#1EDB ANDHRA PRADESH ECONOMIC DEVELOPMENT BOARD GOVERNMENT OF ANDHRA P PRADESH ఆంధ్ర ప్రదేశ్ आंध्र प्रदेश सत्यमेव जयते Govt of Andhra Pradesh Overview of Chemicals & Petrochemicals Ecosystem, Ease of Doing Business and Opportunities 1#2Andhra Pradesh - Driving India's Transformation Gateway to the East with access to 6 Seaports, 6 Airports (3 international) and Domestic demand centers EA 8th EDB ANDHRA PRADESH ECONOMIC DEVELOPMENT BOARD Largest state in India spread across 162,968 sq km Billion USD GSDP 138 (current price) in 2019-20 974 Second longest coastline with 4 large Km 27% ports for Indo-pacific trade. Higher per capita income than national average iö *** 50% Targeted increase in urbanization from 35% 400 Industrial parks with pre-cleared land parcels, Plug and Play facilities 2#3Overview of Chemicals and Petrochemicals Sector in Andhra Pradesh Ideal destination to tap the USD 11 Bn worth India Opportunity in Petrochemicals and drive exports in Chemicals sectors 8% India's production value as on FY 2019-20 i.e., USD 11.9 bn EDB ANDHRA PRADESH ECONOMIC DEVELOPMENT BOARD $ USD 2.4 Billion Worth investments in Chemicals & Petrochemicals in AP 22% Growth in AP Exports with USD 2.1 bn as on FY 2019-20 VISHAKAPATNAM RAJAHMUNDRY VIJAYAWADA PRADESH ప్రభుత్వం Osabá zab Largest PCPIR in the nation spread across 640 sq.km between Vishakapatnam and Kakinada Companies covering Pharma, Organic and Inorganic chemicals, Specialty Chemicals, Industrial Gases, Agro-chemicals and Fertilisers Oil & Gas Exploration and Refinery Companies ओएनजीसी हिन्दुस्तान पेट्रोलियम गेल HP CAIRN ( इंडियन ऑयल Reliance G OnGc Industries Limited Energy for India IndianOil GAIL 0 1,130 MMTPA KADAPA I Home to maximum oil and gas reserves PUTTAPARTI UPL Major Agro-Chemical Companies B BAYER MOLN insecticides INDIA) LIMITED EXCEL MEGHMANI ORGANICS LIMITED Bayer CropScience 640 Sq.km Largest Petroleum, Chemicals and Petrochemicals Investment Region in India L 5,100+ Mega and MSMEs employing 1.2 lakh workforce TRUPATI Major Chemical Companies Galaxy Global Supplier to Global Brands PRAXAIR Making our planet more productive Pidilite ap asianpaints Leuris Berger Paint your imagination D THE LINDE GROUP ADITYA BIRLA CHEMICALS Covestro BASF#4Presence of Refineries and Availability of Feedstock Opportunity to build Self-sufficiency in Petrochemical Intermediates and drive downstream industries Natural Gas Pipeline by APGDC & IOCL APGDC ANA PRIČAS 19TH WUNION CORPORATIO 2 HALDIA PETROCHEMICALS LTD → ओएनजीसी OnGc • 1 हिन्दुस्तान पेट्रोलियम HP EDB ANDHRA PRADESH ECONOMIC DEVELOPMENT BOARD PRADESH ప్రభుత్వం sabá zab Brownfield expansion of HPCL refinery from current 8.33 MMTPA to 15 MMTPA Hydrocracker unit (FCHCU) with a capacity of 3.053 MMTPA as part of Visakh Refinery Modernization Project (VRMP) JV of HPCL & Total of France LPG cavern at Visakhapatnam Port for 60,000 MT and Crude Storage of 1.2 MMT - Integrated "Crude to Chemicals" Complex by Haldia Petrochemicals Ltd with capacities of – Refining capacity 9.5 mm TPA, Ethylene Cracker Complex 1.5 mm TPA and Aromatics (PX) 1.6 mmTPA Petrochemical production of Polymers (HDPE, LLDPE, PP), Chemicals (MEG, Paraxylene, Benzene, Butadiene etc) • ONGC Refinery of 0.1 MMTPA crude oil at Tatipaka, producing Naptha, High Speed Diesel, Superior Kerosene Oil, Reduced Crude Oil (इंडियन ऑयल IndianOil 3 • BPCL is setting up new Petroleum Oil (POL) Terminal with capacity of 1.61 lakh cubic meter for Receipt, Storage and Dispatch of Petroleum Products - Motor Spirit, Ethanol, High Speed Diesel and Bio-Diesel Bharat Petroleum • Receipt would come from BPCL Cochin crude oil refinery of 9.5 MMTPA Opportunities across end-user industries in Andhra Pradesh 12.4% Growth in Specialty Chemicals segment 12% Growth in Agro Chemicals & Fertilizers 7.5% Growth in Petrochemical products 2400+ units invested in Plastics, Polymers and Allied 4700+ Textiles unit invested within Artificial, Synthetic, Man Made Fiber, Grey Fabric, Polyester fabric, Agro-textiles Ranked #1 in Horticulture - Chillies, Cocoa, Lime, Papaya, and Tomato, Banana, Mango Ranked #2 in Agriculture in India, with 16000 FPUS 3 MTPA Integrated steel plant, downstream industries Sector-specific parks - Pharma, Electronics, Furniture 10,641 RBKs planned to supply seed, fertilizers & seedling to agriculture, Aquaculture and Horticulture#5Strong Port Infrastructure and Port-led Development With direct shipping calls from South East Asian economies to ports in Andhra Pradesh vis-à-vis ports on West coast, the transit time of around 2-3 days is saved A ■ ◉ ◉ New Ports Planned Machilipatnam Ramayapatnam Bhavanapadu Kakinada SEZ HYDERABAD VIJAYAWADA B Institutional AP Maritime Board for Rapid Development C Industrialization ☐ Port Based Clusters Desalination Plants for Assured Water Supply EDB ANDHRA PRADESH ECONOMIC DEVELOPMENT BOARD BHAVANAPADU PORT VISAKHAPATNAM 3620 #2 in Cargo handling capacity 150 MMT of Cargo per annum as on FY 2018- 19, targeted to 326 MMT VISAKHAPATNAM PORT PORT Capacity: 125 MMT PA 1 RAJAHMUNDRY KAKINADA DEEPWATER KAKINADA ANCHORAGE KAKINADA SEZ Cargoes handled: Iron ore, Coal, Crude oil, Petroleum products, LPG, Fertilizers, Liquid cargoes Connectivity: 4 lane 12 Km corridor between RAWA Visakhapatnam port to NH16 (golden quadrilateral) MACHILIPATNAM PORT KAKINADA PORT RAMAYAPATNAM PORT 2 Capacity: 14 MMT PA, upgradation to 27 MMT PA KADAPA PUTTAPARTI TRUPATI BENGALURU Legend Existing Ports KRISHNAPATNAM Dedicated berths for Petrochemical complex and Crude Oil refinery, Naphtha / Ethane, etc Liquid terminals to handle Very Large Crude & Ethane Carriers KRISHNAPATNAM PORT CHENNAI 3 Capacity: 54 MMT PA Two Dedicated Liquid Cargo Handling Berths of 17.5 meters for LPG/LNG Ships, POL, Chemicals, Speciality Chemical Ships Dedicated Liquid Storage for LPG, LNG, POL Products, Petrochemical Products, Speciality Chemicals, Chemicals And Edible Oil 5 Proposed Ports Airports#6Industrial Corridors and Industrial Water Supply Projects Only state in India to have 3 National Industrial Corridors, across 48,352 Acres of land bank Suitable Locations for Chemicals and Petrochemical Industry KAKINADA 4 HBIC approved in Aug 2020 5 Kakinada SEZ: 10,000 Acs Orvakal (9,300 Acs) Samarlakota Reservoir ■ NICDIT approved in Aug 2020 200 MLD Hyderabad Orvakal Mega Industrial Hub 74 MLD Mega Industrial Park, Kopparthy, KADAPA 6,914 Acs (NICDC - 4,085 Acs, APIIC-2829 Acs) Somersila reservoir 46 MLD NICDC: National Industrial Corridor 6 Bangalore Chennai Development Corporation Vizag-Chennai Industrial Corridor (VCIC) Chennai-Bangalore Industrial Corridor (CBIC) Hyderabad-Bengaluru Industrial Corridor (HBIC) EDB ANDHRA PRADESH ECONOMIC DEVELOPMENT BOARD Industrial Water Supply Co. Industrial Node 1 VCIC Nakkapalli: 4,316 Acs Rambilli: 2,532 Acs 24x7 Water VIWSCO Supply to GVMC Atchuthapuram 430 MLD 87 MLD 95 MLD Nakapallie Start up 6 MLD VCIC ■ I 2 Project Cost: INR 5,544 Cr Share: ADB 74%, GOAP 26% Progress: 41% Physical; 29% Financial CBIC: Krishnapatnam* *KRIS CITY FUTURE WORK LIFE 3 11,340 Acs. Nellore Kris City: 2,500 Acs Kandeleru reservoir • 112 MLD Naidupeta cluster 21 MLD *INR 2139.44 Cr approved by Cabinet Committee on Economic Affairs, GOI under CBIC Development The National Industrial Corridor Development dovetails into the PCPIR development, improving the connectivity further Presence of CETP, Access for marine outfall, Well connected and established logistics, Proximity to ports offers distinct advantage#7AP Industrial Policy 2020-23 & Special package of Incentives for Megal Industrial Hub at Kopparthy, YSR Kadapa District STAMP DUTY/ TRANSFER DUTY 100% Reimbursement 7 1 EDB ANDHRA PRADESH ECONOMIC DEVELOPMENT BOARD GOVERNMENT सत्यमेव OF HRA जयते INVESTMENT SUBSIDY . 15% FCI, upto INR. 20 lakhs • 20% FCI, upto INR 10 Cr 6 5 4 LAND CONVERSION 25% of Conversion charges About 4.9 Lakh Semi-skilled, 3.1 Lakh Skilled, and 12,000+ B.Pharm/ M.Pharm/Chemical Engineers Talent pool is available around potential locations on annual basis Tailor-made Incentives $ 白 3 2 • • INTEREST & LOGISTICS SUBSIDY 5% upto INR 1.5 cr per year, for 5 years 25% of cost on domestic transport, upto INR 50 lakhs PA for 5 years POWER SUBSIDY Rs. 1/- per unit for 5 years NET SGST 100% Reimbursement for 10 years, upto 100% of FCI Composite Lease cum Buy Model to de- risk investments and reduce upfront costs LAND PRICES POWER COST WATER COST € INR 2,000-2,250 F per sq. meter For Investment proposals generating employment for more than 2,000 or investment of INR 500 cr INR 6-7 per KwH 25-30% lower 33% lower INR 50-60 per KL Abundance and 40% lower 15-20% lower SKILL WAGE INR 8,000-10,000 per month#8PRADES Effective - Minimizing Cost of Doing Business First State to incorporate a government entity to provide effective mechanism for collection, transportation, storage, treatment, processing, delivery and disposal of the industrial and other wastes by industries Industrial Units EDB ANDHRA PRADESH ECONOMIC DEVELOPMENT BOARD GOVERNMENT OF HRA सत्यमेव जयते Authorized Recyclers 5 1 Waste Collection Disposal Delivery Economic Enabled by 2 Ministry of Transport, GoAP Transport On-demand Platform Business Model Network Storage 3 TSDF Facilities Captive Landfills Treatment Processing 4 CETP Facilities Captive Incinerators Cement Plants Co-processing Pre-Processing Facilities Reduces operational cost of industries by 18-20% and Cost of compliance towards Environmental, Social and Governance norms Online Waste Exchange Platform 2683 Waste Generators, • • 86 Waste Receivers 980 TPD Waste Generated and Disposed Salient Features 100% tracking of waste generation and disposal GPS Vehicle tracking for movement of waste Scrutiny and audit of waste ⚫ Safe disposal of toxic waste · Promote usage of recycled waste Promoting 6 R's of waste management- Reduce, Reuse, Recycle, Refurbish, Redesign and Remanufacture to protect environment#9Waste and Manifest Management - Service Charges for Waste Management With inputs and recommendations from BDMA, Cement Industries Association, CETPS, TSDFs, Pre-Processing units and Oil Reclamation (Recycling) units PRADES EDB ANDHRA PRADESH ECONOMIC DEVELOPMENT BOARD GOVERNMENT सत्यमेव OF HRA जयते APPCB Online Manifest Application Facilities Offered Current Capacity Planned Capacity CETP 30.97 MLD 39.7 MLD Online www GPS Tracking Management TSDF 10,25,000 MT 10,00,000 MT Generate Manifest CETP Waste Pre- Processing Facility 50,000 MT (APIIC Atchutapuram) Service Charge # Hazardous Waste # (per Ton/KL) Non-Hazardous Waste Service Charge Service Charge # Liquid Waste (per Ton/KL) (per Ton/KL) 1 Utilizable Waste INR. 100 1 Fly Ash INR. 5 1 HTDS INR. 50 2 Recyclable Waste INR. 10 Domestic Solid 2 INR. 1 2 LTDS INR. 25 3 Incinerable waste INR. 200 Waste 4 Landfillable Waste INR. 50 3 Plastic, Glass INR. 2 3 Marine Outfall INR. 10 Pre-processing Facilities for sending pre-processed waste to cement industries for co-processing - INR 25 per ton/KL#10Going beyond Ease of Doing Business Vision Andhra Pradesh to be the most preferred investment destination with sustainable growth Beyond EoDB EoDB + Perception Ease of Doing Business (EODB) Ranked1 EASE OF DOING BUSINESS EDB ANDHRA PRADESH ECONOMIC DEVELOPMENT BOARD 2021 Minimizing Cost of Doing Business Rationalization measures in fees charged, cost of compliances etc. AP Environmental Management Corp Ltd, 'Platform- business model' for waste collection and disposal Ready Built Factories/ Plug & Play Facilities Skill Development 2020 Reducing Risk of Doing Business Lease cum buy model to minimise risk of capital "Industries Spandana" Query and Grievance Centralized land encumbrance information systems Alignment of Relationship Mangers to ensure setting up compliance with all requirements Export Promotion Committees at district level Reforms in compliance inspection to reduce risk of interruption in operations 2019 EoDB | Ranked 1 2017 Implementation based rankings Implementation of Business Reform Agenda shared by DPIIT, Business Process Re-engineering, Time bound service delivery, 2016 Perception based rankings Ensure reform implementation at ground level Encourage usage of Single Window Portal Building capacity of investors and staff on newly implemented systems and reforms Kicked Off District Outreach workshop in Jan 2021 at Vizianagaram Online payment & status tracking of application 2015 Highest Rating in Business Reforms Action Plan (BRAP) 2019, by DPIIT 10#11Sri R.Karikal Valaven, IAS Special Chief Secretary to Govt. & CIP Industries & Commerce Department prisecy [email protected] ANDHRA PRADESH ఆంధ్రప్రదేశ్ ప్రభుత్వం సత్యమేవ జయతే आंध्र प्रदेश EDB ANDHRA PRADESH ECONOMIC DEVELOPMENT BOARD Sri JVN Subramanyam, IAS Chief Executive Officer, APEDB Commissioner, Industries & Commerce [email protected] We Welcome you to Partner in Andhra Pradesh's Industrial Growth Story