| Govt
Policies: Infrastructure
Development |
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Infrastructure development
To create a strong base for accelerated pace of growth, the state encourages private
participation in the areas of power, ports, airports, expressways,
and Mega Industrial Infrastructure Parks (Centres of Excellence).
Multipurpose
Corridors
It is also essential that the state
government establish multipurpose corridors to support the export and evacuation
of different types of cargoes. The multipurpose corridors comprise rail lines,
roadways, conveyor belts, pipelines and other required
infrastructure like cooling loops for cryogenic pipelines as well as shelter
belts. Land acquisition has to be carried out specially for these corridors.
Along with the development of
multipurpose corridors is the requirement to establish storage complexes
with yards, warehouses, cold storages and container handling facilities. There
is also a need to develop new landing facilities and storage terminals
so that the land between the coast and the national highway has adequate supply
routes for food and commodities and also it can take cargo transportation in a
large measure from the road and rail network, which are already being utilised
to full capacity.
The proposed integrated storage facility
would have enclosed open and cover yards, enclosed covered area, transit sheds,
storage sheds, warehouses, Horton spheres, tankage systems, container park,
RO-RO vehicle parking areas, cold storages and way bridges.
The associated infrastructure will
include barge landing facilities, bulk handling facilities, tugs and barges,
piloting vessels and cargo handling facilities. The factors to be considered are
provisional location to the major industries that are likely to be established
proximal to main existing transportation network, possibilities of development
of barge landing facilities and proximal availability of power and water.
Andhra Pradesh has one of the best laid
inland water transport network in Buckingham canal and Krishna-Godavari
Delta canal system. But their neglect and disuse have impaired the
functionality of both the systems. With Andhra Pradesh coastline being exposed
to tropical cyclones of Bay of Bengal, the year round functionality of sea route
is restricted to the reach between Visakhapatnam and Kakinada Ports only.
Port Based Industrialisation
The 960 km long coastline and abundance of ports opens opportunities for exploration and
exploitation of hydrocarbons, petroleum refineries, petro chemicals, tank farms and LNG Terminals.
The perspective, should be to take into
consideration the possibility of handling the projected cargo of 85 million
tonnes by the year 2012, handling of larger tonnage of ships, future defense
needs, larger ship repair facilities, industrial requirements which exclusively
include offshore, dedicated feedstock handling facilities, fishing requirements
and development of water sports.
The ports in future must be able to
adapt to these changing patterns of cargo flows and respond to the evolution of
technological improvements in vessels and new cargo handling methods,
particularly the impact of containerisation. As this provides the most
cost effective means of carrying a wide variety of foods and materials. There is
an imperative need to avoid congestion in ports at all times, and berthing
delays are avoided.
This would go a long way towards
contributing to a national cause and pave the way for the establishment of a
major transfer facility for international shipping and containerisation which is
presently not available on the Indian coast. The container distribution and
transfer facility for international shipping is now being handled at Singapore
and Colombo.
Currently, harbour facilities are
provided for Indian Navy in the inner harbour at Visakhapatnam. The
traffic, draft, turning circles and the channel widths do not permit naval ships
the much needed protected shelter. The growth trends also indicate larger
vessels for the Navy in future, including aircraft carriers.
The search for offshore oil along the
eastern coastline, particularly, Krishna-Godavari Basin is taking place
on a large scale and already production platforms are established. SBMs are
being utilised to transport crude to refineries. This activity would also
require additional shore-support facilities.
The strategy to be adopted is to meet the
requirements of the future needs of projected cargo handling, defence
requirements, ship building. Repair facilities would have to be based on the
concept of central and sub-hubs and establishment of a port agglomeration
complex on the east coast.
The complex would have Visakhapatnam
Deep Water Port as the central hub and the other ports Gangavaram and
Muthyalammapalem and Kakinada in the south and Bheemunipatnam to the north
acting as sub-hubs.
The development of Visakhapatnam harbour
may include southern extension of the other harbour, which is facilitated by the
availability of deep drafts near the coast. Also included in the overall
strategy would be the development of deep-water port at Gangavaram and
mini harbour and dedicated feedstock handling facilities in Muthyalammapalem
port limits.
Future trends show that there will be a
need for more and more big ships for repair/building. There is a need to look
at this in totality and consider provision of a modern facility for shipbuilding
and ship repair at the Gangavaram port to meet the requirement of the 21st
century.
The defence needs of the future would be
met by the new deep drafts available and protected shelter environments of Gangavaram
Bay and also of the tranquil conditions that would be available in the
southern extension of the outer harbour at Visakhapatnam.
As such the state should look at the
development of Gangavaram Port as its signal contribution to the national
development and attempt to garner resources from central sector be it in the
form of joint venture with Visakhapatnam Port or with Indian Navy
remaining as nodal agency with controlling interest.
For expeditious implementation of the
proposed port hub development project, the state should take the route of MOU
and as is being implemented by MOST for major ports of Chennai, new
satellite port at Ennore, Tuticorin etc. They may take advantage of the
proposals received and also from those who were shortlisted to arrive at the
master plan and strategy for development of Gangavaram Port through a
committee of experts.
The State Government has taken a
major initiative in privatising Kakinada and Vodarevu ports. Both port sites
have inherent problems, which should have been taken into consideration in
calling bids for privatisation. Most of the minor ports are located at the river
mouths, as in the historical times the cargoes moved along the river and were
exported from these minor ports.
With medium irrigation projects
constructed on all the rivers, these rivers do not have the energy to keep open
the channels, providing connectivity to sea require a heavy continuous dredging
operations. Better technical alternatives would be to develop new port sites
where deeper waters are available.
Highways
In Hyderabad, one can see flyovers
everywhere and also the extent of thrust being given for development of state
highways in the demolitions taking place, to widen the state highway and alignments
in villages. It is to be assessed whether the flyovers being constructed in the
state capital would eliminate the traffic congestions. What is immediately
required and special thrust to be given is, for ensuring better regulation and
management of traffic and strict imposition of traffic rules without fear or
favor, and changing the mindset of the people to follow the traffic rules
explicitly.
Power
The state is yet to witness the much
promised power sector reforms and augmentation of power supply through short
gestation mini power plants. Here again the investors face hurdles in obtaining
the required clearances as the agencies concerned take their own decisions even
in regard to policy matters like requirement of 30 mw power plants or not. There
are instances where the clearances have taken more than one year essentially
because of poor understanding of the policies of the government.
The Ministry of Environment and Forests,
GOI, has delegated the authority, for environmental clearance to state level
committee but they have introduced a clause in the notification which requires
that power plant locations within 25 kms of reserve forest require a
central clearance. This completely neglects the objective of delegation as for
state like Andhra Pradesh which has Eastern Ghats occupying half the
geographical area there would not be a power plant location which is 25 kms away
from reserve forest. So also is the contention in respect of location in water
sheds. The proponents do not realise that there is no area which does not fall
in a water shed. Such kind of interpretation unnecessarily delays the
implementation of projects.
* During the last 6 years, the Andhra Pradesh State Electricity Board (APSEB) network was augmented by a huge 26.4% - The highest network expansion among all electricity boards in the country.
* GVK Industries Ltd. and Spectrum Power Generation Ltd. Rolls Royce became the country's first two track power projects
commissioned to full capacity.
* The state has 7200 MW of installed capacity.
* Further, the Installed capacity is scheduled to be doubled by the year 2002 A.D.
* A complete restructuring of the APSEB has taken place.
* The APSEB is corporatised to enhance efficient functioning.
* The separation of generation, transmission and distribution functions ensures smooth operations.
* Establishment of an Independent Tariff Regulatory Commission is on the cards. Land, Water
Supply & Environment
Any investor who proposes to establish
an industry would look into the availability of land and water. In fact even in
the priority corridor of Visakhapatnam-Kakinada there are umpteen
examples of industrialists withdrawing after laying the foundation stones
essentially because the much needed support from state government in terms of
water supply and availability of land devoid of rehabilitation problems is not
being provided by the state government. The rehabilitation where there is a necessity, is itself
taking a long time and hardly any progress has been
achieved in these programmes. It is to be noted that the Ministry of
Environment and Forests, GOI, attaches most significance to the
rehabilitation in clearance of proposals particularly in view of recent
judgements of Supreme Court. Certain major investors like Hindujas have to
resort to the expensive method of desalination for providing water supply to the
1000 mw plant. Had the state government taken the right decision at the right
time these industrialists would have committed the finances required for
bringing the Godavari waters to the projects in this corridor as it would have
very beneficial and cost effective implementation of the projects. Water
* The three major rivers Godavari, Krishna and Pennar with extensive canal systems provide adequate water for industrial use in any part of the state.
* Additionally, there are ample ground water sources throughout the state. Environment
* Andhra Pradesh provides a welcoming and cosmopolitan environment.
* The state offers good quality of life at very reasonable costs.
* Pollution levels in Hyderabad and the rest of the state are much lower compared to other metropolitan cities.
Housing
The state government has launched an
impressive programme of housing for weaker sections and the needy. But one must
realise here that these programmes are launched without application of
technology in a state that is headed by a technology savvy Chief Minister. New
technologies available in house constructions are not deployed. Even the
locations of housing colonies are not done on scientific basis. Adoption of
technologies would have resulted in better quality control and design. One
should also realise that land is precious commodity and construction of
individual houses may not be the optimum solution. Transport
* The state has excellent rail, road and air connections to various parts of the country.
* An expansive 1,45,000 km network of roads is on the anvil. 1,400 kms of major highways are presently being upgraded with aid from the World Bank.
* A.P. has over 5,000 kms of rail lines, with one third of the country's rail cargo passing through the Vijayawada rail terminal.
* 11 ports are spread along the 960 km A.P. coastline.
* Deep water ports are established at Vishakpatnam and Kakinada, with Vishakapatnam handling the largest volume of cargo in the country.
* Hyderabad houses a fully self-contained inland container freight depot and air cargo complex.
Telecommunications
The state government does give a special
thrust to development of communications and if the recent media reports are to
be believed, every district headquarter would be connected by a 2MB link.
At the same time if one evaluates the trends and projects being implemented in
the neighboring state like Tamil Nadu where WorldTel is ushering a
communication revolution through availability of internet via micro sat dishes
and creating a large employment potential along side.
An open door policy welcomes investment in the manufacture of switching systems, pagers, connectors, various types of cables, transmission equipment and terminals like cordless phones, pay phones, fax machines and modems.
* Andhra Pradesh has the largest number of telephone exchanges in the country.
* Modern communication facilities like cellular and pager services with various networks to choose from are available.
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