Visakhapatnam is a coastal, port city, often called “The Jewel of the East Coast”, situated in the Andhra Pradesh, located on the eastern shore of India, and nestled among the hills of the Eastern Ghats and facing the Bay of Bengal to the east. It is the 2nd largest city of AP and one of the fastest growing cities of Asia[1]. Some of the advantages of the city include the following:-

  • Home to the Eastern Naval Command of the Indian Navy
  • Positioned as a “Gateway” to one of the fastest growing economies & knowledge industry centers
  • Excellent record of economic growth and good governance
  • Good road & railway connectivity to major Indian cities
  • Good connectivity with ports and airports with international connectivity
  • Access to latent overseas talent as well as qualified domestic labour pool at comparatively competitive labour costs.

 

Given its advantages, GoAP aspires to position Visakhapatnam as Asia’s Clean Commerce Capital for the 21stCentury suggesting the city to be characterized by growth, vitality, cleanliness, health and beauty. Greater Visakhapatnam is envisaged to be charting a new path for growth in South and Southeast Asia by amplifying the region’s logistic hub.

[1] Visakhapatnam – A coastal paradise – Publication by APIIC

Visakhapatnam is one of the most populous district of AP. A demographic snapshot is given below

Description 2011 2001
Population 4,290, 589 3,832, 336
Average Literacy 66.91 59.96

As of 2014, around 47.45% of the population of Visakhapatnam lives in urban regions of the district and literacy rate is around 82%.

The industrial activities are one of the prime economic activities of the city. The total number of industrial units in the city stood at 1,775. The total investment of this sector is about INR 8,022 cr. Major public sector undertakings like Visakhapatnam Steel Plant, National Thermal Power Corporation, Hindustan Petroleum Corporation, Hindustan Zinc, Hindustan Shipyard, Bharat Heavy Plates and Vessels, Hindustan Ship Yard, Bharat Heavy Plates, Vessels factory are located in and around the city.

  • Gross District Value Added (2014-15) – INR 57499 crore (2nd in AP)
  • Gross Value Added of Industry Sector (2014-15) – INR 22641 lakhs (Highest in AP)
  • Gross Value Added of Services Sector (2014-15) – INR 28044 lakhs (Highest in AP)
  • Per capita income – INR 124717 (Highest in AP)
  • Data for large and mega industrial projects and MSME in Visakhapatnam:-

 

Data Large and Mega Industrial projects in to production (till Sept 2015) MSME established (2014-15)
Units 194 517
Investment (INR Crore) 17174 488.8
Employment generated 71117 11378

Table 2:  Data for Large and Mega Industrial Projects

 

  • Status of SEZs in Visakhapatnam up to 30thSeptember 2015

 

No. of SEZs Employment Value of Production Investment including FDI Physical Exports Imports
8 43891 3145.3 Cr 12867.7 Cr 2393.3 Cr 2011.98 Cr

Table 3: SEZs in Visakhapatnam

The state and city governments have made concerted efforts to make Visakhapatnam the 2nd economic development hub in the areas of ITeS. Mahindra Satyam, HSBC, IBM, Wipro, Kenexa, Symbiosis, etc. are some of the prominent IT/ ITeS players who have already established their facilities in this city. Some of the recent projects supported by the government include up-gradation of the local Airport, setting up of VSEZ, Simhadri Power Plant, and Special Economic Zone.

As per units registered with STPI in Visakhapatnam, the district witnessed a 32% rise in the value of exports generated by the IT/ ITeS industry and a 41% rise in employment. This points to the significant potential of the industry in Visakhapatnam which, if tapped, can be a significant contributor to the economic development of the state. Visakhapatnam contributes to approximately 85% of the revenue share for IT in AP. The city also houses 75% of the total IT manpower in AP (16,988 employees in 126 companies). Hence, the setting up of an ITIR in Visakhapatnam is a highly needed initiative in this direction to further strengthen the existing IT industry in the region.

a) In its endeavour to support the growth of IT/ ITeS, BPM and ESDM industry in Visakhapatnam, the GoAP has undertaken several infrastructure projects to enable companies to start operations in the city. These include:

  • Signature Towers with 9 lakh square feet of built up area in hill 3 of Madhurwada IT SEZ
  • Integrated IT township in Kapuluppada (1351 acres) by APIIC
  • Incubation Tower at Rushikonda by APIIC
  • IT Tower for promoting domain specific innovation at Siripuram developed jointly by VUDA and Software Technology Parks of India (STPI)
  • Millennium Towers with 3 lakh square feet of built up area in hill 3 of Madhurwada IT SEZ
  • Society for Applied Microwave Electronics Engineering & Research (SAMEER) R&D complex at Gambheeram by the Government of India
  • Electronic Manufacturing Cluster planned in 128 acres of land at Gurrampalem

b) IT related activities such as events, awareness sessions, Software solutions & Products Display Center etc. in the city will open up business opportunities between the global IT buyers and the Indian IT fraternity, and offer a platform for collaboration, joint ventures, technology transfer and strategic alliances for companies. It would also offer greater interaction with global IT buyers offering extensive business leads into the new IT market and act as platform that will open doors to a new world of business opportunities for the Andhra IT fraternity.

c) Visakhapatnam Smart City

Visakhapatnam was one of the first 20 cities selected to be developed as a smart city under the Smart City Mission of the Ministry of Urban Development. The aim is to strengthen the overall urban infrastructure of the city, improve the lives of the citizens and boost economic development. Investments are expected in the following areas which will provide a supporting ecosystem for IT firms that plan to start operations in the city.

  • Utilities – Electricity and water supply
  • Sanitation and solid waste management
  • Efficient public transportation and urban mobility
  • Robust IT connectivity
  • Safety and security of citizens
  • Affordable housing

 

 

d) Andhra Med Tech Zone, AMTZ

It will establish Asia’s 1stdedicated medical device park in an area of 226 acres at Visakhapatnam. The park will provide for modern state of art common facilities such as specialised laboratories, warehousing, testing centre apart from 100 to 150 independent manufacturing units, each in a built-in ready to use area of 0.5 to 1 acre each.

  • Sound IT Infrastructure

 

Visakhapatnam offers state-of-the-art IT infrastructure provided by Incubation Centre at IT SEZ Hill No. 3. The project which is under construction is Millennium Tower at IT SEZ Hill No. 3. Moreover, the proposed projects are Signature Towers at IT SEZ Hill No. 3, Integrated IT Township at Kapulapadda, Electronic Manufacturing Cluster (EMC) at Gurrampalem, IT Park at Resapuvanipalem, IT Tower at Harbor Park and IT-SEZ in Gambheeram, Madhurawada, IT SEZ, Hill No. 1, 2 & 3.

 

  • Large Technology and Talent Pool

 

Visakhapatnam is home to two (2) Universities – AU and GITAM – both of which are accredited with ‘A’ grade by NAAC[1]. GITAM University offers 118 programmes[2] and AU offers over 160 programmes[3] in undergraduate, postgraduate and doctoral levels in Technology, Science, Pharmacy, Management, International Business and Architecture. In addition to this, there are over 30 engineering colleges in the district and over 100 other degree colleges.

 

  • Social Infrastructure

 

  • Education

Visakhapatnam has excellent educational facilities at all levels. The district has 41 schools affiliated to the CBSE which include Kendriya Vidyalayas and Delhi Public School[4] and many UG and PG colleges in the areas of engineering, commerce, science, arts and management. IIM Visakhapatnam has commenced operations out of the AU campus with work underway on its permanent campus in Gambheeram. There are further investments planned in higher education through the proposed Knowledge City in Sabbavaram that will host the following:-

  • Petroleum University
  • Indian School of Mines, ISM
  • Indian Maritime University, IMU and
  • National Institute of Pharmaceutical Experimental Research, NIPER

[1] National Assessment and Accreditation Council website – Accessed 20th June 2016

[2] GITAM University Website http://www.gitam.edu/GITAdmissions.aspx?title=4471 – Accessed 20th June 2016

[3] Andhra University Website http://www.andhrauniversity.edu.in/courses.html – Accessed 20th June 2016

[4]http://www.icbse.com/schools/area/visakhapatnam – Accessed 22nd June 2016

  • Healthcare

Vishakhapatnam has a well-developed healthcare infrastructure with many plans for further development to serve as the focal point for healthcare in the state in the years to come and the city is expected to be developed as a hub for medical tourism in the state. The AP Government, in April 2016, inaugurated “VIMS” at Vishakhapatnam with a plan to develop it into a super speciality hospital on the lines of AIIMS, Delhi.  Also, the foundation stone for a 300 bed ESI hospital was constructed at Sheelanagar in the city.

The Government has plans to build a Super Speciality Block in the city’s famous KGH with a capital cost of INR 75 crore primary targeted to benefit the BPL and economically backward people.

Vishakhapatnam is the spot for the development of a 66 acre health city which will host around 33 hospitals. A snapshot of the major hospitals in Visakhapatnam are:-

 

Hospitals Description
King George Hospital KGH is Coastal Andhra’s only state run tertiary care hospital. At present, the hospital has 1037 beds and 250 super speciality beds and caters to around 1500 patients every day.
Seven Hills Hospital Around 60 specialists and 600 paramedical staff. Over 250 IPD rooms across different categories. Accredited to NABH, NABL and AHA
CARE® Hospital, Ramnagar 180 bed multi-speciality hospital with NABH and NABL accreditation
Apollo Hospital Multispeciality hospital with 250 bed facility in Apollo Hospitals, Health City, Arilova and 110 bed facility in Apollo Hospitals, Ramnagar
Indus Hospital Multi-speciality hospital with NABH and NABL accreditation
MGCH & RI MGCH & RI was established as a CoE for comprehensive cancer care and prevention and is one of the largest cancer centres in India. The hospital is NABH accredited.
Queens NRI Hospital NABH accredited 380 bed acute-cum-critical care referral hospital with CoE in oncology, cardiology, neurosurgery and nephrology

Table 4: Major Hospitals in Visakhapatnam

  • Entertainment and Tourist Spots

 

In 2015, Visakhapatnam attracted around 1.15 crore tourists, of which 1.14 crore were domestic tourists and more than 69,000 were foreign tourist.

 

  1. Prominent tourism destinations in the city are:

 

Arukku Valley Borra Caves Kailasagiri
Ramakrishna Beach Submarine Museum Dolphin’s Nose
Simhachalam VUDA Park Ross Hill
Visakha Museum Yarada Beach Mutyalampalam
Rushikonda Totlakonda Tyda
Bheemili Beach Bheemunipatnam Victory at Sea

Table 5: Prominent Tourist Destinations

 

  1. Pipeline Projects by GoAP

GoAP is developing Vishakhapatnam as a Tourism Hub which would further increase the number of tourism arrivals, increase revenues in the tourism sector and provide sources of entertainment for the general working population of Visakhapatnam.

 

Tourism avenues like sea plane and sea based tourism, heli-tourism, para-sailing, water sports, amusement and water parks are being envisaged, along with cultural activities like Kacheris – traditional singing, cinema, music, traditional dances, and exhibitions of local crafts like Etikoppaka toys and magic programs at key attractions like beaches.

 

Licenses for offshore and onshore pubs and restaurants running 24/7 can further boost the entertainment avenues in the district.  The GoAP is also focused on developing basic facilities like public toilets and clean drinking water at tourism spots and interconnectivity between tourism spots by special buses, Hop-on Hop-off tourism. Facilities like science museum, planetarium and observatory, golf courses, zoo and aquariums could further enhance tourism growth.  Interactive Kiosks at key tourism spots and multilingual signage across the city could provide ease in tourist visits and increase in tourist spending at Visakhapatnam.  Some of the key projects in pipeline that can provide an impetus to the tourism and entertainment sector include:

 

  • Visakhapatnam – Bheemili Four Lane Beach Road Project
  • Convention Center at Adivivaram, Simhachalam
  • Visakhapatnam Urban Development Authority (“VUDA”) Cultural Complex at MVP Colony
  • Mega Convention Center Project at Madhurawada on 240 acres of land comprising of a convention centre, exhibition halls, five star hotels and a commercial complex. This region will also have an integrated sports complex
  • Zoo Park, Safari Park, Sea Water Aquarium in Visakhapatnam
  • Vistadome Rail Coaches for Visakhapatnam – Akuru Valley route
  • Development of Kambalakonda Wildlife Sanctuary
  • Integrated Sports Complex in Visakhapatnam
  • Introduction of Small Luxury Ships, Cruise Ships to Andaman and Singapore
  • Development of Passenger Jetties for Sea Tourism
  • VUDA City Central Park and VUDA Children’s Arena
  • INS VIRAAT – Luxury Hotel and Museum Project

 

  • Residential

Residential activity in Visakhapatnam was primarily centred on Siripuram, Beach Road, Lawson’s Bay, Waltair Uplands etc. but in recent times, has progressed to other areas like Seethammadhara, Simhachalam, MVP Colony and HB Colony. This shift in residential pattern has been triggered by the demand from IT/ ITeS led employment generation in the district. With increasing population, land value has escalated in the established residential hubs and the growth of IT/ ITeS segment in Madhurawada – Pendurthi – Gajuwaka region led to a gradual transition of real estate activity from the central areas to the suburban areas, and subsequently to the peripheral areas of the city. The city has also witnessed plenty of medium and large scale residential developments with the entry of several reputed local and national developers.

 

  • Hospitality

The hospitality landscape of Visakhapatnam comprises of a mix of local and international brands that cater to a diverse client base. Renowned operators like Novotel, Taj Group of Hotels, Sheraton, The Park, ITC etc. have a presence in Visakhapatnam along with local players like Daspalla Group, Green Park and Dolphin Hotels to name a few. Other prominent operators like Marriott and Keys are expected to commence operations in Visakhapatnam soon. While tourism is the main driver for the hospitality industry in Visakhapatnam, it will provide the necessary support ecosystem for the IT-BPM and ESDM industry to host business travelers from MNCs as well as act as a venue for conventions, conferences and other business events.

The key provisions of gazette notification are:-

  • The State government will initiate the proposal for ITIRs.
  • State government would have to ensure availability of land and provide all physical internal infrastructure including power, water, road and sewerage.
  • A developer entity (Government/ private/ PPP) would be identified by the State Government through a transparent mechanism for developing, financing, operating and managing the infrastructure and other facilities in the ITIR.
  • Appropriate & adequate residential facilities with focus on housing for EWS and urban poor should be incorporated to prevent mushrooming of slums.

 

According to the gazette notification of GoI for ITIR and the Minutes of meeting[1]held on 22ndApril 2016 with regards to amendment in lTlR Policy, 2008, the ITIR delineation should be based on the following criteria:

  • Self-contained integrated townships to provide infrastructure for IT/ ITeS and Electronic Hardware Industry
  • Minimum area of ITIR should be 40 Km² i.e., 10,000 acres
  • At least 40% area should be processing zone i.e., 16 Km² or 4,000 acres
  • At least 20% area should be in possession of the State Government i.e., 8 Km² or 2,000 acres
  • ITIRs may include SEZs, industrial parks, export oriented units, existing settlements/ industries or new townships.
  • Infrastructure created in ITIR may have features of smart cities, however no separate provision for financing Smart City features in ITIRs under the Smart City Scheme would be provided.

1.1.Delineated Area

The concept of Visakhapatnam ITIR has been developed considering a mix of brown-field and green-field development foreseeing of existing developments and vacant land with potential for growth in future. It is proposed to be integrated with the existing and proposed settlements and with natural features.

The area for ITIR has been delineated centered on the existing developments, vacant land available with the government, declaration of completed and upcoming projects such as IT SEZ, EMCs, Logistic Parks and integrated IT townships etc.

Based on site visit, data provided by APIIC and discussion with various government officials, the following areas appear to be available with the government and has been intended for the processing areas:-

 

Cluster Area Area in acres
Processing Non-Processing Total
Cluster 1 Madhurawada, Ghambheeram, Kapulapada, Anandpuram & Padmanabham 4763.05 5481.58 10244.63
Cluster 2 Parvada, Anakapalle, Pendurthi, Sabbavaram, Gajuwaka & Pedagantyada 6255.65 3208.43 9284.02
  Roads and Infrastructure   1405 1405
  Total 11019 9915 20934

Table 6: ITIR Delineated Area

 

The delineated area in Visakhapatnam region can be seen in figure 10 below:-

Figure 7: ITIR Delineated Area Cluster-wise

The total size of the proposed ITIR is 84.71 sq. km. The total processing area is 44.59 sq. km (52.6%) and non-processing area is 40.12 sq. km (47.4%). The proposed location has excellent potential for development of both processing and non-processing areas. In the proposed processing area in the three agglomerations, many IT and EHM projects are already existing and many projects are in the planning stage.

 

With reference to Table 7, the following details may be referred regarding the existing and future developments in the region:-

[1] Doc No.21/2016-CA.lll

The Cluster 1 of the proposed ITIR is 41.45 Sq. Km with a total processing zone of 19.27 Sq. Km. (46.5%) and a non-processing zone of 22.18 Sq. Km. (53.5%) has an advantage of already notified IT SEZs like Madhurawada (120 Sq. Km) and Gambheeram (57 Sq. Km). Much of the lands present in these SEZs are already allocated to IT and ITeS companies like Tech Mahindra, Wipro, Cyient and IBM owned Kenexa etc. Signature towers with 9 Lakh Sq. feet and Millennium towers with 3 Lakh Sq. feet are being constructed to create complete ecosystem for IT and ITeS. The existence of Sunrise Hub Incubation towers which provides strong platform and funding for the startup companies to practice entrepreneurship. The startup incubation towers is already providing space to as many as 30 startups will also accommodate NASCOMM 10k and SAP training facility.

 

The prestigious IIM Visakhapatnam and Society for Applied Microwave Electronics Engineering & Research (SAMEER) are currently under construction at Gambheeram. It also has huge green field area of Kapulapada having a land bank of 1351 acres for processing zone and about 3200 acres of Non-processing zone and is identified to be one of the largest Greenfield zone for Integrated IT Townshipwhich would be developed through Government and Private Interventions. To support this development Anadapuram has been primarily considered for residential and commercial zone.

 

Cluster 1 Area in Acres Purpose
Processing Non Processing Total
Visakhapatnam(R) 344 68.8 412.8 IT / ITeS Park
Padamanabham 300 60 360 IT / ITeS Park
Anandapuram 2590.83 1950 4540.83 IT & Residential
Madhurawada, Gambheeram 177.22 102.78 280 IT / ITeS Park
Kapulapada 1351 3300 4651 Integrated IT township
Total 4763.05 5481.58 10244.63  
           

Table 8: ITIR Delineated Area for Cluster 1

The proposed cluster 1 has the advantage of connectivity with NH-16 (Chennai – Kolkata Highway) and the Metro rail corridor connecting to Madhurawada runs along this area. It is also located in close proximity (about 35 Km) to the upcoming Bhogapuram international airport. A direct connectivity would be provided to the airport wherever required.

With a total area of 37.2 Sq. Km (Processing area of 25.31 Sq. Km and Non-processing area of 12.25 Sq. Km), Cluster 2 is enduring with various developmental activities to promote IT, ITeS and EHM sectors. The presence of VSEZ which is a multi-product SEZ that offers state of the art infrastructure and support services occupies a total area of 400 acres at Parvada. The VSEZ accommodates more than 100 IT, ITeS companies as on this date.

The Electronic Manufacturing Cluster planned in 128 acres of land at Gurrampalem apart from providing basic amenities such as roads, power and water etc. the plots are being developed into areas of 1, 2 and 5 acres for expedience to the interested companies. The EMC would have around 35-40 plots. Around 60% of the cluster will be developed into plots and the remaining 40% will be open space shall be utilized for common facilities and utilities.

 

Cluster 2 Area in Acres Purpose
Processing Non Processing Total
Munagapaka 203.3 40.66 243.96 IT / ITeS Park
Anakapalli 1718.12 1289 3007.12 Multi-Purpose Logistic Park
Pendurthi 392.75 78.55 471.3 Electronic Manufacturing Cluster
Sabbavaram 1041.99 208.398 1250.388 IT / ITeS Park
Gajuwaka 1917.6 862.92 2780.52 IT Park
Paravada 696.31 349 1045.31 VSEZ
Pedagantyada 285.58 199.906 485.486 Health and Medical Equipment Park
Total 6255.65 3028.43 9284.08  

Table 9: ITIR Delineated Area for Cluster 2

A Multimodal Logistic Park has been announced at Anakapalli with a dedicated area of 400 acres and would house many container freight stations to help turning Visakhapatnam into a Logistics hub. The state-of-the-art multimodal logistics park has been planned to be equipped with facilities such as container freight station, inland container depot for stuffing & and de-stuffing of cargo, rail connectivity, warehouses and cold storages, parking and toll collection facilities, administrative offices with amenities like food court and conference room, security and surveillance, landscaped area, water and power supply, sewerage and storm water system, and other value added services.

Health and Medical equipment manufacturing park, a first of its kind exclusive park for indigenous manufacturing of medical equipment would help reducing import dependency in this sector while creating employment and growth in the state. Over 200 acres in Pedagantyada is earmarked for this purpose.

As per the requirement of the Gazette Notification and for efficient planning and development of the ITIR, the proposed ITIR is divided into two phases. Phase I will involve physical development in the area demarcated for cluster 1, developing the policy framework of the ITIR, constituting governing and administrative bodies, provision of requisite infrastructure and detailed master planning. The following are the key developments that are proposed to happen during the initial years.

  • Social and other essential infrastructure development in the areas of Madhurawada, Gambheeram, Kapulapada, Sabbavaram, Pendurthi and Anakapalli.
  • Development and improvement of the road networks to the processing and non-processing areas on priority with R&B department, GoAP along with other basic and essential services such as bus services to these areas
  • Completion of the remaining phases of IT/ ITeS corridor & EHM layouts in cluster 1 and 2
  • Visakhapatnam International Airport: International Airport, a Greenfield airport project will be built near Bhogapuram, 40 kilometers north-east of Visakhapatnam, India. The project will come up on 5,311 acres in and around Bhogapuram, including 1,673 acres of government land. A direct connects needs to be established to the proposed ITIR as Visakhapatnam suffers constraints from naval airfield. The airport is also proposed to be connected to railway station & ICBT.

 

PHASE – I

 

Planning and Framework

  • Preparation of a detailed master plan for the ITIR and notification of the same.
  • Plan for all essential facilities for external infrastructure such as road networking, power, water, sewerage etc. in coordination with all stakeholders.
  • Creation of a Habitat Development Centre for housing the offices of various development agencies, financial agencies, licensed developers/builders etc. involved in the development of ITIR
  • Demarcation of all roads right-of-ways, delineation of the various areas, recreational areas, lakes and water bodies and buffer zones etc. on ground.
  • Creation seed capital and infrastructure development fund to APEITA by GoAP

The time frame is up to 2019.

 

 

PHASE – II

 

Infrastructure Development

  • Development of all city level trunk infrastructure facilities
  • Development of city level social and cultural infrastructure facilities
  • Development of all the identified residential development projects
  • Development of all other projects identified in the Master plan

The time frame is up to 2028.

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“One lakh new IT jobs for the youth will be created in the state within a couple of years. Five lakh jobs would also be created in the electronics, manufacturing sectors etc. “

Shri Nara Lokesh
Minister , Information Technology

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