Information Technology & Communications...

Andhra Pradesh – Land of Opportunities

Information Technology & Communications Department

GOVERNMENT OF ANDHRA PRADESH

Welcomes

WORLD BANK TEAM FROM AFRICA

17-02-2009


Advantage Andhra Pradesh

IT Scenario in The state Infrastructure Human resources Leisure and quality of life Most Preferred IT Destination


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)

200,000 40 million 200 times

Growth of IT in AP in the last Decade (1998-2008)


Recent history of IT initiatives in the State

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

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

Goal

Andhra Pradesh – Land of OpportunitiesAndhra Pradesh – Land of Opportunities

Political Vision & Commitment


• 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

Overview - AP

•Area: 2,75,000 sq.kms•Population: 76 million


Minister for IT&C

Assisted by Spl. Secretary, Director/ Jt. Directors drawn from Govt. and professionals taken on contract

Officer-oriented Department HODs - APTS, EDS, SAPNET, IEG

IT & C Department ORGANIZATIONAL STRUCTURE

SECRETARYE-Governance, IT Infrastructure & IT Communications

PRINCIPAL SECRETARYIT Policy – planning & formulation, IT Promotion, IT HR


IT Promotion - STRATEGIES

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.


AP IT EXPORTS ($ mil)

12 26.8 56.8 114.8211.8 401.4581.4 733.6

1005

1654

2504.2

3716.4

5224.4

0

1000

2000

3000

4000

5000

6000

95-96 96-97 97-98 98-99 99-00 2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

41 %


50%

26%

24%

IT ServicesITES/BPOEnterprise Appl & Others

AP Exports – Segment wise

Andhra Pradesh – Land of OpportunitiesAndhra Pradesh – Land of Opportunities

Karnataka55000

30%

Maharashtra35374

20% Tamil Nadu28295

16%

NCR2738815%

Others72264%

ANHDRA PRADESH26122

15%

Exports 07-08 –AP/Other States


Existing Infrastructure – IT Parks

• Cyber Tower550,000 sq. ft. of built-up space

• Cyber Gateway860,000 sq.ft. of built-up space

HITEC City – Developed by L&T

Cyber Pearl• Total planned built-up space

of 500,000 sq.ft• First phase of 250,000 sq. ft.

inaugurated in October, 2004• In partnership with Ascendas,

Singapore



RMZ Futura

• Covering 5.24 acres• 350,000 sq. ft. of built-up space• Occupants include Deloitte & Google

Cyber Gateway

• Covering 8 acres of land• 8,66,000 sq. ft. of built-up space• Occupants include GE, ICICI Bank



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


Deccan Park (TCS)

•TCS initiative covering 11 acres•320,000 sq.ft development center•Employs 3,200 IT professionals

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



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.



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


Policy - Tier II Cities Mega Project Incentives:

For projects employing above1000 or investment of US $10 million above,Negotiable Package of Incentives & Facilitation.

SME & Tier-II IncentivesAdditional Incentives for Small & Medium Enterprises and ICT companies moving to

Tier-II locations in the State

AP– ICT Policy


AP–IT Policy -General Incentives

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


AP–IT Policy -Tier-II Location Incentives

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


AP–IT Policy SME - Incentives

Creation of Incubation Centres to provide ready built up space to start up companies, SMEs at affordable cost.

25% rebate on power tariff for the first three years of the operations

50%Reimbursement of Exhibition Subsidy

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.

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


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, dutiesand tariffs.

IT SEZs are created in a minimum area of 25 acres(10 ha) with acommitment of building up a minimum processing area(IT office space) of 1million 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

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


Out of 295 IT SEZ approved in the Country, 59 ITSEZs are coming up in the State of AP and wouldcreate more than 100 million sft in the next 3years

Already 12 IT SEZs completed 1st phase of about2 million sft and are functioning IT SEZs

15 IT Parks are coming (less than 25 acres) andwould be crating about 2 million sft)

IT office infrastructure in Pipeline


Visakhapatnam 2 IT SEZs in 142 acresVijayawada IT Towers/SEZ in 30 acres with APIIC Incubation Centre in 2 acres with STPITirupati: 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 25.73aresWarangal: IT SEZ in 35.8 acresKadapa: IT SEZ in 52.76 acres

Tier –II Locations


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 3,294NCR 125.34 4.65 313,059 175,000 12,534 10,027

Hyderabad 43 3.71 317,950 175,000 4,300 3,440Bangalore 53.06 4.5 391,323 175,000 5,306 4,245Chennai 38.57 4.75 269,035 165,000 3,857 3,085Kolkata 55.85 3.2 282,051 135,000 5,585 4,468

In occupancy cost, Hyderabad is lowest after Chennai and PuneIn Power Cost, Hyderabad is lowest after KolkataIn Salaries Cost, Hyderabad is lowest after Kolkata and ChennaiIn Per Seat Cost, Hyderabad is lowest after Chennai and Pune

Source:- Cushman & Wakefield


Hyderabad

Silicon Valley

Every 4th IT professional in Silicon Valley is an Indian

Every 4th Indian IT professional in Silicon Valley is from AP

AP – Talent Pool


Large pool of English-speaking graduates

173,032 engineers/year

31,398 seats/year

43,045 seats/year

527- Engineering Colleges

436 - MBA Colleges

637-MCA Colleges

428,811 graduates/year1847- U.G. Colleges

AP – Talent Pool

174 - Polytechnic Colleges 40,785seats/year


MS in IT - programme offered in association with Carnegie Mellon University

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

Graduate Programs in I.T. - Supported by Microsoft, Motorola, IBM, Oracle, Satyam,etc

AP State : Human Talent Base

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 30 affiliated and 5 deemed Universities recognised by UGC in the State.

Jawahar Knowledge Centre – Initiative of Industry/University/Government - imparts industry grade skills to fresh Graduates & place them in IT Industry

Andhra Pradesh – Land of OpportunitiesHyderabad

Dubai

AP - Globally Connected


Hyderabad - Connectivity

Intercity Transport• Excellent service of buses• Network of smooth, wide and clean roads• Two line, 74 km intercity commuter rail, • Multi-Modal Transport System (MMTS)

Rail and Road• Headquarter of South Central Railwaysof Indian Railways

• Regular luxury bus services connecting major Indian cities

AIR• Connected to USA, UK, Amsterdam, Singapore, Colombo,

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

http://www.singaporeair.com/saa/index.jsp?JSESSIONID=DpD975Hv3lH4Q3CHxGq1QDGvchC7pXHhspFFXgxYyjLJWnHH5vLl!1048573590!-1512832637�


Mucherla150 Acres

TO NIZAMABAD(RLY.LINE)

OUTER Ring Road (160 KM) NJawharnagar

GENPACT and Proposed DIGITAL CITY

INTERNATIONALAIRPORT

OSMANSAGAR

Hitec city

HIMAYATSAGAR

HUSAINSAGAR

TO MUMBAIN.H 9

TO MUMBAI

TO VIKARABAD

TO BANGALOREN.H.7

TO SIDDIPET

Mamidpalli750 acres

Adibatla115 acres

SW

Infosys

Kokapet

IT Layouts

Pvt IT Parks/SEZs

TO NAGAPUR (N.H 7)

Hyd Metro Area


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

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.

Infrastructure In Hyderabad


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.

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).

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

Infrastructure In Hyderabad


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


Microsoft looks at Hyderabad as one of the most important centers internationally.

- Bill Gates, Microsoft

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

"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

AP – The Most Preferred IT Destination


“GE will always evaluate Hyderabad for new businesses”Jack WelchFormer CEO General Electric

“Hyderabad is India’s next Silicon Valley”Kenichi Ohmae

Formerly Principal, McKinsey & Co, Tokyo

“ Andhra Pradesh is the Most Business Friendly State in South Asia”

World Bank Report - Doing Business in South Asia 2007

Andhra Pradesh :The Most Preferred IT destination


Microsoft IBM Oracle Computer Associates Convergys Keane Cordys Motorola Nokia NVIDIA Intergraph Kanbay CSC

Honeywell Infosys TCS Wipro Visualsoft Infotech Intelligroup Sierra Atlantic Polaris Mentor Graphics Qualcomm NCR

Google HSBC HDI FranklinTempleton Bank of America Verizon UBS Analog Devices Cognizant Tech Cadence Connexant Invensys Synopsis Patni Sonata

Andhra Pradesh : The Most Preferred IT destination

Home to leading IT companies


Thank YouAjay Mishra, IAS

Principal Secretary to the Government

Email:- [email protected]: www.apit.gov.in

http://www.apit.gov.in/�

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