Rising Amaravati, emerging Andhra Pradesh

The development of Amaravati is based on the demographic analysis and economic drivers, providing “tailor-made solutions” to fit the local environment and culture. Not only does this underline plenty of opportunities in the State but also meets the challenge to address the growing infrastructure and development needs of the country

‘Amaravati’ is a Pali word which means the ‘Abode of Deathless’, referring to Nirvana. Well, that is exactly how Amaravati will be – Nirvana of Andhra Pradesh. Amaravati, the people’s capital of Andhra Pradesh, has been named after an ancient Buddhist city. Amaravati, as the name suggests, will retain its historical significance yet reflect modernity.

It will be a symbol of strength, hardwork and unity of the people of Andhra Pradesh. Amaravati will rise on the banks of the Krishna River, between the cities of Vijayawada and Guntur. Given that the new capital requires large tracts of land for development, our Hon’ble Chief Minister took a major decision to procure land for the capital through land pooling instead of land acquisition.

Our government’s Land Pooling System (LPS) to procure land for the capital has won people’s support to build the capital. The Government of India is now planning to procure land for industrial corridors based on the success of our state’s LPS. Our Chief Minister convinced land owners by making them stakeholders in the development of capital and procured 33,000 acres of farmland through the LPS.

Economists such as Swaminathan Ankleshwar Aiyar in an article mentioned: “The Chief Minister’s proposal to hand over developed plots in addition to giving certain amount on land every year for the next 10 years to those who have given land for capital is an example of how governments can find ways to work with people if they choose to.”

Not only is this a win-win situation for the government, but also an opportunity for land owners to enroll in skill development programmes and own plots which will be worth a few crores when the city develops. Aiyar, in his article, writes: “The key to success is that the (land pooling) scheme is voluntary, and makes farmers stakeholders in development. This is not just good politics, or a clever way to facilitate economic development. It is also ethical development,” he says.

Half of the land procured will be utilised for common assets – roads, open spaces, social infrastructure, etc., and the remaining half will be developed by the government. The developed plots will be allotted to land owners close to their lands within three years. In addition, land owners will get Rs 30,000 a year to compensate for the loss of agricultural income in non-irrigated lands with Rs. 3,000 increase per year and Rs 50,000 a year in irrigated lands, with Rs 5,000 increase per year for a period of 10 years.

The Government of Andhra Pradesh had signed a memorandum of understanding (MoU) with the Government of Singapore in December 2014 to develop Amaravati into a world-class capital city. The Government of Singapore has submitted the: 1) Capital Region Concept Master Plan, 2) Capital City Master Plan, and 3) Seed Capital Area Detailed Master Plan.

Amaravati will be the seat of the Andhra Pradesh government. It will open new ventures for other nations to look towards our state and also to attract foreign investments. It will also be a city where our citizens and people from all over the world can live, work and play. I’m sure it will also become the cynosure of all eyes. Amaravati is centrally located and easily accessible from all regions across the state. The Vijayawada-Guntur was chosen as the Capital Region after identifying the region suitable for competent administration, economic development, and cultural integration.

The capital has been decided considering risk mitigation factors, transport, connectivity, low-risk area, water and land availability and the potential for development. The development of Amaravati is based on the demographic analysis and economic drivers, providing “tailor-made solutions” to fit the local environment and culture. Not only does this underline plenty of opportunities in the state but also the challenge to address the growing infrastructure and development needs of the country.

The 2015 World Economic Forum’s Global Competitiveness Report projects that India’s urban population will increase to 814 million by 2050 from 410 million in 2014. A BRICS report states that India’s economy could be larger than all but the US and China in 30 years. In the last one year, we have been witnessing how India’s footprint is growing across the globe. We have seen some positive signs ever since the Prime Minister Narendra Modi took over the reins of India.

India and Andhra Pradesh are on the same page. A growth-oriented leadership at the Centre has a good relationship with the state (of Andhra Pradesh) and shares the same goals as the state. With stable leadership at the Centre, the new state of Andhra Pradesh has many stories to write and many opportunities to tap in a new India.

I would also like to inform you that the World Bank has ranked AP as the second best state in “Ease of Doing Business” in India. India is currently at the cusp of a transformation which will make her one of the world’s largest economies by 2050. The way I see it - This growth of India is perfectly timed for ‘Rising Amaravati and Emerging Andhra Pradesh.’ Amaravati’s growth will not only boost Andhra Pradesh’s economy but also give a fillip to India’s image globally.

So, here are the five key elements of Amaravati:

1. A vibrant economy: Besides being the seat of power, Amaravati will be a commercial hub for existing regional industries such as agri-businesses and logistics, and catalyse new ones such as Information Technology Enabled Services (ITES) and pharmaceuticals. The plan has designated a Central Business District, commercial zones in town centres, as well as industrial parks. In addition, it supports job creation in residential neighbourhoods so that people can work near their homes.

2. A liveable Indian city: To ensure a quality living environment, the plan has laid out infrastructure for delivering reliable supplies of electricity and, water while managing solid waste and sewerage, thereby ensuring a quality living environment.

3. Enhancing connectivity and active mobility: The Amaravati region has good road and rail links to all parts of the state. The master plan will enhance the connectivity of the capital with a Bus Rapid Transit (BRT) system that can eventually be upgraded to Mass Rapid Transit (MRT) system. While designed with an efficient road network, the Amravati master plan will also promote the use of public transport and minimise the need for long commutes. Amaravati residents will also have non-motorised transport choices using an extensive network of walkways, cycle tracks and local waterways.This approach promotes active mobility within the city while protecting its environment through reductions in carbon emissions and other pollutants.

4. Ensuring sustainability: The master plan preserves much of the existing greenery and waterways, while introducing new parks, gardens and recreational facilities such as a cricket stadium. Amaravati will possess a distinctive river front with lush open spaces for its citizens to enjoy. Innovative approaches are envisaged to turn the reservoirs, storm water detention ponds and canals into locales for public enjoyment even as they perform the critical functions of storing water and controlling flooding.

5. The People’s Capital: Amaravati will be built on land pooled from the contributions of the villagers in the region. Consistent with its Chief Minister’s vision of a People’s Capital, the master plan also provides for affordable housing, easy access to amenities such as schools, healthcare services, markets, and shopping malls, libraries and a university. The master plan respects the sense of local identity and enhances appreciation for local heritage. It protects the existing religious and heritage sites and connects them to the network of MRT / BRT and roads to form tourism circuits.

Combining all these factors, the dream of making Amaravati the best capital in India will become a reality soon as we lay the foundation stone for its construction on October 22, 2015.

Opportunities in the new capital:

• Metropolitan region of 7,068 sq.km;

• Population by 2050 – 10-13 million;

• 6 million workforce – (incremental – 3.5 million);

• $30 billion investments in the next decade;

• World-class urban infrastructure facilities;

• Massive potential for PPP investments; and

• World’s largest ring-road of 210 km

Development of Corridors:

• Node 1-2: Hyderabad ot Machilipatnam (Immediate priority);

• Node 3-4: Vizag to Chennai (Immediate priority); and

• Node 5,6 and 7: Tenali, Sattenapalli and Nuzvid (Medium-term priority)

Large investments opportunities in renewable energy: Manufacturing; R&D Centre (Renewable energy university); Solar pumpsets and roof systems; Energy-efficient lighting; Solar Parks and wind farms; and Wind-Solar Hybrid projects

Advantages of AP:

• Strategic location –gateway to East and South East Asia - Logistics hub; Second longest coastline of 974 km; 30 urban centres;

• Extensive spinal road and rail network;

• Large natural gas wealth; and

• Only state in south India with 24x7 power

AP has sector-specific policies for customised impetus to the thrust sectors: Single Desk; Industrial Policy; Sector-specific policies like Textile Policy, Agro-Processing Policy, Auto-components Policy, Industrial Water Policy, Private Universities Bill, Labour Reforms, Solar & Wind Policy, Port Policy and Maritime Board Act; and the Economic Development Board.

For foreign investors, we have a single-desk clearance policy where an escort executive has been appointed to ensure clearances of the industrial projects online through our Single desk portal. So far, we have granted approvals for 1,206 industries under the Single-desk clearance system.

Industrial Corridors:

VCIC: The first coastal industrial corridor of India – VCIC is expected to pass through 9 districts in AP and connect 3 major ports and 15 non-major ports; and

CBIC: This is a corridor that aims to be a global manufacturing corridor influencing 2.5% of India's area and 3.7% of India's population. The focus is on Pharmaceutical and Biotechnology industries, Mineral and Mineral based industries, and IT & IT-enabled services sector.

National Manufacturing Investment Zones:

• Two National Investment Manufacturing Zones are being developed, one at Yerpedu in Chittoor district and other at Kandukur in Prakasam District. These will involve the development of modern industrial townships in an area of over 5,000 hectares with an investment of Rs.30,000 crore each with the potential to create employment for 6 lakh persons. These will serve as global centres of manufacturing excellence; and

• The state also proposes to operationalize the PCPIR between Machilipatnam and Kakinada by securing an anchor unit. It is expected to attract a total investment of Rs. 3 lakh crores over a period of 7 to10 years and generate employment for 12 lakh persons.

New Infrastructure Initiatives:

The state has planned massive infrastructure development – with a world-class capital city, 14 ports, metro rail projects, 14 airports, and LNG terminals;

Industrial Development plans include cluster-based development with petrochemical industrial parks, textile hubs, automobile hubs and food parks;

Several premier national institutions including IIT, IIM, IISER, IIIT, NIT, NIOT, NACEN have made their way to Andhra Pradesh. Several other premier institutions too will come up shortly to augment the already impressive educational set-up

Ports-based development: Positioning Andhra Pradesh as a logistics hub of South East Asia. Our state has 14 notified non-major ports and one major port (Visakhapatnam) along our coastline. Visakhapatnam is the country’s largest major port handling the largest cargo in India; and

In order to position Andhra Pradesh as a logistics hub of South East Asia and lay the foundation for rapid growth of economic activity, I aim to improve air, rail, and road connectivity for all districts. Port-based development will be taken up in the coastal districts and industries that benefit from proximity to ports, beaches and marine products will be set up here.

This will enable companies to export (manufactured) goods from our state to any South East Asian Country. Our proximity to countries like Singapore, Malaysia and other countries gives us this advantage. There are immense opportunities for automobiles, electronics, textiles, food-based industries, chemicals and petro chemicals, textiles and mineral-based industries.

Hindupur with proximity to Bangalore is emerging as an industrial hub –where several large companies have set up their bases – and is spurring industrial growth in the region. It is well connected by rail, road, and ports and provides an excellent choice for expansion of Bangalore based investments.

e-Governance:

• AP is the first state in country to hold paperless e-Cabinet;

• We are soon coming up with e-Pragati, State Enterprise Architecture which will change the face of G2G, G2C and G2B services;

• CM CORE Dashboard created for various departments and programs in the state for real-time monitoring; and

• E-Office implementation.

Innovation and start-ups:

• We have launched the Sunrise Startups Programme in our new Technology, Research & Incubation Park (TRIP) and Start-up Village Incubation Centre in Visakhapatnam;

• Our aim is to promote a large number of start-up companies in Visakhapatnam by 2020 which will propel further growth of IT sector in Visakhapatnam; and

• With the total Space of more than 50,000 Sqft, TRIP will cater to the needs of budding entrepreneurs and encourage them by providing the initial support at affordable or subsidized costs, create incubation facilities with a plug-and-play environment and enhance the scale of R&D undertaken in the technology universities

We aim to:

• To establish 100 Incubators/Accelerators;

• To incubate 5,000 start up companies;

• To develop 10 lakh sft of incubation space;

• To mobilise Rs 1,000 Crores Venture Capital for Innovation; and

• Have created an Innovation Fund of Rs100 crore for entrepreneurs and small businesses.

Tourism: We have an industry-friendly Tourism Policy for incentivising investments in tourism with hassle-free entry operations through a Single-Desk Approach.

Investments potential in the tourism sector: Hotels, heritage hotels; Resorts; Exhibition Centres; Theme Parks, amusement parks/centres; Convention Centres; Golf Courses; Bio-diversity parks; Snow Parks; Arts & Crafts, textile, handicraft centres; Theatres; Wayside amenities; Hospitality Training

Our Vision:

• Be amongst the top 3 states in India by 2022

• Be the best state in India by 2029

• Be a developed state with high Happiness Index by 2029

• Be the most preferred destination by 2050

For this, we have 7 Missions, 5 Grids and 5 Campaigns

Seven Missions: We have identified key focus points in order to set up and develop 7 Missions to reach our objectives and convert huge challenges into opportunities and make ours the Sunrise State: I. Primary Sector Mission; II. Social Empowerment Mission; III. Knowledge and Skill Development Mission; IV. Urban Development Mission; V. Industry Sector Mission; VI. Infrastructure Mission; and VII.

Service Sector Mission

Five grids: We will create five grids - Gas grid, water grid, fibre-optic grid, power grid and road connectivity.

Five campaigns:

1. Badi Pilustondi (School is calling);

2. Polam Pilustondi (Farm is calling);

3. Neeru Chettu (Water and Trees);

4. Pedarikam Pai Gelupu (Victory over Poverty); and

5. Aarogyam, Parishubhram (Swachh Andhra Pradesh)

Come, be a part of this unparalleled growth opportunity. Our journey has begun, and we are looking for fellow travellers. You are invited to be a part of our growth story and walk with us by re-writing the history and future of the Sunrise State of Andhra Pradesh. (The writer is the Advisor, Communications, to the Andhra Pradesh government. He delivered the key note address on ‘Rising Amaravati, Emerging Andhra Pradesh’ at a meet organised by the Building & Construction Authority (BCA) in Singapore recently)

By Dr Parakala Prabhakar