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Dr Y S Rajasekhara Reddy’s sudden demise was indeed shocking, shuddering the state and taking it to unspeakable spectrum of emotions. After all, the man had the might to usher the state towards a new horizon filled with concrete plans of development and welfare. Undoubtedly, YSR has left behind a huge legacy. A legacy once realised will see Andhra Pradesh touch heights of self-sufficiency in every facet of progress. The development and welfare measures launched by YSR are pioneering, setting examples for others to follow. Programmes and schemes like Jalayagnam, INDIRAMMA, and Aarogyasri are first-of-its-kind initiatives by any government and the profoundness of each in terms of benefit is immense. Most of these schemes are to be carried forward from where it was left by the leader and it was his clear foresight that after getting re-elected he announced the focus for the next five years to be complete implementation of all the schemes and programmes already launched. With K Rosaiah taking over the reins of the state, the time has come to fulfill YSR’s legacy. It is time for the state to move ahead towards realising all the dreams dreamt by YSR. The journey may not be easy, but in its entirety, most of the framework is already complete. The job left is to carry it forward and shape it to its completion. In this edition of Andhra Pradesh Celebrations, we have focused on the road ahead of sectors that act as the growth engines of the state. All development and welfare measures that are planned in the near future in different sectors have been covered. We have also focused on the private players who have parallely played a vital role in the holistic development of Andhra Pradesh. We hope that from this formation day 2009, the roadmap already drafted and the legacy of YSR as well as the dreams of millions of citizens of Andhra Pradesh will find its suitable destiny.

Biju Mathews General Manager The Indian Express Limited


Andhra Pradesh Celebrations - 2009


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Development & Welfare: The Road Ahead Dr.Y.S.Rajasekhara Reddy has left behind a profound legacy. Now the arduous task of fulfilling the legacy lies with K Rosaiah, the present CM of Andhra Pradesh. Page: 6

Agriculture Page: 30


Irrigation Page: 36

The Dream Lives on A leader of the masses, YSR was a name synonymous with development of Andhra Pradesh. His tragic demise has left a void in the hearts of millions. His endeavours are now a tribute to his legacy. Page: 14

Infrastructure Page: 40

Andhra Pradesh Celebrations - 2009

Industry Page: 50

Health Page: 58

Infotech Page: 70

Housing Page: 76

Banking Page: 80

Power Page: 88

Technical Education Page: 90

Higher Education Page: 94

Event Diary Page: 102


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Never in the history of this country, in any five years period in postindependence era, has any State ventured to implement so many developmental and welfare programmes as was done in Andhra Pradesh during the five years period 2004-09 under the leadership of Dr.Y.S.Rajasekhara Reddy. Now the arduous task of fulfilling these programmes lies with K Rosaiah, the present CM of Andhra Pradesh. The road ahead is long, but Rosaiah is definitely confident with his roadmap for the future. 6

Andhra Pradesh Celebrations - 2009

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ho could have summoned courage even to think of sanctioning 55 lakhs pensions to the old aged etc., supplying rice at two rupees a kg covering about 80% of the State’s population; supplying 1500 crore units of free power per annum to the farmers; constructing 35 lakh weaker section houses, 30 lakh more houses are under various stages of completion; reimbursing the entire tuition fees for about 25 lakh post-metric students; subsidizing interest by more than 4% per annum in respect of crop loans and 6% per annum in respect of loans to women SHGs, entailing a budgetary expenditure of over Rs.1600 crores; spending Rs.41,000 crores on the massive irrigation programme called ‘Jala Yagnam’, creating a new irrigation potential for about 15 lakh acres in a five year period?! Now the present challenge of the state government of Andhra Pradesh to look into these successes and ensure that consistency in terms of implementation and delivery is ensured. In order to build on the successes achieved in the last five years, the government plans to continue many of the programmes and initiatives. Welfare programs such as Arogya Sri, the Rs.2/Kg rice scheme, pension scheme, weaker sections housing program, land distribution scheme and Indira Prabha, the SHG program, reimbursement of tuition fee scheme, package for weavers, tappers etc. and reservation for Muslim minorities will be given a push in the years ahead. The Government proposes to increase the quantity of rice for white card holders in the State from 4 kgs to 6 kgs per person per month. The Government proposes to launch Mobile Agri and Livestock Clinics that would be equipped to provide services to farmers at their doorstep on matters like soil testing, agricultural practices, animal health care, artificial insemination etc. Dhobi ghats will be improved to mitigate drudgery. The Government is committed to encouraging BC rural artisans like goldsmiths, blacksmiths, carpenters, weavers, tappers, washermen etc. and helping them form SHGs so that they can easily finance purchase of tools for common use or individual use. The Pavala Vaddi Scheme is likely to be expanded to include these SHGs. The Government has taken special measures to step up the literacy rate among SCs, STs and girls, while improving the overall literacy rate in the next five years. The entire health care administration in the State, starting with the primary health centres, will be overhauled in a phased manner.


Andhra Pradesh is already the 3rd largest power utility in the country, with installed capacity 11,134 MW. AP GENCO has taken up many projects with a view to doubling the installed capacity in the next five years. The implementation of all these projects will be sped up. Once the issues over release of natural gas in the K-G basin are settled, the State will have an additional 1800 MW of power at its disposal. Several merchant power projects are coming up in the State. The State will be in a position to provide 24x7 power supply throughout the State, while ensuring 9-hour power supply to the farm sector. The government has drawn up plans to ensure that every household in the State has a gas connection. As for SC categorization, the State legislative assembly has unanimously passed a resolution in support of the move. The matter is pending with the Central Government. The State Government proposes to pursue the matter with the Central Government. On the Telangana issue, the Congress Party has pledged to honour the stand taken by the Government on the floor of the House. The INDIRAMMA programme will be given a thrust, with focus on weaker sections housing, pensions, drinking water, roads, drains, electrification and sanitation. The government is committed to achieving the phase-wise targets. Like in the case of Phase-1, the Government will sanction an additional Rs.20,000 as loan from the budget of AP State Housing Corporation, in place of bank loan in rural areas, to beneficiaries of SC & ST communities for completion of their houses under INDIRAMMA Phase-II and Phase-III. The emphasis will be on completing drinking water projects, internal roads, drains, electrification and sanitation programmes in the first three years. The Jalayagnam programme will continue to be the flagship programme of the Congress party. Having achieved a remarkable success in its previous tenure, the government is geared to complete the remaining projects. Recognizing the aspirations of the people of Mahabubnagar, Nalgonda, Prakasam, Nellore and the four Rayalaseema districts to have a fair share of the Krishna waters, the Government is determined to take up new projects that would create an additional ayacut of 24.5 lakh acres, provided the restrictions imposed by the Krishna Water Dispute Tribunal are lifted. Social empowerment through education will continue to get top priority. The Government has already initiated measures to expand both school and higher education in the State. 7 Andhra Pradesh Celebrations - 2009

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Initiatives like scholarships and reimbursement of tuition fees for eligible students among BCs, SCs, STs and Minorities will be strengthened to include additional economically backward communities. Considering that social welfare residential schools have performed better than other government schools, the government wants to convert certain hostels with adequate facilities into residential schools in a phased manner. English will be introduced as a medium of instruction for all classes in the residential schools in a phased manner. The standards in all SC, ST, BC and Minority residential schools across the State will be enhanced by improving the infrastructure and number of teachers so that they are on par with Navodaya schools. Against the larger plan of establishing a University in every district, the government proposes to achieve a graduate

enrolment ratio of 25% in the State by expanding polytechnic/ ITI and quality medical institutes. Broadband connectivity will be expanded to improve standards as well as connect public and private educational institutes. Skill development will be fostered through community colleges. The Abhaya Hastham scheme that guarantees a minimum pension of Rs.500/- per month for women members of SHGs completing 60 years will be continued. There will be no household without electrical connection or a sanitary toilet. The government has promised financial inclusion. Legislation concerning forest land rights will be implemented to secure the land rights of the Scheduled Tribes.


Industry, IT, power and infrastructure will occupy the center stage. The industries and services sectors have witnessed an impressive growth during the last five years. The government is committed to increasing the share of manufacturing in the GSDP to 30% in a phased manner, as this sector, next only to agriculture, provides greatest social equity in terms of employment. In the next few decades India will be in a position to showcase its youth power. The Congress government is exploring every means to harness Yuva Shakti (energy of the youth) by involving them in nation-building activities and inculcating in them values of secularism and national integration. Towards this end, the Rajiv Yuva Shakti programme will be substantially expanded. The Government has adopted several measures with an eye on overall growth in urban areas. It has taken initiatives to access funds under the recently launched Government of India schemes such as Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT), Basic Services for Urban Poor (BSUP) and Integrated Housing and Slum Development Program (IHSDP). Under these schemes, the emphasis will be on water supply and sewerage; integrated development of slums, including housing; development of infrastructure projects and solid waste management. The expeditious completion of the Krishna Drinking Water Supply Scheme Phase II involving an estimated expenditure of Rs.1,082 crore is high on the agenda of the government, as it would add 90 MGD of water and enable daily supply of water in the areas under the Greater Hyderabad Municipal Corporation. Future plans will zero in on highpotential areas of administrative reforms, infrastructure, agriculture and allied activities, empowerment of youth and women, power and urban development, as they have contributed to substantially improving the quality of life of a large number of people in the State. It was Dr Reddy’s firm conviction that faster economic growth is the only remedy for faster reduction of poverty, as the revenues of the State bear a direct proportionality to its GDP. His main focus was, therefore, to increase growth and consequently the revenues.

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ROSAIAH’S COMMITMENT Chief Minister K.Rosaiah has given a firm commitment to the people of the state that every programme started and announced by late Chief Minister Dr.Y.S.Rajasekhara Reddy would be continued with more vigour and dedication. The Chief Minister has asserted that it was time for all sections of people to rededicate themselves to realise the dream cherished by Dr.Reddy to make Andhra Pradesh No.1 state in all sectors. “The vast number of ongoing schemes and projects would be continued and the programmes contemplated would be taken up, notwithstanding the financial constraints. There is no need for any doubt or apprehension among the people. Both development and welfare programmes are nothing but two eyes to the State Government. The Government will continue its sustained efforts in achieving desired results,” he stated.

Rosaiah said despite severe drought in about 1,000 mandals, his government was taking all measures to overcome the crisis. Alternative crops were taken up in all the drought-hit areas; drinking water supply in both urban and rural areas was streamlined and fodder cultivation was taken up in several areas. “We are also making efforts to control the prices through effective market intervention programmes. The prices of rice and pulses have stabilised to a large extent,” he said. He also allayed apprehensions about the implementation of Aarogyasri scheme. “In fact, we are planning to expand its scope further by bringing government and retired employees also into the scheme. It will ensure absolute cashless treatment for any disease in any corporate networked hospital of their choice and free out-patient consultation. They will also be eligible for free ambulance service,” he said.

Rosaiah said out of 81 major and medium irrigation projects taken up in the last five years, as many as 12 Project fully, 13 projects partially were completed and works on many more projects were in full swing. The state government had requested the Centre to declare Polavaram and six other major irrigation projects as National Projects. While Polavaram was all set to get the National Project status, the Centre had responded positively on other projects. Similarly, the government had taken up micro irrigation project on a large scale to provide water to 5,40,800 acres in the State. “We are expecting a huge loan of over Rs 8,547 crore from Japan International Cooperation Agency (JICA) for micro irrigation projects. Every irrigation project will be completed in right earnest, there should be no doubt on this,” he added. The Chief Minister said all other schemes and programmes such as supply of rice to poorer sections at Rs 2 a kg, free power supply for farmers, fee reimbursements for students belonging to weaker sections, social security pensions, Aarogyasri and Abhayahastham, initiated by Dr.Reddy, would be continued without any hassles. “With cooperation from all sections, I am confident that I will be able to carry forward all these schemes,” he said.


On the outbreak of epidemic Swine flu, the Chief Minister said the government had also included the H1 N1 Flu treatment in the Aarogyasri scheme. A concerted effort was on to control the spread of Swine flu. “We have added more ventilators and isolated rooms to more hospitals to treat the dreaded disease. We have also taken up awareness campaign and stocking more medicines like Tamiflu to treat the patients,” he said. He assured that the government will strive for peace, happiness and prosperity of all sections of the people.

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20-POINT PROGRAMME Rosaiah also noted that all the departments concerned and the officials had achieved an enviable position for Andhra Pradesh in various sectors under the implementation of 20Point Programme of the Government of India. The report prepared by the Ministry of Statistics & Programme Implementation of the Government of India gave highest rankings to Andhra Pradesh in different sectors. Andhra Pradesh ranked No.1 and awarded ‘Very Good’ in Employment Generation (Individual Swarojgaries Assisted under Swarnajayanti Gram Swarojgar Yojana-SGSY); providing income generating activities to Self Help Groups; for targetted public distribution system (TPDS) - Food Security; Antyodaya

implementation of National Rural Employment Guarantee Scheme. In spite of all odds, and heavy increase in power demand, the Energy Department could supply record number of units per day and achieved the top-most position in the country,” he said. Tackling the fluoride problem of the Nalgonda District was taken up on a mission mode in Andhra Pradesh and the government has succeeded in providing fluoride-free safe drinking water to majority of the people of Nalgonda District. The Public Distribution System in Andhra Pradesh is one of the best in the country and it was once again proved by the Civil Supplies Department by bagging ‘Very Good’ ranking in the Antyodaya Anna Yojana and Public Distribution System. The State Government supplies Rs.2 a kg. rice to 1.83 crore white ration card holding families in the State.

RECENT HIGH-LEVEL INVESTMENTS APGIC investment The Andhra Pradesh Gas Infrastructure Corporation (APGIC), a special purpose vehicle, along with its consortium partners has outlined an investment plan of Rs 1,600 crore in the four blocks it bagged in the NELP VIII bidding process. These investments will cover all the four blocks and its partners will be ONGC, Oil India, NTPC and British Gas, the last engaged in the deep water block.

Anna Yojana (AAY) also under food security; Rural Housing for houses constructed under Indira Awas Yojana; for addressing water quality problems in slipped back habitations under rural water supply programme; universalisation of ICDS Scheme for cumulative ICDS blocks operational; functional anganwadis, area covered under plantation for afforestation - public and forest lands; maximum seedlings planted - public and forest lands; maximum length of roads constructed under CMGSY and for electricity supplied against demands. The Chief Minister also stated that the hard work turned out by the departments of Rural Development, Civil Supplies, Housing, Forest, R&B and Energy was noteworthy. “Rural development in Andhra Pradesh already earned encomiums for the successful and transparent


The APGIC contribution will be about Rs 160 crore for exploration over a seven-year timeframe. Rosaiah, described this as a major initiative of the State Government to bridge a long pending gap. “We will be the second State in the country to foray into gas exploration after the Gujarat Government owned corporation,” the CM said. The deep water block KG-DWN is spread over 800 sq km with equity of ONGC (40 per cent), British Gas (35 per cent), Oil India (15 per cent) and APGIC (10 per cent). The APGIC itself is a 50:50 venture between AP Industrial Infrastructure Corporation (APIIC) and AP Generation Corporation (AP Genco). APGIC had bid for five blocks and secured four. Of the four, three are shallow. Significantly, two of the blocks are located adjacent to the D6 blocks of Reliance Industries Ltd.

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“We have a clear understanding with the consortium partners that the gas from these reserves would be used to meet the State’s requirement before it is evacuated to other users,” Rosaiah said. NTPC-BHEL power equipment manufacturing unit The Union government has decided to set up the proposed Rs 6000-crore NTPC-BHEL power equipment manufacturing unit in Andhra Pradesh. An announcement to this effect was made by the AP government. The state government stated that the Centre had agreed to set up the project by NTPC-BHEL Power Projects Private Limited, a joint venture between public sector giants NTPC Limited and BHEL, at Mannavaram village in Chittoor district.

will be continued and completed in all respects in the next five years. The left over houses for which sanctions have already been given under all the three phases will be completed. The Government will sanction an additional amount of Rs.20,000 as loan from the budget of A.P. State Housing Corporation in place of bank loan in rural areas to beneficiaries of SC & ST communities for completion of their houses under INDIRAMMA Phase-II and Phase-III also, as in the case of Phase-I. Special emphasis will be given for completion of drinking water projects, internal roads, drains, electrification and sanitation programmes in the first three years on a saturation mode.

The project would provide direct employment to 6,000 people and indirect employment to another 30,000. It will also pave the way for establishment of 400 ancillary units. The state cabinet had recently approved allotting 750 acres for setting up the Greenfield unit. The land has been allotted at the rate of Rs 100 per acre.

PROGRAMMES, TOMORROW Jalayagnam The Jalayagnam programme will continue to be the flagship programme of the Congress Party. The Congress Party resolves to complete the balance projects in a time bound manner. In addition to the above, in recognition of the growing aspirations of the people in Mahabubnagar, Nalgonda, Prakasam, Nellore and the four Rayalaseema districts for a fair share in Krishna waters, it is proposed to take up new projects creating an additional ayacut of 24.5 lakh acres after restrictions imposed by the Krishna Water Dispute Tribunal are lifted. This comprehensive irrigation policy will not only help in effective utilization of every drop of water for agriculture and drinking water purposes but also substantially enhances the incomes of a large number of farmers and others in the rural areas. Indiramma The INDIRAMMA Programme started essentially for saturating the Weaker Section Housing, Pensions, provision of drinking water, roads, drains, electrification and sanitation


Agriculture and allied activities Agriculture and allied activities will continue to receive top most priority. Despite the country making great strides during the last 62 years, a large number of people continue to depend on agriculture; with the result, agriculture in the country is not only a source of food security but is also livelihood security for about 60% of the population. As Indian population increased from 36 crores in 1947 to 112 crores in 2008, the agricultural land has been further fragmented, lending itself to little or no possibility of application of precision farming techniques and mechanization, which are the only two solutions for increasing agricultural productivity to meet the food requirements of the ever growing population.

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It is therefore, proposed to revisit the Cooperative Movement. It is true that the Cooperative Movement has by and large not succeeded in the country in the past. Nevertheless, the experiences in China and Israel confirm that in countries like India, where there is a severe fragmentation of agricultural land, Cooperative approach to farming and related issues is the only long term solution. It is therefore proposed, as a first initiative after the formation of the new Government after the elections, to select one or two villages for every Mandal in the State for the

Cooperative Movement, by whatever name called, for an integrated approach to farming, with an active support from the Government and Commercial Banks. Given the present day communications and information explosion, it will not be difficult to replicate the success. The Congress Party’s commitment is to ensure that there is an assured minimum decent returns/income to every farmer. All other initiatives and schemes implemented in the last five years will continue. Additionally, it is also proposed to launch Mobile Agri and Livestock Clinics with consultation facilities on the lines of 108 and 104 for providing ready service to the farmers at their doorstep on matters like soil testing, agricultural practices, animal health care, artificial insemination etc. Social Empowerment Social Empowerment through Education will continue to get top priority. In recognition of this, the Congress


Government has taken unprecedented number of initiatives by expanding both the higher and school education in the State. It is proposed to continue all the initiatives like scholarships and reimbursement of tuition fees for post metric students not only among the BCs, SCs, STs and Minorities but also for the economically backward communities. Similarly the scholarships etc. will also continue. As the present experience shows that the social welfare residential schools have performed better than other Government schools, it is proposed that wherever the existing facilities are adequate and suitable, the existing hostels will be converted into residential schools in a phased manner. English as a medium of instruction will be introduced for all classes in the residential schools in a phased manner. All SC, ST, BC and Minority residential schools across the State will be elevated to the standards of Navodaya schools by improving the infrastructure and number of teachers. While completing the mission of establishing a University in every district, the government has proposd to achieve a graduate enrollment ratio of 25% in the State by expanding polytechnic/ITI and quality medical institutes. In addition, education standards will be enhanced by connecting both public and private educational institutes with broadband network and skill development fostered through community colleges. Empowerment of Women will continue to receive the same level attention as it did during the last five years. The SHG programmes both in the rural areas and urban areas will be further expanded and strengthened. The Pavala V addi scheme will be continued. The Abhaya Hastham scheme guaranteeing a minimum pension of Rs.500/- per month for women members of SHGs completing 60 years will be continued. Industry, IT, Power and Infrastructure Industry, IT, Power and Infrastructure will continue to get importance. The Industries and Services sectors in the State has also witnessed an impressive growth during the last five years. The government is committed to increasing the share of manufacturing in GSDP to 30% in a phased manner as this sector provides greatest social equity in terms of

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employment, next only to agriculture. All other infrastructure projects already taken up will be completed. The MSME Sector shall be given order preference over all bidders for orders within the State. This will be backed with payment preference as a priority over others. The Cable TV Network has played a significant role in expanding the visual media in the State, which is not only the cheapest entertainment for poor and middle class sections but has also emerged a major information source.

taken initiatives to access funds under Government of India schemes i.e. Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT), Basic Services for Urban Poor (BSUP) and Integrated Housing and Slum Development Program (IHSDP). Special emphasis will be given on water supply and sewerage, integrated development of slums including housing, development of

infrastructure projects, Solid Waste Management etc., under these schemes. The state government has taken expeditious action for completion of Krishna Drinking Water Supply Scheme, Phase II with an estimated cost of Rs.1082 crores by adding 90 MGD of water, thereby enabling daily supply of water in the area of Greater Hyderabad Municipal Corporation. All the ongoing projects like the ORR and projects like the Metro Rail project are planned to be completed at the earliest.

Youth Empowerment In the next few decades India will probably have the world’s largest set of young people. Even as other countries begin to age, India will remain a country of young people. The thrust of the Congress Party would be on harnessing Yuva Shakti (the youth) by involving them in various nation-building activities and to inculcate the values of secularism and national integration; The Rajiv Yuva Shakti programme will be substantially expanded. Urban Development About 27% of the State’s population lives in urban areas and their holistic management is a matter of great importance. In this direction, the Congress Government has taken many policy decisions and initiatives to facilitate overall growth. The Government has


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Leaders establish the vision for the future and set the strategy for getting there; they cause change. They motivate and inspire others to go in the right direction and they, along with everyone else, sacrifice to get there - John Kotter

The Dream Lives on

A leader of the masses; a God among many; YSR was a name synonymous with every aspect of the development of Andhra Pradesh. His tragic and sudden demise has left a void in the hearts of millions who have benefited from his kindness, his humbleness and his greatness. His endeavours are now a tribute to his legacy.


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The Dream Lives on

Late Dr. Yeduguri Sandinti Rajasekhara Reddy, the former Chief Minister of Andhra Pradesh, was acclaimed as a perfect blend of an able administrator and a loved leader of the masses, both by National and International figures that visited the state of Andhra Pradesh. Dr. YSR was known for his unflinching grit, steadfast determination and never wavering boldness in translating his visions into reality. Having a clear vision is one thing and striving to make it a reality is another. Dr. YSR possessed both these qualities in him, which is evident from the fact that his government policies accentuated the significance of agriculture on one side and made provisions for the industrial sector on the other. The dream and vision of YSR gave birth to many an initiatives and schemes that were implemented by the government of Andhra Pradesh to alleviate the hardships faced by the citizens of the state. “My ultimate aim is to make Andhra Pradesh the Number One State in the country. I want to provide basic civic amenities to all the people. I want to make sure that there are no hungry people in my State. I want to help the farmers to be self-reliant. I have not promised heavens to the people. In our manifesto, we said we will continue and complete all the ongoing development and welfare programmes undertaken by us. I want to make the delivery mechanism work well. I want to see that the benefits of the government schemes reach each of the real beneficiary. We want to complete all the ongoing irrigation programmes and others already grounded. We want to continue free power to the farmers and increase the hours of supply from 7 to 9. This is being done in a week’s time. We have increased the Rs.2-a-kg rice scheme from 5 to 6 kgs per head. We want to concentrate on good governance, best delivery mechanism and ensure equality of opportunity to all,” he had said few days before his demise. He had always felt that the main challenges faced by the state were the delivery mechanism, global recession, seasonal variations and of course corruption and unemployment. “We are fighting these out to make an egalitarian society where all the people of the State can live happily.” Commenting on new schemes, he had made it clear that implementation was the key agenda. He said, “There are no new schemes being planned in the next five years. We want to concentrate on all the schemes grounded by us. We want to complete all the development and welfare programmes and projects already grounded with definite milestones. We do not want to take up any more new projects. We just want to fulfill all the promises made during the elections like 9 hours free power supply to farmers; 6 kg ration rice for Rs.2-a-kg per head etc. We will also implement the ‘Abhayahastham’ scheme whereby all the SHG women will get co-contributory pension at the age of 60 and above. “


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Andhra Pradesh Celebrations - 2009

As promised to the people earlier, Dr. Reddy kept his word to bring “Indiramma Rajyam” to the state, distributing 1.55 lakh acres of land to in a single day, 1.12 lakh landless poor, including S.Cs, S.Ts, B.Cs, the pattas of which were provided to the woman of beneficiary’s family. On August 21st 2005,the Prime Minister Mr. Manmohan Singh launched the Second Phase of the Land distribution Programme, in which 1.68 lakh acres of land was distributed to about 1.06 lakh landless poor families. This mammoth programme is unique in the history of Andhra Pradesh. In all,in two phases, more than three lakh acres have been distributed among the landless poor in the State.


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The Dream Lives on



Rajiv Palle Bata Rajiv Palle Baata was launched on June 13, 2004 for developmentin a war-footing basis. Improvement of 2500 Km. rural roads is taken with Rs.200 crore Assistance from NABARD in backward areas of the state, in the first phase the ultimate goal of governance is the welfare of the people. Especially the poor in both short-term and long-term. There are many critical areas that directly affect the quality of life of every citizen. The people expect the government to be sensitive, responsive and pro-active to their needs. The emphasis of the government is to percolate the benefits of its performance to all citizens in equal measure.Basing on the Chief Minister’s observations during his Rajiv Palle Baata programme, improvement of 2500 km. roads with Rs. 200 crore and development of rural infrastructure with Rs.300 crore both under NABARD assistance, have been launched in the State.

Rajiv Nagara Bata Rajiv Nagara Baata (RNB) was launched on January 9th 2005 with the objective of enhancing good urban governance, attempting to capture the voice of the poor and vulnerable; and ensure effective implementation of urban development oriented programmes.A Rapid Assessment Feedback on Town (RAFT) approach – first assessing the priorities of communities at the local level and then evolving action plan, was being pursued for its effective implementation.


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Andhra Pradesh Celebrations - 2009

Few programmes and initiatives launched under his leadership include:

AGRICULTURE AND IRRIGATION HARITHANDHRA PRADESH Rejuvenation of agriculture was a gigantic task, and the state government was determined to do it and succeed. What Dr.YSR initiated in the first minute of his tenure as Chief Minister of the State, raised new hopes and aspirations in the entire rural community of farmers, agricultural labourers and the rural unemployed.

though the contribution of Agriculture to the Economy of the state is about 70%. To put an end to this senseless suicide activity immediately, the state government declared moratorium on repayment of loans taken by farmers from private moneylenders for a period of 2 years. The state government announced a Special Package of Relief & Rehabilitation for the distressed farmers, providing succour and financial relief for them. “Rajiv Gandhi Grameena Vidyudeekarana Yojana” (RGGVY) was launched at an estimated cost of Rs.1209.70 core. The scheme envisaged to streamline and strengthen the transmission and distribution system with a strong network of substations, distribution transformers and lines, and thereby complete the electrification of 9283 habitations within 2 years and 45,28,025 households within 3 years in the state. The government waived collections of stamp duty in respect of crop loans to farmers. The Government put forth all-out efforts to inculcate and spread awareness among the farmers about the latest technologies in farm cultivation by way of conducting Rythu Sadassu, Rythu Chaitanya Yatras, Polam Badi, Seed Village, Rythu Bandhu etc., and helped farmers get high yield and more income at low production cost.

The state government waived arrears of power bills relating to agricultural consumption to the tune of Rs.1192 crore. Free power to farmers was introduced as a radical measure, first ever after the formation of the State. The measure was heckled at, and criticized as impractical and overzealous. Ever since Dr. Y.S. Rajasekhara Reddy took over as Chief Minister, the state was being given a new face-lift with a proactive trend in its pro-active, pro-poor and pro-farmer as well as investor-friendly and rural oriented policies. Dr. Reddy expressed his deep anguish and grief at the desperate suicides being committed by indebted farmers in the state,


The Government took up several measures to strengthen market yards and remove intervention of middlemen in purchase-andsale process and checked that remunerative price was made available to the farmers’ produce, particularly in case of groundnut, maize, cotton etc. The government widely popularised “SRI” Type of paddy cultivation and strived to bring among the farmers this method through a programme called “SRI Vari Mee Inta Siri”. Aimed at economic empowerment of farmers and ensuring increased income to the farmers by way of encouraging them in ancillary sectors such as Poultry, Animal Husbandry, Fisheries, Sericulture, Water conservation etc. the State government setup “Agricultural Technology Mission” (ATM) with effect from 15th January 2006. Now, A.P. stands No.1 in the country with highest number of agricultural pump-sets of about 23.78 lakh surpassing Maharashtra (about 22 lakh). With the addition of 1.5 lakh connections to pump sets, the state is envisaged to cross 25-lakh mark, thus the state

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The Dream Lives on

registering 43.63 per cent of total agricultural connections in South India. Under Ryhu Bandhu, Rs.35.88 crore was disbursed as advance to the farmers last year. One lakh more new Rythu Mitra groups would be formed and 10.25 lakh fresh loans would be extended under credit for those who have not availed this facility so far. Registration fee and stamp duty were exempted for loans up to Rs.1 lakh to small/ marginal farmers. A new state seed regulation Bill was introduced for enhanced penalty to erring dealers of spurious seed and adequate compensation to victimized farmers. Agri-credit to farmers was increased to Rs.7,010 crore during Khariff as against Rs.5,105 crore the previous year. An alternative marketing network for horticulture produce costing about Rs.100 crore was entered into with MOU with NDDB to cut down post-harvest losses and ensure remunerative prices to farmers.

its Reservoir, and Indira Sagar (Polavaram) are considered to be milestones in the history of State Irrigation. State Government was determined to complete modernization of Pulivendula Branch Canal and Muylavaram Projects as well as Lendi Project within 2 years. Linking of Godavari and Krishna by constructing Indira Sagar Project and Rajiv Sagar project across River Godavari would become a landmark achievement in the entire country, thus paving way to a new era in water utility. By inaugurating the Janjhavati irrigation (Rubber Dam) project in Vizianagaram district, the first of its kind to be built with Austrian Technology, the State Government proved that it is a performing government, giving priority to farmer’s welfare. The State Government sanctioned the execution of 110 lift

JALAYAGNAM While there was abundant water of about 2745 TMC available for the state, only about 1700 M.W. of water was under utilization in the state, thus giving way to huge quantum of water to go waste into the ocean. About 4000 TMC had been going out waste following heavy rains and floods. The need was to utilize as much water as possible by construction of river projects and bring millions of acres of lands under cultivation in Krishna-Godavari basin. The State Government initiated a series of 26 important irrigation projects and 4 major projects under Jayalagnam programme at huge expenditure of Rs.46,000 crore, which envisaged to bring Ten Million acres of lands under cultivation, including stabilization of 3.5 million acres of existing ayacut apart from providing drinking water to 12 million people in towns and villages across the irrigation canals and generating 2700 M.W. of Power. It was planned to complete eight of these projects within 2 years, thus bringing 16.58 lakh acres under cultivation. These are Vamsadhara Stage-2 Phase-1, Tatipudi Lift. Pushkaram Lift, Telugu Ganga, Somasila, Chokkarao Lift Irrigation Project (Godavari Lift), Alisagar Lift, Gupta Lift. It was programmed to complete 18 projects within 5 years and provide irrigated water to a fresh ayacut of 5 million acres. Projects like Sripadasagar (Yellampalli), Chokkarao Project Stage-2 (Godavari Lift), Rajiv Sagar Lift (Dummugudem), Link Canal from Nagarjuna Sagar Project to


irrigation schemes to create an additional ayacut of 1.62 lakh acres. 60 Lift Irrigation schemes were commissioned creating a potential of 43000 acres, besides revival of 160 schemes with an ayacut of 80000 acres. Rs.5200 crore MasterPlan of huge number of minor irrigation schemes was to be implemented for creating an additional ayacut of 1.5 million acres, and stabilization of the existing ayacut of 5 lakh acres. To increase water efficiency, the government is taking effective steps. For example, last Rabi, under Godavari delta, Godavari had the least water flows in 200 years. The government has also made steps to irrigate the entire ayacut

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and were successful. Of the total water made available for rabi, 6 tmc ft was bailed out from drains and back waters, from the tail end of the Godavari. Bumper crops were harvested that season. This year 2009-10, the state government is seeking the blessing of central government to complete the major projects like Pulichintala and Pranahita chevella projects. For which the Andhra Pradesh government is lobbying extensively to convince the central leadership.

FREE POWER Offering nine hours of free power supply to the farmers, the scheme was said to be operational once APGenco’s 500 MW Vijayawada Thermal Power Station was stabilised to the grid and the normal hydroelectric potential during the season was achieved. It was proposed to take up 22 power projects comprising 17,588 MW with an estimated cost of Rs. 92,426 crore. 5,120 million units a year was required to supply nine hour free

power supply. Nevertheless, in the next four years, 13,000 MW would be added to the installed capacity to ease the power situation. Dr. Reddy said once the new power plants went on stream, the government would be in a position to raise its own resources. He said 8,800 MW power required to run 31 lift irrigation projects would also be met from the additional capacity. He justified free power on the ground that disparities between the areas irrigated by the assured canal system and those under bore-wells would be bridged.

RAJIV AROGYASRI A one of its kind programme in the country, Aarogyasri has put an end to the agony of poor people; the scheme enabled the poor to get free treatment for life threatening diseases at corporate hospitals. This includes heart operations to children. About two lakh surgeries were performed since its launch. The scheme covers 942 diseases for treatment and operations. 104 Rural Mobile Health Units and 108 EMRI Ambulance Services


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The Dream Lives on

Both the health services were first of their kind in the country. The fixed day health services were provided through 104 mobile units to every remote village. About 475 mobile health units provided free health checkups, medicines for entire month, quality healthcare at the doorsteps of four crore rural people.

Fab facility for manufacture of wafers (chips or microprocessors) of different sizes will be completed in another 2 years after an additional investment of $2 billions. The state has already made large strides in software manufacturing by registering a 65% growth rate last year and in.


To promote Apparel Industry in the state the state government signed a MoU with Brandix Group of companies for setting up of an Apparel City in Visakhapatnam with a potential of 60,000 jobs over a period of 4 years. Similar Apparel Parks are proposed in Ranga Reddy, Chittor and in some other districts. A major Rs.6053 crore coastal districts infrastructure development scheme is posed to Ministry of shipping in Centre to take up under public-private partnership.

The new Industrial Promotion Policy, facilitating Foreign Direct Investments for setting up a number of major industries in the state. The Policy envisages several incentives to the industries. SemIndia Inc. & Govt. of Andhra Pradesh have signed MoU on Feb.16th 2006 to promote $3 billion (Rs.13,500 crore) Fab City project in a 1200 acre land near Shamshabad for manufacturing Semiconductors/ Microprocessor chips for computers, television sets, mobile phones and other digital devices, which is described as the single largest investment for decades to come, in hardware sector in the country. The Fab City is expected to provide employment to thousands of persons directly and also employment to thousands of persons directly and also indirectly. SemIndia Inc. plans to invest $1 billion in phase-I of the project within one year on the assembling and testing facility. The actual


The novel Project is expected to boost employment facilities in Vizianagaram, Srikakulam, Visakhapatnam and East Godavari Districts. The Project involves 10 new ports, improvement of minor ports, ship repairs facility, Promotion of coastal tourism and recreation facilities. Government is in the process of exploring the possibilities to set up industries using Bauxite reserves available in our state for creating

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Andhra Pradesh Celebrations - 2009

employment opportunities to the youth, particularly among tribals. A Gems and Jewel Park is proposed by Gitanjali Group of Industries near International Airport which will provide employment to 50,000 persons over a period or 4 years. The government is keen to make use of natural gas available in Krishna-Godavari basin for the development of industry. A mega Jawahar Pharma City is coming up near Visakhapatnam involving estimated investment of Rs.182 crore in 2120 acres of area will provide employment opportunities considerably. The latest issue of ‘Garnier’ magazine revealed that Andhra Pradesh is having the required potential and congenial atmosphere to achieve IT objectives

envisages delivery of services to rural folk through a chain of 22,000 kiosks. With a view to capture 33 per cent of the national share in IT and Information Technology Enabled Services by 2009, the government has set up four ‘Think Tank’ for IT, Information Technology Enabled Services, Hardware and Animation. Based on the recommendations of these groups, a comprehensive and revised ICT Policy was brought out in January ’05. This will accelerate the growth of Information Technology sector in the State with Tier-II cities like Visakhapatnam, Warangal Vijayawada and Tirupati emerging as key centers. The State Government is also developing infrastructure for promotion of IT industry in tier-two locations like Visakhapatnam, Vijayawada, Tirupati, Warangal etc.

INDUSTRIAL PROGRAMMES The congress government had recognised the importance of large-scale industrialisation that can provide employment and higher incomes to the poor people. There it is committed to create a favourable investment climate for domestic and foreign investors in the state’s industry and infrastructure. The government intended to give top priority to thrust sectors such as food and agroindustries, pharmaceuticals, biotechnology, tourism, technology and small-scale of India by 2010. Sanctioning of sites for promoters for development of infrastructures for IT companies was effectively linked with generation of local employment potential, in the new IT policy. While in 2003-04 the increase in Software exports from the state is only 40%. The increase in IT exports went up by 64.5% worth Rs.8270 crore last year than that of the previous year. As many as 152 new Software Companies started production and the number of employees working in IT sector increased from 86,000 to 1,26,000. The state government is committed to using Information Technology for the benefit of all citizens especially those living in rural areas below poverty line. The launching of Rajiv Internet Village (Rajiv) programme during August 2004 is a step in this direction. This programmed


industries. Industrial developmental strategy To remove the existing barriers, create a free-investment climate and to make Andhra Pradesh a strong base for manufacturing sector several proactive measures are proposed by the government. These include infrastructure creation, investment subsidies, export promotion, attracting mega, and foreign direct investments, market access, towards better regulation, prevention of industrial sickness, exit policy, intellectual property rights etc. Cluster development programme Six industrial clusters were identified for development under “Industrial Infrastructure Up-gradation Scheme”. Two clusters namely Pharma Cluster near Hyderabad and Auto

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Components Cluster in Vijayawada has already been approved by Government of India for assistance and they are in process of development. Four other clusters namely Marine food Processing Cluster in Bheemavaram, Power loom Cluster in Sircilla, Leather Cluster in Hyderabad and Precision Engineering Tools and Components in Ranga Reddy are under consideration by the Government of India. Apart from these, 14 more clusters are in the process of development under DCSSI assistance. Further, A mega Jawahar Pharma City is coming up near Visakhapatnam involving estimated investment of Rs.182 crore in 2120 acres which would provide employment opportunities considerably.

with an investment of $2billion by the AMD-SemIndia consortium. The proposed Fab-City with investment of about more than thousand crores is expected to provide employment to thousands of people and shall facilitate billions of dollars of exports in next 10-years. Bio-diesel project World over research for alternative fuels is stepped up due to high prices, emission of green house gases and scarcity of the fossil fuels. Inorder to meet the fuel requirements, cost efficiency and lower the emission of gases, the Chief Minister, YS Rajasekhara Reddy had announced an ambitious project for taking up bio-diesel plantations of pongamia and

Sector specific economic zones The authorised manufacturer of Adidas sports shoes, Apache Footwear, has signed a MoU to invest Rs 500 crore to set up a manufacturing facility in Nellore district of Andhra Pradesh. The unit is expected to employ 30,000 people over a period of four years. The state government has provided 314 acres of land to the company for the facility and production is expected to begin soon. This project will be developed as a sector specific special economic zone (SEZ) for footwear with all the necessary infrastructure facilities and the state government has extended all SEZ benefits to Apache. The company, in turn would provide housing facilities, super markets, a dispensary, schools, training institutes and transport to the nearby city for all the workers. Hardware and Nano parks The government is inviting entrepreneurs to utilize the facilities that the state is offering to set up hardware manufacturing units. About 5000 acres were allotted at Samsabad for setting up hard ware park. The main objective of the park is to support the software operations in the country and attract MNC’s and other IT giants to strengthen the country’s status in the Information technology. Apart from the hardware park, another 3,000 acres near Shamshabad would be allotted for the proposed Nano Park. The state government has also decided to set up productspecific special economic zones in the hardware park for both hardware and software development operations. Hyderabad has been selected as the location for India’s first Fab City, a silicon chip manufacturing facility, being setup


jatropha over an extent of 51 lakh acres in the rain shadow areas in the next three years at an outlay of Rs.5000 crores. A state level Bio-Diesel Board has been constituted to oversee the implementation with the Chief Secretary as Chairman. It would be a tripartite activity involving the Government, the farmer and non governmental agencies with the AP Academy of Rural Development acting as nodal agency. On the eve of world environment day, 2005, even a biodiesel RTC bus was flagged off by Chief Minister Y.S. Rajashekhara Reddy. Agro-industries Andhra Pradesh holds the first rank in area and production of mango, oil palm, chillies and turmeric. It occupies second

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rank in citrus and coriander; third rank in cashew; fourth rank in flowers and fifth rank in grapes, banana, ginger and guava based on area and production. It holds second rank in livestock and meat production. Less than two per cent of meat is converted to processed product in spite of having second largest livestock of buffaloes and sheep in the country. Andhra Pradesh contributes about a third of country’s egg and about one fifth of broiler meat production. But only few per cent of the total produce is processed. There is a large potential for production of a variety of processed products from the fruits and vegetables grown in the state. Therefore, a special package of incentives has been unveiled for the setting up of agri- processing industries.

SOCIAL PROGRAMS As promised to the people earlier, Dr. Reddy kept his word to bring “Indiramma Rajyam” to the state, distributing 1.55 lakh acres of land to in a single day, 1.12 lakh landless poor, including S.Cs, S.Ts, B.Cs, the pattas of which were provided to the woman of beneficiary’s family. On August 21st 2005, the Prime Minister Manmohan Singh


launched the Second Phase of the Land distribution Programme, in which 1.68 lakh acres of land was distributed to about 1.06 lakh landless poor families. This mammoth programme is unique in the history of Andhra Pradesh. In all, in two phases, more than three lakh acres have been distributed among the landless poor in the State.

HOUSING Recognising the need to accelerate the tempo of the weaker sections housing programme, the government has embarked on a very ambitious plan to provide 40 lakh houses in 5 years as against the total of 49.64 lakh houses constructed since its inception under the programme, in a period of more than 2 decades. In all, 12,00,000 houses have already been completed since 2004. 1800000 houses are targeted during this financial year. Integrated novel development in rural areas and model municipal areas (Indiramma) This scheme is intended to provide basic amenities to one-third of villages and one-third of wards in the urban areas. This scheme is implemented starting from 2006-07 for about 5 years. About 1.82 crores rural and 45 lakh urban population will be covered by 2009. Housing, drinking water supply, sanitation and drainage system, link roads, power

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connection to habitations and households, health services, AIDS awareness and prevention, nutrition and pre-primary education for children, pensions to old, widows and weavers and disabled are some of the areas the scheme would cover. Rajiv gruha kalpana padhakam For low-income urban population, government has launched an innovative housing scheme, Rajiv Grihakalpa, with civil infrastructure and free land being provided by government. The government will provide Rs.30,000 towards the cost of land development charges. The beneficiaries should contribute 10 per cent of the remaining Rs.70,000. The rest of the amount would be arranged in the form of loans from banks. Rajiv Yuvasakthi Padhakam The Congress government launched a new scheme by name Rajiv Yuva Shakthi to provide wage employment and self employment to one lakh youth during 2004-05 with an outlay of Rs.321 crore. It also prepared an action plan for providing employment to 1.5 lakh youth with an outlay of Rs.624 crore during 2005-06.

a programme called Indira Kranti Padham. The basic objective of this integration is to implement various programmes for strengthening of self-help Groups with similar implementation strategy. The new scheme Indira Kranti Padham had been designed by clubbing Women Empowerment with Poverty Alleviation Integrated Child Development Scheme (ICDS) In order to promote the concept of one girl child norm particularly in the rural areas (BPL families), the state government has decided to provide an insurance cover of Rs.1 lakh to newborn baby girls. Families of below poverty line (BPL) having an annual income below Rs.25,000 are eligible for the scheme. The insurance amount will be paid to the girl when she attains the age of 20. The government will pay the premium to the Life Insurance Corporation of India. Subsidy Rice The Rs 2-per-kg rice scheme was first initiated by former chief minister NT Rama Rao, but was shelved by successive governments for a long period. Rajasekhara Reddy restarted the scheme benefiting nearly 1.85 crore white ration card

Indira kranthi padham The activities of DWCRA and Velugu were integrated under


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Andhra Pradesh Celebrations - 2009

holders. In addition to rice, the Government is providing red gram and palm oil at subsidised rates.

FEE REIMBURSEMENT Erasing the economical disparity between poor and rich in higher education system, the scheme was launched to provide 100 per cent fee reimbursement to students belonging to BC, SC, ST, minority and also Economically

Effectively implemented, the employment generated under the Act has the potential to transform the geography of poverty. Implementation of the Act calls for the formulation of Rural Employment Guarantee Scheme by the State Governments. Implementation of the Act calls for the formulation of Rural Employment Guarantee Scheme by the State Governments. The Scheme so formulated would have to provide for the minimum features specified in Schedule I of the Act. Accordingly, the Government of Andhra Pradesh has formulated the scheme called Andhra Pradesh Rural Employment Guarantee Scheme (APREGS) to provide not less than hundred days of guaranteed employment in a financial year to every household in rural areas covered under the Scheme and whose adult members volunteer to do unskilled manual work subject to the conditions of the Scheme. Impact

Backward Class communities. About 33 lakh students benefited from the scheme.

APREGS The Government of India passed the National Rural Employment Guarantee Act 2005 in September 2005. The Act gives legal guarantee of a hundred days of wage employment in a financial year to adult members of a rural household who demand employment and are willing to do unskilled manual work. The Act will be applicable to areas notified by the Central Government. The Objective of the Act is to enhance the livelihood security of the people in rural areas by generating wage employment through works that develop the infrastructure base of that area. The choice of works suggested addresses causes of chronic poverty like drought, deforestation, soil erosion.

The application accelerated EGS processes and for the first time one could monitor fulfilment of 100 days guarantee for every household. It ensured greater transparency as every rupee spent on EGS can be tracked along with work progress. It also facilitated access to information and simplified the cumbersome process of preparing estimates. This has saved several man-months on the part of field officials. It has prevented excess sanction of amounts and helped subsequent recoveries by making the standard schedule of rates available for each locality online. APREGS has provided an effective decision support system to avoid loopholes in implementation. It is expected to be integrated with other rural development schemes under VIDI (Village Integrated Development Information). The APREGS shall have the following objectives ♌ The Primary Objective of the scheme is to provide livelihood

security to the households in rural areas of the notified areas by providing not less than one hundred days of guaranteed wage employment in every financial year to every household whose adult members volunteer to do unskilled manual work. ♌ Secondary objective is the creation of durable community,


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social and economic assets and infrastructure development in rural areas Non-negotiables ♦ Every household registered shall be provided atleast 100 days of wage employment, on demand, in a financial year. ♦ Payment shall be made on a weekly basis or atleast once in

development programmes by his predecessor Y S Rajasekhara Reddy, Andhra Pradesh Chief Minister K Rosaiah plans to focus on fine-tuning the delivery mechanism to ensure that benefits reached the targetted sections of people. “YSR used to point out that instead of taking up new schemes, it would be better to improve the delivery mechanism of welfare schemes. Instead of launching new schemes, it would

a fortnight. ♦ Equal wages shall be paid to men and women ♦ Contractors, labour displacing machinery shall

not be used. ♦ Works

identified in the Gram Sabha by the Gram Panchayat or Mandal Parishad or Zilla Parishad and approved by Zilla parishad alone will be taken up.

ABHAYA HASTHAM The ‘Abhaya Hastham’ scheme envisioned by late Chief Minister Y.S.Rajasekhara Reddy to enable one crore women access pension and insurance benefits has been named after him. Chief Minister K. Rosaiah decided to name the co-contributory pension-cum-insurance scheme ‘YSR Abhaya Hastham’. LIC would be the fund manager for the ‘first of its kind’ scheme in the country covering one crore women belonging to Self Help Groups. Though the scheme was envisaged for women in the 1859 year age group, it was extended to those above 59 years of age as desired by YSR. However, women above 59 years would have to pay the 10-year premium amount of Rs.3,600 in lump sum to be eligible for minimum pension of Rs.500. Each woman enrolled under Abhaya Hastham would pay an annual premium of Rs.365 (Rs.1 a day) with a matching amount from the Government and she would become eligible for pension once she paid the premium for 10 years. A woman who would pay premium from her 18th year will get a pension of Rs.2,118 on attaining 60 years. Policy holder’s children studying in 9th, 10th 11th and 12th classes would get scholarship as added benefit. Under the scheme, an amount of Rs. 35,000 in case of natural death, Rs.75,000 for accidental death would be paid to the family of the policy holder.


be better to remove lacunae in delivery mechanism to ensure that the benefits reached the needy. The government will continue with ongoing irrigation and other infrastructure projects and promote industries too,” Rosaiah said. Asserting that his government was committed to implement the poll promise of increasing the quantum of subsidised rice from four kg per person to six kg, Rosaiah said once the door-to-door survey to weed out bogus ration cards was over, the promise would be implemented. On the cooperative farming mooted by YSR, he said once farmers came forward voluntarily to organise themselves into cooperatives, one or two cooperative farms would be promoted in every district on a pilot basis. The State Government is also closely monitoring the prices and intervening in the market to make available food products, including fruits, at reasonable prices to consumers by resorting to imports from other states, whenever necessary, he added.

While concentrating on continuing welfare schemes and


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The Dreamer’s Last Journey The American freelance Journalist, Satirist and Novelist, Chuck Palahniuk once said, “We all die. The goal isn’t to live forever; the goal is to create something that will.” Dr Y S Rajasekhara Reddy’s goal was to create a state that will last forever in affluence. His dream was to build a state that is synonymous to prosperity and which will be armed enough to tackle any challenge that future development will

throw towards the state. In many ways he succeeded and now the dream has to be taken forward. While death took him away from finishing most of the tasks initiated, he has left behind a legacy that speaks volumes of foresight and commitment towards the well being and uplift of Andhra Pradesh. A pro-active leader he has immortalised himself in the hearts of the people of the state as well as the country. He has shown us the way forward. The journey with him might have ended, but the journey with his dream will live forever.


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29 Andhra Pradesh Celebrations - 2009


Andhra Pradesh Celebrations - 2009


The future of agriculture in the state lies in increasing the growth rate in the agriculture sector and addressing productivity issues. Towards this end, the Government’s strategies include re-engineering the extension approach, empowering the farmer by introducing advanced agricultural practices, timely supply of quality inputs and promotion of self- reliance in seed production among farmers.

By 2020, Andhra Pradesh will be a powerhouse of Indian agriculture, with a well developed, efficient and productive allied sector and strong agro-industries. The agricultural sector will have shifted to a high growth trajectory and will be more than four times its current GSDP. All regions will enjoy agricultural development; and balanced regional development and equity will have changed the face of rural Andhra Pradesh. To achieve this vision, the State plans to aggressively pursue strong agricultural growth, including employment generation, and target the levels of investment needed. ♦

Growth: Agriculture will experience a quantum leap in growth, achieving an average annual growth rate of 6 per cent in real terms over the next 25 years. This will bring about a four-fold increase in agricultural GSDP from Rs.22,810 crore in 1995-96 to over Rs.90,000 crore in 2020-21.

Employment: The strategy in each sector of the economy aims to generate employment along with growth. The strategy for agriculture will certainly create new jobs, especially in the allied sector. However, agriculture’s share of employment will actually reduce, from the current 70 per cent to 40-45 per cent, in line with a shift in Andhra Pradesh’s economy. As economies grow, the focus of economic activity shifts from primary activities to those that lead to greater value-addition. As Andhra Pradesh’s economy develops, it will follow the same pattern, shifting from a predominantly agrarian to an industry- and servicesled economy. As a result, more and more jobs will be created in industry and services as compared to agriculture. This process will be complemented by a shift of surplus labour from agriculture to other sectors as agriculture itself becomes more productive, efficient and technologyintensive, and moves from being a subsistence activity to an economic one.

Investment: Achieving the growth envisaged for the agricultural sector will require significant investment. The State will need to invest around Rs.70,000 crore until 2010, while the total investment until 2020 will be roughly Rs.1,60,000 crore. In addition, a major element of achieving the vision for agriculture will be ensuring that women gain their share of the benefits of development. While the status of men and women is markedly unequal in all spheres of the economy and society, in agriculture, in particular, it is highly inequitable. Men are generally seen as more qualified and, therefore, are targets for extension and skill training.


he vision of Andhra Pradesh, the first State in the country to develop it, is to build a prosperous, democratic, egalitarian, and cohesive rural society. Andhra Pradesh with its strengths in agriculture and food production has tremendous potential to emerge as a major power house. Agricultural performance is the key to economic growth and poverty alleviation since it is the dominant activity in rural areas. The key efforts would also include (a) constant upgradation of technology with an emphasis on reduction in unit costs and increase in benefits that would flow to the small farmers and (b) participation of beneficiaries in the designing and implementation of programmes. There is a need to shift the focus of Research and Development from a single input package technology for environmentally homogeneous regions (irrigated areas) to a portfolio of location specific technologies for dry lands and uplands, which are heterogeneous. Raising agricultural productivity in a sustainable and equitable manner through improvement of technology and institutions would help overcome food security. Attaining a sustainable growth of 4-5 per cent per annum from now to 2020 of gross domestic product from agriculture involves key reforms in agriculture trade, investments in post-harvest technologies of a huge order, raising the efficiency and quality of public service delivery, and a clearly stated policy for regulating the private sector to protect the natural resource base that agriculture relies on so that the growth is sustained over generations. The State has massive strengths in agriculture, including a varied climate, water resources and soil that make it possible to grow a variety of crops here, and a large coastline that facilitates exports. The State will build on these strengths to develop a strong and vibrant agriculture sector. 31

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Technological innovation invariably benefits men more than women, who remain restricted to low-skill jobs such as transplanting and weeding. As a result, though agriculture in the State employs a large number of women, the quality of work and, therefore, the pay they receive, are well below those of men. To improve the status of women, careful strategies will be developed to build their skills and ensure that they also receive the benefits of technology. To realise its vision, the State will pursue a strategy aimed at the integrated development of the agriculture sector. Three major imperatives will be harnessing water resources; developing agriculture in rain-fed areas and spurring growth through policy reform. In addition, the State will focus on developing the growth engines identified for the agriculture sector.

Accordingly, investment in irrigation infrastructure has been a priority of the State. Most development strategies for agriculture have focused predominantly on irrigated areas. These areas have benefited immensely from the ‘Green Revolution’, use modern technology, have high productivity and are generally prosperous. However, to realise the goals of equitable development and growth of 6 per cent per annum for the next 25 years, the focus needs to shift to developing the backward, drought-prone and rain-fed areas (also referred to as dryland areas) which form roughly 60 per cent of the total gross cropped area. These areas get their water only from rainfall or ground water and, therefore, do not have assured irrigation. Furthermore, the population of these areas suffers from high poverty levels and is beset with the myriad problems that poverty brings: malnutrition, illiteracy, poor employment opportunities and the ensuing social tensions. Focusing on developing these rain-fed areas will, therefore, yield a two-fold benefit: it will add significantly to agricultural GSDP and spur growth, and it will significantly reduce poverty in these regions. The strategy to harness water resources will have a considerable impact on rainfed areas since it will address a critical need: improving irrigation in these areas. In addition, the State will need to promote agriculture in these areas by providing options suitable to dryland conditions.

The development of water resources is critical to several aspects of the State’s development. Irrigation has been the key force behind the agricultural revolution in the State— yields of food grains and other crops have almost trebled under irrigated conditions. Increased and assured irrigation leads to greater investment in inputs by farmers, a shift to high-value crops, intensification of agriculture and increased employment. Irrigation, therefore, can be considered a lead input in agricultural and rural development. Irrigation also ensures the availability of potable water to all urban and rural areas in the State and water supply for industries. In addition, the creation of dam and reservoir infrastructure helps in power generation and, more importantly, helps in protecting against natural calamities like floods and droughts.


Agriculture in rain-fed areas is constrained by small, uneconomical land holdings, low crop productivity, lack of assured supply of inputs, lack of technologies and cropping systems suited to dryland conditions, poor resources and inadequate extension and support services. The initiatives to encourage agriculture in dryland regions will therefore include: ♦

Promoting soil conservation strategies to prevent land degradation: When precipitation is heavy, water is lost as ‘run-offs’. This erodes the soil and lowers its fertility. Hence, soil conservation strategies are important. Some soil conservation technologies include establishing live bunds, using deep ploughing techniques, and establishing ridges and furrows. These technologies need to be extended to farmers.

Orienting research towards the development of dryland agriculture: This can be achieved by

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emphasising, for example, the development of seed and crop varieties that can withstand drought, and by promoting location-specific technologies that suit local resources and the environmentally heterogeneous drylands. Other measures include developing a communications network with the farmers, understanding their needs and, accordingly, providing extension services to them. Research in dryland horticulture also needs to be promoted. ♦

Promoting allied sector activities: Activities that are not land or water intensive, like poultry, dairy, and livestock, are ideal for the drylands. Furthermore, they provide more secure livelihoods than agricultural activity, which is seasonal, especially in areas where less than two crops are grown in a year.

Ensuring availability of inputs: The State will need to ensure that high quality inputs—seeds, pesticides and fertilisers—are available to farmers in rain-fed areas. Since these areas are fiscally poor, innovative measures will need to be encouraged, such as the use of biofertilisers or organic manure.

Promoting crops and cropping patterns suited to dryland conditions: Research and extension for


agriculture in these regions should focus on crops and cropping patterns that can withstand dryland conditions. Horticulture, for example, is very suitable to dryland areas: it can be sustained through irrigation systems that conserve water such as drip irrigation. The growth of Andhra Pradesh’s agriculture will also hinge on appropriate policy reform. This will require a comprehensive review and rationalisation of legislation relating to agriculture.

REFORMING POLICY Policy reform should aim to achieve three critical goals of the growth agenda: large, sustained investments in agriculture, especially by the private sector; increased participation by the people (i.e., local bodies and the community) in the management of local resources and the provision of services; and the protection of the environment and public interest. To this end, Andhra Pradesh plans to: ♦

Create a policy framework that induces growth, encourages private investment, and fully utilises natural resources.

Encourage people’s empowerment and participation through appropriate reform in institutions and governance.

Ensure the protection of the environment and public interest through suitable regulation on environmental issues and quality control.

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GROWTH AND INVESTMENT To achieve the targeted agricultural growth of 6 per cent per annum in real terms, investments of around Rs.1,60,000 crore will have to be made by 2020 in various areas of agriculture. These include irrigation facilities, roads and transportation, marketing and distribution infrastructure, superior quality inputs, modern technology, research and extension services, and credit. Since government resources are limited, a large part of

needs to act on many fronts: foster a direct relationship between farmers and corporations through such measures as contract farming; rationalise taxes; and provide incentives to boost large-scale investment in agro-industry (e.g., removing sales tax on processed food). The co-operative sector will be able to invest in agriculture only if co-operatives are run efficiently and profitably. To encourage investment from this sector, the State must therefore put in place appropriate policies to make cooperatives autonomous so that their operational decisions are based on sound business principles. The Mutually Aided Co-operative Societies Act, 1995, is a step in the right direction. This legislation must be implemented in letter and in spirit. To encourage investment by individual farmers, several policy reforms are required. The most important will be to improve access to credit, especially for small and marginal farmers and ‘tenants’, who form the largest proportion of the farmer community. Today, the formal credit system, consisting of a network of regional rural banks, rural branches of commercial banks, and cooperative banks, is meant to provide subsidised credit but does not adequately cover these sections of the farming community.

these investments will have to come from the private sector. All the three types of private players in agriculture— corporations, co-operatives and individual farmers/ entrepreneurs—have a significant role to play in agricultural development. Agricultural policy, therefore, must ensure that these players are induced to invest. In general, this will mean framing policy to ensure freer and more efficient markets and pricing for agricultural inputs as well as produce (e.g., reducing restrictions on the rice market); stable policies for export of agri-based commodities (e.g., a longterm rice export policy) so that export markets can be systematically developed; access to credit; promotion of agro-industry and the provision of infrastructure (e.g., reduction of excise/customs duties on cold storage equipment, amendment of the Cold Storage Act), etc. Similarly, to promote corporate sector investment, the State


The formal system is impersonal, involves excessive paperwork (associated with the rationing of subsidised credit) and requires proof of asset-ownership. Many of these farmers do not have assets to show, particularly tenant farmers, most of who are unrecorded tenants. With no tenancy documents to show, ‘share-croppers’ are unable to get credit from the formal credit system and so must turn to the informal but high-cost moneylender. To improve access to low-cost credit, the State must encourage options such as group lending, community credit, etc. Another initiative could be appropriate policy reform to ensure that farmers can gain access to credit. In addition to encouraging private investment, the State must frame policies to ensure full and optimal utilisation of Andhra Pradesh’s natural resources. The most important of these is appropriate water management. This requires a shift from the subsidised,

Andhra Pradesh Celebrations - 2009

government–managed irrigation system to a system managed by farmers’ organisations and focused on recovering operating costs. The new system would allow the pricing of water resources to reflect the cost of operation and maintenance (O&M) of canals and dams. This will discourage sub-optimal use of water resources. A second area for legislation is the optimal utilisation of land. The State must enact laws to bring wastelands and fallow lands into productive use. This will require substantial investments and the State will have to think through various innovative mechanisms to develop these lands. One method could be to create a business entity, in which the Government has an equity share, to develop these wastelands. The Government equity could be distributed among landless labourers.

ENVIRONMENT Here, the State will have a two-pronged role to play: ensure conservation of resources, and protect social interest. With regard to conservation, the State will selectively regulate use


of groundwater potential (based on published water table data), promote conjunctive usage of surface and ground water, particularly in irrigated command areas to prevent salinity, and undertake watershed development in a major way. In its second role, the State will need to clearly define regulation wherever social concerns or environmental considerations affect the development of major and medium irrigation projects. The State will also frame regulation to set and enforce quality control and standards. Today, different government departments enforce various laws governing quality control and standards giving rise to multiple interfaces with the Government’s administrative machinery. This causes innumerable delays and much inconvenience in obtaining clearances for setting up an agro-industrial unit. The State will ensure that, while the enforcement of quality control and standards is given the importance it deserves, procedures for obtaining clearances will be made transparent, convenient and quick.

35 Andhra Pradesh Celebrations - 2009


Andhra Pradesh Celebrations - 2009


Andhra Pradesh is blessed with many major rivers, the most important being the Godavari, Krishna, Vamsadhara and Pennar. The State’s share of dependable flows from these river systems is estimated to be 2,746 thousand million cubic feet (TMC). This breaks up into 1,495 TMC from the Godavari river system, 811 TMC from the Krishna, 98 TMC from the Pennar and the rest from other smaller rivers. The future challenge is to harness all of Andhra Pradesh’s utilisable water.


he Jalayagnam programme will continue to be a flagship programme of the State. Its scope has been expanded to cover 81 projects with a capital outlay of Rs 1.76 lakh crore. This envisages creation of additional irrigation potential for about 100.38 lakh acres. This year 2009-10, the state government is seeking the blessing of central government to complete the major projects like Pulichintala and Pranahita chevella projects. For which the Andhra Pradesh government is lobbying extensively to convince the central leadership. Certainly Jala Yagnam is a programme of gigantic proportions. It is a comprehensive water management program ever taken up in India. It was launched and implemented by former Chief Minister of Andhra Pradesh, late Dr. Y. S. Rajasekhara Reddy as an election promise to the farmers of the state to bring 82 lakh acres under irrigation in five years. With a budget provision enhanced to Rs.17,800 crores, Irrigation is no doubt the most important sector for the government in this new term. The state is eyeing the sector very carefully as it also has every reason to believe that at least 2 to 3 of its major irrigation projects will be included in the list of National projects. The Jalayagnam programme will continue to be the flagship programme of the Government. It is now substantially expanded to cover 81 projects with a capital outlay of Rs.1.76 lakh crores. The programme envisages creation of additional irrigation potential for 100.38 lakh acres besides stabilizing 21.75 lakh acres.


The Government plans to go ahead with the completion of the remaining projects in a time bound manner. In addition to the above, in recognition of the growing aspirations of the people in Mahabubnagar, Nalgonda, Prakasam, Nellore and the four Rayalaseema districts for a fair share in Krishna waters, it is proposed to take up new projects creating an additional ayacut of 24.5 lakh acres after restrictions imposed by the Krishna Water Dispute Tribunal are lifted. This comprehensive irrigation policy will not only help in effective utilization of every drop of water for agriculture and drinking water purposes but would also substantially enhance the incomes of a large number of farmers and others in the rural areas. There is a large allocation of funds for irrigation as the government considers irrigation an important growth engine. The most expensive of the projects are the lift irrigation projects intended to irrigate the dry Telangana region and supply water to the dry belt found along the Anantapur Ongole - Mehaboobnagar area. With the land level being 300 metres above the water level, lift irrigation is the only solution to take water to the dry region. Jalayagnam recently witnessed the completion of some key irrigation projects in Andhra Pradesh. The Pushkara lift irrigation scheme, completed at a cost of Rs.600 crores, would provide irrigation water to 1.86 lakh acres of land and drinking water to 136 villages in this district. The Devadula project heralds a new era in irrigation in Telangana as water from the Godavari will be lifted to higher contours with the help of lifts, avoiding gravity canals. Although it is designed to lift 50 tmc of water, Devadula will draw five tmc of water in the first phase to irrigate 60,000 acres. The Ali Sagar Lift Irrigation Scheme was a long pending dream project of Nizamabad district; it will immediately provide irrigation to 54,000 acres in Navipet, Ramzal, Edpalli, Nizamabad, Dichpalli and Maklur mandals, and cater to the drinking water needs of 89 villages. The State Government is confident of getting national project status for Polavaram and Devadula Lift Irrigation projects and also of completing all the Jalayagnam projects by 2014. The proposals seeking national project status are under consideration of the Union Government. While a high power committee of the Water Resources Ministry cleared the Polavaram project and sent it for the Centre’s approval, it sought clarification on Devadula which was being given. The major irrigation development strategy for Andhra Pradesh will be focused on completing ongoing projects in the drought-prone and backward areas.

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water made available for rabi, 6 tmc ft was bailed out from drains and back waters, from the tail end of the Godavari. Bumper crops were harvested that season! The net area sown in East Godavari in the Rabi season of 2007-2008 was 1,69,149 acres and production was 8,03,119 tonnes. In Rabi 2008-2009, the net area sown came down to 1,68,516 hectares, but production went up to 8,30,952 tonnes.

“We are now in a fresh new era and moving ahead in a new direction with a new focus and new thinking to take the state on a consistent growth path. We have already started Jalayagnam with the primary objective to utilise the abundant water resources available and make agriculture ‘profitable’. Nowhere in the world has irrigation projects being built on such a large-scale, facing so many obstacles. A huge allocation of Rs. 17,800 crore for irrigation – Rs. 1,300 crore higher than that of last year - has been made in the Budget indicating the government’s resolve to ensure at least partial benefits to farmers in the next few years under Jalayagnam,” said Ponnala Lakshmaiah, Minister for Major Irrigation The scope of Jalayagnam has been widened with 81 projects to be constructed with an outlay of Rs 1.76 lakh crore to irrigate 1.3 crore acres and stabilise another 22 lakh acres. But there is lot to be done. The Population is increasing, demand for food grain is increasing, land is limited, and resources like water is limited. So the focus is on how to tackle these challenges. “In the existing projects, we are losing water. Water is not being used efficiently. So while we are creating new reservoirs, we have to use available water in the existing reservoirs more effectively. So the first main thrust is on modernization of the existing capabilities. The government is spending Rs 14,500 crores for modernization programme of Godavari delta, Krishna delta, Nagarjunasagar ayacut, Penna ayacut, Nizamsagar ayacut and all the medium irrigation projects. The second main thrust is on increasing water efficiency. For efficiency of water used for an acre, the output for a unit of water has to be taken into consideration,” Lakshmaiah said. To increase water efficiency, we are taking effective steps. For example, last Rabi, under Godavari delta, Godavari had the least water flows in 200 years. Then we made steps to irrigate the entire ayacut and we were successful! Of the total


The Kharif and Rabi seasons of 2008-2009 demonstrated farmers earn more, when they use less water, and spend less on inputs like fertilisers and pesticide. The third aspect is micro irrigation which is a big focus area. The state can save huge public money with the introduction of micro irrigation system. We can make more land fertile. There are two folds in micro irrigation. You are creating more irrigated crops and secondly the GoI incentive in micro irrigation is also a big factor. Irrigation efficiency is a measure of the water that finally reaches the fields compared to the water released from the dam. Currently, irrigation systems in the State function at only 35-40 per cent efficiency. This compares poorly with both the internationally accepted standard of 57 per cent as well as the best practice efficiency of nearly 70 per cent achieved by the superior irrigation systems of Israel. The main causes of poor irrigation efficiency are poor maintenance of the surface irrigation network and the use of outdated irrigation technology. Therefore, efforts to improve irrigation efficiency will aim to: ♦

Improve maintenance: Currently, most surface irrigation schemes are in a state of disrepair: many canals are heavily silted, linings are punctured or missing, and outlets are damaged. The main reason for such poor maintenance is the inadequate emphasis on operations and maintenance (O&M). Current O&M budget allocations are inadequate to maintain the system to the extent required.

The first priority of the State, therefore, is to ensure that current irrigation systems are well maintained. This will be achieved by ensuring better recovery of operating costs and increasing O&M allocations. A key step in this effort will be to enlist the help of users themselves. Initiatives on this front are described in the section below. ♦

Enhance technology: New technologies will be

Andhra Pradesh Celebrations - 2009


introduced to enhance the productivity of water use across the irrigation chain. Water distribution will be made more efficient by adopting new technologies such as the use of an Irrigation Information System to establish timely and reliable water supply. Watershed management techniques will be further improved to enhance water conservation. More importantly, new irrigation technologies such as dynamic control systems and sprinkler and drip irrigation will be promoted to reduce wastage in the application of water resources.

markets for varied uses such as floriculture, greenhouses, etc., and promoting agricultural extension.

Another area of improvement is the gap between the irrigation potential created (the planned command area) and utilised (the actual irrigated area).

Over time, these WUAs will progressively take higher responsibility for effective management of the entire irrigation system.

Currently this gap is between 20-25 per cent on an average. It can be bridged through the standardisation of canals, drains and field channels so that the entire command area is irrigated. Also, agricultural extension programmes will have to be taken up to enable farmers to follow appropriate cropping patterns.

Harnessing water resources as envisaged will require an investment of Rs. 1,25,000 crore and power of about 9,000 MW.

The WUAs could also play a critical role in spreading awareness of alternate irrigation systems such as drip and sprinkler systems for horticulture, for example, where the entire field need not be flooded with water. Immediate priorities for the State will be to strengthen the WUAs, and train and improve the capabilities of their members.

Commiting these resources will enable the State to utilise

WATER MANAGEMENT Involving the users in the management of their common resources is the best way of ensuring effective local management. Recognising this, the State has made a pioneering move to create Water Users’ Associations (WUAs). Through these WUAs, the stakeholders are involved in the maintenance and management of irrigation systems. WUAs have been created at the primary level, and distributory committees and project-level committees at the distributory and projectlevel respectively. Currently, 10,292 WUAs and 174 Distributory Committees are functioning in the State. The primary task of these WUAs is to manage (i.e., operate and maintain) water resources. This not only involves raising funds for maintenance but also supervising works, deciding on water allocation and improving services.

856 TMC of dependable water and 300 TMC of flood flow water available in the State, 50 per cent of which would need to be pumped to a height of 100-300 metres to lands situated at higher elevations.

This will help break the vicious cycle of poor cost recovery (around 56 per cent) leading to poor maintenance and unreliable irrigation services.

To supplement the focus on irrigation, the Government will also ensure that the agriculture sector is provided with adequate and high quality power on priority.

These WUAs would also be strong forces in encouraging water conservation through committed participation in watershed development programmes, establishing water


39 Andhra Pradesh Celebrations - 2009


Andhra Pradesh Celebrations - 2009


Every possible effort by the government to provide necessary infrastructure facilities needed is aimed towards sustaining the economic growth. Since the investment requirement is enormous, Government is trying to attract private capital in the critical sector by encouraging Public Private Partnership (PPP) in infrastructure as the preferred mode for execution and operation of infrastructure projects. Large size projects such as Airports, Ports, Metro Rail Projects etc are being taken up in PPP mode.


ndhra Pradesh is witnessing rapid urbanization in the last two decades and it has become a big challenge before us to provide minimum basic amenities to the people living in urban areas. The Government has taken proactive steps to access funds under the flagship Programme of Government of India: Jawaharlal Nehru National Urban Renewal Mission (JNNURM) with sub components: Urban Infrastructure and Governance (UIG), Basic Services for Urban Poor (BSUP), Urban Infrastructure Development Scheme for Small and Medium Town (UIDSSMT) and Integrated Housing and Slum Development Program (IHSDP). Special emphasis has been given on water supply and sewerage, transport, integrated development of slums including housing, infrastructure projects and solid waste management etc. Under these schemes, 268 projects have been sanctioned so far with an estimated cost of Rs.12523.70 crores. Andhra Pradesh government had laid special emphasis on improving infrastructure in the State during the year 200809, for which an amount of Rs.2277 crores was provided for infrastructure which is 73 percent more than the previous allotment. An amount of Rs.260 crores has been provided in B.E. 2009-10 for Infrastructure & Investment Department to meet the expenditure on land cost and external infrastructure like provision of water, power and road connectivity up to the boundary of these projects while all the capital expenditure on the projects would be met by the developers.


The Government has proposed the “AP Road Sector Project” with World Bank loan for further strengthening the objectives regulations we have enough resources available now. The government had devised strong and long standing strategies to enable growth and for it to move on ahead. A free market economy, the availability of a well-educated, English speaking human resources base and the costeffective services that Andhra Pradesh offers have all been attracting business from other shores. To capitalize on and extend the reach of foreign investment, the State needs to have a strong, competitive, physical and regulatory infrastructure. The basic reason behind the rapid growth of Andhra Pradesh is its infrastructure that is in place. Take it for instance the roads, airports and ports and transportation, the state is placed far a head compared to the others in the country. More to add them are the basic and essential infrastructure such as educational institutes, hospitals, information technology and industries. The water and sewerage systems are also placed well to cope with any kind of eventuality in the state. The State Government has decided to take up expansion of the existing operational airports such as Vijayawada and Rajahmundry, in addition to the development of the existing non-operational airports like Kadapa and Warangal, under an MoU with the Airports Authority of India. The process of identification of additional land required by the Airports Authority of India is underway and development works would be taken up during 2009-10. A major initiative of the Government is to make Hyderabad a World class city. In this regard the Government is expediting the construction of 160 Km long Outer Ring Road as eight lane Access Controlled Expressway with an estimated cost of Rs.4607 crores. Government has also approved “Maulana Abul Kalam Hyderabad Sujala Sravanthi” scheme to draw water from river Godavari in 3 phases for Greater Hyderabad. The cost of phase - I of the project is set at Rs.3375 crores. During 2009-10 an amount of Rs.250 crores was provided for this project. Government is committed to improving the quality of water supply in slum areas particularly in the twin cities of Hyderabad and Secunderabad.

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202 pass through the city. The city is also part of the North-South Corridor. Being in the heart of Telangana it is very well connected to all the towns and cities of the region.

For this purpose an amount of Rs. 37 crores was provided in the year 2009-10. 1.83 lakh groups of the poor women in 7040 slums have been organized into Self Help Groups under ‘Indira Kranthi Patham’ (IKP) urban and provided a credit of Rs.843 crores during 2008-09 through bank linkage. During 2009-10 an action plan of providing Rs.1200 crores credit to IKP urban groups has been prepared. The total allocation under MA&UD is proposed at Rs.3826 crores for the year 2009-10.

ROADS Road transport is the core behind the increased inland activities as it plays a vital role in the economic development of the state. Especially for the growth of Industries and other allied activities the need of road infrastructure holds a great deal of importance. At present the state has a length of 4648 kilometers of road under 15 National Highways. The R & B network is spread over 63,625 kms, of which, state highways constitute 10,217 kms, major district roads constitute 32,222 kms and rural roads constitute 21,186 kms. In addition, Panchayat Raj has a Road network of 1,21,079 kms. Road transport Comprehensive database is being built to provide online services for facilitating effective and fool proofing the process of issue of driving licenses, registrations, permits, taxation etc. Vehicular pollution control monitoring has been stepped up with 475 PUC centers functioning in the State. Andhra Pradesh and Hyderabad in particular is well connected to many other locations in India, such as Bangalore, Mumbai, Delhi, Kolkata, Nagpur, Chennai, Pune, Vishakapatnam and Vijayawada, either through directly or through intermediary locations. The highway (express way) network linking Hyderabad to various parts of the country is very good. Indian National Highways NH-7, NH-9 and NH-


The city has a well laid out internal road systems. Many of the important roads are 3-lane on either side. However, as in most in Indian cities, due to an increase in the population and the number of vehicles sold in last decade and the lack of perceptible lane discipline, chaotic traffic snarls occur throughout the day making driving in the city a stressful experience for vehicle owners. Accidents are on the rise especially due to negligent driving by two wheelers and Autorickshaws. A series of flyovers have been developed at various important junctions across the city to decrease the traffic congestion. However due to the narrow width of these flyovers, traffic snarls occur at peak hours In order to decrease these snarls, the city plans to improve the Inner Ring Road around Hyderabad within the city limits. A new Jawaharlal Nehru Hyderabad Outer Ring Road of about 160 km is being built now and will be complete by 2010. This ring road is expected to ease the traffic congestion by a lot inside the city as heavy vehicles passing through the city on the national highways can bypass the city using ORR. The first phase from Gachibowli to Shamshabad is expected to complete in November 2008 to ease airport traffic. The P V Narasimha Rao Elevated Expressway Corridor from Sarojini Devi Eye Hospital to Aramgarh Junction had reached its completion and was opened on 20th October 2009. This is one of the longest flyovers ever built in India with a length spanning over 11.5 kilometers. The first phase of flyover from Sarojini Devi Eye hospital to Indra Reddy junction, with a length of approximately 7 km was completed in May 2009. While the second phase thereafter was completed in a record time in just 5 months of time. The express high way has cut short 20 minutes of travel time to reach the Shamshabad International Airport. An underpass at Aramgarh junction and a trumpet interchange from airport towards Shamshabad have also been completed and the have reduced the traffic congestions with a free flow.

APSRTC The services of RTC in the state are commendable. Today Andhra Pradesh Road Transport Corporation (APSRTC) has Andhra Pradesh Celebrations - 2009


grown in to the largest State Road Transport undertaking in the country. Beating all the contestants it had made its way not only in to the Limca Book of Records 2000, but also entered the Guinness World Records the previous year. The fleet strength of the Corporation decreased from 19,609 in 2005 to 19,407 in the year 2006. The Corporation operates over 66.56 lakh kilometers per day, carrying 1.28 Crores of passengers daily. The Corporation’s fuel efficiency was 5.27 kilometers per liter in 2005-06. The staff ratio per bus was 6.31 during 2005-06. Employee’s productivity increased from 51 kms in 2004-05 to 53 kms in 2005-06.

modern International airport at Shamshabad replaced the old Begumpet Airport, on 15th March 2008. The new airport provides the much needed infrastructure to handle large aircraft, heavy international passenger and cargo traffic. The airport is considered as one of the best in the region with world-class facilities. The airport is spread over an area of 5,400 acres (22 km2) and currently has the longest runway in India. The airport was developed to cater to a total of 12 million passengers a year and has a capacity to handle 40 million passengers a year when fully developed.

Hyderabad has an extensive bus service operated by APSRTC inside the city and to various places across the country. The Mahatma Gandhi bus station or the Imlibun bus station as it is locally known was once the largest bus station in Asia. It is now the third biggest station in Asia.

Andhra Pradesh has a sea coast extending approximately to 1000 kilometers facing Bay of Bengal. This has given it a potential to build world class ports to connect the other parts of the world globally. During 2006 the handling capacity of the minor ports in Andhra Pradesh was 18.43 Million Tones of cargo. Today Andhra Pradesh is the 2nd highest cargo handling state in India. The state has prepared a structured plan to develop all the existing ports and enhance their cargo handling capacity to 173 million tones of cargo by next 15 years.


FAB INDUSTRY Andhra Pradesh is having a very strong talent base. Today the state is producing 19,000 engineers every year, and many more in medical, Pharma and biotechnology sectors. Other major bus stations include Jubliee bus station (JBS), Dilsukhnagar bus station. The APSRTC operates point to point bus services which connect important places within the city, with a very good frequency. The buses are exceptionally clean and services are very user friendly when compared to other cities in India. There are 4000+ buses in the city running the point to point service.

AIRPORTS Hyderabad, owing to its geographic location is considered to become the hub of aviation industry in India. The new and


Andhra Pradesh is the best state in the country for establishing the Fab Industry and the central government has also announced a new Fab Policy to accelerate the electronic industry in the country. The growing middle class population, India’s electronic equipment consumption which was estimated at around 28.2 billion US dollar in 2005 was expected to cross 363 billion US dollar by 2015 growing at a compound annual growth rate. India as a key player in the electronics eco-system’, would bring together industry and global business leaders from leading semi-conductor organizations of India and the world.

43 Andhra Pradesh Celebrations - 2009


Chief Minister Y.S Rajasekhara Reddy had inaugurated India Semi-conductor Association (ISA) Vision Summit 2007 as a part of initiating and propelling the industrial growth in the state.


OUTER RING ROAD Govt. of A.P. has taken up construction of 162 kms long Outer Ring Road Project around the twin cities to decongest the cities and set up a direction for the future growth of the cities. The Project is proposed to be implemented in 2 Phases. Project Estimate is Rs.3,199 Crores, Rs. 699 Crores in 1st Phase of 24 kms stretch and Rs. 2,500 Crores for the balance length of 138 kms.

PCPIR PROJECT The Andhra Pradesh Government is looking at integrating infrastructure development for the proposed Costal Corridor and the Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) projects. Since the first phase of the proposed Costal Corridor will be from Visakhapatnam to Kakinada, where the PCPIR project is slated to come up, the State Government is looking at developing work relating to basic infrastructure simultaneously. International Finance Corporation (IFC), an arm of the World Bank, will implement the road projects in the area. The project in Andhra Pradesh is estimated to attract investments to the tune of around Rs 3 lakh crore and as per current estimates the State has more than half of the total investment envisaged for the project. According to initial plan, the State Government is proposing development stretch from Satyavedu to Chennai and also development of Nellore to Bangalore region covering Rajampet, Kadapa, Ananthapur and Hindupur. As per Government estimates, the total corridor in Andhra Pradesh is likely to cover 300 km. The Government of Andhra Pradesh has called upon the industry players to invest in the state as it had sufficient infrastructure for the industrial growth. In line to this the


The year 2009-10 has brought with it a new era of Infrastructure growth in the state. With the same old government under the able leadership of Dr.Y.S.Rajashekhar Reddy once again retaining the administrate reigns, now its much more easier for the government to accelerate and push forward the ongoing projects and the projects that are in pipeline towards their new heights of their completion. In a survey report released by Gartner Inc it is predicted that by 2010, Hyderabad and Chennai will replace Bangalore and Mumbai as the favored Indian destinations for IT outsourcing. The study categorized and evaluated the cities into four tiers based on various factors including infrastructure, skills availability, skills retention, access, cost of living, political support and quality of life. The report also stated that certain drivers enable these cities as favorable destinations for outsourcing. These include improving infrastructure, overall skills availability, good quality educational institutions and active political support. The improving infrastructure in Hyderabad has enabled the city to top the ratings in the infrastructure category. However, other factors that are inhibiting this growing favorability and need to be addressed are increased attrition, inadequate infrastructure, escalating costs and lack of good quality real estate. The Tier 1-1 cities like Hyderabad, Chennai and Pune are at a vantage point. These cities have most, if not all, of the capabilities of the Tier 1s, but, for various reasons, have not achieved the same level of mind-share and visibility. These cities are the most likely to take on the mantle of Tier 1 in the near future, either in addition to or replacement of the current Tier 1s. Hyderabad is rated almost at par with Mumbai in all factors evaluated, but has scored much higher on ‘cost of life’ and ‘quality of living’ where Mumbai has received the lowest ratings.

Andhra Pradesh Celebrations - 2009


45 Andhra Pradesh Celebrations - 2009


Boosting Progress

“Our heritage of returning to society what we earn evokes trust among consumers, employees, shareholders and the community� The Tata Group operates in seven business sectors: Communications and Information Technology, Engineering, Materials, Services, Energy, Consumer products and Chemicals. The total revenue of Tata companies, taken together, was Rs.325,334 crore in 2008-09, with about 65% of this coming from overseas business and they employ around 357,000 people worldwide.


Tata Projects Ltd (TPL) was established in 1979 as an Engineering, Procurement and Construction (EPC) contracting company in the Engineering Sector of the Group. It is one amongst the earliest and few Indian construction companies to have acquired the triple certifications of ISO 9001, ISO 14001 & OHSAS 18001. Known for its high quality and timely delivery, TPL was rated in the Top Ten Most Admired Companies in a readership survey conducted by the well known Construction World Publications Group in 2007, 2008 and again in 2009. The Company has also been ranked in the Top Ten Fastest Growing Companies in 2008 (Ninth) & 2009 (Fifth). Today, TPL is poised to take giant strides in the infrastructure sector.

Andhra Pradesh Celebrations - 2009

Tata Projects

The Company operates through Seven Strategic Business Units (SBUs). These are Power Generation, Transmission & Distribution, Water & Waste Water, Oil, Gas & Hydrocarbon, Railways, Metals & Minerals & Quality Services. Each SBU focuses on the business identified in key market segments in their respective sectors and takes up EPC contracting for projects based on its core competence. The company has also set up a Tower Manufacturing Unit at Umred near Nagpur so as to cater to the growing need of tower parts both for internal & external customers. Tata Projects Ltd. has been growing at a CAGR of 44% over the last 5 years as its turnover increased from Rs. 451 Cr. in 04-05 to Rs.1952 Cr. in 08-09. It currently has over 2000+ employees spread across the country in three Regional Offices, seventy five project sites and sixteen regional inspection offices with three Registered Offices abroad. With large scale global investments taking place through both public and private enterprises in the infrastructure sector, particularly in the areas of their core operations, the Company has set itself ambitious targets for growth both in the domestic as well as overseas market. Echoing the Group’s passion for Corporate Sustainability, Tata Projects Ltd. has taken an active participation in four key areas. These are;

Guntur and Krishna districts of Andhra Pradesh.


BoP of 2X800 MW at Krishnapatnam, Andhra Pradesh.

BOP of 2x500 MW at Bhusawal, Maharashtra.

800 kV HVDC Transmission line, 182 km SaharsaGopalgunj, Bihar.

400 kv double circuit Transmission line, 201 km MundraBachao-Lakhpat, Gujarat.

Water system for Coke Oven and steel melting shop, Vizag Steel Plant, AP.

Radhanpur oil terminal for Cairn Energy India Pty Limited, Gujarat.

OHE of Kondapuram-Guntakal section, 350 km SC Railway, AP.

EPC of 4060 Cum Blast Furnace, SAIL, Rourkela.


Ranked by Construction World – NICMAR in India’s Top 10 Most Admired Construction Cos consecutively for 2007, 2008 & 2009.

Award from Construction World – NICMAR for being ranked amongst Top Ten Fastest growing Construction Cos in 2008 & 2009.

Received Certificate of Approval from the Central Boilers Board (CBB) for functioning as an inspection authority under the IBR for overseas manufacturers.

Training of underprivileged youth as an employability initiative, ♦

Education of economically backward students,

Provision of safe drinking water in rural India as well as other communities near its project sites ♦

♦ Organization of health camps & other community related initiatives.

The Company has also manufacturing over a hundred de-fluoridation plants in the first phase, for use in affected villages in rural India under a co-operation agreement with Naandi Foundation. Recently, TPL in association with Indian Red Cross Society also dispatched Reverse Osmosis (RO) Water Purification Plants to flood affected areas in Mahaboobnagar, Kurnool,


47 Andhra Pradesh Celebrations - 2009

from Power Grid. First Indian company to be qualified for GIS in Qatar ♦

Installation & erection of 800 MT VGO Reactor, largest of its type in the country.

Largest EPC order for Blast Furnace from SAIL, Rourkela.

♦ Currently the only Indian Company approved by the Central Boiler Board for IBR inspection abroad.

INNOVATION @TPL “Hydraulic Strand Jacking Method” – First time in India for lifting Steam Boiler Drum of Unit –IX at NTPC, Vindyachal Super Thermal Power Plant. ♦

Received ASME - PP Certificate for fabrication & assembly of Pressure Piping.

Awarded with ‘ICI-RSC Ultratech Endowment Award for Outstanding Concrete Structure of Rajasthan-2008’

Received “Best weld model award “for maintaining quality of work” from SEPCO, China.

Received “Best sub-contractor award” from SEPCO for timely completion & maintaining quality standards at site.

Received “Best safety practices award” from NTPC Sipat

Received “Best Housekeeping at site” from Hindustan Zinc Ltd

“Center Pillar Mechanism” – For safe & fast erection of Transmission Towers in difficult terrain resulting in improved productivity and reduced erection time.

“Mobile Sea Water Reverse Osmosis Unit” – converts both Sea water & Brackish Water containing Fluoride, Arsenic, Nitrate & Pathogenic Bacteria into clean Potable Water to WHO standard.

“Glass coated Steel Tanks” – erected for the first time in India at the Desalination Plant of NPCIL, Kudankulam.


Orders received in the year 2008-09 valued approx Rs. 5800 Crs representing at a CAGR of about 130 % over last 5 years. Outstanding order book as on Sept 2009 is approx. Rs. 8900 Crs.

Turnover in the year 2008-09 is Rs. 1952 Crs growing at a CAGR of 44% in last five years.

EBITDA in the year 2008-09 is Rs. 128 Crs which has grown at a CAGR of 57% in last five years.


Largest and also the first of its type order for Balance of Plant (BOP) of 2X800 MW super critical Thermal Power Plant, Krishnapatnam.

First order for EPC of 800 KV HVDC Transmission Line



Andhra Pradesh Celebrations - 2009


49 Andhra Pradesh Celebrations - 2009


Andhra Pradesh Celebrations - 2009


A major element of Andhra Pradesh’s growth agenda will be building a thriving and prosperous industrial sector. By 2020, Andhra Pradesh’s industrial sector will be growing at 11 per cent a year in real terms. Andhra Pradesh will be the preferred destination for industrial investment. The State will have a competitive economy, driven mainly by private investment. Furthermore, it will pursue sustainable development, through investments and approaches that conserve resources and safeguard the environment.

commercial banks are functioning in the state in rural and urban areas. The state has a good network of specialized SSI branches for extending assistance to small and tiny industry. “In the Industrial infrastructure front, the State has taken lot of initiatives for development of industrial infrastructure for the consistent growth. Government in association with APIIC has initiated a set of prestigious projects that include industrial infrastructure, social infrastructure and infrastructure for the specific sectors. The state owned corporation APIIC has already set up 272 industrial estates and specialized parks like ICICI Knowledge Park, SP Bio-tech Park, Marine Bio-tech Park, Agri Bio-tech Park, Special Economic Zone, Pharma City, Hardware Park, HITEC city, Leather Parks, Food Processing Park, Agri Export Zones etc.,” said Bob.

Andhra Pradesh is showering a great deal of incentives such as concessions in land allocations, power at lower tariffs and exemptions in tax. The markets too are potentially well to absorb new products with an enthusiastic environment. Andhra Pradesh has plenty of resources -agriculture, horticulture, mines & mineral, marine foods, skilled manpower and second longest sea cost in the country. Initiatives are being taken by the government to exploit all the available resources and encourage more and more new entrants to establish industries which would in turn create employment opportunities in the state. “The State Government recognizes the fact that for a faster growth of the State’s economy, the Industrial Sector must remain vibrant and growing. Efforts are also being made to make it easier for industries and businesses to carry on their operations by simplification of procedures, rules, inspections, registrations, Single Window Clearance System, etc. The Government of Andhra Pradesh has come up with a vibrant Industrial Investment Promotion Policy 2005-10 with various incentives/concessions to new industries set up in the State,” B Sam Bob, Principal Secretary, Industries. Andhra Pradesh is the only State with abundant energy. It has an installed capacity for generating 10 273.44 MW, the second highest in the country and many projects are under implementation to generate 4715 MW by 2009. Among all Indian States, Andhra Pradesh has progressed furthest in reforming its energy sector (privatization, separation of generation from transmission and distribution). The state has an exclusive financial institution APSFC for providing finance to small industry. Apart from this 5288


B Sam Bob, Principal Secretary, Industries The State has also undertaken wide-ranging measures to nurture its industries: simplified, less restrictive regulations, labor and fiscal reforms, incentives. In line with this objective, the State has enacted a law for single-window clearances. It is the first Sate in the country to have a law for single-window clearances, which ensures that all clearances to investors are given within a set period. The State has been qualified as “flexible” in its approach to labor regulations and “good” for its simplification of rules and regulations. It introduced the self-certification concept, common annual returns in place of multiple returns with simplified registers, and zero inspection regime through accredited agencies.

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The focus will be on ensuring that training in these institutions is oriented towards the needs of industry. This will be achieved in many ways. Advisory committees with representation from industry will be set up to advise on curricula, equipment, on-the-job training, and campus recruitment. Practising entrepreneurs will be invited to teach or take some classes in training institutes. Finally, students will receive

SMALL-SCALE INDUSTRIES Small-scale industries form a significant part of Andhra Pradesh’s economy. The sector contributes around 6 per cent of GSDP and employs close to 2.5 lakh people. Many of the growth engines selected for focused development, e.g., construction and pharmaceuticals, will give rise to many opportunities for small-scale industries. The sector will thus be a major focus in the strategy to create rapid growth in the State. By 2020, Andhra Pradesh will have many dynamic and profitable small-scale industries. Propelled by technological development and capability building, small scale units will flourish all over the State. The proliferation of these industries will provide many opportunities for entrepreneurship and employment, leading to a significant rise in income for the State’s people. The approach to developing small-scale industries will focus on: • Building skills and promoting technological development. • Providing infrastructure and credit. • Reforming policy and simplifying procedure. • Providing assistance with marketing. • Encouraging the development of special categories of entrepreneurs (women, scheduled castes and tribes, backward classes, etc). Technological Development To meet the growing need for skilled manpower in this sector, the State will invest, as well as attract private investment, in vocational education and training by increasing the number of Industrial Training Institutes, polytechnics, engineering colleges, and other skill-building institutions.


practical training in local industries. To become globally competitive, the small-scale sector will have to invest in modernising and upgrading its technologies. This will be achieved through collaboration with research institutes; setting up a technology exchange and setting up a technology development and modernisation fund. • Collaboration with research institutes: Small-scale industries will interact closely with research institutes such as the Indian Institute of Chemical Technology, the Centre for Cellular and Molecular Biology, and the Institute of Tool Design, to upgrade their technology through the latest advances in knowledge in their segment. Since technology transfer to small units is currently restricted by the 24 per cent limit on equity participation by large units, the State will lobby the Government of India to increase this limit to at least 49 per cent. • Technology exchange: The Andhra Pradesh Technology Development Corporation will set up a technology exchange to provide information to small entrepreneurs about the latest technological developments worldwide, including the scope for technology transfer. The exchange will operate in close association with industry associations such as the Confederation of Indian Industry, consultants, and international organisations such as the World Assembly of Small and Medium Enterprises. • Technology development and modernisation fund: The Small Industries Development Bank of India set up this fund in 1995. So far, small-scale industries in Andhra Pradesh have received Rs.1.5 crore through this fund. Going forward, it will be given wide publicity to encourage more small-scale units to make use of this mechanism for securing funds. Infrastructure As in most other sectors, small-scale industry will need both basic and specialized infrastructure to achieve the

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growth envisaged. The initiatives to promote growth engines such as garments, knowledge-based services, and information technology will also benefit this sector. Thus, the theme parks, such as the Apparel Exports Park and Biotechnology Park provide infrastructure and infrastructure services to small-scale industries situated in these parks, through their own or private investment. Providing captive mini-power plants, industrial water supply, roads, street-lighting, sanitation, etc., will be an integral part of this approach. Similarly, the provision of infrastructure, such as international airports, ports, warehouses, cold storage chains, cargo-handling facilities, and container services, will help to boost exports in the small-scale sector. The Government will also encourage the setting up of private industrial estates to introduce competition in the provision of infrastructure services. Special facilities, such as clearances from the Pollution Control Board, Municipalities, the State Electricity Board, etc., will also be provided to these private estates. A major impediment to the growth of small-scale industries is their lack of access to institutional credit. Faced with tighter capital adequacy norms and pressure to improve profitability, commercial banks are reluctant to lend to this sector and try to hedge their risk by insisting on collateral to fully cover loans. Furthermore, there are long delays in sanctioning loans. The State Government will actively work with the Reserve Bank of India to ensure that small-scale units get adequate and timely credit. The Government will also ensure that the specific needs of this sector are met. This includes ensuring credit for the tiny and cottage industries sector and providing mechanisms for the meeting of dues to small-scale suppliers from defaulting large and medium units. Policy restrictions and complex procedures greatly hinder the growth of the smallscale sector. Reforming policy and simplifying regulation are thus preconditions to boosting the growth of this sector.

being misused in several ways. For instance, a unit coming to the end of a tax holiday period is declared sick and closed down. The same entrepreneur then registers a new unit merely to get the tax concession once again. Such fiscal incentives also lead to unhealthy competition between states, which offer all kinds of concessions, justifiable or not, to attract investment in their state. The Government will revise its policy to remove these anomalies. In addition, to improve the competitiveness of the small-scale sector, it will seek a dialogue with other state governments, particularly those of the southern states, to rationalise fiscal incentives and curb unhealthy competition. • Labour law: The strength of small-scale units lies in their flexibility in production. The multiple labour laws, however, sometimes restrict this flexibility. These different laws need to be revised and combined into a single legislation. The State Government has already set up an Industrial Commission to study and recommend the consolidation of these laws and will pursue this issue with the Centre. Simplifying procedures As for most industry in India, the setting up and operation of small-scale industries is severely hampered by the tangled web of procedures to be followed and clearances to be obtained. For small-scale industries, the most problematic procedures are the multiple registrations, certifications, and inspections required.Some action has already been taken to address these issues. The Central Documentation and Clearance Centre (CDCC), set up in the Commissionerate of Industries, helps entrepreneurs obtain all the necessary clearances within a specific time and attaches an ‘escort officer’ to every project to follow up.

Reforming policy The two major areas of reform would be fiscal concessions and labour law. • Fiscal concessions: In 1996, liberal fiscal concessions were provided to all new industries, large, medium or small. As a result, older units are finding it hard to compete with newer ones and becoming sick. Moreover, these fiscal concessions are


53 Andhra Pradesh Celebrations - 2009


Surpassing Expectations Since more than a decade now, Andhra Pradesh is a happening place for increased industrial activity. In fact the state is an industrial boomerang. It has been a hotspot destination for IT, Pharma, Biotech, Agriculture and other allied industries. Of late, the manufacturing and food processing industries too are on the growth track.



ndhra Pradesh is aggressively pursuing strong industrial growth with focus on employment generation, and targetting varied levels of investment required. “Initially the ongoing industrial investment Promotion Policy was targeted to promote investments to a tune of Rs.15, 000 crores in the state, but it has surpassed all our expectations and reached Rs.24, 000 crores during the past 4 years� says K. Lakshminarayana, Minister for Major Industries, Government of Andhra Pradesh.

Andhra Pradesh Celebrations - 2009


Government of Andhra Pradesh has introduced New Industrial Policy with great emphasis of provision of Quality Infrastructure coupled with a Policy for gradual phasing out of subsidies and creating right industrial environment in the State to make the State of Andhra Pradesh an attractive destination for both Foreign and Domestic Investors. The government is planning to re-look into the existing industrial policy as per the needs of the investors within the scope of the budget available. Similarly the government is planning to have a special focus in the policy to encourage the emerging automobile sector in the state.

region being a costal area, it holds a natural advantage to control environmental pollution through proper waste management system and marine outfall.

NEW INITIATIVES During the last couple of years, the Government has been focusing on the emerging sectors like semiconductors, Automobile and establishment of Special Economic Zones. The government has resolved number of issues pertaining to the external infrastructure and single window clearances required for the Special Economic Zones. So far 40 SEZs have become operational with an investment of Rs. 5,470

Further elaborating on the policy and the industrial infrastructure the Minister said “The infrastructure in the state is highly advanced and has a great potential to exploit the resources. The Industrial Investment Promotion Policy 2005-10 has been applauded by number of industrial associations and commented as the best industrial policy in the country. The new policy has created an investor friendly environment in the state. Similarly the land acquisition policies have also pushed larger number of SEZs notified in the state compared to northern states. There have been 103 SEZs allocated to Andhra Pradesh out of which 68 are notified, and construction works have already started in them.” With the above background the government is slated to focus on creating large scale employment through promoting large scale industries. The focus is particularly to encourage labour intensive industries like Readymade Garments, Textiles, Gems & Jewellery, food wear, Semiconductor and so on. The state also has a wide potential to establish industries like Pharmaceuticals, Cement, Paper, Food Processing, Textiles, Engineering Industries, Steel, Spong Iron, Ferro alloys and Biotechnology etc. New and emerging sectors that have cropped up recently are Semiconductors, aerospace and automobile industries. The government’s focus now is to see that all the notified SEZs get fully accommodated with maximum number industries which would create employment opportunities to more than 30 lakh people. Government of India has approved the proposal of setting up of petroleum Chemical, Petrochemical Investment Region (PCPIR) in an area of 604 square kilometers between Visakhapatnam and Kakinada region. There is a large scope of investments coming into this region due to number of advantages like finding of natural gas in Krishna Godavari Basin, existence of number of ports like Visakhapatnam, Gangavaram, Kakinada and a captive port for Kakinada Special Economic Zone. Since the 55

K. Lakshminarayana, Minister for Major Industries

crores creating employment to 61,905 persons. Fab City has been promoted in Ranga Reddy district over an area of 2,500 acres with complete infrastructure facilities in place. Land has been allotted to about 10 industries in the Fab city. Two units have already commenced production creating employment to about 500 persons. The other successful SEZs are Apache foot wear in Tada in Nellore district where about 6,000 persons are employed, Hyderabad Gems & Jewelleries in Ranga Reddy where nearly 4,000 persons are employed. Brandix Apparel City in Visakhapatnam has employed about 1000 persons. In the next couple of years, the Government is planning to bring a much better investor friendly industrial policy to explore the full potential of the state resources. The policy would encourage promotion of labour intensive industries and would have a special focus for the promotion of women and SC/ST entrepreneurship.

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Powering MSMEs

APITCO a pioneer in the development of viable Micro Enterprises has spent 33 long years and stood by more than 35000 micro enterprises in rural and semi-urban areas and has assisted 6000 small enterprises plan in the state.


PITCO is a unique organization of its kind in Andhra Pradesh offering an array of consulting services for the development of Micro, Small and Medium Enterprises (MSME) at affordable fees. The unique features of APITCO are reflected in its self-sustained operations,


diverse professional base and offering varied services as a one stop shop. From identifying viable investment opportunities through nurturing prospective entrepreneurs, project planning, technology facilitation, market assessment, assistance in project implementation and turnaround strategies APITCO offers all the services under one roof. During the 33 years of its existence, APITCO stood by more than 35,000 micro enterprises, in rural and semi-urban areas, in realizing their entrepreneurial goals. Similarly, APITCO has assisted over 6000 small enterprises plan, establish and grow their businesses profitably. More significantly, APITCO has partnered with the Government of Andhra Pradesh, through the departments of Rural

Andhra Pradesh Celebrations - 2009


Development, Minorities Welfare, BC Welfare, Tribal Welfare, SC Welfare, Child and Women Development, Youth Advancement, Tourism and Industries and Commerce, in successfully implementing programmes for attaining inclusive growth. APITCO is a pioneer in the development of viable Micro Enterprises by offering its professional “escort services”. APITCO’s ‘escort services’ range from identification and selection of prospective entrepreneurs, enabling them to choose the right business opportunity, assist them in accessing bank credit, guide them in machinery selection, understanding market for end-products as also handholding them in implementing the ventures. APITCO’s ‘escort services’ are quite impact making in that nearly 85% of the enterprises established not only operate on a sustainable basis but have created a strong demonstration effect on entrepreneurship development in the local economics. Indeed, the Rural Industries Programme (RIP) launched by Small Industries Development Bank of India (SIDBI) was based primarily on APITCO’s micro enterprise development model. In the area of MSE cluster development, APITCO has been a trendsetter in the state in effectively implementing 14 cluster development projects. Understanding the cluster dynamics, building stakeholder trust, preparing cluster diagnostics, mobilizing resources and implementing specific interventions for the development of the clusters has been APITCO’s forte. Implementation of cluster development projects has brought about significant improvement in all the clusters APITCO is associated with and more so with respect to Chittoor Fruit Processing, Machilipatnam Imitation Jewellery, Rayadurg and Pamidi Readymade Garments, and Etikoppaka Wooden Toys clusters.

S. Srinivasa Rao, Managing Director, APITCO wage employment seekers in the state as part of capacity building initiatives of the State and Central Governments. Besides, considering its vast experience and expertise, APITCO has emerged to be Project Management Consultant and Lenders Engineer by commercial banks and departmental clients for ensuring timely implementation of major infrastructure and industrial projects. Considering the strong potential for MSME growth in the State and the emerging business environment, APITCO would like to enhance its role as a facilitator in propagating energy efficient and environment friendly technologies. Besides, it contemplates to assist SMEs in accessing low cost finances through private equity participation. Likewise, APITCO also has plans to facilitate business collaborations between SMEs in the State and those in countries such as Kingdom of Bahrain, South Korea, Taiwan and South Korea.

Currently, APITCO is implementing seven cluster development projects across the country in pharmaceuticals, engineering and floor coverings sub-sectors supported by World Bank and DFID through SIDBI. Capacity building and skill development of MSMEs are quite critical in the liberalized and an increasingly globalised business environment. APITCO has thus far trained and retrained more than 40,000 entrepreneurs and


57 Andhra Pradesh Celebrations - 2009


Andhra Pradesh Celebrations - 2009


Having understood the health pulse of the people, late Dr. Y.S.R, was quick enough to explore new dimensions to meet the health service of the people and introduced profound new health welfare scheme the Rajiv Arogyasri.


ealth is the most precious wealth one should have to go a head with other aspects of acquiring material wealth. If one does not have a good health then it is difficult to lead a meaningful life in this world. The great visionary leader Late Dr. Y.S.Rajashekara Reddy, by virtue of being a doctor understood this fact well and thought that if the state is to prosper than the people of the state should be healthy. With this intention for the first time in the country he launched a historic health scheme –Rajiv Arogyasri. Earlier to Arogyasri, the poor people dared to dream of getting treatment in the corporate or multispeciality hospitals. People suffering with chronic diseases like cancer, tuberculosis, and heart diseases were left alone to die as they had on money at least to feed themselves. Having realized this aspect of health dimension Dr. Reddy moved a head with a vision to provide the best available treatment to every poor in the state. Standing tall on the health frontier, Andhra Pradesh has placed itself well beyond other states in catering the health needs of the poor at the earliest in the country. The health department set some of greatest objectives and worked towards achieving them. The basic objectives were aimed at providing access to responsive basic health care and specialized health care at affordable prices. For women the government enabled 104 ambulance services to have safe and successful pregnancies. The thumping success of Rajiv Arogyasri scheme is being commended all over the country. Under this scheme, almost 1100 surgeries are being done every day with a cost of approximately Rs.3.5 crores. The scheme was awarded the prestigious “Skoch Challengers Award” in the category of service delivery. The health reforms taken up by the government are aimed at reducing the Infant/child mortality due to ailments like ARI and Diarrhea. It also aims at containing the spread of AIDS along with Communicable diseases like GE, Malaria and TB will be effectively prevented.


With the implantation of arogyasri it is taken care that people get equitable access to quality health care. Health sector will be equipped to deliver quality services for non-communicable diseases and trauma & injury cases. Life expectancy levels will reach 68 years males and 70.6 years for females from current 62 years and 64 years respectively. The state has also launched a pilot programme for vaccination against cervical cancer to be conducted in three remote mandals in Khammam district. Under the demonstration project being implemented by the Union Health and Family Welfare Ministry in association with Indian Council of Medical Research (ICMR), PATH and State government, three doses of HPV vaccine would be administered to 16,000 girls between 10 and 14 years in the mandals of Bhadrachalam, Kothagudem and Thirumalaipalem. There is a huge concern of about 75,000 women dying of cervical cancer in the country annually. The government is keen to extend the vaccination programme to the entire State. The main objectives of the pilot programme is to create awareness among people in remote areas and the three doses costing Rs.9,000 would be administered free of cost. The demonstration project would help the Ministry of Health and Family Welfare to make recommendations on how to address the problem of cervical cancer in India through vaccination and screening. Aarogyasri-II Encouraged by the success of ongoing arogyasri-1, Government had launched the Aarogyasri-II scheme on 17th July, 2008. This scheme includes a large number of additional surgical and medical diseases to enable many more BPL people who are suffering from acute ailments, to lead a healthy life. Aarogyasri-II scheme is an extension of the ongoing Health Insurance Scheme. The front end of the ongoing scheme viz., network hospitals, Aarogyamithras, Health Cards etc., will remain the same. Only difference would be that the pre-authorization and claim processing for the new diseases would be done by the Trust directly and funded from the C.M. relief fund. 30 groups of eminent doctors from the Government and corporate hospital sectors have through a series of discussions and in consultation with the managements of corporate hospitals finalized a list of 389 surgical and 144 medical diseases and also evolved package rates for its cashless treatment.

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the prestigious ‘Skoch Challengers Award’ in the category of service delivery. For this scheme, Rs.925 crores have been earmarked in this year’s budget. In addition, the Emergency Health Transport Service (108) and Fixed Day Health service (104) are also being successfully implemented. The total budget proposed for the Health Sector is Rs.3821 crores and Rs. 625 crore for Arogyasri, health insurance scheme,” said Danam Nagender, Minister for Health and Family Welfare. With the launch of Aarogyasri-II, cashless treatment of BPL population for all major diseases is possible in Government / corporate hospitals. Diseases covered under ongoing Aarogyasri-I and those proposed to be covered under Aarogyasri-II are complimentary to the facilities available in Government hospitals and put together substantially meet the medical requirement of general population. The diseases specifically excluded from the list are: High end diseases such as ‘hip and knee replacement, bone morrow, cardiac and liver transplantation, gamma-knife procedures in Neuro surgery, assisted devices for cardiac failures etc; Diseases covered by National Programmes viz., TB, HIV / AIDS, Leprosy, infectious diseases, Malaria, Filaria, Gastroenteritis, Jaundice etc., are also included in the list. Government of Andhra Pradesh has accordingly implemented a Community Health Insurance Scheme by name Rajiv Aarogyasri in Anantapur, Mahabubnagar, Srikakulam as Phase I project and East Godavari, West Godavari, Chittoor, Nalgonda and Ranga Reddy as Phase II and Medak, Karimnagar, Kadapa, Prakasam and Nellore as Phase III. Government after careful assessment of the scheme has now decided to expand the scheme with some modifications. Accordingly the fourth phase expansion was planned from 17-07-08 in five districts viz. Hyderabad, Adilabad, Kurnool, Vizianagaram and Visakhapatnam. “Since Rajiv Arogya Sree Scheme has helped lakhs of people to get treatment for the diseases, the scheme would be extended to cover more sections and diseases. Health is another sector where our Government’s concern and consideration for the common man has led to the conception of the novel and noble Rajiv Aarogyasri Community Health Insurance Scheme. The thumping success of this scheme is being commended all over the country. Under this scheme, almost 1100 surgeries are being done every day with a cost of approximately Rs.3.5 crores. The scheme was awarded


Swine Flue In the recent days Andhra Pradesh was disturbed with the spread of Swine flue (N1H1) virus. Just before the floods— Swine flue influenza had shaking the administration in the state. Despite taking adequate precautionary measures the administration’s efforts failed to stop H 1N1 intruded into the state. But in the aftermath the administration had exhibited its vigil and had taken stringent measures to contain the further spread. It has installed medical teams and testing centers at major ports airports and government hospitals to monitor the domestic and foreign commuters. The efforts of Ministry of health in the state have paid the fruits. The swine flu has been showing a decline for the last several days in the state. The state took a first of its kind initiative in India- an automated Interactive Voice Response System (IVRS) for information on swine flu which was launched in Hyderabad. It was a joint collaboration between the Government of Andhra Pradesh, BSNL and Voice Gate Technologies. The IVRS is a toll free helpline that can be accessed by dialling 12506 from any BSNL telephone in Andhra Pradesh. Callers can access everything they want to know about swine flu. Budget allocation During the year 2008-09 the government had allocated a budget of Rs.1315 crores. While for the year 2009-10 Rs.925 crores were earmarked for the Rajiv Arogyasri programme. The total allocations for the health sector in the state were set at Rs.3821 Crores for the year. In addition, the Emergency Health Transport Service (108) and Fixed Day Health service (104) are also being successfully implemented.

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Surgical Excellence By conducting the city’s first ever Single Port surgery, offering Minimal Access Surgery, laproscopic paediatric urology, centre for excellence in spine surgeries and providing the best quality Bone and Joint Care, apart from being a super-specialist in Cardiac Care where Awake Bypass Surgery, Beating Heart Surgeries and complex adult and paediatric surgeries are passÊ, Kamineni Wockhardt hospitals has time and again proven its commitment to the health and welfare of the people of Andhra Pradesh. 61


amineni Wockhardt Hospitals has been on the forefront of healthcare in Hyderabad. Its services are supported by sophisticated technology and experienced medical professionals. Kamineni Wockhardt Hospitals is equipped with the latest generation diagnostic and treatment facilities and provides a comprehensive range of specialised tertiary care services. With its dedicated and experienced patient care teams, patients can expect world-class care and comfort before, during and after their visit. The quality of healthcare services at Kamineni Wockhardt Hospitals is at par with the best centres anywhere in the world at a fraction of the cost in comparison to US, UK and Canada. In fact they are already getting a number of patients from UK, USA Canada, Africa and the

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Middle East and they have all gone back very happy with receiving the high quality services at very low cost.

DEVELOPMENTS The hospital has launched a new Bariatric Surgery programme, team consists of trained surgeon from USA and also other surgeons who have been trained in Australia and Belgium. Metabolic Surgery, another new addition, will completely transform diabetes management. This will be a new concept in India, and will be under the supervision of Dr. Vishwas Nayak, a leading Laproscopic Bariatric consultant. Both these programmes, in their implementation, will be novel concepts for Hyderabad. Kamineni Wockhardt Hospitals is currently focussing on Neurology and Neurosciences. The medical establishment is already excelling in Cardiology, Orthopaedics and Minimal Access Surgery. Their Orthopaedics department has created a unique philosophy by ways of offering the best implants that maybe a bit expensive but are the best in regards to quality. “Our Knee Replacement procedures are meant for the long term benefit of the patient; providing the best quality implants ensures that the patients can be hassle free for a period of about 15 years” said, Sudhaker Jadhav, Head Operations. Recently, Kamineni Wockhardt Hospitals also performed the first Awake Bypass Surgery where the patients are not completely sedated, and can speak to the doctors during the surgical procedure. This procedure has been inducted to minimise the threat to vital organs in old and vulnerable patients; only local anaesthesia is administered instead of general anaesthesia, so that the rest of the body can keep functioning properly without any risk of damaging other organs. Jadhav shared, “The first Awake Bypass was conducted in Wockhardt Hospitals, Bengaluru. Similar awake surgeries are being contemplated for other medical procedures also.”

FACILITIES Kamineni Wockhardt Hospitals prides itself in offering high quality, super-speciality medical services in the following: Caridac Care Kamineni Wockhardt Hospitals is a center for excellence in Cardiac care. A fully dedicated team of 25 leading Cardiologists / Cardio-Vascular Surgeons, high-end imaging technology including Cardiac CT and a remote access intensive coronary care unit monitored by interventional cardiologists round the clock, Wockhardt is able to take on


any kind of cardiac emergency 24x7. The center is geared to perform Primary angioplasties even in the middle of the night. With its 24 hr. Catheterization Lab, specialized cardiac nursing staff and experienced team of professionals, Wockhardt Heart Care is able to handle a heart attack at any time, any day. With its latest technological advances and ethical management practices Kamineni Wockhardt Hospitals pledges to provide international standard cardiac care to its patients. Wockhardt Heart Care, with the best Cardiac Surgeons, Cardiologist & Medical Staff delivers world standard heart care with the highest degree of convenience, care and compassion at a reasonable cost. Services & Procedures Coronary angiogram & cardiac catherisation Coronary angioplasties with stenting ♦

♦ CABG ♦ Adult & paediatric open heart surgeries ♦ Surgery of aneurysms ♦ Surgery of heart valves ♦ Vascular surgery ♦ Thoracic / Pulmonary surgery ♦ Amplatz closure for ASD ♦ Diagnostic electrophysiology studies ♦ Radio frequency ablation

Bone and Joint Care The Wockhardt Bone and Joint Hospital which is an integral part of Kamineni Wockhardt Hospitals is a remarkable new source for the advanced treatment of musculo - skeletal disorders. The hospital provides patients and their families with the highest quality orthopaedic care, and a new dimension of personal care. The hospital is specialising in the latest techniques and treatments and utilising the most sophisticated diagnostic procedures and the latest surgical techniques, including state of the art ortho-instrumentation when appropriate to reduce pain and restore structure and function. Services & Procedures ♦ Joint Replacements Spinal Minimal Access Surgeries ♦ Arthroscopy Surgeries

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♦ Paediatric Bone and Joint Surgeries ♦ Hip resurfacing ♦ Specialty Clinic for Arthritis ♦ Specialty Clinic for Back Pain ♦ Specialty Clinic for Osteoporosis General Orthopaedics

Minimal Access Surgery Kamineni Wockhardt Hospitals is equipped with High-end technology to perform precision surgery in this newly developed modality of surgical treatment, which until recently

Jadhav also opined that Andhra Pradesh is still in need of at least 8-10 quality hospitals. The service and infrastructure quality is still lacking in the private medical sector. There is a prominent gap in demand and supply, and even Hyderabad could benefit from having 3-4 more hospitals established. Medical Tourism is still on a growth path since the demand for patients will always exist in the market. There is infrastructure of global standards available that caters to international patients. The new international airport has eased out the medical tourism experience and with direct connectivity to a range of countries, has aided in making Hyderabad the hub for international patients. There are basically three types of patients that opt for medical tourism: From Underdeveloped Nations – patients are from underdeveloped nations such as countries from Africa to receive quality medical treatment. Medical facilities in Hyderabad are cheaper compared to Mumbai and New Delhi. Kamineni Wockhardt Hospitals has been treating a huge number of patients coming from Africa each year.

Sudhaker Jadhav, Head Operations required large incisions on the human body. It encompasses operative procedures for the thorax, abdomen, urinary tract, reproductive system and joints. This has been recently applied in children and infants too. This technology not only minimizes surgical trauma, pain and blood loss but also shortens hospitalization and improves aesthetics.

THE ROAD AHEAD Commenting on the government’s role in the state’s healthcare, Sudhaker said, “In regards to the government’s medical benefits scheme, Arogyasri, there has been a considerable decline in the number of patients. The patient base for cardiac and major ailments has almost been exhausted resulting in a drastic reduction in cardiac diseases. The government is now looking into granting Arogyasri medical benefits to all the people in the state; the scheme could be availed through the payment of a small monthly premium.” If this proposal gets implemented, it will be a very good step by the government in offering benefits to the people.


From Developed Nations – patients are from developed nations such as USA and UK, but cannot afford the healthcare costs in their country or those who do not have medical insurance. The medical procedures are available at a fraction of the cost here in India. The patients also avail of their international medical insurance and the lower cost of treatments brings down their insurance premiums also – benefiting the insurance, the patients and also the host country, India. From National Health Schemes – patients are from national health schemes of their countries of residence, but do not want to go through the long waiting periods to avail of their medical benefits. Jadhav also added that Kamineni Wockhardt Hospitals has seen a sudden surge of patients coming from Middle East and countries like Uzbekistan. Jadhav stated, “The concept of medical tourism is being promoted through the Medical Tourism Association and also through the media of web marketing, tourism agents, tour operators, call centres, NGOs and HMOs. The sultanate of Oman has been conducting medical tourism conferences, while New Delhi and Mumbai have also played host to some international medical tourism conferences. ICRI College has even commenced a P.G. Diploma course in medical tourism.”

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Giving Wings to Cure Aurobindo one of Asia’s biggest pharma company is making its presence felt across the globe strengthened by its recent partnership deal with PFIZER, the global Pharma leader.


ndhra Pradesh has always been an important centre of activity for the Indian Pharmaceutical industry. The state accounts for more than one-third of India’s total bulk drug production with world class pharma manufacturing facility that has been identified on the global radar with its unique generics from different players that are catching up with the pharma world in the west. 64

India’s leading drug manufactures like Aurobindo Pharma Limited and Dr. Reddy’s are becoming visible global names, utilizing both organic growth through the gradual development of their front end presence and strategic partnerships with Big Pharma companies as they seek to boost their generic penetration in existing markets and open up new ones. In a recent development, the leading drug firm Aurobindo Pharma Limited based at Hyderabad has extended its global wings by inking licensing deals for several solid dosage and sterile products with PFIZER - a global leader in pharmaceuticals - backed by supply arrangements for US, Europe and Rest of World countries.

Andhra Pradesh Celebrations - 2009


AUROBINDO AT A GLANCE Today, Aurobindo Pharma Limited in Andhra Pradesh is a well integrated pharma company poised for sustained growth with focus on formulations. Aurobindo’s core strengths lie in its wide diversified basket of over 300 products encompassing many key therapeutics such as CardioVascular, Neurological, Gastroenterological, Anti-Diabetic, AntiRetroviral, Antibiotics and Anti-Allergic with large state-ofart manufacturing facilities approved by USFDA, UKMHRA, WHO, MCC-SA, ANVISA-Brazil, TGA-Australia for both Formulations and APIs.

2897 million during 2009 for same period thereby growing by 62 percent. The company though young in its presence in the US market has been gaining critical mass with commercialization of new products and growing market share of launched products. Within a short span of four years it has established strong relationships with different distribution channels such as wholesalers, warehousing chains, retailers and mail orders and recorded sales over USD 100 million during the year 2008-09. In US it has developed and filed more than 150

Aurobindo also has one of the biggest R & D base in India focused on developing intellectual properties in noninfringing processes and resolving complex chemistry challenges. The company has technological expertise in complex chemistry, products development and bio-studies. It has attained specialty formulations know-how for Sustained Release, pediatrics and Fixed Dose Combination products and a competitive edge in sterile injectables. In terms of geographic spread it has entered into highly regulated markets in US, EU, SA, Canada, Australia, worldwide participation into ARV business and has been mirrored in BRIC economies and RoW. The company has been exporting to over 125 countries with more than 70 percent of revenues coming from international operations. The international sales of the company has improved to 21.2 billion during the year 2008-09 from Rs 16.0 billion in the year 2007-08, a growth of 33 percent in just one year. Recently it has received the “Outstanding Export Performance Award” for the year 2008– 09 from Pharmaceuticals Export Promotion Council of India (Pharmexcil) set up by Ministry of Commerce & Industry, Government of India, in recognition of commendable performance in the exports of pharmaceuticals in the category of Formulations from India The company with its employee base of 7000 including a large pool of 700 scientists has laid a strong foundation for sustained organic growth. In terms of revenues the company is looking to deliver r0evenues of Rs 40 billion by March 2010. With increasing focus on formulations, there has been a quantum leap into the segment in record time. The dosage formulations business in short span of time grown to about 57 percent of sales and has helped Aurobindo to become a truly diversified and well integrated Pharma major. The company delivered formulations sales of Rs 4689 million for the first quarter of the financial year 2010 as against Rs


PV Rama Prasad Reddy, Chairman, Aurobindo ANDAs (Abbreviated New Drug Application) out of which over 100 products are approved by the USFDA Aurobindo has also been ramping up its European presence in key generics markets as UK, Netherlands, Italy, Germany and Portugal. The company has forayed into the European market having acquired marketing authorizations from Milpharm in UK Pharmacin in Netherlands and TAD in Italy, in its effort to penetrate in these markets. The company is augmenting European operations through Malta in dossier licensing operations, QC/QA and centralized warehousing for Formulations distribution pan Europe With the expiry of patent protection and the slowdown in innovator product pipeline to replace such off patent products has been driving generics growth. Aurobindo leveraging on its huge IPR depth, manufacturing width, quality focus and low cost advantage has entered into strategic partnerships with Big Pharma MNCs by licensing its products and entering into long term supply arrangements for the same for generics and branded markets across the world. 65 Andhra Pradesh Celebrations - 2009


Philosopher of Healthcare With over 14 years of existence, Mediciti Hospitals has acquired a special character and created a philosophy so unique that it would be difficult for any other hospital to be at par with. Apart from catering to more than eight super-specialities that provide state-ofthe-art care, Mediciti Hospitals has been in the forefront of academics also. 66


ediciti Hospitals has created a unique philosophy in saying, “In this modern era, fast changing world super-specialisation in any field is the global trend, so in medicine with the advancement of technology and an ever increasing need to learn more, more specialised courses are the need of the hour, our nation cannot afford to lag behind in this era of globalisation.� These words of wisdom are truly reflected in the fact that the professionals at Mediciti have been bringing together quality

Andhra Pradesh Celebrations - 2009


services to cater to quality needs. Whether it is Health Check Services or a Medical Services Provider, Mediciti Hospitals is there to serve the people; Mediciti believes ‘cure’ is a process, one that requires meticulous dedication and skilled knowledge. At Mediciti, the medical personnel strive to deliver the best in health care, courtesy an experience of more than 14 years. More than anything else, they strive to ensure that the human touch is felt in every aspect of the medical process, because to ‘care’ with all heart is to ‘cure’ in entirety. This statement is best described by Prof. Nagamalleswara Rao, Director and CEO of Mediciti, who opines, “Due credit must also be given to the support system that enables this to happen; the much respected nursing and paramedical staff and the kind administrative personnel who ensure that patient care is at its best, and that the entire experience of hospitalisation is as smooth and comfortable as possible.” Mediciti Hospitals is one of the very few hospitals in the private sector of Andhra Pradesh to run Diplomate of National Board training courses in 5 specialties - Cardiology, Internal Medicine, Nephrology, Pulmonary Medicine and General surgery. The hospital also runs two Postgraduate Diploma Courses in Respiratory Therapy, which is recognised by the Government of A.P. In addition, the school of Nursing which started in 1995 trains about 60 nurses every year. Mediciti Hospitals has established itself as a super-specialist in Cardiology & Cardiac Surgery with an impressive panel of highly qualified and reputed doctors. “I do believe that the warm, caring and friendly environment that all these teams have created at Mediciti is unique, just as every patient’s smile, on being discharged, is proof of a job well done by our various professional teams,” states Rao. This level of patient satisfaction is the intangible asset that Mediciti continues to strive for, and better with each passing day and each new patient. Since the hospital’s inception, Mediciti has been consistently acknowledged for its honest, sincere and ethical practices.

HELPING HAND Apart from offering quality healthcare, Mediciti is playing its part in serving the needy community. With the all the devastation caused by the recent floods in Kurnool, Mediciti came forward to lend a helping hand. The entire staff of the hospital has donated one day’s salary to go towards the Flood Relief Fund and collected nearly Rs.5 lakh; this amount will be matched by the Chairman of the hospital.


The flooding has not only caused widespread destruction, but is also going to set off a wave of infectious, water-borne diseases. Clean drinking water and proper sanitation needs to be the top most priority for the benefit of the people. Preventing the diseases from the initial stages will always be more effective than curing the diseases at a later stage.

DEVELOPMENTS The hospital has recently added an exclusive Spine Surgery Department, with an orthopaedic surgeon having 6 years of surgical experience. Liver Transplants have also been added

Prof. Nagamalleswara Rao, Director and CEO, Mediciti to the wide array of Specialist Services at the hospital. Mediciti is also planning to start Laser Surgery treatments in the Urology department; the laser surgery will be used for treating kidney stones and prostate problems. Live work shop on Laser usage in urology will be held on Jan 23 rd 2010. Some international figures in the field will be participating and it will be live from Mediciti OT complex to Grand Kakatiya Hotel. The near future holds big promises for Mediciti, with a Super-Speciality, 600 beds capacity hospital coming up in the city which will be of international standards. The medical college associated with the hospital (Mediciti Institute of Medical Sciences) with 100 seats accepted every year, has already started post-graduate courses in four specialities. The medical college, which has a 500 beds capacity hospital, is essentially focussed on treating people from Below Poverty Line (BPL) households. The aim of the medical facility is to ensure that every person receives the healthcare they need

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and so everyone can get treatment. The medical college will soon be starting cardiac surgery also.

ANDHRA PRADESH – THE ROAD AHEAD The government, with its medical benefit scheme Arogyasri, had strived to help the poor and the destitute, but went about it in an incorrect manner. In offering medical services such as cardiac treatments, the government has avoided and neglected primary healthcare; while only tertiary healthcare has been given importance. Rao comments, “The youth and younger generation of the state need to be assured of the safety of their health. They

need protection from infectious diseases, which the government fails to realise.” These diseases are most common and most hazardous to the society. Treatment of diseases such as cardiac ailments limits the medical benefits to a certain age bracket, and hence is not an effective way of providing medical benefits for the poor. Primary healthcare was given importance and the infrastructure was developed during previous Governments, but was neglected by the new government after that. Because of the neglected primary healthcare segment, there has been a substantial increase in the monthly internal medicine revenues in the corporate Hospitals, which indicates a high rise in infectious diseases; “this questions the government’s ability to prevent and control infectious diseases at the root level,” Rao shared.


At present there is a total lack of balance and coordination between the Infrastructure and Development in the healthcare sector. The healthcare sector will benefit only when the government hospitals can be developed and made selfsufficient – which in turn will lighten the burden that is weighing down corporate medical establishments. Even though the Arogyasri scheme is a government initiative, majority of the cases are being referred to corporate hospitals and not the government ones; nearly 85% cases are being handled by the corporate hospitals. The government has not kept a control over the recipients of the Arogyasri benefits; only 20-30% of the beneficiaries are poor people, who actually need the medical benefits. Rich people who can afford good healthcare have acquired Arogyasri cards and are misusing them. Rao explains, “Government hospitals have 4 times the infrastructure as compared to corporate establishments. For example, Osmania General Hospital has more qualified doctors than all the private hospitals of the city put together. Many superspecilists Government doctors are actually on long-term leave and working at private hospitals due to lack of recognition of their qualifications.” The government needs to concentrate mainly on primary and secondary healthcare, as they are the sectors most in need of development. The government subsidies should be given to the poor people that are in real need of them. The facilities at government hospitals need to be upgraded, and when the facilities are not available only then should the patients be referred to corporate hospitals. Rao says, “The government subsidies for tertiary care towards corporate hospitals should be assessed and approved by a professional committee, so that the government can focus on the essential developmental requirements and fill up the gaps that exist in the healthcare infrastructure of the state.” Andhra Pradesh Celebrations - 2009


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Andhra Pradesh Celebrations - 2009


Proactive initiatives of the Andhra Pradesh Government and potential to sustain long term IT growth have transformed Hyderabad to become India’s leading IT hub. New IT policy of the government to bolstering IT investments is gradually spreading to other cities within the state.


ndhra Pradesh has become one of the most happening IT destinations in the country with the arrival of world class educational institutions, expansion of R&D facilities by companies like Oracle, establishment of call centers by global corporations such as GE and the success of Indian companies like Satyam. With the initiative of the Government of Andhra Pradesh, both Indian and MNC IT giants have invested in Hyderabad as the government assured them with proper infrastructure and security. Today the city is home to about 700 companies and in addition to the security provided by police, these companies have their foolproof security set-up. The IT boom has had a significant positive impact on real estate development in Andhra Pradesh during the past few years from now. The state offers tremendous development potential with Hyderabad at the epicenter of IT growth, followed by emerging cities such as Visakhapatnam, Vijayawada and Tirupati. During the year 2008-09, the state had earned the fourth largest revenues in IT exports amounting to INR 1.85 billion, accounting for about 15 per cent of the total IT/software exports from India. Andhra Pradesh continues to be a significant contributor towards India’s economic growth. Beginning with the government’s initiative towards the development of the successful Hitec City in Hyderabad and policy initiatives aimed at bolstering investment, IT development is gradually spreading to other cities within the state. Moreover, the Andhra Pradesh government is now looking proactively at foraying into sunrise IT sectors such as KPO along with Animation and Gaming. Interestingly, the growth of IT sector has had a positive impact on various other sectors; especially the real estate


business has had a good boost in the state. Not only in the state but through out the country the real estate market is not only growing in terms of pace, but also in scale. Now, Real estate growth engines are no longer in cities such as Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Kolkata and Pune. The smaller cities are now expected to be the growth drivers over the next decade. More that a dozen Tier III cities compete with each other to attract developers, investors and occupiers. The smaller cities in Andhra Pradesh will have an advantage due to relentless government support. The state’s initiatives and strategies for infrastructural development, human resource development and policy framework to support and attract investments have helped it become an attractive investment destination for developers and occupiers. From the positive growth momentum built by the government, Andhra Pradesh is steadily placing itself firmly on the global business map. Andhra Pradesh has the highest number of SEZs approved

In the last financial year, 69 new companies, including 9 foreign companies, were registered with the STPI while 22 units were set up in the state under the SEZ scheme. The investments by the newly-registered units had been projected at Rs 510 crore with domestic companies accounting for Rs 497.26 crore. Plans are afoot to provide land and other facilities to small IT/ITeS companies. We are also looking at extension of tax benefits for STPI. We are also working towards developing a new IT policy by 2010. Our focus is mainly on taking IT to rural parts of the state especially Tier II and Tier III cities like Vizag, Kakinada and Vijaywada” - Komatireddy Venkat Reddy, Minister for Information Technology.

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by the central government for the IT sector (as of 31st December, 2007). It is expected to get a total of 71 SEZs which will create overall jobs for more than 2.5 million people. Digital Entertainment City is envisaged to be developed as the largest animation and gaming hub in South Asia and is slated to be developed through private-public partnership. The city will have world class in facilities and incubation centers with relatively lower rental and commercial values when compared to major cities, Hyderabad is still affordable in terms of real estate costs and living. Six IT/ITeS companies had contributed more than Rs 1,000

crore each to the total export turnover of the state from this sector. These include Wipro, Infosys, Microsoft, Prithvi and TCS. Small companies together accounted for Rs 3,000 crore, which include 411 units whose turnover ranged from Rs 1 crore to Rs 100 crore each and 273 units with a turnover of less than Rs 1 crore each. “In the last financial year, 69 new companies, including 9 foreign companies, were registered with the STPI while 22 units were set up in the state under the SEZ scheme. Besides, 52 existing companies expanded their operations. The investments by the newly-registered units had been projected at Rs 510 crore with domestic companies accounting for Rs 497.26 crore and foreign companies for the remaining Rs 12.74 crore. Investment under the SEZ scheme so far reached Rs 3739.29 crore as against a projected figure of Rs


16,069.17 crore for a five-year period. Plans are afoot to provide land and other facilities to small IT/ITeS companies. We are also looking at extension of tax benefits for STPI so that the growth of the IT/ITeS sector is sustained during these tough years. We are also working towards developing a new IT policy by 2010. Our focus is mainly on taking IT to rural parts of the state especially Tier II and Tier III cities like Vizag, Kakinada and Vijaywada,” said Komatireddy Venkat Reddy, Minister for Information Technology. While an initiation was already taken in the last five years, the government intends to take it forward with a renewed focus and in a streamlined manner. “We have been receiving proposals from companies to set base in tier II and Tier III cities in the state and we will ensure they are fruitful. We will provide all the support required as facilitators,” said Reddy. With the BPO-KPO boom along with major software development and hardware companies, the state is second in the country. “I am hopeful that we will reach the top slot by next year. We have the right focus, the right governance, the best infrastructure and great incentive policy also,” said Reddy. The government is working towards incentivising small & medium enterprises and start ups. It wants to encourage them with suitable tax benefits also. “There was a representation from the US of about 200 small enterprises who want to set base here and we are looking at land and other aspects to encourage them. We are also looking at setting one IT center in every two villages,” said Reddy. A proposal has been planned to be sent to the centre towards undergoing this programme in 4600 rural villages of the state and the state government is awaiting the clearance with great optimism. Another important agenda for the state is to implement e-governance initiatives in all government departments at the earliest.

Andhra Pradesh Celebrations - 2009


Empowering the Manpower Qualcomm India Pvt Ltd has recently been ranked 6 th in the list of ‘India’s Best Companies to Work For’ – 2009, formulated by the Great Place to Work Institute for The Economic Times. This distinction adds on to the plethora of awards and recognitions already in place for the company; and it owes


it all to the entrepreneurial and free spirited culture it has infused in its operations and its employees. Part of the Global Research and Development team, the Hyderabad centre was started in 2004 and has grown rapidly to become the second largest R&D operation for Qualcomm CDMA Technologies outside of its headquarters at San Diego.

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Commenting on the telecom market, Reddy stated, “With the announcement of the 3G policy in India and the robust and continued growth of the emerging market here, we look forward to many new and exciting development opportunities to meet local and regional needs. We have made a huge capital investment in our IT and Wireless Lab infrastructure. Key is the common tool and the dedicated link between US and India offices that enable staff to work seamlessly on global projects and programs.” The Hyderabad center contributes significantly in areas encompassing wireless modems, multimedia and embedded applications. The centre also hosts a pre-certification lab that enables its customers to test their products against formal type approval and carrier specific acceptance, resulting in faster time to market. Qualcomm’s growth in the Indian market has seen a remarkable upswing in the recent past. The Hyderabad center started in 2004 and has grown rapidly to become the second largest R&D operation for Qualcomm outside of San Diego and is part of the Global R&D team for QCT. The Hyderabad center contributes significantly in areas encompassing CDMA2000 and UMTS wireless modems, multimedia and embedded applications. The centre also hosts a pre-certification lab that enables its customers to test their products against formal type approval and carrier specific acceptance, resulting in faster time to market. The India operation is significant for Qualcomm because of the location. “We are close to many of our key customers in Taiwan, China and Korea. We are also close to many key markets – specifically the emerging, high growth, markets in China and here in India. As such we are able to provide fast and focused support,” said Sashi Reddy, Vice President – Engineering, Qualcomm Hyderabad.

HYDERABAD FOUNDATIONS Over the last few years, the Hyderabad center has built strong expertise in many aspects of software development, system integration, product verification, commercialization and customer support. Many of the value, multimedia and convergence tier products are predominately supported from here. The staff growth in Hyderabad has been phenomenal for Qualcomm, averaging over 200% a year over the last 4 years. “As you can imagine this brings many challenges to IT and facilities. Yet we’ve faced them and have managed to build a world class development centre with best in class tools and IT infrastructure,” expressed Reddy.


HUMAN RESOURCES Qualcomm recognizes that being sensitive to employee’s needs and preferences is a valuable benefit that can boost retention and an employee’s well-being in general. Its objective is to create a flexible atmosphere which supports employ-ees’ work-life balance. The Q Flex Policy is one such, designed to, in appropriate circumstances, provide employees with flexible work sched-ules, alternative work schedules, or telecommuting options. They also have an initiative called ‘Vacation Donation Program; whereby coworkers can transfer a part of their leaves to their col-leagues, in case of extreme needs and explainable circumstances.

REWARDING PERFORMANCE Recognizing people who are not only exceptional performers but also give that added value to the job, who take initiatives and deliver on results, shoulder additional respon-sibility and venture out outside the defined work purview, are the ideal employees which every organization vies for. These employees are not only recognized and rewarded, but val-ued as well. In Qualcomm India, the Qualstar Award Program is one such platform to quickly recognize and reward exceptional individual per-formance. The Super Qualstar pro-gram was created to reward employ-ees for exceptional performance, and going above and beyond the expectations.

NEW AVENUES OF LEARNING Qualcomm believes it is important to have the ability to seamlessly provide access to resources and tools, learning and development opportunities irrespec-tive of geographical location. They achieve this through online collabo-ration tools, online learning, access to online reading of articles/ publica-tions etc. The company also offers a wide range of online courses to increase the understanding of vari-ous CDMA and 3G technologies. Andhra Pradesh Celebrations - 2009


Their annual event QTech Forum, spread over three days, is an assimilation of people to share key technology findings, best practices and industry innovations. Reddy elaborated, “Qualcomm Technical Education Network is a central source of technical learning and development resources, avail-able in a variety of formats. It is designed to help engineers quickly prepare for new critical project assignments. Content is driven by Qualcomm-specific engineering standards and priorities. Today, based on usage statistics, the most downloads and hits to this site come from India.”

initiatives and the company works with social causes that employees closely relate to. They have a host of initiatives in various cities to help uplift the socially deserted and economically weaker sections of society. Qualcomm’s corporate giving programs are driven by employees to create educated, healthy and cultur-ally vibrant communities in which we live and work. In India, they have partnered with reputable non-profit organizations on initiatives that focus on child education, women empowerment and main-streaming the physically/mentally disabled into society. With ‘Save The Children India’ (STC) in Mumbai, Qualcomm

EMPOWERING EMPLOYEES Qualcomm prides itself on having an open-door policy, where employ-ees have access to their superiors and senior management. They encourage leaders to be in constant communication with their teams. By creating and fostering an engaging work environment, they are able to empower employees to make deci-sions and take steps to repeatedly provide the best quality of services, within the company, and to the clients. All employees are involved in the long-term strategy planning for the business and are then empowered in their individual roles to make it hap-pen. For any major decision, the entire team is engaged and their views solicited for business or any other aspect like community giving initiatives.

TIE-UPS ♦ Qualcomm and Tata Indicom collaborated to launch the

Sashi Reddy, Vice President – Engineering, Qualcomm, Hyd

QuickFinder A-GPS service Qualcomm Ventures made strategic investments in MapMyIndia ♦

♦ Qualcomm Ventures launched the QPrize business plan competition to support global entrepreneurship ♦ Qualcomm was recognized as among the Top 25 ‘Great

Places to Work’ in India, ranked sixth overall and first in the telecom sector

has funded a state-of-the-art library and five classrooms that cater to the edu-cational needs of 225 disabled chil-dren. They also support STCI’s Adolescent Girls Program, under which 120 girls have been provided with vocational and life skills train-ing to help them become more socially aware and financially independent.

♦ Qualcomm is playing a central role in the rapid adoption

In Hyderabad, the organization works with Mamidipudi Venkatarangaiya Foundation (MVF) which aims to abolish child labor and universalize school education.

and growth of 3G and next-generation wireless around the world

Through this collaboration, 2,500 child laborers are being main-streamed into the education system this year.

Qualcomm’s current intellectual property portfolio includes more than 11,000 United States patents for wireless technologies, with more than 175 CDMA Licensees.

In Bangalore, Qualcomm has worked with Sikshana Foundation to sponsor the adoption, empowerment and improvement of 25 government schools, approximately encompass-ing 3200 students.

GIVING BACK TO THE COMMUNITY Qualcomm employees play a key role in many welfare


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Andhra Pradesh Celebrations - 2009


Constructing 3 lakh houses in just 3 years is a remarkable achievement; the government of AP is running with time to reach the target and is well on track to make the state a Hut-free by 2014.


wning a house is a life time dream of every individual. For the rich getting a house is not a big deal, but for the poor it is too far even to imagine as they are always bothered how to survive the next moment rather than think of the future. Thanks to the great visionary and charismatic mass leader late Dr. Y.S.Rajashekhara Reddy, the former Chief Minister of the Andhra Pradesh who had moved closer to the people and heard their heart beats. In fact he had carved a place in their hearts through his schemes and programmes which are largely catering the real needs of the common man. He has seen the plight of the people during his historic ‘padayatra’ campaign. He had seen millions of people in villages living in tattered huts and half collapsed roofs with cracked walls. He had seen them suffering in rain, cold and hot sun with no proper shelter on their heads. Having seen all these, Dr. Reddy was determined to bring back the golden days of Indira Gandhi’s rule “Indiramma Rajyam” and wanted to re-enact the welfare schemes in her memory and thus brought in a comprehensive scheme in her name “INDIRAMMA” which literally means ‘Mother Indira’ but actual abbreviation is ‘Integrated Novel Development in Rural Areas and Model Municipal Areas’.

INDIRAMMA The objective of INDIRAMMA Housing programme is to saturate the basic needs in respect of the identified activities in all the Villages and Towns over a period of Three years. Such development model has ensured overall development of the Villages/Towns in a transparent manner covering additional areas every year. This process has also removed the uncertainty and skepticism in certain quarters with regard to coverage of all eligible beneficiaries and the infrastructure needs since all the villages/towns are covered over a period of three years. In addition to the above, the INDIRAMMA programme aims to provide pucca houses, drinking water supply, individual sanitary latrines, drainage, power supply to every household, Road facilities for transport, pensions to eligible old age persons, weavers, widows and the disabled, primary education to all, special nutrition to adolescent girls/pregnant and lactating women and better health facilities in all the villages


over a period of three years in a saturation mode. Overall the programme was aimed at improving the living standards of the people significantly. Achievements and targets Having implemented the INDIRAMMA housing scheme on a successful note Andhra Pradesh stands as a role model to the rest of the country. To the maximum extent INDIRAMMA housing programme is able initiate and meet its intended aim of creating a hut-free state, covering the entire State in three phases. Initially under the 1st phase, 19, 74,749 houses were sanctioned at a total project cost of Rs.5141.26 crores in the year 2006-07. Out of which, 11, 86, 031 houses were completed in 2008 and the balance 7, 88,718 were under progress slated to be completed few months later. During 2008-09 an outlay of Rs.5850 crores was allocated for INDIRAMMA Housing scheme. Under the Phase-II of the programme, 25.71 lakh houses have been sanctioned and the programme is currently under way. Apart from this, the balance works under the INDIRAMMA were covered in Phase – III in 2008-09. On the whole, the state government had aimed to complete a target of 30 lakh houses with a cost of Rs. 5,850 during 2008-09. In addition to giving assistance for construction of houses under INDIRAMMA programme, the government had also distributed house site ‘pattas’ to 4, 24,724 beneficiaries belonging to weaker sections in the state. Before INDIRAMMA programme only 12 lakh houses were constructed in the state, but with the launch of INDIRAMMA the government fastened its waist and reached the count of 27 lakh houses with in just three and a half year of its launch which is a remarkable achievement of the government. All put together—before INDIRAMM and after INDIRAMMA, about 39 lakh houses have been constructed so far. Over 17 lakh houses would be completed by the end of 2009-10 and another 33 lakh houses are being planned by the end of 2012. During the year 2008-09, the unit cost inclusive of a latrine had gone up to Rs.50,000 in villages and Rs.70000 in urban areas. As against this, the government had planned to contribute Rs.34250 for dwelling units in rural areas and Rs.46000 for those in towns, with a balance amount being arranged through bank tie-up. Keeping its promise earlier to SC/STs the government is planning to give an additional Rs.20,000 making the total amount to Rs.54,250 for each house.

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Rehabilitation Authority, like the one in Mumbai, to make urban areas in the state slumfree in five years.


This year during 2009-10, the government has proposed an allocation of Rs.18000 Crores for the Housing sector. Though this allocation is less than the previous year, but since the government is taking up the completion of already sanctioned/incomplete houses, it is estimated that this amount, together with the substantially higher allocation package and the newly conceived Rajiv Awaas Yojana (RAY) will ensure the programme goes in full swing. For the effective implementation of Indiramma Housing Scheme (HIS) and to avoid any misuse of the benefits the state government has employed village level monitoring committees. For vigilance aspects, one special officer will be assigned to cover two districts. In addition to INDIRAMMA, the Rajiv Swagruha scheme is also being driven in a streamlined manner. These houses which are about 20-25 per cent less than the market prices have been started in 21 places out of 29 identified areas. The government is planning to start the scheme in the rest of 8 places very soon.

NEW VENTURES Of late the government has also come out with a new venture called Deccan Infrastucture and Land Holdings Limited (DILL), a subsidiary of Andhra Pradesh Housing Board (APHB). It has already acquired a land bank of 6900 acres in the state. The company indents to develop and construct integrated Townships and implement Urban Infrastructure projects and provide Urban Housing solutions, which would explore its activities not only in the state but also outside the state and the country, with the involvement of private sector. Under DILL about 20 SEZs have already been sanctioned in areas of Pharma, IT, Housing, Agriculture, etc. The government is also focusing on making the state slumfree by 2014. It has already decided to constitute a Slum


The body that is executing the housing schemes in the state is Housing Corporation. The significant objectives of the corporation are to mobilize loans from various financial institutions for implementation of housing programmes and to play a role of facilitator in the construction of houses by providing technical and financial assistance. The corporation has also played a vital role in propagation of cost effective and eco-friendly construction materials and technologies in the construction of houses. Since 1979 to 2007 65.22 lakh houses have been constructed in the state. Financially, the government has spent a total of Rs6000+3000 Crores during the last 3 years. In the next coming year the government is planning to spend Rs12000 Crores for the completion of all the pending works in all the phases.

CHALLENGES The most important achievement of the housing department is that its way of going forward with the programme in a successful way with out the help of middle men and contractors. In fact the corporation is working with lakhs of people with the support of the local self help groups and other local structural groups to launch its housing programme. More over the programme is very transparent, as there is an online updating every information pertaining to the beneficiary, the payment and the status of housing before and after the construction. The major challenge for the housing department was to find out the right beneficiary. It is really a challenging task. In some cases many of the ineligible people have also been selected for the scheme which were detected at the later stage and detained from the scheme. As a part of acquiring the building material for the construction of houses the Housing Corporation has collaborated with cement companies and has got a special price of Rs150 per each bag while the present rate in the market is Rs220-230 per each bag.

Andhra Pradesh Celebrations - 2009


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Andhra Pradesh Celebrations - 2009


Banks have played a vital role in process of development. The state Bank of India, which is the largest bank in India, has contributed immensely to different sector. It has assisted financially to Agriculture, Irrigation, Social welfare and education. Never the less its support to industry is even more praiseworthy. Not only SBI, but other banks and subsidiaries like SBH, UBI, Canara bank, Andhra Bank among others and ICICI, IDBI, HDFC etc. in the private sectors have lend their hand in the growth process of the state.


nlike in the western world, the Indian banks have not shown vulnerability to the meltdown. The robust financial structure of the government and its hold on the banking system has saved our financial structure and is still supporting a positive growth even in the harsh economic weather all around. During the last one decade the role of banking sector has been significant in the process of economic growth and development of the state. Similarly, the Private Sector Institutions too have played an important role. They grew rapidly in commercial banking and asset management business. With the openings in the insurance sector for these institutions, they started making debt in the market. Competition among financial intermediaries gradually helped the interest rates to decline. Deregulation added to it. The real interest rate was maintained. The borrowers did not pay high price while depositors had incentives to save. It was something between the nominal rate of interest and the expected rate of inflation. Thanks to our policy makers, they have constituted a robust financial structure in the state and as well in the country. Despite global slow down and negative growth in the west the Indian economy is doing good with positive growth. This, itself is an evidence of our financial policy. The Finance Ministry continuously formulated major policies in the field of financial sector of the country. The Government accepted the important role of regulators. The Reserve Bank of India (RBI) has become more independent.


Securities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority (IRDA) became important institutions. Opinions are also there that there should be a super-regulator for the financial services sector instead of multiplicity of regulators. Banking system In India, almost 80 percent of the business is still controlled by Public Sector Banks (PSBs). PSBs are still dominating the commercial banking system. Shares of the leading PSBs are already listed on the stock exchanges. The RBI has given licenses to new private sector banks as part of the liberalization process. Many banks are successfully running in the retail and consumer segments but are yet to deliver services to industrial finance, retail trade, small business and agricultural finance. The PSBs will play an important role in the industry due to its number of branches and foreign banks facing the constraint of limited number of branches. Hence, in order to achieve an efficient banking system, the onus is on the Government to encourage the PSBs to be run on professional lines. Universal banking FIs’s access to SLR funds reduced. Now they have to approach the capital market for debt and equity funds. Convertibility clause no longer is obligatory for assistance to corporates sanctioned by term-lending institutions. DFIs such as IDBI and ICICI have entered other segments of financial services such as commercial banking, asset management and insurance through separate ventures. The move to universal banking has started. Long-term debt market The development of a long-term debt market is crucial to the financing of infrastructure. After bringing some order to the equity market, the SEBI has now decided to concentrate on the development of the debt market. Stamp duty is being withdrawn at the time of dematerialization of debt instruments in order to encourage paperless trading. Approach to reforms Major improvements in the working of various financial market participants have been observed during the last ten years. The government and the regulatory authorities have followed a step-by-step approach, not a big bang one. The entry of foreign players has assisted in the introduction of international practices and systems.

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Recovery of debts due to banks and the Financial Institutions Act, 1993 was passed, and special recovery tribunals set up to facilitate quicker recovery of loan arrears. Bank lending norms liberalized and a loan system to ensure better control over credit introduced. Banks asked to set up asset liability management (ALM) systems. RBI guidelines issued for risk management systems in banks encompassing credit, market and operational risks. A credit information bureau is being established to identify bad risks. Derivative products such as forward rate agreements (FRAs) and interest rate swaps (IRSs) introduced. Technology developments have improved customer service. Some gaps however remain (for example: lack of an inter-bank interest rate benchmark, an active corporate debt market and a developed derivatives market). On the whole, the cumulative effect of the developments since 1991 has been quite encouraging. An indication of the strength of the reformed Indian financial system can be seen from the way India was not affected by the Southeast Asian crisis. However, financial liberalization alone will not ensure stable economic growth. Some tough decisions still need to be taken. Without fiscal control, financial stability cannot be ensured. The fate of the Fiscal Responsibility Bill remains unknown and high fiscal deficits continue. In the case of financial institutions, the political and legal structures have to ensure that borrowers repay on time the loans they have taken. The phenomenon of rich industrialists and bankrupt companies continues. Further, frauds cannot be totally prevented, even with the best of regulation. Deregulation of banking system Prudential norms were introduced for income recognition, asset classification, provisioning for delinquent loans and for capital adequacy. In order to reach the stipulated capital adequacy norms, substantial capital were provided by the Government to PSBs. Government pre-emption of banks’ resources through statutory liquidity ratio (SLR) and cash reserve ratio (CRR) brought down in steps. Interest rates on the deposits and lending sides almost entirely were deregulated.

Consolidation imperative Another aspect of the financial sector reforms in India is the consolidation of existing institutions which is especially applicable to the commercial banks. In India the banks are in huge quantity. First, there is no need for 27 PSBs with branches all over India. A number of them can be merged. The merger of Punjab National Bank and New Bank of India was a difficult one, but the situation is different now. No one expected so many employees to take voluntary retirement from PSBs, which at one time were much sought after jobs. Private sector banks will be self consolidated while cooperative and rural banks will be encouraged for consolidation, and anyway play only a niche role. Organizations such as IDBI, ICICI, HDFC and SBI are already trying to offer various services to the customer under one umbrella. This phenomenon is expected to grow rapidly in the coming years. Where mergers may not be possible, alliances between organizations may be effective. Various forms of bank assurance are being introduced, with the RBI having already come out with detailed guidelines for entry of banks into insurance. The LIC has bought into Corporation Bank in order to spread its insurance distribution network. Both banks and insurance companies have started entering the asset management business, as there is a great deal of synergy among these businesses. The pensions market is expected to open up fresh opportunities for insurance companies and mutual funds.

New private sector banks allowed promoting and encouraging competition. PSBs were encouraged to approach the public for raising resources.


Andhra Pradesh Celebrations - 2009


A Core Banker With a royal beginning in the Nizam’s era, SBH has transformed itself into a true, modern and customer centric bank with a spread of 650 branches and pioneering loan products in the state. Today it has financed 96,549 small, medium and micro entrepreneurs with an outlay of Rs 3790 crores in the state.


yderabad is synonymous with the Charminar, the Nizam and the State Bank of Hyderabad the biggest associate of, State Bank of India. The origin of the bank is very interesting and illuminating as it


started off as the central bank to the erstwhile princely State of Hyderabad for managing its currency - Osmania Sikka and public debt, besides functioning as a commercial bank. In 1953, the Bank took over the assets and liabilities of the Hyderabad Mercantile Bank Ltd. In the same year, the Bank started conducting Government and Treasury business as an agent of Reserve Bank of India. In1956, the Bank was taken over by Reserve Bank of India as its first subsidiary and its name was changed from Hyderabad State Bank to the present ‘State Bank of Hyderabad’. The Bank became a subsidiary of State Bank of India on the 1st October 1959 and is now the largest Associate Bank of State Bank of India.

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State Bank of Hyderabad

From such royal beginnings the Bank today is a truly Modern Bank with all the trappings of a Customer centric Bank. Today the Bank has broad-based its operations to other parts of the country. The Bank has 1038 branches, and over 700 ATMs spread over 14 states and 2 Union territories. 289 branches conduct government business (State/Central) while 215 branches maintain currency chests on behalf of the RBI. Further the Bank customers can access over 10,000 ATMs of the State Bank Group enabling customers to draw cash anywhere in the country at any time without any additional expenditure.

Mandal, issued 12578 cards and disbursed Rs.4.48 crores, and so far we have issued 12578 Smart cards under this project. Further, the Bank is going to start disbursement of Social Security Pension (SSP) and National Rural Employment Guarantee Scheme (NREGS) payments through our Business Correspondent by means of Smart Cards in Districts of Karimnagar, Mahabubnagar & Medak, very shortly.

PRIORITY SECTOR ADVANCES Under this category Bank extends financial support to under developed sectors of the economy like agriculture, education, small and medium enterprises etc. The bank has extended

PRODUCTS SBH offers a basket of myriad of products both in deposits and advances catering to all age groups. SBH is interalia. into rural finance, especially credit to agriculture and allied activities, loans for Self Help Groups (SHG), Tractor loans and loans for horticulture development are a few of the prioritized activities. In the retail segment the bank is very active in a lot of activities; of this some are housing, car, other vehicles and retail loans. The Bank has been focusing on financing the MSME sector and in a big way over the last 4-5 years. The bank has several pioneering loan products like Laghu udyami credit card, Doctor plus, Rice mill plus, Mortgage loans and SME credit plus. Kanya vivah suvidha scheme to help people perform their daughter’s marriage. The bank has its fair share of business in financing A. P state’s manufacturing sector especially the small and medium enterprises .

NEW INITIATIVES SBH has implemented technology driven initiatives such as Core Banking Solutions (CBS), Internet Banking, Any branch banking, Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT). Business process Reengineering (BPR) initiatives which focus on improving the quality of customer service, reducing turn around time for sanction and disbursement of loans with several centralized processing centers launched in the last four years in both retail and MSME segments. The Bank has undertaken a pilot implementation of the Financial Inclusion Project in Raiparthy Village of Warangal District by participating in the AP Smart Card Project and disbursed Social Security Pensions (SSP) and Payment of Wages under the National Rural Employment Guarantee Schemes (NREGS) of the Government of Andhra Pradesh (GoAP). The bank has covered 25 villages under the Raiparthy


Renu Challu, Managing Director, SBH Rs.1184 crore under annual action plan against the target of Rs. 1535 crore up to September 2009, representing 77% achievement. The Bank has 11 specialized branches in the state called MSME branches for financing the small and medium enterprises. The bank has financed 96,549 micro, small and medium enterprises with an out lay of Rs.3790 crore in the state up to September 2009. During 2008-09, the Bank has financed 3,718 new tractors amounting to Rs.159 crore and this year upto September, 1,542 tractor loans with an out lay of Rs. 64 crore. The bank has issued 1,93,816 Kisan Credit Cards with an out lay of Rs 525 crore during the year 2008-9 and up to September this year 1,23,839 Kisan Credit Cards with an outlay of Rs. 2997 crore. The Bank has financed 64,445 Self-Help Groups with an out lay of Rs. 593 crore during the year 2008-09 and this year up to September 21,349 Self-Help Groups with an out lay of Rs.248 crore.

Andhra Pradesh Celebrations - 2009


Bank with the Firsts Union Bank of India was the first and probably the only Bank in the country that was inaugurated by none other than the Father of the Nation – Mahatma Gandhi.


ver since the inception of mankind, it has been in the nature of man to always be the first. But the race for being the first does not depend on the size of the association. It rather depends on the culture and innovation of the Organisation itself. Union Bank has managed to achieve a lot of “firsts” in its fold. The journey from 1919 to 2009 has been a mixture of smooth, rough and bumpy,


but on the whole, it was a great leap for Union Bank from a humble background right into the select list of nationalized banks in the first batch in 1969. The bank is now vying to be on the top rung in the next few years. Union Bank was the first Public Sector Bank to introduce several innovative products and services: ♦ First to have total Core Banking Solutions for the bank and

for all Regional Rural Banks sponsored by it. ♦ First to launch mobile banking – U-Mobile. ♦ First to launch Gift Cards. ♦ First to issue ATM/Debit Cards instantly on opening of the account. ♦ First Bank to waive charges of Inter Bank ATM usage.

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Union Bank of India

♦ First to start multilingual Call Center. ♦ First to operate comprehensive Lending Automation. ♦ First to commission Self service passbook printers. ♦ First

bank with online collection of Central Excise and Service Tax. ♦ First with on line trading facility. ♦ First Bank to enter into ‘Bankassurance’ business with tie ups with life and non life insurance partners. ♦ First joint venture for life insurance business with Bank of India and Daichi Insurance of Japan. ♦ First Bank to launch the unique concept of Village Knowledge Center (VKC) for counseling of villagers through its Rural branches. ♦ First Bank to start Girijan Vikas Kendras (GVK) in tribal areas of Andhra Pradesh.

ambit around 60,000 Self Help Groups (SHG) which have extended its finances to the extent of Rs.375 Crores. Commenting on the role the Bank plays in aiding the community, Aftab said, “Union Bank is also a pioneer in the implementation of Financial Inclusion. As a part of Financial Inclusion, the Bank has taken up the responsibility of disbursement of social security pensions (SSPs) and wages under National Rural Employment Guarantee Scheme (NREGS). The payments are made through smart cards based on bio-metric and communication technologies.”

JOURNEY IN ANDHRA PRADESH S. Aftab, Deputy General Manager, stated, “So far as the operations of the Bank in Andhra Pradesh are concerned, it has had been modest, exciting and satisfying for the people working with the Bank and the clients served by them. The Bank entered Andhra Pradesh in October of 1956 with its first branch in Hyderabad at Siddiamber Bazaar and steadily it spread to almost all the Districts of the State.” As of now the Bank has 170 Branches spread in 23 districts of the State with more than 30 RBI Licenses on hand for opening of new Branches in the State. The Credit Deposit Ratio of the Bank which was at 114% during the last fiscal has grown to 121 % during the first six months of this fiscal. The credit to Priority Sector has gone up from 56% to 59% during the said period. Credit to Agriculture constitutes 27% of the total advances in Andhra Pradesh while that to MSME is 21%. The focus of the Bank, especially in Andhra Pradesh is towards industries engaged in manufacturing of Iron & Steel / Textile / Marine Exports/ Pharmaceuticals / Media - Electronic & Print / Science & Bio-Technology / Educational Institutions and I.T. enabled services. Aftab said, “The Bank, in order to reduce the real Turn Around Ttime in sanctioning of credit proposals, has come out with the unique concept of SARAL which was introduced at Regional Offices so that the processing/forwarding/sanctioning of proposals by the Sanctioning Authorities is fast.” The Bank has laid emphasis on Export Advances and the Bank has five ‘B’ Category Branches in the State to cover the Export Business. To give a boost to MSME, the Bank has designated 17-Branches as Business Banking Branches which are well spread out geographically. The Bank has 14 VKCs at various rural Branches in Andhra Pradesh which are a part of the total 200-VKCs across the Country. The Bank has in its


S. Aftab, Deputy General Manager, UBI The Bank has been extending the service in 3253 Gram Panchayats spread over 9-Districts in Andhra Pradesh in association with FINO and ALW. Out of the total targeted beneficiaries of 20.21 lacs, the Bank has already enrolled 14.41 lacs beneficiaries and 12.40 lacs cards have been issued to the beneficiaries.

THE YEAR GONE BY Last year the bank embarked upon the massive project to implement total transformation i.e. Nav Nirman of Union Bank. In the process the bank changed its logo and colour pattern. The new logo of the bank showing the interlocking of two “U”s in red and blue, symbolizes “union” in its design. “To live up to the bank’s new identity and with a view to commit itself to its clientele, the bank has a mission to extend its reach to every district of the country, thereby “Mission 500” is in progress wherein more than 500 branches are to be opened during this fiscal and the progress is steady and visible,” shared Aftab. Andhra Pradesh has RBI authorizations for opening of 30 new branches of Union Bank during few months. Andhra Pradesh Celebrations - 2009


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Andhra Pradesh Celebrations - 2009


Power is vital to accelerate the drivers of economic growth. As Andhra Pradesh is already running on the growth track, the demand for power is increased manifolds in the state. The Industrial and the agricultural sector are the ones which have been demanding more power and would continue to demand more in the future.


t was all a power game for the state since 2004 onwards. During the elections 2004, late Dr. Y.S Rajashekara Reddy had offered free power to the farmers in return to people’s vote to empower him as Chief Minister of the state. For the circumstances prevailing then, the air was against Naidu the then chief minister. The state was hit by draught consecutively during the nine long years of his rule and obviously the farmers were at the worst receiving end with many of them had already committed suicides not able to bear the agricultural debts. The free power scheme of was a blessing in the disguise for the farmers in the state. And they powered Rajashekar Reddy in return for his free power. But the free power scheme has other repercussions as it is straining the state’s exchequer with the ever increasing demand from the agriculture sector in the state. Power in Andhra Pradesh has been of acute shortage with demand shooting up to 173 million units per day as against 154 million units the previous year during the same period. The demand has increased up by 20 percent in the State in the rainy season otherwise which it will usually have a substantial fall. Adding to the growing demand for power in the agricultural sector and with the expansion of economic activities, the demand for energy is also on the rise. To meet the growing demand of electricity, more emphasis was laid on Power Sector during the 11th Plan. The total installed capacity of all the units in the State is 12,339 MW. Realizing the urgency for capacity addition in Power Sector, the State Government has entrusted the State owned A.P. GENCO, the task of capacity addition programme of 8,945 MW, out of which it is proposed to commission 7,109 MW during the 11th Plan period. Transmission and Distribution losses were reduced to 18.51% in 2008 as against 19.82 % in the preceding year. This year (2009-10), the government has provided


electrification to 3,204 habitations and 8, 00, 452 households have been electrified under Rajiv Grameena Vidyudikarna Yojana. In 2009, then Finance minister K Rosaiah’s budget saw a Power subsidy increase to Rs.6040 crores which is quite steep. He had said, “To sustain 9% growth in economy it is necessary to provide for 12% growth in energy generation in Power Sector. Therefore, doubling the generating capacity during next 5-6 years is a must to sustain our planned GSDP growth. As the growth process accelerates, demand for energy may be even more. The power generation capacity of 12,427 MW existing as on 1-4-2009 will witness a whopping 10,992 MW addition during next five years.” This substantial capacity addition will be contributed through supply of natural gas, and hydro electric generating systems mainly along Godavari corridor. As the growth process accelerates, demand for energy may be even more. To sustain 9 per cent growth in economy it is necessary to provide for 12 per cent growth in energy generation in Power Sector. Therefore the government is planning to double the generating capacity in the next 5-6 years to come. And this growth is a must to sustain the planned GSDP growth.

CHALLENGES Despite best efforts of the electricity department in the state to buy power from external sources, the sale has been offered only by three companies—Adani (Gujarat), Tata (Maharashtra) and Jindal (Karnataka) and that too to the tune of 6 mu a day. As the price quoted by them is high, the Transco is shelling out over Rs. 7 crore a day even for 6 mu. Over Rs 140 crore has been spent on the purchases this month so far. Several drawbacks pushed the State into the present predicament. A monsoon lull led to a dry spell in the State. Srisailam hydel complex which, with an installed capacity of 1,670 MW, generated 60 mu daily around this time last year, has been closed to facilitate repairs to apron of the dam. The price of naphtha has gone up to Rs. 68,000 per tonne, forcing the Transco to stop operation of Lanco. Instead, Lanco is run on gas. Consequently, the operation of Vemagiri, to which the gas meant for Lanco was diverted till recently, came to a halt. Further, the existing gas-based projects are operated at half their capacity while three completed projects are kept idle due to gas shortage.

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Andhra Pradesh Celebrations - 2009

Technical Education

The year 2008-09 has seen better days for Technical education in the state. After a long gap 33 new Government polytechnics were started in 17 districts of the state. Administrative sanctions were accorded for 16 more new government polytechnics for the current year 2009-10.


echnical education is the core behind to bring a change in the society—a change that has a modern outlook, a change that incorporates new technology, a change that makes work more easier and risk free. Moving on the same line, the technical education department has initiated few measures to bring a change in the engineering counseling and has employed the online counseling system to facilitate the students to have a free and hassle free engineering admission. Andhra Pradesh is the front runner in the country to bring in new reforms in the technical education sector of the state. The technical education department in the state deals with Engineering Education at Diploma level and above and MBA/ MCA and Pharmacy courses in the state. The department manages Government polytechnics and monitors the level Engineering, Pharmacy, MBA, MCA, private Aided and unaided polytechnics. The department has been striving to generate good Engineers and technicians and personnel with profound knowledge, skill, positive works culture to ensure effective working of our production and service sectors through improved efficiency and productivity. “We have initiated few reforms in the technical education sector and have taken measures to improve the quality of education at intermediate level. As majority of the intermediate colleges and the students were neglecting the intermediate education and concentrating more on Eamcet, we have given 25 percent weight-age to intermediate marks to be added to Eamcet marks for engineering admission” said Mopidevi Venkataraman Rao, Minister for technical education, Andhra Pradesh. To improve quality of Diploma education Government of Andhra Pradesh has issued orders to fill up 488 teaching posts which are vacant in various Polytechnic colleges in the state. APPSC (Andhra Pradesh public service commission) has notified 488 posts for recruitment. The government


accorded administrative sanction for construction of Hostel buildings worth Rs. 2027 Crores for Government Polytechnic, Proddatur as a part of its initiative to usher the technical education. The government accorded administrative sanction fro Rs. 2.10 crore for construction of new building and released Rs. 100 lakhs under Rajiv Palle Bata for buildings worth Rs. 2.27 crores for government polytechnic, Obulavaripalle and the work is being executed by APHMIDC, Kadapa. “We have established nearly 40 new Government polytechnic colleges in the state and have introduced the online system of counseling to facilitate free and fare admission for the students to various technical and engineering courses in the state. At large we have successful with the online system of engineering counseling as we have filled 1, 70,000 engineering seats through online method” said the minister. To recruit potential contract lectures Government issued orders enhancing the remuneration to contract lectures from Rs 8000/- to Rs. 10,000 in urban areas and from Rs. 9000/to 11000 in rural areas. The government issued orders permitting the introduction of Second Shift in 11 Government polytechnics and 22 private polytechnics during 2008-09 and 16 government polytechnics during 2009-10. The government accorded administrative sanctions for starting 33 new government polytechnics during 2008-09 and 16 government polytechnics during 2009-10. The government sanctioned 692 one year component posts including Non-teaching for 32 newly established Government polytechnics. NABARD sanctioned a loan amount of Rs 2.27 crores for construction of additional hostel accommodation and additional class rooms and laboratories for GMR polytechnic at Srisailam. Orders were also issued by the government to establish 19 polytechnics in Taluks where there are no Polytechnics under inceptive polytechnic scheme.

ACHIEVEMENTS During the last one year from 2008-09 to 2009-10 the intake of students have been increased from 42235 to 49405 students. The numbers of colleges too have been increased from 187 in 2008-09 to 207 in the present year. Of which 160 colleges belong to the technical education while the remaining 47 are pharmaceutical colleges.

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Technical Education

The year wise intake into the polytechnics colleges is depicted in the table show below.


No. of Polytechnics

meant for acquiring land for the institution. One engineering college each is established at Proddatur of Kadapa district under Yogi Vemana University at Tirupathi, S.P. Mahila University at S.K University and at Nagarjuna University.




















Poly: 160 Pharma: 47 Among the 160 polytechnic colleges, 112 are Government colleges, while 4 are aided colleges and the remaining 44 are private or unaided colleges. The intake in the engineering, B. Pharmacy/MBA/MCA colleges have also increased many folds during last three years. In the year 2007-08 there were about 118993 intakes in 337 Engineering Colleges throughout the state. This number was increased to 176512 in takes in 535 colleges in the year 2008-09. The intake in B. Pharmacy was increased from 13319 in 2007-08 to 15395 in the year 2008-09, similarly the number of pharmacy colleges have also increased from 229 to 258 during the same period.

Faculty training Training has been given to 37 newly promoted principals to improve the administrative skills. 300 lectures were also provided training gin instructional design and development systems and training would also be given to 600 new lectures in the next 3 months. English communication labs have been setup in 60 government polytechnics in the state. 1126 latest computers have been supplied in 61 government polytechnics. Modernization & Removal of Obsolescence Scheme (MODROBS) The Government Polytechnics are receiving funds from AICTE, New Delhi for procurement of Modern and sophisticated equipment for the laboratories to train the polytechnic Students, during 2008-09 the funds received are 2.30 crores by (25 Polytechnics. This year proposals are submitted for more than 18.00 crores. Technical Education Quality improvement Programme (TEQIP) TEQIP is an Externally Aided Project (EAP) world bank Assisted Project for the quality improvement programme and is implemented in (11) engineering colleges and Government Polytechnic.

During the year 2008-09 there were 653 MCA colleges which had an intake of 44485 students in the state. While there were 455 MBA colleges which had enrolled 32858 students for the year.

The TEQIP-I Project with an Outlay of Rs. 142.62 Crores Commenced in 2004- 05 was completed on 31-3-2009. The state was adjudged as the best in implementation of the Project in Joint Review Mission(JRM).


The TEQIP-II Project with an anticipated Outlay of Rs. 218.00 Crores is likely to commence from 2009-10. The project is proposed to be implemented in 200 engineering colleges in the state.

In a new initiative for the first time, the Singareni collieries company Ltd has established a polytechnic college at Mancherial in Adilabad district. Another exclusive polytechnic Sri Venkateshwara Polytechnic was established by Tirumala Tirupathi Devasthanam (TTD) for disabled persons. One more feather in the cap of technical education was the establishment of Premier Indian Institute of Technology, Hyderabad at Kandi in Medak district. The admissions were taken up from the year 2008-09. An amount of Rs. 19.00 crores were released to the IIT for the year 2008 which is


“We have taken stringent measures to see that all the Engineering colleges follow the norms and standards stipulated by the central government and the technical body AICTE. We will spare no one if found not complying with the standards� said Rao.

Andhra Pradesh Celebrations - 2009

Technical Education

OTHER IMPORTANT SCHEMES Remote and Interior Area Development (RIAD) Scheme The Department for the first time is implementing the scheme of RIAD in (4) Government Polytechnics located in Remote areas i.e., Bhadrachalam, Kothagudem, Srisailam and Paderu for the infrastructure Development Since 200809.The budget allotted during the year 2009-10 is Rs. 1.00 crores for the infrastructure Development.

Mopidevi Venkata Ramana Rao, Minister for Technical Education Pratibha Scholarships The Department is implementing Pratibha scholarships scheme as a Nodal department. Top rankers in Engineering ,Medicine ,MBA/MCA, ECET(FDH), CEEP and all selected candidates from state of Andhra Pradesh for National level institutions such as IITs, IIMS, BITS (Pilani), AIIMS, JIPMER, AFMC etc are paid a scholarship of Maximum of Rs.20,000 each. An amount of Rs. 50 lakhs is allotted during 2009-10. This Department coordinates with Board of Apprenticeship Training (BOAT) an autonomous body under Ministry of Human Resources Development, Government of India through its Southern Regional Office at Chennai and various organizations/industries for providing apprenticeship training to graduates and diploma holders including sandwich courses to improve their skills to fit into the best production centers in the country. For the first time in the country the concept of walk-in interviews bringing together organizations and candidates


for selection of apprentices was introduced in Andhra Pradesh. 3405 placements (1214 Diploma, 2191 Graduates) were provided during 2008-09, an amount of Rs. 0.05 crores has been provided in the Budget for 2009-10. “This year irrespective of caste, the government has taken a bold decision to reimburse the tuition fee to all the eligible students and thus enable higher education to all students in the state. For this, we have sanctioned a woofing amount of Rs. 2,500 crores in the budget for the current year� said the Minister. Department of Technical Education is implementing Rajiv Udyoga Sri training programmes in our Polytechnics utilizing the infrastructure facilities available for the benefit of unemployed youth. The scheme aims to improve the skills and their employability. The No. of candidates Trained are 7575 and placements are shown for 4838 out of a Target of 10000 during 2008-09 and 3406 candidates are undergoing training. The programmes covered under training are House Wiring and Repair of Domestic Electrical Appliances, Computer Hardware, Computer software, TV repairing, Plumbing, Refrigeration & Air-conditioning, Two wheeler servicing, Modern Surveying on Total station, Tailoring & Embroidery, Basic Bakery, Machine Embroidery, Zardosi Work, Knitting and Fabric Painting, Beautician etc. The Government of A.P. have allotted budget for 21st Century Gurukulams, a novel project for the year 2009-10 to the extent of Rs. 5 Crores. The Budget allotted to 3 new Engg., Colleges under J.N.T.U namely, Karimnagar & Vizianagaram for 2009-10 is Rs 5 Crores. Budget allotted for the third phase of JNTU Engg., college Pulivendula for the year 2009-10 is Rs. 5 Crores. The Budget allotted for Construction of Buildings for New Government Polytechnics and New additional accommodation in Government Polytechnics is Rs. 0.50 Crores for the year 2009-10. The Budget Allotted for New Government Polytechnic at Obulavaripally, Kadapa and Eluru, West Godavari Districts (25% Matching state share) is Rs. 0.45 Crores.

PRATHIBHA SCHOLARSHIPS Government has sanctioned Prathibha Scholarships Scheme to promote quality and excellence in Education. Under this scheme, meritorious students who excel in public examination/ Entrance Test from Class 7th onwards and students who belong to Andhra Pradesh State and joined in National Level Institutions are given scholarships to pursue their studies. An amount of Rs 0.50 Crores is allotted for Prathibha Scholarship Scheme in the budget for 2009-10.

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Andhra Pradesh Celebrations - 2009

Andhra Pradesh Government under the benevolent and dynamic leadership of Dr. Y.S. Rajasekhara Reddy provided special focus on the development of education; strengthening the social infrastructure apart from developing physical infrastructure with particular focus on rural areas and through financial inclusion particularly to women and the other vulnerable sections. In the context of economic restructuring there is a new role to governments as facilitators and social welfare agents. However, in countries like India given the persisting inequality of opportunities, both Social and economic, Third World governments are required to play a proactive role not only to build capacities but also to ensure that these capacities are exploited and in the process improve the living conditions of people through wider participation both in social and economic activities. The positive and constructive role of the government of Andhra Pradesh during the last 65 months from the higher education perspective is analysed in a way to pay homage to Dr. Y.S. Rajasekhar Reddy.

higher educational opportunity for want of resources. Fee reimbursement to students whose parental income is below Rs.1 lakh is an initiative that is getting the attention of the national government apart from other states.

HIGHER EDUCATION IN THE STATE Reddy stated, “Andhra Pradesh Government is probably the one and only State Government in the country during the post reform period to have strengthened the university system through a scientific rationalization exercise providing them additional block grants besides making recruitment of faculty possible in the existing universities; something which was denied for over a decade.” The block grants for the universities in the period 2004-08 were raised by over 80 percent and over 1000 teaching positions were filled in during this period. New Universities were set up, both conventional and specialized and new programmes to improve employable skills particularly to the rural youth were launched. A.P. today

GROWTH UNDER DR. Y.S.R. REDDY 2004-09 will be remembered by the people of Andhra Pradesh for the pro-poor policy and strategy and also for the development orientation building both physical and social infrastructure through new initiatives and strengthening of existing programmes. “Andhra Pradesh Government under the benevolent and dynamic leadership of Dr. Y.S. Rajasekhar Reddy provided special focus on the development of both education and hea1th, having realized that sustainability of development and the provision of economic opportunities to a wider and larger proportion of people depends on strengthening the social infrastructure apart from developing physical infrastructure with particular focus on rural areas and through financial inclusion particularly to women and the other vulnerable sections,” expressed K.C. Reddy, Chairman for AP State Council for Higher Education. In the field of higher education there was a silent revolution in terms of quantitative expansion; quality improvement in higher and professional education to address national and global challenges. And more importantly access to higher and professional education has been made highly inclusive to ensure that no willing and eligible student is denied of


Prof. K.C. Reddy, Chairman, AP State Council for Higher Education has 34 universities and the concept of language lab is a common site even in the government colleges. The State Government after a gap of over decade and a half started new Degree and Junior colleges in the rural and tribal areas to improve OER through better access. New polytechnics were also started during the five year period. The State Government has taken a unique initiative to empower rural youth by starting the Rajiv Gandhi University for Knowledge Technologies with three campuses in the three regions of the state to provide quality professional education in information technology and other emerging disciplines.

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Andhra Pradesh Celebrations - 2009

It was Dr. Y.S.R Reddy’s vision to ensure that the poor and the destitute in the state got benefits that would bring about their development and welfare. He introduced many initiatives, schemes and programmes to enhance the quality of life for the backward classes. The Andhra Pradesh Scheduled Caste Cooperative Finance Corporation (APSCCFC) is carrying forward his legacy by supporting the welfare of scheduled castes. Social Welfare is dedicated to the integrated and overall development of Scheduled Castes to strive for their educational advancement; help in their socio- economic development; ensure welfare and protection; provide financial assistance for creating income generating assets; offer training programmes for upgrading skills leading to self/wage employment; empower women self-help groups for taking up economic support activity; and to plug the critical gaps of finance in economic support schemes.

onwards. As per Government decision, the AP Scheduled Castes Finance Corporation is implementing Annual Action Plan for the year 2008-09 with a target to assist 1,48,405 beneficiaries with an outlay of Rs.337.22 crores.

IMPLEMENTATION OF SC ACTION PLAN 200910 ♦ Under SC Action Plan 2009-10, the plan targets to provide

assistance to 2,40,194 beneficiaries with an outlay of Rs.386.23 crores. As on 30th September 2009 identification is done for 70,120 beneficiaries with an outlay of Rs 181.20 crores and 27380 units are grounded with an outlay of Rs 34.34 crores. ♦ Vulnerable

Groups like Safaai Karamcharis, Flayers and Tanners, Cobblers, Bonded Labour, Jogins etc, are given due preference for rehabilitation in this Action Plan.

♦ In case of Government assigned lands and Lands Purchased

by District SC Societies, 100% grant is provided for irrigation schemes.

A vast majority of the SC families eke out their livelihoods from Agriculture - mostly as agricultural labourers and some from farming operations. Allied occupations such as Dairy, Piggery, Sheep & Goat Rearing, Poultry etc., also provide livelihood to a substantial number of scheduled castes. Many landless scheduled castes have migrated to urban and semiurban areas fining jobs as construction labourers and in the tertiary sector. “The Andhra Pradesh Scheduled Castes Coop. Finance Corporation has been implementing the Economic Support Schemes through its affiliated District Societies, located in each District, since 1974, for the benefit of Scheduled Caste families in the State. Over the years, the AP SCCFC took up a number of Economic Support Schemes by obtaining Central Share of Equity from Central Government and State Share of Equity from AP State Government and borrowing loans from National Apex Corporations like, NSFDC and NSKFDC, New Delhi and also utilizing Special Central Assistance to SCSP as Subsidy,” said V. Nagi Reddy, Principal Secretary, AP SCCFC. Government of Andhra Pradesh took a decision that the Welfare Corporations should not be lending agencies and should act as Facilitators by giving 50% or Rs.30,000 whichever is less as subsidy on the unit cost from 2008-09


V. Nagi Reddy, Principal Secretary, AP SCCFC ♦ A provision is made to implement PAVALAVADDI to those

beneficiaries who make prompt repayments of loans taken from Commercial Banks, as an incentive. ♦ Since majority of the SC poor eke-out their livelihood as

agricultural labourers, 4,600 units of Milch Cattle units, each unit with Rs.70,000 is provided in this Action Plan for regular income to them. ♦

Special provision is made to rehabilitate 841 released Scheduled Castes Prisoners from Jails on a Mission Mode to bring them into main stream of life. 97 Andhra Pradesh Celebrations - 2009


Andhra Pradesh Celebrations - 2009


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Event Diary 1ST NOVEMBER 2008 - 1ST NOVEMBER 2009 Few events in life make history. These are events which have immense significance in shaping the future, be it a person, his aspirations…or a country…a state and its future. We present few events that marked the journey of Andhra Pradesh in the last one year. These were events which for some reason or the other will stand out in the near future and help shape the state’s development.

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Event Diary

NOV 1, 2008

NOV 30, 2008



As per Government data, the State achieved an industrial growth of 8.26 per cent in 2007-08 and an overall growth GSDP growth of 10.64 per cent. Andhra Pradesh emerged as the fifth largest economy in the country with potential to attract Rs 10 lakh crore investments by 2012.

Andhra Pradesh government decided to raise a new security force in the Police Department on the lines of the National Security Guards (NSG). The State Security Guards (SSG), as it will be called, will be similar to the NSG in terms of high benchmarks for recruitment and training.

NOV 11, 2008

DEC 10, 2008



Andhra Pradesh Chief Minister Y S Rajasekhara Reddy had a miraculous escape while he was returning from a trip to Mahbubnagar district when the new AW 139 helicopter developed a major technical fault mid-air.

Prime Minister Manmohan Singh had promised that “justice” would be rendered to Andhra Pradesh in its Godavari river water dispute with Maharashtra on the construction of the Babli reservoir.

DEC 15, 2008 NOV 12, 2008


EMPLOYMENT AGE LIMIT To benefit the unemployed the Andhra Pradesh government decided to relax the upper age limit by five years across the board for all categories. The age relaxation will cover four specific recruitments to be undertaken by the Andhra Pradesh Public Service Commission to fill 4,350 vacancies.

The National Rural Health Mission (NRHM) is impressed with the ‘supplementary nutrition model’ implemented in Andhra Pradesh for pregnant women and it has suggested to other States to emulate it for tackling maternal malnutrition.

JAN 7, 2009 NOV 24, 2008

OIL DISCOVERY BY ONGC State-run Oil and Natural Gas Corp made a significant oil discovery in an eastern offshore acreage in Andhra Pradesh it had got from government on nomination basis. ONGC struck oil at Block IG at a water depth of 225 meters in well G-4-6, 15 km. off Yanam coast in Andhra Pradesh.


GOING FOR A NUCLEAR PLANT Giving a boost to power generation, the Andhra Pradesh government will soon set up a nuclear power plant in the state to produce 2,000 MW of power. “Nuclear Power Corporation of India (NPCIL) and the state government-owned AP Genco will soon enter into a partnership agreement to set up the plant,” Minister of State for Power Jairam Ramesh said.

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Event Diary


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JAN 30, 2009

MAY 16, 2009



The Andhra Pradesh Government sought a Rs 1,191-crore loan from the World Bank for improving infrastructure and other facilities in urban areas.

FEB 18, 2009

The newly-elected Congress Legislature Party in Andhra Pradesh to elect its new leader on May 19th. Y S Rajasekhara Reddy would formally be re-elected as the CLP leader, Congress sources here said. He will take oath as chief minister at LB Stadium on May 20.

OUTSTANDING APEPDCL Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL) was awarded Gold Shield, instituted by the Ministry of Power, for its outstanding performance for the year 2007-08. Two of its Mandal Mahala Samakhyas were also awarded Gold and Bronze Shields for meritorious performance during the year 2007-08.

FEB 27, 2009

FUNDING FOR DISASTER MITIGATION The World Bank cleared a Rs. 511-crore disaster mitigation project for Andhra Pradesh to enable the government to take up various works along the State’s 1,030-km long coastline to protect life and property during cyclones.

MAR 25, 2009

CONGRESS CAMPAIGN LAUNCHED Dr Y.S. Rajasekhara Reddy launched the Congress’ election campaign in the state.

MAY 17, 2009

JUBILATION IN CONGRESS CAMP The Congress party, which bagged 157 seats in the 294-member assembly and 33 out of 42 Lok Sabha seats without any alliances, performed really well even in the Telangana region, where it faced a strong united opposition comprising the Telugu Desam Party (TDP), Telangana Rashtra Samiti (TRS) and the two Left parties.

MAY 20, 2009

YSR’S MAGIC Powering the Congress to a spectacular win in the assembly and Lok Sabha elections Andhra Pradesh, Y S Rajasekhara Reddy, who was sworn in as the Chief Minister for a second consecutive term, has emerged as an unassuming, crafty leader.

MAY 25, 2009 APR 16, 2009



Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy constituted a 35-member cabinet, inducting 20 new faces and dropping four ministers who were part of his earlier ministry.

Polling began for the first phase of simultaneous elections to the Lok Sabha and state assembly in Andhra Pradesh.

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Event Diary

MAY 27, 2009

JULY 14, 2009



‘Chevella Chellamma’ is Andhra Pradesh chief minister Y S Rajasekhara Reddy’s adopted sister. Sabita Indra Reddy, 46, was given the allimportant post of state’s home minister.

The Andhra Pradesh government decided to call for fresh global tenders on 16 July for the ambitious Hyderabad Metro rail project, after terminating on 7 July the contract it awarded to Maytas Infra Ltd-led consortium to do this.

MAY 29, 2009

NTPC’S MEGA INVESTMENT NTPC, the country’s largest power producer, set to invest around Rs 10,000 crore for two of its power plants in Andhra Pradesh and Tamil Nadu. The money will be used to augment capacity by 1,000 mw in the Simhadri plant in Andhra Pradesh and create fresh capacity of 1,000 mw in the Vallur plant at Tamil Nadu by 2010.

AUG 2, 2009

MORE MARINE POLICE STATIONS Andhra Pradesh government would set up 15 more marine police stations in the coastal districts of the state.

SEP 4, 2009

YSR DEAD Dr Y S Rajasekhara Reddy body was retrieved from the site atop a hill in the thickly forested area of Nallamala where his helicopter crash-landed.

JUNE 3, 2009

TRIBAL HEALTH PLAN Aimed to create awareness on HIV/AIDS prevention among tribal population of the State, Andhra Pradesh is all set to launch a ‘Tribal Health Plan’.

OCT 2, 2009 JULY 11, 2009

CHANDRAYAAN LAUNCH FROM AP The Chandrayaan-1 spacecraft blasted off from a space centre in southern Andhra Pradesh to embark on a two-year mission of lunar exploration. India’s national television channels broadcast the countdown to the launch live.

JULY 13. 2009

ABHAYAHASTHAM - A BOON TO WOMEN The state government will start enrolling close to one crore women who are associated with SHGs into a pension scheme - Abhayahastham. The scheme ensures that every woman who is a SHG member will receive Rs 500 as pension from the age of 60 till her death.


MOU FOR PCIPR Andhra Pradesh signed a memorandum of understanding with the Union government for a proposed petroleum, chemicals and petrochemical investment region, or PCPIR.

OCT 5, 2009

ROSAIAH SEEKS ASSISTANCE Andhra Pradesh CM K. Rosaiah seeks central assistance of Rs6,000 crore to carry out flood relief works in the state.

OCT 9, 2009

MANMOHAN’S AID Prime Minister, Manmohan Singh announced Rs 1,000 crore as flood related relief .

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