Task of post-bifurcation infrastructure development and opportunities for investments.

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“With the bifurcation, most of the educational institutions, Services, and companies that were a part of Hyderabad became a part of Telangana, we were left with little to work with. I knew that the traditional approaches wouldn’t work here. So I began working with what was there and what I had power over – the policies that would ease and help Entrepreneurship,” said CM of Andhra Pradesh Chandrababu Naidu at the CII PARTNERSHIP Summit in Visakhapatnam, Andhra Pradesh, on January 11, 2016.
To enable the Ease of Doing Business, the government has enabled time-bound clearances for several industries. The revised policy states that all businesses get a government clearance to set up business within 21 days through a single desk. If they don’t receive the same it is deemed approved.
Andhra Pradesh was ranked as the second easiest Indian state after Gujarat to do business, by a survey by KPMG and World Bank. The state aims to be recognised as one of the top three Indian states in the country by 2022 and also an internationally developed state by 2029.

Developing the Infrastructure-2/”>INFRASTRUCTURE to attract investments

In the past years, over 1,500 big and small industries have signed up to do invest in Andhra Pradesh. One of the key initiatives taken by the state to attract Investment is the Vizag Chennai Industrial Corridor, which is believed to attract investment of close to 17 billion dollars, and will create 20,000 jobs.
Teresa Kho, Asian Development Bank Country Director, India Resident Mission, said that the bank has collaborated towards supporting the AP government in connectivity and infrastructural development.
“The VCIC has the potential to increase the GDP of the six connected districts by six times, from Rs 2,000 billion in 2015 to Rs 11,600 billion by 2035.”

Andhra Pradesh aims to be the future of India’s development

Jayant Sinha, Minister of State for Finance, believes that Andhra Pradesh will be the future economic engine of India with a GDP Growth rate 14–15 per cent. Although globally there seems to be an economic slow down with 2.9 per cent growth India is clocking close to seven per cent.
Andhra Pradesh aims to capitalise on this growth. Despite the disadvantages that are present, their natural coastline at Visakhapatnam will work as one of their biggest advantages. Industries like Fisheries-2/”>Fisheries that are already strong need to be leveraged.
One of the biggest needs for industries to thrive and survive is electricity. state has confirmed to ensure 24/7 power supply in the state by the end of the year. The total investment commitments made in AP in the ongoing summit has touched over Rs 3.6 lakh crores.
These investments run over retail development, petrogas chemicals, beach sand mining projects, IT industries, and RENEWABLE ENERGY projects.

Andhra Pradesh (AP) is located in the Southern peninsula of India. The state of is bound by Chhattisgarh on the north, Odisha on the northeast, Telangana and Karnataka on the west, Tamil Nadu on the south, and the Bay of Bengal on the east.
The erstwhile state of Andhra Pradesh has been bifurcated into two states, Telangana and residuary Andhra Pradesh (Seemandhra), by the Andhra Pradesh Reorganisation Act, 2014 or the Telangana Act. The act consisted of the aspects of division of assets and liabilities, the boundaries of the proposed new states and status of the capital city Hyderabad after the separation of the state.
The state has well-developed social, physical and industrial infrastructure and virtual connectivity. It also has good power, airport, IT and port infrastructure. At current prices, Andhra Pradesh’s Gross State Domestic Product (GSDP) was estimated at US$ 124.73 billion in 2017-18AE. Between 2011-12 and 2017-18AE, the Average annual GSDP growth rate was 13.33 per cent.
The state has attracted Foreign Direct Investment (FDI) Equity inflows worth US$ 16.487 billion during the period April 2000 to June 2018, according to data released by Department of Industrial Policy and Promotion (DIPP).
As of July 2018, the state had 19 operational SEZs across diversified sectors which include textiles and apparel, Food Processing, footwear and leather products, multi-product, pharma, IT SEZs etc.

Seemandhra, comprising Rayalaseema and coastal Andhra, has most of the power projects of undivided Andhra Pradesh. Coal-based power Plants are mostly located in the state due to proximity to the Ports. As of October 2018, Andhra Pradesh had a total installed power generation capacity of 23,674.17 MW.
It is the first state in the country to have enacted the Industrial Single Window Clearance. The Act made it compulsory for new industries to register with the single-window to obtain clearances quickly. It also simplified procedures for getting industrial clearances. The state also has separate acts for development in sectors such as solar power, electronic hardware and food processing.
The state has a large coast line of nearly 974 kms, temple destinations, lush green forests and spicy cuisine which have led to increase in domestic tourism in the last few years. Andhra Pradesh is one of the largest producers of brackish water shrimps and freshwater prawns.

Recent Developments:

In August 2018, Chinese phone components maker Holitech Technology Company decided to invest Rs 1,400 crore (US$ 200 million) for setting up of a facility which will manufacture five types of smartphone components exclusively for Xiaomi India.
Government of India has given ‘in-principle approval’ for setting up of a greenfield airport at Kurnool. The airport, dubbed Orvakal Airport, will be built with an investment of US$ 34.6 million and will have capacity of 1.45 million passengers per annum. The construction of the airport is expected to be completed by December 2018. The airport is expected to be unveiled by January 2019.
Production of crude oil and natural gas in the state was recorded to 295 thousand metric tonnes and 842 mcm during April 2017-February 2018, respectively.
Oil major Indian Oil is planning to invest Rs 827 crore (US$ 128.32 million) in Andhra Pradesh. Out of the total investment, Rs 500 crore (US$ 77.58 million) will be used to set up a state-of-the-art oil terminal in Nalgonda.

Key Sectors:

Andhra Pradesh is home to many global and national pharma players and various companies have set up their manufacturing hubs in different cities of the state. Exports of pharmaceuticals^ from the state stood at US$ 1.41 billion in FY18 and reached US$ 752.99 million in FY19 (up to September 2018).
The presence of rich climatic and Soil conditions make Andhra Pradesh a major agricultural belt. Few of the leading crops produced in the state include rice, chilly, oilseeds, Cotton, pulses and gram. Moreover, the state is also home to a thriving fisheries Industry and ranks first in the production of fish and shrimp in India and contributes more than 70 per cent of the country’s cultures shrimp production.
According to the Director General of Hydrocarbons (DGH), Andhra Pradesh has huge oil & natural gas reserves. The state’s Krishna-Godavari basin, spread over an area of nearly 52,000 sq km, has a total hydrocarbon resource base of 1,130 million metric tonnes. To promote investments in the industry, Andhra Pradesh Petroleum, Chemicals & Petrochemicals Investment Region (PCPIR) is being set up.
Andhra Pradesh is known for its pristine beaches, sacred places of worship, lush green forests, spicy cuisine & hospitable people.

Chief exports

Andhra Pradesh is a traditional exporter of spices, processed seafood, garments, artificial jewelry, and leather goods. The state is also one of the top exporters of Software, and tobacco products.

Power capacity

Andhra Pradesh has the second largest power generating utility in the country with an installed capacity of around 23,000 MW. The two cheapest sources of thermal power generation – coal and natural gas – are found in abundance.
They are several large power plants established in the state. The major ones are located at Visakhapatnam, Vijayawada, Kakinada, Krishnapatnam, and Cuddapah.

Major industrial cities

Andhra Pradesh has 13 districts – out of these nine are located on the seacoast and have manufacturing and export industries as their central industries. The major industrial cities in the state are:

Visakhapatnam

The city has several private and public-sector establishments producing large-scale industrial goods such as steel, metals, petroleum, polymers, Fertilizers, and heavy engineering equipment. The presence of public sector enterprises such as Vizag Steel (RINL), BHPV, Vizag Shipyard, and HPCL have made the city predominantly an industrial one.
Over the years, the information technology (IT) sector has also gained prominence in the city. Andhra Pradesh is one of the nerve centers for manufacturing, IT, as well as tourism and services.
Vishakhapatnam is also home to several institutes of excellence in research and development, Education, hospitality, and governance.

Kakinada

Kakinada is known for its anchorage port and a deep-water port. The city has a 10,000-acre multi-product SEZ and the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR). It also has multiple fertilizer refineries and produces a large scale of natural gas. As a result, a number of gas-based thermal power projects have come up near Kakinada in recent times.
The city’s chief exports include seafood and related products. It also produces agricultural products like rice and corn, edible oils, processed food products, chemicals, and biofuel.

Vijayawada

Vijayawada is famous for processing of agricultural products, automobile body building, hardware, textile, consumer goods, and small-scale industries.

Connectivity

Known as ‘Gateway to the East’, Andhra Pradesh has established itself as one of the major connection points with important world markets in Asia such as Hong Kong, Singapore, Japan, and China.
Currently, Andhra Pradesh has 14 notified ports out of which six are operative. Visakhapatnam port is among the country’s most premier ports in terms of total cargo traffic handled, with a total capacity of over 65 million tons (mt) per annum. Gangavaram port, on the other hand, has a deep draft capable of handling the largest of vessels. In addition to these, there two operational non-major ports — Kakinada, with a capacity of 10 mt and Krishnapatnam with 15 mt.
Besides, AP has five operational Airports – Visakhapatnam, Rajahmundry, Vijayawada, Tirupati, Kadapa, and Puttaparthi; new greenfield international airport at Bhogapuram (Visakhapatnam district), Dagadarthi (Nellore district); and domestic airport at Orvakal (Kurnool district).
It also has a 120,000 km of road Network, 7,118 km of national highways running through the length and breadth of the state, 7,040 track km of rail network, and about 888 km of the national waterway.

Investment opportunities

Andhra Pradesh is among the top ten most preferred destinations for investment in India. The state is known for its business-friendly policies and simplified administrative procedures.
It has several special economic zones (SEZs), and industrial corridors offering world-class infrastructure to manufacturing and service industries.

Special economic zones

There are 114 approved SEZs in the state – of these 75 are notified, and 27 have become operational. The SEZs are present across diversified sectors including textiles and apparel, food processing, footwear and leather products, multi-product, pharmaceutical, and information technology, among others.

Industrial parks:

Much of the investment in Andhra Pradesh goes into Sri City and Anantapur district. Sri City, located just 65 km north of Chennai, is a 7,000-acre private industrial park. The park is home to over 80 global companies with a cumulative investment of Rs 25,000 crore (Rs 250 billion).

Other industrial parks located in the state are listed below:

Food Processing Industrial Park At Kuppam, Chittoor District;
Mega Industrial Park At Parwada, Visakhapatnam;
Visakhapatnam Export Processing Zone; and Visakhapatnam Exim Park.

Industrial corridors

The government is building three industrial corridors across the state: Visakhapatnam Chennai Industrial Corridor, covering 11 districts of the state; Chennai Bengaluru Industrial Corridor, with the industrial node at Krishnapatnam in Nellore district; and Kurnool Bengaluru Industrial Corridor, with the industrial node at Orvakal in Kurnool district.
These corridors offer a massive opportunity for the establishment of manufacturing units across the following industrial sectors: pharmaceuticals, electronics, machinery, hi-tech engineering, electronics, automobile, food processing, textiles, building materials, and machinery parts.
Andhra Pradesh also offers procedural ease for facilitating foreign direct investments (FDIs). Over the years, the state has recorded a healthy FDI inflow, thanks to Fortune 500 companies, which have set up operations in the state. According to data released by the DIPP, the state attracted FDI equity inflows worth US$ 16.487 billion during the period April 2000 to June 2018.

Government incentives

An investor-friendly state, Andhra Pradesh, has initiated several policy measures and incentives to provide a conducive business Environment to investors. Some of these are given below:
Enactment of the industrial single window clearance policy – the single window system, mainstay of the reforms, is an online platform available 24×7 for obtaining necessary regulatory clearances. Thorough the e-platform, companies can get all necessary clearances to establish and operate an industry within 21 working days.
Self-certification based approvals – the State Government grants as many as 15 approvals on the spot based on self-certification by the investor.
Online application and sanction of incentives – the transparent process of applying and sanctioning of industrial incentives
Sector-specific policies – the state government along with the federal government offers industry-specific incentives under various schemes to sectors such as automobiles and auto components, petroleum, chemicals, (including fertilizers) and petrochemicals, energy, leather, agro and food processing, textile and apparel, electronics and IT, and mineral based industry. The incentives range from capital and interest subsidy, power, stamp duty, and tax reimbursements, to financial assistance for patent registration.
International desks – the government has set up international desks to facilitate assistance to foreign investors.
Joint inspections – to ensure investor convenience, inspections of several departments such as labor and factories are combined into one inspection.

Post-bifurcation Infrastructure Development is the process of building and maintaining the physical and social infrastructure that is needed to support a Society after it has undergone a major political or Social Change. This can include the construction of new roads, bridges, and airports, as well as the development of new schools, hospitals, and other social services.

There are many opportunities for investments in post-bifurcation infrastructure development. Governments and private investors can provide funding for the construction and maintenance of new infrastructure, as well as for the development of new technologies and services. These investments can help to create jobs, boost economic growth, and improve the Quality Of Life for people in the affected communities.

However, there are also challenges associated with post-bifurcation infrastructure development. One challenge is that it can be difficult to coordinate the efforts of different government agencies and private investors. Another challenge is that it can be difficult to ensure that the new infrastructure is actually used by the people who need it.

Despite these challenges, post-bifurcation infrastructure development is an important process that can help to rebuild communities and create a more prosperous future.

Here are some specific examples of post-bifurcation infrastructure development:

In the aftermath of the 2004 Indian Ocean tsunami, the United Nations and other international organizations provided funding for the construction of new roads, bridges, and airports in the affected countries. This infrastructure helped to restore transportation links and facilitate the delivery of humanitarian aid.
After the 2010 Haiti earthquake, the United States and other countries provided funding for the construction of new schools, hospitals, and other social services in Haiti. This infrastructure helped to improve the quality of life for Haitians and to support the country’s economic recovery.
In the aftermath of the 2011 Fukushima Daiichi nuclear disaster, the Japanese government provided funding for the construction of new power plants and other infrastructure to support the country’s energy needs. This infrastructure helped to ensure that Japan had a reliable Source Of Energy while the Fukushima Daiichi nuclear power plant was being decommissioned.

These are just a few examples of the many ways in which post-bifurcation infrastructure development can be used to rebuild communities and create a more prosperous future.

Here are some of the key challenges associated with post-bifurcation infrastructure development:

Coordination: It can be difficult to coordinate the efforts of different government agencies and private investors. This can lead to delays and cost overruns.
Use: It can be difficult to ensure that the new infrastructure is actually used by the people who need it. This can lead to waste and inefficiency.
Sustainability: It can be difficult to ensure that the new infrastructure is sustainable in the long term. This can lead to environmental problems and financial costs.

Despite these challenges, post-bifurcation infrastructure development is an important process that can help to rebuild communities and create a more prosperous future.

What is infrastructure?

Infrastructure is the basic physical and organizational structures and facilities needed for the operation of a society or enterprise, such as roads, bridges, water supply, sewers, electrical grids, telecommunications, and transportation systems.

What is bifurcation?

Bifurcation is a branching or forking of a single line into two or more lines. In the context of infrastructure, bifurcation refers to the process of dividing a single infrastructure system into two or more systems.

What are the challenges of post-bifurcation infrastructure development?

The challenges of post-bifurcation infrastructure development include:

The need to coordinate the development of two or more infrastructure systems. This can be difficult, as the systems may have different needs and priorities.
The need to ensure that the new infrastructure systems are compatible with each other. This can be difficult, as the systems may have been designed by different teams using different standards.
The need to secure funding for the development of the new infrastructure systems. This can be difficult, as the systems may not be seen as a priority by governments or other funding agencies.

What are the opportunities for investments in post-bifurcation infrastructure development?

The opportunities for investments in post-bifurcation infrastructure development include:

The opportunity to develop new infrastructure systems that meet the needs of the two or more communities that are now separated by the bifurcation. This could include developing new roads, bridges, water supply systems, and other infrastructure.
The opportunity to improve the efficiency and effectiveness of the existing infrastructure systems. This could include upgrading the existing roads, bridges, water supply systems, and other infrastructure.
The opportunity to create new jobs and Economic Development opportunities in the communities that are now separated by the bifurcation. This could be done by developing new businesses and industries in the area.

What are the risks associated with investments in post-bifurcation infrastructure development?

The risks associated with investments in post-bifurcation infrastructure development include:

The risk that the new infrastructure systems will not be used or needed. This could happen if the communities that are now separated by the bifurcation do not grow or develop as expected.
The risk that the new infrastructure systems will not be compatible with the existing infrastructure systems. This could lead to problems with the operation and maintenance of the systems.
The risk that the new infrastructure systems will not be able to withstand natural disasters or other events. This could lead to damage to the systems and disruption to the communities that rely on them.

What are the factors to consider when making an investment in post-bifurcation infrastructure development?

The factors to consider when making an investment in post-bifurcation infrastructure development include:

The needs of the communities that are now separated by the bifurcation. What are the infrastructure needs of the communities? What are the priorities of the communities?
The availability of funding. Is there funding available for the development of the new infrastructure systems? What are the terms of the funding?
The risks associated with the investment. What are the risks associated with the investment? How can the risks be mitigated?
The potential returns on the investment. What are the potential returns on the investment? How can the returns be maximized?

Which of the following is not a task of post-bifurcation infrastructure development?
(A) Building new roads and bridges
(B) Expanding the power grid
(C) Improving water and sanitation facilities
(D) Investing in education and healthcare
Which of the following is not an opportunity for investment in post-bifurcation infrastructure development?
(A) Building new factories
(B) Developing new housing projects
(C) Investing in renewable energy
(D) Expanding the tourism industry
Which of the following is the most important factor in determining the success of post-bifurcation infrastructure development?
(A) The availability of funding
(B) The quality of the infrastructure
(C) The efficiency of the government
(D) The participation of the private sector
Which of the following is the most likely impact of post-bifurcation infrastructure development?
(A) An increase in economic growth
(B) A decrease in Unemployment
(C) An improvement in the quality of life
(D) All of the above
Which of the following is the most likely challenge to post-bifurcation infrastructure development?
(A) Corruption
(B) Bureaucracy
(C) Political instability
(D) All of the above
Which of the following is the most likely outcome of post-bifurcation infrastructure development?
(A) A more prosperous and developed region
(B) A more equitable and just society
(C) A more sustainable and environmentally friendly region
(D) All of the above