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Information Technology & Communications Department GOVERNMENT OF ANDHRA PRADESH Welcomes WORLD BANK TEAM FROM AFRIC

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.

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Information Technology & Communications Department GOVERNMENT OF ANDHRA PRADESH Welcomes WORLD BANK TEAM FROM AFRIC

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  1. Information Technology & Communications Department GOVERNMENT OF ANDHRA PRADESH Welcomes WORLD BANK TEAM FROM AFRICA 17-02-2009

  2. Advantage Andhra Pradesh • IT Scenario in The state • Infrastructure • Human resources • Leisure and quality of life • Most Preferred IT Destination

  3. Growth of IT in AP in the last Decade (1998-2008) IT Initiatives in the last decade

  4. 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

  5. Political Vision & Commitment

  6. 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

  7. IT & C Department ORGANIZATIONAL STRUCTURE 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

  8. 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.

  9. AP IT EXPORTS ($ mil) 41 %

  10. AP Exports – Segment wise

  11. Maharashtra 35374 20% Tamil Nadu 28295 Karnataka 16% 55000 30% NCR 27388 Others 15% 7226 4% ANHDRAPRADESH 26122 15% Exports 07-08 –AP/Other States Andhra Pradesh – Land of Opportunities

  12. Cyber Tower 550,000 sq. ft. of built-up space • Cyber Gateway 860,000 sq.ft. of built-up space • 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 Existing Infrastructure – IT Parks HITEC City – Developed by L&T

  13. 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

  14. 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

  15. Existing Infrastructure – IT Campus • Deccan Park (TCS) • TCS initiative covering 11 acres • 320,000 sq.ft development center • Employs 3,200 IT professionals

  16. 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

  17. 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.

  18. Existing Infrastructure – IT Campus • 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 I Labs Building

  19. AP– ICT Policy 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 Incentives Additional Incentives for Small & Medium Enterprises and ICT companies moving to Tier-II locations in the State

  20. 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

  21. 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

  22. 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

  23. 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 • 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

  24. 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)

  25. 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

  26. INTER STATE COMPARISON ON IT/ITES OPERATIONS SET UP COSTS

  27. 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

  28. AP – Talent Pool 1847- U.G. Colleges 428,811 graduates/year Large pool of English-speaking graduates 173,032 engineers/year 527- Engineering Colleges 637-MCA Colleges 43,045 seats/year 436 - MBA Colleges 31,398 seats/year 174 - Polytechnic Colleges 40,785seats/year

  29. 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 • 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.

  30. Dubai Hyderabad AP - Globally Connected

  31. Hyderabad - Connectivity • 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 • Rail and Road • Headquarter of South Central Railways • of Indian Railways • Regular luxury bus services • connecting major Indian cities • 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)

  32. Hyd Metro Area TO NIZAMABAD (RLY.LINE) TO NAGAPUR (N.H 7) TO SIDDIPET OUTER Ring Road (160 KM) Jawharnagar GENPACT and Proposed DIGITAL CITY N TO MUMBAI N.H 9 TO MUMBAI Hitec city Infosys HUSAINSAGAR OSMANSAGAR Kokapet TO VIKARABAD HIMAYATSAGAR Adibatla 115 acres SW IT Layouts Pvt IT Parks/ SEZs Mamidpalli 750 acres INTERNATIONAL AIRPORT TO BANGALORE N.H.7 Mucherla 150 Acres

  33. Infrastructure In Hyderabad • 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.

  34. 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

  35. 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

  36. AP – The Most Preferred IT Destination • 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

  37. 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

  38. Andhra Pradesh : The Most Preferred IT destination Home to leading IT companies • Google • HSBC HDI • FranklinTempleton • Bank of America • Verizon • UBS • Analog Devices • Cognizant Tech • Cadence • Connexant • Invensys • Synopsis • Patni • Sonata • Honeywell • Infosys • TCS • Wipro • Visualsoft • Infotech • Intelligroup • Sierra Atlantic • Polaris • Mentor Graphics • Qualcomm • NCR • Microsoft • IBM • Oracle • Computer Associates • Convergys • Keane • Cordys • Motorola • Nokia • NVIDIA • Intergraph • Kanbay • CSC

  39. Thank You Ajay Mishra, IAS Principal Secretary to the Government Email:- prlsecy_itc@ap.gov.in Website: www.apit.gov.in

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