Information Technology & Communications
Department
GOVERNMENT OF ANDHRA PRADESH
Welcomes
WORLD BANK TEAM FROM AFRICA
17-02-2009
Andhra Pradesh – Land of Opportunities
Advantage Andhra Pradesh
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IT Scenario in The state
Infrastructure
Human resources
Leisure and quality of life
Most Preferred IT Destination
Andhra Pradesh – Land of Opportunities
Growth of IT in AP in the last Decade (1998-2008)
IT Initiatives in the last decade
Particulars
1998
2008
Increase
No of IT Co.
194
1584
8 times
Employment
12,000
2,40,000
20 times
Exports ($ mil) 114.8
5224.4
45 times
Built up
space(Sft)
40 million
200 times
200,000
Andhra Pradesh – Land of Opportunities
Recent history of IT initiatives in the State
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1998 – IT industry was allowed certain incentives in respect
of power supply.
1999 – 1st ICT Policy was announced
2000(April) – Separate Dept – Department for Information
Technology & Communications created by Govt
2000 (May) – Consultative Committee
on IT Industry with
Goal
Govt functionaries and representatives of IT Industry for
coordination and resolving of issues on IT Promotion
2002 (May) ITES Policy announced and Spl Secy to CM is
kept in charge of ITES promotion in the State.
2002(June) 2nd ICT Policy announced
2005(May) 3rd ICT Policy 2005-2010 announced.
Till 2006 – Honble Chief Minister was Minister for IT&C
Andhra Pradesh – Land of Opportunities
Political Vision & Commitment
Andhra Pradesh – Land of Opportunities
Andhra Pradesh – Land of Opportunities
Overview - AP
•Area: 2,75,000 sq.kms
•Population: 76 million
• Centrally located
• Well connected with road, rail, and air network
• Good port facilities
• Excellent telecommunication network
• AP 5th largest state in India – spread over 8%
of India
• AP 5th most populous state – home for 7% of
Indian population
• One of the fastest growing economies @ 10.37%
GSDP Growth Rate
• Attracts 7 % of FDI Annually
Andhra Pradesh – Land of Opportunities
IT & C Department
ORGANIZATIONAL STRUCTURE
Minister for IT&C
PRINCIPAL SECRETARY
IT Policy – planning &
formulation, IT Promotion,
IT HR
SECRETARY
E-Governance, IT Infrastructure
& IT Communications
 Assisted by Spl. Secretary, Director/ Jt. Directors
drawn from Govt. and professionals taken on contract
 Officer-oriented Department
 HODs - APTS, EDS, SAPNET, IEG
Andhra Pradesh – Land of Opportunities
IT Promotion - STRATEGIES
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Attract new ICT Companies
Provide Scope & Opportunities for growth for the
existing companies
Develop Incubation Centres in Hyderabad and
Tier II Locations for SMEs/first generation
entrepreneurs.
Create adequate built up space / infrastructure,
through promotion of IT Parks/IT SEZs/ITIRs
Provide quality manpower
Focus on SMEs/ Animation, Gaming & Digital
Entertainment
sectors.
Andhra Pradesh
– Land of Opportunities
AP IT EXPORTS ($ mil)
6000
5224.4
5000
41 %
4000
3716.4
3000
2504.2
1654
2000
1000
12
581.4
401.4
211.8
114.8
26.8 56.8
733.6
1005
0
95-96
96-97 97-98
98-99 99-00
2000- 2001- 2002- 2003- 2004- 2005- 2006- 200701
02
03
04
05
06
07
08
Andhra Pradesh – Land of Opportunities
AP Exports – Segment wise
26%
50%
24%
IT Services
ITES/BPO
Enterprise Appl & Others
Andhra Pradesh – Land of Opportunities
Exports 07-08 –AP/Other States
Maharashtra
35374
20%
Karnataka
55000
30%
Others
7226
4%
Tamil Nadu
28295
16%
NCR
27388
15%
ANHDRA PRADESH
26122
15%
Andhra
Pradesh
Opportunities
Andhra
Pradesh–– Land
Land ofofOpportunities
Existing Infrastructure – IT Parks
HITEC City – Developed by L&T
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Cyber Tower
550,000 sq. ft. of built-up space
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Cyber Gateway
860,000 sq.ft. of built-up space
Cyber Pearl
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Total planned built-up space
of 500,000 sq.ft
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First phase of 250,000 sq. ft.
inaugurated in October, 2004
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In partnership with Ascendas,
Singapore
Andhra Pradesh – Land of Opportunities
Existing Infrastructure – IT Parks
Cyber Gateway
• Covering
8 acres of land
• 8,66,000 sq. ft. of built-up space
• Occupants include GE, ICICI
Bank
RMZ Futura
• Covering
5.24 acres
• 350,000 sq. ft. of built-up space
• Occupants include Deloitte &
Google
Andhra Pradesh – Land of Opportunities
Existing Infrastructure – IT Parks
Vanenburg IT Park
• 850,000 sq ft of built up space
• Occupants include CA,
Motorola and CTS
Mindspace
• 3 million sq. ft. of built-up space
on 110 acres
• Facilities for leisure and
entertainment
• Developed by K. Raheja Group
Andhra Pradesh – Land of Opportunities
Existing Infrastructure – IT Campus
Deccan Park (TCS)
• TCS initiative covering 11 acres
• 320,000 sq.ft development center
• Employs 3,200 IT professionals
Andhra Pradesh – Land of Opportunities
Existing Infrastructure – IT Campus
Infosys Development
Centre
• Campus spread over 50 acres
• 311,000 sq.ft of built-up area
• Employs 3,700 software professionals
Andhra Pradesh – Land of Opportunities
Existing Infrastructure – IT Campus
Convergys Campus
• Located in Hi-Tec City,
Hyderabad, with 2,00,000 sq.
ft. occupied and balance
reserved for future growth.
Development
• Total Space: 400,000 sq. ft.
Andhra Pradesh – Land of Opportunities
Existing Infrastructure – IT Campus
I Labs Building
•iLabs has 4-block corporate office and Media
Centre
• Total Built Up area is 5 lakh sq ft overlooking
the secret lake at Hi-Tec City
Andhra Pradesh – Land of Opportunities
AP– ICT Policy
Mega Project Incentives:
Policy
- Tier IIemploying
Cities above1000 or
For projects
investment of US $10 million above,
Negotiable Package of Incentives &
Facilitation.
SME & Tier-II Incentives
Additional Incentives for Small & Medium
Enterprises and ICT companies moving to
Tier-II locations in the State
Andhra Pradesh – Land of Opportunities
AP–IT Policy General Incentives
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Self-certification and exemption from inspections from
various Labour Laws
Exempt from the purview of the AP Pollution Control Act
except in respect of power generation sets.
Single window approach for all approvals/clearances
IT/ITES units/ companies and non-hazardous hardware
manufacturing industry consisting of IT & Electronics are
declared as essential service
Reimbursement of certain portion of expenditure incurred
on quality certifications & Patent Filing Costs.
100% reimbursement of Stamp Duty, Transfer Duty and
Registration Fee on the lands registered on lease/sale
Conversion to Industrial Power Tariff from Commercial
Power Tariff
Exemption from Statutory Power Cuts
Andhra Pradesh – Land of Opportunities
AP–IT Policy Tier-II Location Incentives
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Allotment of Government land at land cost reasonable
and comparable rate to other Tier-II IT locations in the
country.
Anchor Company Subsidy of Rs.50 lakhs to the first
5 anchor IT/ITES companies employing more than 250
employees in IT or 500 employees in ITES in any Tier-II
location. or
Rs.15 lakhs Recruitment Assistance for employing
minimum 100 employees in IT & 200 employees in
ITES within two years of commencement of
commercial operations in the Tier-II city
Andhra Pradesh – Land of Opportunities
AP–IT Policy
SME - Incentives
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Creation of Incubation Centres to provide ready built up space to
start up companies, SMEs at affordable cost.
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25% rebate on power tariff for the first three years of the
operations
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50%Reimbursement of Exhibition Subsidy
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Rs. 10 lakhs Recruitment Assistance for employing minimum 100
employees in IT & 200 employees in ITES within one year of
commencement of commercial operations in Hyderabad and
around upto 50 kms.
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Support IT Exporters Associations, HYSEA,NASSCOM, STPI, IEG
etc., Creation of Library for making available material on trends in
technology, market intelligence, research reports and analysis
Andhra Pradesh – Land of Opportunities
GOI Incentives – Special Economic Zones
 SEZ – Special Economic Zones are specifically delineated duty free enclave
deemed to be a foreign territory for the purpose of trade operations, duties
and tariffs.
 IT SEZs are created in a minimum area of 25 acres(10 ha) with a
commitment of building up a minimum processing area(IT office space) of 1
million sft.
 The GOI Incentives for IT SEZs are: Income Tax exemption for 10 yrs in a block of 15 yrs
 Import/procure goods without payment of customs / excise duties
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Exemption from central sales tax
In house customs clearance
All customs/central excise clearances on self certification basis.
No pre-fixed export obligation. the units have to be positive net foreign
exchange earners only
 Service tax exemption to SEZ units (exclusive incentive) - 12.2 %
 Unlimited DTA sale on payment of full Duties
Andhra Pradesh – Land of Opportunities
IT office infrastructure in Pipeline
Out of 295 IT SEZ approved in the Country, 59 IT
SEZs are coming up in the State of AP and would
create more than 100 million sft in the next 3
years
Already 12 IT SEZs completed 1st phase of about
2 million sft and are functioning IT SEZs
15 IT Parks are coming (less than 25 acres) and
would be crating about 2 million sft)
Andhra Pradesh – Land of Opportunities
Andhra Pradesh – Land of Opportunities
Tier –II Locations
Visakhapatnam
 2 IT SEZs in 142 acres
Vijayawada
 IT Towers/SEZ in 30 acres with APIIC
 Incubation Centre in 2 acres with STPI
Tirupati:
 IT SEZ in 80.45 acres
 IT Incubation Centre with STPI to be ready soon(12,000 sft)
Kakinada:
 Incubation Centre with STPI started on 3-2-07 (14,000 sft)
 IT SEZ in 25.73ares
Warangal:
 IT SEZ in 35.8 acres
Kadapa:
 IT SEZ in 52.76 acres
Andhra Pradesh – Land of Opportunities
INTER STATE COMPARISON ON IT/ITES OPERATIONS SET UP COSTS
Location
Occupancy
cost per
month
Power Cost
(per unit)
Salaries Cost(per annum)
Per Seat Cost (per month)
IT
ITES
IT
ITES
Mumbai
74.43
5.9
317,950
175,000
7,443
5,955
Pune
41.18
6
342,408
175,000
4,118
3,294
NCR
125.34
4.65
313,059
175,000
12,534
10,027
Hyderabad
43
3.71
317,950
175,000
4,300
3,440
Bangalore
53.06
4.5
391,323
175,000
5,306
4,245
Chennai
38.57
4.75
269,035
165,000
3,857
3,085
Kolkata
55.85
3.2
282,051
135,000
5,585
4,468
In occupancy cost, Hyderabad is lowest after Chennai and Pune
In Power Cost, Hyderabad is lowest after Kolkata
In Salaries Cost, Hyderabad is lowest after Kolkata and Chennai
In Per Seat Cost, Hyderabad is lowest after Chennai and Pune
Source:- Cushman & Wakefield
Andhra Pradesh – Land of Opportunities
AP – Talent Pool
Silicon
Valley
Hyderabad
Every 4th IT professional in Silicon Valley is an Indian
Every 4th Indian IT professional in Silicon Valley is from AP
Andhra Pradesh – Land of Opportunities
AP – Talent Pool
Large pool of English-speaking graduates
1847- U.G. Colleges
428,811 graduates/year
527- Engineering Colleges
173,032 engineers/year
637-MCA Colleges
43,045 seats/year
436 - MBA Colleges
31,398 seats/year
174 - Polytechnic Colleges
40,785seats/year
Andhra Pradesh – Land of Opportunities
AP State : Human Talent Base
MBA program - set up in collaboration with Wharton, Kellogg
and London Business School - supported by a distinguished
list of renowned global corporates such as McKinsey, Goldman
Sachs, Unilever, Bechtel, Aventis, CA, Royal Dutch/Shell, Credit
Suisse, Novartis and several others
MS in IT - programme offered in association with
Carnegie Mellon University
Graduate Programs in I.T. - Supported by Microsoft,
Motorola, IBM, Oracle, Satyam,etc
Jawahar Knowledge Centre – Initiative of
Industry/University/Government - imparts industry
grade skills to fresh Graduates & place them in IT
Industry
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3 Rural IIITs – Rajiv Gandhi University of Knowledge Technologies at
Basara, Nuziveedu & Edupulapaya started from 2008 Academic Year
for the benefit of Rural youth.
Indian Institute of Technology & BITS – PILANI
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30 affiliated and 5 deemed Universities recognised by UGC in the State.
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Andhra Pradesh – Land of Opportunities
AP - Globally Connected
Dubai
Hyderabad
Andhra Pradesh – Land of Opportunities
Hyderabad - Connectivity
AIR
• Connected to USA, UK, Amsterdam, Singapore, Colombo,
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Dubai, Sharjah, Bangkok, Kuala Lumpur etc.
Lufthansa operates thrice a week direct to Frankfurt
KLM direct to Amsterdam
Singapore Airlines to Singapore
Hyderabad - Hub for SAHARA airlines
Rail and Road
Intercity Transport
• Headquarter of South Central Railways
• Excellent service of buses
• Network of smooth, wide and clean roads
• Two line, 74 km intercity commuter rail,
• Multi-Modal Transport System (MMTS)
of Indian Railways
• Regular luxury bus services
connecting major Indian cities
Andhra Pradesh – Land of Opportunities
Hyd Metro Area
TO NAGAPUR
(N.H 7)
TO NIZAMABAD
(RLY.LINE)
TO SIDDIPET
Jawharnagar
GENPACT and
Proposed DIGITAL CITY
OUTER Ring Road
(160 KM)
N
TO MUMBAI
N.H 9
TO MUMBAI
Hitec city
Infosys
HUSAINSAGAR
OSMANSAGAR
Kokapet
TO
VIKARABAD
HIMAYATSAGAR
Adibatla
115 acres
SW
Mamidpalli
TO BANGALORE
N.H.7
750 acres
INTERNATIONAL
AIRPORT
Mucherla
150 Acres
Andhra Pradesh – Land of Opportunities
IT Layouts
Pvt IT Parks/
SEZs
Infrastructure In Hyderabad
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Integrated Satellite Townships:
About 22 villages in & around Hyderabad and surrounding
districts are being developed as Integrated Satellite
Townships
5 areas in Hyderabad, RR, Medak, Nalgonda dists,
surrounding Hyderabad are being developed as integrated
IT clusters to have “walk to work” and “Plug & Play” kind
of working/living environment
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Outer Ring Road(ORR)
160 km, 8 lane Express Highway with 150 meter width,
covering 84 villages in and around Hyderabad, connecting
International Airport with IT Clusters.
Andhra Pradesh – Land of Opportunities
Infrastructure In Hyderabad
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New International Airport:
New International Airport in 5400 acres functioning
from 22nd March 2008 commissioned at cost of
US$500 million(Rs.2000 crores) with 4.26 km runway,
longest in South East Asia, 12 aero bridges and 12
million passengers per annum handling capacity.
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Mass Rapid Transit System-Metro Rail(MRTS) Project
(elevated)
To be implemented in 3 routes in first phase spanning
over 66 km in Hyderabad. At an estimated cost of
Rs.8760 crores(US $ 2000 million).
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Multi Modal Transportation System(MMTS):
2 routes (42.16 km length) opened in Feb 04 with a cost
of Rs.198 crores,catering to traffic needs of over
40,000 passengers per day
Andhra Pradesh – Land of Opportunities
QUALITY OF LIFE
•Andhra Pradesh a truly
multicultural and
cosmopolitan state
•Healthcare: a number of
super-specialty hospitals and
other state of the art
facilities,
•Educational Centers having
3 IB accredited Schools
Andhra Pradesh – Land of Opportunities
AP – The Most Preferred IT Destination
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Microsoft looks at Hyderabad as one of the most important centers
internationally.
- Bill Gates, Microsoft
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The Andhra Pradesh Government have been and continue to be extremely
pro-active in both encouraging and nurturing investment into the State.This
‘can do’ attitude has, in no small, way contributed to the success of HSBC in
Hyderabad and Visakhapatnam.
- Malcolm Wagget – COO, HSBC-EDP India
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"Andhra Pradesh has become one of the leading global IT centers because of
the talent of its business leaders, its workforce, and the strong support of its
government leadership.“
- Harris Miller – President IT Association of America
Andhra Pradesh – Land of Opportunities
Andhra Pradesh :The Most Preferred IT destination
“ Andhra Pradesh is the Most Business Friendly State in South
Asia”
World Bank Report - Doing Business in South Asia 2007
“GE will always evaluate Hyderabad for new businesses”
Jack Welch
Former CEO General Electric
“Hyderabad is India’s next Silicon Valley”
Kenichi Ohmae
Formerly Principal, McKinsey & Co, Tokyo
Andhra Pradesh – Land of Opportunities
Andhra Pradesh : The Most Preferred IT destination
Home to leading IT companies
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Microsoft
IBM
Oracle
Computer Associates
Convergys
Keane
Cordys
Motorola
Nokia
NVIDIA
Intergraph
Kanbay
CSC
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Honeywell
Infosys
TCS
Wipro
Visualsoft
Infotech
Intelligroup
Sierra Atlantic
Polaris
Mentor Graphics
Qualcomm
NCR
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Google
HSBC HDI
FranklinTempleton
Bank of America
Verizon
UBS
Analog Devices
Cognizant Tech
Cadence
Connexant
Invensys
Synopsis
Patni
Sonata
Andhra Pradesh – Land of Opportunities
Thank You
Ajay Mishra, IAS
Principal Secretary to the Government
Email:- prlsecy_itc@ap.gov.in
Website: www.apit.gov.in
Andhra Pradesh – Land of Opportunities