DPR of Venkatagiri Industrial Park (APIIC)

June, 2015

Detailed Project Report

Development of an Industrial Park at

Venkatagiri

ARIEN PROJECT CONSULTANTS

Vengalrao Nagar, Hyderabad 500 038
Phone: +91-83746035010

DPR of Venkatagiri Industrial Park (APIIC)

TABLE OF CONTENTS
EXECUTIVE SUMMARY

CHAPTER 1 : INTRODUCTION

1.1.

BACKGROUND

1.2..

THRUST ON INDUSTRIAL DEVELOPMENT

1.3.

ABOUT THE PROJECT

1.4.

MARKET POTENTIAL

10

1.5.

METHODOLOGY

11

1.5.1

Site Inspection

1.5.2

Demand Assessment

1.5.3

Financial analysis

1.5.4

Implementation structure

1.5.5

Legal Framework

CHAPTER 2 : ANDHRA PRADESH INDUSTRIAL INFRASTRUCTURE

CORPORATION (APIIC)

13

2.1

ABOUT APIIC

13

2.2

OBJECTIVES OF APIIC

14

2.3

STRENGTHS OF APIIC

14

2.4

CORE FUNCTIONS OF APIIC

14

2.5

ORGANIZATIONAL STRUCTURE

15

CHAPTER 3: EXISTING ENVIRONMENTAL SETTINGS

16

3.1

GEOGRAPHICAL DETAILS OF CHITTOOR DISTRICT

16

3.2

LIVESTOCK & POULTRY (2007)

16

3.3

CLIMATE

17

3.4

TEMPERATURE

17

3.5

RAINFALL

18

3.6

HUMIDITY

18

3.7

GEO MORPHOLOGY AND SOIL TYPES

18

3.8

DRAINAGE AND WATER BODIES

19

3.9

SOIL

19

3.10

TOPOGRAPHY

19

3.11

LAND USE

19

3.12

CROPPING PATTERN

20

3.13

IRRIGATION SOURCES

20

3.14

FORESTS

20

3.15

INDUSTRIES

21

3.16

SOCIO ECONOMIC ENVIRONMENT

21

DPR of Venkatagiri Industrial Park (APIIC)

CHAPTER 4 ; CHITTOOR DISTRICT INDUSTRIAL PROFILE
4.1

INDUSTRIAL SCENARIO

4.1.1

Industry at a Glance

4.1.2

Year Wise Trend of Units Registered

4.1.3

Details of Existing Micro & Small Enterprises

4.1.4

Large Scale Industries / Public Sector undertakings

4.1.5

Medium Scale Enterprises

4.1.6

Major exportable items

4.1.7

Vendorisation and Ancillarization

4.1.8

Medium Scale Enterprises

4.2

POTENTIAL FOR NEW MSMEs

4.2.1

Agro, Food and Allied Industries

4.2.2

Mechanical and Metallurgical

4.2.3

Chemical, plastic and Rubber based

4.2.4

Glass and Ceramics

4.2.5

Paper Products

4.2.6

Textile Based

4.2.7

Wooden Products

4.2.8

Electrical and Electronics

4.2.9

Leather and Foot Wear

4.3

MAJOR CLUSTERS

CHAPTER 5 : SITE LOCATION & JUSTIFICATION

22
22

24

26
27

5.1

LOCATION OF THE SITE

27

5.2

SURROUNDING FEATURES

27

5.3

Site Boundaries:

28

5.4

Location Map

29

5.5

Site Views (Photographs)

5.6

Other Particulars:

5.6.1

Existing Units:

5.6.2

Educational Institutions:

5.6.3

Medical :

29-30
30

5.7

Observations:

31

5.8

SITE JUSTIFICATION

31

5.9

LAND FORM & LAND OWNERSHIP

33

5.10

EXISTING SITE CONTOUR

33

CHAPTER 6 : MARKET POTENTIAL OF INDUSTRIAL PARK AT VENKATAGIRI

SITE

34

6.1

INTERACTION WITH STAKEHOLDERS

34

6.2

MARKET STUDY OF PROSPECTIVE SEGMENTS

34

DPR of Venkatagiri Industrial Park (APIIC)

6.3

FOOD PROCESSING SECTOR

6.3.1

Market Size

6.3.2

Growth Rate

6.3.3

Segments

6.3.4

Unorganized Sector

6.3.5

Employment Potential

6.4

ANIMAL HUSBANDRY SECTOR

6.4.1

Global Context

6.4.2

Demand Scenario

6.4.3

Indian Dairy Industry Scenario

6.4.4

Growth Trajectory

6.4.5

Employment in the Sector

35

38

6.5

MINERALS INDUSTRY (GRANITE)

41

6.6

TEXTILE SECTOR (COTTON)

41

6.7

RESOURCE AVAILABILITY

42

6.7.1

Agro Resource

6.7.2

Horticulture

6.7.3

Milk Processing

6.7.4

Mineral Resources

6.7.5

Textile Industries

6.7.6

Information Technology

6.7.7

Granite Industry

6.7.8

Fruit Canning Industry

6.7.9

Match Industry

6.7.10

Power Loom Industry

6.8

PROJECT DEVELOPMENT PROPOSAL

6.8.1

Demand Perspectives for Development of Industrial Parks

6.8.2

Project Concept

6.8.3

Planning Principles

6.9

PROPOSED MASTER PLAN BY APIIC

6.9.1

Industrial Land for Venkatagiri Industrial Park

6.9.2

Plotted Area

6.9.3

Open Area

6.9.4

Road Area

6.9.5

Common Facility Area

44

45

6.10

ESTIMATED INVESTMENT OPPORTUNITIES VENKATAGIRI IP

48

6.11

ESTIMATED EMPLOYMENT POTENTIAL VENKATAGIRI IP

48

CHAPTER 7 : RESOURCE REQUIREMENT

49

7.1

49

WATER REQUIRMENT

DPR of Venkatagiri Industrial Park (APIIC)

7.1.1

Construction Phase

7.1.2

Operation Phase

7.2

POWER AND FUEL REQUIREMENT

50

7.3

STORM WATER DRAINAGE

51

7.4

MANPOWER REQUIREMENT

51

7.5

MATERIALS REQUIREMENT

51

7.6

PROJECT SCHEDULE WITH TIME LINE

51

CHAPTER 8 : ASSESSMENT OF FUNDING REQUIREMENTS

52

8.1

INVESTMENT REQUIREMENTS

52

8.2

BASIS FOR ESTIMATION OF INVESTMENT

53

8.3

FUNDING OPTIONS FOR CORE INFRASTRUCTURE DEVELOPMENT

56

8.4

FUNDING SOURCES FOR THE IP

56

8.5

SOURCE OF REVENUE

57

8.6

APPROACH TO PROJECT IMPLEMENTATION

57

8.7

OPTIONS FOR DEVELOPMENT UNDER PPP FRAMEWORK

58

8.7.1

Service Contract:

8.7.2

Management Contracts

8.7.3

BOT/ Concession Contracts

8.8

SOCIAL COST BENEFIT ANALYSIS

8.8.1

UNIDO Approach

8.8.2

Investments made

8.8.3

Social Costs

8.8.4

Social Benefits

8.8.5

Assumptions made in the analysis

8.8.6

Sensitivity Analysis

CHAPTER 9 : ENVIRONMENTAL MANAGEMENT PLAN

59

63

9.1.

INTRODUCTION

63

9.2

CONSTRUCTION PHASE

63

9.2.1

Modification of Drainage Pattern

9.2.2

Materials Transportation

9.2.3

Materials Storage

9.2.4

Air Environment

9.2.5

Noise Environment

9.2.6

Water Environment

9.2.7

Biological Environment

9.2.8

Construction Waste Disposal

9.2.9

Land Environment

9.2.10

Health & Safety Measures

9.3

OPERATION PHASE

66

DPR of Venkatagiri Industrial Park (APIIC)

9.3.1

Air Environment

9.3.2

Water Environment

9.3.3

Solid and Hazardous Wastes

9.3.4

Rainwater Harvesting System

9.4

GREEN BELT DEVELOPMENT

67

9.5

OCCUPATIONAL HEALTH AND SAFETY

67

9.6

RESETTLEMENT & REHABILITATION ASPECTS

68

9.7

ZONING REGULATIONS

68

CHAPTER 10 : STATUTORY & LEGAL FRAMEWORK

69

10.1

FOREST CONSERVATION ACT

69

10.2

LAND ALLOCATION POLICY

70

10.2.1

Introduction

10.2.2

Guidelines on land allotment

10.3

LAND ALLOTMENT PROCEDURE AS PER POLICY

71

10.4

INDUSTRIAL POLICY 2015-20 (AP)

72

CHAPTER 11 : KEY ISSUES

79

11.1

LAND ACQUISITION

79

11.2

AVAILABILITY OF WATER

79

11.3

FUNDING SOURCES

79

11.4

ENVIRONMENTAL ISSUES

79

LIST OF TABLES
3-1

Livestock & Poultry Details

16-17

3-2

Land Utilization (Year 2010-11)

20

4-1

Industry At a Glance

22

4-2

Industrial Trend of Chittoor District

22

4-3

Details of Existing Micro & Small Enterprises

22

4-4

Details of Major Clusters

26

5-1

Surrounding features of proposed Industrial Park

27

6-1

Major Sectors of Animal Husbandry

38

6-2

Area Break up Detail for the Proposed IP

45-46

6-3

Industry wise area break up details for the Proposed IP

46-47

7-1

Water Requirement during construction phase

49

7-2

Water Requirement during operational phase

49

7-3

Power Requirement Breakup

50

8-1

Quantity Assumptions for Core Infrastructure Cost

53

8-2

Basis for Core Infrastructure Cost

54

8-3

Total Estimated Infrastructure Development Cost for the Industrial Park

55-56

8-4

Project Implementation PPP / Non PPP

57-58

DPR of Venkatagiri Industrial Park (APIIC)

8-5

Estimate of investments in the proposed industrial park

60

8-6

Social Costs & Benefits from the IP

62

LIST OF FIGURES
1-1

Industrial Mission of Andhra Pradesh

1-2

Methodology / Approach to Industrial Park

11

2-1

Organization Structure of APIIC

15

3-1

Chittoor District Map

16

3-2

Average Temperature Profile

17

3-3

Average Rainfall Profile

18

5-1

Location Map

29

5-2

Site Views

6-1

Major Segments of Food Processing

34

6-2

Growth Rate of Food Processing Industry

35

6-3

Share of Food Processing Sectors

36

6-4

Share of Unorganized Sector

37

6-5

Employment Potential of Food Processing Industry

37

6-6

Market Potential of Dairy Industry

39

6-7

Market Share of Dairy Products

40

7-1

Water Balance

50

7-2

Project Implementation Schedule

51

8-1

Infrastructure Components

52

8-2

Planned Phases of Industrial Park

56

29-30

ANNEXURES
LOCATION MAP

80

VENKATAGIRI LOCATION MAP

81

CONCEPTUAL LAYOUT PLAN

82

DPR of Venkatagiri Industrial Park (APIIC)

EXECUTIVE SUMMARY

The Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) has identified Government
land based on the findings given by the District Collector, Chittoor. The district officials had
suggested a promising forest block i.e., Venkatagiri Reserve Forest (1726 hectares or 4263 acres)
for the development of an Industrial Park.

This identified Venkatagiri Forest Reserve block is located amidst Ramanujapalle, Chinthapalem,
Panguru, Krishnapalle and Merlapaka village of Yerpedu Mandal of Tirupati Revenue division. This
block actually falls west to the above villages comprising 4263 acres of forest lands. This land is
covered by small thorny bushes. It is about 32 km away from Tirupati town; about 26 km. away from
Renigunta and 12 km away from Yerpedu.

The proposed Industrial Park will be developed in an integrated manner with all required onsite
infrastructure as well as common infrastructure facilities. The proposed Industrial Park will enhance
the opportunities to transform the region as a potential industrial hub with overall integration of
common facilities / infrastructure for other industrial units in the vicinity.

One of the prime objectives of the proposed Industrial Park development is to generate employment
opportunities by which the socio-economic status of the region will be improved.

In this regard, APIIC submits this Project Report to the Government of Andhra Pradesh seeking
approval for de-forestation and alienation of the said land - Venkatagiri Reserve Forest for the
development of an Industrial Park at an estimated project cost of Rs. 1400 Cr attracting an
investment of Rs. 7500 Cr. and employment generation for 25,000 persons.

DPR of Venkatagiri Industrial Park (APIIC)

1. INTRODUCTION

1.1 BACKGROUND
Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC Ltd.), an undertaking of the
Government. of Andhra Pradesh, is a premier organization in the state, vested with the objective of
providing industrial infrastructure through development of Industrial Parks and Special Economic
Zones. Over 320 Industrial Parks have been established throughout the state, covering an extent of
over 1,30,000 acres. The Industrial Parks and Special Economic Zones are playing a pivotal role, in
attracting investments to the state both domestic & foreign by providing multiple incentives. The
Government's investor-friendly policies, state-of-the-art infrastructure, educated manpower,
attractive incentive schemes etc., make Andhra Pradesh a choicest destination for Industrial
Investment, particularly in the manufacturing sector.
HITEC City, Gangavaram Port, HITEX, HICC, Pharma City, Financial District, FAB City, Hardware
Park, Genome Valley and Vishakhapatnam Industrial Water Supply are some of the prestigious
projects that helped the state create large scale employment and improve the visibility of the State.
These initiatives have put the state, specifically, Hyderabad on the Global Map.
APIIC proposes de-forestation of reserve forest lands at Venkatagiri, Yerpedu Mandal, Tirupati
Revenue Division, Chittoor District, Andhra Pradesh for the development of a new Industrial Park.
APIIC submits this Project Report to the Government of Andhra Pradesh seeking approval for deforestation of the said reserve forest land.

1.2 THRUST ON INDUSTRIAL DEVELOPMENT

After the bifurcation of the state on 2

nd

June 2014, the government of the residuary state of Andhra

Pradesh had identified industrial growth as a means to mitigate poverty and unemployment under its
Industry Mission. The Industry Mission is aimed at attracting investments worth 12.5 lakh crores in
the next 15 years. Industrial development promotes higher capital formation; raises wage incomes;
and absorbs surplus workforce. With an objective to realize these benefits and hasten up the socioeconomic change, industrial development is accorded top priority by the state government. The new
Industrial Policy proposes to establish a state-of-the-art infrastructure, advance inclusivity, foster
innovation, and develop skill sets of its workforce to create employment opportunities across the
state.
The state envisages accelerated development by leveraging infrastructure creation and concerted
promotion of industries. The plan seeks to build on region specific industry agglomeration and
encourage industries specific to each region. In doing so it also seeks to leverage regional and
locational synergies while encouraging industrial growth. The advantage of this strategy is that some
of these regions will also emerge as key frontiers of industrial growth and also allow the government
to focus on industrial development better.

DPR of Venkatagiri Industrial Park (APIIC)

Region-wise planning of thrust areas for an overall development of the state of Andhra Pradesh as
envisaged by the state government is depicted below in Fig. 1-1:

Fig. 11 Industrial Mission of Andhra Pradesh

In the district of Chittoor which hosts the temple town of Tirupati, the development plans include
seeking conversion of the airport at Renigunta into an International Airport, an airport at Kuppam, a
National Investment & Manufacturing Zone (NIMZ) at Yerpedu, an IIT and an IT hub.

1.3 ABOUT THE PROJECT

APIIC proposes the development of an Industrial Park at Venkatagiri RF, Yerpedu Mandal, Tirupati
Revenue Division, Chittoor District in Andhra Pradesh. The park is proposed to be spread over 1726
hectares (4263 acres) and cater to the socio-economic development of the region.
The Venkatagiri Block is on the left side of Yerpedu - Venkatagiri road with scrub jungle that
includes Yerpedu Reserve Forest, Venkatagiri Reserve Forest and Gollapalli RF. The entire area of
RF i.e., about 50,000 acres of land including hills is outside the sanctuary. The identified land is
adjacent to Government porombokes and DKT lands of Yerpedu Mandal. There is a huge extent of

DPR of Venkatagiri Industrial Park (APIIC)

Government land available that connects Yerpedu - Venkatagiri road (NH-05). The land has good
connectivity to rail and road as well as to an airport. This land is suitable for industrialization.
The proposed project attracts Environmental Clearance (EC) under Schedule 7(c) category A
project, as per the guidelines of EIA notification of 2006, and the amendments thereafter as also the
provisions relating to de-forestation of the Forest (Conservation) Act, 1980.

1.4 MARKET POTENTIAL

i) Agro Resources (2012-13)
Paddy (1,71,405 MT), Groundnut (1,26,657 MT) and Sugar Cane (24,92,000 MT)

ii) Horticulture
Chittoor district is one of the few major mango growing districts in the entire state. Cashew nut is
also grown in mainly Satyavedu, Puttur and Srikalahasti Mandals Mango is grown on 56,800
hectares producing around 5 lakh tonnes per year.
Cashew nut is grown on 237 acres producing around 29 tonnes per year. Production of major crops
Mango (5,02,212 MT), Cashew nut (29 MT), Tomato (2,49,923 MT ).

(iii) Mineral Resources

Low-grade steatite, soap stone, Grate and also road metal and building stones, Granite in different
colors of Black, Pink and Grey.

(iv) Dairy resources

The District is having about 3,00,000 milch animals yielding about 18 Lakh Liters of Milk per day.
There are 53 Fruit Processing Industries in Small and Medium scale sector. There are 40
processing units in Chittoor region, 10 units in Tirupati region and 3 Units in Madanapalle region
manufacturing fruit pulp with a total capacity of 10,000 M. Tonnes per Annum. There is a scope for
more units with asceptic packing which is export oriented. The mango processing units produce
large amount of mango peels and mango kernels, which largely remained unutilized.
There exists potential in setting up units for extraction of oil from mango kernel, which can be used
in varnishes, soaps etc. Similarly, mango peels can be dried and converted into protein additive for
cattle feed. This is an innovative process not in use in the district, hence, an appropriate technology
for the same needs to be developed. The development of Fruit Processing Industry in the district
has generally stimulated the production of horticultural products, particularly, mangos.

10

DPR of Venkatagiri Industrial Park (APIIC)

1.5 METHODOLOGY

Fig. 1 -2 Methodology / Approach to Industrial Park

1.5.1 Site Inspection

The site visit in the Tirupati area was carried out to ascertain the existing land use pattern and the
distribution of habitation in the area. Land use pattern signifies the percentage of residential,
industrial and agricultural areas in the region. The existing infrastructure facilities were also studied
during the site visit, like connectivity infrastructure roads, railways etc.

1.5.2 Demand Assessment

Demand assessment plays a major role in the industrial establishments and development of the
area. The first level of interaction was carried out with the government officials in order to
understand the governments perspective plan for the development of this region. Secondary
research was carried out to assess the availability of resources in the region. Accordingly, the
development plan of the industrial park was made, based on the potential as witnessed by the
success of previous ventures by APIIC.

1.5.3 Financial analysis

The primary stage is the cost estimation for the development of industrial park including
governmental and private investments. The major portion of government investments would be
made for the provision of core infrastructure and other related activities. The core infrastructure

11

DPR of Venkatagiri Industrial Park (APIIC)

would comprise roads, power, communication network, water & sewerage system, solid waste
management, power etc.

1.5.4 Implementation structure

The eligible projects for Private-Public Partnership were identified in the process and the projects
are tentatively categorized under PPP and Non-PPP headings. The required investments to be
made by the private partner and the government are arrived at in the ratio of 10 ; 90 approximately.
Social Cost benefit Analysis (SCBA) has been done to confirm the feasibility of the project.

1.5.5 Legal Framework

Review of the implementation framework was done. Similar project initiatives, policies and the
framework have been studied. The applicable acts as per the state government and the central
government along with their implications were also studied. Accordingly, the legal framework for the
suggested implementation structure is elaborated further in this report.

12

DPR of Venkatagiri Industrial Park (APIIC)

2. ANDHRA PRADESH INDUSTRIAL INFRASTRUCTURE CORPORATION
(APIIC)

2.1 ABOUT APIIC

Andhra Pradesh Industrial Infrastructure Corporation Ltd. (APIIC Ltd.) was incorporated on 26th
September, 1973 with an Authorised Capital of Rs.20.00 crores and paid up capital of Rs.16.33
crores. APIIC is a wholly owned Undertaking of Government of Andhra Pradesh.
Vested with the objective of providing industrial infrastructure through development of industrial
areas, the Corporation has so far developed more than 300 industrial parks spreading over an
extent of about 1,21,655 acres (including allotted area). Besides, the Corporation is also developing
sector focused parks like apparel park / food processing parks/leather parks, Special Economic
Zones in the state. The Corporation has also constructed 3500 industrial sheds, 4800 dormitory
units, 466 commercial shops.
With the advent of economic liberalization the Corporation has reoriented itself to the changing
needs of economy and assumed the role of facilitator. To its credit the Corporation has developed
Hi-Tech city with a private promoter. The corporation is the principle facilitator in Mega Projects like
Special Economic Zone, Visakha Industrial Water Supply, Gangavaram Port, Convention Centre,
Mega Industrial Parks at Parawada, Pashamylaram Financial District Hardware Park at Hyderabad.
The Corporation has to its credit the execution of civil works for various Government Departments. It
has executed works covering Referral Hospitals, Navodaya Schools Polytechnic Buildings Court
Complex, Building and Hostel for Indian Institute of Information Technology. Government entrusted
the responsibility of constructing Games Stadia and Games Village for the National Games on
Project Management Basis. The Corporation is the Nodal Agency for Government Sponsored
scheme like Growth Centers, Export Promotion Industrial Parks, Integrated Infrastructure
Development Centers.

In keeping with the trend worldwide, and growing environmental/ecological concerns, APIIC is keen
to attain sustainable development of industries giving due consideration to environment protection.
The Government of Andhra Pradesh has decided upon its vision and objectives to transform the
existing Industrial Parks (IPs) into Eco-Industrial Parks and to ensure sustainable model(s) for
industrial growth in the state.

APIIC has made a pioneering move to develop Eco-Industrial Parks in the state of Andhra Pradesh.
The IP Nacharam and IP Mallapur are included in the pilot phase for transforming these industrial
parks into Eco-Industrial parks

13

DPR of Venkatagiri Industrial Park (APIIC)

2.2 OBJECTIVES OFAPIIC
The main objectives of the corporation are as below :

To develop and maintain Industrial Parks, SEZs, Industrial Clusters

To provide industrial infrastructure

To act as Nodal Agency for schemes of Government of India/ Government of AP, like NIMZ,
SEZ, MSME, Food Processing Parks, Textile Parks, Women's Park and IT & C department
schemes like ITIR, EHMC, Incubation centers etc.

To act as Local Authority in all the Notified Industrial Parks

2.3 STRENGTHS OFAPIIC

APIIC has developed over 320 Industrial Parks which includes IT, Bio-Tech, Automotive,
Apparel, Pharma, Leather, SEZs with its expertise in providing Industrial infrastructure.

APIIC is spread over in all districts of Andhra Pradesh having 15 Zonal Offices.

APIIC has manpower of all sectors including Administration, Engineering and Quality
Assurance, Legal, Marketing, Finance and Internal Audit etc.,

APIIC will undertake infrastructure development in its Industrial Parks and takes up regular
maintenance.

APIIC is also delegated with Local Authority Powers under Panchayat Raj & Municipal Act by
GoAP.

2.4 CORE FUNCTIONS OF APIIC

Identification of potential sites for Industrial Areas

Procurement of Land under Acquisition / Alienation for Industrial parks

Providing Infrastructure facilities in Industrial parks

Allotment of Land / Plots / Structure for various Industries

Identification and development of Infrastructure Projects under PPP mode

Executing Construction works as deposit work for various State & Central Govt Departments.

14

DPR of Venkatagiri Industrial Park (APIIC)

2.5 ORGANIZATIONAL STRUCTURE

Fig. 2-1 Organization Structure of APIIC

15

DPR of Venkatagiri Industrial Park (APIIC)

3 EXISTING ENVIRONMENTAL SETTINGS

3.1 GEOGRAPHICAL MAP OF CHITTOOR DISTRICT

Fig. 3-1 Chittoor District Map

Chittoor district is one of the Rayalasema districts of Andhra Pradesh. It covers a geographical area
of 15,152 sq. km and situated between 12 37 and 1400 North latitudes and 7830 and 7955
Eastern longitudes. The district is divided into 3 revenue divisions viz., Chittoor, Tirupati and
Madanapalle. The district has 66 mandals under these 3 revenue divisions, with 2 Municipal
Corporations of Chittoor and Tirupati and 6 municipalities of Madanapalle, Punganur, Palamaner,
Nagari, Srikalahasti and Puttur.

3.2 LIVESTOCK & POULTRY (2007)

Table 3-1: Livestock & Poultry Details
S. No.

Particulars

A.

Livestock

B.

Cows

Buffaloes

No.

1103656
139759

Other Livestock

16

DPR of Venkatagiri Industrial Park (APIIC)

S. No.

Particulars

No.

Sheep

1124890

Goats

490931

Pigs

Dogs & Bitches

Poultry

7208
96705
143983793

3.3 CLIMATE
Chittoor district has a dry and healthy climate. The upland mandals are comparatively cooler than
the eastern mandals except Chittoor where the climate is moderate.

3.4 TEMPERATURE
The temperature in the western parts of the district like Punganur, Madanapalle, Horsley Hills are
relatively lower than the eastern parts of the Chittoor District. This is because of the higher altitude
of the western parts compared to the eastern parts. The summer temperatures touches 46 C in the
eastern parts whereas in the western parts it ranges around 36 to 38 C. Similarly the winter
temperatures of the western parts are relatively low ranging around 12 C to 14 C and in eastern
parts it is 16 C to 18 C.

Fig. 3-2 Average Temperature Profile

17

DPR of Venkatagiri Industrial Park (APIIC)

3.5 RAINFALL

Fig. 3-3 Average Rainfall Profile

The annual rainfall of the district is 934 mms. The district has the benefit of receiving rainfall during
both the south-west and north-east monsoon periods and the normal rainfall received during these
periods is 438.0 mms and 396.0 mms respectively. The rainfall received from the south-west
monsoons is more copious compared to north-east monsoons in the western mandals and in the
central part of the district, whereas the rainfall received from north-east monsoons is comparatively
copious in the eastern mandals of the district.

3.6 HUMIDITY
The relative humidity generally varies from 86% to 33%.

3.7 GEO MORPHOLOGY AND SOIL TYPES

The district is underlain by formations of Achaean, Proterozoic, Jurassic Cretaceous Tertiary and
Quaternary ages. The oldest rocks in the area belong to Magnetite Complex, represented by
magnetized quartzo-felspathic gneiss and are exposed in the northeastern part of the district. Older
metamorphic comprise amphibolites, hornblende-talc-mica-schist, fuchsite quartzite, calc-silicate
rock, marble and banded ferruginous quartzite. The district has hills and plateau and elevation
ranges up to 1,318 meters.

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DPR of Venkatagiri Industrial Park (APIIC)

3.8 DRAINAGE AND WATER BODIES
There are no major rivers in the district. Most of the rivers are ephemeral in nature carrying large
quantities of water immediately after precipitation. The drainage is generally sub articulate to subparallel following straight courses. The important drainage basins are Bahuda, Pincha,
Swarnamukhi, Palar, Ponnaiand Araniyar. The Bahuda and Pincha are north flowing rivers,
Swarnamukhi is east flowing, Palar is southeast flowing, Ponnai towards south and Araniyar is
southeast flowing. According to the assessment made on the basis of village records, 57% of the
area is covered by Red loamy soils, 34% by red sandy soils. The remaining 9% is covered by black
clay (3%), black loamy (2%), black sandy (1%) and red clayey (3%).

3.9 SOIL
The major portion of the district is covered by red soils with portions of alluvial soil in Chittoor and
Bangarupalem. The constitution of the soils in the district is: redloamy-57%; red sandy 34% and the
remaining 9% is covered by black clay black loamy, black sandy and red clay.

3.10 TOPOGRAPHY
The district forms a part of the Mysore plateau. The western and southwestern parts comprising
Kuppam, Palamaner, Punganur, Thamballapalle and Madanapalle areas have an altitude between
600 m and 900 m MSL. The altitude of central region comprising Bangarupalem, Chittoor, Piler,
Vayalpad, Chandragiri areas has 300 m to 600 m MSL. The eastern / southern parts covering parts
of Puttur, Karvetinagar, Satyavedu, Tottambedu and Srikalahasti areas have an altitude of less than
300 m MSL. This indicates that the elevation in the district is highly variable and having steep
slopes.

3.11 LAND USE

Out of the total geographical area of 15,15,100 ha, the forests cover is 4,52,018 ha i.e., 30% of the
total area. The barren and uncultivable land covers1,63,650 ha (11%) whereas the land put to nonagricultural use is 1,48,529 ha (9%). The current fallows and other fallow lands cover 1,34,536 ha.
(8%) and 1,14,920 ha (8%) respectively. The net area sown is 3,90,487 ha i.e., 27% of the total
area. The area sown more than once is 40,899 ha (3%) making the total cropped area is 4,31,386
ha i.e., 30% of total. The details of land utilization are given Table-3-2.

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DPR of Venkatagiri Industrial Park (APIIC)

Table 3.2: Land Utilization (Year 2010-11)

S. No.

Particulars

Area, (in hectares)

Total Area

1515100

Forest cover

452018

Non Agriculture Land

155845

Barren land

154389

Cultivable waste

46095

Pmt. Pastures

33371

Misc tree crops

29496

Other fallow

120963

Current fallow

143651

10

Net area sown

379222

3.12 CROPPING PATTERN

The district is categorized under Southern Agro climatic zone of Andhra Pradesh based on soil type,
rainfall and altitude. Groundnut cropping system occupies maximum area of the zone followed by
Rice. In dry farming tract of the zone, mono cropping of the Groundnut is the main stay whereas
under canals, tanks, wells and bore wells, double cropping is practiced. Sugarcane is the main cash
crop grown extensively under the tank. In the dry lands around tank a variety of rainfed crops are
grown, including groundnut, pulses, chillies, coriander and so on. Mango is an important garden
crop. Many of the dry and wetlands are being converted into mango gardens. Due to lack of labour
two crops of paddy are grown. The first crop is largely rainfed and the other is tank fed. If water is
still available a third crop is also grown.

3.13 IRRIGATION SOURCES

The area has to basically depend upon tanks for irrigation as it is a rain-fed area. Somasila
Swarnamukhi (near Yerpedu) Link canal from Somasila to Yerpedu in Chittoor District, is proposed
to provide irrigation facility for drought prone areas situated on the right side of existing K.P. Canal.
Mandals which will stand to benefit are Rapur, Dakkili and Venkatagiri Mandals in Nellore District
and Srikalahasti, Yerpedu and Thondamanudu Mandals in Chittoor Districts. Completion of HandriNeeva Sujala Sravanthi project will ensure sufficient water for the region.

3.14 FORESTS
Thirty (30%) percent of the total land area is covered by forests in the district. The flora of Chittoor
comprises dry South Indian deciduous mixed forests, southern cutch thorn forests and tropical
evergreen dry forests. The fauna of the district is also widely varied. It includes tigers, panthers, wild
pigs, porcupines, hyenas, wolves, jackals and a lot more. A large variety of birds are also found in

20

DPR of Venkatagiri Industrial Park (APIIC)

the district of Chittoor like the large grey shrikes, mynas, vultures, eagles, kites, owls, partridges,
green pigeons, peacocks and many more add to the variety of the avian culture of Chittoor.

3.15 INDUSTRIES
The economy of Chittoor is mainly agro based. It has a huge market for mango, sugarcane, grain
and peanuts. The important industries of the district include oilseeds, rice milling, Nutrine
Confectionaries, a well known chocolate industry, mango pulp manufacturers.
The granite industry is also of prime importance in the district of Chittoor. The Tirupati Temple in
Chittoor is also a major source of earning for the district. This is because a large number of
devotees throng the temple throughout the year.

3.16 SOCIO ECONOMIC ENVIRONMENT

According to the census of 2001 the population of the Chittoor district is 3,745,875. The density of
population in the district is 246 persons per square kilometer. Out of this population around 21.65
percent of the population is urban. The most commonly used language in the district is Telugu and
other languages used are Tamil, English and Hindi language. The literacy rate in Chittoor is 66.77
percent. Among the literate population 77.62 percent of the male population is literate while 55.78
percent women are literate. The work force of the district comprises 46.85 percent of the entire
population.

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DPR of Venkatagiri Industrial Park (APIIC)

4. CHITTOOR DISTRICT INDUSTRIAL PROFILE
4.1 INDUSTRIAL SCENARIO
4.1.1 Industry at a Glance
Table 4-1: Industry At a Glance
S. No.

Head

Unit

Particulars

REGISTERED INDUSTRIAL UNITS

No.

16,562

REGISTERED MEDIUM & LARGE UNITS

No.

82

ESTIMATED AVG. NO. OF DAILY WORKER

No.

75,151

No.

21,424

No.

27

EMPLOYED IN SMALL SCALE INDUSTRIES

4

EMPLOYMENT IN LARGE AND MEDIUM

INDUSTRIES

NO. OF INDUSTRIAL AREAS

4.1.2 Year Wise Trend of Units Registered

Table 4-2: Industrial Trend of Chittoor District
Year.

NUMBER OF REGISTERED
UNITS

EMPLOYMENT

INVESTMENT (lakh
Rs.)Head

2004-05

4675

40102

11980

2005-06

4696

40281

12255

2006-07

4113

39540

16574

2007-08

4214

41510

20601

2008-09

4466

47411

31370

Source: DIC, Chittoor & Commissioner of Industries

4.1.3 Details of Existing Micro & Small Enterprises

Table 4-3: Details of Existing Micro & Small Enterprises
S. No.

Category

% of
units

% of total
Investment

% of total
Employment

Agriculture based

29.79

18.93

34.17

Forest based

8.14

3.38

4.65

Textile based

18.45

23.45

16.26

Mineral

4.45

19.23

4.65

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DPR of Venkatagiri Industrial Park (APIIC)

S. No.

Category

% of
units

% of total
Investment

% of total
Employment

Engineering

12.53

15.14

12.47

Chemical

4.00

4.06

7.25

Leather

7.00

7.11

7.25

Others

15.62

8.68

16.34

4.1.4 Large Scale Industries / Public Sector undertakings

It is estimated that there are 40 Large scale enterprises, involving an investment of Rs. 1175 Crores
and employing around 10,000 persons. The units are mainly engaged in fruit processing, Granite
slabs and monuments, news paper printing, processed fruit and vegetables, etc

4.1.5 Medium Scale Enterprises

It is estimated that there are 42 Medium scale enterprises, involving an investment of Rs. 216
Crores and employing around 11,500 persons. The units are mainly engaged in fruit processing,
Granite slabs and monuments, news paper printing, processed fruit and vegetables, etc

4.1.6 Major exportable items

Mango, Mango pulp, teak, red sandalwood, dairy products like ghee, butter, etc.
Growth trend: There were 84 Large and Medium industries in the year 2001, involving an investment
of Rs 1059 crores and providing employment to 23812 persons. A decade later, there has not been
much change in the scenario. In fact, the number of L&M industries has slightly reduced to 82. One
reason for the decline may be that, due to raise in investment ceiling for MSMEs, the units classified
as Large and Medium earlier, may now be included as small scale units. The employment and
investments in L&M units have also declined to 21424 and Rs. 1675 crores respectively.

4.1.7 Vendorisation and Ancillarization

Vendorisation and Ancillarization: In Chittoor district there is very wide scope for ancillary
development as it has a good number of large/medium scale industries. At present there are 84
large/medium scale industries workers in the district which require a good lot of ancillary items of
different varieties. Presently they are getting either from Hyderabad or from Madras and Bangalore.
It is reported that all the fruit processing industries required a number of items as ancillaries which
could be very well manufactured in small scale industries. Carriage workshop is an important large
scale unit which requires a good number of ancillary units, which is located at Tirupati, Renigunta
Road. This is one of the major workshop of the Indian Railways undertaking periodical repairs to
passenger coaches. The main items which are required by the Workshop are: Pins and Bushes
(different types)

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DPR of Venkatagiri Industrial Park (APIIC)

Washers, sealing for axle box guide, Filtering, Destruction tube, Flushing valve assembly Holding
device for vestibule foot plate, Push cock complete, Coat hook, Oil filling arrangement, Glass
shutter, Commode seat cover, Commode, Door lock assay, Alarm disc cover, Ash tray, Sliding door
lock, Top Spring Seat, Footstep support. Springs of different types, Rubber Washers, Metal
Fabrication items, Foundry items. The list is only indicative and Entrepreneurs are advised to
contact the Carriage Workshop for selection of project.

4.1.8 Medium Scale Enterprises

There are 42 (of the 82) Medium scale enterprises, involving an investment of Rs. 216.17 Crores
and employing around 10,000 persons. The units are mainly engaged in fruit processing, Granite
slabs and monuments, news paper printing, processed fruit and vegetables, etc

4.2

POTENTIAL FOR NEW MSMEs

4.2.1 Agro, Food and Allied Industries

Jams and Jellies

Chikki

Turmeric polishing and Grinding

Seed Processing

Potato wafers

Particle ;Boards from Rice Husk

Vermicelli

. Bread

Ice Blocks

Confectionery

Mushrooms

Mango Kernel Oil

Dall Mill

. Honey Bee keeping

Rice Flakes

Pappad

Hatchery

4.2.2 Mechanical and Metallurgical

G.I. Pipes and fittings

General Engineering

Non-Ferrous

Agricultural

Workshop

castings

Implements

Air-coolers

Insecticide Sprayers

Steel furniture

G.I. buckets

Carpentry furniture

. Lancing tubes used in

Tool Room, Flush

Solar Cooker

blast furnaces

Doors

Copper wire

Forged Items

Saw mills

Photo lamination

PVC Engineering

Milk Cooling and ghee

Road Construction

Electric Motor and

Trays

setting equipment

Wire Drawing

Hand pumps

pump sets
Gates and grills

Pop Rivets

24

DPR of Venkatagiri Industrial Park (APIIC)

4.2.3 Chemical, plastic and Rubber based
Detergent cakes and

. Burnt Lime, Ferric

Camphor Tablets

Electroplating / Nickel

Powders

Alum

Phenyl

. Agarbathis

Hawaii Chappals

PVC Pipes

Grease

Cleaning Powder

. Red oxide

Disposable Syringes

. Ayurvedic Medicine

Plastic cups and

Leaf cups and plates

Fibre Glass

Formulations

plates

(Laminated)

reinforced plastics

Screen Printing

Computer stationery

Bobbins

Polypropylene Sutli

Reprocessing of

Sodium Sulphate

. Pharmaceuticals,

Corrugated Paper

Mineral Water

Boards and Boxes

plating

plastic waste

4.2.4 Glass and Ceramics

Stone polishing

Fly ash bricks

Quartz Crushing

Plaster of Paris

Fire clay bricks and

RCC Spun Pipes

Sodium Silicate

Ceramic Artware

blocks
Lens Grinding

manufacture
Road Metal Crushing

4.2.5 Paper Products

Paper Cups and Plates

Exercise Note Books

File covers, file Boards and Letter Pads

4.2.6 Textile Based

Silk Reeling and twisting

Hosiery

Sewing thread

Sizing

Dyeing

Ready Made Garments

4.2.7 Wooden Products

Flush Doors

TV Stands

Wooden Toys

4.2.8 Electrical and Electronics

TV Antenna

Emergency Lamps

Voltage Stabilizers

Tube light chokes

Auto bulbs

GLS Lamps

Transformers

and tube light fittings

25

DPR of Venkatagiri Industrial Park (APIIC)

4.2.9 Leather and Foot Wear
Vanity bags and purses made

. Leather belts

Leather Footwear

Leather Gloves

Shoe Uppers

of leather and Rexine

Rexine Travelling Goods

4.3 MAJOR CLUSTERS

Following are the industrial clusters found in Chittoor district. The district is known for its rich
horticulture produce, especially mango, and has a major concentration of horticulture produce.
The major manufacturing clusters are the fruit processing, power loom, bus body building and
granite clusters.
Table 4-4: Details of Major Clusters
Cluster

Chittoor fruit

No. of functional

Turnover of the

Employment in

units

Clusters, Rs. Cr.

Cluster

67

Domestic: 125.00

20,000

processing
Nagari power loom

Exports:

330.00

530

200.00

24,000

Chittoor Rice Mill

153

400.00

6,000

Madanapalle Bus

242

11.3

3,000

200

180.00

2,000

Association

body building
Chittoor granite
processing Cluster
Source: www.clusterobservatoyr.in

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DPR of Venkatagiri Industrial Park (APIIC)

5. SITE LOCATION & JUSTIFICATION

5.1 LOCATION OF THE SITE

An Industrial Park is being proposed at Venkatagiri in Yerpedu Mandal of Chittoor district of Andhra
Pradesh. This is on the left side of Yerpedu - Venkatagiri road with scrub jungle that includes
Yerpedu Reserve Forest, Venkatagiri Reserve Forest and Gollapalli RF. The entire area of RF i.e.,
about 50,000 acres of land including hills is outside the sanctuary. The identified land is adjacent to
Government porombokes and DKT lands of Yerpedu Mandal. There is a huge extent of Government
land available that connects Yerpedu - Venkatagiri road with NH-05 (about 70 km away). The land
has good connectivity to rail and road as well as to an airport. This land is suitable for
industrialization.
The Venkatagiri Reserve Forest is located amidst Ramanujapalle, Chinthalapalem, Panguru,
Krishnampalle and Merlapaka villages of Yerpedu Mandal. This block actually falls west to the
above villages comprising 4263 acres of forest lands. The land is covered by small thorny bushes.
This land is located in Yerpedu Mandal of Tirupati Revenue Division. It is about 32 km away from
Tirupati town, about 26 km away from Renigunta airport and 12 km away from Yerpedu.
The District Collector, Chittoor vide Order No, RocE6/5188/2014 dated 25.03.2015 identified an
extent of about 1726.0 Hectares (4263 acres) of land in Venkatagiri Forest Block and proposed for
de-notification. An extent of 1726 Ha. has already been allocated to APIIC to file requisite proposals.
The Location Map is given in Fig.5-1 and views of the site are given in Fig.5-2. The salient features
of the site are given in Table 5-1.

5.2 SURROUNDING FEATURES

Surrounding features of the project are summarized in below Table 5-1.
Table 5-1: Surrounding features of proposed Industrial Park
Site Location

Near Mannavaram Village, Srikalahasthi Mandal, Chittoor District

Latitude:13 51 19.1 N ; Longitude: 79 30 19,4 E

Nearest villages
their distances

&

Mannavaram 0.3 Km; Kurjalaguda abutting; Kalampalli 10 km;

Gundlapalli 11 km; Kalvakuntla -12 km

Protected
areas,
National Parks etc.

Reserve Forest Notified u/s 15 of AP Forest Act,1967

Conversion for land

As per forest laws alternate land to the extent acquired be given to the
Forest Dept. duly developed or cost of development to be borne.

Particulars
connectivity

of

-National Highway NH 205 in 16 K.M

(Pothulapattu to Naidupeta)
-National Highway-NH 565 (under construction.) in 12 km
(Yerpedu to Venkatagiri)
Srikalahasti City
20 km
Renigunta
..
.- 27 km

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DPR of Venkatagiri Industrial Park (APIIC)

Tirupati City ..
32 km
Yerpedu Rly. Station
16 km
Srikalahasti Rly. Station 20 km
Renigunta Rly. Jn.
27 km
Nearest Police Station
Srikalahasti
. 20 km
Renigunta Airport
26 km
Krishnapatnam Sea Port 130 km
Chennai Sea Port . 130 km
33 kV Sub Station - 6 km from site

Location of nearest
power station

Vempalli

Water availability

- About 7- 8 small kuntas / percolated tanks are there.

Mannavaram- 33 kV Sub-station 3 km from site

- Swarnamukhi River is about 45 km away from Site.

- Proposed SS Canal (Somasila to Swarnamukhi river) passing along
the border of the site.
- Ground Water: 200 to 400 ft.
Soil type & strength

Red soil & loamy

5.3 SITE BOUNDARIES

East: Survey No.81, 85 (private land at Mannavaram village)
West: S. No. 87 & 88
North: S. No, 90 & 95
South: S. No. 68

28

DPR of Venkatagiri Industrial Park (APIIC)

5.4 LOCATION MAP

Fig. 5-1 ; Location Map

5.5 SITE VIEWS

29

DPR of Venkatagiri Industrial Park (APIIC)

Fig 5-2: Site Views

5.6 OTHER PARTICULARS

5.6.1 Existing Units:
Already established a company viz. NTPC BHEL Power Project Pvt. Ltd.(NBPPL) in about 900
Acres adjacent to the proposed Site.

30

DPR of Venkatagiri Industrial Park (APIIC)

5.6.2 Educational Institutions:
i)

Indian Institute of Technology (IIT) is proposed in an area of about 550 Acres of land at

Marlapaka, which is 26 km away from the proposed Site.

ii)

IISER is proposed in an area of about 220 Acres of land at Pangur, which is 24 Kms away

from the proposed Site.

iii)

Government Degree College at Venkatagiri. 10 km from the proposed site

iv)

Srikalahasti Institute of Technology (SKIT) at Srikalahasti. which is 28 km from the proposed

site.
v)

Sree Engineering College at Mallavaram, 32 km away from the proposed Site.

5.6.3 Medical Facilities :

I)

Primary Health Centre, Yerpedu, 7 km away from Site

II)

Government Hospital at Venkatagiri, 10 km from the Site

III)

Srikalahasti Govt. General Hospital, Srikalahasti, 28 km from the proposed Site.

5.7 OBSERVATIONS
Location of site is in interior place at Chittoor - Nellore border and needs a lot of development in all
aspects. About 40- 50% area is filled with bushes of different size and types. Tanks built during
Vijayanagar rule are found near every village for the water needs of the people. Completion of
Somasila Project and other projects like Handri-Neeva Sujala Sravanthi project will ensure sufficient
water for the region.

5.8 SITE JUSTIFICATION

APIIC with the aim of industrial development has been developing industrial parks throughout the
state. Nellore district has a port and Chittoor district has an airport which will be an added advantage
for the business development and advancement of the district. Hence, APIIC has proposed plans for
the Industrial Park in this district.
The connectivity of the site to port, airport, railway and road is as follows:
a. Port Connectivity - The site is about 40 Km away from the Nellore Port.
b. Airport Connectivity - The site is about 7 from the Renigunta Airport .
c. Rail Connectivity - The site is about 10 Km from Renigunta Railway Station from which railway
lines could be drawn in for goods carriers.
d. Road Connectivity - The site is adjacent to NH- 05 connecting Chennai.

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DPR of Venkatagiri Industrial Park (APIIC)

The proposed project will benefit the local area in the following ways.
Physical Infrastructure
Once the plant is commissioned the socio-economic status of the local people will improve and there
by infrastructure facilities like communication systems will improve. The road network will improve in
the area due to the proposed project.
Social Infrastructure
With the implementation of the project, the socio-economic status of the local people will improve
substantially. The land rates in the area will improve in the nearby areas due to the proposed plant.
This will help in upliftment of the social status of the people in the area. Educational institutions will
also come-up and will lead to improvement of educational status of the people in the area. Primary
health center may also come-up and the medical facilities will certainly improve due to the proposed
project.
Employment Generation
The proposed project creates employment to 400 people during construction and 15000 people
during operation of the Project.
Skilled
Total skilled employment in the proposed plant will be 2500 of which majority will be locals.
Semi Skilled
Total Semi-skilled employment in the proposed plant will be 7500. Priority will be given to local
people for semi-skilled jobs subject to eligibility.
Unskilled
Total Unskilled employment in the proposed park will be 15000. Top priority will be given to local
people for unskilled jobs subject to availability.
Socio-Economic Development Activities
The members of the IP will be committed to uplift the standards of living of the villagers by
undertaking following activities / responsibilities as part of Corporate Social Responsibility (CSR):

Health & hygiene

Drinking water

Education for poor

Vocational training

Other activities

Health & Hygiene

Quarterly health camps offering free-checkup & medicines

Ambulance services

Education

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DPR of Venkatagiri Industrial Park (APIIC)

5.9 LAND FORM & LAND OWNERSHIP
The proposed area for the Industrial Park of 4263 acres falls within the reserved forest area of
Venkatagiri Block. The land belongs to the state government of Andhra Pradesh.

5.10 EXISTING SITE CONTOUR

The site contour survey is under preparation. However, in general, the site has several undulations
and having hilly tracts with several bushes all around i.e., scrubs.

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DPR of Venkatagiri Industrial Park (APIIC)

6. MARKET POTENTIAL OF INDUSTRIAL PARK AT VENKATAGIRI SITE

6.1 INTERACTION WITH STAKEHOLDERS

Detailed interaction was held with the officials of APIIC at Zonal Office, Tirupati and forest
department officials at Tirupati. The consultations were carried out to ascertain the proposed
development and the upcoming industries, type of industries and the scale.

6.2 MARKET STUDIES & IDENTIFICATION OF PROSPECTIVE SEGMENTS

APIIC intends to develop an industrial park in the identified land area for the allotment of industrial
units in Food Processing, Animal Husbandry, Minerals (Granite), Textile sector etc. The identified
sectors for development have been based on the primary assessment of market opportunity in the
region, consultations with market players etc. The following sections describe the market and
demand assessment carried out for the proposed industry sector at Venkatagiri. It is also proposed
to encourage micro and small enterprises in a big way to help youngsters use their skills in
entrepreneurship.

Fig. 6-1: Segments of Food Processing Sectors

34

DPR of Venkatagiri Industrial Park (APIIC)

6.3 FOOD PROCESSING SECTOR
The Indian food industry is poised for huge growth, increasing its contribution in world food

trade

every year. In India, the food sector has emerged as a high-profit sector on the back of the scope it
offers for value addition, particularly with the food processing industry getting recognized as a highpriority area.
Accounting for about 32 per cent of the countrys total food market, the food processing industry is
one of the largest industries in India and is ranked fifth in terms of production, consumption, export
and expected growth. The total food production in India is likely to double in the next 10 years with
the countrys domestic food market estimated to reach US$ 258 billion by 2015.

6.3.1 Market Size

The Indian food and grocery market is the worlds sixth largest, with retail contributing 70 per cent of
the sales. It is projected to grow at the rate of 104 per cent, touching US$ 482 billion by 2020.
The Indian food processing industry accounts for 32 per cent of the countrys total food market, 14
per cent of manufacturing GDP, 13 per cent of Indias exports and six per cent of total industrial
investment. Indian food service industry is expected to reach US$ 78 billion by 2018.

6.3.2 Growth Rate

Fig. 6-2: Growth Rate of Food Processing Industry

The food processing industry is one of the largest industries in India and ranks fifth in terms of

production, consumption and exports

35

DPR of Venkatagiri Industrial Park (APIIC)

With an estimated value of USD181 billion in FY13, the food processing sector is further

estimated to expand at a CAGR of 10 per cent by 2015. The industry contributed 9.8 per cent to
India s GDP manufacturing in 2013

The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a

CAGR of 20 per cent. It is expected to cross US$ 2.8 billion by 2015.

6.3.3 Segments

Food processing is an important segment in terms of contribution to GDP and share in the

agriculture and manufacturing sectors

Fig. 6-3: Share of Food Processing Sectors

According to MOFPI, in FY12, fixed capital in India s food processing sector increased a

significant 20.2 per cent over the last year to USD30.9 billion

During FY0613, the FPI GDP expanded at a CAGR of 5.4 per cent

The industry is expected to contribute 6.5 per cent to the country s GDP by FY15

6.3.4 Unorganized Sector

In FY12, India had 36,881 registered food processing units

The unorganised sector accounts for 42 per cent of India s food processing industry

The sizeable presence of small-scale industries points to the sector s role in employment

generation

Though the market falls under the unorganised sector in the country, the organised sector has

a larger share in the secondary processing segment than the primary one

Rice mills account for the largest share of processing units in the organised sector

36

DPR of Venkatagiri Industrial Park (APIIC)

Fig. 6-4: Share of Unorganized Sector

6.3.5 Employment Potential

Fig. 6-5: Employment Potential of Food Processing Industry

Policymakers have identified food processing as a key sector in encouraging labour

movement from agriculture to manufacturing

As per Annual Survey of Industries for 201112, there were 1.8 million persons engaged in

registered food processing sector

During FY0812, employment in the registered food processing sector rose at a CAGR of 4.2

per cent

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DPR of Venkatagiri Industrial Park (APIIC)

As per NSSO, the unregistered food processing sector provided employment to 4.8mn people

in 2010-11

Food products generated the highest employment in the country in 2011-12 (12.1 per cent)

6.4 ANIMAL HUSBANDRY SECTOR

Table 6-1: Major Sectors of Animal Husbandry
Meat products

Dairy products

Leather

Wool

Fresh/chilled/froz

en

cream

Buffalo
Mutton
Pork

Milk &

Leather

goods

Yoghurt

Condens

footwear

Bags

ed milk

accessories

Powdere

d milk

Vehicle

Sports

Processed

Cheese

accessories

Butter

ed meat

Butter oil

decorative goods

Bacons

Ice cream

Salami

Ghee

Cooked

Ready to

Homogenis

eat

Tertiary
segment

Bakery

Confectio

Ornamental/

Poultry
Knitwe

processed

ar

eggs

Handloom

chicke

Shawls

n meat

Scarve

ready

to eat
muffler
unprocessed

eggs

chicke

n meat

nary

Chocolat

es

Health

drinks

Baby

food

6.4.1 Global Context

Animal husbandry sector is the fastest growing agricultural sub sector and is expected to contribute
50% of global agricultural output in the next 10 years. The sector contributes 33% of agricultural
GDP globally. Between 1980 and 2030 the production and consumption of livestock products is
expected to grow by 125% growth driven by rapidly rising per capita consumption in developing
countries.

38

DPR of Venkatagiri Industrial Park (APIIC)

6.4.2 Demand Scenario
While in 1980, the consumption of milk and meat products in the developing economies was
approximately 30% of the worldwide consumption; by 2030 the figure is expected to rise 66% of the
global share. Population growth, urbanization and increasing incomes are key demand drivers for
animal source foods in developing countries.

6.4.3 Indian Dairy Industry Scenario

The state of Andhra Pradesh has recorded highest growth in terms of both milk production and percapita milk availability thereby clocking a growth rate of over 41 per cent and about 36 per cent
(approx.) during the five year period of 2006-10, however the state ranked third in terms of milk
production with over 1.1 million tons of milk produced annually, according to apex industry body
ASSOCHAM.
Milk production across India has grown at a significant rate of about 19 per cent during the
aforesaid period with overall milk production crossing 121 mt mark as of 2010-11 but despite being
the largest milk producer in the world, per-capita milk availability in India at 252 grams falls below
the global average of 279 grams per person per day, according to a study titled Unlocking the
growth potential of Indian dairy industry, conducted by The Associated Chambers of Commerce and
Industry of India (ASSOCHAM).
For decades, dairy players in India have been engaged in the liquid milk processing activity only.
Backed by operation White Flood in 1970s, the milk industry in India witnessed the first wave of
development in the milk production which gave India its status of the largest milk producer in the
world.

Fig. 6-6: Market Potential of Dairy Industry

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DPR of Venkatagiri Industrial Park (APIIC)

Over the past decade, significant transformation took place in the Indian demographic space which
led to heightened consumer interest in VADPs. This shift in the dynamics of the industry proved
beneficial for the manufacturers since margins in VADPs are more than double the margins in the
liquid milk segment. The profitability in liquid milk space ranges from 4-5%, whereas the profitability
in VADPs ranges from 12% to 18%, attracting private participation in the industry.

As per the industry estimates, the share of VADP in the milk and milk derivatives segment is
growing currently at around 25% every year and is expected to grow at the same rate until 2019-20.

Fig. 6-7: Market Share of Dairy Products

Product innovations are likely to accelerate Indias dairy market which is anticipated to improve
industry margins by attaining greater scale, higher capacity use and an increasing contribution from
new milk variants. Further, the development of processing and packaging technology along with
improvement in retail and cold storage infrastructure has increased the shelf life of dairy products.

6.4.4 Growth Trajectory

As per NDDB, the Indian dairy industry is all set to experience high growth rates in the next eight
years with demand likely to reach 200 million tonnes by 2022 from 132 million tonnes in 2013.
Presently, only 20% of the milk production comes from the organized sector comprising cooperatives and private dairies. The paramount factors driving the growth in the dairy sector include
rising disposable incomes, advent of nuclear families and fast/instant food gaining ground in India.
Other factors such as structural changes in food habits, expansion of fast food chains and popularity
of pizzas and pastas aided the usage of milk variants of mozzarella cheese, processed cheese and
flavored milk etc.

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DPR of Venkatagiri Industrial Park (APIIC)

The share of the total milk processing capacity by private sector is 44%of total installed capacity of
73 MLPD (Million Liters Per Day) in the country. Therefore, the total share of the organized sector,
both cooperatives as well as the private sector is barely 12%. What is, therefore, disquieting is that
as much as 88% share of the total milk production is commanded by the unorganized sector. Inorder
to attract promote Dairy Industry and attract more investment in this sector, govt has also reduced
the excise duty of 16% to Zero on Dairy processing Machineries.
The untapped potential of the dairy sector is immense and opportunity to set up a new dairy venture
is great. And there is vast potential for the export of dairy products, as the cost of milk production in
India being the lowest. These factors are attracting huge amount of investments in dairy processing,
manufacturing dairy processing equipment, fruit packaging equipment and equipments for
biotechnology related dairy industry.

6.4.5 Employment in the Sector

Animal Husbandry sector provides large self-employment opportunities. According to National
Sample Survey , total number of workers in usual status engaged in farming of animals were million
in rural areas and 14.9 million in rural areas combined. Total number of workers engaged in faming
of animals and fishing were 14.9 million in rural area and 16.5 million in rural and urban areas
combined.

6.5 MINERALS INDUSTRY (GRANITE)

Mineral Sector is an important segment of the Indian economy. Since independence, there has
been a pronounced growth in the mineral production both in terms of quality and value. India
produces as many as 87 minerals, which include 4 fuels, 10 metallic, 47 non-metallic, 3 atomic and
23 minor minerals (including building and other materials). The contribution of mining and quarrying
sector to GDP for the 2010-11 is estimated at Rs. 1,82,278 Crores, which would indicate an
increase of 18.2% over that in the previous year.
The total value of mineral production (excluding atomic minerals) during 2010-11 has been
estimated at Rs.200609.38 crore which shows an increase of about 11.83% over that of the
previous year. Andhra Pradesh contributes 8.98% next to Orissa (9.63%).

6.6 TEXTILE SECTOR (COTTON)

Cotton is one of the principle crops of the country and is the major raw material for domestic textile
industry. It provides sustenance to millions of farmers as also workers involved in cotton industry
right from processing to trading of cotton. The Indian textile industry consumes a diverse range of
fibres and yarn, but is predominantly cotton based. Indian textile industry has an overwhelming
presence in the economic life of the country. Apart from providing one of the basic necessities of life,
the textile industry also plays a pivotal role through its contribution to industrial output, employment
generation and the export earnings of the country. It contributes of about 14% of the industrial

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DPR of Venkatagiri Industrial Park (APIIC)

production, 4% to GDP and 14.42% to the countrys export earnings. The textile industry is the
largest organized industry in the country in terms of employment (nearly one million workers) and
number of units. Besides, there is a large number of subsidiary industries dependant on this sector.

Exports:
Indias textiles and clothing industry is one of the mainstays of the national economy. It is also one of
the largest contributing sectors of indias exports worldwide. The vision statement for the textile
th

industry for the 11 five year plan (2077-12), inter-alia, envisages india securing a 7% share in the
global textiles trade by 2012. At current prices the Indian textiles industry is pegged at US$ 55
billion, 64% of which services domestic demand. The textiles industry accounts for nearly 12% share
of the countrys total exports basket.

6.7 RESOURCE AVAILABILITY

6.7.1 Agro Resource
Paddy (1,71,405 MT), Groundnut (1,26,657 MT) and Sugar Cane (24,92,000 MT)

6.7.2 Horticulture
MANGO:
Mango is the major horticultural crop of Chittoor District with an average of 56800 hectares crop and
producing 502212 M T per Annum. There are 48 mango processing Industries in Small & Medium
scale sector and 5 large scale units. There is scope for more units with aseptic packing which
is export oriented. Only about 1.0 1.4 lakh tons pulp is being produced as per trade sources. The
Mango processing units produce large amount of mango peels and mango kernel, which largely
remained utilized. There exists potent a in setting up units for extraction of Oil from mango kernel,
which can be used in varnishes, soap etc. Similarly, mango peels can be dried and convert into
protein additive for cattle feed. This is an innovative process not in use in the district, hence the
appropriate technology for the same needs to be developed.

TOMATO:
Tomato is grown in abundance in the district with an average or 15,000 hectares producing 2.5 lakh
M. Tons per annum. At present, about 6000 MT is being processed in the existing fruit processing
industries, apart from this there is scope for tomato processing units for making tomato sauce,
ketchup etc.

PAPAYA:
Papaya is grown with an average of 300 to 400 acres and producing 5000 M. Tons to 6000 M. Tons.
Existing fruit processing units are processing papaya partly making papaya pulp.

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TAMARIND:
Tamarind is available in plenty with an average of 12000 acres and producing 15000 M. Tons. There
are 6 cold storage units for storing tamarind and two more units are under pipeline. There is good
scope for tamarind processing units for making exportable concentrates, juices and starch units from
seed. (Source: Industries Department, GoAP)

6.7.3 MILK PROCESSING:

There are about 3, 00,000 milch animals in the district yielding about 15,00,000 to 18,00,000 lts. of
milk per day. Out of this 8 to 10 lakh litres is processed in all the 12 milk processing units and the
processed milk are marketed in Chennai and Bangalore. There is scope for further processing of
milk and making milk products such as ghee, butter, kova etc., in chittoor district with the advantage
of proximity to Chennai and Bangalore. Though Parag Milk Foods set up an 8 lakh liters per day milk
processing plant at Palamner, there is a great scope for all stakeholders since the dairy turnover is
expected to double to $140 billion by 2020 (in India) as the CAGR of dairy industry is 15-17% while
that of its products is 24% as per NDDB.

6.7.4 MINERAL RESOURCES:

Minerals available in Chittoor district are low-grade steatite, soap stone, grate and also road metal
and building stones, granite in different colors of black, pink and grey are available in the district.
There are about 150 such units existing in the district and there is scope for more units.

6.7.5 TEXTILE INDUSTRIES:

There are about 2300 power loom units established in and around Nagari area in Chittoor district.
13,000 power looms are working providing an employment of 40,000 people. 13 spinning mills with
3.50 lakh spindles capacity producing cotton yarn. There is very good scope for development of
hosiery and knitted wear and read made garment industries.

6.7.6 INFORMATION TECHNOLOGY:

Government has identified Tirupati as potential IT-hub as Tier - II city with a strategy to develop the
ITR Park. An extent of 147 acres near Renigunta is under acquisition for IT park as a part providing
infrastructure to I. based industries.

6.7.7 GRANITE INDUSTRIES:

The Chittoor district is rich in granite mineral, 115 granite cutting and polishing units are in existence
and 13 units are under pipeline. More number of units are expected in future.

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6.7.8 FRUIT CANNING INDUSTRIES:
The Chittoor district has occupied prominent place in the state in setting up of fruit canning
industries. The district has 40 small scale fruit canning units and 13 large and medium scale
industries.

6.7.9 MATCH INDUSTRIES:

There are about 41 match industries existing in Chittoor providing direct employment to 828 persons
and indirect employment to 4550 persons.
6.7.10 POWER LOOM INDUSTRIES:
There are about 2,300 power loom units established in and around Nagari area in Chittoor district.
30,000 power looms are working. 40,000 people are employed in this industry. To give boost to this
industry 2.50 lakhs spindle capacity emerged for producing cotton yarn. 10 dyeing & bleach
industries; 200 warping units are parellely existing. Government has sanctioned 5 crores
infrastructure package and establishments separate industrial estate for the workers at Keelapattu
near Nagari.

6.8 PROJECT DEVELOPMENT PROPOSAL

6.8.1 Demand Perspectives for Development of Industrial Parks
Based on the review and forecast of available data from respective industrial sectors, a preliminary
demand assessment has been carried out for food processing, animal husbandry, minerals (granite)
and textile sector. The following methodology has been adapted while assessing the space
requirement by target industries.

Review of current turnover/investment and export status for each target sector.

Assessment future market prospects/trends for the sector (investment/exports) based

on industry projections (CAGR)

Assessment of space requirement based on area/investment/turnover profiles of focused

products in each sector.

Assessment of space demand at identified site for industrial development n the sector.

Estimation of investment projections and employment potential for the sector in the
proposed industrial park.

The output targets for individual sectors are based on review and understanding of growth
possibilities and targets for both domestic and export markets. The target share for each sector will
vary depending upon the strength of the region and the global/Indian competition. There is need to
allocate the space to diverse sectors and facilities in order to balance the swings in performances of
individual sectors. There has to be a balance in proportion of space allocated for each sector and
facility in the proposed industrial park, depending upon the country and area/location advantage
critically of the sector and the overall space available to us for planning i.e., 4263 acres. There are

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industry norms available in terms of investments, outputs and land areas required for the sector. The
overall output for the sector will depend upon the total space allotted to it.
6.8.2 Project Concept
The concept for the industrial park has been developed keeping in view the envisaged development
requirements and also specific requirements as assessed from the location study and demand
study. Concept is also based on the vision for the proposed development.

The industrial park planning approach is based on the concept of environmental spatial
planning. This approach is based on the following fundamental principles of
environmental planning:

Using a site according to its natural (environmental) sustainability in such a way that the
use is not adversely affecting environmental resources at site and in the vicinity; and

Preserving of environmentally fragile or ecologically sensitive zones and other important

features in the vicinity of a site.

6.8.3 Planning Principles

Planning principles comprising of all the components required for a fully functional Industrial Park
are considered in the conceptualization of the industrial park. A sustainable development approach
is considered, the basis for this being the project specific requirements arising of the industrial
activities, location specific activities, legal and statutory requirements arising out of industrial policy/
rules.
Land use Allocation Strategies and Broad Land use Plan
Broad land use allocations will be given which includes the following:

Space allocation for different categories of industries/business establishments

Space allocation for social infrastructure

Space allocation for public utilities and Amenities

6.9 PROPOSED CONCEPTUAL LAYOUT PLAN

6.9.1 Industrial Land for Venkatagiri Industrial Park
The proposed area for the Industrial Park is 4263 Acres. The Conceptual Layout Plan is given in
Annexure-3 and the Area breakup of Plot area is given in Table 6-2.
Table 6-2 Area Break up Detail for the Proposed IP
Area Break Up

Industrial Area
Micro Units
Road Area

Area
(Acres)

Area (SQM)

Percentage
(%)

2720

11007840

63.80%

55

222585

1.29%

512

2072064

12.01%

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DPR of Venkatagiri Industrial Park (APIIC)

Area Break Up

Area
(Acres)

Area (SQM)

Percentage
(%)

Greenery / Open
space Area

426

1724022

9.99%

Common Facility
Area

100

404700

2.35%

Commercial area

100

404700

2.35%

Residential area

350

1416450

8.21%

4263

17252361

100.00%

Total
6.9.2 Industrial Area

Total plotted area (tentative) for the proposed site 2720 acres. There are totally 1117 plots of sizes
ranging from 1000 sqm to 10 acres tentatively proposed for the site. The industries are classified as
Red, Orange and Green category. The individual plot area to be allotted for each industry is given in
Annexure-3 (Master Plan). The type of industries which could come in the proposed plots is given
in Table 6-2. The allotments proposed for the proposed plots are based on the availability of raw
materials in the district.
Table 6-3 Industry wise area break up Detail for the Proposed IP
EIA
Categor
yA/B

No. Of Units
Proposed
(tentative)

Area,
acres

Type of Industry

Classification
as per PCB

Agro, Food and Allied Industries

Orange

60

600

Automobile body building

Green

10

50

Automobile components

Green

25

50

Automobile Servicing

Green

10

20

Chemical, plastic and Rubber

based

Red

20

200

Coconut based products

Green /
Orange

25

50

Cold Storage

Green

50

100

Commercial Purposes

Green

50

75

Dairy & Dairy Products

Orange / Red

75

450

10

Electrical

Green

50

50

11

Electronics Items

Green

100

50

12

General Engineering &

Fabrication

10

30

13

Glass and Ceramics

Green

50

50

14

Leather and Foot Wear

Green

100

50

15

Mechanical and Metallurgical

Green

25

50

S. No.

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DPR of Venkatagiri Industrial Park (APIIC)

EIA
Categor
yA/B

No. Of Units
Proposed
(tentative)

Area,
acres

S. No.

Type of Industry

Classification
as per PCB

16

Paper Products

Green

80

20

17

Pollution Control Equipments

Green

15

18

Power generation

Red

100

19

Repairing of electrical motors

Green

40

20

20

Textile Based

Orange / Red

100

500

21

Wooden Products

Green

30

90

22

Micro Units & Misc. Services

200

100

1117

2720

Total

6.9.3 Road Area

Internal roads will be provided by APIIC. Total area of 512 Acres (12.01%) is considered for
providing internal roads..

6.9.4 Greenery / Open Area

Open area of which 10% will be provided by APIIC which can be used for Green belt development.
The open area allotted is 426 Acres.

6.9.5 Common Facility Area

Total area allotted for common facilities is 100 Acres. This includes an Administration Building
proposed in the plot and common Facilities like Bank, ATM, canteen, post office, weigh bridge, truck
parking area, fire station, water harvesting pits, security posts, fencing / compound wall, gate and
Occupational Health Centre to facilitate the industries within the Estate.
It is proposed to provide truck parking area for 100 trucks in within an area of 20000 Sqm. Apart
from this, raw water storage tank, waste processing area, electrical substation, play parks etc. are
proposed. Also 3000 sqm is proposed to be allotted for small vendors

6.9.6 Commercial Area

Total area allotted for common facilities is 100 Acres.
6.9.7 Residential Area
Total area allotted for residential area to be developed by PPP mode is 350 Acres which will
accommodate 10,000 employees and also provide educational institutions, entertainment halls,
recreational parks, shopping complexes etc.

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DPR of Venkatagiri Industrial Park (APIIC)

6.10 ESTIMATED INVESTMENT OPPORTUNITIES VENKATAGIRI IP

The total industrial investment in Venkatagiri Industrial Park when fully commissioned is estimated at
Rs. 7500 Crores.

6.11 ESTIMATED EMPLOYMENT POTENTIAL VENKATAGIRI IP

One of the prime objectives of the proposed industrial park development is to generate employment
opportunities by which the socio-economic status of the region will be improved. The estimated
direct employment in the Venkatagiri Industrial Park will be about 25000 persons. The likely
indirect employment will be around 30,000 persons. Thus, the total employment potential due
to the development of proposed Venkatagiri Industrial Park would be around 55,000 persons
in the next 5-10 years which will have significant positive / beneficial impact on the socioeconomic conditions of the region as well as the state.

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DPR of Venkatagiri Industrial Park (APIIC)

7. RESOURCE REQUIREMENT

7.1 WATER REQUIREMENT

7.1.1 Construction Phase
Water requirement during the construction phase will be around 400 KL per day for development of
Infrastructure facilities. The water will be sourced from the bore wells as this is the only source till
the area starts getting canal water from Somasila Project. Approximate people working will be
around 400 nos.
Table 7-1 Water Requirement during construction phase
S.
No.

Activities

Water Requirement
(KLD)

1.

Labour

50

2.

Construction

300

water
3.

Other purposes

50

Total

400

7.1.2 Operational Phase

During the Operational Phase, the water requirement is approximately calculated as 10 KL/ acre.
The total plotted industrial area calculated for water requirement is 3000 Acres (including
commercial area and common facilities). Hence the water requirement is calculated as
approximately 30,000 KLD, taking into consideration the water requirement for facility area. The
water supply line from the raw water tank to the industries will be provided by APIIC or a third party.
The water will be sourced from bore wells.
Table 7-2 Water Requirement during operational phase
S.
No.

Type of Industry

No. of
Industries

Area,
Acres

Total Water
Requirement @ 10 KL/
Acre (KLD)

Red category

110

800

8000

Orange category

160

1100

11000

Green category

848

900

9000

Commercial Plot

100

1000

Common Facilities

100

1000

3000

30000

Total

1117

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DPR of Venkatagiri Industrial Park (APIIC)

Fig. 7.1 Water Balance

7.2 POWER AND FUEL REQUIREMENT

The overall power requirement for the proposed project is approximately, 200 MVA and the source
of power is APSPDCL.
Table 7-3 Power Requirement Breakup
S. No.

Type of Industry

No. of
Industries

Power
Requirement,
kVA

Total Power
Requirement,
kVA

232

50

11600

Engineering & Fabrication

Food Processing

60

500

30000

Dairy Products

75

300

22500

Chemical units

95

300

28500

Textile units

100

250

25000

Others

555

70

38850

Common facilities &

Commercial
Street lighting

Total

4000
400
1117

160850

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DPR of Venkatagiri Industrial Park (APIIC)

7.3 STORM WATER DRAINAGE
It is proposed to provide storm water drain along the boundary of the site and road. Excess storm
water will be led to the rain harvesting pits. .

7.4 MANPOWER REQUIREMENT

The proposed project required about 400 personnel during construction phase and 25000 personnel
during operation phase.

7.5 MATERIALS REQUIREMENT

All construction materials will be procured locally from 50 km radial area.

7.6 PROJECT SCHEDULE WITH TIME LINE

The project schedule is given in Fig. 7-2.

Activity

Months
1

1
0

1
1

1
2

1
3

1
4

1
5

1
6

1
7

1
8

1
9

2
0

2
1

2
2

2
3

Environm
ental
Clearance
CFE
Roads
Storm
Water
Drains
Water
Line
SubStation &
Power
Line
Admn. &
Common
Facilities
Allotment
of Plots

Fig. 7-2 Project Implementation Schedule

51

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DPR of Venkatagiri Industrial Park (APIIC)

8. ASSESSMENT OF FUNDING REQUIREMENTS

8.1 INVESTMENT REQUIREMENTS

The collective investment for the development of the Industrial Park has been arrived upon the
estimation of investments required in the three major components of the infrastructure namely,
Core Infrastructure
Industrial Infrastructure
Commercial / Township Infrastructure

Fig. 8-1 Infrastructure Components

However, the present study concentrates on the development of core infrastructure as this
component address the needs of the industry and the residents.
Infrastructure facilities proposed at Venkatagiri IP include the following:

World class 8-lane expressway

A multimodal public transport system

Excellent and reliable power infrastructure, with adequate backup.

Uninterrupted water supply and consistent water pressure.

Fully integrated sewage collection, treatment and disposal facilities.

A solid waste management system that aims to achieve Zero Waste Disposal

Extensive use of renewable energy particularly solar power and waste-to-energy plants;

Fibre optic cabling network designed to support a wide range of telephone, video and data
applications.

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DPR of Venkatagiri Industrial Park (APIIC)

8.2 BASIS FOR ESTIMATION OF INFRASTRUCTURE COST

8.2.1 Quantity Estimates
The basis for the investment details proposed in this chapter is sketched below in the table:
Table 8-1 Quantity Assumptions for Core Infrastructure Cost
S.
No.

Activity

Measurable

Land use conversion charges

4263 acres

Land compensation

4263 acres

Contour survey

4263 acres

Approach Road

5 km

Land development

3200 acres

Fencing around open spaces

20000 meters

Site office building

1000 sqm

Construction quarters

12500 sqm

Internal Roads

150 km, 14 M wide (average)

10

Demarcation and sign boards

11

Water supply, treatment and distribution

27080 KLD

12

Storm water drains

150 km, 2 m wide

13

Power supply including substation

200 MVA

14

Internal Street Lights

3000 No.

15

Avenue Plantation / Greenery

600 acres

16

Construction of Bridges and culvert works for

natural water courses.

17

Water harvesting pits

18

Sewage collection, treatment & disposal

19

SWM system

20

Telephone cabling and network

21

Solar panels for common facilities &

commercial areas

22

Staff maintenance expenses

23

Miscellaneous and other unforeseen activities

50 acres

400 persons, 30 months

8.2.2 Cost / Rate Assumptions

The cost / rate assumptions are based upon prevailing trends in the industry. While every care has
been exercised in the assessment of infrastructure costs by comparing with some thumb rules, it
may be mentioned that some unforeseen costs may spring up based on the location and trends in
the economy.

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DPR of Venkatagiri Industrial Park (APIIC)

One important aspect of the assessment is with regard to the cost of de-forestation which has
been assumed as Rs 10.50 lakhs per acre as per media reports.

Further, equivalent area displaced is to be provided and developed for afforestation which has
been assumed to cost Rs. 5.00 lakhs per acre.
Table 8-2 Basis for Core Infrastructure Cost
S.
No.

Activity

Basis of Cost

Land use conversion charges

Rs. 10.50 lakhs per

acre; 10% extra
statutory charges

Land compensation

Rs. 5 lakhs per acre;

10% extra statutory
charges

Contour survey

Rs. 1000 per acre

Approach Road

Rs 300 Lakhs per km

Land development

Rs. 100000 per acre

Fencing around open spaces

Rs. 500 per meter

Site office building

Rs. 20000 per sqm

Construction quarters

Rs. 15000 per sqm

Internal Roads

Rs. 3000 per sqm

10

Demarcation and sign boards

Lump sum

11

Water supply, treatment and distribution

Rs. 3000 /KLD

12

Storm water drains

Rs. 10 lakh per km

13

Power supply including substation

Rs. 5 lakh per MVA

14

Internal Street Lights

Rs 5000 each

15

Avenue Plantation / Greenery

Rs 15000 per acre

16

Construction of Bridges and culvert works for

natural water courses.

Lump Sum

17

Water harvesting pits

Rs 10 Lakhs Per acre

18

Sewage collection, treatment & disposal

Lump Sum

19

SWM system

Lump Sum

20

Telephone cabling and network

Lump Sum

21

Solar panels for common facilities &

commercial areas

Lump Sum

22

Staff maintenance expenses

Rs. 20 lakh per month

23

Miscellaneous and other unforeseen activities

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DPR of Venkatagiri Industrial Park (APIIC)

8.2.3 Total Estimated Core Infrastructure Cost
The total estimated core infrastructure development cost for APIIC for the Industrial Park is as
follows:
Table 8-3 Total Estimated Infrastructure Development Cost for the Industrial Park
S.
No.

Activity

Land use conversion

charges

Total Cost,
Rs. Lakhs

Measurable

Basis of Cost

4263 acres

Rs. 10.50 lakhs

per acre; 10%
extra statutory
charges

49238

23447

Land compensation

4263 acres

Rs. 5 lakhs per

acre; 10% extra
statutory charges

Contour survey

4263 acres

Rs. 1000 per acre

85

Approach Road

5 km

Rs 300 Lakhs per

km

1500

Land development

3200 acres

Rs. 100000 per

acre

3200

Fencing around open spaces

20000 meters

Rs. 500 per meter

200

Site office building

1000 sqm

Rs. 20000 per

sqm

200

Construction quarters

12500 sqm

Rs. 15000 per

sqm

1875

Internal Roads

150 km, 14 M
wide (average)

Rs. 3000 per sqm

54000

10

Demarcation and sign

boards

11

Water supply, treatment and

distribution

27080 KLD

Rs. 3000 /KLD

812

12

Storm water drains

150 km, 2 m
wide

Rs. 10 lakh per

km

1500

13

Power supply including

substation

200 MVA

Rs. 5 lakh per

MVA

1000

14

Internal Street Lights

3000 No.

Rs 5000 each

150

15

Avenue Plantation /
Greenery

600 acres

Rs 15000 per
acre

90

16

Construction of Bridges and

culvert works for natural
water courses.

17

Water harvesting pits

18

Lump sum

25

Lump Sum

150

Rs 10 Lakhs Per
acre

500

Sewage collection, treatment

& disposal

Lump Sum

500

19

SWM system

Lump Sum

200

20

Telephone cabling and

Lump Sum

100

50 acres

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S.
No.

Activity

Measurable

Total Cost,
Rs. Lakhs

Basis of Cost

network
21

Solar panels for common

facilities & commercial areas

22

Staff maintenance expenses

23

Miscellaneous and other

unforeseen activities

400 persons, 30
months

Lump Sum

500

Rs. 20 lakh per

month

500
228

Total

140000

The total estimated cost of developing the core infrastructure for the Industrial Park is Rs.
140000 lakhs or Rs. 1400 Cr.

8.3 FUNDING OPTIONS FOR CORE INFRASTRUCTURE DEVELOPMENT

The funding option for the core infrastructure development is denoted in the following figure:
Infrastructure

Phase 1 (months)
2

10

Phase 2 (months)
12

Internal Roads
NH-SH Widening &
Core Infrastructure
Components
Bypasses
Railway
Water supply &
sewerage,
Telecom
Power generation
Power distribution
SWM & Effluent
Treatment
Logistics Parks
Rs 840 Cr. (60%)

Rs. 560 Cr. (40%)

Fig. 8-2: Planned Phases of Industrial Park

8.4 FUNDING SOURCES FOR THE IP

The financing by the government stakeholders for the components of the industrial park
development project could be undertaken through either the nodal agencies (budgetary/ extrabudgetary) or Government of India schemes applicable at the point of time, as long-term finances
made available by multi-lateral agencies.

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10

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Implementing projects through a Public Private Partnership (PPP) arrangement is increasingly
becoming a preferred mode for infrastructure development in the country. Last few years have
witnessed a significant increase in projects being promoted under PPP modes. In order to suitably
structure a project for equitable risk allocation, most State Governments and Central Government
agencies invest in project preparatory (project development) activities. The project development
funds (PDFs) (most of them revolving in nature) set up by the Central Government and State
Government, meet these requirements.
These PDFs are usually funded by a combination of budgetary allocation, success fees from the
project and loans/grants by multi-lateral/bi-lateral agencies. In addition, some developers/ financial
institutions are also actively setting up their own funds and assisting various government agencies in
project development and recoup their costs/ profits through success fees.

8.5 SOURCE OF REVENUE

APIIC can obtain revenues in the following ways:

Lease payments from the prospective investors

Maintenance charges of the park

8.6 APPROACH TO PROJECT IMPLEMENTATION

PPP and Non-PPP projects are identified based on the scope of economic and financial viability of
the project
The funding for the Non-PPP projects would be basically provided by the government.
The PPP projects would also have the governments contribution either as equity or quasi-equity or
grant depending upon the risk appetite of government and the private developer.

Table 8-4: Project Implementation PPP / Non PPP

S.
No.

Activity

PPP,
Rs. Cr.

Non PPP,
Rs. Cr.

Total Cost,
Rs. Cr.

Land use conversion charges

492

492

Land compensation

234

234

Contour survey

Approach Road

15

15

Land development

32

32

Fencing around open spaces

Site office building

Construction quarters

19

19

Internal Roads

90

450

540

10

Demarcation and sign boards

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S.
No.

PPP,
Rs. Cr.

Activity

Non PPP,
Rs. Cr.

Total Cost,
Rs. Cr.

11

Water supply, treatment and

distribution

12

Storm water drains

10

15

13

Power supply including substation

10

14

Internal Street Lights

15

Avenue Plantation / Greenery

16

Construction of Bridges and culvert

works for natural water courses.

17

Water harvesting pits

18

Sewage collection, treatment &

disposal

19

SWM system

20

Telephone cabling and network

21

Solar panels for common facilities &

commercial areas

22

Staff maintenance expenses

23

Miscellaneous and other unforeseen

activities

127

1273

1400

Total

The above table shows the investment in core infrastructure with the PPP and Non-PPP breakup.
The projects are categorized as PPP or Non-PPP or the combination of both sector-wise. The
funding for the non-PPP projects would be basically provided by the government. The PPP projects
would also have the governments contribution either as equity or quasi-equity depending upon the
risk appetite of government and the private developer.

Out of the total investment of Rs. 1400 Cr., about 90% would be Non-PPP funding i.e. governmental
investment and 10% would be invested through PPP structure of funding. The cost of residential
quarters for about 10,000 employees is proposed in the PPP mode whose cost has not been
considered in the infrastructure cost estimate of Rs. 1400 Cr. The estimate for the residential area
would be about 12 million sft estimated to incur a construction cost of Rs. 1800 to 2000 Cr. The
developer can consider sale / rent of apartments to recover his costs under the PPP mode.

8.7. OPTIONS FOR DEVELOPMENT UNDER PPP FRAMEWORK

A range of possible PPP options are set out below:

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8.7.1 Service Contract:
The government procures a specific service (discrete and clearly defined) from a private operator.
Payment is usually on fee per task basis. Service contracts are subject to frequent competition and
usually of short term duration. It is also common to give out separate contracts for different parts of
the same city to more than one operator, thereby enabling comparative competition.

8.7.2 Management Contracts

Under this arrangement, the private sector assumes the responsibility for management of core
functions such as operations and maintenance to specified standards but using the staff, equipment,
vehicles and buildings of the government. In such a situation the private sector brings in its
management expertise, however is unlikely to make major capital expenditure and the assets
remains the ownership of the government.

8.7.3 BOT / Concession Contracts

The private operator is responsible for financing new investment over the life of the contract. The
assets are nominally owned by the public entity; however, the private operator takes over
responsibility of managing assets, creating new assets where required, raising finance for the new
investments, providing the service, operations and maintenance, billing and collection of charges, if
applicable.

8.8 SOCIAL COST BENEFIT ANALYSIS

Social Cost Benefit Analysis is an appraisal tool to evaluate a project from the view point of the
society as a whole. It refers to the analysis of the costs and/or the benefits that a society may have
to bear and/or get from the proposed project. It is a study of feasibility of a project in terms of its
total economic cost and total economic benefits. In general, any project appraisal must distinguish
between three components: Financial, Economic, and Social Appraisal.
a. Financial Appraisal examines the financial flows generated by the project itself, and
the direct costs of the project measured at market prices.
b. Economic Appraisal adjusts costs and benefits to take account of costs and benefits
to the economy at large, including the indirect effects of the project that are not captured by the
price mechanism.
c. Social Appraisal examines the distributional consequences of project choices, both
inter- temporal concerns (i.e. effects over a period of time, today versus the future); and also
intra-temporal concerns (e.g. concerns between groups in society at a specific point in time).

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8.8.1 UNIDO Approach
UNIDO Approach to public projects is a standard method adopted for Social Cost Benefit Analysis
and is a five stage methodology:
1. Calculation of financial profitability measured at market prices.
2. Obtaining the net benefit of the project measured in terms of economic prices.
3. Adjustment for the impact of the project on savings and investment.
4. Adjustment for the impact of the project on income distribution.
5. Adjustment for the impact of the project on merit goods and demerit goods.
The principle of the exercise is to determine whether any project is worth pursuing even if it is
financially unviable i.e., the Net Present Value of future financial gains from operation over the
projects life time is negative. The exercise aims at finding the Economic Rate of Return (ERR) by
considering shadow prices (i.e., opportunity costs) of indirect costs and benefits caused to the
society as a consequence of the project.

8.8.2 Investments made:

Estimated investments made over a 5 year period are mentioned in Table 8-5
Table 8-5: Estimate of investments in the proposed industrial park
Year

Stakeholder
APIIC / Government,
Rs. Cr.

Prospective
Entrepreneurs, Rs. Cr.

st

840

nd

560

rd

2250

th

3000

th

2250

1400

7500

1
2
3
4
5

Total

It is assumed that APIIC / Sate Government put(s) the infrastructure in place within a period of 2
(two) years, incurring 60% cost in the first year and remaining cost in the second year of project
implementation. (The amount under PPP mode which is about 10% is neglected in this analysis).
The private / public entrepreneurs are expected to start setting up their units from the third year
rd

th

th

onwards. Accordingly, investments in the 3 , 4 and 5 years are assumed to be 30%, 40% and
30% respectively of their total investment in the project i.e., Rs. 7500 Cr.

8.8.3 Social Costs:

Loss of health to workers and the general public in the ecosystem

Ground water pollution

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Air pollution caused by boilers, ash, fumes etc.

Forest degradation

8.8.4 Social Benefits:

Employment generation for about 15000 unskilled workers

Employment generation for about 10000 skilled work force

Revenue to government in the form of taxes and duties

Generation of foreign exchange from exports

8.8.5 Assumptions made in the analysis:

Plant & Machinery cost is considered as 65% of the total investment to arrive at the
excise duty and tax components which is calculated at a modest average value of 8%
considering exemptions etc.

Asset Turnover Ratio is considered modestly as 0.5 (though engineering firms can
have a very high ATR) to estimate the sales revenue.

VAT / Sales Tax on sales is considered at an average value of 50% for the first five
years (in view of the new industrial policy)

Life time cycle is assumed to be 15 years, though, it could be more.

Income to employees is assessed @3.5% on sales revenue

Employee costs are assumed to increase @8% YOY basis

Health costs @5% (ESI basis) of salaries multiplied by 5 (members of a family)

Loss of wood sales to government calculated @1500 per ton on 5 tons per acre on 3
year basis

Carbon sink assumed as 100 tons of CO2 per acre and carbon credit as Rs 30 per
ton.

For evaluating the taxes to government (MAT @20.96% on PBT), the PBT% Sales is
assumed modestly @8%

Revenues are expected to rise @2,5% YOY basis.

Social Discount Rate is assumed @10%.

MPS (maximum propensity to savings) to the government, entrepreneur and

employees is assumed as 0.6, 0.5 and 0.3 respectively for calculating the net savings
impact.

Social value of savings is assumed as 1.5 times to estimate the shadow price of
savings

Impact of the project on income distribution is considering by applying a factor of 0.8

on the net income from operations over the life time i.e., 15 years.

Based on the above the social costs and benefits are tabulated below in Table 8-6:

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Table 8-6: Social Costs & Benefits from the IP

Costs

Benefits

Health

293.74 ED & CST on P & M

Water

637.33 Regn Charges

88.13

Air pollution

12.85 IT on Profits

664.83

Forest degradation

10.71 Savings to entrepreneurs

Savings to employees

Total

954.63

540.00

1292.72
528.74
3114.41

The net benefit on Net Present Value (NPV) is Rs. 2160 Cr. which is higher than the infrastructure
cost invested by APIIC / Government of Rs. 1400 Cr. Hence, the project is economically viable at a
social discount rate of 10%. The Benefit to Cost Ratio is 3.26 while the Net benefit to Investment
ratio is 1.54 which weighs heavily in favour of the project.

8.8.6 Sensitivity Analysis:

The net benefit is found to be feasible at a social discount rate of 10% for an asset turnover ratio of
0.4 (i.e., 20% lower than assumed standard value) which is an acceptable figure both from rate of
inflation as well as deposit rate for any investment.

Costs

Benefits

Health

234.99 ED & CST on P & M

Water

637.33 Regn Charges

88.13

Air pollution

12.85 IT on Profits

531.86

Forest degradation

10.71 Savings to entrepreneurs

Savings to employees

Total

895.88

540.00

1034.18
422.99
2617.15

The net benefit on Net Present Value (NPV) is Rs. 1721 Cr. which is higher than the infrastructure
cost invested by APIIC / Government of Rs. 1400 Cr. The Benefit to Cost Ratio is 2.92 while the
Net benefit to Investment ratio is 1.23 which is in favour of the project.

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9. ENVIRONMENTAL MANAGEMENT PLAN

9.1 INTRODUCTION
Environmental Management Plan (EMP) is aimed at mitigating the possible adverse impact of a
project and ensuring the existing environmental quality. The EMP converse all aspects of planning,
construction and operation of the project relevant to environment. It is essential to implement the
EMP right from the planning stage continuing throughout the construction and operation stage.
Therefore the main purpose of the Environmental Management Plan (EMP) is to identify the project
specific activities that would have to be considered for the significant adverse impacts and the
mitigation measure required.

9.2 CONSTRUCTION PHASE

The environmental impact during the construction phase will be of short term and reversible nature
and will gradually eliminate after the construction activity is over. Further the area of the unit is small
in size. Still the following measures will be considered on priority basis to minimize the impacts.

9.2.1 Modification of Drainage Pattern

Rainwater harvesting prevents the flooding of low-lying areas in the project premises.

A basic surface drainage system will be provided for the site to avoid water runoff on to the

surrounding properties and roads, especially during the monsoon months.

If during excavation, water accumulates in the excavated areas, then it will be pumped out

and disposed off into recharge soak pits of dry bore wells.

9.2.2 Materials Transportation

APIIC will insist the individual industries to comply with the following conditions and individual
industries will make the contractors responsible for maintaining the following

All fine earth materials will be covered during transportation to the site to prevent spillage and
dusting.

The cleanup of spilled earth and construction material on the main roads will be the
responsibility of the contractor and should be done in a timely manner (say within 4 hours) so
as not to inconvenience or endanger other road users. These requirements will be included
as clauses within contracts made with relevant sub-contractors.

The transportation of lubricants and fuel to the site will only be done in the appropriate
vehicles and containers, i.e. fuel tankers and sealed drums.

As far as possible, transport of construction materials will be scheduled for off-peak traffic
hours. This will reduce the risk of traffic congestion and of road accidents on the access roads
to the site.

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9.2.3 Materials Storage

The stockpiling of construction materials will be properly managed and controlled. Fine
grained materials (sand, marl, etc.) will be stockpiled away from surface drainage channels
and features.

Low beams will be placed around the piles and/or tarpaulin used to cover open piles of stored
materials to prevent them from being washed away during rainfall.

Safe storage areas will be identified and retaining structures constructed prior to the arrival of
material.

Hazardous chemicals (e.g. fuels) will be properly stored in appropriate containers and these
should be safely locked away. Conspicuous warning signs (e.g. No Smoking) will also be
posted around hazardous waste storage and handling facilities.

9.2.4 Air Environment

Site clearance, excavation and earthmoving -The working area for the uprooting of shrubs or

vegetation or for the removal of boulders or temporary or permanent structures shall be sprayed with
water or a dust suppression chemical immediately before, during and immediately after the
operation so as to maintain the entire surface wet.

Access road -Every main haul road shall be paved with concrete, bituminous materials,

hardcore or metal plates, and kept clear of dusty materials; or sprayed with water or a dust
suppression chemical so as to maintain the entire road surface wet.

Construction equipments

a. All machineries to be used for construction purpose will be of highest standard of reputed make
and company will emphasize compliance of noise pollution control norms by these equipments.
b. Transport vehicles and construction equipments / machineries will be properly maintained to
reduce air emissions.
c. Equipments will be periodically checked for pollutant emissions against stipulated norms.
d. Exhaust vent of DG set will be kept at proper height to ensure quick dispersal of gaseous
emissions.

Excavation and earth moving - The working area of any excavation or earth moving operation

should be sprayed with water or a dusty suppression chemical immediately before, during and
immediately after the operation so as to maintain the entire surface wet.

Stock Piles

a. All loose material either stocked or transported will be provided with suitable covering such as
tarpaulin, etc.
b. Water sprinkling will be done at the location where dust generation is anticipated.
c. Over Burden (OB) waste dumps will be sprayed with water as they are major sources of air borne
particulate matter/dust.
d. OB waste dumps will be reclaimed / afforested to bind the loose soil and to prevent soil erosion.

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9.2.5 Noise Environment

Construction activities that will generate disturbing sounds should be restricted to normal

working hours.

Workers operating equipment that generates noise should be equipped with noise protection

gear. Workers operating equipment generating noise levels greater than 80 dBA continuously for 8
hours or more should use earmuffs. Workers experiencing prolonged noise levels of 70 80 dBA
should wear earplugs.

The construction activities will be restricted to the daytime and no construction will be

practiced during night.

Barricades will be provided around the construction site to confine noise within the site.

To reduce the impact of air and noise pollution and to provide a clean, healthy environment, it

has been proposed to create and maintain a green belt within the site and along the roadsides.
9.2.6 Water Environment

Excavation will be avoided during monsoon season

Check dams will be provided to prevent construction runoff from the site to the surrounding

water bodies.

Pit latrines and community toilets with temporary soak pits and septic tanks will be

constructed on the site during construction phase to prevent wastewater from entering the ground
water or surrounding water bodies.

To prevent surface and ground water contamination by oil/grease, leak proof containers shall

be used for storage and transportation of oil/grease.

9.2.7 Biological Environment

The dust emissions will be suppressed by spraying water and then the activities will be

carried out.

Emissions from D.G sets and vehicles will be minimized by proper maintenance and by

avoiding use of adulterant fuels and will be maintained below the standard limits prescribed by
competent authority.

Important species of trees will be identified and marked and will be merged with landscape

plan.
9.2.8 Construction Waste Disposal

The contractor should prepare a site waste management plan prior to commencement of

construction work. This should include the designation of appropriate waste storage areas, collection
and removal schedule, identification of approved disposal site, and a system for supervision and
monitoring. Preparation and implementation of the plan must be made the responsibility of the
building contractor with the system being monitored independently.

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Special attention will be given to minimizing and reducing the quantities of solid waste

produced during site preparation and construction. To reduce organic waste, softer vegetation may
be composted onsite and used for soil amendment during landscaping.

Most of the construction materials like soil, bricks, concrete will be reused in the backfilling,

road construction, sub-grade reparation etc. works. Metals, word scraps & bitumen junks will be
recycled either within site or outside with help of the local authority. The measures like reusing
materials on-site and /or donating /selling salvaged items reduces waste, virgin material use and
disposal cost.

Vegetation and combustible waste will not be burnt on the site.

Reusable inorganic waste (e.g. excavated sand) will be stockpiled away from drainage

features and used for in filling where necessary.

Unusable construction waste, such as damaged pipes, formwork and other construction

material, will be disposed of at an approved dumpsite.

9.2.9 Land Environment

The soil will be collected separately and preserved in stacks with side slopes not exceeding

1:5. The topsoil (soil on the top 15 cm patch) will be preserved separately in a stack covered by
tarpaulin. Efforts will be made to reinstate the soil for backfilling purposes. Topsoil will be reused for
horticultural areas.

The spillage of oil from the machinery or cement residue from concrete mixer plants might

contaminate the soil if not properly collected and disposed off. Thus most stringent safety and
construction management norm will be implemented at site.
9.2.10 Health & Safety Measures

Construction related activities will be confined only to project site area, hence no health

related impact are envisaged within the project influenced area during the construction stage and
will be limited to occupant levels.

Proper drinking water, sanitation and first aid facility will be provided at the construction site,

with trained shift supervisors, which will ensure minimum adverse occupational health impacts on
the construction worker.

A qualified and experienced safety officer shall be appointed. The responsibilities of the safety

officer include identification of the hazardous conditions and unsafe acts of workers and advise on
corrective actions, conduct safety audit, organize training programs and provide professional expert
advice on various issues related to occupational safety and health. He is also responsible to ensure
compliance of Safety Rules/ Statutory Provisions.

9.3 OPERATION PHASE

Since the proposed development is an Industrial Estate, only common facilities like Roads, Storm
water drains, Rainwater harvesting pits, water supply line, Municipal Solid Waste processing area
are proposed. Individual Industries upon establishment, will have their own treatment system for
treating sewage/ effluent and apply for separate EC/ CFE as applicable.

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9.3.1 Air Environment

Proper stack height as per CPCB guidelines will be provided for DGs.

9.3.2 Water Environment

Water pollution from process can be divided into process and domestic wastewater. Individual
industry upon establishment will have their own facility for treating the sewage and effluent.

9.3.3 Solid and Hazardous Wastes

During construction phase, solid waste, scrap will be generated and will be suitably disposed
off.

Individual Industries will be insisted to dispose their hazardous waste generated to the
common TSDF facility at Jawaharlal Nehru Pharma City, Parawada Village, Parawada
Mandal, Visakhapatnam District which is located approximately at 30 Km from site.

9.3.4 Rainwater Harvesting System

Rainwater harvesting structures are proposed for the proposed project for utilization and to recharge
the water resources in the region. Rain water harvesting structures are proposed to recharge the
groundwater resources in the region. The run-off water from the roof of the structures and paved
areas will be collected through storm water drainage system and led to rain water harvesting
structures. The Storm water drainage plan and Rainwater Harvesting facility layout is given in
Annexure-9. Apart from this individual industries, upon establishment will be insisted to have their
own rainwater storage and harvesting facility.

9.4 GREEN BELT DEVELOPMENT

The individual industries will be insisted to provide 33% green belt area in the plots. Of which 10% is
already provided by APIIC as open space. Lush greenery with extensively landscaped areas will be
set.

Linear planting will be carried out along the roads, mass planting will be proposed for

landscaping areas. Buffer zone area will be planted with quick growing trees.

9.5 OCCUPATIONAL HEALTH AND SAFETY

The problem of occupational health, in the operation and maintenance phase is primarily due to
noise, which could affect hearing. APIIC will insist the individual industries who will in turn insist the
contractors on providing necessary personal protective equipments to all the workers. The working
personnel shall be given the following appropriate personnel protective equipments.

Industrial Safety Helmet;

Safety Helmets;

Face shield with replacement acrylic vision;

Zero power plain goggles with cut type filters on both ends;

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DPR of Venkatagiri Industrial Park (APIIC)

Goggles;

Welders equipment for eye and face protection;

Cylindrical type earplug;

Ear muffs;

Electrically tested electrical resistance hand gloves; and

Industrial safety shoes with steel toe.

9.6 RESETTLEMENT & REHABILITATION

Since the land in question is a reserve forest, there will not be any impact leading to resettlement
etc. since there is no displacement of population involved. However, equivalent land will be
developed elsewhere as a forest as required by law.

9.7 ZONING REGULATIONS

The proposed project site location is a reserve forest land which needs approval of the governments
(State and Central) for de-forestation. Once it is approved, the zoning regulations as per DTCP
norms would be applicable.

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10. STATUTORY & LEGAL FRAMEWORK
This chapter gives brief outline of the Forest Conservation Act and the New Government Land
Allotment Policy,2012 (GO Ms No.571, dated:b14/09/2012) and more specifically on the procedure
to be followed for the APIIC proposals on Alienation of government lands. The compatibility of the
proposed site with the provisions of the land allotment policy is also discussed in this chapter.

10.1 FOREST (CONSERVATION) ACT & RULES

As per section 6 of the Forest (Conservation) Rules, 2003,
(1) Every user agency, who wants to use any forest land for non-forest purposes shall make his
proposal in the appropriate Form appended to these rules, i.e. Form A for proposals seeking first
time approval under the Act and Form B for proposals seeking renewal of leases where approval of
the Central Government under the Act had already been obtained earlier, to the concerned nodal
officer authorized in this behalf by the State Government, alongwith requisite information and
documents, complete in all respects, well in advance of taking up any non-forest activity on the
forest land.
(2) Every State Government or other authority, after having received the proposal under sub-rule (1)
and after being satisfied that the proposal requires prior approval under section 2 of the Act, shall
send the proposal to the Central Government in the appropriate forms, within ninety days of the
receipt of the proposal from the user agency for proposals seeking first time approval under the Act
and within sixty days for proposals seeking renewal of leases where approval of the Central
Government under the Act had already been obtained earlier:
Provided that all proposals involving clearing naturally grown trees in forest land or portion thereof
for the purpose of using it for reforestation shall be sent in the form of Working Plan or Management
Plan.
(3) The proposal referred to in sub-rule (2) above, involving forest land of more than forty hectare
shall be sent by the State Government to the Secretary to the Government of India, Ministry of
Environment and Forests, Paryavaran Bhavan, CGO Complex, Lodhi Road, New Delhi-110 003,
with a copy of the proposal (with complete enclosures) to the concerned Regional Office.
(4) The proposal referred to in sub-rule (2) above, involving forest land up to forty hectare shall be
sent to the Chief Conservator of Forests or Conservator of Forests of the concerned Regional Office
of the Ministry of Environment and Forests.
(5) The proposal referred to in sub-rule (2) above, involving clearing of naturally grown trees in forest
land or portion thereof for the purpose of using it for reforestation shall be sent to the Chief
Conservator of Forests or Conservator of Forests of the concerned Regional Office of the Ministry of
Environment and Forests.

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10.2 LAND ALLOCATION POLICY

10.2.1 Introduction
The Revenue (assignment 1) Department, Government of Andhra Pradesh issued Government
Order vide G.O Ms No. 571 dated 14.09.2012- "Government Land Allotment Policy" - uniform
guidelines with regard to government land to be allotted for various purposes to different
Government Departments and Private Organizations both in terms of Extent and Rate.

10.2.2 Guidelines on land allotment

The guidelines for the allotment of land under the new land allotment policy are briefly given as
below.
a) Scientific and Judicious Allotment of Land:
The Government land shall be allotted only for public purposes (such as strategic purposes.
infrastructure and industry where benefits largely accrue to the general public, land acquired for
R&R purposes, village or urban sites: planned development- residential purpose for the poor and
educational and health schemes, land for private companies for public purpose, and needs arising
from natural calamities.
b) Norms on extent:
(I) the norms are prescribed by the concerned administrative department of the government shall be
scrupulously followed in recommending proposes for allotment or acquisition of land for each
project. In case a particular project requires an extent more than a specified norm, the proponent of
the project and the department concerned shall provide concrete justification for the same.
(II) Only waste and dry lands should be proposed for alienation and wet, irrigated lands should not
normally be considered for such purpose. Further, environmentally sensitive and fragile areas such
as tank beds, river beds, hillocks with afforestation etc., shall not be alienated or allotted.
(III) The government lands should not be auctioned for resource mobilization.
(IV) Lands assigned to poor people for agriculture purpose should not be resumed and in case of
inevitable resumption, alternate land should be given to the said assignees apart from rehabilitation.
c) Rational Norms on Fixing Cost of Land:
The allotment / alienation shall be in market value as recommended by the RDO / District Collector
(up to Rs. 1 Cr of total land value) and the A.P.L.M.A (above Rs. 1 Cr of Total land value).
d) Mechanism for Observation of Various Environmental and Zonal Regulations:
Environmental and zonal regulations in regard to land use are to be taken into consideration before
allotment of land for a specific purpose. NOC from urban local body or urban development authority
and DT&CP for the areas falling outside ULBs and UDA areas may be insisted before taking a
decision on the allotment of land by APLMA.
e) Share for the Government and Community in Commercial Projects:
Allotment of lands for commercial purposes shall be based not only on the market value prevailing at
the time of allotment, but also on a specific plan of enterprise to provide sufficient employment, skill

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up-gradation to the locals (project affected families qualified for the employment), etc.,
f) Earmarking a portion of Government Land Proposed for Allotment:
Wherever large extents of the lands, exceeding 100 acres in urban areas and 500 acres in the rural
areas, are proposed to be allotted, it is mandated to set apart 10% of the government land that is
proposed to be allotted to such major project, to meet the future needs of the government and
public purposes as ancillary to the project and also housing facility to the EWS/LIG, except in the
case of polluting industries.
g) Comprehensive Rehabilitation & Resettlement Scheme:
A comprehensive plan for R&R on the basis of the G.O Ms No. 68, Irrigation & CAD (Project WingLA-IV-R&R) Department dated: 08:04/2005 shall be followed while acquiring the lands.
h) Green Belt Area:
As per the stipulations of G.O. Ms. No.86, MA & UD Dept. Dt: 03.03.06, a minimum of 10% of site
area shall be earmarked for organized open space over and above the mandatory open spaces and
to be utilized as greenery or soft landscaping (one or more pockets) etc. Further, wherever
applicable, the allottee shall also provide green buffer along the nalas, tanks and water bodies as
specified in the building rules. The responsibility for developing and maintaining the greenbelt shall
lie with the land allottee.
i) Ban on Alienation on certain Government Lands:
All the vacant Government lands situated within 2 km from the peripheral areas of Mandal
Headquarters shall be got entered in the Prohibitive Order Book and alienation of such government
lands banned, except in the case of house sites the land could be utilized with prior permission of
concerned District collector.

10.3 LAND ALLOTMENT PROCEDURE AS PER POLICY

The government of Andhra Pradesh allots lands to industrial units in the industrial parks through the
Andhra Pradesh Industrial Infrastructure Corporation Ltd (APIIC) and sometimes to industries
directly. The new land allotment policy provides guidelines on various parameters on allotment of
land to industries. The procedures to be followed by APIIC for land allotment are given below.

APIIC shall prepare DPRs for industrial clusters in different parts of the state to meet the
industrial land requirement for the next twenty years.

Land requirement for industry shall be made on scientific basis.

Govt. allots land to APIIC based on DPR which details the extent of land required, proposed
investment, employment potential, infrastructure needs and the likely impact on environment.

On the basis of the DPR, land alienation proposals are required to be submitted to the
concerned District Collector.

The concerned District Collector shall initiate land alienation proceedings as per the
requisition made by APIIC.

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The Collector shall recommend the proposal to APLMA, which appraises the same and
makes appropriate recommendations to the Government.

Allotments to the individual industries within the industrial parks shall be done by APIIC only,
following its internal process.

APIIC allots lands on lease basis only w.e.f. 29

th

April 2015 in tune with the New Industrial

Policy 2015-20 of the state government (described subsequently).

10.4 NEW INDUSTRIAL POLICY 2015-20

The proposal for the land allotment from government to APIIC for development of proposed
industrial park at Venkatagiri, Yerpedu Mandal, Chittoor Dist, takes into consideration of the new
government industrial policy 2015-20.

Salient features of the industrial policy are given below:

Under the new Industrial Development Policy (IDP) 2015-2020, the Government approved the
following fiscal benefits covering the categories of (a) Micro, Small & Medium Enterprises (b) Large
Industries (c) Scheduled Caste & Scheduled Tribe Entrepreneurs (d) Backward Class Entrepreneurs
(e) Women Entrepreneurs and (f) Mega Projects:1.0. Micro and Small Enterprises (MSEs)
Small Enterprise means a Unit having the investment on plant and machinery up to limit as defined
by the Government of India from time to time.
Micro Enterprise means a Unit in which Investment on plant and machinery up to limit as defined by
the Government of India from time to time.
Medium Enterprise means an industry in which Investment on plant and machinery up to limit as
defined by the Government of India from time to time.
1.1. Reimbursement of 100% stamp duty and transfer duty paid by the industry on purchase of land
meant for industrial use
1.2. Reimbursement of 100% stamp duty for lease of land/shed/buildings, mortgages and
hypothecations
1.3. Stamp duty will be reimbursed only one time on the land. Stamp duty will not be reimbursed on
subsequent transactions on the same land
1.4. GoAP is committed to supplying uninterrupted 24x7 quality power to all industries operating in
the state.
1.5. Fixed power cost reimbursement @ 1.00 per unit for a period of five years from the date of
commencement of commercial production.
1.6. Reimbursement of 100% net VAT/CST/SGST for a period of 5 years from the date of
commencement of commercial production to Micro and Small Enterprises.

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1.7. Reimbursement of 75% net VAT/CST/SGST for a period of 7 years from the date of
commencement of commercial production or up to realization of 100% fixed capital investment,
whichever is earlier to Medium Enterprises
1.8. MSME projects engaged in recycling waste into environment friendly products/energy (such as
waste to energy, waste to bio-gas, waste to manure) will be brought under zero rated category
schedule of the VAT Act.
1.9. 35% subsidy on cost of plant & machinery for specific cleaner production measures limited to 35lakhs for MSME, provided the measures are certified by Andhra Pradesh Pollution Control Board
(APPCB).
1.10. 25% subsidy for sustainable green measures on total fixed capital investment of the project
(excluding cost of land, land development, preliminary and pre-operative expenses and consultancy
fees) for below mentioned green measures with a ceiling of 50 crore.
a) Waste water treatment: Constructing effluent treatment plant and sewage treatment plant and
using recycled water for industrial purpose, especially zero discharge systems.
b) Green Buildings: Buildings which obtain green rating under the Indian Green Building Council
(IGBC/LEED Certification) or Green Rating for Integrated Habitat Assessment (GRIHA) systems.
c) Use of renewable source of power (erecting captive sun, wind and biomass plants etc.).
d) Installing Continuous Emission Monitoring System (CEMS) for red category industries. The
information should be disseminated continuously to APPCB.
e) Adopting rain water harvesting; restoring water bodies by de-stilting defunct water bodies.
f) Any other environment management project approved by Empowered Committee of Secretaries.
An exclusive MSME Policy will be brought out separately to address the needs of MSME sector
2.0. Large Industries
Large Industry means an industry in which the investment on plant and machinery is less than Rs
500 crores except Micro, Small and Medium Enterprises.
2.1. Reimbursement of 100% stamp duty and transfer duty paid by the industry on purchase of
land meant for industrial use.
2.2. Reimbursement of 100% stamp duty for lease of land/shed/buildings, mortgages and
hypothecations
2.3. Stamp duty will be reimbursed only one time on the land. Stamp duty will not be reimbursed on
subsequent transactions on the same land
2.4. GoAP is committed to supplying uninterrupted 24x7 quality power to all industries operating in
the state.
2.5. Fixed power cost reimbursement @ 1.00 per unit for a period of five years from the date of
commencement of commercial production.

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2.6. Reimbursement of 50 % net VAT/CST/SGST for a period of 7 years from the date of
commencement of commercial production or up to realization of 100% fixed capital investment,
whichever is earlier to Large Industries.
2.7. Large Industries engaged in recycling waste into environment friendly products/energy (such as
waste to energy, waste to bio-gas, waste to manure) will be brought under zero rated category
schedule of the VAT Act.
2.8. 10 % subsidy on cost of plant & machinery for specific cleaner production measures limited to 35lakhs for large industries, provided the measures are certified by Andhra Pradesh Pollution
Control Board (APPCB).
2.9. 25% subsidy for sustainable green measures on total fixed capital investment of the project
(excluding cost of land, land development, preliminary and pre-operative expenses and consultancy
fees) for below mentioned green measures with a ceiling of 50 crore.
a) Waste water treatment: Constructing effluent treatment plant and sewage treatment plant and
using recycled water for industrial purpose, especially zero discharge systems.
b) Green Buildings: Buildings which obtain green rating under the Indian Green Building Council
(IGBC/LEED Certification) or Green Rating for Integrated Habitat Assessment (GRIHA) systems.
c) Use of renewable source of power (erecting captive sun, wind and biomass plants etc.).
d) Installing Continuous Emission Monitoring System (CEMS) for red
category industries. The information should be disseminated continuously to APPCB.
e) Adopting rain water harvesting; restoring water bodies by de-silting defunct water bodies.
3.0. Scheduled Castes / Scheduled Tribe Entrepreneurs
SC/ST Entrepreneurs mean those units established as sole Proprietor or invariably having 100%
share in Partnership/Private Limited Companies. Scheduled Caste and Scheduled Tribe
entrepreneurs can also set up industries covered in the separate list as specified in the Guidelines.
3.1. 100% reimbursement of Stamp duty and transfer duty paid by the industry on purchase of land
meant for industrial use.
3.2. 100% reimbursement of Stamp duty for Lease of Land/Shed/Buildings and also mortgages and
hypothecations.
3.3. 50% rebate in land cost limited to 20 lakhs in Industrial Estates/Industrial Parks
3.4. 25% Land conversion charges for the industrial use limited to 10 lakhs.
3.5. Fixed power cost reimbursement @ 1.50 per unit for 5 years from the date of commencement of
commercial production.
3.6. Seed capital assistance to First Generation Entrepreneurs @25% of the Machinery cost, which
will be deducted from the eligible investment subsidy.
3.7. 35% investment subsidy on fixed capital Investment by SC & ST Entrepreneurs and additional
10% investment subsidy for SC Women & ST Women Entrepreneurs, with a maximum limit per unit
is 75 lakhs (i.e. 35% for SC & ST Entrepreneurs and 45% for SC Women and ST Women

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entrepreneurs). Additional 5% investment subsidy for units set up in Scheduled Areas by ST
entrepreneurs with a maximum limit per unit is 75 lakhs.
3.8. Reimbursement of 100% net VAT/CST/SGST to Micro and Small Enterprises for a period of 5
years from the date of commencement of commercial production.
3.9. Reimbursement of 75% net VAT/CST/SGST to medium enterprises for a period of 7 years from
the date of commencement of commercial production or up to realization of 100% fixed capital
investment, whichever is earlier.
3.10. Reimbursement of 50% VAT/CST/SGST to large enterprises for a period of 7
years from the date of commencement of commercial production or up to realization of 100% fixed
capital investment, whichever is earlier.
3.11. Interest subsidy on the term loan taken on the fixed capital investment in
excess of 3% per annum subject to a maximum reimbursement of 9% per annum for a period of 5
years from the date of commencement of commercial production. This benefit is also applicable to
the Service Sector units set-up under this policy.
3.12. 50% Reimbursement of cost involved in skill upgradation and training local manpower limited
to 5,000 per person.
3.13. 100% subsidy on the expenses incurred for quality certification/ patent registration limited to 3
lakhs for micro and small enterprises.
3.14. Incentives under Swachh Andhra will be applicable for SC/ST entrepreneurs.
3.15. For enterprises set up by SC/ST entrepreneurs, infrastructure like roads, power and water will
be provided at doorstep of the industry for standalone units by contributing 50% of the cost of
infrastructure from IIDF with a ceiling of 1 crore, subject to:
a. The location should be beyond 10 Kms from the existing Industrial Estates/IDAs having vacant
land/shed for allotment.
b. Cost of the infrastructure limited to 15% of the eligible fixed capital investment made in the
industry. 50% of the cost of infrastructure is raised to 75% in respect of units set up by ST
entrepreneurs in Scheduled areas.
Note: 50% of the budget will be allocated to manufacturing activities and 50% for service sector
activities. However, in service sector high end vehicles (except taxies, lorries, tippers, water tanker
etc. meant for self-employment) will not be allowed under the scheme.
4.0. Special Package for BC entrepreneurs
The provisions in the package are applicable to those units established as sole Proprietor or
invariably having 100% share in Partnership/Private Limited Companies.
4.1. 100% reimbursement of Stamp duty and transfer duty paid by the industry on purchase of land
meant for industrial use.
4.2. 100% reimbursement of Stamp duty for Lease of Land/Shed/ Buildings and also mortgages and
hypothecations.

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4.3. 50% rebate in land cost limited to 20 lakhs in Industrial Estates/Industrial Parks.
4.4. 25% Land conversion charges for the industrial use limited to 10 lakhs.
4.5. Fixed power cost reimbursement @ 1.50 per unit for 5 years from the date of commencement of
commercial production.
4.6. Seed capital assistance to First Generation Entrepreneurs @25% of the Machinery cost, which
will be deducted from the eligible investment subsidy.
4.7. 35% investment subsidy on fixed capital Investment by BC Entrepreneurs and additional 10%
investment subsidy for BC Women Entrepreneurs, with a maximum limit per unit is 75 lakhs (i.e.
35% for BC Entrepreneurs and 45% for BC Women entrepreneurs).
4.8. Reimbursement of 100% net VAT/CST/SGST to Micro and Small Enterprises for a period of 5
years from the date of commencement of commercial production.
4.9. Reimbursement of 75% net VAT/CST/SGST to medium enterprises for a period of 7 years from
the date of commencement of commercial production or up to realization of 100% fixed capital
investment, whichever is earlier.
4.10. Reimbursement of 50% VAT/CST/SGST to large enterprises for a period of 7 years from the
date of commencement of commercial production or up to realization of 100% fixed capital
investment, whichever is earlier
4.11. Interest subsidy on the term loan taken on the fixed capital investment in excess of 3% per
annum subject to a maximum reimbursement of 9% per annum for a period of 5 years from the date
of commencement of commercial production.
4.12. 50% Reimbursement of cost involved in skill upgradation and training local manpower limited
to 5,000 per person.
4.13. 50% subsidy on the expenses incurred for quality certification/patent registration limited to 3
lakhs for micro and small enterprises.
4.14. Incentives under Swachh Andhra will be applicable for BC entrepreneurs.
4.15. For enterprises set up by BC entrepreneurs, infrastructure like roads, power and water will be
provided at doorstep of the industry for standalone units by contributing 50% of the cost of
infrastructure from IIDF with a ceiling of 1 crore, subject to:
i. The location should be beyond 10 Kms from the existing Industrial Estates/IDAs having vacant
land/shed for allotment.
ii. Cost of the infrastructure limited to 15% of the eligible fixed capital investment made in the
industry.
5.0. Women Entrepreneurs
Women entrepreneurs mean those units established as sole Proprietress or invariably having 100%
share in Partnership/Private Limited.
5.1 25% investment subsidy on fixed capital investment by women entrepreneurs, with a maximum
limit per unit of 30 lakhs.

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5.2 Seed capital assistance to First Generation Entrepreneurs @15% of the Machinery cost, which
will be deducted from the eligible investment subsidy.
5.3 All other incentives as per Industrial Development Policy 2015-20.
6.0. Mega Projects
Projects with an investment of at least 500 crore or direct employment generation of 2,000 will be
accorded mega industry status. Further, for sectors such as textiles, food processing, biotech etc.
definition of mega project may be different. The Government will extend tailor-made benefits to
mega projects to suit particular investment requirements on case to case basis based on the
gestation period, pioneering nature, locational aspects, technology, projects importance to the
states industrial growth and its ability to generate large scale employment for people or revenues for
the state.
7.0. Land
The state of Andhra Pradesh has an identified land bank of 3 lakh acres and is further in the process
of consolidating an additional industrial land bank of approximately 7 lakh acres. The consolidated
land bank of 10 lakh acres would give the state a strategic edge in attracting investments. To
achieve the same, government shall identify and acquire land through a transparent and farmer
friendly land pooling/acquisition policy. This land will be administered within the following framework:
7.1. Inventory of public/pooled/acquired lands: All such lands shall be surveyed and the information
made available in the public domain. It is envisaged that GIS will be used to create land inventory
and update information of land parcels on real time basis
7.2. Land Information System: Key details and parameters about land parcels (e.g. soil type,
distance from sea-ports, airports, railway stations etc.) will be made available online.
7.3. Land Pooling/Acquisition and Allotment
a. Land consolidation
Consolidation of Industrial Land will be done by the Industries & Commerce Department following
the states land pooling/acquisition policy.
b. Land allotment
Land shall be allotted on 99 years lease. SIPB may consider outright sale of land in the following
cases:
i. the investment is exceeding Rs.100 Crores;
ii. the gestation period of the project is more than 5 years;
iii. the industry is located in backward areas to be notified by the Government, for this purpose;
iv. departments, PSUs and agencies of the Central Government;
v. financial closure of the project requires a sale;
vi. projects identified by the Government as critical and prestigious;
vii. other categories to be notified by the Government from time to time.

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8.0. Ease of Doing Business
GoAP accords highest priority to improve Ease of Doing Business. Timely clearances and
responsive post investment facilitation services have been identified as the cornerstone for
improving business environment and boosting investor confidence. To that end, the State shall
provide both pre and post investment services to facilitate rapid industrialization.
GoAP will create an e-platform, for facilitating all necessary clearances for starting and operating an
industry within 21 working days. This platform shall integrate
requisite

pre-establishment

and

pre-operation

stage

clearances

provided

by

multiple

agencies/departments with provision for online filing and tracking.

9.0. State Investment Promotion Board (SIPB)
For creating an enabling structure to expedite decision making pertaining to industrial projects, SIPB
has been constituted with the Chief Minister as the Chairman and the Chief Secretary to the
Government as Member Convener. The SIPB shall meet once a month for taking final decision on
investments/promotion activities and for approval of mega projects.
10.0. Empowered Committee of Secretaries
An Empowered Committee of Secretaries chaired by the Chief Secretary to the Government and
convened by Secretary, Industries shall meet every month to monitor and review the following:
i. Performance of single desk system
ii. Policy issues relating to investment facilitation and project grounding
iii. Implementation of all large/mega ongoing projects
iv. Screening of all mega project proposals
v. Scrutiny of all issues/proposals which may merit consideration of the SIPB
vi. Any other issue governing industrial environment proposed by Commissioner Industries.

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11. KEY ISSUES
11.1 Land acquisition
The acquisition of the land is the primary issue for any infrastructure development projects in the
country. The land acquisition issue is also intertwined with the ownership of the land, usage of the
land and also the terrain. Hence the land acquisition would be the complex exercise for such
infrastructure development projects. These factors need to be taken into consideration during land
acquisition for the development purpose.

11.2. Availability of Water

The major source of water supply for the region of Venkatagiri is Ground Water, which is available
at 80 to 120 meters depth. There is a proposed SS Canal Somasila to Swarnamukhi river passing
along the border of the proposed site of Venkatagiri and recently the work also commenced in this
direction. When the Handri - Neeva Project is completed, the area will have sufficient waters.

11.3. Funding sources

The total investment for the development of infrastructure facilities in Venkatagiri is estimated to be
approximately Rs 1400 Cr. Out of this, the funding for non-PPP would be around 90% of the total
investment requirement which is about Rs. 1273 Cr. which would be majorly funded by the
Government of Andhra Pradesh / Government of India. Hence the sources of such governmental
fund needs to be clearly identified which could be budgetary allocation.

11.4. Environmental Issues

The area being considered i.e., Venkatagiri is a reserve forest area away from the sanctuary. The
power to de-notify the area for industrial / commercial rests with the Government of India. The entire
area of Venkatagiri including hilly area lie away from the SVWL the sanctuary and very far away
from human habitat. It may not pose any environmental problems. Already a company has been
set-up viz., M/s NTPC BHEL Power Project Pvt. Ltd.(NBPPL) in about 900 acres adjacent to the
proposed site of Venkatagiri. This land is considered suitable for industries as it is free from any river
streams

nor

major

habitation.

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ANNEXURE 1

80

ANNEXURE 2

DPR of Venkatagiri Industrial Park (APIIC)

ANNEXURE 3

82