Prospectus For AP by PWC

INVESTMENT OPPORTUNITIES
FOR UK INVESTORS IN A21C

AMARAVATI - THE 21st CENTURY CAPITAL
ADVANTAGE INDIA
ONGOING ECONOMIC LIBERALIZATION STABLE FINANCIAL SYSTEM
IMPETUS ON INFRASTRUCTURE
COMPETITIVELY PRICED SKILLED LABOUR
DEVELOPMENT
ACCESS TO TECHNOLOGY
HIGH-YIELDING CAPITAL MARKETS
AS A RESULT OF IT REVOLUTION
WHY INVEST IN INDIA ?
A STRONG ECONOMY AND ENABLING BUSINESS

ENVIRONMENT
India is ranked as the most attractive investment destination, ahead of Brazil & China1
Indias GDP at PPP is the 4th largest in the world, growing at a CAGR of over 8%2
Advantage India
India ranks 2nd most promising country for overseas business operations in the
medium term3
Indias rank jumped 12 positions in the Ease of Doing Business list by the World Bank
|
India moved 16 places in the Global Competitiveness Index4

4
5th largest consumer market by 2025 according to the World Bank
TOTAL FDI FLOW [in bn]

CAGR - 22%
29
2004-05 2014-15(P)
Source: DIPP Factsheet on FDI (April00 to Mar15)
Source: 1 Ernst & Young Attractiveness Survey 2014

2 IMF
3 JBIC survey report on Overseas Business Operations by Japanese Manufacturing Companies, 2013
4 Global Competitiveness Report 2015 -16
HIGH SAVINGS & INVESTMENTS LARGE FDI INFLOWS
ABUNDANT NATURAL RESOURCE ENABLING BUSINESS ENVIRONMENT
WORLDS LARGEST DEMOCRACY GROWING & STABLE ECONOMY
ONE OF THE MOST ATTRACTIVE COUNTRIES FOR FDI
India ranked 3rd among the top-priority FDI host economies for 2013 - 151
Month on Month FDI equity inflows have increased 40% between

April and December 2015 compared to the same period in 20142
Advantage India
Increase in foreign investments shows the renewed confidence in the
economy and the new government
Share of telecommunications, trading, automobile and computer software

and hardware has shown an increasing trend in Indias FDI
|
5
KEY SECTORS ATTRACTING INVESTMENTS IN INDIA
25% 28 [APRIL 2000 - MARCH 2015]
Cummulative (in bn) FY 2012-13 FY 2013-14 FY 2014-15
20% Source: Sterling Assets India UK Investment creating Indian Jobs
15% 16
10% 11 10 9 8
7 6
6
5%
6 5
6
0%
Services
Construction
Development
Telecommunications
Computer
Software / Hardware
Drugs &
Pharmaceuticals
Automotive
Chemicals
Power
Metallaurgical
Trading
Source: 1 UNCTADs World Investment Report, 2013

2 DIPP
THE UK and India
A winning
Relationship
THE UK and India A winning Relationship
A Strong economic partnership
The economic partnership between India and the UK is powerful -

India already invests more in the UK than in the rest of the EU combined,
and the UK is the largest G20 investor in India
About 31% of the jobs generated from British investments are

in the services sector
60 FDI in India by G20 nations,

April 2000-March 2015 (in bn)
48.04
50
A winning Relationship
40
35
20 14.43
11.9
|
8.91
8
10 4.94
2.93
0
United Japan USA Germany France G20
Kingdom Total
Employment generated by foreign affiliates
137,400 UK
130,400 JAPAN
112,300 US
61,800 GERMANY
37,900 FRANCE
Source: 1 Sterling Assets India UK Investment creating Indian Jobs

2 Sterling Assets India UK Investment creating Indian Jobs
India and THE UK share a long history of
economic engagement
Key sectors attracting UK investments

(April 00-Mar15)
Others Chemical
19% 26%
Petroleum &
natural gas
11%
A winning Relationship
Drugs &
Services
Pharmaceuticals
14%
17%
Food Processing
13%
|
British investment in India is led by Chemical sector, which contributes
9
26%, followed by the Drugs & Pharmaceuticals and Food Processing
industries, which attract 17% and 14% of total British Investment respectively
Services are also a key source of investment in India
British Companies Operating in India
Chemical Drugs & Food Services Petroleum & Others

Pharma Processing natural gas
Source: 1 Sterling Assets India UK Investment creating Indian Jobs

The Sunrise State
Why INVEST IN
Andhra Pradesh
Andhra Pradesh The sunrise State
A Snapshot
The Sunrise State is one of the fastest growing states in India and a credible
investment destination
The Sunrise State
ANDHRA PRADESH
GSDP (2014-15)
12 |
54 bn
13 districts with 160,309 sq. km - the 8th largest state in the country
The10th most populous state, with a population of 49.39 million (as per
2011 census)
Deep draft ports along the 2nd largest coastline of 974 km provides
opportunity to be part of Global Production Network
3rd place in the Economic Freedom (CATO) Index for States in India
3rd most visited state for tourists in India
4th best for its legal structure and security of property rights
The state is agriculturally prosperous
Rich natural resources and human capital
To be the most preferred logistics hub and Indias gateway to East

and Southeast Asia by 2029
Physical infrastructure
THE Backbone of development in the state
Power
1st state in south India to offer 24x7 power to industry
Generating capacity > 9,600 MW
Total capacity growth of 35,000 MW in the short term, of which

18,000 MW in renewable energy
Focus on green energy projects
Connectivity
Ports 6 under operation (handling 142 million tonnes per annum

cargo), 6 under development and 4 planned
The Sunrise State

Airports - 6 existing, 1 mega Aerotropolis and 5 no-frills airports
to be developed
Road Network 45,000 km, including 4,423 km. of National Highways
13 |
Railway - 7,040 track km of network
Inland Water Transport 888 km National Waterway - 4
Land
Existing land bank of 300,000 acres, adding further 700,000 acres,

total planned land bank of 1 million acres
GIS - enabled online land bank information
Affordable land rates
Land given on 99-year lease
Large area industrial developments
Petrochemicals and Petroleum Investment Region, Chennai-Bengaluru

Industrial Corridor and Vizag Chennai Industrial Corridor are being
planned
Two National Investment Manufacturing Zones are planned

A Proactive and stable government
Key achievements of the government
1st link in the national water grid to be completed in a record

time of 5.5 months, connecting the Godavari and Krishna rivers
1st in India to hold a paper free e-cabinet
1st state in India to announce Retail Policy
1st State in the country to formulate a Start Up Policy and

inaugurate the Sunrise Start-Up Village
One of the most innovative plans for urban development India

has attempted Procured 33,000 acres of prime land for the
capital city project using land pooling
Within 100 days of government (2nd October 2014), Andhra

Pradesh achieved the zero power cuts milestone The power
deficit in the state has been brought down from 22 million units
per day to zero
The Sunrise State
E-Pragati - Andhra Pradesh is the 1st state in India to conceive

and execute a state-wide enterprise architecture
Andhra Pradesh received the most competitive bid for a solar

park of 500 MW bundled with thermal power at a record
14 |
low sale price of Rs. 3.5 a unit
AP aims for sustainable double digit growth
GSDP growth rates of AP (at constant prices)

15.00%
2016-17
(Target)
10.50%
2015-16
8.39% (Apr-Dec15)
7.16% 2014-15
2013-14*
4.05%
2012-13*
*combined state of AP
Ease of Doing Business
Andhra Pradesh is one of the foremost states in creating a conducive business

environment - its considered as an aspirational leader in the country
2nd rank amongst Indian states, marginally behind the best state
(DIPP-World Bank rankings, September 2015)
Single desk portal (identified as best practice)
All approvals to set up a new business can be obtained in 21 days
Online tracking of Investments
Investment facilitation officers
Country desks for strategic partners
Fully online system for legal registrations and renewals

Web-based advance query system to identify industrial land,
The Sunrise State

connectivity and infrastructure
Area of assessment
15 |
National average Andhra Pradesh
Ease of setting up 32%

a business 79%
Land allotment and obtaining 35%

construction permit 62%
Environmental procedure 32%

compliance
85%
Labour regulation 34%
compliance 75%
Obtaining infrastructure 32%

related utilities 60%
Registering and complying 49%

with tax procedures
91%
19%
Carrying out inspections
62%
Source:http://indiainbusiness.nic.in/newdesign/upload/State
AssessmentReport_14September2015.pdf
AN Enabling regulatory framework
and policy environment
Government of India
Section 94(1) of the Andhra Pradesh Reorganisation Act, 2014 lays down
a clear mandate for the central government to provide appropriate fiscal
measures to Andhra Pradesh
15% additional depreciation and investment allowance has already been

announced for industries in AP
Sectoral state policies with incentive framework
Aerospace &
The Sunrise State
Auto & Auto Textile & Biotechnology &

Defence
Components Apparel Pharmaceutical
Manufacturing
Food IT & Industrial

Tourism
Processing Electronics Parks
16 |
Agricultural Innovation
Retail Policy MSME
Marketing Policy & start-ups
Civil
Solar Power Wind Power Port
Aviation
Key incentives under sectoral policies
Power cost subsidy Reimbursement of CST/VAT/

SGST/Stamp duty
Interest subsidy Capital subsidy
Patent Cost/ Quality certification cost Marketing incentives
Incentives for skill development

Direct Tax incentives THE best in India
Specified units at AP
Till 31 March 1 April 2017 to Post 31 March

Particulars
2017 31 March 2020 2020
Section 32(1)(i) 15% 15% 15%
Additional Depreciation u/s

35% 35% 20%
32(1)(iia)
The Sunrise State

Investment Allowance - Section
32AC (investment exceeding INR 15% - -
25 crs)
17 |
Additional Investment
Allowance -Section 32AD
15% 15% -
Total allowance 80% 65% 35%
Employment linked
30% of additional wages paid to the new regular
deduction u/s -
workmen exceeding 50, available for 3 years
Section 80JJA
*Additional depreciation and additional investment allowance under section 32AD available to notified backward
regions of AP for investment in the specified period. CBDT Notification awaited on notified areas. As per media
reports, Rayalaseema and North Costal Regions are expected to be notified.
Amaravati
An Opportunity
for UK investors
Amaravati THE Peoples capital
of Andhra Pradesh
The largest green field city

development in modern times
Andhra Pradesh (AP)

Srikakulam
Vizianagaram
Visakhapatnam
East
West Godavari
Godavari
Krishna
Guntur
Peoples capital of Andhra
Kurnool Prakasam CAPITAL REGION
Anantapuram Nellore
Kadapa
Guntur
Chittoor
20 |
Krishna
CAPITAL
CITY
Source: Draft detailed Master Plan of Capital City Amaravati
Notified as the capital city of Andhra Pradesh on December 30, 2014
Greenfield area of the capital city is located in Guntur District on the banks
of River Krishna
Amaravati, the Peoples Capital of Andhra Pradesh, has a vision to be the

pioneer Smart City and economic powerhouse of India, with world-class
infrastructure, and a high livability quotient, as well as environmental
sustainability, and a rich heritage.
EXCELLENT CONNECTIVITY MAXIMISES THE
LOCATIONS ADVANTAGES
Bhavanapadu
Kalingapatnam
Bhogapuram
Visakhapatnam airport
Visakhapatnam (Major Port)
Hyderabad Gangavaram
Rajahmundry Kakinada SEZ Port
Kakinada Deep Water Port
Kakinada Anchorage Port
Nagarjuna Rawa
Sagar Narsapur
Vijayawada
Machilipatnam
Donakoda
Orvakallu Vadarevu
Ramayapatnam 38
Puttaparthi Dagadarthi
0k

m
Kadapa
s
Dugarajapatnam
Tirupati
Bangalore
Chennai
Kuppam
21 |
Existing airport
Captive - Proposed
Capital region
operational port international airport
Operational port Captive - Port under Proposed no-frill

(non-captive) development airport (greenfield)
Port under development Proposed Port Brownfield airport

port
Source: Draft detailed Master Plan of Capital City Amaravati, GoAP reports
The Capital Region lies centrally along the entire eastern coast, and thus has the potential
to be the eastern gateway of peninsular India
Indias key economic centres lie within 300-400 kms
Two of countrys biggest ports, Visakhapatnam and Chennai, are located at the northern
and Southern end of the capital region
Machilipatnam port is located close to the capital region, and has the potential to develop
as an inland trade centre
The capital region is well connected through the road and rail network
Goals and strategies to promote THE
development of peoples capital
The state Government has goals and strategies which will guide Amaravatis
development and offer many different opportunities for collaboration and
investment for British investors
World-class infrastructure
115 kms of public transport corridors by 2050

>650 km of road network by 2050
Jobs & Homes for all

2.5 million resident population by 2050
1.5 million jobs by 2050
Green and clean

22 |
>20% of the capital reserved for Green and Blue

25+ km Public River Waterfront
Quality Living
Parks and public facilities within 5-10 minutes
walking distance
Efficient Resource Management

Flood resistant city towards Net Zero
Discharge
Identity and Heritage

>220 km of Heritage and Tourism Network
using Roads, Metro and Waterways
THE SCALE OF THE Development - A SnAPshot of
Capital Region, Capital City and Seed Area
1 Capital Region
Overall capital region covers

an area of about 8,603 sq. km.

Amaravati
2 Capital City 3 Seed Area
23 |
The capital city covers an area The administrative and commercial hub
of 217 sq. km. of the city spreads over 16.94 sq. km.
Around 80% of the land within the capital city boundary is developable and offers extensive
investment opportunities

Theme based development - A city of NINE cities
Total land 21,702 ha


24 |
Media City Government City Knowledge City

1,980 ha (9%) 1,430 ha (7%) 3,533 ha (16%)
Sports City Finance City Electronics City

1,640 ha (8%) 1,635 ha (7%) 2,677 ha (12%)
Justice City Health City Tourism City

1,477 ha (7%) 2,585 ha (12%) 4,745 ha (22%)
The concept plan proposes, nine themed development cities within the capital city
These cities will act as important socio-economic anchors for the capital city
Amaravatis - core focus sectors:
- IT/IT - enabled services
- Financial services
- Research & Development
- Food and Beverages
- Electronics/hardware
SEED development the FIRST phase
of development
Structure plan for seed development area
Government Convention
Node Centre Iconic Tower
Square
Civic Park
Node Performing centre &
Botanic Garden Node
Art Culture
Centre LEGEND
primary / development
corridor
Gateway primary green corridor

Commercial
Node secondary development
corridor

primary nodes
Commercial secondary nodes

Node
Down Town
Node
tertiary nodes
Commercial activities waterfront

aNode
25 |
Translating the concept plan into SEED Development Structure Plan:
Maximizing the potential of Transit Corridors: SEED development is connected to the rest
of the city via two mass rapid transit (MRT) corridors
Transit Oriented Development Nodes: The MRT stations within SEED form the commercial
transit oriented developments (TOD). The primary nodes are:
Amaravati Downtown The commercial heart of the city
Amaravati Gateway Gateway to the city and the SEED development
Amaravati Government Core This will house the three civic arms of the state
Creating identity and sense of place through landmarks
Seamless connectivity and integration
Activating the waterfront
The Seed Masterplan is proposed to create 600,000 jobs and accommodate 300,000 residents
THE UK AND
Andhra Pradesh -
OppORTUNITIES for
Collaboration
THE UK and Andhra Pradesh
Opportunities for collaboration
THE Government of Andhra Pradesh

focus areas for growth
The government of Andhra Pradesh has five focus areas to drive the states growth,
which offer many different oppertunities for collaboration and investment for
UK investors
Opportunities for Collaboration
1 Infrastructure development
28 |
2 Manufacturing
3 Services
Opportunities for Collaboration

29 |
4 Skill development
5 Project Development and financing

1
Infrastructure
Development
Infrastructure Development
INFRASTRUCTURE DEMAND IN THE CAPITAL CITY WILL BE

DRIVEN BY THE Migration of Government and
associated staff in THE short term and economic
development in THE long term
4.5 Master plan Realistic scenario

4.0
3.5
15,000 of the governments one
3.0 million employees are expected
2.5 to move to the new capital city by
2.0 2016.
1.5
1.0
0.5
0.0
16 17 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 034 035 036 037 038 039 040 041 042 043 044 045 046 047 048 049 050
20 20 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Master plan Scenario based on the urban planning design of the city
Realistic Scenario Based on the current social-economic developments in the region and
proactive leadership
Amaravatis population is expected to grow fast in the short term due to

a) the movement of government employees from Hyderabad to the Capital city
b) employment generation from economic activity around the capital region
Over 0.4 million jobs in the short term (2020) and 2.7 million in the long term
(2050) are expected to be generated in the Amaravati city
32 |
% of incremental jobs by 2050
Government Education
4.1% 2.6%
Corporate Industrial
10.2% 8.7%
IT/ITes Indirect
16.4% 43.7%
Financial
14.3%

THERE is High demand for basic infrastructure
development in Amaravati in the short term (2020)
Large-scale support infrastructure needs to be developed as an immediate priority,

due to
a) an exponential increase in the population, and
b) employment generation driven by economic activity
Healthcare
The capacity of the existing facilities in the capital region

is below the global benchmarks - only 0.4 hospital beds
are available for every 1,000 persons against a global
benchmark of 7.
With the migration of government employees to the capital
city and the expected increase in population, healthcare
infrastructure (primary, secondary and tertiary) development
is an immediate priority to cater to the infrastructure gap
Education
The current university student-teacher ratio is 15 as compared
33 |
to 10 (Universities Grants Commission of India)
A population of 15,000 will require at least five new schools,

five higher education institutions and one new university in
the immediate term
Hospitality
There is currently no 5-star hotel in the capital region and only

three 4-star hotels all in Vijayawada
The capital city has a vision to be an economic and tourism

hub and the state has seen an increase in foreign delegates,
investors and tourists which is driving the need for world-class
hospitality facilities
Housing
Over 15,000 employees (out of 10 lakh total) are expected

to move to Amaravati in the next six months, creating an
immediate demand for 15 million sq. ft of residential space
INFRASTRUCTURE development and funding
opportunities for over 21 bn in Amaravati
by 2050
There are 2,579 projects with investment over 20 billion available in Amaravati
by 2050.
Sector wise project opportunities by sector - 2050( m)
Education 5,187
Urban transport 5,163
Commercial 2,462
Health and medical 2,364
Sports and recreation 1,707

Tier-II infra for returnable land 932
Riverfront development 406
Civic and community Institutions 388
Community centers 379
Tier-II infra for government complex 365

34 |
Sewerage treatment 291
Flood management 230
Parks 182
Water supply 175
Village Infrastructure 157
Storm water drainage 145
Power 125
Government housing 110
Smart infrastructure and IT 95
Affordable housing 84
Disaster management 68
Solid waste management 25

INFRASTRUCTURE development and funding
opportunities for over 6 bn in Amaravati by 2020
Investment opportunities over 6 billion in 163 projects are of immediate priority.
Investment No. of
Sector ( m) Projects
Urban transport 3,099 8
Education 378 22
Healthcare 68 14
Sewerage 217 3
Solid Waste 7 1
Power Transmission/
distribution 125 3
Disaster management 3 1
Affordable housing 84 1
Smart infrastructure and IT 19 8
35 |
Flood management 201 8
Water supply 145 5
Other 2,146 89
Total 6,492 163
Other infrastructure development opportunities in Andhra Pradesh are available

in sectors such as ports, airports and industrial development.
OTHER infrastructure DEVELOPMENT opportunities
in the short term (2020)
Project cost
Project name Project capacity (m)
Projects in Amaravati
1 Outer Ring Road 210 km eight lane carriageway with service lanes 2,000
2 Metro line 1 26 km connecting Amaravati to Vijayawada 507

3 Development of Krishna riverfront River training, bund widening, water transport 313
4 Duct utility tunnels 306 km tunnels along arterial roads 245
5 Flood management works Detention ponds, drains, raising city level 230
36 |
6 Waste water collection and treatment 208 MLD plant, 660 km sewerage network 216
7 Water supply system 260 MLD plant, 660 km network and two reservoirs 145
8 Power transmission & distribution 1,000 MW transmission mains, distribution 125
9 Housing for government employees 4.6 million sq.ft in the government city 110
10 Affordable housing 7,000,000 sq.ft 84
For detailed project profiles, please refer Annex-1

OTHER infrastructure DEVELOPMENT opportunities
in the short term (2020)
Project cost
Project name Project capacity (million)
11 Development of industrial zone 140 hectares industrial zone 70
12 City expressways Two expressways of 24 km total, 6 lane carriageway 60
13 Development of University zone 100 hectares of Knowledge city for development 50
14 Convention centre (MICE) To global standards 26
15 Solid waste management 250 tons/day integrated solid waste plant 25
16 Healthcare facilities As per Indian public health standards 23
37 |
Other Projects in Andhra Pradesh
17 Vizag Chennai Industrial Corridor Ports, airports, highways, urban infrastructure etc. 4,243
18 Bhogapuram airport 5,300 acres aerotropolis around Bhogapuram 240
19 National Waterways - 4 888 km, 8 terminals 133
For detailed project profiles, please refer Annex-1

CAPITAL REGION DEVELOPMENT AUTHORITY (CRDA)
Infrastructure development Plan - mainly through
private sector collaboration
Public expenditure
Key government buildings and some of the critical

infrastructure required to meet social responsibilities
will be developed by Engineering, Procurement and
Construction (EPC) contractor
Key projects would include development of government

offices, utility corridors, flood management, and trunk
infrastructure
Public Private Partnership
Construction and O&M of certain infrastructure projects will

be passed on to private partners
Government to retain responsibility for areas such as

regulation and supervision
38 |
Key projects would include development of expressways,

power, solid waste, sewerage, water supply, affordable
housing, healthcare, tourism, and education
Private investors/ Queen Bees
The Government is to demarcate land parcels for

development by private players, to generate jobs and
increase investments
The focus will be on cash-flow generating assets, to

compensate for the private investment
Project Development Options
In Andhra Pradesh, project development options are available across various sectors
offering different levels of return on investments. UK developers could participate in
Public-Private Partnerships and private sector development
Government
Public Private Private project
funded (traditional
Partnerships development
EPC route)
Sectors
Funding through government Funding by private investor. Private sector funding and
budgetary resources Sharing of risks between risk retained by private
government and private investor. Land to be sold by
investors government
Healthcare
Education sector
39 |
Power sector
Urban utilities
Urban transport
Government buildings
Affordable housing
Extremely High Medium Low No

high amenability amenability amenability amenability amenability
2
Manufacturing
Economic Development OPPoRTUNITIES
for collaboration in manufacturing
Focus Industries
Nandigam
pharmaceutical hub
Gannavaram
Value added economic hub
FTZ / SEZ Zone- Auto and IT/
Vijayawada and IT - enabled services
capital city
business and trading
hub
Agro processing,
Electronics, Auto , IT/IT
- enabled services
Gudivada
aquaculture hub
Guntur
agricultural hub
Tenali
manufacturing hub
- Agro processing
42 |
Source: GoAP reports
AP is agriculturally prosperous, and known as the Rice Bowl of India
The state is Indias Largest producer of marine products with 40% share
in the countrys exports
AP is among Indias top manufacturing hubs for bulk drugs and formulations
Though the Amaravati Capital City is greenfield, a number of economic

centres abut the city
Amaravatis focus industries include Food and Beverages,

Pharmaceuticals and Electronics
Food and Beverages
Andhra Pradesh
Sector assessment
Key Indian state for agricultural and forest produce
Largest producer of rice in the country
Ranks 1st in the production of oil, palm, tomatoes, chillies, turmeric and mangoes
Ranks 1st in India in egg production, and has a strong position in milk and meat production
Ranks 1st in brackish water shrimp and fresh water prawn production and 4th in marine
fish production
Growth drivers in the capital region
Rich agricultural production and distinct raw material base
Growing domestic and export demand
The AP government has identified food and beverage as a focus sector and announced
food parks in all districts
43 |
UK
Overview and key strengths of the UK
UK is the world leader in value-added food and drink production and marketing
The food and drink industry is one of the largest of the manufacturing sectors and accounts for 17%
of overall manufacturing
Over 30% of the UKs food and drink manufacturing companies sell their products overseas
Key opportunities for UK investors
Setting up of food processing units across products
Technology upgrading and skill development
Setting up of R&D facilities in food technology

Pharmaceuticals
Andhra Pradesh
Sector assessment
Among the top manufacturing hubs for bulk drugs and formulations
The Pharmacity SEZ, is the first of its kind in the country, developed for the
manufacture of pharmaceutical and bulk drugs with Plug and Play facilities
Development of Petrochemicals and Petroleum Investment Region (PCPIR)

proximity of raw material
Excellent road and rail connectivity, which is key for distribution logistics
24X7 quality power available

44 |
UK
The UK is one of the worlds top global producers of pharmaceuticals which

contributes 15.2bn to the UK economy every year
The health and life sciences markets are predicted to grow 4-10% p.a. over the
next 8-10 years
Pharmaceuticals is the UKs most research-intensive industry, with

expenditure of 4.1bn in 2013
Establishment of Pharma manufacturing plants
Research & Development in Pharma sector

Electronics
Andhra Pradesh
Sector assessment
The Andhra Pradesh Electronics Policy 2014-20 envisages, working with the private sector
to set up a new mega electronics hub, an electronics hardware park and associated facilities
Manufacturing plants of large players like Foxcon and Xiaomi are underway in the state
Rising income levels together with increasing propensity to spend
Governments focus on digitization
Identified as focus sector at national and state level
45 |
UK
The UK is the largest European market for high-end consumer electronics products with about
18,000 UK based companies
40% share of Europes electronics design industry
14 of the worlds top 20 semiconductor companies have established design and/or

manufacturing sites in the UK
Investment in the semiconductor segment Integrated circuits, electronic components etc
Investment in consumer electronics segment across the value chain

3
Services
Financial Services
Andhra Pradesh
Sector assessment
According to the Confederation of Indian Industry, India is poised to become

the 5th largest banking economy in the world
Amaravati has a vision to be a financial services hub
A Finance City is planned on 566 hectares of land in the CBD, housing the
banking industry, trading and financial centres
Growth drivers in capital region

AP leads India in financial inclusion and digital finance over 90% of the
population is covered by Aadhar and 73% by Aadhar-linked bank accounts
Extensive capital-intensive development is planned in AP.

This will drive growth in the banking sector
Abundant skilled labour available in the region

48 |
UK
Over 1,000 international firms own businesses in UK financial services
Financial experience, concentration of expertise and common language with

India.
Robust financial regulatory structure
Setting up financial services units
Setting up development centers for financial technology
Assistance in setting up an International Financial Services Center (IFSC)
Setting up financial education institutions, organizing courses

Healthcare Services
Andhra Pradesh
Sector assessment
According to FICCI, Indias healthcare sector is expected to be 182 bn by 2020
Healthcare is one of the focus sectors of Amaravati city
The Health City is planned on a 1,349 hectare site housing healthcare service
centres, R&D facilities etc.
The state to set up a 200 acres manufacturing park for medical devices
All the government hospitals in the state will get 4.5 million of investment
High demand for healthcare services especially in digital healthcare - the number
of hospital beds and doctors per 1,000 people is much less than global benchmarks
49 |
UK
Efficient centrally funded National Health Service program
Expertise to provide and develop healthcare solutions and systems
Expertise in digital healthcare technology
Local partnerships, licensing and franchising to provide clinical services, and digital healthcare
Setting up centres of excellence to develop healthcare systems
Exchange program for authorities, academicians, students and employees

4
Skill
Development
OPPORTUNITIES for collaboration in
skill development
Andhra Pradesh
Scope for skill development
Over 0.4 million employment to be generated by 2020 in specialized sectors such as IT,
finance, healthcare, food processing, electronics
High volume of construction activities to be undertaken
Large scale skill development required to meet the projected demand
Initiatives by the state
Andhra Pradesh Skill Development Corporation has been set up
Sector specific skill councils to follow
Skill development memorandum of understanding signed with industry leaders

like ATDC, Isuzu motors and IKEA
17 skill development centres operational
51 |
UK
Expertise in skill development
The UKs Department of Business Innovation and Skills invests in skills to promote trade
The British Council conducts vocational and non-vocational training programmes for students
Opportunities in Amaravati
Joint training programmes for employment-linked skill development, and upskilling for teachers
and educators, in line with HSBCs Skill for Life across sectors like Food & Beverages,
Pharmaceuticals, Electronics etc.
Collaborate with Industrial Training Institutes (ITI) and setting up centers of excellence in key sectors

Supporting the state to develop models of skills training
Setting up exchange programmes with academicians, students and employees

5
Project
Development
& Financing
OPPORTUNITIES for collaboration in Financing
and Project development in THE capital city
The City of London could play an important role in channeling investment into infrastructure projects
in Amaravati and Andhra Pradesh, laying the foundation for a long-term strategic partnership that
leverages the capital and expertise of the City of London to finance Andhra Pradeshs continued
rapid growth. There could be several investment routes for UK investors in India.
Investment Options
Limited quantum and long-term borrowing

Sovereign loan
(DFID) Suitable for infrastructure project with long gestation period
Taxable and non taxable bonds for large project financing
Long maturity and back-ended payments
Bond financing
Deep - discount bonds further minimise the amount of interest
repayment in the early years
Under the automatic route, 488 mn can be raised and will be

External classified as debt
commercial
borrowing Regulated by ECB regulations covering issues such as eligible
53 |
borrowers / lenders, all-in-cost ceilings, end-use restrictions, etc.
Intermediate financing tool with limitations on available amount

Takeout financing
Takeout financing with the Indian financing institution could
be explored
Financial support to private companies (incl. JVs of private company

Private sector
with Govt.) in form of loan (long tenor and low interest rate) as well
finance
as equity
Participation in equity holding of a company

Equity - FDI
Regulated by FDI regulations such as sectoral caps, approval
requirements etc.
Annex 1
Project Profiles
1 Development of 210 kilometres of Outer Ring Road
No. Particular Remarks
1 Project need Many major world cities have segregated traffic flows with ring road
and bypass road projects. The city of Amaravati is surrounded by
business centres (Vijayawada, Guntur, Tenali, Nuzvid etc.) which have
further connections to the important industrial zones and business
areas in Bangalore, Chennai and Hyderabad. The region is also
endowed with natural resources (forests, hills, water bodies etc.),
religious places and heritage sites which attract a large influx of
tourists every year. As the city grows, large-scale freight movement
and tourist inflows might disrupt the free flow of traffic, and hence
the need for an outer ring road.
2
Project component
8 lane (4+4) divided carriageway with service lanes on either side.
3
Anticipated project
Phases Length (in kms) Completion date
completion timeline
Phase 1 51.6 2017
Phase 2 66.7 2020
Phase 3 41.6 2023
Phase 4 50.2 2026
4 Approximate project cost 2bn ( 200 billion)

Annex 1
5 Development and FDI Investment: 100% FDI is allowed in roads and highways
investment opportunity through the Automatic route. The prior approval of the
Government of India is not required.
Such projects are usually implemented through the
|
Engineering, Procurement and Construction (EPC) route.

Such projects have also been carried out under the
56
Public-Private Partnership (PPP) framework, where the

private partner usually develops and operates the project
on a Build - Operate and Transfer (BOT) basis.. Typically the
return on equity for such projects is between 18% and
20%. The market risk is passed on to the government and
the private partner recovers the investment in terms of fixed
annuity payments from the government for the
predetermined concession period.
The Government of India has accorded
Infrastructure status to road and highway projects. This
opens up access to various incentives such as a higher limit
on external commercial borrowing, lower lending rates, tax
holidays, lower import duties, and financial assistance from
specialised institutions..
The Ministry of Road, Transport and Highways of the
Government of India is planning to part-fund the project.
6 Employment generation 24,923 jobs
7 Implementing agency CRDA (Capital Region Development Authority), Vijayawada

2 Metro Line One
1 Project need Andhra Pradesh is urbanising at an unprecedented rate. Traditional

transport improvements like wider roads and flyovers will not be
sufficient to provide a lasting solution to the higher volumes of traffic
the region is already generating. As a smart city, Amaravati plans
to take a radically different approach to urban mobility, and one
element of this is the planned Mass Rapid Metro Rail system. The
growth of Amaravati will also rely on accessing the skills of the
population in the neighbouring city of Vijayawada, which makes it
vital to construct transport links between the two. A connecting
metro rail system will therefore be part of this project, and will also
link the airport at Gangavaram and the suburban railway station at
Tadepalli.
2 Anticipated project 2020

completion timeline
3 Approximate project cost 507 million ( 50,700 million)
4 Project details In Phase 1, 26 km of mass rapid metro rail system will be
Annex 1
constructed (the final length will be 107 km) . Indicative
project specifications
for Phase 1 are mentioned below:
Particulars Specification
Capacity (passenger per vehicle) 1,000-2,000 km
|
Capacity per hour per direction 30,000-70,000
Fare collection Off-board
Speed limit 50-120 km/h
57
5 Development and 100% FDI is allowed in metro projects through the
investment opportunity Automatic route. The prior approval of the Government
of India is not required.
Project development will be under the EPC / PPP framework.
Metro projects in India have demonstrated return on
equity of around 8% - 9%, with a combination of
government grant support and multilateral funding options.
MRT projects are capital-intensive and long gestation
projects and hence require concessional and long-term loan
options
The Government of India has accorded Infrastructure status
to metro projects. This opens up access to incentives such as
a higher limit on external commercial borrowing, lower lend
ing rates, tax holidays, lower import duties, and financial
assistance from specialised institutions

3 Development of Krishna Riverfront
1 Project need Andhra Pradesh is one of the biggest tourist destinations in India,
and ranks third for tourist numbers. To promote further tourism,
a scenic route between Amaravati and Vijayawada has been planned
along the Krishna River. This riverfront development will link three of
the theme cities Finance City, Sports City and the Tourism City.
The Finance City will be the economic centre with two iconic
towers. The Sports City will have large stadiums, arena and event
venues for international-scale sports events. The Tourism City will be
connected to all the tourist sites around the Krishna river, including
the religious tourism circuit. High-density commercial and mixed-use
development is planned along the waterfront, which will make
infrastructure development and businesses more viable. Distinctive
high-density residential developments have also been planned
along the waterfront.

completion timeline
3 Approximate project cost 313 million ( 31,310 million). The project cost includes a
Annex 1
contribution towards river training, bund widening and protection,

a four-lane road on the bund and urban water transport facilities
4 Project details The riverfront along the river Krishna will be a vibrant urban area
with commercial, recreational, entertainment and residential uses.
It includes:
|
An iconic waterfront central business district where the

58
buildings will have direct access to the waterfront

Amaravati plaza, which will host activities such as
amphitheatres, street hawkers and so on.
Urban water transport, connecting various tourist locations
along the river
Botanical gardens, theme parks, and a zoo
Hotels, resorts, restaurants and other tourist facilities
5 Development and Commercial, hospitality and cultural organisations can be

investment opportunity anchor tenants or enter into JVs with Indian counterparts
Project development opportunity on an EPC basis

There will also be indirect employment generation by being part of
the central business district

4 Duct Utility Tunnel along Arterial / Sub-Arterial Roads
1 Project need City authorities in India are facing a variety of issues relating to
public utilities, including thefts, high maintenance costs, outages,
and damage caused by natural events like excessive rainfall and
extreme weather. As a world-class smart city, Amaravati has
planned to overcome these problems by constructing an under
ground utility duct tunnel along all its major roads. This will reduce
the initial capital costs and provide rapid access to all utilities for
repair and maintenance without the need for access trenches, which
can also cause damage to adjacent infrastructure. Duct tunnels will
also allow the accurate mapping of utility cables, provide greater
resilience to cyclones and flooding, reduce maintenance costs, and
improve the appearance of the surrounding area.

completion timeline
3 Approximate project cost 245 million ( 24,480 millions)
4 Project details Construction of 306km of utility duct tunnels along the arterial and
sub-arterial roads of the capital city. This is likely to include optical
Annex 1
fibre cables, telecom lines, electricity distribution etc.
5 Development and 100% FDI is allowed in duct utility infrastructure through
investment opportunity the Automatic route. The prior approval of the
Such projects are implemented usually through the
|
The Government of India has accorded Infrastructure
59
status to urban utilities. This opens up access to various
incentives such as a higher limit on external commercial
borrowing, lower lending rates, tax holidays, lower import
duties, and financial ssistance from specialised institutions
among other benefits.
Amaravati is one of the cities selected by the central
government for the Atal Mission for Rejuvenation and Urban
Transformation (AMRUT). This will provide funds for urban
utility projects

5 Flood Management Works
1 Project need During the monsoon season, some of the low-lying areas in the
capital city are prone to flooding. 13,500 acres of this area are
affected by draining from the Kondaveeti Vagu canal, and about
10,600 acres are within the planning area of the city. Storm water
runoff is estimated at about 3.84 TMC. 80% of the surface run-off
in the capital city is not used, but merely discharged to the sea
via the Krishna River. As the catchment area is developed, the
surface run-off volumes and speeds are expected to increase
significantly, causing more flooding and the water will be wasted.
The detention ponds proposed under this project could provide
temporary storage for storm water run-off, and help prevent
flooding, while also providing a new source of raw water.

completion timeline
4 Project components Component Specification

Kondaveeti Vagu main drain 30 km
Annex 1
Infalling drains (right arm, left arm, 53km

Erravagu, Kotella Vagu, Ayyannavagu,
Palavagu)
Formation of three detention ponds at 1 TMC each
Neerukonda, Krishnayapalem and Lam
|
Constructing of outfall regulator on 29km

the banks of Krishna
60
Construction of storm water drains/Inlets 40km

Raising of platform levels and capital 5 sq.km
area to a safe level
5 Development and 100% FDI is allowed in urban flood management works

Flood management projects are usually implemented
through the Engineering, Procurement and Construction
(EPC) route.
to such projects. This opens up access to incentives such as
a higher limit on external commercial borrowing, lower
lending rates, tax holidays, lower import duties and financial

6 Waste Water Collection & Treatment System
1 Project need Municipal Sewage projections are made assuming that 80% of an
areas potable water consumed daily will be collected as sewage.
Industrial sewage waste is estimated as 80% of the potable water
consumed and a 10% infiltration rate. The sewage waste projected
for Amaravatis municipal and industrial activities is 445 MLD and
53.7 MLD respectively. There is currently no formal sewerage system
within the capital city, and there is therefore a need for a waste water
collection and treatment system.

completion timeline
4 Project details Phase 1 will include the development of a sewer network,

appurtenances and pumping system (660 km), a sewage treatment
works (208 MLD), and an urban irrigation network (660 km).
Component Total( million) 2017 2018 2019 2020
Sewer network, 165 16.5 49.5 49.5 49.5
appurtenances
Annex 1
and Pumping
Sewerage 24.96 - - 6.24 6.24
treatment plant
Urban 66 - 13.2 13.2 13.2
Irrigation
|
Network
61
5 Development and 100% FDI is allowed in sewage treatment through the
investment opportunity Automatic route. The prior approval of Government of
India is not required.
status to sewage treatment projects. This opens up access
to various incentives such as a higher limit on external
commercial borrowing, lower lending rates, tax holidays,
lower import duties, and financial assistance from
specialised institutions.
government for the Atal Mission for Rejuvenation and
Urban Transformation (AMRUT). This will provide funds
for urban utility projects

7 Development of a Water Supply System for Amaravati City
1 Project need The city of Amaravati will need 610 MLD of water by 2050.
This includes demand from residential, industrial, commercial,
institutional and other sectors, as identified in the Amaravati city
master plan. Currently the source of water supply is ground water
reserves, being extracted on an adhoc basis to meet the needs
of 10 million people in the villages of the catchment area. However,
the ground water reserves would not be sufficient to meet the rising
demand of Amaravati city. With that in mind, the plan is to source
additional water from the Krishna river and surface run-off from Kon
daveeti Vagu canal. The project would be developed in phases and
the immediate demand would be for 260 MLD.
2 Project components Source improvement infrastructure (intake wells/infiltration galleries,

raw water pipelines, pumping stations, electrification etc.), and a
bulk water and distribution pipeline network of 660 km, including
appurtenances and metering, water treatment plant(s) able to deal
with 260 MLD, storage reservoirs, distribution network, and an
automated control and command centre.
Annex - 1

completion timeline
5 Development and FDI Investment: 100% FDI is allowed in urban water supply
|
62
Water supply projects are usually implemented through the

Water supply development projects have also been carried
out under the Public Private Partnership (PPP) framework,
where the private partner usually develops and operates the
project on a Build - Operate and Transfer (BOT) basis.
Typically the return on equity for such projects is
between 16% and 18%, with the government stepping in
if there is a revenue shortfall.
to urban water supply projects. This opens up access to
various incentives such as a higher limit on external
commercial borrowing, lower lending rates, tax holidays,
lower import duties, and financial assistance from specialised
institutions.
Amaravati is one of the cities selected by central
goverment for the Atal Mission for Rejuvenation and Urban
Transformation (AMRUT) . Under the scheme, financial
support is extended to urban utility projects.
6 Employment generation Around 2,040 jobs

8 Power Transmission & Distribution
1 Project need As the regions economy grows, and its population rises, there will
be an increased demand for power. Amaravati city is expected to
need 1,500 MW in the medium term. Andhra Pradesh is currently
the only state in the country to provide a 24/7 power supply to
industry

completion timeline
4 Project details The main project component is the provision of additional

transmission mains, sub-stations 220/132/33/11 KV (2+30+130)
and distribution system.
5 Development and 100% FDI is allowed in power through the Automatic route.
investment opportunity The prior approval of the Government of India is not
required.
Power transmission and distribution projects are usually
Annex - 1
implemented through the Engineering, Procurement and
Construction (EPC) route. Such projects have also been
carried out under the Public-Private Partnership (PPP)
framework, where the private partner usually develops and
operates the project on a Build - Operate and Transfer (BOT)
basis. The National Tariff Policy established in 2006 ensures
|
a return on investment to companies engaged in power
generation, transmission and distribution of around 18%.
63
to power projects. This opens up access to incentives such
as a higher limit on external commercial borrowing, lower
lending rates, tax holidays, lower import duties, and financial
assistance from specialised institutions.

9 Housing for Government Employees
1 Project need Over 15,000 of the governments 1 million employees are expected
to move to Amaravati by mid-2016. This will significantly increase
the demand for housing and this will need to be provided on a
priority basis.

completion timeline
4 Project details The development area is around 4.6 million sq.ft in the Government
City, and will include a state guest house, Chief Ministers residence,
ministers bungalows, MLA and MLC quarters, Chief Justices
residence, judges quarters, AIS officers residence, gazetted officers
quarters, non-gazetted officers quarters, class IV employee quarters.
5 Development and Such projects are usually implemented through the Engineering,
investment opportunity Procurement and Construction (EPC) route.
Annex - 1

|
64
10 Affordable Housing
1 Project need Amaravati is the peoples capital and puts a priority on providing
affordable homes to the economically weaker sections. 14,000
families have been identified as needing this type of housing,
which is estimated to require an area of 7,000,000 sq. ft.

completion timeline
4 Project details Affordable housing for 14, 000 families to be constructed to

international quality standards.
5 Development and 100% FDI is allowed in the construction of affordable

investment opportunity housing through the Automatic route. Prior approval of
Engineering, Procurement and Construction (EPC) route
The Government of India offers incentives to attract Foreign
Annex - 1
Direct Investment in affordable housing development:
a) foreign investors are allowed to exit after the
development of trunk infrastructure and do not have to
wait until the completion of the project,
b) there are no minimum investment restrictions, and
c) there are no minimum development norms restrictions.
|
6 Employment generation 980 jobs
65
11 Development of the Industrial Zone
1 Project need Amaravati city is targeting five clean and non-polluting industries:
high-value food processing, electronics/hardware, IT/IT-enabled
services, financial services, and Research & Development. An area of
1,303 hectares has been earmarked for these industries, including
an industrial zone along the proposed city expressway. This has been
designated as a priority project. It will be able to draw on four
townships for skilled and unskilled labour

completion timeline
4 Project components The 140-hectare industrial zone will be reserved for light and
non-polluting industries. The buildings will range from low-rise
detached, semi-detached, and terrace factories, to high-rise
multi-tenanted, multi-storey factories. The clustering of similar
industries within the zone will generate useful synergies. The
infrastructure that needs to be developed in the zone includes water
Annex - 1
supplies, internal roads, waste collection and treatment, telecom

lines, electricity distribution, storm water drains, and landscaping.
5 Development and Companies from the target industries can set up their
investment route manufacturing bases in the zone.
Project development on an EPC basis
|

66

12 Development of City Expressways
1 Project need Growth in Amaravati city is being driven by its excellent transport
connections to local and global markets. However, last-mile
connectivity still needs to be provided to connect the city centre to
the nearest transport hubs. The city can draw on skilled labour from
Vijayawada, as long as there are good transport links between the
cities. It is also important to provide connectivity to the industrial
clusters planned for the Amaravati region to enable trade. Two
urban expressways are planned to do this. These expressways will
also connect the city to the nearest national highways, railway
junctions, airport, Vijayawada city, providing road connections
along the fringe of the city and allowing through-traffic to bypass
the capital city centre.

completion timeline
3 Approximate project cost 60 million ( 6000 million)
4 Project details Development of east-west and north-south expressways including
Annex - 1
interchanges / grade separators
Number of expressways 2
Total length 24km
Number of lanes 6 lanes (3 + 3)
Right of way 60 metres
Median width 4 metres (minimum)
|
Hard shoulder 3 metres
67
5 Development and 100% FDI is allowed in roads and highways through the
investment opportunity Automatic route. The prior approval of the Government of
India is not required.
Such projects are usually implemented through Engineering,
Procurement and Construction (EPC) framework. Such
projects have also been carried out under the Public-Private
Partnership (PPP) framework, where the private partner
usually develops and operates the project on a Build -
Operate and Transfer (BOT) basis. Typically the return on
equity for such projects is between 16% and 18% with
the government stepping in if there is a revenue shortfall.
status to road and highway projects. This open up access
to incentives such as a higher limit on external commercial
duties, and financial assistance from specialised institutions

13 Development of University Zone
1 Project need Research and education is one of the five focus areas of
Amaravatis city planning. With over 15,000 government employees
and associated staff moving to Amaravati in mid - 2016, there is
an immediate need to develop the primary, secondary and tertiary
education system in the region. The current student-teacher ratio in
the universities and colleges here is 15:1 and 13:1 respectively,
compared to the 10:1 ratio which is required by the Universities
Grants Commission, India. The government has made R&D one of
its focus sectors by drafting an innovation policy as well as including
R&D as one of the focus areas for the new capital city.
Around 1,000 hectares of land in Amaravati have been reserved

for the development of Knowledge City, which will be located
around the central park. The Knowledge Park will be the hub for
the citys education and research activities. There are currently very
few research organisations in the region, but prestigious institutions
like Cambridge University, All India Institute of Medical Sciences
(AIIMS), and Amrita university have agreed to set up campuses in
the Knowledge City.
Annex - 1

completion timeline

|
4 Project details The Knowledge City will house higher-level multi-disciplinary

educational colleges, national libraries, recreational parks, a sports
68
academy and a MICE facility, grouped around a large university

campus. The knowledge hub will include a library, data-bank,
resource centre, conference centres, training facilities, and R&D
facilities including IT clusters, biomedical research centres, and so
on. All facilities will be accessible to both students and companies
at affordable prices.
5 Development and Project development on an EPC basis

investment opportunity Educational and research institutions can participate as
anchor tenants or through collaborations with Indian
universities.

14 Meetings, Incentives, Conference & Exhibitions (MICE) Facilities
1 Project need Amaravati city will see a growth in MICE activities in the next few
years as the regions economy grows and develops. Land has also
been earmarked in the master plan to develop world-class physical
and social infrastructure, including the construction of nine
convention centres over the next 30 years. In the short term,
one large-scale convention centre is planned by 2020,
accommodating at least 10,000 people.

completion timeline
4 Project details Convention centre, exhibition centre, star-category hotels and

commercial space
5 Development and To be developed under the Public - Private Partnership (PPP)

investment opportunity framework where the private partner usually develops and
operates the project on a Build - Operate and Transfer (BOT)
Annex - 1
basis. The return on equity for such projects is typically
between 15% and 18%.
The Tourism Ministry of the Government of India offers
viability gap funding for MICE projects.
Andhra Pradeshs tourism policy offers incentives which can
include the waiver of non-agricultural land assessment tax,
|
land use conversion charges for new units, total
reimbursement of registration and stamp duties, exemption
69
from luxury and entertainment taxes for three years, levy of
5% VAT/CST/SGST and the provision of complementary/
linkage infrastructure to boost PPP projects in MICE

15 Solid Waste Management System
1 Project need The regions increasing growth and industrialisation can create issues
for the natural environment. Many parts of India have seen
environmental degradation such as contaminated water, sinking
groundwater levels, unhealthy soils, and polluted air. Amaravati is
likely to generate municipal and industrial solid waste of 2,018
tons/day and 255 tons/day respectively. At present, the waste
generated from the surrounding region is transported and dumped
in the open without treatment, causing environmental problems.
Amaravati city will be implementing an urban solid waste
management system to address this issue.

completion timeline
4 Project components Phase 1 includes the development of solid waste management

infrastructure including an automated control and command centre.
Annex - 1
5 Development and 100% FDI is allowed in solid waste management through

investment opportunity theAutomatic route. The prior approval of the
Usually, such projects are implemented through
Such projects have also been carried out under the
|
Public-Private Partnership (PPP) framework, where the

private partner usually develops and operates the project
70
on a Build - Operate and Transfer (BOT) basis.

status to solid waste projects. This opens up access to
incentives such as a higher limit on external commercial
duties, and financial assistance from specialised institutions.
The Ministry of Agriculture and Ministry of Renewable
Energy and Environment provide fiscal incentives for
waste composting and waste-to-energy projects

government for the Atal Mission for Rejuvenation and
Urban Transformation (AMRUT). This will provide funds
for urban utility projects

16 Healthcare Facilities
1 Project need The health infrastructure in the capital region is currently inadequate
for the existing population, and below global benchmarks: the
number of hospital beds for every 1,000 people is 0.4 as against
7, and the number of doctors is 0.3 as against 4.5. The number
of hospitals per 250,000 people is 0.6 as against 1. Over 15,000
government employees and associated staff are expected to move
to Amaravati city in mid-2016, which will mean an even greater
demand for quality and affordable healthcare. The new capital city
also aspires to become a leader in the healthcare sector, and has
identified healthcare as one of its focus sectors. A Health City
of 2,585 hectares has been planned in the capital and land has
been reserved throughout the city for healthcare infrastructure.
A medical academy and research centres are planned in the capital,
providing access to a talented workforce. Leading institutions like
AIIMS and the Indo-UK Institute of Health have already shown
interest in setting up hospitals in the capital.
2 Anticipated project Primary healthcare centers and hospital by 2018. Other facilities
completion timeline by 2020
Annex - 1
4 Project details Primary and secondary healthcare centres, OPD, IPD, operating
theatre, emergency / ICU, X-Ray / diagnostic / pathology,
ophthalmic, orthopedic, pediatric, ambulance services etc.
|
5 Development and 100% FDI is allowed in hospitals through the Automatic
71
investment opportunity route. The prior approval of the Government of India is not
required.
Development projects can also be done under Public-Private
Partnership (PPP) framework, where the private partner
usually develops and operates the project on a Build
Operate and Transfer (BOT) basis.. The return on equity for
such projects varies depending on the degree of private
sector involvement. The return on equity in such projects
could be a minimum of 18% 20%.
status to hospitals. This opens up access to incentives such
The total FDI in the hospitals sector in the last ten years
was 650 million. The government gives priority to
proposals such as hospitals, life-saving drugs, and
equipment.

17 Vizag Chennai Industrial Corridor
1 Project need The Vizag Chennai Industrial Corridor (VCIC) is a key part of the
planned East Coast Economic Corridor, Indias first coastal corridor
which aims to improve economic activity in Andhra Pradesh.
The VCIC corridor is aligned with the Golden Quadrilateral and will
play a critical role in driving Indias new Act East Policy and
Make in India policy. The corridor will support Andhra Pradeshs
efforts to grow its manufacturing sector and create high-quality jobs.

completion timeline
3 Approximate project cost Total cost by 2045 - 20 billion ( 2,000 billion)

Short-term cost by 2020 - 4 billion ( 424 billion)
4 Project details As a part of the VCIC, several projects have been identified to ease
congestion and make it easier to do business in the state. These
include ports, airports, roads, railways, and urban utilities.
5 Development and The Asian Development Bank is partially funding the

Annex - 1
investment opportunity project along with the Government of Andhra Pradesh

A project development facility fund is envisaged to finance
a range of projects in VCIC.
Sector-specific FDI is allowed in various infrastructure
components of the project
|
status to airports, ports, roads, and common infrastructure

for industrial parks. This opens up access to incentives such
72
as a higher limit on external commercial borrowing,

lower lending rates, tax holidays, lower import duties,
and financial assistance from specialised institutions.
6 Employment generation Potential of 14 million jobs in the region by 2045
7 Implementing agency Commissionerate of Industries

18 Bhogapuram Airport
1 Project need The current Visakhapatnam airport is a civil enclave on a naval

airfield, which creates constraints on its operations. International
passenger traffic at Visakhapatnam international airport increased
as much as 90.8% between April and August 2015, compared to
the corresponding period the previous year. Visakhapatnam will
be developed as one of the four nodes in the Vizag-Chennai
Industrial Corridor, which will bring both industrial and services
sector growth in the city, making it a trading hub on the east coast.
With all this in mind, an airport will be developed at Bhogapuram,
40 kms north-east of Visakhapatnam city.

completion timeline
4 Project details The airport will be built on 5,300 acres in and around Bhogapuram,
Annex - 1
including 1,673 acres of government land. The airport will be part
of an aerotropolis, which will also have a maintenance, repair and
overhaul facility (MRO), along with an aviation academy.
5 Investment route FDI investment: sector-specific FDI is allowed in various

infrastructure components of the project
|
The project will be developed under the EPC/Public Private
Partnership (PPP) framework where the private partner
73
usually develops and operates the project on a Build -
Operate and Transfer (BOT) basis. The return on equity
for such projects is typically between 18% and 20%.
status to airports. This opens up access to incentives such
assistance from specialised institutions.
7 Implementing agency Bhogapuram International Airport Company Limited (a special-

purpose vehicle owned by the Government of Andhra Pradesh)
19 National Waterways
1 Project need India has an extensive network of inland waterways which is currently
under-utilised for cargo. Less than 2% of cargo is moved this way,
compared to 45% in Europe. India wants to tap this huge potential
by developing six inland waterways. The National Waterway
4 project is 1,095 km, with 888 km of that in Andhra Pradesh,
connecting Kakinada to Pondicherry through the Krishna river,
Godavari river, canals and tanks. It is the second longest waterway
of India and will help reduce the cost of freight transport in Andhra
Pradesh, as well as easing congestion on the roads and railways.
Around 11 million tons of cargo is expected to be transported
through the NW-4 every year, including coal, cement, fertiliser
and food grains (rice, wheat, cereals). These account for significant
road and rail traffic in Andhra Pradesh at present.

completion timeline
3 Approximate project cost Total cost - 151.5 million ( 15,150 million);

Andhra Pradesh section - 133.2 million ( 13,320 million)
Annex - 1
4 Project details Construction of eight terminals at Kakinada, Rajahmundry, Eluru,

Kottapatnam, Maipadu, Dugarajupatnam, Vijayawada, and
Tadepalligudem. The project includes dredging and excavation to
develop a navigational channel, construction of terminals and
|
navigational locks, redesigning existing bridges etc.
5 Development and Such projects are usually implemented through the

74
investment opportunity Engineering, Procurement and Construction (EPC) route.

Inland waterways projects are capital intensive and long
gestation projects and hence would require concessional
and long term loan options
status to inland waterways projects. This opens up access
to incentives such as a higher limit on external commercial
duties, and financial assistance from specialised institutions.
7 Implementing agency Inland Waterways Authority of India and the Government of

Andhra Pradesh
This brochure has been prepared by PwC Private Limited, India (PwC). This brochure has been prepared for general guidance on matters of
interest only, and does not constitute professional advice. You should not act upon the information contained in this brochure without obtaining
specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information
contained in this brochure, and, to the extent permitted by law, PwC, its members, employees and agents accept no liability, and disclaim all
responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this brochure
or for any decision based on it.
This brochure contains certain examples extracted from third party documentation and so being out of context from the original third party
documents; readers should bear this in mind when reading the brochure. The copyright in such third party material remains owned by the third
parties concerned, and PwC expresses its appreciation to these companies for having allowed it to include their information in this brochure.
For a more comprehensive view on each companys communication, please read the entire document from which the extracts have been taken.
Please note that the inclusion of a company in this brochure does not imply any endorsement of that company by PwC nor any verification of
the accuracy of the information contained in any of the examples

Prospectus For AP by PWC

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INVESTMENT OPPORTUNITIES

FOR UK INVESTORS IN A21C

WHY INVEST IN INDIA ?

A STRONG ECONOMY AND ENABLING BUSINESS

India moved 16 places in the Global Competitiveness Index4

5th largest consumer market by 2025 according to the World Bank

TOTAL FDI FLOW [in bn]

Source: DIPP Factsheet on FDI (April00 to Mar15)

Source: 1 Ernst & Young Attractiveness Survey 2014

ABUNDANT NATURAL RESOURCE ENABLING BUSINESS ENVIRONMENT

WORLDS LARGEST DEMOCRACY GROWING & STABLE ECONOMY

ONE OF THE MOST ATTRACTIVE COUNTRIES FOR FDI

Month on Month FDI equity inflows have increased 40% between

Share of telecommunications, trading, automobile and computer software

Source: 1 UNCTADs World Investment Report, 2013

A Strong economic partnership

The economic partnership between India and the UK is powerful -

About 31% of the jobs generated from British investments are

60 FDI in India by G20 nations,

Employment generated by foreign affiliates

Source: 1 Sterling Assets India UK Investment creating Indian Jobs

Key sectors attracting UK investments

Services are also a key source of investment in India

British Companies Operating in India

Chemical Drugs & Food Services Petroleum & Others

Source: 1 Sterling Assets India UK Investment creating Indian Jobs

3rd most visited state for tourists in India

The state is agriculturally prosperous

Rich natural resources and human capital

To be the most preferred logistics hub and Indias gateway to East

1st state in south India to offer 24x7 power to industry

Generating capacity > 9,600 MW

Total capacity growth of 35,000 MW in the short term, of which

Focus on green energy projects

Ports 6 under operation (handling 142 million tonnes per annum

The Sunrise State

Road Network 45,000 km, including 4,423 km. of National Highways

Inland Water Transport 888 km National Waterway - 4

Existing land bank of 300,000 acres, adding further 700,000 acres,

GIS - enabled online land bank information

Affordable land rates

Land given on 99-year lease

Large area industrial developments

Petrochemicals and Petroleum Investment Region, Chennai-Bengaluru

Two National Investment Manufacturing Zones are planned

Key achievements of the government

1st link in the national water grid to be completed in a record

1st in India to hold a paper free e-cabinet

1st state in India to announce Retail Policy

1st State in the country to formulate a Start Up Policy and

One of the most innovative plans for urban development India

Within 100 days of government (2nd October 2014), Andhra

E-Pragati - Andhra Pradesh is the 1st state in India to conceive

Andhra Pradesh received the most competitive bid for a solar

low sale price of Rs. 3.5 a unit

AP aims for sustainable double digit growth

GSDP growth rates of AP (at constant prices)

Andhra Pradesh is one of the foremost states in creating a conducive business

Single desk portal (identified as best practice)

All approvals to set up a new business can be obtained in 21 days

Online tracking of Investments

Investment facilitation officers

Country desks for strategic partners