Andhra Pradesh, known as the rice bowl of India, is now attracting the second highest FDI in the country. The state achieved export revenue of three billion dollars in 2005-06, up 51 per cent, higher than the national average of 36 per cent. It was at the Indus Entrepreneurs (TIE) luncheon meeting held last week at Santa Clara, San Francisco, that Andhra Pradesh Chief Minister YS Rajasekhara Reddy shared this while talking about the investment potential of the state.
In Hyderabad and abroad, it is becoming increasingly common to hear people talk about the new infrastructure projects in the state, be it the new international airport at Shamshabad, or the Outer Ring Road project or the Indian Institute of Technology.
“Hyderabad has proved itself,” avers BP Acharya, VC and MD, APIIC when asked about the global standing of the city and the umpteen international ventures. “It does not need that much marketing anymore. We are capitalising on the reputation the city has and none less than
the World Bank calls it the ‘most business-friendly city in India’.” With several new projects, such as the Business District and Trade Towers at Manchirevula, which will be a compact business district like Manhattan and house India’s tallest building, this image is likely to be reinforced.
“Looking back at the past three years, the core achievement is that we (APIIC) have grown by 800 per cent - from 50-60 crores to about a 1000 crores.” He attributes this to the aggressive and proactive marketing done not only for Hyderabad, but for the entire state. Rapid implementation of proposals is what has led to the business-savviness of the city.
Also, decisions taken by the government have had powerful spiralling effects. Take the Krishna Project for instance. “180 MGD (million gallons per day) of water is a big achievement for any city in 3-4 years,” says Acharya. It has lead to attracting investments like Fab City, as the chip industry requires that kind of water supply.

PUBLIC-PRIVATE PARTNERSHIP CONCEPT

It is the Public-Private Partnership concept that has really worked for the city and the state. Limitations of public projects in the past in terms of inefficiencies have been curtailed and the technology adaptation, financial management, operational efficiency and marketing network of global private partners has brought in world-class infrastructure projects.
Though it began with the Hitec city in 1996 as a concept, it has been the 110-acre Mind Space Project (Raheja Corp and APIIC), the Integrated Township and Convention centre (Emaar Properties and APIIC) and Fab City (Sem India and Govt of AP) that set the tone of Public-Private projects.

BIOTECHNOLOGY

Though the technology sector and its impact on the state is undeniable (read the accompanying piece, "A Magical Space called IT"), AP has been the front-runner in the promotion and development of the biotech sector too. The first Knowledge Park, Biotech Park, Biotech Incubator, Biotech Venture Capital Funding and Agri Science Park were all set up here. A stream of Indian and multinational companies have established their bases here, as all the infrastructure requirements of this sector were found readily available. Thus, the “business-friendliness” of the city spans several sectors.

URBAN DEVELOPMENT

A city is as good as its urban development bodies. Planning, urban development control, infrastructure development and environmental control - the four major focus areas for urban development bodies have been looked at significantly.
The master plan of the city, which was prepared in 1980 has had a timely revision to incorporate the new realities of urban development in state planning and decision making.
“To assist in developmental control, the building rules and layout approval processes have been simplified. The Outer Ring Road project (see box) is perceived to have the potential to transform the city. At least six other satellite townships, like Tellapur, which help decongest the main city and inspire corporates with vast open spaces, are on the anvil,” says Jayesh Ranjan, VC, HUDA. HUDA is also all set to clean up Hussain Sagar, having similarly dealt with 25 smaller water bodies. That the city is greener than ever before is stating the obvious.

TOURISM

Business-friendliness and pleasure seem to go hand-in-hand. AP now tops the list with the highest domestic tourism for any state.
The goodwill factor of the state has encouraged people from all over the country to tour this southern wonder. There is considerable influx from the global business and casual traveller too, given the city’s rising status on the global tourist’s map.
Much more can be expected from the current tourism policy which looks at the budget traveller, rural tourism, preservation of historical monuments and aggressively markets the south as a tourism destination.
There has been a spiralling impact of the sound planning and infrastructure on the tourism circuits and what is now called for, as Chitra Ramachandran, Secretary Tourism and Culture, says, is “destination management and marketing”.

GROWTH SPREADS TO THE STATE

Globally, a business savvy city is generally surrounded by vast hinterlands of planned growth. This is being planned for AP too. Consider this. Out of the total of 10,954 acres of land pertaining to SEZs, 600 acres of private land was actually acquired for this purpose.
Take for example, Vizag city. The Jawaharlal Nehru Pharma City with its project area of 2200 acres and an investment of Rs 315 crores already has 60 units covering about 800 acres and is a sector specific pharma SEZ. The huge APSEZ in Vizag with its 5,705 acres has tasted success with Apparel City, oil refinery projects and more.

HMDA - THE FUTURE CITY

The Hyderabad Metropolitan Development Authority (HMDA) is the big plan to create the metropolis we all need. With this, Hyderabad city will be spread over 6300 sqkm and will extend to 54 mandals located in five districts. Hyderabad today has an estimated population of nearly 80 lakhs spread over almost 2300 sq km. As the development and infrastructure of the city has far exceeded the urban development authority jurisdiction, this is HUDA’s blue print for the city of the future Even the best cities and states in the world have contentious issues to deal with. But at this moment, there is a ring of optimism and achievement which we could all be proud of. Maybe it is time to call Andhra Pradesh Swarna Bhoomi, like it was referred to 2500 years ago.

Proposed New SEZs

Hyderabad - Gems & Jewelry Park - 200 acres - to promote diamond cutting, polishing and trading - now operational An Electronic Hardware SEZ at Maheswaram Bio Tech SEZ at Karkapatla in Medak district Leather Footwear SEZ at Tada/ Mambattu in Nellore district Multi Product SEZ - Sri City - at Satyaveedu and Tada Building Products SEZ at Mankhal in RR district Aerospace SEZ at Adhibatla (proposed)

* WORLD BANK's RATINGS FOR HYDERABAD (www.worldbank.com)

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