada Region spanning an extent of 603.58 sq. km. A Special Development Authority by name Visakhapatnam–Kakinada Petroleum, Chemical and Petrochemical Investment Region Special Development Authority (VKPCPIRSDA) has been constituted for planned growth of the area. The Krishna-Godavari Basin, located on the eastern coast of Andhra Pradesh, is one of the most promising areas for 2010

exploration and production of oil and natural gas. It is projected to be one of the largest oil / gas ﬁelds in the world. APGIC joined the ONGC led consortium considering their extensive presence in the K.G. basin area and past experience in the ﬁeld. This consortium has participated in the bidding of all 5 blocks (1-deep water block, 4-shallow water block) and won 4-blocks i.e. 1-deep water block, 3-shallow water blocks in KG Basin in NELP-VIII round of bidding.

BIAC Chief Minister Dr. Rosaiah inaugurated the Brandix India Apparel City (BIAC), the state-of-the-art apparel supply chain city at Achyutapuram, 50 kms from Visakhapatnam. BIAC, the unique apparel supply chain city managed by Brandix India Limited is developed with world-class facilities on 1,000 acres on the concept of ‘Fibreto-store’ concept. It has 749 acres of processing zone and 251 acres of nonprocessing zone with in-built water and effluent treatment facilities. According to APIIC officials BIAC would employ over 60,000 people and will consist 20 apparel factories, two fabric mills, eight accessories factories, a logistics warehouse and a finishing plant when it becomes fully operational.

THE GOVERNMENT OF INDIA HAS ACCORDED APPROVAL FOR DEVELOP-

PETROLEUM CHEMICAL AND PETROCHEMICAL INVESTMENT REGION (AP PCPIR) IN VISAKHAPATNAM-K AKINADA REGION SPANNING AN EXTENT OF 603.58 SQ. KM. A SPECIAL DEVELOPMENT AUTHORITY BY NAME VISAKHAPATNAM–K AKINADA PETROLEUM, CHEMICAL AND PETROCHEMICAL INVESTMENT REGION SPECIAL DEVELOPMENT AUTHORITY (VKPCPIRSDA) HAS MENT OF

BEEN CONSTITUTED FOR PLANNED GROWTH OF THE AREA.

The BIAC will attract an investment of One Billion dollars (Rs.4,500 crore) to Visakhapatnam and promote export of apparel worth more than 1.4 billion dollars a year. Several world class Fabric companies like Ocean India(US), Fountain Set Holdings of Hong Kong, Pioneer Elastic India, Quantum Clothing India (UK), DEB Fashion India and Seeds Intimate Apparel India have come forward to set up joint ventures in the BIAC. The Chief Minister said several new proposals have been received for setting up coke plant, glass factory, steel plant, Paints Industry and Ferro Alloys units in the State. 75

Powering Dynamism VOITH TURBO PRIVATE LIMITED, HYDERABAD IS A MEMBER OF THE WORLDWIDE VOITH GROUP OF COMPANIES WITH HEADQUARTERS IN HEIDENHEIM IN GERMANY. THE COMPANY SET UP ITS MANUFACTURING FACILITY IN HYDERABAD IN 1987 AND STARTED PRODUCTION IN 1990. WITH AN EXCELLENT ORDER BOOK AND NEW PRODUCTS UNDER LOCALISATION PROGRAMME, FUTURE OF VOITH TURBO, INDIA LOOKS VERY PROMISING. View of workshop in Nacharam

oith Turbo achieved signiﬁcant success in the Indian market with hydrodynamic couplings for drive of boiler feed water pumps and ID fans supplied from both the manufacturing units at Crailsheim in Germany and Hyderabad in India. Voith Turbo India, a wholly owned subsidiary of Voith Turbo, Germany has been progressively growing with its manufacturing programme, mainly for hydrodynamic couplings, extensively used in thermal power plants. Starting with couplings for 110 / 210 MW plants, Voith India can now produce couplings for 600 MW plants as well.

The main products of Voith Turbo, Hyderabad are hydrodynamic couplings, which ﬁnd wide application in drive system of material handling equipment e.g. boiler feed water pumps, fans, crushers, mills, conveyors etc. The ﬁrst Voith coupling was supplied to India in 1968 from Voith Germany and was installed in a power plant in Kothagudam, Andhra Pradesh. This coupling is still working satisfactorily after approx. 40 years of running! BHEL have since set up many power plants in India using Voith couplings.

“A part of the Voith group, which is renowned worldwide for its high quality products and services, Voith Turbo India, located at Nacharam Industrial Estate started production in 1990. Voith has four group divisions, viz., Voith Turbo, Voith Paper, Voith Hydro and Voith Industrial Services. Voith Paper and Voith Hydro have their presence in India, at Kolkata / Faridabad and Noida / Vadodara respectively. Voith Industrial Services has also set up ofﬁce for Indian operations at Pune and are looking for business opportunities” said Debashis Basu, Managing Director of Voith Turbo Private Limited.

“When Voith Turbo sold couplings to India from its German unit, the custom duty on import was very high and after sales service was also to be rendered from Germany, which made it all the more difﬁcult. This led to decision of localising the product. In 1987, the Indian unit of the company was formed. After setting up the factory, we started to manufacture a small segment out of the range of couplings and the rest were being imported from Germany. However since then we have extended our production programme substantially and BHEL has been very encouraging and supportive in our efforts” said Basu.

2010

Investments in power sector have been considerable in the past few years. It has been realised that India cannot achieve its planned GDP growth without corresponding growth in infrastructure facilities & power generation capacity. There is an ambitious plan during the current 5 year plan as well as during the next ones, where big investments in power sector are being envisaged. Out of this, a substantial investment will be made to build coal fired power stations because of India’s largely available coal reserves. “Our products are used extensively in coal fired power stations. Nuclear and combined cycle power plants also have potential for use of our couplings and we have a very good share of business in these fields as well. I believe that next 10 years are going to be very active period in terms of setting up new power projects. So with considerable share of business in this field, we are very hopeful to grow along with the power sector growth in India,” said Basu. As regards perception of Voith Turbo Germany regarding their Indian unit, Basu has strong reasons to be proud of. He says, “Voith, Germany considers India strategically a very important market. It gives us a very good feeling that we are the only manufacturing company for Voith hydrodynamic couplings outside Germany. We have implemented expansion programmes at Hyderabad to cope with increased demand of domestic market and when we created additional capacities, Voith Turbo, Germany also used it increasingly for global market. What we produce here is identical to their design & quality standards which is very important since according to philosophy of Voith; there exists only one VOITH quality, irrespective of whichever part of the world the product might have been produced in”. After meeting the domestic requirements, Voith Turbo, India also sells couplings to its parent company, who in turn sell those worldwide. At times the company also sells directly, especially to the Chinese companies who have started to set up power plants in India. The recent business years have been exceptionally good for Voith Turbo, India as the market demand grew very fast and Voith retained its high level of market share. The company approximately doubled its sales over the last four years and the sales of Voith Turbo, India this year will be over 1.2 billion rupees with clear growth prospects in coming years as well. Nearly three hundred people are employed in the company at present in total. The company is now looking to diversify business in India and finds the products of market divisions Road & Rail of Voith Turbo to be the next big growth drivers. “For the business in Road and Rail segments, we have products 2010

Debashis Basu, Managing Director, Voith Turbo (India)

which are applicable for the Indian market and proven in performance as well. We have already set up assembly and test facilities for producing couplers for application in metro rail projects. We are presently executing an order for export job and will soon start producing for Indian projects as well” said Basu. “We are also in the process of setting up facilities for localising hydro dynamic brakes (also called retarders) for application in buses. The first prototype is expected early next year. Tata Motors, Ashok Leyland and some other vehicle manufacturers are target customers. Retarders, as an auxiliary brake, offers several advantages including safety while driving in hilly terrains and increase in life of brake lining,” he added. The last but not the least worth mentioning is the operational excellence programme executed at Voith Turbo, India. Concepts on manufacturing practices have undergone a change over the years and Voith Turbo, India tried to adopt as much as possible by bringing in considerable changes in our systems, practices, plant layouts as well as mindset of people. This has resulted in improvement of productivity, lead time and efficiency. The premises has also been made cleaner & greener. Voith Turbo, India is now considered to be one of the finest production sites within the Voith group worldwide. “Incessant work by a dedicated team of colleagues made this possible. We are extremely satisfied to have been able to achieve this success, which has been acknowledged and appreciated by our customers as well as the Management team of Voith, Germany”, said Basu. “A close watch is being kept, aided with periodical audit, to ensure that the newly established practices & systems are followed all the time. Continuous improvement projects with active participation of our colleagues from workshop have also been extremely successful” he added.

Health ANDHRA PRADESH HAS BECOME MORE HEALTH CONSCIOUS AS IT IS SEEN FROM THE PRIORITY THE SECTOR IS BEING GIVEN OVER THE PAST FEW YEARS. DURING THE YEAR 2010-11 THE GOVERNMENT HAD PROPOSED A BUDGET OF

RS. 4295

CRORES, WHILE FOR ‘AROGYASRI’ RS. 925 CRORES ARE ALLOCATED EVERY YEAR FOR TREATING DIFFERENT AILMENTS OF THE POOR LIVING UNDER

BPL.

eeping in view the need to provide qualitative health services to the people of the State and to achieve rapid growth in health services delivery system, the budgetary allocation has been substantially enhanced for the health sector during the past few years from now. Arogyasri Scheme has been acclaimed at national and international levels. Cashless treatment is being provided for major ailments in network hospitals for all white card holders in the State. 78

So far, over 5 lakh surgeries have been performed under Arogyasri. Efforts are being made for continuously improving the share of Government hospitals in Arogyasri scheme. A budget provision of Rs.925 crores has been made for the fiscal. The Government is also implementing Emergency Transport Service (108) with 752 ambulances and Fixed Day Health Service (104) with 475 mobile health vans for the benefit of the needy. This will also benefit those who are living in the remote and interior areas of the State. 2010

Other initiatives taken up and in progress for expanding medical services include construction of Super specialty and Trauma blocks at NIMS, Hyderabad, NIMS University Campus at Bibinagar, Visakhapatnam Institute of Medical Sciences at Visakhapatnam, Millennium Block at Guntur General Hospital with participation of the alumni of the

Guntur Medical College and upgradation of Community Health Centres. The Budget allocation for Medical and Health department for 2010-11 is proposed at Rs.4295 crores. The latest poverty headcount ratio of the state stands at 16 per cent, compared to 23 per cent for India. Andhra Pradesh was the ﬁrst Indian state to receive a multi-sector Bank operation – the Andhra Pradesh Economic Restructuring Program for US$ 550 million in 1997 – aimed at helping the 2010

state accelerate policy and institutional reforms across a wide range of sectors under a common ﬁscal framework. Within AP there are regional, social and gender disparities. Health outcomes are worst among Scheduled Castes (16 per cent of population) and Scheduled Tribes (7 per cent of population), and

for women, especially those living in under-served areas in North tribal and South drought prone districts. Effective delivery of quality basic health services is hampered by demand and supply side issues, including poor health infrastructure and stafﬁng. Agencies like World Bank and DFID are supporting the reform process in the State. The Bank supported the AP Economic Restructuring Project which 79

AROGYASRI SCHEME HAS BEEN ACCLAIMED AT NATIONAL AND INTERNATIONAL LEVELS.

CASHLESS

TREATMENT IS BEING PROVIDED FOR MAJOR AILMENTS IN NETWORK HOSPITALS FOR ALL WHITE CARD HOLD-

STATE. SO FAR, OVER 5 LAKH ERS IN THE

SURGERIES HAVE BEEN PERFORMED UNDER

AROGYASRI. EFFORTS ARE BEING MADE FOR CONTINUOUSLY IMPROVING THE SHARE

GOVERNMENT HOSPITALS IN AROGYASRI SCHEME. A OF

included improvement of primary health care as one of the component. The priority reforms focus on improved access to quality and responsive health services, strengthened governance and management in health sector, improved institutional mechanisms for community participation and systems for accountability; and strengthened financial management systems. The government of Andhra Pradesh [GoAP 1999] Vision 2020 document identifies a seven-point set of priorities for health sector reform: providing universal access to primary healthcare; encouraging private investment in tertiary healthcare; focusing on specific programmes to promote family planning; focusing on improving health levels in disadvantaged groups and backward regions; ensuring a strong prevention focus; enhancing the performance of the public health system; and formulating a state information education and communication (IEC) programme to broadcast information on preventive healthcare. The Government of Andhra Pradesh is embarking on major health sector reforms to improve health care delivery in the State. D.F.I.D. has expressed its willingness to support these initiatives with a grant of 100 Million pounds during five years (2006-2011). The reform initiative will include mea-

sures to improve the effectiveness and accountability of public health services, measures to focus on community centric preventive healthcare system and enhance access to quality healthcare for the poorer sections of the population. DFID had provided up to £40 million health sector budget support to the DoHMFW, GoAP, during 3 years 2007 – 2010. The Health sector in the state has built synergy with National Rural Health Mission (NRHM) which is a health sector reform program of the central government for decentralisation, pro-poor focus & strengthening service delivery. The health sector support provided over three years (2007-08 – 200910) aims at increased use of quality health services, especially by the poorest people and in under served areas.

Other initiatives of Health sector are: Establishment of Andhra Pradesh Vaidya Vidhana Parishad; Strengthening of referral institutions and ﬁxing of service norms; Improvement in drug supplies; Formation of Andhra Pradesh Health, Medical & Housing Infrastructure Development Corporation (APHM&HIDC); Strengthening of PHCs as 24-hour MCH centers; Establishment of Comprehensive Obstetric & Neonatal Care centers.

BUDGET PROVISION OF

RS.925 CRORES HAS BEEN MADE FOR THE FISCAL.

2010

Reorganization and restructuring of existing government health care system Andhra Pradesh has created the Andhra Pradesh Vaidya Vidhana Parishad (APVVP) by enacting an Act in the Legislative Assembly in 1986(8). This was done with the objective to lay greater emphasis on development of both preventive as well as curative health care and to strengthen necessary linkages at appropriate levels to ensure comprehensive medical and health care services. APVVP has undertaken World Bank assisted Andhra Pradesh First Referral Health Systems Project (APFRHSP) in 1994 for a period of seven years. This has been one of the major projects undertaken by APVVP. The objectives of the project included improvement of efficiency in the allocation and use of health resources through policy and institutional developments and enhanced performance of health system by improving the quality, effectiveness and coverage of health services at the first referral level It also aims at strengthening of referral institutions and fixing of service norms. Basic service norms for various categories of hospitals under the administrative control of APVVP have been fixed thereby creating a hierarchy of hospitals according to services and facilities. This system of service norms and referral linkages had been developed with a view to optimise utilization of resources, avoid duplication and wastage of resources, regulate patient flow and reduce cost of treatment by reduction of patient burden at tertiary hospitals. The district hospital has been prescribed to provide services in eleven specialties for which 9 civil surgeon specialists, 18-20 civil assistant surgeons, 54-84 paramedical staff and other supporting staff have been posted.

Improvement in drug supplies Centralized drug procurement system under which the institution has been allotted drugs worth a particular amount based on bed strength (Rs 2000 per bed per quarter); an emergency provi2010

sion for drugs (Rs 100 per bed per month) has been made to every institution from where emergency procurement of drugs is made; drugs which are in short supply and for which regular rate contract suppliers are not available have been stocked at the ofﬁce of District Coordinators of Health Service. Under the APFRHSP, construction and repair of 160 hospitals including 81 CHCs, 58 area hospitals and 21 district hospitals had been undertaken. Formation of Andhra Pradesh Health, Medical & Housing Infrastructure Development Corporation (APHM&HIDC)a separate corporation has been set up in 1987 exclusively for developing housing and other infrastructure for medical and paramedical staff and constructing sub centers, PHCs, hospitals, dispensaries, clinics and other health care centers. One of the major projects undertaken by APHM&HIDC has been the World Bank assisted India Population ProjectVIII launched for improving the medical care facilities in urban slums in 74 municipalities.

THE GOVERNMENT OF ANDHRA PRADESH IS EMBARKING ON MAJOR HEALTH SECTOR REFORMS TO IMPROVE HEALTH CARE DELIVERY IN THE STATE.

D.F.I.D.

HAS EXPRESSED ITS WILLINGNESS TO SUPPORT THESE INITIATIVES WITH A GRANT OF

100 MILLION

POUNDS DURING FIVE

(20062011).

YEARS

Strengthening of PHCs as 24-hour MCH centers In a move to make available maternal and child health care at all times, 470 PHCs in backward districts have been designated as round the clock Mother and Child Health Center (earlier called women health centers). One staff nurse, one ANM and three 81

DFID HAD PROVIDED UP TO £40 MILLION HEALTH SECTOR BUDGET SUPPORT TO THE

DOHMFW, GOAP, DURING 3 YEARS 2007 – 2010. THE HEALTH SECTOR IN THE STATE HAS BUILT SYNERGY WITH

NATIONAL RURAL HEALTH MISSION (NRHM) WHICH IS A HEALTH SECTOR REFORM PROGRAM OF THE CENTRAL GOVERNMENT FOR DECENTRALISATION, PRO-POOR FOCUS, STRENGTHENING SERVICE DELIVERY.

support staff have been appointed in each center on contractual basis. Staff nurses have been trained to conduct normal deliveries and refer emergency cases. Additional facilities like telephone and vehicle have been provided to the PHCs in order to assist communication and transport for referral of emergency cases. Provision has been made to conduct fortnightly specialist clinics of gynaecology and paediatrics in these centers to detect high risk pregnancies and neonates for referral to FRUs.

Establishment of Comprehensive Obstetric & Neonatal Care (CEmONC) centres The State Government has decided to establish 108, CEmONC centers spread across every district so that pregnant mothers requiring emergency care do not have to travel more than 40-50 kms to receive specialist care. Training of MBBS doctors in anesthesia, neonatal care and blood transfusion is also planned to support this scheme.

The Government of Andhra Pradesh has started an innovative scheme in order to enable pregnant women in rural areas to avail antenatal check ups at the nearest PHC/area hospital or FRU. It has tied up with the State Road and Transport Corporation to issue free transportation bus tickets pass to be utilised for three visits. The ANM issues the bus passes to the pregnant women on her house visits.

Public Private Partnership Management of Urban Health Centers by NGOs Under the World Bank assisted Andhra Pradesh Urban Slum Health Care Project (APUSHCP): 192 urban health centers (UHCs) have been established in 74 municipal towns in 21 districts covering 1848 slums. After withdrawal of support by the World Bank, the project has been funded by the state government since 2002 to till date.

Changes in health system organization, delivery and Management Formation of Hospital Advisory Committee/ Hospital Development Societies for all PHCs and FRUs/ teaching hospitals: Hospital Development Societies have been constituted in all tertiary hospitals under the control of Directorate of Medical Education and after implementing NRHM, rogi kalyan samithi (RKS) at every PHC were formed to ensure the adequate participation of local institution, with an aim to improve effective and efficient services with allowed flexible financial powers. These societies are examples for decentralization . Activities of the society include maintenance of the hospital (including sanitation & water supply, electricity, building & civil works and equipment), purchase of drugs & medicine supplies and equipment. The government has set norms and limits for undertaking these works which are to be adhered to by the Society.

Provision of free travel bus passes to pregnant women for antenatal check ups

THE STATE GOVERNMENT HAS TIED UP WITH GVK TO PROVIDE EMERGENCY TRANSPORTATION WHICH PROVED TO BE A SUCCESSFUL PROGRAMME AND MANY STATES ARE FOLLOWING THE SAME.

THE OBJECTIVE OF 108 AMBULANCES IS TO SAVE PEOPLE IN LIFE EMERGENCY

. ONE AMBULANCE IS GIVEN FOR THREE MANDALS. EACH AMBULANCE, FITTED WITH EQUIPMENT WORTH RS.17 LAKHS, RENDERS ITS SERVICES IN LIFE EMERGENCIES, ROAD AND FIRE ACCIDENTS. 2010

108 emergency services The State government has tied up with GVK (earlier satyam computers) to provide emergency transportation which proved to be successful programme and many states are following the same like Gujarat. The objective of 108 Ambulances is to save people in life emergency . One ambulance is given for three mandals. Each ambulance, ﬁtted with equipment worth Rs.17 lakhs, renders its services in life emergencies, road and ﬁre accidents.

Rajiv Arogyasree The innovative Government insurance scheme to serve people of poor from serious ailments is now attracting the nation as this programme succeeded. This scheme provides ﬁnancial support to families of BPL upto 2 lakhs per annum for treating serious ailments. It was proposed to cover the entire state by 2nd October 2008 with the government paying the insurance premium for all the beneﬁciaries. An amount of Rs. 450 crores was provided to implement the scheme during 2008-09.

Sukhibhava Scheme Under the Scheme, a cash assistance of Rs.300 (Rs 200 towards transportation charges and Rs 100 for food and incidental expenses) is paid to pregnant women belonging to below poverty line families who come to government hospitals/APVVP hospitals/ teaching hospitals/PHCs/CHCs for delivery services. This assistance is payable only to those women with no living children or with one living child.

Involving community in health service delivery and Provision One of the key components of the National Rural Health Mission is to provide every village in the country with a trained female community health activist – ‘ASHA’ or Accredited Social Health Activist. Selected from the village itself and accountable to it, the ASHA will be trained to work as an interface between the community and the public health system. 2010

Key components of ASHA A woman, usually a daughter-in-law of a house who has studied upto 7th class and preferably from SC/ST community has been selected as WHV by the Gram Panchayat Health Committee. The selected WHV has been given one month training in health care aspects of pregnancy, antenatal, delivery, post natal and new born care, immunization, diarrhoea, acute respiratory infections, ﬁrst-aid and treatment of minor ailments. The health sector reforms are only a part of drastic reforms in other major sectors undertaken as a part of Andhra Pradesh Economic Restructuring Project (APERP) and the overall impact on the health conditions of people and their access to medical care depend more on the changes proposed outside the health sector. For instance, while exempting the white ration card holders i.e. the poor from the user charges in the government hospitals, it proposes to drastically reduce the number of white card holders to half in the state. The net affect would be to reduce the percent of population eligible for free treatment. On the other hand the success of 108 EMRI services and overwhelming response from Rajiv Arogya sree scheme are the examples for HSR success.

THE GOVERNMENT OF ANDHRA PRADESH HAS STARTED AN INNOVATIVE SCHEME IN ORDER TO ENABLE PREGNANT WOMEN IN RURAL AREAS TO AVAIL ANTENATAL CHECK UPS AT THE

PHC/AREA HOSPITAL OR FRU. IT HAS TIED UP WITH THE STATE ROAD AND TRANSPORT CORPONEAREST

RATION TO ISSUE FREE TRANSPORTATION BUS TICKETS PASS TO BE UTILISED FOR THREE VISITS.

Education THE EDUCATION DEPARTMENT IN THE STATE IS WORKING TOWARDS ACHIEVING TOTAL LITERACY IN THE NEXT TEN YEARS PERIOD AND AS A PART OF THIS COMMITMENT, MANY PROGRAMMES ARE BEING TAKEN UP.

ONE SUCH MID-

INITIATIVE IS THE

DAY MEAL SCHEME FOR STUDENTS UP TO TENTH. APART FROM THIS, MODEL SCHOOLS ARE BEING ESTABLISHED TO ACHIEVE QUALITATIVE CHANGE IN EDUCATION FOR WHICH THE STATE GOVERNMENT HAD ALLOCATED

RS. 2830 CRORES FOR HIGHER EDUCATION AND RS. 9824 CRORES FOR SCHOOL EDUCATION FOR THE YEAR 20010-11.

he Higher education sector in Andhra Pradesh had seen a new dawn in the state during the past one decade. Realizing the importance of education, the government of Andhra Pradesh has been encouraging the education sector in all possible ways it can.

to see that the academic year of the students was not wasted. Not only this, the department has simultaneously been carrying forward the usual work to develop the Undergraduate and Postgraduate education from Quality and infrastructure point of view.

The role played by the higher education through the hard times of the past year really stands vital, because it was continuously monitoring the situation and accordingly taking lot of measures

The Higher education department regularly conducts inspection of Regional OfďŹ ces and Degree Colleges and also initiates the release of grants (GIA) to Private Aided Colleges in the State. 2010

Its role is also vital in the regulation and sanction of various types of scholarships. Number of courses is also being restructured by introducing need based and market oriented courses. Imparting higher education through Television is well received by the students. The efforts in producing and

telecasting quality lessons through MANA TV channel (AP Govt. Education channel) is commendable and is praised all over the student community in the state. The work of higher education department is also commendable for it had put in its full efforts continuously to provide job opportunities/placements to students studying in Government Colleges through Jawahar Knowledge Centres (JKCs). To improve teaching quality the 2010

higher educational department in the state is also conducting training programmes for Principals/Lecturers/Nonteaching staff of Government Colleges towards improving and refreshing their knowledge and skills. For improving the communication skills, team spirit and teaching abilities of the lecturers the department has also conducted English

Lecturer Retraining programme every year. During the past one year, the government had implemented all the educational programmes which were already planned the previous year. The government had encouraged setting up of more number of Technical and Engineering institutes in the state. In consonance with the suggestions of the Knowledge commission, the Higher 85

IN CONSONANCE WITH THE SUGGESTIONS

KNOWLEDGE COMMISSION, THE HIGHER EDUCAOF THE

TION DEPARTMENT IS TAKING ALL NECESSARY MEASURE TO SEE THAT AS MANY NEW

DEGREE AND

PG COLLEGES ARE ESTABLISHED IN THE RURAL PARTS OF THE STATE AND ENCOURAGE MORE STUDENTS TO GET ENROLLED FOR HIGHER EDUCATION.

AS A PART OF THIS EFFORT THE HIGHER EDUCATION DEPARTMENT HAD INITIATED

‘FEE REIMBURSEMENT SCHEME’ FOR THE STUDENTS.

education department is taking all necessary measure to see that as many new Degree and PG colleges are established in the rural parts of the state and encourage more students to get enrolled for higher education. As a part of this effort the higher education department had initiated ‘Fee reimbursement scheme’ for the students. Similarly the department had constituted 10 new universities in all the three regions of Telangana, Rayalaseema and Andhra. In the recent past more students were going to foreign countries to pursue Higher education. Keeping this in mind the government is planning to provide foreign Degrees here in the State and it is working to collaborate with foreign Universities to set up their bases here in Hyderabad. Similar efforts by the higher education department were carried out earlier which earned a new IIT in Hyderabad. Similarly during the past two years, establishment of new institutes like BITS Pilani, RGUKT, and IIITs were some of the signiﬁcant achievements of the Department. “In the college education sector we have taken many initiatives to enhance the infrastructure facilities. During the year 2009-10, 65 new Degree colleges and 49 new polytechnic colleges were built. Understanding that merely setting up institutions is not enough we are also working towards improving the quality of education by improving infrastructure and ﬁlling up all the vacant teaching positions in the universities and colleges of the state”, said C.S Biswal, Principal Secretary, Department of Higher Education, Government of Andhra Pradesh. “Previously, we had introduced Jawahar Knowledge Centers in almost all the degree colleges in the state. Last year we had extended this programme to Engineering colleges. Earlier our focus was only to train the students to generate awareness in software and computer languages. Now, we have slightly moved aside to even train the students with a job oriented perspective. This year we are planning to train 20,000 students through JKC with job oriented courses for Central Government jobs in

Banking and Railways” he added.

Initiatives of 2009-10 Keeping in view the recent developments in Higher Education, the Department had introduced need based job oriented new courses like Biotechnology, Industrial Chemistry, Microbiology, Computer Science, Communicative English, Tourism, Advertising and Sales Promotion etc., in Government Colleges in the last few years on partial selffinancing basis. Similarly PG courses on self financing basis are also sanctioned every year on the basis of demand and facilities available. These courses are accessible to the students belonging to the poor and marginalised sections. To encourage women education, the higher education department is motivating the colleges to provide hostel facility to women students. Earlier, University Grants Commission had sanctioned Rs.10,34,02,795/- for the construction of hostels in 14 Government Degree colleges during 2007-2008. During the past one year, 277 JKCs were established in degree colleges and students were trained in Communication skills, Soft skills, Analytical skills and Computer skills. Apart from the above programs under JKC, the Commissionerate initiated a short-term Accounting Executive Course for Commerce students. The main objective of this course is to provide employable and work oriented skills to students for securing employment. The duration of the course is 240 hours spread over a period of four months. Intensive training is given in Tally Financial Accounting Package, Communication skills and Computer skills. A total of 5998 students in 116 Government and Private Aided Colleges were trained. Campus Recruitment drives/ Job melas like Infosys, F&A ISBN were conducted during 2009-10. The Higher education department had taken several measures and motivated the staff and students of the colleges to obtain the accreditation from National Assessment and Accreditation Council which is a significant and shining 2010

parameter for measuring the quality of the college. A distinctive feature of accreditation of colleges in AP is the higher order of grades achieved by the colleges in the State reﬂecting the quality enhancement achieved. Out of 130 Government colleges accredited, 120 got grades at the level of B or above. The average grade achieved by the Government Colleges is one of the highest at the country level. The grades obtained by Aided colleges are equally good. Out of 92 colleges that were accredited, 87 got B or above B grade and remaining four got above three stars.

Sakshar Bharat Mission A new scheme called Sakshar Bharat Mission 2012 is proposed to be implemented as a Centrally Sponsored Scheme. The main focus of this programme is to eradicate illiteracy among adult women and to achieve 80 percent literacy rate by decreasing gender gap in literacy to 10 percent. The districts with 50 percent and below female literacy rates are going to be covered in this programme.

2010

To improve enrollment ratio for IX and X classes from 65 percent to 100 percent and to strengthen existing secondary schools, a new scheme called “Rashtriya Madhyamika Siksha Abhiyan” is proposed to be implemented from 2010-11 with central assistance of 75 percent. The state government is providing computers to schools to meet the growing demand for manpower with computer skills. An outlay of Rs.9824 Crores is provided for School Education Department for the financial year 201011. The state government has been taking several steps in the direction of improving access to higher education while promoting equity and inclusiveness and placing utmost emphasis on the quality and relevance of subjects taught in the institutions of higher education. In the last five years, 18 new Universities have been set-up in the State. Government has also sanctioned 104 new Junior colleges during the last three years. These measures represent an unprecedented growth in the State in the field of higher education.

A NEW SCHEME CALLED SAKSHAR BHARAT MISSION 2012 IS PROPOSED TO BE IMPLEMENTED AS A

CENTRALLY SPONSORED SCHEME. THE MAIN FOCUS OF THIS PROGRAMME IS TO ERADICATE ILLITERACY AMONG ADULT WOMEN AND TO ACHIEVE

PERCENT LITERACY RATE BY DECREASING GENDER GAP IN LITERACY TO

PERCENT.

Infrastructure ANDHRA PRADESH IS SPEEDING UP ON MANY OF ITS INFRASTRUCTURE PROJECTS AND IS NOW KEEN ON MOVING AHEAD WITH MANY OTHER PROJECTS THAT HAVE BEEN LINED UP OTHER THAN JUST ROADS.

WITHIN THE

GAMUT OF INFRASTRUCTURE, THE STATE HAS PRI-

SEZS, NATURAL BRANDIX, PCPIR AND MORE…ALL LEADING ORITIZED GAS,

TO TOTAL DEVELOPMENT OF INFRASTRUCTURE ON THE WHOLE.

n a major Infrastructure development proposal put forth by Andhra Pradesh Government to Kamalnath, Central Minister for Surface Transport, Government of India, the Minister had categorically agreed to release Rs 500 crores for the development of major state Highways and construction of bridges along the major district roads in Andhra Pradesh. The central government had also agreed to provide a special infrastructure package for widening of all the roads in the state. 88

Speeding Up The Chief Minister Dr K Rosaiah asked the R&B Department to speed up construction and maintenance of all road and bridges works taken up in the State. “Roads are most important and early completion of road works would be taken up under different schemes including World Bank funded projects. They are vital for all-round development of the State,” he said.

2010

Out of the 7 road projects under upgradation and improvement component, two road works are in progress. Other road works are at various stages. These works are Chittoor-Puttur road, KandiShadnagar road, Kurnool-Devarkonda road, Mydukur-Janmalamadulgu road, Jagtiyal-Peddapalli road, Pedana-Visannapeta road and Kakinada--Rajahmundry road and the total comes to 429 kms.

Under long term Performance-based Maintenance contracts, 11 projects are grounded covering a length of 2,013 kms. The meeting decided to call for tenders for the balance 26 packages covering a length of 4,228 kms before August, 2010. The Chief Minister also instructed to expedite land acquisition for the PPP Projects and also directed to conduct feasibility study for taking up the following roads under PPP. Sangareddy-Narsapur -Toopran-Ga2010

jvel-Bhongir-Chityal road for a length of 164 kms. Kurnool-Nandikotkur--Atmakur road from 0 km to 115 kms for a total length of 115 kms. Mahbubnagar--Nalgonda road from 0 km to 163.20 kms for a total length of 163.20 kms Konda Modu--Guntur (part of

Hyderabad--Guntur road from km 239.73 to 298.391(4-lane) including bypass at Sattenapalli (11.34 kms) --total length-70kms The Chief Minister also directed the R&B department to prepare shelf of Projects to explore the possibility of going for long term loans for implementation of important road projects in the State during the next 5 years. Dr Rosaiah also asked the department to speed up land acquisition for the second bridge 89

ANDHRA PRADESH HAD PROPOSED TO TAKE-UP

370 WORKS WITH A COST OF RS 951 CRORES UNDER THE CENTRAL ROAD FUND PROGRAMME, SIMILARLY UNDER THE

ECONOMIC IMPORTANCE SCHEME 128 WORKS HAVE BEEN PROPOSED TO BE UNDERTAKEN WITH A COST OF CRORES.

RS 1124

across river Godavari near Rajahmundry including approach road connecting East and West Godavari districts. The Chief Minister also agreed to positively consider release of funds for land acquisition and other preliminary works of Hyderabad-KarimnagarRamagundam (Rajiv Rahadari), Narketpally-Addanki-Medaramitla road and upgradation and improvement of road from Nellore to Gooty via BadvelMydukur-Rayalacheruru. The total cost of the project is estimated to be Rs.3165 crores and project duration is 5 years from signing of loan agreement (2010-2015).

Infrastructure proposals of AP for the current year 2010-11 The Andhra Pradesh government had also set a host of proposals to allocate the NHDP 4A/B project execution and implementation to PWD. The state government had put a proposal to central government to recognize the Road stretch between Pootalapattu and Naidupeta as National Highway 18 (NH-18). The government had proposed to include the road stretch between Bangarupalem to Chittoor as a part of the Bangalore-Chennai Express highway which is being constructed by NHA1. In 90

addition to this the state had also put a proposal to develop a 4 lane stretch of 70 kilometer Road under the PPP mode between Tirupati and Chittoor via Pootalapattu. Andhra Pradesh had proposed to take-up 370 works with a cost of Rs 951 crores under the Central Road Fund Programme, similarly under the Economic Importance Scheme 128 works have been proposed to be undertaken with a cost of Rs 1124 crores. Under the interstate connectivity scheme, 35 important works have been proposed by the state costing Rs 632 crores for the current year. For the ďŹ&#x201A;ood affected districts like Kurnool, Kadapah, Mahabubnagar, Nalgonda, Krishna and Guntoor the government had proposed to build all weather roads under the central road fund scheme with an estimated cost of Rs 553 crores. The state government of Andhra Pradesh had also proposed for the sanction of Rs 300 crores for the Economic importance and Interstate connectivity schemes. The districts of Srikakulam, Vijayanagarm, and Visakhapatnam were also proposed to bring under special infrastructure scheme for the year 2010-11.

2010

Comparative budget for Roads and Buildings for 2009-10 and 2010-11 Schemes and Programmes

Budget ‘09-10

Budget 2010-11

Rs in Crores

Salaries

186.32

201.16

Special and Ordinary Repairs

830.70

933.08

Finance Commission Funds

190.34

Repairs & Maintenance of Buildings

41.72

41.78

Maintenance of Roads

38.18

79.99

Total

1287.26

1446.35

C.R.F, R.O.B/RUB

1106.66

509.30

Widening, Strengthening and Construction of Bridges

58.25

107.25

onstruction of Bridges & Roads In Rural Areas

151.43

153.25

Laying of Roads in municipal Areas and others

25.00

54.38

PPP Roads, Land Acquisition Roads Development and Improvement

348.36

774.13

Total

1722.63

1648.31

Grand Total

3009.89

3094.66

Non-Plan

Plan

Major Boosters The Chief Minister Dr K Rosaiah said that Andhra Pradesh is set to receive a major boost to infrastructure development in its sustained efforts to become the Preferred Global Sourcing Hub for Apparel industry in the country. The Chief Minister said the State is projected to attract overall investment of Rs.70,000 crore with an expected employment potential of 25 lakh in the coming years. Andhra Pradesh bagged the largest number of 73 SEZs out of the 346 SEZs in the country and has already brought an investment of Rs.14,700 crore and one lakh employment (both direct and indirect) to the State . The natural gas potential in the Krishna-Godavari basin in the Northeast belt of the State starting from Visakhapatnam to Kakinada has been promoted as a major industrial corridor with major projects like AP Special Economic Zone, a multi product SEZ, Jawaharlal Nehru Pharma City, 2010

THE PRESTIGIOUS PROJECT OF PETROLEUM, CHEMICALS AND PETRO CHEMICAL INVESTMENT REGION (PCPIR) IS JOINTLY PROMOTED WITH

GOVERNMENT

OF INDIA AND PRIVATE PARTICIPATION IN THE

Brandix Apparel City, Kakinada Multi product SEZ, Expansion projects of Visakhapatnam Steel Plant, HPCL etc. Rs.800 crore has been invested on infrastructure development in the multi-product APSEZ promoted by APIIC at Visakhapatnam in an area spread over 5659 acres in Actuthapuram and Rambilli. The prestigious project of Petroleum, Chemicals and Petro Chemical Investment Region (PCPIR) is jointly promoted with Government of India and private participation in the region with an outlay of Rs.19,031 Crores. This project was a combination of Ports, Airports, SEZs, Industrial Parks, Export-oriented units etc, between Vishakhapatnam and Kakinada corridor and is expected to attract a total investment of Rs.3.43 lakh crores. ‘The entire project has an employment potential of 12 lakh in the next 6 to 8 years’. The Centre had agreed to share the cost of the PCPIR Express way project from Gangavaram Port to APSEZ and from APSEZ to Kakinada taken up with an

REGION WITH AN OUT-

RS.19,031 CRORES. THIS PROJECT WAS A COMBINATION OF PORTS, AIRPORTS, SEZS, INDUSTRIAL PARKS, EXPORT-ORIENTED UNITS ETC, BETWEEN VISHAKHAPATNAM AND K AKINADA CORRIDOR AND IS EXLAY OF

PECTED TO ATTRACT A TOTAL INVESTMENT

RS.3.43 LAKH CRORES. OF

estimated cost of Rs.300 crore on a 50:50 basis.

THE ANDHRA PRADESH GOVERNMENT HAD ALSO SET A HOST OF PROPOSALS TO ALLOCATE THE

NHDP 4A/B

PROJECT EXECUTION AND IMPLEMENTATION TO

PWD. THE STATE

GOVERNMENT HAD PUT A PROPOSAL TO CENTRAL GOVERNMENT

Jawaharlal Nehru Pharma City (JNPC) developed over 2,143.23 acres at Parawada mandal of Visakhapatnam at Rs.350 crores is expected to attract investments at Rs.10,000 crores and employ 20,000 people. So far 81 units have begun operations in the pharma city providing jobs to 4,312 persons with an investment of Rs.549 crores.

Tirupati International Airport Dr. Manmohan Singh laid the foundation stone for the Tirupati International Airport on 10th July. It is a long cherished desire of the lakhs of devotees and the people of the State to have an international airport at Tirupati. Tens of thousands of devotees from all parts of the country and abroad throng the

most famous pilgrim Centre of India, the Tirumala temple, to have the darshan of Lord of Seven hills. The Ministry of Civil Aviation two years ago decided that the existing airport be upgraded to International Airport with the construction of new integrated terminal building with all modular facilities and extension of existing runway by 984 meters. The Airport Authority of India has agreed to bear the capital expenditure of Rs.300 crores while the State Government provides the required land of about 718 acres. The State Government has handed over advance possession of Government lands and DKT lands totalling 293.05 acres located in Renigunta. Chief Minister Dr Rosaiah said, “The State Government is determined to go in for massive infrastructure development in the State for economic development.”

TO RECOGNIZE THE

ROAD STRETCH BETWEEN POOTALAPATTU AND NAIDUPETA AS NATIONAL HIGHWAY 18 (NH-18).

2010

“The government has a perspective plan to develop Airport infrastructure to handle the air trafﬁc and passenger strength for the year 2050” ANDHRA PRADESH IS LOOKING BEYOND 40 YEARS FROM NOW AND DRAFTING LONG TERM PLANS TO HANDLE AIR AND WATER TRAFFIC FOR 2050. TO BEGIN WITH THE STAGE HAD ALREADY SET WITH COMPREHENSIVE PORT AND AIRPORT INFRASTRUCTURE IN PLACE WITH HUGE INFLOW OF PRIVATE INVESTMENTS AND LARGE NUMBER OF PROJECTS BEING TAKEN UP ON A PPP MODE. T.R.K R AO, SPECIAL SECRETARY – INFRASTRUCTURE, GOVERNMENT OF ANDHRA PRADESH SPEAKS ABOUT THE VARIOUS INFRASTRUCTURE DEVELOPMENT ACTIVITIES TAKEN UP IN THE RECENT PAST. Please elaborate on the role played by the Infrastructure department in the state? Andhra Pradesh has its doors open to the world for it has the longest sea cost corridor of about 1000 kilometers length. This wide stretch of seacoast has given the State a host of opportunities to build state-of-art Ports and Harbors all along its length connecting vital trade routes of not only the domestic markets but also the international sea line of trade and commerce. Unleashing the immense potential of the natural resource and the geographic location and physical advantage, the Infrastructure department of Andhra Pradesh had constituted a separate wing to have an exclusive focus on the development of Ports and Airports in the state. In fact, the Infrastructure department is a unique establishment of its own kind. No where in the country will ﬁnd such a set up, as seen in Andhra Pradesh. The Infrastructure department is bestowed with exclusive responsibility of fast tracking the infrastructure projects in the state. Our department acts as a catalyst and a lubricant to propagate PPP agreements and initiate immediate actions to get faster clearances from the government. How do you view the development of Ports in Andhra Pradesh during the past one year? 94

As Seaports are the major centers of trade and commerce we have focused our concentration to construct modern infrastructure facilities for the existing ports and build more number of new ports in the state. During past five years, we have tremendously increased the cargo handling capacity of our ports. Earlier, the ports in the State had a capacity of handling only 10 million tonnes in 1999. Today we have increased this capacity to 43 million tonnes in 2010. On an average, the cargo handling capacity has increased from 12 million tonnes to 77 millions per annum. By end of this plan year 2010-11, we are expecting to reach a capacity 108 million tonnes per annum. All this is achieved because we have followed three important strategies. One is encouraging more number of private public partnership (PPP) modes of development. Secondly strict adherence to competitive bidding and the finally careful agreements, Joint Ventures and MoUs have enabled us to yield the desired results. Among the PPP projects, Gangavaram and Krishnapatnam Ports are prominent in Andhra Pradesh. Gangavaram port had started its trial based operations in 2008 and was officially inaugurated in June 2009. It is India’s gateway port to the world by being the deepest multipurpose port in the country and providing ultra modern infrastructure, offering economic and

efﬁcient logistics solutions to customers in the hinterland. Ever since the operations started at Gangavaram, the port has handled over 70 million tonnes of cargo. It has a depth of 21 meters in to the sea. Works are still going on to augment the port with more sophisticated facilities which would enable it to handle 2 lakh tonnes in the future. The port is linked to Vizag steel plant through a conveyer belt which is of length 15 Kilometer connecting the both. The steel plant saves Rs 50 crores annually, which it would have spent on transport without such a facility. In 2009, the Port had earned Rs 403 crore as revenue, out of which Andhra Pradesh got its share of Rs 7.7 crore. Krishnapatnam port in Nellore is commissioned in 2009 with an initial cargo handling capacity of Rs 16.1 tonnes. Most common incoming and outgoing cargo here is Iron ore and coal. Kakinada port is another important deep water ports in the state. It has a cargo handling capacity of 11.93 million tonnes. Until 1999 it was under the government control, but in 1999 the port was transferred to the private management. Ever since then, it has handled 88.69 million tonnes of cargo and earned Rs 786.1 crores of revenue out of which government of Andhra Pradesh earned its share of Rs 221 crores. How does the PPP mode of development help the government? 2010

International Airport) at Shamshabad in 2008, Andhra Pradesh had made a mark in the International travel arena. RGIA is the ﬁrst green ﬁeld international projects which was taken up in PPP mode and was completed in a record time period of just one year.

In PPP mode the government is relieved of ﬁnancial burden. The proposed property to be developed is given to the private investors on a long term lease initially for 30 years which is then extendable 20 more years. Meanwhile the state government provides all the support to the developer in terms of construction of roads, water supply, and power supply and tax exemptions. The state government had also extended Replacement and Rehabilitation to the families those who were affected by the development process at the ports. Under the Gangavaram and Krishnapatnam port activities Rs 175 crores and Rs 216 crores were paid respectively for the rehabilitation activities of the affected people. During the past two years all the three ports, Gangavaram, Krishnapatnam and Kakinada Ports have earned an investment of Rs 1850 crore, Rs 1,200 crore and Rs 375 crores respectively. Our revenue returns have surpassed the expenditure. Last year our spending was about Rs 70 crores while our returns were Rs 75 crores. For every one million tonne of cargo the government earns approximately Rs 1.5 crores every year. The PPP policy is 2010

absolutely beneﬁcial for the government not only in terms of economic gain but also employment generation for the public. What are your future plans for development of ports for the year 2011-12? For the coming year 2011-12, it is proposed that an investment of Rs 6,000 crores would ﬂow in for the development of Phase-II of Krishnapatnam port. An amount of Rs 800 crore is expected as investment for Kakinada port for same period. The expected investment for Machilipatnam for the year 2013-14 is Rs 1,590 crores while it is Rs 16,800 crores for Nizampatnam port for the following year 2014-15. Under the Industrial Corridor development scheme the government is expecting an investment of Rs 25, 190 crores in the coming two to three years. What are your views on the Airports Infrastructure development in Andhra Pradesh? Looking at the airports, earlier Andhra Pradesh had a congested air space at Begumpet. With the development of RGIA (Rajeev Gandhi

As soon as RGIA project was completed, it triggered a series of other infrastructure development activities such as Roads, Flyovers, Expressway, Hotels, Satellite cities etc. The most prominent among them are the P.V Narshima Rao Express Highway which extends upto 11.5 Kilometers, one of the longest ﬂyovers in Asia. The Outer Ring Road Project (ORR) which surrounds Hyderabad with a length of 169 kilometers and the Satellite towns along the ring road with stateof-art facilities like parks, hospitals, schools, malls, entertainment facilities etc are some of the other highlighting features of infrastructure in the state. The government has a perspective plan to develop the Airport infrastructure in the state to handle the future air trafﬁc and passenger strength for the year 2050. The state government had also proposed to upgrade the Tirupati airport to International standard which has been positively accepted by the central government. For the activities of land acquisitions and removal high tension wires, the government of Andhra Pradesh has released Rs 133 crores for the year 2010. Rs 300 crores have been released from Airport Authority of India (AAI) as its initial share. The idea of building airports in each district is slowly picking up momentum in the state. Initially site feasibility surveys have been conducted at Kurnool, Tadepallygudem, Nizambad, Ongole and Nellore districts. All locations have got environment and other clearances except the locations at Ramagundam and Nizambad are awaiting defense clearances. All projects are proposed to be taken up under the PPP mode. Concerning a poor response from investors for Ongole airport, government had dumped the project for now. 95

Building itself to Big Time IJM (INDIA) INFRASTRUCTURE LIMITED (IJMII) STARTED IN 1997 AS PART OF THE MALAYSIAN MULTINATIONAL, IJM CORPORATION BHD’S (IJM) GLOBAL EXPANSION PLAN; THE SUBSIDIARY HAS BEEN ACTIVELY PARTICIPATING IN THE HIGH GROWTH OPPORTUNITIES OFFERED BY INDIAN INFRASTRUCTURE INDUSTRY, MORE SPECIFICALLY IN THE CONSTRUCTION SECTOR.

JMII’s main thrust is in construction and up-grading of highways and property development including world class townships and commercial buildings using modern technology and equipment. The company has strong presence across the country apart from its presence in Andhra Pradesh and has built a brand for itself across the country with its impeccable ethics of business. “IJMII has been actively participating in the high growth opportunities offered by Indian Infrastructure Industry, more speciﬁcally in the construction sector. IJMII’s main thrust is in construction and upgrading of highways and property development including world class townships and commercial buildings using modern technology and equipment,” said Pankaj Agarwal, Chief Operating Ofﬁcer, IJMII.

DMRC – BC8 (Value Rs.169 Crores, Length 4.505 Km) MCD Civic Centre Building Project, New Delhi (Value Rs.650 Crores, Built-up area 2,14,260 sqm).

Ongoing Projects IJMII is also constructing some of the prestigious projects like: Prestige Shantiniketan Township and Commercial Project in Bangalore (Value Rs.330 Crores, Built-up area 10.63 Million Sq.ft) Raintree Park Dwarka Krishna, Integrated

Recent Projects IJMII has completed following major projects recently: Jaipur Mahua Road Project – Rajasthan (Value Rs.651 Crores, Length 108 Km) Ulundurpet – Padalur BOT Road Project (Value Rs.359 Crores, Length 46.40 Km) DMRC Phase II – Elevated Viaduct Project –BC4 (Value Rs.89.30 Crores, Length 2.86 Km)

IJM’s MCD Civic Centre Building Project 96

2010

Township Project in Vijayawada (Value Rs.309 Crores, Built-up area 1.9 Million Sqft) DMRC AMEL C2 elevated project in Delhi (Value Rs.140 Crores, Length 7.28 Km) Vijayawada Chilakaluripet Road Project (Rs.675.38 Crores, Length 82.3 Km).

Future Plans “As the market situation is improving after passing through rough phase due to economic slowdown since last one year, we want to move forward and focus on infrastructure projects like BOT apart from cash contract projects. We will also focus on projects from Private funded projects apart from Government/ PPP funded projects and also Government – Government BOT contracts,” says Agarwal. IJM has recently secured 4 laning of Pune-Solapur Road Project as an EPC Contract worth Rs.453.58 Crores and length is 53.7 Km. “As of now, IJM has invested Rs.600 crores in India out of which about 30 percent has been invested in Andhra Pradesh. In Andhra Pradesh, IJMII is also keen on taking up the Metro project if such a situation arises, but strictly on cash contract. The company is also looking at expanding its presence in roads and rail links. Recently, Minister of Surface and Road Transport Kamal Nath has set a target of 20 Km a day for next ﬁve years and 15000 Km award this year. If this takes place then a lot of development will start happening in Andhra Pradesh and rest of the Country,” said Agarwal.

Mark of Excellence All necessary activities, including regular

Pankaj Agarwal, Chief Operating Ofﬁcer, IJMII

training courses, internal quality and safety audits, quality and safety campaigns, and annual management review, are carried out to further enhance the already reputable quality products provided by the Group, consistent with IJM’s stamp of “Mark of Excellence”. IJM has inculcated in its work culture the need to maintain and enhance the high quality standard of work performance and level of safety. This was made possible through the relentless support and commitment of the staff and Management lead by the Group Managing Director.

Quality and Safety Policies To ensure that the Group continues to uphold its Quality and Safety policies and objectives, the Quality Management Committee and the Occupational Health and Safety Management Committee conduct an annual review of the Quality Management Systems and Safety and Health Management System. In particular, these review addressed the validity of the Company’s policies on quality, occupational health, safety and environment, and consider changes, where required, including review of the Company’s Quality and Safety Manual and associated departmental procedure manuals to ensure that the requirements of the ISO 9001:2000 and OHSAS 18001 standards are met. Where necessary, appropriate means of improvement and corrective and preventive actions are recommended and taken to rectify any weakness and deﬁciency identiﬁed from internal and external audit reports. IJMII has got the ISO 9001:2000 accreditations in January 2003 with Scope of: “Construction and maintenance of Roads, Bridges, Townships and Residential and Commercial Buildings”. IJMII has got the ISO 9001:2008 accreditations in June 2009 with Scope of: Design & Development, Construction and Maintenance of Roads, Bridges, Townships, Residential and Commercial Buildings.

2010

Taking Signiﬁcant Steps towards Progress GREATER VISAKHAPATNAM MUNICIPAL CORPORATION (GVMC) IS THE SECOND BIGGEST IN THE STATE OF ANDHRA PRADESH WITH A POPULATION OF ABOUT 16.23 LAKHS AND AN EXTENT OF 533 SQ. KMS. A RARE MIXTURE OF MAGICAL PAST AND VIBRANT PRESENT, THIS CITY IS RATED AS THE FASTEST GROWING CITY ON THE EAST.

isakhapatnam is the country’s largest city in terms of land and Andhra Pradesh’s second largest urban agglomeration in population. On account of rapid industrialization, there has been significant migration into the city. The city was originally a small fishing village but due to its natural harbour it developed into a major port. With the formation of Greater Visakhapatnam in 2005, the city’s development is set for a quantum leap. The city of Visakhapatnam has implemented a number of reforms including e-governance and citizen-friendly initiatives. Visakhapatnam has been the first city in the country to implement e-governance and still leads in offering a variety of services to its residents online. The Corporation is working closely with planning and service delivery institutions in the city for improving the quality of life. 98

Greater Visakhapatnam Municipal Corporation (GVMC) consists of the Municipal Corporation, Visakhapatnam (MCV-core of GVMC), 32 merged Villages and the erstwhile Gajuwaka Municipality. The population of Vizag urban agglomeration increased from 1.05 million in 1991 to 1.32 million in 2001. The growth of population was more than 80 percent during 1971-81 and 37.11 percent during 1991-2001. Due to formation of GVMC and merger of surrounding villages, several well established urban components of the city are located within the GVMC. The projections indicate that the GVMC would have population of 20.99 Lakhs by 2021. GVMC has been divided into six zones consisting of 72 Wards; Zone-I consists of Wards 1 to 6, Zone-II consists of Wards 7 to 18, Zone-III consists of Wards 19 to 30, 2010

Zone-IV consists of Wards 31 to 49, Zone-V consists of Wards 50 to 65 and Zone-VI consists of Wards 66 to 72. The basic infrastructure and facilities across all the zones are same. Each zone has its own socio-economic characteristics.

Recent Projects Twenty projects were taken up under JNNURM (Jawaharlal Nehru National Urban Renewal Mission) scheme out of which 13 projects are under sub-mission urban infrastructure and governance (UIG). The remaining seven projects are under submission of Basic Services for Urban Poor (BSUP). Giving top priority to the Drinking water, seven projects were taken up with an estimated cost of Rs. 650 crores. Projects in progress under JNNURM Replacement of existing Thatipudi Pipelines One of the major water sources to Visakhapatnam city is Thatipudi Reservoir which is 58 kms from the city. 8 MGD water is being drawn from the reservoir by pipelines. “As the pipelines were laid 50 years back breakages and leakages in water supply occurred and about 4 MGD water was wasted. To arrest the water leakages and supply of water to the people of Visakha it became inevitable to replace the existing pipeline. The replacement of existing Thatipudi Pipeline work has been taken up at an estimated cost of Rs. 62.28 crores and 95 percent of work was completed and it will by commencing functioning shortly,” said VN Vishnu, Commissioner of GVMC Pipelines from TSR to Yendada to Kommadi To provide drinking water facility to Yendada, Kommadi and the adjacent villages which were recently merged into GVMC, a new pipeline work was taken up in 12.50 kms from Town Service Reservoir to Yendada to Kommadi with an estimated cost of Rs. 23.40 crores. The work has been completed and water is being supplied to the targeted people. The other ﬁve projects under the Water supply sector with an estimated cost of Rs. 565 crores are in progress. 80 percent augmentation of water supply to Gajuwaka with a tune of Rs. 39.76 crores had been completed. The refurbishment of water supply distribution in Gajuwaka with an estimated cost of Rs. 46 crores and the augmentation of Drinking Water supply to 32 peripheral areas with a tune of Rs. 240.74 crores are under progress. The comprehensive water supply system in North eastern Zone in central area and in old city with an estimated cost of Rs. 238.11 crores are also in progress. Regularisation of S.L. Canal and Yerrigadda “In the city, there are many Canals which were very old and difﬁcult to maintain. Due to improper mainte2010

VN Vishnu, Commissioner of GVMC

nance, lack of awareness among the people, the canals are overﬂowing even during small rains and the storm water enters in to the houses of low lying areas. Under these circumstances the drastic problem arises from the canals. To avoid overﬂow of the storm water in rains, regularisation works of S.L. Canal and Yerrigedda canal were taken up with an estimated cost of Rs. 12.60 crores. The works were completed and the submergence of the low lying areas were contracted during rains. Due to regularisation of these canals while retaining walls and RCC raft in reaches, many surrounding areas have been protected from submergence,” said Vishnu. To avoid submerging in some more areas, it is proposed to take up improvement of Gangullagedda and Yerrigadda branch canals with an estimated cost of Rs. 72.27 crores in three packages. Works have started on these canals. Another Rs. 61 crores is proposed to regulate Gangullagedda and branch canals of Yerrigedda. Sewerage System The Sewerage system has been taken up in the city with an estimated cost of Rs. 281.52 crores. The 38 MLD capacity Sewerage Treatment Plant (STP) and sewerage network in uncovered areas of old city for about three lakhs population is in completion stage. In the Central Part of Visakhapatnam City the sewerage network and STP covers 5.53 lakhs population. The works are under progress. Under this scheme proposals were sent to the government with an estimated cost of Rs. 865 crores to provide under ground drainage system to Gajuwaka, Madhurawada & Pendurthi areas. If the Sewerage System is completed, the underground drainage water from the households will be treated in the Sewerage Treatment plants. The water can be reused for supplying to the Industries, Parks etc. Bus Rapid Transit System (BRTS) Under the BRTS, with an estimated cost of Rs. 453 crores, two corridors were sanctioned by the Government 99

of India out of proposed 8 corridors. Eight lane roads would be created out of which two dedicated lanes are exclusively for BRTS buses. The 18.50 km Simhachalam Transit Corridor (STC) and 22 kms Pendurthi Transit Corridor (PTC) are prestigious corridors taken up by the Corporation. It is also proposed to construct a flyover from Vemana Mandiram to Railway Divisional Manager’s Office under the PTC. Presently, the prestigious subway construction work is also going on from Ramatalkies Road towards RTC Complex and towards GVMC Office in ‘Y’ shape.

Sub-Mission – BSUP (Basic Services to Urban Poor) Infrastructure to poor settlements An amount of Rs. 228 crores is estimated for infrastructural development in 19 poor settlements viz., Srinagar, Yathapalem, Vadlapudi, Aganampudi, Vambay Colony, Pedagantyada, Gangavaram etc. Under this scheme Water supply, underground drainage, roads, drains, street lights, and community facilities will be provided. Infrastructural facilities were provided in three poor settlements (Srinagar, Yathapalem and Vadlapudi) to the tune of Rs. 36 crores. In remaining 16 poor settlements, providing of infrastructural facilities are in progress (70 percent of works completed) to the tune of Rs. 192 crores. Towards a Hut-less City “The GVMC has planned the city to transform it into a hut-less city shortly. In this connection, it is proposed to construct houses in G+3 system. JNNURM Housing is a boon to urban poor. 15,320 houses are being constructed in 38 places at present out of which some houses were completed and allotted to the Gangavaram Rehabilitants 100

and Vambay leftovers, etc. Another 20 thousand houses are proposed to be constructed during 2010-11. These houses will be allotted to eligible the below poverty line population,” said Vishnu. Revised Administrative sanction was accorded for Rs. 303.45 crores for construction of 15320 houses. The cost of unit is fixed @ Rs. 1,65,000/- out of which Rs. 53,000/- and Rs. 50,700/- will be borne by the Central & State Governments respectively. The beneficiary contribution is Rs. 20,300/-. Loan from the financial institutions is Rs. 41,000/- out of which Rs. 6,000/- is the subsidy/grant from the State Government. Due to various reasons the estimated cost of each unit is increased to Rs. 1,81,000/for 2002 units (Rs. 16,000/- increased out of which the state government will bear 50 percent and the beneficiary should bear the rest 50 percent). Rajeev Awas Yojana The city has been selected under the Rajeev Awas Yojana Scheme. Under this scheme houses will be construction to house dwellers with the financial support of Government of India. Sanitation & Solid Waste Management GVMC has about 17 lakhs population and generates 880 MT of debris every day, which includes household (330 MT), Commercial, drain silt and their garbage and the silt from geddas and drains. 70 percent of total garbage is collected from door to door collection at source by Jana Chaitanya Rickshaws. The rest of the garbage is being generated from road sweeping and drain cleaning which are collected in closed bins. The collected garbage and silt from geddas is transported to the Dumping yard at Kapuluppada located 22 kms from Transfer station. 800 2010

Dumper Bins are placed in the city. 47 Dumper Placers and 33 tippers are presently working to transport these bins. One Transfer station for the city is under operation. Two more Transfer stations are proposed at Pendurthi and Gajuwaka Zones. Subram Sanitation workers are engaged by the local Resident Welfare Associations (RWA’s) for Sweeping and Drain cleaning. Janachaitanya Padhakam This Scheme is implemented in 50 localities. 200- 250 families are to participate in a unit of the scheme and each family contributes Rs. 5 to Rs. 10/- per month. A tricycle is provided to them by the Municipal Corporation free of cost. The group of families engages a rickshaw-puller to collect garbage from house to house and deposit the same in the designated bins. Urban Malaria Scheme Anti Larval Operations, Focal Spraying Operations and Fogging Operations are being carried out in regular intervals to eradicate mosquitoes and thus Malaria, Filaria etc. It is also proposed to make the city into a “Dust Bin Free City”, in a phased manner. Under this scheme a pilot project has been implemented in six wards as “Dust Bin Free Model wards”. The garbage will be collected directly from the house to house. Source segregation and vermicomposting reuse of recyclable will be done in these model wards.

Upadhi Scheme “Upadhi” Scheme has been introduced in GVMC to generate employment to unemployed youth. The City of Destiny is developing in all aspects like Industries, Tourism, Infrastructure, Technology, etc. The then Chief Minister of Andhra Pradesh, Dr. Y.S. Rajasekhara Reddy launched the “Upadhi” scheme on Jan 2nd 2008 to lend a helping hand to the unemployed Youth. Under “Upadhi”, targeted youth between the age group of 18-35 are provided employment by imparting training in selected trades like House keeping, Security, Surface ornaments etc. The training is being given to them with 70 percent placement guarantee by the training agencies. So far 6200 trainees successfully completed their training in different trades out of which, 3531 were given placements in various organisations. 6144 trainees have completed their training in Fashion Technology. Balyam Scheme “Balyam” is an innovative programme introduced by the GVMC for the beneﬁt of 3-5 years children. The programme has been inaugurated by Pulusu Janardhana Rao, H.W. Mayor. Under the scheme, children in the age group of 3-5 years are given nutritious food and education with toys, games, songs, stories, play cards, charts, etc. 58 centres were identiﬁed in 72 wards of GVMC and all centres are running successfully with 1700 children. Under the Balyam project an amount of Rs. 50,000 to each centre was sanctioned.

Solid Waste Management initiatives under 12th Finance Grants Under this scheme the Government sanctioned Rs. 30.5 crores. Required number of Chain mounted excavators, Open Tippers, Auto Tippers, Tri-cycles, Dumber Places, Dumber Bins, etc., were purchased for sanitation purpose. Scientiﬁc Waste Management initiations were also proposed under the 12th Finance grants such as processing of organic waste (vermicomposting), recycling of inorganic waste, conversion of municipal waste to building material, power generation project, etc. 24 x 7 Water Supply GVMC has proposed round-the-clock drinking water supply in GVMC area. Under the pilot project 3,340 connections were issued in some areas. The Corporation has decided to implement the scheme in entire GVMC area in a phased manner by 2012 end. Under 24x7 water supply scheme, the bills will be borne by the consumer according to utilisation of water. The bill will be prepared according to meter reading measured with the water meters. By implementing 24 x 7 water supply scheme, wastage of drinking water can be reduced. 2010

“SWEEKARAM” IS A PROGRAMME MEANT FOR SCHOOLS ADOPTION AND SUPPORT PROGRAMME. IN THE ENTIRE

GVMC (EXCLUDING MERGED VILLAGES) THERE ARE 97 SCHOOLS. SOME SCHOOLS HAVE DEFICIENCY OF CLASSROOMS. OUT OF THE 72 PRIMARY SCHOOLS, 331 CLASSROOMS ARE AVAILABLE AGAINST THE REQUIREMENT OF 450 ROOMS. SIMILARLY 8 UPPER PRIMARY SCHOOLS HAVE 57 ROOMS AGAINST 80 ROOMS. IN 17 HIGH SCHOOLS, 251 CLASSROOMS ARE REQUIRED BUT THERE ARE ONLY 163 ROOMS AVAILABLE

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Sweekaram Scheme “Sweekaram” is a programme meant for schools adoption and support programme. In the entire GVMC (excluding merged villages) there are 97 schools. Some schools have deficiency of classrooms. Out of the 72 primary schools, 331 classrooms are available against the requirement of 450 rooms. Similarly 8 upper primary schools have 57 rooms against 80 rooms. In 17 High Schools, 251 classrooms are required but there are only 163 rooms available,” said Vishnu. To construct additional classrooms, providing water supply, sanitation arrangements, furniture, electrification, play equipment, computers and repairs to existing buildings, an amount of Rs. 31.50 crore worth of works were estimated. As it is a high burden to be borne by the corporation, this scheme was introduced. “Under the scheme donors are coming forward to donate and adopt a particular school for its development. Donors have exemption from Income Tax. A sum of Rs 4 crores have been committed by the donors to mordernise 25 Schools out of which 12 schools were completed with an expenditure of Rs 2 crore and 3 schools are under progress,” said Vishnu. Vidya Sree Scheme “Vidya Sree” is a planned, specific intervention of GVMC to encourage meritorious but economically challenged students of GVMC High Schools to pursue College Education. GVMC is actually confined to providing Secondary Education only. But noticing the plight of its own brilliant students, who are unable to continue further education owing to financial constrict, GVMC has conceived the idea of “Vidya Sree”.

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“Vidya Sree aims to help the needy students and make a difference in their young lives. It is based on the ideal that ‘Educated youth are the backbone of a Nation’. The concept is targeted at students who have secured 500+ marks in S.S.C. Public Examinations. Vidya Sree is a means to involve sponsors who can create a fund by contribution for the higher education of underprivileged children, who are studying in Greater Visakhapatnam Municipal Corporation Schools. The programme is dedicated to bring socio-economic change in the underprivileged families through the means of education of the children. Under this scheme Rs. 9,00,000/- was donated by the donors and Rs. 2,00,000/- was spent on 49 students who got above 500 marks in SSC Public Exams out of which, 29 students are being provided with education in corporate colleges and polytechnic colleges,” said Vishnu. Women Empowerment GVMC has also taken the initiative of empowering women. To provide better quality of life to women and sustainable livelihood, 1.60 lakhs women were formed into 14,103 Self Help Groups. 5,843 groups have Bank linkage with Rs. 56.00 crore in different dosages during the ﬁnancial year 2008-2009 which is a prestigious scheme of the Government of Andhra Pradesh. Under the “Pavala Vaddi padhakam”, Rs 2.98 crores was released by the State Government towards reimbursement to 11377 groups. Another Rs 2.50 crores is to be released to 3956 groups. “Previously banks were sanctioning loans on their terms and conditions and interest. But the Government of Andhra Pradesh now bears the interest amount which is more than 25 paise per rupee. Under the “Social Security Scheme”, about 63,100 old age, widow and disabled pensions are also sanctioned @ Rs. 200/- p.m. per head and Rs. 500/-

2010

per head to the disabled persons. The BPL families are also provided Rice @ Rs.2/- per kg,” said Vishnu. Insurance to PLHIV Insurance is an essential means to address the ﬁnancial burden faced by most of the People Living with HIV (PLHIV). The ‘Star Net Plus policy’ was launched by Star Health and Allied Insurance Company in April 2008 with technical assistance from PSI. A group of 200 positive people from organisations like Green Vision, FXB, World Vision and Society of Visakha Network of Positive Members (SVNP+) have enrolled for the policy. It is the ﬁrst innovative Health Insurance Scheme in Andhra Pradesh implemented by the Local body. Though this scheme is covering only 200 people, it hopes that larger groups of PLHIV’s will be covered in the city. Drop in Centre

Special awareness campaigns and training for HIV/AIDS patients have been conducted regularly. Library and entertainment facilities are also provided to them at the centre. Recently, a Voluntary Conﬁdential Counselling & Testing Centre (VCCTC) was also inaugurated in the Drop in Centre for HIV/AIDS testing. It is the ﬁrst of its kind in India working with the local body funds. Special Package for Dog Menace A special package for Dog menace has been taken up exclusively by the Corporation by passing a resolution in the Council. An amount of Rs. 50,000/- will be sanctioned to the heirs of the deceased who die of dog bite. Anti-Rabies Vaccines are also kept ready for the public in six places of six zones, free of cost. Killing of dogs is an offence according to the verdict of Supreme Court. Stray Dog Sterilisation camps are being conducted to reduce dog births. The GVMC has targeted to sterilise 10,000 dogs per annum with the help of non-governmental organisations.

“Drop in Centre” was established by the Visakha AIDS Control Society (VACS) which is under GVMC. Drop in Centre is meant for AIDS patients who come to the city for treatment.

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103

Housing AS USUAL THE GOVERNMENT OF ANDHRA PRADESH IS IN THE FOREFRONT IN IMPLEMENTING WELFARE PROGRAMMES.

AN ALLOCATION OF RS. 1800 CRORES HAVE BEEN MADE FOR SHELTERING THE POOR THROUGH

‘INDIRAMMA HOUSING SCHEME’ FOR THE YEAR 2010-11 TO REACH A TARGET OF 6.92 LAKH HOUSES.

ousing cannot be seen in isolation. It is an integral part of the family’s development. A family with a better house is likely to take more interest in the health and education of its members and will have a longer perspective for its future. If one looks at the scenario in Andhra Pradesh, the total population of the state is 75.7 million with a density of 275 persons per square kilometers. 16 percent population is living below poverty line. There are about 46 percent people 104

residing in kutcha houses in the state. Recognizing the right to adequate housing as a basic right of the poor, housing schemes in Andhra Pradesh are being taken on a priority by the government since past few years. Andhra Pradesh is in the forefront in providing large number of houses to the poor and so far the government has constructed about 96 lakh houses, which is the highest in the country.

2010

To develop Model Villages and Towns with a saturation approach, the state Government had launched ‘Integrated Novel Development in Rural Areas and Model Municipal Areas’ (INDIRAMMA) in the year 2006. Indiramma Housing Programme is a ﬂagship programme of the State Government aimed at providing pucca houses for rural and urban poor and to make the State hut free.

of progress. There are still 18.60 lakh houses yet to be started which are programmed to be taken up in the course of next two to three years.

This programme is aimed at covering 1/3rd of the state each year with a saturation approach. Initially the state government had provided budget allocation up to Rs 5000 Crores for two years.

to every household, Road facilities for transport, pensions to eligible old age persons, weavers, widows and the disabled, primary education to all, special nutrition to adolescent girls/pregnant and lactating women and better health facilities in all the villages over a period of three years in a saturation mode. If everything goes as planned, it is believed all the efforts of the government will improve the living standards of the people in the state signiﬁcantly.

Under the INDIRAMMA housing scheme, the government had so far registered 64.59 lakh housing proposals from the people. Of which 30.79 lakh houses have been completed and 15.19 lakh houses are under various stages 2010

The Andhra Pradesh State Housing Corporation Limited was formed in the year 1979 with an aim to provide pucca houses, drinking water supply, individual sanitary latrines, drainage, power supply

105

“Government provides ﬁnancial assistance from the budgetary allocation for implementation of Housing Programmes and play a facilitator role in construction of houses by providing technical and ﬁnancial assistance. We also propagate cost effective and eco-friendly construction materials and technologies in construction of houses. Training is also imparted for skill up gradation through Nirmithi Kendras, and we encourage institutional production of alternative construction materials,” said Neerabh Kumar Prasad, MD, Andhra Pradesh State Housing Corporation Limited. The Central and State government schemes implemented by APSHCL are:

Neerabh Kumar Prasad, MD, Andhra Pradesh State Housing Corporation Limited

Centrally Sponsored schemes Indira Awaas Yojana Housing for Weavers, Fishermen, Beedi Workers, etc. VAMBAY in Urban areas JNNURM, IHSDP State Schemes Rural Permanent Housing Urban Permanent Housing

UNDER THE INDIRAMMA HOUSING SCHEME, THE GOVERNMENT HAD SO FAR REGISTERED

64.59 LAKH HOUSING PROPOSALS FROM THE PEOPLE.

OF WHICH 30.79 LAKH HOUSES HAVE BEEN COMPLETED AND

15.19 LAKH HOUSES ARE UNDER VARIOUS STAGES OF PROGRESS.

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As mentioned earlier, the Indiramma programme is aimed at the poor to shelter them and protect them. The eligibility criterion for being selected as a beneﬁciary of Indiramma is anybody who is living in Kutcha house as a single family or joint family. Beneﬁciary living as a single family in fully dilapidated semi Permanent House constructed with government assistance before 1993-94 are also eligible. A person or an individual can also become eligible if his annual income are equal or less than normal average standards as mentioned by the government for the scheme. BPL (Below poverty Line) Families living in rented accommodation in urban areas are also eligible for the programme. “To make the INDIRAMMA programme a great success, unlike in the past, the government had evolved a new strategy and involved the people directly to monitor the auditing and implementation of the works. People’s

participation is key and all sanctions are in the name of women. The main implementation work is bestowed on the Self Help Groups who are more accountable and reliable. Beneficiaries become the main actors & also the agencies for construction. There is no involvement of contractors (except in G+ structures). The focus areas of the scheme are motivating and mobilization of the beneficiaries. Cement is supplied at concessional rates as the Cement companies have agreed for it as a goodwill gesture to the programme. The Nirmithi Kendras are extended for supply of building material at reasonable rates to the beneficiaries. The state government had waived Seignorage charges on Sand and quarry material for INDIRAMMA housing,” said Prasad.

E-governance for total transparency The execution, payment and monitoring of more than 60 lakh houses have been done through E-Governance system. It facilitates making payment easier. Internet banking, Monitoring house wise progress and complaint follow ups are also made through Internet and online system. Payment system (per house Rs) Rural

Urban

Cement 50 bags

7500

Payment

26750 35500

Supplementation

20000 30000

Total

54250 73000

Implementation arrangement including disbursement AE visits all villages himself personally once a fortnight as per a pre-drawn Programme and spends a fixed day in each village every fortnight. He calls for a ‘Beneficiaries’ meeting after completing verification of houses and then announces the list/ amount payable in the open which will be pasted in the Gram Panchayat & one other public place. (Totally open system, public scrutiny). 2010

Deputy Executive Engineer proposes payment only after verification of the Beneficiary Meeting minutes. DMs confirm payment online. The disbursement will take place only through individual accounts.

INDIRAMMA - At a glance Registered:

64.69 lakh

Completed:

30.79 lakh

Under progress:

15.19 lakh

Yet to start:

18.60 lakh

Additional amount for SC/ST beneﬁciaries Permission has been accorded for additional amount of Rs 20,000/- in rural areas and Rs 30,000/- in urban areas for all SC/St beneﬁciaries under Phase I,II and III INDIRAMMA housing. 2,27,713 Sc/St houses have been completed after issue of additional loan.

gramme. It has resulted in further performance with reference to completion of SC/ST houses. This facility was extended for Phase II and III houses during January 2010. Since then almost 20,000 houses are being completed per month which is helping the state to achieve the objective of providing pucca houses to SC/ ST beneﬁciaries on priority basis. The budget allocation for Indiramma housing programme during the year 2009-10 was Rs 2563 Crore, and the total number of houses constructed during the period was 7.52 lakhs. So far, out of a total of 64.69 lakh houses, which are taken up, 28.09 lakh houses have been completed and the balance are at various stages of completion. To complete all the houses in a time-bound manner, an amount of Rs 1800 crores is allocated in the budget for housing programme in the year 2010-11. The housing target set for the year 2010-11 is 6.92 lakh houses.

ANDHRA PRADESH IS IN THE FOREFRONT IN PROVIDING LARGE NUMBER OF HOUSES TO THE POOR AND SO FAR HAS CONSTRUCTED ABOUT

LAKH HOUSES, WHICH IS THE HIGHEST IN THE COUNTRY.

First time the loan was given during November 2008 for Phase I pro-

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107

“The most important challenge for the department is to find true beneficiaries” THE OBJECTIVE IS CLEAR, TARGETS ARE SET, TIME FRAME IS DECIDED, BUT MANY PROJECTS ARE STILL LURKING IN ABEYANCE, BUT HATS OFF TO HOUSING DEPARTMENT IN ANDHRA PRADESH FOR IT HAS VISIBLY SHOWN HOW TO MOVE FORWARD CLEARING ALL THE COMPLICATIONS STEP BY STEP TO REACH THE ULTIMATE GOAL OF TOUCHING THE TARGET TO COMPLETE 7.52 LAKH HOUSES IN JUST ONE YEAR AND SETTING A GOAL OF ANOTHER 6.06 LAKH HOUSES FOR THE COMING YEAR 2010-11. M SAMUEL, PRINCIPAL SECRETARY TO GOVERNMENT, HOUSING SPEAKS TO AMGUTH R AJU ABOUT THE PERFORMANCE OF THE DEPARTMENT AND THE ACTION PLAN FOR THE YEAR. What is the significant objective of Housing department and how do you evaluate the performance during the past one year? Building a good house in a life time is a dream of every individual, but realising this dream is not as easy as it is dreamt. It is surely a distant dream for a majority of the population. In a country like India where millions of people are reeling under acute poverty, even to dream of owning a house is a distant thought in the present context of rising costs. But, the State and Central governments have been trying to come forward with solutions to provide shelter for one and all. Taking forward the same objective, the housing department is striving tirelessly to achieve the set targets and we have been able to achieve many successes in our endeavour, but there is more to be done and I am sure we will achieve all set targets. During the past one year, under Indiramma Housing Scheme, the department had achieved the target of completing 7, 52,064 houses with a cost of Rs 2563.70 crore. Under the IAY (Indira Avas Yojana), which is a central government scheme, the housing department had successfully constructed 3, 71,982 houses with an expenditure of Rs 1082.42 crore during the past one year. 108

What is your action plan for the current year 2010-11? The action plan as per the outcome budget is to reach the target of completing 6, 92, 000 houses, out of which 6, 06,000 are rural and 86, 000 are urban houses. From the allocated target, the government had allocated 1, 12,104 houses for SCs and 45, 672 houses for STs. During the current academic year, about 47,983 houses have been completed with an expenditure of Rs 11018 lakh. What are your plans for the next two years and what according to you are the major challenges? Our future plan for the housing department is to carry forward all the housing programmes and make them reach their final completion in the next two years. The most important challenge for the department is to find true beneficiaries. Previous surveys showed that out of 28 lakh beneficiaries, so far about 10 percent of them are bogus. Now our challenge is to identify those bogus beneficiaries and retrieve back the entire amount borne by the government. We have already booked and suspended 630 officials who are directly or indirectly involved the scam.

M Samuel, IAS Principal Secretary to government, Housing

DURING THE PAST ONE YEAR, UNDER INDIRAMMA HOUSING SCHEME, THE DEPARTMENT HAD ACHIEVED THE TARGET OF COMPLETING 7, 52,064 HOUSES WITH A COST OF RS 2563.70 CRORE. UNDER THE IAY, THE HOUSING DEPARTMENT HAD SUCCESSFULLY CONSTRUCTED

3, 71,982 HOUSES WITH AN EXPENDITURE OF RS 1082.42 CRORE DURING THE PAST ONE YEAR. 2010

Tourism HISTORIANS DATE LIFE IN THE ANDHRA AREA TO THE PALEOLITHIC AGE OF SOME 3,00,000 YEARS AGO. OF COURSE, RECORDED HISTORY POINTS TO EXISTENCE OF SOCIETIES AS EARLY AS THE

BC IN THE KRISHNA AND GODAVARI VALLEYS, BUT EVEN WITH SIXTH CENTURY

SUCH A LONG EXISTENCE CARRYING A HUMUNGOUS TREASURE OF RICH CULTURE AND HERITAGE ALONG WITH NATURAL HOTSPOTS, TOURISM SOMEHOW FINDS A BIT NEGLECTED.

PROBABLY

PRIORITIES ARE DIFFERENT FOR EACH STATE AND

ANDHRA PRADESH, AGRICULTURE, IRRIGATION, EDUCATION, HEALTH…AND RIGHTLY SO. BUT STILL THE TOURFOR

PRIORITY IS

ISM DEPARTMENT AND THE MINISTRY HAVE TRIED THEIR BEST TO GET THE BEST OUT OF THE REGION.

he state of Andhra Pradesh is now going in for a new state tourism and culture policy. The Department of Tourism and Culture have already prepared the draft and sent to various departments concerned for their approval. The present policy under implementation pertains to 1998 and there was a need for revision due to time gap and prudent ﬁscal management. The Chief Minister had held a detailed review of the projects and issues

110

concerning the tourism department, APTDC, Shilparamam, Department of Culture and National Institute of Tourism and Hospitality Management with minister & ofﬁcials. It was decided to establish two more Shilparamams at Sangareddy (Medak) and another in Khammam district (at Khammam or Bhadrachalam). The Chief Minister also agreed to name the Shilpa Sandhya Vedika (Night Bazaar) at Shilparamam, Hyderabad as YSR Shilpa Sandhya Vedika. It was the 2010

brainchild of the former Chief Minister Dr Y S Rajasekhara Reddy. This will be a night bazaar with shopping malls and food courts and will be open till 3 am.

Okayed the establishment of a Parking Plaza cum-Budget Hotel at Shilparamam in Hyderabad in two acres to overcome the acute parking shortage.

The meeting also decided to promote medical tourism, ďŹ lm tourism, convention tourism and heli tourism in the State by developing all tourist spots and

While India received 0.527 million domestic tourists arrivals and 5.08 million International tourists, Andhra Pradesh received 0.127 domestic tourists and

infrastructure facilities. There is also a proposal to develop a Brindavan-type garden at Nizamsagar.

0.76 million international tourists. Tourism provides 10 percent of the overall employment.

The Chief Minister will also write to the Government of India on the starting of Southern Splendour. The Tourism Department will also be given more police force to start the â&#x20AC;&#x2DC;Tourism Policeâ&#x20AC;&#x2122; in all the important tourism spots. Water bodies at Jalayagnam will also be developed as tourist spots in all the important projects. The Chief Minister also

Andhra Pradesh holds the 1st position in the domestic tourism, but fell back in the international tourist arrivals. There was good growth of tourism in Tirupati and Vizag and moderate growth in Hyderabad. The Chief Minister felt that since tourism provides large-scale employment there is every need to encourage it.

2010

111

nent place in the tourist circuits within the country and abroad. The state is also putting all efforts to develop its 1000-km long coast line (this is the longest coastline for any State in the country) as well as its famous pilgrim centres at Tirupati, Srisailam, Bhadrachalam, Annavaram, Simhachalam etc so as to attract more foreign tourists to visit these heritage/ pilgrimage places.

Projects

Employment-intensive projects

“TOURISM IS AN INDUSTRY WHERE THERE IS VAST SCOPE FOR EMPLOYMENT OF SKILLED PROFESSIONALS, UNSKILLED WORKERS AND ILLITERATE PEOPLE.

HENCE WE SHOULD DEVELOP TOURISM AS A PRIORITY SECTOR IN

STATE. I AM TOLD THAT JUST RS.10 LAKH THE

Dr. Rosaiah has asked the State Tourism Department and A.P. Tourism Development Corporation to prepare a master plan for employment-intensive projects to achieve the twin objectives of promoting tourism and creating huge job opportunities. “Tourism is an industry where there is vast scope for employment of skilled professionals, unskilled workers and illiterate people. Hence we should develop tourism as a priority sector in the State. I am told that just Rs.10 lakh investment creates 78 jobs in tourism while it is only 18 jobs in other industries. Taking advantage of this, we should promote job-oriented tourism projects wherever it is feasible”, said the Chief Minister.

INVESTMENT CREATES

78 JOBS IN TOURISM WHILE IT IS ONLY

18 JOBS IN OTHER INDUSTRIES. TAKING ADVANTAGE OF THIS, WE SHOULD PROMOTE JOB-ORIENTED TOURISM PROJECTS WHEREVER IT IS FEASIBLE”

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Andhra Pradesh Government plans to conduct tourism road shows throughout the country and in other major cities of the world to attract tourists and the Chief Minister gave his green signal to a proposal put forth in this regard. The Chief Minister agreed to another proposal to observe next year as “Visit Andhra Pradesh” year offering many attractive tourism packages, cultural extravaganza with special focus on foreign and domestic tourists. Dr. Rosaiah said the Government was ﬁrm on giving tourism sector its due importance for ensuring that the State earned a perma-

A.P. Tourism Development Corporation and Department of Tourism are implementing 35 projects with funds from Government of India and State Government worth Rs.269 crore. Major projects among these are Buddhist theme park at Nagarjuna Sagar, Budget Hotel at Nizamabad, Star Hotel at Shilparamam, 4-Star Hotel at National Institute of Tourism and Hotel Management (NITHM), Hyderabad; Development of Charminar Area; Night Bazaar in Shilparamam; Institutes of Hotel Management at Tirupati, Vijayanagaram & Srikakulam Circuit; Kolleru lake Development; Resort & Golf Course at Idupulpaya-Kadapa Pilgrim Circuit, Tirupati Pilgrim Circuit, etc. Private investors and operators expect from the Government handing over of the land, investment subsidy (single ﬁnancial support @ Rs. 20 lakhs for investment up to Rs. 5 crores; Rs. 30 lakhs for investment above Rs.5 crores and Mega projects above Rs.50.00 crores, Heritage Hotels & Priority areas like coastal, water bodies, rural, eco, adventure tourism projects get additional 5%.) and of course Single Window Clearance for the projects. In view of the recession, there is a request for continuing other incentives like stamp duty exemption, power rebate etc. by the investors and operators. The Chief Minister mooted proposals for converting R&B Guest Houses in the district head quarters., into a Chain of Budget Hotels and promotion of Hyderabad as Convention and Medical Tourism Capital of the country. These measures, according to the Chief Minis2010

ter, will be in line with the State Government’s target to mobilise investments to the tune of Rs.1,500 crore in future. The Chief Minister felt that the awareness about the richness and diversity of Andhra Pradesh has not been to the desired level and hence, there should be a sustained campaign for at least 2 years besides celebrations like “Visit AP/Hyderabad Year” and Yearly Media Plan to be put in place. He said there should be multiple approach like Media (press & electronic); domestic & international Trade fairs, Direct marketing through Agents. There is a need to involve best professional agencies.

Heritage Sites The Andhra Pradesh government is making efforts to develop the Kakatiya monuments in Warangal district as World Heritage sites. A steering committee headed by Tourism Minister J. Geeta Reddy has been constituted for the purpose. The action plan to preserve and renovate three Kakatiya monuments - Ramappa temple in Venkatapur mandal, Thousand Pillar temple in Hanamkonda and the Warangal Fort is under consideration. The steering committee would meet once every three months to review the progress of the work and prepare a dossier to be submitted to UNESCO for declaring the monuments World Heritage sites. The meeting discussed public private partnership model for building restaurants and cottages and for reconstruction and renovation of Ramappa temple.

will provide drinking water facility for tourists. Food courts, swimming pools, cottages and watch towers will be constructed. At present, the APTDC is managing a hotel in the beach but it is unable to meet the requirements of the tourists. In order to develop the beach they have to acquire nine acres of land.

PPP After tasting success with the publicprivate partnership (PPP) mode-based tourism projects in the State, the Andhra Pradesh Tourism Ministry is planning a chain of budget hotels in all the district headquarters in the State. Ofﬁcials in the State Government and Tourism Department believe that there is “untapped potential” for quality basicamenities hospitality. The demand-supply gap in this sector can be bridged by encouraging PPP projects in the State, according to Geetha Reddy. The Tourism Ministry had offered around 33 projects for development under the PPP mode, so far. Among those who had signed MoUs with the State, 18 projects have been completed. Two more hospitality projects - one at Jubilee Hills and another in the beach city of Visakhapatnam - will be ready later during the year.

THE ANDHRA PRADESH GOVERNMENT IS MAKING EFFORTS TO DEVELOP

K AKATIYA MONUMENTS IN WARANGAL DISTRICT AS WORLD HERITAGE SITES. A THE

STEERING COMMITTEE HEADED BY TOUR-

MINISTER J. GEETA REDDY HAS BEEN

ISM

CONSTITUTED FOR THE PURPOSE.

THE AC-

TION PLAN TO PRESERVE AND RENOVATE THREE

K AKATIYA MONUMENTS - RAMAPPA TEMPLE IN VENKATAPUR MANDAL, THOUSAND PILLAR TEMPLE IN HANAMKONDA AND THE WARANGAL FORT IS UNDER CONSIDERATION.

Suryalanka Beach Suryalanka Beach in Guntur district will soon be developed. The Andhra Pradesh Tourism Development Corporation (APTDC) is planning to develop the beach at a cost of Rs 6 crore. The Central government has sanctioned Rs 5 crore for the development of beach and the remaining Rs 1 crore will be borne by the state government. The Central government directed the APTDC to submit proposals for the development of the beach. The APTDC proposed to develop infrastructure including roads up to the beach and it 2010

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Rural Development FOR THE YEAR 201011 THE ANDHRA PRADESH GOVERNMENT HAS PROVIDED

RS.2452.72 CRORES UNDER RURAL INFRASTRUCTURE DEVELOPMENT FUND (RIDF) FOR THE CONSTRUCTION OF RURAL ROADS.

APART FROM DEVELOPING INFRASTRUCTURE, THE DEPARTMENT IS ALSO SUCCESSFULLY IMPLEMENTING THE VARIOUS WELFARE PROGRAMMES SUCH AS NATIONAL RURAL EMPLOYMENT GUARANTEE PROGRAMME (NREGP), WATERSHED PROGRAMME, AND RENOVATION OF TANKS, PROVIDING PENSIONS TO THE POOR AND SUPPORTING

SELF HELP GROUPS (SHGS) THROUGH BANK LINKAGES. ALL THESE ACTHE

TIVITIES PLAY A VITAL ROLE IN ALLEVIATING POVERTY AND ENABLING BETTER LIVING STANDARDS IN THE RURAL AREAS.

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he priority for Rural development is gaining prominence by the successive governments in the state and center every year. Employment is another major focus area of the government especially in the rural areas. The slowdown in the economy would have really hit the common man, if it were not for the governments effective public distribution system and the Stateâ&#x20AC;&#x2122;s exemplary performance in the National Rural Employment Guarantee Programme (NREGP).

Andhra Pradesh has emerged as a role model in the implementation of National Rural Employment Guarantee Programme (NREGP). The social audit programme being implemented in the State as part of National Rural Employment Guarantee Programme (NREGP) has received wide acclaim. Apart from providing wages to the workers, National Rural Employment Guarantee Programme (NREGP) has contributed towards creating valuable 2010

productive infrastructure in the rural areas. Under the scheme, an estimated 1.15 crore job cards have been issued in all the districts. “So far, an expenditure of Rs.8182.30 crores has been incurred under this scheme. Average wage paid per person per day is Rs.85.54 and equal wages are being paid to men and women. The proposed outlay under State share for this scheme in the

includes 44.33 lakh old aged persons, 1.50 lakh weavers, 17.44 lakh widows and 8.25 lakh disabled persons.

2010-11 budget is Rs.300 crores.” said, A. Murali, Director, NREGS, Government of Andhra Pradesh.

Women Empowerment

Pensions One of the extraordinary achievements of the government has been its Social Security pensions programme to the old aged, widows, disabled, etc., on a saturation basis. This is the biggest programme in the country. So far, 71.52 lakh persons are being beneﬁted under this scheme. This 2010

Government has decided to extend the pension scheme to the AIDS patients. An amount of Rs.1932 crores has been proposed for this programme in 2010-11 budget.

Andhra Pradesh government is giving top priority for empowerment of the poor by providing them easy access to credit from banks, through the Pavala Vaddi Scheme under Indira Kranthi Patham Programme (IKP). Under this scheme, so far an incentive of Rs.527.08 crore has been provided to 25.60 lakh SHGs. Bank lending to SHGs has rapidly increased from Rs.197.70 crores in 2001-02 to Rs.6,649.44 crores in 2008-09. The government 115

in the village, Mandal and district levels. In every village, the village Mahila Samaikhya have been sanctioned with a permanent building at a cost of Rs 2 lakh per building, at the Mandal level Rs 10 lakhs have been sanctioned for the construction of Mandal Mahila Samaikhya building at each Mandal head quarters and Rs 50 lakh have been allocated for a Zilla Mahila Samaikhya at the district level. Apart from this, the SHGs are actively involving in various activities such as milk procurement, grain procurement from farmers, distribution of pensions etc. The SHGs are distributing pensions in the villages, about Rs 70 lakhs are being distributed every month.

ONE OF THE EXTRAORDINARY ACHIEVEMENTS OF THE GOVERNMENT HAS BEEN ITS

SOCIAL

SECURITY PENSIONS PROGRAMME TO THE OLD AGED, WIDOWS, DISABLED, ETC., ON A SATURATION BASIS.

THIS IS THE BIGGEST PROGRAMME IN THE COUNTRY.

SO FAR,

71.52 LAKH PERSONS ARE BEING BENEFITED UNDER THIS SCHEME.

is aiming to make each SHG member a â&#x20AC;&#x2DC;LAKSHADHIKARIâ&#x20AC;&#x2122; by 2015-16. The government had propose to allocate Rs.200 crores towards interest subsidy for self help groups during the year 2010-11 budget. With a view to provide income security to women in their old age, the Government has also introduced Dr. YSR Abhaya Hastham scheme which is a co-contributory pension cum Insurance Scheme for the SHG women who are above the age of 18 years living both in rural and urban areas. Under this scheme, the women members are expected to contribute a sum of Rs.365 per annum to the fund, with the State Government also contributing an equal amount. The members will be entitled to a minimum pension of Rs.500 per month upon completion of 60 years of age along with insurance coverage. So far, 41 lakh members have been enrolled and Rs.15 crores is distributed to 3 lakh pensioners every month. An amount of Rs.220 crores is proposed to be allocated for this scheme in 2010-11 budget. In order to facilitate better functioning of SHGs in the villages the government has sanctioned Mahila Samaikhyas

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They have also undertaken insurance activities; currently under Indira Jeevitha Bheema (Aam Admi Jeevita Bheema) the government has enrolled 38 lakh landless agricultural laborers those who are in the women groups. This year, 42 lakh women members are added with their spouses and children under Janani Surakhsa Jeevitha Bheema. Altogether 80 lakh members would be covered under insurance in the state. The educated youth are enrolled for providing proper training to develop the skills and thereby availing them job opportunities through the SHGs. During the past 3 years the government has generated 1.19 lakh jobs in the village. It is targeting to provide about 2 Lakh more job opportunities to the rural people in the coming one year. Rs 6000 have been spent on each individual for imparting training. In order to provide quality education to the children of women members in the rural areas, children who passed SSC with highest marks are getting an opportunity to be enrolled into IIITs and those who get a little less marks are being selecting and placed in top junior colleges such as Narayana and Sri Chaitanya for long-term intermediate courses. 2010

With this facility the students are getting an opportunity to get place in IITs or EAMCET coaching. This programme has been taken up on a wider scale in the most backward district of Mahabubnagar, Adilabad, and Ananthapur. The entire fee and other expenses like boarding, lodging, books, cloths etc are borne by the government exclusively. The main motto of this programme is to alleviate poverty in the rural areas as better education will enable better jobs in the future. The government has also taken up the watershed programmes. So far under water programme 10000 watersheds have been sanctioned to the state. Out of which 5000 have already been completed and another 5000 are in the different stages of completion. Under this programme each village will be given Rs30 lakh. And the allotted money is to be spent in the 5 years. The main aim of the watershed programme is conservation of moisture and soil. Soil fertility always lies in the top soils, i.e. 6 inches of top soil. Whenever there is a heavy down pour the top soil is washed away resulting in erosion of fertile soil. To create this 6 inches top soil it takes 150 years. Thus in order to avoid the soil erosion the bunding programme is taken up on an extensive way.

The Horticulture programme is implemented successfully with 100 percent subsidy in the state. So far under the Indiramma Cheruvulu 12000 tanks have been taken up among which 4000 tanks are completed so far. In the next coming year the remaining 8000 tanks will be completed with an expenditure of Rs 1000 crores. In horticulture, last year 1.30 lakh acres have been taken up for plantation and this year the government is planning to expand the plantation area up to 2 lakh acres.

WITH A VIEW TO PROVIDE INCOME SECURITY TO WOMEN IN THEIR OLD AGE, THE

GOVERNMENT HAS ALSO INTRODUCED DR. YSR ABHAYA HASTHAM SCHEME WHICH IS A COCONTRIBUTORY PENSION CUM INSURANCE FOR THE

SCHEME

SHG WOMEN

Rural roads

WHO ARE ABOVE THE

Recently, the Andhra Pradesh government has taken up improvements of Rural Roads carrying low density trafﬁc in the year 2009-2010 with assistance from National Bank of Agricultural and Rural Development (NABARD).

AGE OF

So far, NABARD has sanctioned 2035 Road and Bridge works costing Rs.2452.72 crores under Rural Infrastructure Development Fund (RIDF), out of which 1829 Road and Bridge works costing Rs.1991.31 crores have been completed. Remaining works are under various stages of construction.

TO CONTRIBUTE A SUM

18 YEARS LIVING BOTH IN RURAL AND URBAN AREAS. UNDER THIS SCHEME, THE WOMEN MEMBERS ARE EXPECTED

RS.365 PER ANNUM TO THE FUND, WITH THE STATE GOVERNMENT OF

ALSO CONTRIBUTING AN EQUAL AMOUNT.

Recently the government of India has modiﬁed the watershed guide lines. Previously one watershed allocated to a village would cover only 500 hectares, with the new guide lines this has been enhance to 5000 hectares. This enhancement will give a real understanding of the impact of watersheds in conserving the water and soil. The Rural Development department of Andhra Pradesh has two wings, DRDA and DWMA. The DWMA deals with watersheds, NREGP, CLDP—land development programme. Under NREGP the other activities such as Indiramma Cheruvulu and Horticulture programme are carried on. 2010

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Empowering the Manpower QUALCOMM INDIA PVT. LTD HAS BEEN RANKED FOR THE FOURTH CONSECUTIVE YEAR IN THE LIST OF ‘INDIA’S BEST COMPANIES TO WORK FOR’, A SURVEY CONDUCTED BY THE GREAT PLACE TO WORK INSTITUTE FOR THE ECONOMIC TIMES. ADDITIONALLY, QUALCOMM HAS ALSO RETAINED ITS RANK AS THE NUMBER ONE TELECOM COMPANY FOR THE THIRD YEAR IN A ROW. THIS DISTINCTION IS THE LATEST ADDITION TO THE IMPRESSIVE LIST OF AWARDS AND RECOGNITIONS THAT QUALCOMM HAS EARNED OVER THE YEARS; AND THE COMPANY OWES IT ALL TO THE ENTREPRENEURIAL AND FREE SPIRITED CULTURE IT HAS INFUSED IN ITS OPERATIONS AND ITS EMPLOYEES.

art of the Global Research and Development team, the Hyderabad centre was started in 2004 and has grown rapidly to become the second largest R&D operation for Qualcomm CDMA Technologies outside of its headquarters at San Diego. The Hyderabad center contributes significantly in areas encompassing wireless modems, multimedia and embedded applications. The centre also hosts a pre-certification lab that enables its customers to test their products against formal type approval and carrier specific acceptance, resulting in faster time to market. The India operation is significant for Qualcomm because of the location. “We are close to many of our key customers in Taiwan, China and Korea. We are also close to many key markets – specifically the emerging, high growth, markets in China and here in India. As such we are able to 118

provide fast and focused support,” said Shashi Reddy, vice president – engineering, Qualcomm’s Hyderabad centre.

Hyderabad Foundations Over the last few years, the Hyderabad center has built strong expertise and competence in many aspects of software development, system integration, product veriﬁcation, commercialization and customer support. Many of the value, multimedia and convergence tier products are predominately supported from here. The staff growth in Hyderabad has been phenomenal for Qualcomm, averaging over 200% a year over the last 5 years. “As you can imagine this brings many challenges to IT and facilities. Yet we’ve faced them and have managed to build a world class development centre with best in class tools and IT infrastructure,” said Mr. Reddy. Commenting on the telecom 2010

market, Mr. Reddy stated, “With 3G auctions being completed and services to be launched by year end, we look forward to many new and exciting development opportunities to meet local and regional needs. We have made signiﬁcant capital investment in our IT and Wireless Lab infrastructure. Our staff here is able to work seamlessly on global projects and programs owing to the dedicated link between US and India ofﬁces” ”

Human Resources Qualcomm recognizes that being sensitive to employee’s needs and preferences is a valuable benefit that can boost retention and an employee’s well-being in general. Our objective is to create a flexible atmosphere which supports employees’ work-life balance. The Q Flex Policy is one such, designed to, in appropriate circumstances, provide employees with flexible work schedules, alternative work schedules, or telecommuting options. At Qualcomm, there is a vacation donation program which allows co-workers to donate vacation time within a certain limit to an employee in the event of a catastrophic personal circumstance faced by the employee. This program has been especially helpful in the past for employees needing to take an extended leave due to sickness or compelling personal situation.

Rewarding Performance People, who are exceptional performers and add value to their job; who take initiatives and deliver on results that shoulder additional responsibility and venture outside the deﬁned work purview are the ideal employees that every organization vies for. These employees are not only recognized and rewarded, but valued as well.

New Avenues of Learning Qualcomm believes it is important to have the ability to seamlessly provide access to resources and tools, learning and development opportunities irrespective of geographical location. They achieve this through online collaboration tools, online learning, access to online reading of articles/ publications etc. The company also offers a wide range of online courses to increase the understanding of various CDMA and 3G technologies. Their annual event QTech Forum, spread over three days, is an assimilation of people to share key technology ﬁndings, best practices and industry innovations. Reddy elaborated, “Qualcomm Technical Education Network is a central source of technical learning and development resources, available in a variety of formats. It is designed to help engineers quickly prepare for new critical project assignments. Content is driven by Qualcomm-speciﬁc engineering standards and priorities.”

Empowering Employees Qualcomm prides itself on having an open-door policy, where employees have access to their superiors and senior 2010

Shashi Reddy, Vice President – Engineering, Qualcomm’s Hyderabad centre management. They encourage leaders to be in constant communication with their teams. By creating and fostering an engaging work environment, they are able to empower employees to make decisions and take steps to repeatedly provide the best quality of services, within the company, and to the clients. All employees are involved in the longterm strategy planning for the business and are then empowered in their individual roles to make it happen. For any major decision, the entire team is engaged and their views solicited for business or any other aspect like community giving initiatives.

Achievements Qualcomm won BWA spectrum in the 2.3 GHz band in four telecom circles in India – June 11, 2010. Qualcomm, Room to Read, Nepal Telecom and S-Fone established computer labs with 3G Internet connectivity in rural schools in Vietnam and Nepal – October 26, 2009. Qualcomm announced collaboration with the Indian Society of Agribusiness Professionals (ISAP) and United Villages Networks (P) Ltd. (United Villages) to empower rural markets through the vBay mobile application – September 2, 2009 . Qualcomm and Azim Premji Foundation announced an initiative to advance web-enabled educational content and provide wireless broadband access to certain rural and government-run schools in India – September 2, 2009. MTNL and Qualcomm announced that they will work together on a technical audit of MTNL’s 3G network aimed at enabling superior experience for MTNL’s 3G services – September 2, 2009. Qualcomm’s current intellectual property portfolio, as of March 2010 includes ~71,800 patents and applications for wireless technologies 119