Ranked the No. 1 state in ease of doing business, Telangana is driving growth for a new India, as CW discovers.
It was introduced as the 29th state of India in 2014. And in 2017-18, Telangana's GSDP (gross state domestic product), at current prices, stood at Rs 7,326.57 billion (a growth rate of 14.1 per cent) compared to the all India GDP at Rs 167,516.88 billion (a growth rate of 9.8 per cent). Notably, Telangana was ranked the No. 1 state in ease of doing business by the Department of Industrial Policy and Promotion (DIPP). Further, the state holds immense investment opportunities û cumulative FDI inflows (including Andhra Pradesh, PPPs, SEZs, sample registration system) from April 2000 to December 2017 totalled $14.524 billion. And, according to a recent IBEF report, 10 investment intentions were filed and proposed investments amounted to Rs 10.05 billion till January 2018.
It also plans to set up a life sciences infrastructure fund with a corpus of $148.73 million, which will be used to create modular plug-and-play infrastructure for pharmaceuticals, biotechnology and medical devices.
Notably, the Telangana State Sand Mining Policy is regarded as a model sand regulation policy in India. Sand extraction, disposal and availability to consumers is affordable and the process is conducted through the Telangana State Mineral Development Corporation through online booking. Also, in order to reduce the impact of sand mining from streams or rivers, the state is promoting M-Sand (manufactured sand). It has also mandated that all government departments will use 50 per cent M-Sand in engineering works, he adds. At present, there are 44 M-Sand units around Hyderabad and abundant scope for more such units.
The Centre has also sanctioned new national highways with a combined length of 2,776 km to Telangana.
During the past two-and-a-half years, the state received approvals from the Centre to lay 2,776 km of 18 new highways, says AAV Ranga Raju, Managing Director, NCC. The total length of the national highways will increase to 5,303 km once existing projects are completed.ö Meanwhile, TV Sandeep Kumar Reddy, Promoter and Managing Director, Gayatri Projects, says, ôTo maintain its position, Telangana needs to continue to invest in infrastructure û building, maintaining and upgrading it.Railways and metro: Telangana had a railway network of 1,736.67 km, as of December 2016. For construction of new railway lines, the government proposed an investment of $3.10 million in 2017-18. Further, a rapid metro transit system is being implemented through PPP mode and is expected to be completed by November 2018. As Jayesh Ranjan tells us, the state has started the process of preparing the DPR of Phase-2 of the Hyderabad Metro and is working on æmulti-model transport system's with multiple integrated systems in Hyderabad city (read interview of Hyderabad Municipal Commissioner on page 71).
KNR Constructions is executing two irrigation projects in Telangana: the Palamuru Rangareddy Lift Irrigation Scheme (Package No.6) at Yedula, Mahabubnagar District, at Rs 6 billion; and the Konda Pochamma Sagar project at Siddipet District at Rs 8.84 billion. Gayatri Projects, too, recently started a Rs 15-billion project under the Kaleshwaram lift-irrigation project, as part of a JV.
Attivo will develop an infrastructure equipment manufacturing park in the National Investment and Manufacturing Zone near Zaheerabad across 500 acre.
In an exclusive interview with CW, Jayesh Ranjan, Secretary, Department of IT, Electronics and Communication, Government of Telangana, talks to RAHUL KAMAT about how T-Hub, optic fibre network, Phase-2 of the metro and new sectors like aerospace and defence are attracting investments in the state.
Apart from these sectors, we are giving a push to the textile, food processing and automotive segments, especially the electrical vehicle market.
What about the retail trade policy expected in the next two months?
The retail trade policy is in the finalisation stage; we have already consulted the industry and are getting their inputs. We are awaiting related departments to give their permits. Once we receive the necessary permits, we will consolidate the policy and the state will process it for internal approvals. But even if the policy is not in place, big retail players already have a presence in the state because of the proactive approach of the government. For instance, IKEA has decided to open its first retail outlet in Hyderabad. It's their first in the country and will be launched by July 2018. That apart, Dubai-based retail player Danube is opening a retail outlet in Hyderabad. Other big players like Walmart and Metro have a presence in the state. And as they have a large presence in Hyderabad, now they are showing a positive intention to invest in other Tier-II or Tier-III locations.
Hence, on the lines of the 2G and 3G spectrum auction, the state will auction the T-Fibre network. Also, for this project, considering the amount of returns we are likely to receive, we have our own fund-raising plans. We will raise 20 per cent from debt. Please share your fund-raising plans for major infrastructure projects being taken up in the state.
First of all, Telangana is a revenue surplus state. There are a few states in the country that are revenue surplus; apart from Gujarat, one of them is Telangana. And thus, we have a strong balance sheet to raise funds from the market. For many of the flagship projects of the state, the capital is being raised from the market; for some projects, there is a budgetary allocation. We also rely on PPP, where the government contributes in the form of land. So funding a project depends on the size and complexity involved.
At our recently held Smart Urbanation Summit organised by Smart Cities Council India, Dr B Janardhan Reddy, Commissioner, Greater Hyderabad Municipal Corporation (GHMC), shared more on the cityÆs growth chart, smart plans and opportunities in conversation with SHRIYAL SETHUMADHAVAN and RAHUL KAMAT.
- SERAPHINA D-SOUZA