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CLASS NOTES OF I.S.N.
RAJU SIR
INDUSTRIAL POLICY OF ANDHRA PRADESH

Industrial Policy of the AP Government : Incentives to industries – Industrial corridors in and
SEZs in Andhra Pradesh – Bottlenecks for industrial development – Power projects.
1. The Progress of Special Economic Zones in Andhra Pradesh?

Ans :
India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with
Asia's first EPZ set up in Kandla in 1965. The Special Economic Zones (SEZs) Policy was announced in April 2000. The Special
Economic Zones Act, 2005, was passed by Parliament in May, 2005 which received Presidential assent on the 23rd of June, 2005. The
SEZ Act, 2005, supported by SEZ Rules, came into effect on 10th February, 2006, providing for drastic simplification of procedures
and for single window clearance on matters relating to central as well as state governments. The main objectives of the SEZ Act are:
(a) Generation of additional economic activity
(b) Promotion of exports of goods and services
(c) Promotion of investment from domestic and foreign sources
(d) Creation of employment opportunities
(e) Development of infrastructure facilities
Facilities and Incentives :

 The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including foreign investment
include:-
(a) Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units.
(b) 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years,
50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years. (Sunset Clause for Units will
become effective from 01.04.2020)
(c) Exemption from Minimum Alternate Tax (MAT) under section 115JB of the Income Tax Act. (withdrawn w.e.f. 1.4.2012)
(d) Exemption from Central Sales Tax, Exemption from Service Tax and Exemption from State sales tax. These have now subsumed
into GST and supplies to SEZs are zero rated under IGST Act, 2017.
(e) Other levies as imposed by the respective State Governments.
(f) Single window clearance for Central and State level approvals.
SEZ's in Andhra Pradesh :

(a) The First Export Processing Zone / SEZ in Andhra Pradesh : Visakhapatnam.
(b) Multi Product SEZ was established near "Tada" - Nellore District (New District is Chittoor) (Tada is also known as Mini Gujarat).
(c) Sri City Special Economic Zone was established in 5000 acres, spreading Nellore and Chittoor Districts.
(d) Fisheries SEZ in Andhra Pradesh located at Machilipatnam.
(e) First Kisan SEZ in India : Racharlapadu, Kodavaluru, Nellore District.
(f) Total Operational SEZ's : 19. (As per Central Government Data the total operational SEZ's are 25).
(g) Total Investments : Rs. 20516 Crores.
(h) Total Employment : 77291.
(i) Total Exports : Rs. 12160 Crores.
(j) Districts having highest SEZ's : Visakha (7), Nellore (5).
(k) Districts having no operational SEZ's : Ananthapur, Kurnool, Kadapa, Guntur, West Godavari, Vizianagaram.
(l) Operational SEZ's Means 'SEZ's which are not doing any exports'.
(m) Top 3 Districts in terms of SEZ's employment : Visakha, Nellore, Chittoor.
(n) IT / ITES Sez's - 3, Multiproduct SEZ's - 5, Formaceutical SEZ's - 4, Textiles and Apparels - 2, Leather Products - 2, Building and construction
material SEZ's - 1, Port based SEZ's - 1, Food Processing SEZ's - 1.
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CLASS NOTES OF I.S.N. RAJU SIR
2. Global Investors Summit 2023?

Ans :
The state of Andhra Pradesh is renowned for its excellent infrastructure, large manufacturing base, talented youth and business - friendly
environment. To showcase these strengths of the state, engage with the global investor community and forge mutually beneficial partnerships,
the Government of Andhra Pradesh is conducting the ‘Global Investors Summit 2023’ at Visakhapatnam on March 03-04, 2023. The summit
will present Andhra Pradesh through an exclusive state pavilion that will showcase the strong industrial base, robust presence of MSMEs and
Startups, and investor-friendly atmosphere.
The state has planned Business-to-Business (B2B) and Government-to-Business (G2B) meetings, keynote speeches, sector-specific
plenary sessions, and exhibits as opportunities for global leaders to engage fruitfully.
The following are the focus sectors which were identified by the Andhra Pradesh Government. (1) Aerospace & Defence, (2) Agri &
Food Processing, (3) Automobile & Electric Vehicles, (4) Electronics & IT, (5) Healthcare & Medical Equipment, (6) Industrial & Logistics
Infrastructure, (7) MSME And Startups & Innovation, (8) Petroleum & Petrochemicals, (9) Pharmaceuticals & Life Sciences, (10) Renewable
Energy, (11) Skill Development & Education, (12) Textiles & Apparel, (13) Tourism & Hospitality
Government of Andhra Pradesh has successfully organized Global Investor’s Summit at visakhapatnam on 3rd-4th March 2023. The
International congregation has highlighted the best efforts of the government to attract the investors. the two-day event demonstrated not
only the credibility of the goverment by national / international investors across the globe but the faith reposed in the State leadership. The
unassuming and unanticipated response of the investors from 25 Countries and from 30 Corporate giants participated in the summit which
included several International / International business tycoons.
In all, 378 Memorandums of Understanding (MoUs) were signed during the Summitt with a total commitment of Rs. 13.42 lakh crore
and generation of over 6 lakh jobs across 16 key sectors. A significant investment commitment was in the area of renewable energy sector
with a commitment of Rs. 9,57,112 crore and with a potential employment generation to 1.80 lakh persons. the other major promising sectors
include Petro-chemicals, ITE&S, Mining Industries and others.
Leading the list of investments in Andhra Pradesh was a pack of renewable energy companies. NASDAQ - listed ReNew led the way
with an investment of Rs. 97,500 crore towards setting up gree energy projects in the State, thus Andhra Pradesh will account for ReNew’s
largest - ever investment in a single state. Other renewable energy companies like Indosol and Greenko announced investments of Rs. 76,033
crore and Rs. 47,500 crore, respectively.
The government is committed to capitalize on the natural and human resources available in the State and making the city of
Visakhapatnam as industrial hub of the State. The advantage that Andhra Pradesh is showcasing at the Global Investors summitt is its 974-
km coastline - the second longest in the country. With six existing ports and four more under construction, six operating airports, Andhra
Pradesh state enjoys 3 Industrial Corridors passing through it out of the 11 total in the country speaks conduciveness for setting up big ticket
industries.
Abundance in every sphere :

(1) 8th Largest State in India spread across 162,968 sq.km
(2) 1.2 million Telugu diaspora - 2nd largest Indian linguistic diaspora abroad
(3) The State GSDP valued 147.21 billion USD.
(4) In 2021-22 the highest growth rate registered at 11.43% in India
(5) 974 km 2nd longest coastline in India and Gateway to East Asia.
(6) India’s Gateway to Southeast Asia with 6 existing ports and 4 new ports under development.
(7) 6 existing airports and 4 new airports under development
(8) Availabiltiy of ready skilled population and young people.
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3. Explain the significance of Industrial Corridors in Andhra Pradesh?

Ans :
Government of India is developing various industrial corridor projects as part of the National Industrial Corridor Programme which is
aimed at development of futuristic industrial cities in India which can compete with the best manufacturing and investment destinations in
the world. The same will create employment opportunities and economic growth leading to overall socio-economic development.
Andhr Pradesh is the only state to have 3 industrial corridors viz., Visakhapatnam - Chennai Industrial Corridor (VCIC). Chennai -
Bengaluru Industrial Corridor (CBIC) and Hyderabad - Bengaluru Industrial Corridor (HBIC).
These corridors are being implemented with financial assistance from Asian Development Bank (ADB) as well as National Industrial
Corridor Development and Implementation Trust (NICDIT).
(1) Visakhapatnam Chennai Industrial Corridor Development Program (VCICDP) : Visakhapatnam Chennai Industrial Corridor (VCIC)
is a part of East Coast Economic Corridor, is a key part of coastal economic corridor in the country. The key objectives of VCIC are:
(a) Increase the manufacturing sector's contribution to state and national output
(b) Increase employment opportunities in formal sector
(c) Increase labour productivity & wages
(d) Promoting dynamic SMEs
(e) Integrating India and the VCIC region in global production networks, particularly East and Southeast Asia
Potential Nodes along with Clusters

Sl.No. Node Cluster District
1. Visakhapatnam (1st Phase) Atchuthapuram (expansion)/ (Rambilli Nakkapalle Visakhapatnam
2. Machilipatnam Machilipatnam Krishna
3. Donakonda Donakonda Ongole
4. Srikalahasti - Yerpedu (1st Phase) Chittoor South Chittoor
Chittoor North
5. Kadapa Kopparthi Kadapa
Details of VCIC Loan - Investment and Financing Plan

Source Amount (USD Million) and Share (%)
Policy Loan Project Loan Total
Asian Development Bank 125.0 (100%) 500 (70.0%) 625 (74.4%)
Government of Andhra Pradesh 0 (0.0%) 215.0 (30.0%) 215.0 (25.6%)
Total 125 (100.0%) 715 (100.0%) 840 (100.0%)
The expected impacts of VCIC on Socio Economic Development of A.P. by 2035

1. Manufacturing Sector Output in VCIC jurisdiction increased to INR4.20Trillion (2015 Base Line Rs.1.10 Trillion).
2. Labour Productivity of Key Industries in VCIC jurisdiction increased to Rs.2.60 Millions per employee (2015 Base Line Rs.2.30
Millions per employee).
4. 24-Hour Power Supply made available to 100% of Manufacturing Industries in VCIC jurisdiction.
3. Share of women employed in Manufacturing Sector in VCIC jurisdiction increased to 33% (2015 Base Line 28%).
5. Capacity development through Skill Development Trainings to at least 25,000 women and others in VCIC jurisdiction.
(2) Chennai Bangalore Industrial Corridor (CBIC) :
Krishnapatnam, SPSR Nellore District has been selected for Development under Phase-I by DPIIT along with two nodes each in Tamilnadu
and Karnataka states. An extent of 13,919.67 Acres is proposed for development under Krishnapatnam Node in two Blocks as
follows:
(a) Krishnapatnam, SPSR Nellore District : 12,315.81 Acres,
(b) Thatiparthi (V), Sri Kalahasti (M), Chittoor District : 1,603.86 Acres
(3) Hyderabad Bengaluru Industrial Corridor (HBIC) :
Under HBIC, Orvakal node in Andhra has been identified for development in initial phase admeasuring an area of 9,800 acres and
project development activities are being initiated. Two more nodes have been proposed by the State Government.
(1) Orvakal Node - 9,350 acres
(2) Hindupur Node - 3,000 acres (proposed)
(3) Ananthapur Node - 3,000 acres (proposed)
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4. Explain the Objectives and Themes of Industrial Development Policy 2020-2023?
Ans : The Andhra Pradesh Government have introduced the AP Industrial Development Policy (IDP) 2020-2023 identifying 10 thrust areas
to propel economic growth, with manufacturing as the high priority sector that would create large scale employment.
Objectives : The objectives set for the policy are as follows:
1) To create employment for the youth of the state (9 lakh new employment opportunities)
2) To match the national average in industrial GVA per capita
3) To plan balanced growth across regions and communities
4) To achieve environmentally sustainable growth
5) By the end of 2023, an additional investment of Rs. 1,20,000 crores should be attracted
6) To add additional GVA to this state output. (Rs. 40,000 crores)
Themes : The Industrial Policy defined across five themes covering entire business value chain.
Theme - 1 : Infrastructure :
1 To allot industrial plots, only post complete pre-clearance and zoning, in order to facilitate fast set up and risk-free operation.
2. To develop MSME Parks. In every Assembly Constituency one MSME park will be established. 10 Mega Industrial Parks will be developed.
3. To offer Plug and play facility including ready built factory shell and all basic facilities in MSME parks, as per requirement.
4. To develop mega industrial parks with common facilities turned to theneeds of target segments. Create a land bank with 3 lakh acres of
land in addition to this an additional 1 lakh acres will be added to the existing land bank.
5. To ensure availability of basic facilities at industrial parks.
(a) To constitute Industrial Water SPVs, wherever required, to bring water to door steps.
(b) To explore options to make available cheaper power in new industrial parks.
6. To setup Incubation centers to encourage startups in hi-tech industries
7. To replace existing lease and buy option in APIIC land policy, with 'Lease + Buy model' with low upfront payment and option to buy
land post 10 years of successful operation.
8. To develop all industrial parks in an environmentally sustainable manner. Facilities to be made cyclone proof in the areas of risk.
Theme - 2 : Ease of doing business :
1. To provide End to end deemed approvals to all Green category MSMEs in notified industrial parks with a condition to formalise all the
approvals within three years.
2. To make Single Desk Portal (SDP) robust by addressing identified issues. Online approval process within 21 working days.
3. To provide Central helpline for seamless on-ground implementation of the approvals.
4. To conduct regular district level industrial meetings under Dist. Collector to settle pending approvals & grievances.
5. To conduct regularly State Level Bankers Committee (Industrial sub-committee) to address issues with loan disbursals.
Theme - 3 : Skilling and Labour availability :
1. To setup 30 skill development centers and 2 skill developent universities.
(a) Curriculum to be developed based on industry needs.
(b) High end skill university to focus on cutting edge analytics and industry 4.0 (smart manufacturing using LoT, predictive maintenance)
2. To institute Global immersion programs for top talent in the state in topics like high-tech electronics, biotechnology, high-end leather
and textile design, Petrochemical and food technology.
3. To develop a Digital platform to match skilled labor in Andhra Pradesh with requirements of businesses.
Theme - 4 : End to End Hand Holding :
1. To integrate services from multiple state agencies under a multi-faceted business enablement center 'YSR AP One' which acts as one
stop resource and support center for industries.
The Government will integrate services from multiple state agencies under 'YSR AP One', a central multi faced capability center which
will offer the following 10 services to ensure that the investors are setup on the path for success.
(1) Entrepreneurship Facilitation Cell to maintain repository of business models and plans and support enterpreneurs in the state with
knowledge support to start new venture.
(2) Market Research Cell to undertake market research, develop sector wise resource repository of market updates and new developments.
(3) Marketing and Branding Cell to support businesses in marketing their products locally and globally. This cell also builds and promotes
state specific brands (e.g. Guntur Chilly)
(4) Sales Support Cell to connect units in state with potential buyers. This cell will operate as Key Account Managers (KAM) for various
exporters, distributors, and retailer both in the country and across the world.
(5) Scheme Support Cell to support units in state in availing central and state government schemes.
(6) MSME Revitalization Cell to pro-actively assess MSMEs and revive and reposition sick MSMEs. It also provides seed capital fund
for MSMEs.
(7) Business Enablement Cell supports businesses in getting all approvals and addressing all grievances that may rise post-setup
(8) Investor Reach-out Cell with priority sector and geography desks for focus investor reachout
(9) Incentive Management Cell to assess unit performance, estimate incentives and ensure timely disbursement of incentive.
(10) Special Category Cell to handhold SC/ST/BC/ Minority entrepreneurs throughout the lifecycle. The existing institutions under the
Department of Industries – APEDB, APTPC, APIIC, APIDC, and MSME Corporation to be modified and restructured appropriately to
incorporate the above functionalities.
Theme - 5 : Incentives :
1. Offer adequate Incentives to Micro and Small Enterprises
2. To reimbuse SGST for 5 years (capped to FCI) for Medium, Large and Mega industries linked to employment creation.
3. To offer Special incentives for Women entrepreneurs belongings to SC/ST/BC and Minority communities.
4. To reserve 16.2% and 6% of plots in the APIIC parks for SC and ST Entrepreneurs respectively.
5. To set up a dedicated cell under 'YSR AP One' for handholding SC/ST/BC/Minority category entrepreneurs.
Conclusion :
There is one rule for industrialists and that is “Make the best quality of goods possible at the lowest cost possible, paying the highest
wages possible”.
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5. Explain the Industrial Incentives announced in 2020-23 Industrial Policy?

Ans :
(A) Incentives for Micro, Small Industries :
(1) 100% reimbursement of stamp duty, transfer duty on purchase of land meant for industrial use.
(2) 100% reimbursement of stamp duty on lease and hypothecations and mortgages.
(3) The reimbursement of energy consumption for a period of 5 years, from the date of actual production. Reimbursement of
Rs.1/- per unit.
(4) 15% investment subsidy on fixed capital (Maximum subsidy is upto 20 lakhs). In case of Women Entrepreneurs an
additional 10% investment subsidy.
(5) 100% reimbursement of State GST (For 5 years from the date of actual production).
(6) Loans taken for purpose of fixed capital requirements, an interest subsidy of 3% to 9% is made available (for 5 years from
the rate actual production)
(7) 25% reimbursement of land conversion charges (maximum limit Rs. 10 lakhs).
(8) On purchase of machinery new entrepreneurs will receive 10% investment subsidy, for women 15% investment subsidy.
(9) 50% reimbursement expenditure on water audit (maximum limit Rs. 10 lakhs)
(10) 50% grant on energy audit (maximum limit Rs. 2 lakhs)
(11) 75% subsidy on the expenditure incurred for patent and quality certification (maximum limit 5 lakhs)
(12) 50% subsidy for trade mark registration expenditure (maximum limit Rs. 25,000/-)
(13) Skill development expenditure for Micro Companies Rs. 5,000/- per worker (maximum 10 worker), for small companies Rs.
5,000/- for worker (maximum 20 worker)
(14) 15% fixed capital investment subsidy in service sector industries (maximum limit Rs. 20 lakhs)
(15) 35% subsidy to purchase pollution control machinary (maximum limit Rs. 35 lakhs).
(16) Subsidy on purchase of Waste Water Treatment Plants, Continuous Emission Monitoring System, Green Building Technology.
(B) Incentives for Medium Enterprises, Large and Mega Industries :
(1) GoAP is committed to supplying uninterrupted 24 x 7 quality power to all industries operating in the state.
(2) 100% reimbursement of net SGST and accued to the State for 5 years or 100% fixed capital investment, whichever is lower,
from the date of commencement of commercial production, linked to employment.
Direct Employment generated SGST reimbursement
< 100 50%
1000 to 2000 75%
2000 + 100%
(3) GoAP places significant thrust on adoption of sustainable green measures across industries in the state. Common facilities
like Waste water treatment, Continuous Emission Monitoring System (CEMS) etc. would be setup in new APIIC Industrial
parks.
Apart from the above incentives backward classes, SC, ST, Women Entrepreneurs are entitled to additional incentives, so that social
justice and social equality should be the agenda of the government.
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6. Explain the Industries Incentives to SC, ST, Women Entrepreneurs under 2020-23 Policy?
Ans : Starting your business is like planting a sapling. First, you have to invest your time and money. Then, you must take care of it while
expecting nothing in return. But when your startup blossoms, it makes all the patience and hard work worthwhile. However, like saplings,
many startups fail to grow -- and many die one-to-three years after launch. While there are many factors leading to the failure of a startup,
one of the main reasons is the lack of incentives and support. The following are the incentives announced by the AP Government.
SC/ ST Entrepreneurs :
(3) The reimbursement of energy consumption for a period of 5 years, from the date of actual production. Reimbursement of
Rs.1.50/- per unit.
(4) 40% investment subsidy on fixed capital (maximum limit upto Rs. 1 crore). In case of Women Entrepreneurs an additional
10% investment subsidy.
(5) 100% reimbursement of State GST (for 7 years from the date of actual production)
(6) Loans taken for purpose of fixed capital requirements, an interest subsidy of 3% to 9% is made available (for 5 years from the
rate actual production)
(7) 25% reimbursement of land conversion charges (maximum limit Rs. 10 lakhs).
(8) On purchase of machinery new entrepreneurs will receive 10% investment subsidy, for women 15% investment subsidy.
(9) 50% reimbursement expenditure on water audit (maximum limit Rs. 10 lakhs)
(10) 50% grant on energy audit (maximum limit Rs. 2 lakhs)
(11) 75% subsidy on the expenditure incurred for patent and quality certification (maximum limit 5 lakhs)
(12) 50% subsidy for trade mark registration expenditure (maximum limit Rs. 25,000/-)
(13) Skill development expenditure for Micro Companies Rs. 5,000/- per worker (maximum 10 worker), for small companies Rs.
5,000/- for worker (maximum 20 worker)
(14) 15% fixed capital investment subsidy in service sector industries (maximum limit Rs. 20 lakhs)
(15) 35% subsidy to purchase pollution control machinary (maximum limit Rs. 35 lakhs).
(16) Subsidy on purchase of Waste Water Treatment Plants, Continuous Emission Monitoring System, Green Building Technology.
Women Entrepreneurs :
(1) All the above incentives are applicable to Women Entrepreneurs.
(2) For general category women an investment subsidy of 25% on fixed capital (maximum limit Rs. 30 lakhs)
(3) For BC Category Women an investment subsidy of 45% on fixed capital (maximum limit Rs.1 crore)
(4) For SC/ST Women an investment subsidy of 50% on fixed capital (maximum limit Rs. 1 crore).
(5) 25% of the land in the Industrial Parks shall be reserved for BC, SC, ST, Women entrepreneurs.
Conclusion :
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7. Explain the Special Incentives under Jagananna YSR Badugu Vikasam for SC, SC Entrepreneurs
2020-23?
Ans :
Government introduced a new scheme 'Jagananna YSR BaduguVikasam' as part of special industrial policy 2020-23 under which a series
of incentives have been announced for the benefit industrialists from SC and ST communities in order to achieve inclusive growth through
economic upliftment by providing a special package of incentives for Entrepreneurs belonging to Scheduled Castes and Scheduled Tribes. The
Scheme shall be applicable to all manufacturing units, specified service activities and transport sector.
1. Stamp Duty : 100% reimbursement of Stamp duty and transfer duty. 100% reimbursement of Stamp duty for Lease of Land/Shed/
Buildings and mortgages and hypothecations
2. Land Allotment : 50% rebate in land cost limited to 20 lakhs in Industrial Estates/Industrial Parks for MSEs. 25% Land conversion
charges for the industrial use limited to 10 lakhs for MSEs. At least 16.2% and 6% of the developed land reserved for SC and ST
Entrepreneurs respectively in the industrial parks.
3. Power : Fixed power cost reimbursement @ 1.50 per unit for 5 years from the date of commencement of commercial production
4. Investment Subsidy : Applicable for manufacturing (45% subsidy on Fixed Capital Investment (maximum of INR 1 crores)). Applicable
for service and transport sectors (45% subsidy on Fixed Capital Investment (maximum of INR 75 Lakhs))
5. Interest Subsidy : Interest subsidy up to 9% over and above 3% for 5 years from the date of commencement of commercial production
for MSEs.
6. Net SGST : 100% reimbursement net SGST to MSEs or up to 100% fixed capital investment realization 75% net SGST to Medium
enterprises or up to 100% fixed capital investment realization. 50% net SGST to Large enterprises or up to 100% fixed capital investment
realization
7. Quality Certification / Patent Registration : 100% of the cost incurred for Quality Certification /Patent Registration limited to Rs.3.0
Lakh for MSEs
8. Seed Capital Assistance : 25% of Machinery cost as Seed Capital Assistance for first generation entrepreneur for establishing Micro units
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8. Share of Industries in GSDP and Bottlenecks for Industrial Development in Andhra Pradesh?
Ans :
Year GVA @MP Share in GSDP
2014-15 124,282 crores 25.48%
2019-20 190,190 crores 22.04%
2020-21 197,028 crores 22.25%
2021-22 243,923 crores 23.45%
2022-23 283,820 crores 23.36%
Sub Share in GSDP

Sectors @ (Constant M.P.)
1. Manufacturing industries 10.26%
2. Construction sector 6.91%
3. Mines and Quarries 2.64%
4. Electricity, gas, water supply 3.54%
23.36%
While the share of this sector in India’s GDP is more than 31%, the State has only 23.36% of GSDP.
Major Bottle Necks :

(1) Lack of Infrastructure
(2) Delay in Project approval to implementation phase
(3) Low Utilisation of Capacity and Resources
(4) Financial Issues
(5) Low Skill based Employees
(6) Industrial Sickness
(7) Lack of Public Sector Units
(8) Regional Disparities
(9) Competition from the Neighbouring States
(10) Other Issues
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9. Explain the Important Initiatives taken by the State Government to Promote Industrialisation in
Andhra Pradesh?
Ans :
Industrialization is the process by which an economy moves from primarily agrarian production to mass-produced and technologically
advanced goods and services. This phase is characterized by exponential leaps in productivity, shifts from rural to urban labor, and increased
standards of living. Industrialization can be considered the most important economic development in human history. Through industrialization,
we have seen more goods produced in less time, increased time for recreation and leisure, and an increase in real incomes.
The following are the major initiatives taken by the state government.
(1) Single Desk Portal (SDP) :
An NDP portal which is essential for Government to Business organizations (GTB) was launched in April 2015. This provides 69
services to investors from 19 government departments. Various permits required to start a business in Andhra Pradesh can be obtained in
maximum 21 days.
In addition, a Single Desk Bureau (SDB) has been set up under the leadership of the commissioner of industries. The SDB monitors the
performance of the SDP. The SDB has representatives from various departments served by the SDP.
Since Inception, portal has received more than 78261 applications for clearanaces out of which 75693 have been already approved.
From April 2022 to December 2022, 99.30% of applications are approved.
(2) MSME Cluster Development Programme (MSME - CDP) :

Government of India has adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness
as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country. By concentrating industries in one
area, their production, productivity and competitiveness can be increased.
The State is implementing eight industrial infrastructure development projects under the MSME – CDP programme. The value of
these is Rs. 196.7 crores, these projects are being implemented in Gandrajupalli (Chittoor district), Peddapuram (East Godavari), Singarayakonda
(Prakasam), Vedayapalem (Nellore), Kopparthi (Kadapa), Amudalavalasa (Srikakulam), Kannur (Krishna). The value of these is 41.43 crores.
These have been allocated to Guntur (Steel Fabrication), Nellore (Gold Jewellery), Chittoor (Printing Cluster)In the first phase Kopparthi,
Nellore, Gundrajupalli will be developed with central government grants and the financial support of State government.
1) Kopparthi – Industrial Park 2) Autonagar – Nellore 3) Gundrajupalli – Textile Readymade
(3) Dr. Y.S.R Navodayam : The Reserve Bank has introduced One Time Restructuring Scheme (OTR) to restructure outstanding loans of
MSMEs as on 31.03.2020. MSMEs have the option of restructuring loans received from commercial banks and other financial institutions.
Under the name of “Restart Package” the State Govt. paid incentives concessions to about 11,238 MSMEs in phases in the form of a
package of Rs. 904 crore.
The OTR progress as on 30/09/2021 indicates that 1,78,919 (22%) accounts are restructured out of the eligible 8,30,276 accounts.
(4) Y.S.R Jagananna Mega Industrial Hub :

APIIC is also developing 'YSR Jagananna Mega Industrial Hub' over an extent of 3,155 acre near Kopparthy node of VCIC (Vizag -
Chennai Industrial Corridor). This industrial hub will act as Multi-product Mega Industrial Park, with best in class Infrastructure
facilities like Power, Water, CETPs and STPs and is likely to attract an investment of INR 25,000 Cr with a potential to generate
employment for 75,000 people.
APIIC is also developing 'YSR Electronics Manufacturing Cluster (EMC)' adjoining the afore mentioned industrial hub. The EMC
is planned over an extent of 801 acre with an investment of INR 730 Cr. YSR-EMC is envisaged to attract an investment of INR 10,000
Cr with a potential to generate employment for about 25,000 people. The entire Kopparthy region is being made conducive for
industrial development by providing adequate industrial water supply through a 46 MLD water supply project.
(5) 'YSR AP One'- a one- stop resource and support centre for industries
Government introducing 'YSR AP One', a multi-faceted business enablement centre which cts as a one- stop resource and support
centre for industries,"
'YSR AP One' would provide handholding support (to investors) during pre-establishment and setting up of industrial units. The major
incentive a prospective investor gets under the new policy is the reimbursement of State Goods and Services Tax for five years (capped
to Fixed Capital Investment) for medium, large and mega industries linked to employment creation. The current lease and buy models
for land allotment are being replaced with a composite lease + buy model, where an industrialist gets to purchase the land after
successfully running his unit for 10 years.
(6) Y.S.R. Jagananna Badugu Vikasam:

Copy and Paste
(7) Industrial Development Policy 2020-23 :

Copy and Paste
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10. Do you agree that Andhra Pradesh is the destination for “Green Energy Projects”?
Ans :
Power sector is a critical infrastructure element required for propelling the growth and for the smooth functioning of the state economy.
An efficient, resilient and financially robust power sector is essential for growth and poverty reduction. The availability of reliable, quality
and affordable power helps in the rapid Agriculture and Industrial development and the overall economy of the state.
Strengthens of the State :
(a) Steadily working towards its mission of Decarbonised Economy, Andhra Pradesh houses four solar parks of the government of India.
(b) The State has 9 GW of renewable power installed capacity and carries a potential for setting up 38 GW in solar, and 44 GW in wind
power plants. 29 locations identified for Pumped Power Houses.
(c) Hydro Storage Power Projects, carrying a potential of 32.2 GW.
(d) It is also home to the world’s largest integrated Renwable Energy Storage Project.
(e) The state has set aside 80,000 acres of land for solar, wind and solar wind hybrid projects.
(f) Opportunity for industries in Green Energy Sector, Solar PV Manufacturing, manufacturing green hydrogen and green ammonia.
Andhra Pradesh faces three principal challenges: (1) how to expand reliable energy access and use while maintaining affordability for
consumers and financial stability for the DISCOMs; (2) how, at the same time, to integrate increasing shares of renewable energy in a secure
and reliable manner; and (3) how to reduce emissions to achieve ambitious social and climate objectives while meeting economic goals.
The following are the Major Initiatives taken by the AP Government to achieve ‘Power House of India’.
(1) Establishment of Andhra Pradesh Green Energy Corporation Limited to produce 10,000 MW of Solar Power.
(2) Andhra Pradesh Solar Power Policy 2018-23 has set the target of an additional Solar Power Generation of 5,000 MW and promotion of
Solar Parks with the help of ‘Central Solar Energy Corporation of India’. Providing subsidies to ‘Solar Roof Top Projects’ and encouraging
the farmers to adopt ‘Solar Pump Sets’.
(3) Andhra Pradesh Wind Power Policy 2018-23 promotes clean energy and extends various subsidies to Wind Power Mills.
(4) Andhra Pradesh Wind - Solar Hybrid Power Policy 2018-23. The main objective of the Policy is to provide a framework for promotion
of large grid connected wind-solar PV systems for optimal and efficient utilization of transmission infrastructure and land, reducing the
variability in renewable power generation and thus achieving better grid stability.
(5) Andhra Pradesh Renewable Energy export policy 2020.
Andhra Pradesh has significant potential each for Solar, Wind and Wind -Solar Hybrid generation. The state has ideal conditions for
setting up Renewable Energy projects for export of energy to other states.
(6) AP Pumped Storage Power Promotion Policy 2022.
Objectives :
To facilitate 120 GW renewable energy projects.
1. To facilitate lease of 5 lakh acres of potential land in the state of Andhra Pradesh to renewable energy export project developers.
2. To attract private investments to the State and improve local economy.
3. To promote setting up of renewable energy equipment manufacturing facilities in the State.
4. To generate additional revenue to the State Government.
(6) Pumped storage power: Pumped storage hydropower (PSH) is a type of hydro electric energy storage. It is a configuration of two water
reservoirs at different elevations that can generate power as water moves down from one to the other (discharge), passing through a
turbine. The system also requires power as it pumps water back into the upper reservoir (recharge). For this purpose the state government
made an allocation of 1 TMC of water from Gorukallu Reservoir. The project located at Gummitham Tanda is undertaken by Greenko
Group. The project envisages clean energy round the clock. The world’s largest integrated renewable energy storage power project in
Kurnool district.
The project would help decarbonization to the tune of 50 GWh of electricity, daily offsetting 15 million tonnes of CO2 emissions per
annum, which is equivalent to replacing 5 million cars with electric vehicles or 2.5 million hectares of afforestation. The 5230 MW
project is a first of its kind in single location energy storage project with wind, solar, hydro capacities. The state government has
allocated 4766.28 acres of land to this project. The total project cost is Rs.15,000 crores.
(7) Green Energy Projects : In a major boost to the green energy sector, the Andhra Pradesh government approved investments worth Rs.
81,000 Crore with an aim to generate direct employment creation for 20,130 people across the state.
1. Indosol Solar Pvt Ltd – Ramayapatnam, Nellore District.
2. Astha Green Energy Ventures Pvt Ltd – Vongimalla Village, Veeraballi taluka, YSR District - Pumped Hydro Storage Power Project.
3. Shirdi Sai Electricals Limited – Somasila & Yerravaram - Pumped Hydro Storage Power Project.
4. Aurobindo Realty, Infrastructure Ltd – Owk, Nandyal District & Singanamala, Anantapuramu - Pumped Hydro Storage Power Project.
5. Indosol Solar Pvt Ltd – Paidipalem, YSR District
6. AM Green Energy Private Limited – Nandyal, Kurnool - Solar and Wind Project.
7. Greenko AP01 IREP Pvt Ltd – Nandyal, Kurnool - Pumped, Solar, Wind Project.
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11. Explain the objectives and Mission or 9 Pillars of the New Industrial Policy 2023-27?
Ans :
The Andhra Pradesh Government have introduced the AP Industrial Development Policy (IDP) 2023-2027 identifying 12 thrust sectors
to propel economic growth, with manufacturing as the high priority sector that would create large scale employment.
Objectives :
I. To ensure major flow of FDI to Andhra Pradesh by emerging as a preferred global investment destination, facilitate large-scale domestic
investments and promote growth of local enterprises thereby enhancing the contribution of industry in the State’s economic development.
II. To maintain the State’s leadership in Ease of Doing Business in India and to ensure best-in-class investor facilitation.
III. To provide necessary impetus to exports of goods and services from the State and place Andhra Pradesh among the top three states of
India in terms of export performance.
IV. To generate employment opportunities through rapid industrial development and enhance employability of local manpower through
appropriate skill development programmes.
V. To enhance the spirit of enterprise, innovation, and growth among local entrepreneurs, facilitate a conducive start-up ecosystem in the
State and promote expansion, technology upgradation and growth of micro,small and medium enterprises.
VI. identifying, encouraging and supporting entrepreneurial talents from among women, minority, and underprivileged communities.
The Policy Direction for Operatationalising Mission Components – the Nine Pillars of Accomplishment :
Mission Pillasr of Accomplishment Initiatives Envisaged in the Policy

Mission Component - I Economic Growth Enhancing Industrial ecosystem, increasing flow of FDIs & domestic
investments by providing best-in-class industrial Infrastructure, enhanced
connectivity & better logistics, EoDB & investment facilitation, accelerating
growth of MSMEs.
Mission Component - II Port-Led Development Growth Poles in port region, secondary Growth nodes in VCIC, CBIC and
HBIC, improved rail & road and inland waterway connectivity to ports,
development of new ports.
Mission Component - III Enhanced Logistical Ecosystem Increased penetration of road & rail network, development of inland
waterways & coastal shipping, logistic parks, other infrastructure support
including warehousing and cold-chain facilities.
Mission Component - IV Developing world Class, Public Private Partnership in developing Industrial Parks / Infrastructure,
Ready to Occupy Industrial Private Industrial Parks, MSME Parks and establishment of Flatted Factory
Spaces Spaces and Standard Design Factories in existing & new Industrial Parks/
Estates.
Mission Component - V End-to-End Investor Facilitation YSR AP ONE - the multifaceted capability, integrating services across all
Government Departments and providing end-to-end investor facilitation.
Mission Component - VI Employment Generation Thrust on growth and productivity among MSMEs, revitalising stressed
MSMEs, factoring employment in the definition of, and support to Large,
Mega & Ultra - Mega projects, creation of online job-market portal for
trained, industry ready manpower in the State.
Mission Component - VII Strengthening Employable Practical training programs for the youth after acquiring basic qualifications
Manpower base from technical institutions, reorientation of skill development programs
based on regular assessment of industry-needs, programs for mindset
reorientation and soft-skill development.
Mission Component - VIII Entrepreneurship Development Entrepreneurship Development & mentoring programs, Start-up Zones,
& Reinforcing Start-up Culture Start-up Incentives, Start-up Financing Ecosystem.
Mission Component - IX Bringing women, Minority and Identifying and extending end-to-end handholding support to entrepreneurs
Under Privileged Segments to belonging to women, minority and under privileged segments.
the Forefront of Economic
Development Process
Conclusion :
Abundance of natural resources, well developed industrial ecosystem, strong base of skilled manpower, peaceful industrial relations,
cost-competitiveness, and global connectivity, coupled with focussed infrastructure development and investor friendly policies of the
Government make Andhra Pradesh the natural choice as a destination for investment.
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12. Explain the Fiscal Incentives under New Industrial Policy 2023-27?
Ans :
MICRO AND SMALL ENTERPRISES :
(1) Investment Subsidy :
(a) General : 15% limited to Rs. 20 lakhs
(b) BCs/ Minorities : 15% limited to Rs. 20 lakhs
(c) Women : 15% limited to Rs. 30 lakhs
(2) Interest Subsidy :
(a) General : 3% of the Interest Rate limited to Rs. 25 lakhs for 5 years
(b) BCs/ Minorities : 3% of the Interest Rate limited to Rs. 30 lakhs for 5 years
(3) Net SGST :
Net SGST Reimbursement : 100% Reimbursement for 5 years for all categories, subject to 100% of FCI (excluding land cost)
(4) Other Incentives
(a) Reimbursement of Stamp Duty : 100% of stamp duty for all categories
(b) Reimbursement of Land Conversion Charges : 25% limited to Rs. 10 lakhs
(c) Reimbursement of Fixed Power Cost : Reimbursement of electricity duty at Rs. 1 per unit for 5 years
(d) IP acquisition Cost Reimbursement : 75% limited to Rs. 10 lakhs
(e) Technology Upgradation & Acquisition Cost Reimbursement : 50% limit of Rs. 25 Lakhs
(f) Quality Certificate : 100% of cost limited to Rs. 3 lakh
(g) Piped Water Supply : As per the prevailing rates before the revision
INDUSTRY RELATED SERVICE SECTOR

(a) Capital subsidy only for approved industry related service activites : 15% up to Rs. 20 Lakhs
(b) Investment Subsidy / SGST : 15% of FCI limited to Rs. 2.5 Crore in 5 equal annual instalments (or) 50% net SGST for 5 years.
(c) IP acquisition cost Reimbursement : 75% limited to Rs. 10 lakhs
(d) Technology Upgradation & Acquisition Cost reimbursement : 50% limit to Rs. 10 lakhs
(e) Piped Water Supply : As per the prevailing rates before the revision.
LARGE INDUSTRIES :
Means Investment in Plant and Machinery should be above 50 crores and upto Rs. 1,000 crores.
Reimbursement of net SGST :
Cat I – 100% Net SGST for 5 years upto 100% FCI (Fixed Capital Investment) (excluding land)
Cat II - 100% Net SGST for 5 years upto 75% FCI (excluding land)
Cat III - 100% Net SGST for 5 years upto 50% FCI (excluding land)
Piped Water Supply : As per the prevailing rates before the revision.
MEGA AND ULTRA MEGA INDUSTRIES

Means Investment in Plant Machinery should be above Rs. 1,000 crores, upto 3,000 crores and employment above 1,000.
Ultra Mega Industry means investment above Rs. 3,000 crores and employment above 3,000.
TAILOR – Made Incentives
Note : Additional Reading :––
Category Status of Industrial Development Districts Covered

Category - I Less Industrialised Ananthapuramu, Annamayya, Bapatla, Dr. B.R. Ambedkar Konasema, Kurnool,
Krishna, nandyal, Parvatipuram Manyam, Srikakulam, Y.S.R. Kadapa, Alluri
Sitharama Raju paderu.
Category - II Moderately Industrialised Chittoor, East Godavari, West Godavari, Eluru, Guntur, Kakinada, N.T.R., Palanadu,
Prakasam, SPSR Nellore, Sri. Sathya Sai, Vizianagaram,
Category - III Highly Industrialised Anakapalli, Tirupati, Visakhapatnam
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13. Explain the Special Incentives given to SC, ST Entrepreneurs under Jagananna Badugu Vikasam
/ New Industrial Policy 2023-27?
Ans :
Government introduced a new scheme 'Jagananna YSR BaduguVikasam' as part of special industrial policy 2020-23 under which a series
of incentives have been announced for the benefit industrialists from SC and ST communities in order to achieve inclusive growth through
economic upliftment by providing a special package of incentives for Entrepreneurs belonging to Scheduled Castes and Scheduled Tribes. The
Scheme shall be applicable to all manufacturing units, specified service activities and transport sector.
Micro and Small Entreprises (Manufacturing and Services) :

1. Stamp Duty : 100% reimbursement of Stamp duty and transfer duty. 100% reimbursement of Stamp duty for Lease of Land/Shed/
Buildings and mortgages and hypothecations
2. Land Allotment : 50% rebate in land cost limited to 20 lakhs in Industrial Estates/Industrial Parks for MSEs. 25% Land conversion
charges for the industrial use limited to 10 lakhs for MSEs. At least 16.2% and 6% of the developed land reserved for SC and ST
Entrepreneurs respectively in the industrial parks.
3. Power : Fixed power cost reimbursement @ 1.50 per unit for 5 years from the date of commencement of commercial production
4. Investment Subsidy : Applicable for manufacturing (45% subsidy on Fixed Capital Investment (maximum of INR 1 crores)). Applicable
for service and transport sectors (45% subsidy on Fixed Capital Investment (maximum of INR 75 Lakhs))
5. Interest Subsidy : Interest subsidy up to 9% over and above 3% for 5 years from the date of commencement of commercial production
for MSEs.
6. Net SGST : 100% reimbursement net SGST to MSEs or up to 100% fixed capital investment realization 75% net SGST to Medium
enterprises or up to 100% fixed capital investment realization. 50% net SGST to Large enterprises or up to 100% fixed capital investment
realization
7. Quality Certification / Patent Registration : 100% of the cost incurred for Quality Certification /Patent Registration limited to Rs.3.0
Lakh for MSEs
8. Seed Capital Assistance : 25% of Machinery cost as Seed Capital Assistance for first generation entrepreneur for establishing Micro units
Transport Sector :
Capital Subsidy of 45% upto Rs. 75 lakhs
Medium Enterprises Manufacturing Sector :

(1) Investment Subsidy / SGST : 15% of FCI limited to Rs. 2.5 Crores in 5 equal annual instalments (or) 50% net SGST for 5 years
(2) IP acquisition cost Reimbursement : 75% limited to Rs. 10 lakhs
(3) Technology Upgradation & Acquisition Cost reimbursement : 50% limit to Rs. 25 lakhs
(4) Piped Water Supply : As per the prevailing rates before the revision.
Large Enterprises :
(1) Reimbursement of Net SGST :
Cat I – 100% Net SGST for 5 years upto 100% FCI (excluding land)
Cat II – 100% Net SGST for 5 years upto 75% FCI (excluding land)
Cat III – 1005 Net SGST for 5 years upto 50% FCI (excluding land)
(2) Piped Water Supply : As per the prevailing rates before the revision
Mega and Ultra Mega Industries :

(1) Tailor - made incentives as required
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14. Outline the Exports of Andhra Pradesh and Measures taken to boost the Exports?
Ans :
Andhra Pradesh is a resource rich state with access to seaports, and thus has huge potential to promote exports from the State. The
State has improved its exports performance from Rank 7 in 2019-20 to Rank 4 in 2020-21 with an increase in exports to USD 16.8 Bn in the
2020-21, a growth of 13.8% compared to the previous year. In 2021-22 the exports are USD 19.3 Bn.
The major exports commodities are chemicals and allied products, animal products, transportation items, metals etc.,
The AP State contribute to 5.8% of national exports and Exports will be doubled by 2030, increasing State share to 10%. To achieve
the target, AP has to show a cumulative growth rate of 8% annually, for which a clear well defined and SMART action plan is essential to on
board all the stakeholders involved.
Measures taken to boost the exports :

(1) The State Government have issued Andhra Pradesh Export Promotion Policy 2022-27.
(2) District as Export Hub : Government of India have identified 3 districts and products. viz., Visakhapatnam - Marine Products, Engineering
works and Health Service, East Godavari - Coir & Coir Products, Cashew and Nursery Plants and Guntur - Chillies, Turmeric and
Cotton Yarn to implement the scheme in 1st Phase.
(3) State level trade carnival (VanijyaUtsav) was conducted at Vijayawada where export promotion councils (EPCs), export institutions
were called to interact with exporters and potential prospective exporters for knowledge exchange. At district level Exporters conclaves
were organized to create aware ness on export opportunities at district level.
(4) Multi Modal Logistic Park : GoAP is developing Multi-Modal Logistics Parks at Anantapur and Visakhapatnam. These strategic
locations, with the existing industrial clusters, access to raw materials and proximity to domestic demand centers, will facilitate trade
both within the state and with neighboring states. These MMLPs will have seamless connectivity with highways, railways, airports and
seaports and offer world-class logistics competitiveness to investors while serving vast stretches of Indian hinterlands and reducing the
cost of logistics drastically, make our manufacturers globally competitive and there-by our exports, scalable.
(5) Industrial Development Policy 2023 : Invisages the following measures to promote exports
(a) Logistical and Infrastructure Support : (1) Providing and Maintaining state-of-the-art road connectivity to Seaports and Airports
(2) Developing inland waterways as an alternate channel for cargo movements to teh seaports from major manufacturing / export
processing centres. (3) Facilitating / promoting logistical infrastructure including warehousing and cold chain networks, and
Container Freight Stations in Private sector / PPP Mode.
(b) Partnering with Export Promotion councils for supplementing and enhancing the support to the export - sector
(c) Training and Capacity Building Programs : Conducting training and capacity building programs to enable micro, small and
medium enterprises to explore and tap the export potential of their products.
(d) International Outreach : Promoting and supporting participation of MSMEs in International Trade Fairs and Exhibitions so as to
enable them to reach out to a wider canvas of buyers. The MSME Development Corporation will play the lead role in this regard.
(e) Grievance Redressal : A grievance redressal cell will be established at the Directorate of Industries & Export Promotion to proactively
address the grievances of exporting enterprises, and to ensure timely redressal of the same.
Conclusion :
Exports are one of the fundamental drivers of growth for any economy. It can influence state economy, investments, level of resources
utilisation. A robust export data is beneficial as it leads to increase in job opportunities, enhances foreign currency reserves, boosts
manufacturing and also increases government's revenue collection. It is also a good means by which an economy can bring itself out of
the recession phase.
63
INFRASTRUCTURE DEVELOPMENT
Infrastructure Development in Andhra Pradesh : Transport, Energy and ICT infrastructure -
Bottlenecks - Government Policy - Ongoing Projects
1. Discuss the Important Projects in Andhra Pradesh in relation to Infrastructure Development?

Ans :
Infrastructure affects growth through several supply and demand-side channels. Investments in energy, telecommunications, and
transport networks directly impact growth, as all types of infrastructure represent an essential input in any production of goods and services.
In addition, infrastructure can also reduce the cost of delivered goods, facilitate the physical mobility of people and products, remove
productivity constraints, and increase competitiveness.
(1) Ports Development – Port LED Industrial Growth :
A.P Maritime Development Plan : Andhra Cost line has a potential of generating US$ 20billion Blue Economy by 2035. Creates wide
range of employment and inventive business opportunities and Various project generating verticals identified are commercial Ports
(Major and on-Major Ports), Captive Ports / Jetties, Coastal Cargo Movement, Hub and distribution, ship building, Ship Repairing and
Ship recycling, Dry Ports / MMLPs, Fishing Harbours and Fish landing centers, Marine Tourism, Port Based Industrial Clusters /
Corridors / Renewable Energy Plants, Seabed extractive activities, marine Biotechnology and Bio prospecting, desalination Plants
Water intake and outfalls, support infrastructure / Last Mile connectivity, Land Monetization and Coastal protection & Marine litter
management etc. At present there are 6 strategically located Sea Ports and 4 More Sea Ports are currently under development. 9
Fishing Harbours are being developed as Mini Ports.
(2) Airports : After reorgnisation of the state, State Government with the help of Airport Authority of India started expansion and
modernization of the Airports. For this purpose State Government shall provide the fallowing facilities – (1) Land should be acquired
by the State Government and handed over to AAI (Airport Authority of India), (2) Free Electricity, Drinking Water Facility, (3) The
expenditure cost of Security Maintenance will be in State Government Account.
(a) State has registered a growth rate of 37% in Civil Aviation Passengers, at the same time India Registered 12% growth rate in the last
5 years. (b) State Register a share of 1.6% in India's civil aviation traffic. (c) State got 2nd Rank in terms of number of Airports. (d) In
civil aviation sector for every $ 100 investment economy will get a benefit of $ 325. For every 100 direct employments 610 indirect
employment can be generated.
State Government established BAIACL (Bhogapuram International Airport Company Limited). This company is going to undertake
the construction of Green Field Airport in Bhogapuram. Area of 1910 Acres has been allotted for passenger services, 293 acres allotted
for commercial purpose. BAIACL (previously known as APADCL – Andhra Pradesh Airports Development Corporation Limited).
(3) Railway Zone : Copy and Paste
(4) Green Energy Power Projects : Copy and Paste
(5) Highways and Roads Development : In Andhra Pradesh Roads are classified into 3 categories :
(1) National Highways – 8163 km.
(2) R and B Roads – 46234 km.
(3) Panchayati Raj Roads – 79962 km.
To promote the development of Road network the Government has initiated the following projects. They are :
(a) Andhra Pradesh Road Development Corporation :This corporation is the nodel agency for construction of State Level Roads
and Bridges.
(b) Andhra Pradesh Road Sector Project :The project was approved by Government of India and World Bank for widening and
strengthening and maintaining certain an important and high traffic roads.
(c) Andhra Pradesh Disaster Recovery Project :East Godavari, Visakhapatnam, Vizianagaram and Srikakulam districts were affected
during Hudhud Cyclone. To strengthen the damaged roads Government has modernized 250 km length under this project.
(d) National Cyclone Risk Mitigation Project : The project is taken up in 9 Coastal Districts, with an aim to provide necessary
infrastructure by construction of New Roads/ Bridges or improvements of the existing damaged roads to the habitations and
cyclone shelters to facilitate evacuation of people and transportation of relief material quickly and uninterruptedly during Cyclones
or Heavy / Flash floods.
(6) Inland Water Ways : Inland Water Ways 4 was identified from Kakinada to Puducheri, a length of 1095 kms. In 2023 State Cabinet
decided to initiate ‘AP Inland Water Ways Authority’ to promote this transportation. Potential Inland Waterways with a length of 1555
kilometers are currently under development. During the British Era. The Kadapa - Kurnool Canal and Backingham Canal, Vijayawada
to Chennai, were constructed for Inland Transportation. At present there is no Indland Transportation in our state.
(7) Industrial Corrirdors, Special Economic Zones : Copy and Paste
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2. Andhra Pradesh E-Governance Initiatives

Ans :
Electronic governance or e-governance can be defined as the usage of Information and Communication Technology (ICT) by the
government to provide and facilitate government services, exchange of information, communication transactions and integration of
various standalone systems and services.
(1) APTS (Andhra Pradesh Technology Services)
(2) e-Seva
(3) Rajiv Internet Village
(4) Jawahar Knowledge Centres
(5) A.P. SWAN (State wide Area Network)
(6) SAPNET (Society for A.P. Network)
(7) E-Procurement
(8) A.P. Online
(9) Mee Seva
(10) Andhra Pradesh Broadband
(11) A.P. State Data Centre
(12) e-Pragathi
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3. Andhra Pradesh Information Technology Policy 2021- 24 :
Ans :
Vision : The vision of the Policy is to “transform the ITE & C department into a revenue center to achieve self-sustenance and to
generate large scale local employment in IT/ IT Enabled Services sector, with specific focus on innovation and emerging technologies,
and ensure public data security.”
Objectives :
i. Transform the ITE&C department into a self-sustainable department through revenue generation.
ii. Creating an industry-ready talent pool and fulfill the demand for skilled IT manpower.
iii. Facilitating the creation of co-working space and satellite centers to enable seamless start of operations for IT units.
iv. Promoting innovation and startups through appropriate incentives and interventions.
v. Promoting cutting-edge and emerging technologies such as quantum computing, Artificial Intelligence (AI)/Machine Learning
(ML), Data Analytics, Blockchain, Augmented Reality (AR)/ Virtual Reality (VR), Fintech etc.
vi. Encourage the adoption of latest global trends in IT business models such as “Work from Home”.
vii. Provide a boost to “Gig economy” by supporting freelancers in the IT space.
viii. Enable quick approval for investment proposals and reduce the time taken to commence operations.
ix. Engage with the State’s formidable global diaspora to invest in Andhra Pradesh and contribute to its talent pool.
Fiscal incentives for attracting IT industry :
i. Employment creation incentive :
a) A one-time incentive of 10 percent of annual salary capped as below:
1) INR 1,00,000 per local employment position for high-end IT jobs created in the State.
2) INR 75,000 per local employment position for mid-level IT jobs created in the State.
3) INR 50,000 per local employment position for entry-level jobs created in the State.
b) Women/ SC/ ST/ BC enterprises shall be eligible for a one-time incentive of 15 percent of annual salary capped as below:
1) INR 1,50,000 per local employment position for high-end IT jobs created in the State.
2) INR 1,12,500 per local employment position for mid-level IT jobs created in the State.
3) INR 75,000 per local employment position for entry-level IT jobs created in the State.
c) The criteria for availing the eligible employment incentives in three tranches will be defined in the operating guidelines.
ii. ‘Work from Home’ incentives :
A one-time incentive of up to INR 20,000 per employment position to cover expenses related to remote working hardware,
software, bandwidth costs etc. for IT firms in Andhra Pradesh with remotely working employees within the State.
iii. Boost to gig economy :
a) ITE&C department will create an exchange/ platform for Andhra Pradesh based freelance workers, for such workers to register.
b) Reimbursement of 50 percent of cost of buying IT hardware such as laptop, internet dongle, furniture, up to INR 20,000 per
gig worker, subject to proof of executing gigs worth at least INR 3 lakhs from Andhra Pradesh in the financial year.
iv. Quality Certification :
50 percent reimbursement on quality certification charges up to INR 5 lakhs per firm will be provided to IT firms.
v. Measures for startup ecosystem development :
The following measures are envisaged for assisting startups:
a) Training programs for entrepreneurs with business ideas, to address knowledge gaps in understanding target market, business
plan, tax laws, insurance, financial planning, promoting business, sales, service etc. would be imparted.
b) Access to market reports and surveys for early stage startups would be provided.
c) Government shall launch a flagship startup promotion scheme for early stage startups, ‘Accelerate Startups in Andhra Pradesh
(ASAP)’, offering plug and play office space, access to a network of investors, mentors and the State’s trained talent pool.
These provisions and other common shared services shall be offered to startups on reasonable charges.
d) A fund of funds of INR 100 Cr. shall be co-created in partnership with a consortium of Venture Capitals and Private Equity
firms and universities, for funding startups in the State.
e) Incubation centers shall be set up in areas notified by the Government from time to time.
f) The department will strive to conduct hackathons and workshops for startups based in the State, in collaboration with
Universities and colleges, to ensure continuous innovation, and to encourage the development of innovative solutions for
Government to Citizen (G2C), and Government to Business (G2B) services and other Government use cases.
g) The startups which work on the application of emerging digital technologies such as AR/ VR, AI/ ML, IoT, Data Science,
Robotics, 5th generation (5G) cellular network, Serverless Computing, Natural Language Processing, Blockchain etc., and
those which address the primary sectors will be provided priority in allotment of plug and play space, access to talent pool,
incubation centers, Centers of Excellence, prototyping labs etc.
vi. Power tariff :
All IT companies operating in Andhra Pradesh shall be eligible for industrial tariff towards their power consumption.
66
vii. Transport subsidy :
A transport subsidy of INR 500/- per employment position per month shall be provided for a period of 2 years, capped to a
maximum of INR 10 lakhs per firm.
viii. Incentives to training institutes :
Training institutes registered in the State and having a physical premises in the State shall be offered a one-time incentive of INR
10,000/- per local full-time direct employment position facilitated in the State.
***
4. Andhra Pradesh Electronic Policy 2021-24
Ans :
Electronics manufacturing sector is poised for rapid growth in Andhra Pradesh. The State is consistently featuring in the top 3 destinations
in India for mobile manufacturing. Major global firms have started operations in the State and the State is also receiving multiple investment
proposals for setting up of electronics manufacturing firms. Moreover, the State’s electronics exports are starting to rise, with the State
clocking USD 70 million exports in 2018-19 alone.
Objectives : The policy aims to create large scale direct employment and create a robust Electronics ecosystem during the policy
period, by way of:
(1) Focus on upstream value chain
(2) Creating large scale employment in the thrust areas of Mobile phones, Consumer electronics, Industrial electronics, Electronics
components and Strategic electronics.
(3) Creating a robust infrastructure for the Electronics manufacturing industry in the form of Electronics Manufacturing Clusters
along with plug and play manufacturing sheds
(4) Capitalizing on growth in domestic consumption
(5) Creating industry ready talent pool and fulfilling demand for skilled human resource
(6) Focusing on fast growing sub-sectors such as mobile phones, consumer electronics, strategic electronics across traditional
assembly and electronic component manufacturing including batteries, screens, camera modules, Printed Circuit Boards (PCBs)
among many others
(7) Promoting innovation and R&D in the industry and ensuring continuous technology up gradation .
Fiscal Incentives under the Policy (For Zone A and Zone B) :
(1) For Zone A and Zone B
(a) Stamp duty
• Reimbursement of 100 percent stamp duty, transfer duty, and registration fee paid on sale/lease deeds on the first transaction
only.
(b) Investment subsidy
• 20 percent of Fixed Capital Investment (FCI) up to INR 20 Cr. for Electronics industries.
• 25 percent of Fixed Capital Investment (FCI) up to INR 25 Cr. for Electronics industries categorized as SC/ ST/ BC/ Women
enterprises.
(c) SGST reimbursement
• 100 percent net SGST reimbursement for a period of 8 years.
(d) Power tariff (Only for Zone A)
• 24x7 uninterrupted power supply.
• Fixed power cost reimbursement of INR 1.00 per unit for a period of 5 years from the date of commencement of commercial
production.
• Fixed power cost reimbursement of INR 1.50 per unit for a period of 5 years from the date of commencement of commercial
production for electronics industries categorized as SC/ ST/ BC/ Women enterprises.
(2) Additional incentives in Zone B: For firms setting up in Zone B, the below incentives will be provided additionally:
(a) Power tariff
• 24x7 uninterrupted power supply.
• The power tariff shall be invoiced at competitive rates of INR 4.50 per unit.
(b) Logistics subsidy
• Reimbursement of 25 percent of cost incurred on domestic transport up to a sum of INR 50 lakh per annum for 5 years.
• Given increased interest by global Electronics industry firms in relocating their existing plants to India, as a special
consideration, a reimbursement of 50 percent of cost incurred on import of manufacturing equipment, up to a sum of INR
2 Cr. shall be offered.
(c) Interest subsidy:
• To provide interest subsidy on term loan @ 5 percent up to INR 1.50 Cr. per year for a period of 5 years.
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 Other Important Points :
(1) Mega Industry means providing direct employment for atleast 4,000 people or a fixed investment of Rs. 500 crores.
(2) Kopparthi Electronics Manufacturing Cluster will be developed as best in class EME.
(3) Andhra Pradesh Electronics & Information Technology Agency (APEITA) will act as a nodal agency for implementing the
Policy. Further, Consultative Committee for IT and Electronics Industry (CCITEI) shall be responsible for the granting of
incentives.
 Customized incentive package :
(1) Customized incentive package: In order to be eligible under this package, the Electronics manufacturing unit/ company has
to generate an employment of more than 4,000 people or invest INR 500 Cr. or above in the State.
(2) Special incentive package for Semi conductor and LCD fabs: The Government of Andhra Pradesh will work with large
investors with an investment over INR 7,500 Cr. (USD 1 Billion) to create a global fab manufacturing destination. The
government will make efforts to not only fast track such investment proposals through a special committee setup but also
ensure that these investors are ensured infrastructure and skilled manpower in a rapid manner.
***
5. Explain the brief outlook of State IT Sector and The Infrastructure Facility to Promote IT Industry
in Andhra Pradesh?
Ans :
IT-based services are vital for any organization to increase productivity, makes business process flow easily, and grow efficiently and
economically in this competitive world. the IT industry has not only impacted the economic growth of Andhra Pradesh, but it also has
made the government more accessible and competent.
Andhra Pradesh IT sector scenario :
(a) Number of IT companies 487.
(b) Number of Startup companies 159.
(c) Annual IT exports Rs. 800 crores (approx)
(d) Total employment 45,000 (approx)
(e) IT incubation centres are located in Tirupati, Ananthapuram, Kakinada and Visakhapatnam.
(f) Visakhapatnam, Tirupati, Amaravathi, Mangalagiri will be developed for the IT sector.
(g) At present Visakhapatnam is the centre of State IT Sector.
IT Infrastructure :
To provide infrastructure which suits the global needs for setting up of IT/Electronic companies in the sunrise state of Andhra Pradesh.
The Government has initiated the development of infrastructure like IT parks at Kapulapadda in Visakapatnam and in Tirupathi to
attract the global players in IT industry. The proposal to develop Information Technology Investment Region in Vishakhapatnam
region in an area of 40.4 Sq.Km with a total outlay of Rs.10,357Cr is under active consideration of GoI.
i) IT Infrastructure (Plug & Play Office Space); Government has Identifying the ready offi ce spaces for IT companies to commence
operations. The following are made operational Vishakhapatnam: 9, 24,640 Sft which provides 11,550 Seats.
Amaravathi: 8, 27,298 Sft which provides 10,340 Seats.
Tirupati: 1, 68,250 Sft which provides 2100 Seats.
Anantapuramu : 20,000 Sft which provides 250 Seats.
Before bifurcation L&T Infocity formerly known as Medha Towers had providing 2 Lakh Sft with 2,500 seats.
ii) IT Layouts: Mangalagiri IT Park was developed over an extent of 22 acres and it was occupied by the IT Companies and approvals
are in progress to declare 35 acres of land for IT Park. Kapulauppada IT Park, Phase-1 with an extent of 158 acres is under development
stage. Amaravathi IT Park with an extent of 200 acres in Ainavolu and Sakhamuru was earmarked and is under development stage.
Before bifurcation Kakinada IT SEZ in 25 Acres (Cyient operating from here in 5 years) and Vishakhapatnam: IT SEZs in Hill 1,2,3 and
Ghambeeram.
iii) Electronic Manufacturing Clusters (EMC) : Government has proposed for setting up of three (3) electronic Manufacturing Clusters
(EMC), of which one (1) has got fi nal approval, one (1) has got in– Principal approval and other application is under appraisal. In addition
to this, private developers are developing two (2) Electronic Manufacturing Clusters (EMC) which has got fi nal approval from GoI.
iv) IT SEZs : Andhra Pradesh is actively involved in setting up of IT SEZs in the state. The state has 2 SEZ dedicated to IT and is looking
to set up additional 4 SEZs in Vijayawada, Visakhapatnam, Chittoor, and Anantapuramu.
Initiatives in collaboration with Government of India post 2014:
i) NIELIT (National Institute of Electronics and IT): To impart the employability to rural graduates in both IT and Electronic
Sectors. GoI has sanctioned two centres in Tirupati and Srikakulam.
ii) SAMEER (Society for Applied Microwave Electronics Engineering and Research): GoI has sectioned the R&D Centre on
Environmental Effects in Vishakhapatnam (Gambheeram) with an investment of Rs.80 crores.
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AP Economy– Sectional test – Model Answers
1.Write a short note on industrial corridors and their role in the economic
development of the state.
Introduction:
Three out of 11 industrial corridors in India namely the Visakhapatnam Chennai
industrial corridor (VCIC), Chennai Bengaluru industrial corridor (CBIC), And
Hyderabad Bengaluru industrial corridor (HBIC) pass through the state. These
industrial corridors pass through more than 15 districts of Andhra Pradesh and
embrace the entire state as its influence zone.
Visakhapatnam- Chennai industrial corridor:
● This is a part of the East Coast economic corridor which is the first
coastal economic corridor in the country.
● It is aligned along the golden quadrilateral and covers more than 800
kilometers of Andhra Pradesh coastline.
● It is one of the most strategically located industrial corridors in the
country- a network of six seaports and six airports integrates trade,
commerce, and industry with the Asia pacific region.
● National Highway 16 provides the transportation backbone for VCIC
Chennai Bengaluru industrial corridor (CBIC)
● This is close to Krishnapatnam port. Krishnapatnam Industrial area of

14,000 acres is identified as one of the three market driven notes
proposed as part of CBIC
● CBIC enables regional agglomeration of industry in Tamil Nadu
Karnataka and Andhra Pradesh Covering a length off about 560
kilometers
● The CBIC region comprises a combined population of 48 million
constituting approximately 3.7% of the total population.
Hyderabad Bengaluru industrial corridor (HBIC)

● It connects central parts of India with southern states. It will have an
influence area spread across the states of Telangana Andhra Pradesh and
Karnataka
● The first industrial node of HBIC is located in Orvakal, Kurnool district
with an extent of 9800 acres. Another 6000 acres have been set apart
for two more nodes at Hindupur and Anantapur.
Contribution to economic development:
● VCIC not only plays a critical role in driving India's economy but also
integrates the Indian economy with the global production networks of east
and Southeast Asia.
● The augmentation of power as part of the industrial corridors project
improves the industrial productivity of the region as a whole and attracts
new investments to the region
● Road widening across these corridors improves the socioeconomic status
of the habitants by bettering physical connectivity enhancing the
employment opportunities catalyzing changes in Agri and crop patterns
enhancing the value of lands providing impetus to shift of livelihood
practices
● Under the VCIC project climate resilient initiatives such as rejuvenation of
mudasarlova catchment area in Visakhapatnam assist in carbon
sequestration leading to lower carbon levels in the environment.
● As part of the VCIC development program, gender equality and social
inclusion campaigns are being carried out.
● By 2035 manufacturing sector output in VCIC jurisdiction is expected to
increase to rupees 4.2 trillion; labor productivity of key industries is
expected to increase to Rs 2.6 million per employee; share of women
employed in manufacturing sector is expected to increase to 33%.
Conclusion:
These corridors will not only promote industries but also create substantial
urban infrastructure and contribute to the overall economic development of this
state.
2.Analyze the challenges faced by the power sector which have been
aggregated due to the bifurcation of this state.
Answer :-
The bifurcation of the state has only increased the problems of the power sector
due to allocation of power based on consumption of FY 2006-07 instead of
allocation as per geographical location or population criteria resulting in severe
power deficit in the residuary Andhra Pradesh.
Key issues plaguing the power sector:
● Increase in generation capacity is not commensurate with the increase in

demand.
● Decrease in plant load factor of thermal power plants due to adding lack
of adequate quantity of coal and supply of poor quality coal leading to
frequent outages particularly during monsoon season
● Increase in (AT&C) Aggregate technical and commercial losses which stem
from poor or inadequate infrastructure or on account of theft or bills not
being generated or honored.
● Costs revenue gap: the difference between Discoms average cost of supply
and average revenues realized is high
● The quantity and quality of coal supplied to the thermal plants have
significantly come down resulting in loss of generation
● In the recent years peak energy deficit has increased to 6.5% against a
national average of 4.5%
● The performance of power sector has decreased drastically due to financial
mismanagement- acceptance of financial bailout package of Government
of India to bail out this sick AP Discoms
● AP Discoms are under deep financial stress due to weak coverage of cost
through revenue, non-received of subsidy weakening of capital structure
with increasing resilience on short-term debt
● Improper maintenance of distribution infrastructure
● Increase in power purchase from private sources
● There was no long-term power procurement planned by the government in
the absence of comprehensive plan government did not take any initiative
to book the limited transmission corridor available across southern grid
and the entire transmission corridor was booked in advanced by the
neighboring states of Karnataka and Tamil Nadu
● Non adherence to standards of performance prescribed by APERC for
APDISCOMS.
● Lack of integrated planning between generation transmission and
distribution. The transmission capacity addition was not in line with the
generation capacity edition resulting in lack of evacuation options for new
generation plants
● The gas-based power plants have seen a consistent decline in generation
owing to shortage of gas
● Failure of Krishnapatnam ultra mega power project due to rise in prices of
imported coal.
● Non obligation of renewable power purchase obligation by Discoms. As per
APERC regulations, APDISCOMS are mandated to purchase 5% of their
energy consumption from renewable sources. However less than 2% of
energy consumption was made from renewable sources
● Failure of government to get 100% capacity allocation from NTPC Simhadri
stage-II. Only 46% capacity has been allocated to Andhra Pradesh
Way forward:
● There is an urgent need to come out with a detailed road map of steps to
be taken to address the issues of the power sector in this state.
● The short to long term planning is required for augmenting the power
capacity commensurate with the increase in demand by having a common
integrated planning framework.
● Promotion of green energy with the comprehensive solar and wind policy
● Rationalization of coal block linkages
● Implementation of agricultural feeder separation to provide uninterrupted
power supply to domestic and industrial consumers in rural areas
● Implementation of industrial feeder segregation to provide uninterrupted
power supply to industrial consumers
● Rolling out scheme to introduce solar agricultural pumps
Additional Information
The government of Andhra Pradesh was one of the pioneers in the power sector
reforms in 1998. Since 2004 the performance of the power sector in Andhra
Pradesh has not kept up with the development in the other sectors. Lack of
capacity was a result of various reasons like long lead time in setting up power
plants, delay in allocation of fuel (coal and gas), lack of integrated planning
involving all the three arms of the power sector- generation transmission and
distribution. This resulted in an increased energy deficit in Andhra Pradesh over
the years (18% by 2013).
Recent power sector reforms:
● Andhra Pradesh has become the 2nd state (first being Madhya Pradesh) to
undertake power sector reforms as stipulated by the union Ministry of
Finance. accordingly, the state has transferred electricity subsidy through
direct benefit transfer to farmers. makes the state eligible to mobilize
additional financial resources equivalent to 0.15% GSDP.
● reforms aim at creating transparent and hassle-free provision of power
subsidy to farmers and preventing leakage.
● the reforms also aim at improving the health of Power Distribution
companies by alleviating their liquidity stress in sustainable manner
3.What are the common sources of renewable energy? Discuss the role of
renewable energy resources in order to maintain environmental
sustainability with special reference to Andhra Pradesh.
Answer :-
Renewable energy in Andhra Pradesh:
The government of Andhra Pradesh has given top priority for promotion of
renewable energy power projects in particular solar power projects in line
with the policies of Government of India. Of the total installed capacity
which stands at around 25GW, of which non fossil fuels contribute 8.9GW.
Cumulative renewable energy capacity installed: 8826 MW

From solar power: 4132 MW
From wind power: 4080 MW
From small hydropower projects: 105 MW
From Biomass, Bagasse, municipal and industrial waste: 500 MW
Andhra Pradesh an ideal location for setting up solar power projects:
AP has large agriculture consumption constituting 24% of the total energy

consumption of this state. Solar power can help shift the agriculture load
and meet the power demands during the day.
factors for ideal location:
● Availability of 300 sunny days in a year with solar insulation of more
than 5kwH/m2/day.
● Efficient and strong evacuation infrastructure that can facilitate
distributed generation
● Data and wind power potential in Andhra Pradesh is concentrated
in Rayalaseema built
Government efforts to promote renewable energy:
● Andhra Pradesh has positioned itself in the achiever category in this
state energy efficiency index 2020.
● Andhra Pradesh renewable export policy 2020: aims to establish
120 GW capacity renewable projects by 2025.
● Andhra Pradesh solar power policy 2018-23: it targets a total
solar power capacity addition of 5000 megawatts in the next five
years; development of solar parts with necessary utility
infrastructure; to deploy solar powered agriculture pump sets and
make power requirements of farmers during the day.
● Andhra Pradesh wind power policy 2018-23: it aims to promote
widespread usage of wind power, attract private investments for the
establishment of large wind power projects.
● Andhra Pradesh wind-solar hybrid power policy 2018-23: it aims
to promote large grid connected wind solar PV systems for optimal
and efficient utilization of transmission infrastructure and land,
reducing the variability in renewable power generation and thus
achieving better grid stability. the policy also aims to encourage new
technologies involving hybrid renewable energy plants and other
emerging technologies like energy storage systems
● The world's largest integrated renewable energy storage project
(IRESP) with the capacity of 5230 MW is being developed in this state
which is scheduled to be commissioned by the end of 2023.
● Two green hydrogen hubs are proposed in Andhra Pradesh at
Visakhapatnam and Krishnapatnam.
● A shelf of seven projects with an estimated potential of 18,000
megawatts to set up solar wind and solar wind hybrid power
projects.
● 29 locations have been identified for pumped hydro storage power
projects carrying a potential of 32 GW
● The state is looking to create the world's largest integrated renewable
energy storage project with an installed capacity of 4230 megawatts
and storage capacity of 10GWh.
● the state is also making its way to become a leader in clean mobility
and looking to convert public transport buses in and all government
vehicles into electric vehicles in a time bound manner
Recently held under Pradesh global investor summit 2023 also attracted huge
investments in the renewable energy sector. Reliance Industries agreed to invest
in 10 gigawatts of renewable solar energy. Andhra Pradesh is well positioned to
drive India's sustainable energy growth in the coming years.
4.What are the key externally aided projects which have been implemented
in Andhra Pradesh and discuss their contribution to the state’s
development.
Answer:-
Externally aided projects play a significant role in financing public sector
investments. In Andhra Pradesh externally aided projects (EAP) are being
executed at a cost of Rs 25,000 crores. These projects are carried out with the
aid of the New Development Bank (NDB), the Asian infrastructure investment
bank (AIIB), the Japan bank for international cooperation (JBIC), and the World
Bank.
Externally aided projects are:
1. Andhra Pradesh community based tank management project: This
project aims at:
a. Improving agricultural productivity with the assistance of selected
tank-based producers.
b. Improving the management of tank systems. This is carried with the
assistance of the World Bank.
2. Andhra Pradesh Rural Road connectivity project:

It provides connectivity to unconnected habitations of 250+ population
(Project-1) for which a USD 666 million agreement was signed on February
25, 2019.It is carried with the assistance of Asian infrastructure
investment bank.
3. AP Urban Water Supply and Septage management Improvement

Project:
The objective is to provide safe drinking water through piped water supply
to 3.3 million people in this state. It is worth USD 570 million And is
carried with the assistance of an Asian infrastructure investment bank.
4. The ‘24X7 Power for All: A USD 800 million agreement was signed on
June 22, 2017 and USD 21 million has been disbursed so far. It is co-
financed with the World Bank and AIIB.
5. Municipal Development Project - objective of the project is to help and
improve urban services in Andhra Pradesh and the capacity of ULBs to
sustain and expand urban services.
6. Road Sector Project - The development objective of the project is to

provide better quality, capacity and safe roads to users in a sustainable
manner through enhanced institutional capacity of the Andhra Pradesh
government in the road sector.
7. Rural Water Supply and Sanitation Project: To improve Rural Water

Supply & Sanitation Services through progressive decentralization,
Community participation and enhanced accountability with a target to
benefit 21,00,000 rural population includes 400 tribal inhabitations.
8. Water Sector Improvement Project (APWSIP): To improve irrigation

Service delivery on a sustainable basis so as to increase productivity of
irrigated agriculture in the Nagarjuna Sagar Scheme. It also strengthens
the state’s institutional capacity for multi-sectoral planning, development
and management of its water resources.
9. A.P. Irrigation & Livelihood Improvement Project: To increase the

Agricultural production in the State of Andhra Pradesh by constructing
and rehabilitating irrigation facilities interspersed in the State and
improving Water management and agriculture practices, thereby
enhancing agricultural income and alleviating the poverty.
10. AP Rural High Voltage Distribution System Project To facilitate

the reliability and quality of power supply to agricultural services and the
reduction of distribution losses
Though there are issues as Being relatively expensive compared to the
domestically financed projects, overall, these externally aided projects play a
critical role in the development of this state and they have helped to address
some of the key challenges faced by the state. Appraisal for AP Rural Connectivity
(Roads & Bridges) project worth USD 457 million is underway.
5.Discuss the measures taken by Andhra pradesh government to encourage
sericulture in the state.
Answer:
Andhra Pradesh is the second largest producer of silk in India. The state
produces Mulberry silk and Tasar silk. Mulberry silk is grown in almost all the
districts in the state, especially in Anantapur, Chittoor, Prakasam, Kadapa and
Kakinada districts. Whereas Tasar culture is forest-based industry reared in the
forests of East Godavari & Alluri Sitarama Raju districts.
As sericulture assures an average income of Rs. 1.35 lakh/acre/annum, the

Govt. of Andhra Pradesh has renewed its strategy in encouraging sericulture
which includes:
a. Expanding cultivable area under sericulture through RBKs

b. Intensive training to the farmers through RBKs
c. Dovetailing with MGNREGA
d. Creating demand for cocoons through establishment of multi-end reeling
units
e. Integrating of reeling and twisting activities to increase profit margin
f. Implementation of e-marketing in cocoon transactions
Schemes
a. Centrally sponsored schemes like SILK SAMAGRA, Rashtriya Krishi Vikas

Yojana
b. Convergence schemes like MGNREGA
c. Benefits to silk reelers are being transferred on DBT mode
d. Dr. YSR pattubadi program is being organized for progressive sericulture
farmers at RBKs
e. Andhra Pradesh state sericulture and development institute Hindupur is
focused on developing silkworm breeds/hybrids suitable to varied biotic
and abiotic stress in Andhra Pradesh with primary objective of evolving
new races and producing international grade cocoons
Challenges
a. High initial investment for establishment of mulberry garden and silkworm

rearing sheds
b. Health hazards in reeling sector
c. Lack of GST exemption on silk machinery
d. Unorganized nature of sericulture hampers scaled interventions by the
government.
e. Poor credit flow due to lack of adequate institutional credit system
With potential to generate huge employment for women and augment income
for farmers along with availability of eco-friendly farming options make
sericulture a lucrative opportunity to enhance rural income
6.Discuss the mineral resources of Andhra Pradesh. Analyze the sand policy
of Andhra Pradesh.
Answer:-
Andhra Pradesh is the leading producer of apatite, barytes, ball clay, dolomite,
garnet, laterite, mica, limestone and vermiculite. The State is the sole producer
of asbestos. It accounts for 94% barytes, 78% kyanite, 10% corundum, 61% ball
clay, 20% limestone, 41% mica and 33% garnet resources of the country. Andhra
Pradesh is endowed with the internationally known black, pink, blue and
multicoloured varieties of granites. Krishna-Godavari basin areas in this State
have emerged as new promising.
The new policy aims to: -
● at addressing the issues of indiscriminate mining of sand, black
marketing, hoarding, skyrocketing and prices, artificial supply shortage
and cross-border transportation.
● supplying sand at affordable prices and
● generating more revenue through its sale.
Features:
● Sand reaches in state have been categorized into three:

1. Srikakulam, Vizianagaram, Visakhapatnam, east Godavari
2. West Godavari, Krishna Guntur Prakasam
3. Nellore Anantapur Chittoor Kurnool Kadapa
● AP Mineral Development Corporation (APMDC) Ltd will undertake sand
quarrying and supply sand to the customers on behalf of the government.
● Based on the capacity of water bodies, the government has classified
excavation under categories I to V. water bodies that fall under category I,
II, III will be regulated by the district administration food consumption
within the district for domestic needs i.e., for housing schemes for
government sponsored weaker sections will be free of cost with nominal
charges. sand excavation in river streams falling under categories IV, V
will be subject to Andhra Pradesh minor minerals concession rules 1966,
Environmental Protection act and other environmental rules and
regulations.
● All vehicles carrying sand from sand reaches to stockyards and
subsequently from stockyards to end consumers will be equipped with
GPS devices and registered with APMDC.
● The sand will be supplied to the end consumer from the specified
stockyard at the price fixed by the government plus transportation
charges.
● Customers are given the option to visit the mining or supply point just to
check the quality of the sand and then pay.
● Tribal societies will continue to handle sand in scheduled areas. this will
take place under the supervision of ITDA or district collector.
● Government to appoint central government agencies or private contractor
for sand mining and supply.
● No mining on patta lands, mining only on open lands.
● Mining through dredging of all water bodies including barrage.
● Free sand for people to carry on Bullock carts.
● Government to fix sale price of sand at every supply point.
Thus, the new sand policy 2019 strives to achieve the objectives of sustainable
sand mining, complaints to environmental regulations, ensuring affordable
prices of sand, raising public revenues to the state exchequer.
Though the new sand policy has certain positive provisions it seems to overlook
the environmental concerns given the rich river and coastal ecology of Andhra
Pradesh.
● Also, as per the principle of sustainable sand mining the quantity of sand
mined from a stretch in a year should not exceed the quantity deposited.
this rule seems to be absent in the current policy
● There is also a need for conduction of environmental impact assessment
before allowing for quarrying or excavation and a significant assessment
of how much sand can be mined has to be obtained.
● Though the policy seems to be designed to address the issues of
distributing send to genuine users and to avoid large number of
intermediaries who aim to cash in on sand excavation there is more to be
done.
7.Andhra Pradesh became the first State to adopt a Gender Responsive
Budgeting from the year 2021-22. Discuss the key elements of State Action
plan 2021-25 and the core action steps taken in their implementation so
far.
Answer :-
The gender budget is an exercise that applies a gendered-lens to the allocation
and tracking of public funds. In 2005, India started releasing a gender budget
along with its Union budget.
The Government of Andhra Pradesh has consistently advanced a number of

gender mainstreaming projects over the years, in line with national objectives.
Andhra Pradesh as a State has demonstrated its commitment to SDG goal 5 by

submitting a Gender Budget Statement, an essential part of the Gender
Budgeting Mechanisms. Gender-responsive budgeting from FY 2021– 22 led to
an expenditure of Rs.47,283.21 Crore.
A five-year State Action Plan 2021–2025 was developed with the help of
numerous departmental stakeholders and UN Women Resources.
The goals of the State Action Plan 2021-2025 are:
• Make policy frameworks stronger

• Establishing institutional frameworks and systems for planning and budgeting
activities connected to GRB.
• Building a strong monitoring system to track outputs and outcomes from the
gender-based initiatives and inputs offered through the existing GRB activities.
• Taking an overall inventory of GRB over the previous 7 years.
• Increasing the capacities of officials through a nodal training agency.
The State Gender Budget Plan took a step further by identifying and developing
Parts A and B services and initiatives across all State Departments.
Programs classified as Part-A programs gave women and girls 100% of the
budgetary allotment, while programs classified as Part-B gave women and girls
30% to 99% of the funds.
The following intervention areas were to be included in each department's

gender-based budget for FY 2022–2023:
a) Support programs and welfare measures;

b) Beneficiary-oriented programs that focused on self-
employment or financial aid; and
c) Permanent infrastructure creation, with a specific allocation of the new
infrastructure for women and girls as beneficiaries.
Core action steps taken by the State of Andhra Pradesh until date:
● Adoption of a Gender Budget;

● Identification of a Nodal Department for Gender Budgeting;
● Establishment of Gender Budget Cells in Each Department;
● Involvement of Stakeholders in Gender Mainstreaming Activities for the
Development of the State Action Plan 2021–2025;
● Training Needs Assessment and Training Calendar for Capacity Building
of State Officials to Assist with the Gender Budget Process and Programs
● Gender survey to identify service and program gaps
● The implementation of programs and financial resources to promote
statewide gender mainstreaming initiatives in Andhra Pradesh's 13
districts.
● Implemented a monitoring dashboard to successfully track the SDG
accomplishments, while focusing future budget and resources to
adequately address the achievement goals set forth for Gender and other
SDGs.
● Established the mapping of all Gender Mainstreaming Schemes and
Services to the Larger Sustainable Development Goals of 2030.
The implementation of Gender Responsive Budget in the state is yielding results

conspicuously through its performance in various SDG indicators. For instance,
according to the performance monitoring framework on APROMS, nine of Andhra
Pradesh's 13 districts are leaders, three are performers, and one is in the
aspirant stage for SDG -5 Gender equity. With a score of 88.52, the East
Godavari district achieved the highest SDG5 objective performance. While all of
the SDGs' outcomes are interrelated and correlated, progress made toward SDG-
5 has the potential to significantly affect SDGs 1 and 2's outcomes. The
remaining ten districts are at the aspiring stage, leaving just three of the thirteen
districts in the performance level for SDG-1. Every district in the state is in the
SDG goal 2 aspirant stage. The advancement of SDG-1, SDG-2, and SDG-5 will
all have a linked impact on these places.
8. Analyze the performance of the flagship Schemes, Dr. YSR Free Crop
Insurance and Dr. YSR Sunna Vaddi Panta Runalu with reference to their
budgetary allocations in the present and previous budgets under the
Agriculture Budget head.
Answer :-
Dr. YSR Free Crop Insurance:
The State government has launched "Free Crop insurance scheme" on

08.07.2019 under Navaratnalu programme from Kharif 2019 onwards. During
Kharif 2019, the farmers have insured their crops just by paying a token amount
of Rs.1/-and the remaining farmer share of premium was also transferred to the
State Govt liability. State Govt paid an amount of Rs.971.23 Cr to the Insurance
companies (Rs.467.87 Cr paid on behalf of the farmers share and Rs.503.36 Cr
regular 50% state share). With a view to cover each and every acre under Crop
Insurance scheme, the State Govt implemented Dr YSR Free Crop Insurance
(from Kharif 2020).
● AP is the only State to extend Free Crop insurance. Earlier, the farmers
faced financial burden for payment of premium within the timelines and
even the process of enrolment was very complicated for coverage under
Crop Insurance scheme. With a view to reduce financial burden on the
farmers, and to improve penetration, the present Government has taken
an initiative and announced implementation of Dr YSR Free Crop
Insurance Scheme.
● Under Dr. YSR Free Crop Insurance Scheme, all farmers are automatically
enrolled on the basis of e-crop booking only, without paying a single rupee
premium.
● Timely settlement of crop insurance claims has also been given top
priority. Insurance compensation of Rs.2977.82 Cr. for Kharif 2021 was
paid before commencement of the next season i.e., Kharif, 2022 (in June
2022).
● At the request of the Central Govt; the State has agreed to jointly
implement Dr. YSR Free Insurance with PMFBY during 2022-23 in its
current form.
● Andhra Pradesh became the first state to achieve Universal coverage, and
has also been specially congratulated by the Central government on
various platforms. Other states are also thinking of providing full
insurance coverage
● From 2019 to till date, an amount of Rs, 6684.84 Cr. of claims were settled
to the farmers.
● Free crop insurance under Yield based scheme is being implemented both
by Central & State Govt. for the year 2022-23. The Weather-based scheme
is being implemented by the State Govt. only.
● The State Government takes the full financial burden of insurance without
the farmers having to pay any premium. The State Government is fully
responsible for getting the insurance compensation to every farmer who
has suffered a loss before the start of the next season.
● For the financial year 2023-24, a budget of Rs.1600Cr. has been
allocated for implementation of Dr. YSR Free Crop Insurance Scheme.
Dr. YSR Sunna Vaddi Panta Runalu:
The Government of AP is implementing the "YSR- Sunna Vaddi Panta Runalu

(SVPR)" Scheme w.e.f., Kharif 2019 Interest subsidy for the crop loans Rs.1.00
lakh will be transferred directly to the accounts of farmers who have repaid their
loans in time (maximum period of one year from date of disbursement of crop
loan).
● The state government’s intention is to bring discipline among the banks
and the farmers should not approach private lenders for credit relieving
them from financial burden. In that direction the farmers who availed crop
loans up to Rs. 1 lakh and settled interest subsidy regularly, immediately
after completion of the crop season would become eligible and the farmers
share of interest subsidy will be disbursed directly into farmers accounts.
● Interest subsidy amount of Rs. 160.55 Cr. pertaining to Rabi 2020-21 &
Kharif 2021 is disbursed directly into bank accounts of 8.22 Lakh farmers
during 2022-23.
● An interest subsidy amount of Rs 1442.66 Cr. has been spent since the
inception of my Govt. from 2019.
● An amount of Rs.500 Cr. is proposed for the year 2023-24 budget to
implement Dr. YSR Sunna Vaddi Panta Runalu scheme.
9.Analyze the role of Public Distribution System (PDS) and its

implementation in Andhra Pradesh.
Answer:
Public Distribution System in India has been one of the most crucial elements
in food policy and food security system in the country. The Public Distribution
System has close links with food security for the vulnerable segment of
population including children, lactating mothers, adolescent girls, Old age
people etc.
● Andhra Pradesh government has been implementing the electronic

modules in PDS such as, linkage of Aadhaar with ration card data-base,
allotment of commodities under e-PDS and distribution of commodities
through electronic point of Sale (ePoS) cum e- weighing devices at the
doorstep of beneficiaries.
● At present, approximately 90% cardholders are availing Essential
Commodities every month. At present 29,794 Fair Price Shops are
functioning and on an average each FP Shop serves 495 cards/families.
● There is one FP Shop for every 1423 persons in the state. On September
6th 2019, Government launched a program in Srikakulam on pilot basis
to supply rice in packed form under PDS at the doorsteps of the eligible
households through village/ward volunteers to ensure good quality and
quantity and to arrest diversion of stocks.
● This scheme will be extended to all districts from April, 2020. The
village/ward volunteers recruited by the state government for every 50
household clusters have started speedy and efficient delivery of all
government services at the doorstep of citizens in all villages and
municipalities.
● At present a quantity of 2.31 lakh MTs of Rice is being allotted every month
under National Food Security Act, 2013 for distribution at subsidized
[email protected]/- per kg to cater the needs of 1.47 crore Below Poverty Line
families.
● In 2019-20, 72,75,060(72.75lakh) Tonnes Paddy, value of Rs.13244.41

crores were procured benefitting 634386(6.3lakh) farmers.
● Home Delivery of Essential Commodities: The state government has
decided to deliver essential commodities under PDS at the doorsteps of
common man in every village and town through village/ward volunteers
but was discontinued later.
● As of now Mobile Dispensing Units (MDU 's) are being utilized for the
doorstep delivery of services. A total of 9260 MDU's were engaged by the
A. P. State Civil Supplies Corporation Limited
● GOI is allocating 1,54,148 MTs of rice and 1870 MTs of wheat per month
to 268.23 lakh members. However, State Govt. is distributing rice to all
the 420.83 lakh members covered in 1.47 crore BPL cards duly incurring
the expenditure additionally.
● Total requirement of Rice under PDS is 2,30,778 MTs. Deficit quantity of
76,630 MTs of rice is being procured from the open market under DCP @
Rs.32,000/- per MT. Apart from Rice, Sugar, Red gram dal, Wheat Atta,
Salt, Ragi, Jowar and Double fortified salt is being distributed to the card
holders under PDS on subsidized rates.
● Recently, India’s first-of-its-kind Central Command Control Centre to
monitor Public Distribution System (PDS) in the country from
procurement of grains to their distribution to households has started
functioning in Vijayawada, realizing the goal of SMART – PDS.
● A high-level committee chaired by NITI Aayog member Ramesh Chand and
comprising officials from the ministries of agriculture and food, and
members of the ICMR will recommend inclusion of millets to the grains
supplied under PDS.
● The fortified rice is being distributed in the seven districts under the PDS
and will be supplied to all districts from April 2023” as per the orders of
AP State food commission.
But due to irrational selection of beneficiaries covered under the National Food
Security Act AP government was forced to spend Rs 5,527 crore on ration for 56
lakh families not covered under Pradhan Mantri Garib Kalyan Ann Yojana
(PMGKAY). The Central government has been requested by the State to take up
the Case for benevolent consideration and increase the beneficiaries under
PMGKAY.
10.Give an overview of “Andhra Pradesh IT Policy 2021-24” and discuss its

avowed objectives.
Answer :-
The Government of AP evolved a holistic policy framework for the IT/ IT Enabled
Services sector, in AP to compete with other States which have an existing IT/
IT Enabled Services ecosystem and attractive incentives.
The vision of the Policy is to “transform the ITE&C department into a revenue
center to achieve self-sustenance and to generate large scale local employment
in the IT/ IT Enabled Services sector, with specific focus on innovation and
emerging technologies, and ensure public data security.”
● Currently, the State is home to more than 45,000 employees in the IT

sector, and a large portion of the IT workforce in the country and even
globally hail from the State.
● Andhra Pradesh is also home to highly skilled technical resources with a
host of premier Government Institutes such as Indian Institute of
Technology (IIT), Indian Institute of Information Technology (IIIT), Indian
Institute of Management (IIM), Indian Institute of Science Education and
Research (IISER), Jawaharlal Nehru Technological University (JNTU), etc.
best IT firms in the world.
Objectives
The policy aims to achieve the following objectives.
i. Transform the ITE&C department into a self-sustainable department through

revenue generation.
ii. Creating an industry-ready talent pool and fulfilling the demand for skilled IT
manpower.
iii. Facilitating the creation of co-working space and satellite centers to enable
seamless start
of operations for IT units.
iv. Promoting innovation and startups through appropriate incentives and
interventions.
v. Promoting cutting-edge and emerging technologies such as quantum
computing, Artificial Intelligence (AI)/Machine Learning (ML), Data Analytics,
Blockchain, Augmented Reality (AR)/ Virtual Reality (VR), Fintech etc.
vi. Encourage the adoption of latest global trends in IT business models such as
“Work from Home”.
vii. Provide a boost to the “Gig economy” by supporting freelancers in the IT
space.
viii. Enable quick approval for investment proposals and reduce the time taken
to commence operations.
ix. Engage with the State’s formidable global diaspora to invest in Andhra
Pradesh and contribute to its talent pool.
The cost of living across all existing Indian IT hubs is increasing rapidly while
the quality of life is dropping at a fast pace, leading to a reduced attractiveness
of such cities. In this context, cities such as Visakhapatnam, Vijayawada,
Tirupati and Anantapur are ideal locations for IT firms to either expand or shift
their operations.
In order to take advantage of this opportunity and create large scale employment,
and to foster a culture of entrepreneurship, the Government of Andhra Pradesh
notified the “Andhra Pradesh IT Policy 2021-24” addressing the current needs of
the industry.
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INCLUSIVE GROWTH
Inclusive Growth : All Andhra Pradesh government’s current schemes for inclusive growth and financial
inclusion - Public Distribution system and DWCRA
1. Define the Inclusive Growth and Outline the Current Schemes of Andhra Pradesh Government
to promote Inclusiveness?
Ans :
As per OECD (Organisation for Economic Co-operation and Development), inclusive growth is economic growth that is distributed
fairly across society and creates opportunities for all. Inclusive growth means economic growth that creates employment opportunities and
helps in reducing poverty. It also encompasses a growth process that is environment-friendly growth, moto for good governance, and helps
in the creation of a gender-sensitive society.
The government has initiated a comprehensive programme of action for sustainable and inclusive growth and development through
an integrated strategy encompassing growth, development, equity, welfare, and good governance. The State Government with a definite
vision to achieve the set goals, has introduced flagship programmes under 'Navaratnalu'
(1) Dr. YSR Rythu Barosa
(2) YSR Aarogyasri
(3) Jagananna Amma Vodi
(4) YSR Cheyutha / Asara
(5) YSR Pension Kanuka
(6) YSR Housing Scheme / Pedalandariki Illu
(7) Jagananna Vidya Deevena / Vasati Deevena / Vidya Kanuka
(8) YSR Jalayagnam
(9) Prohibition of Liquor
***
2. Explain the various initiatives taken by the Andhra Pradesh Government to achieve Sustainable
Development Goals of the UN by 2030?
Ans : The Navaratnalu and Manifesto programs of Andhra Pradesh Government have been designed by keeping in mind the 17 SDGs laid
down by the United Nations. The state has seen consistent improvements in various development parameters. The NITI Aayog SDG
India report 2020-21 ranks Andhra Pradesh among the top 5 in SDGs of “No Poverty”, “Clean Water & Sanitation”, “Gender Equal-
ity”, “Affordable and Clean Energy”, and “Life Below water”.
Goal Number 1: End Of Poverty in all its forms everywhere: To achieve this goal the state government has been implementing the
following welfare schemes like a. Social Security Pension. b. Hundred days wage employment. c. Pedalandariki Illu.
Goal Number 2: End hunger, achieve food security and improved nutrition and promote sustainable agriculture : Mid-day
meals, Poshan, Poshan+, Public distribution, Rythu Bharosa, Zero Budget natural farming.
Goal Number 3 : Ensure Healthy lives and Promote well being for All at All ages: Aarogya Sri, Aarogya Raksha, 108 and 104
services, 102 Thalli-Bidda Express, Hospital Infrastructure, ICDS, National Health Mission.
Goal Number 4 : Quality education (Ensure inclusive and Equitable Quality Education and Promote lifelong leaving
opportunities for all): Jagananna Ammvodi, Mana Badi Nadu-Nedu, English education, Jagananna Kanuka, Fees reimbursement.
Goal Number 5 : Achieve Gender Equality and Empower all women and Girls: YSR Aasara, Cheyutha, Kalyana Kanuka, 50% Reservation
for Women in government nominated posts and nominated Civil works.
Goal number 6 : (Ensure Availability and Sustainable Management of water and sanitation for all): Jalayagnam, Water grid,
Solid waste management, Wealth from waste.
Goal Number 7: Electricity (Ensure Access to Affordable, Reliable, sustainable and modern energy): 9 hours quality electricity
for agriculture, free electricity upto 200 units for SC, ST Colonies.
Goal Number 8: Decent work and economic growth: YSR Rythu Bharosa, Rythu Bharosa Kendralu, Free agriculture insurance,
Rights to tenant farmers.
Goal Number 9 : Industries, basic facilities (Build Resilient infrastructure, promote inclusive and sustainable industrialization
and Foster Innovation):YSR Navodayam, Ease of doing business, industrial corridors, skill development.
Goal Number10 : Reduction of inequalities: SC, ST, Minority, Women is the top priority in all the government welfare schemes.
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Goal Number 11: Sustainable Cities and Communities: Housing, Drinking water, Sanitation, Drainage, Greenary, etc. in urban areas.
Goal Number 12: Ensure sustainable consumption and production patterns: Cold storage units, wear houses, food processing,
LED bulbs.
Goal Number 13 : Environmental protection (Combat Climate change): Increasing the forest area and its coverage, disaster
management, pollution control.
Goal Number 14 : life below water:
Goal Number 15: Life on Land.:
Goal Number16: Peace, justice and strong institution: Village and Ward Sachivalayams.
Goal Number 17: Partnerships for the goals:
Conclusion :
NITI Aayog in its SDG Report recommended that SDGs should be integrated with the Outcome Budget Statement Model (OBS).
Andhra Pradesh aims to be a leader among Indian states to successfully integrate SDGs with OBS to plan, monitor, and evaluate the
progress of these interventions over a specified timeframe.
***
3. Explain the system of PDS in Andhra Pradesh?

Ans :
In 1957, Union Government has decided to establish permanent public distribution system in the name of "National Production cum
Distribution Scheme". Under this scheme across the India, fair price shops or ration shops shall be opened and the subsidised food grain will
be distributed among the poor people. This system is known as Public Distribution System (PDS).
The basic objective of the PDS in India is to provide essential consumer goods at cheap and subsidised prices to the consumers. So as
to insulate them from the impact of rising prices of these commodities and maintain the minimum nutritional status of our population. PDS
is the part of ‘Food Security of the Nation’.
The main agency providing Food Grains to the PDS is the Food Corporation of India (FCI), setup in 1965. The primary duty of the
corporation is to undertake the purchase, storage, movement, transport, distribution and sale of foodgrains to state governments. The corporation
also maintains buffer stocks of Food Grains.
At State level 'Andhra Pradesh Civil Supplies Corporation' is the authorised agency to conduct PDS operations. This corporation was
established in 1974, with the following objects.
a) Procurring or Collecting Food grains stocks allotted by the FCI.
b) At mandal level, maintenance of Foodgrain Stock Points. At present 439 Stock Points were maintained by this corporation.
c) Establishing fair price shops or ration shops and supplying grain to them.
d) Direct Food grains Procurement from the farmers.
e) Procurement of Rice from Rice Millers and Sugar from Sugar Factories.
f) Transparent, efficient, accountable maintenance of PDS system.
As per Government of India guidelines one ration shop should serve a minimum of 2,000 people. In Andhra Pradesh one ration shop
serves 1423 people or 488 ration cards. The total number of fair price shops in Andhra Pradesh : 29794.
No.of Cards 2022- November Percentage
White Cards 137.06 lakhs 94%
Anthyodaya Cards 9.08 lakhs 5.9%
Annapurna Cards 0.07 lakhs 0.1%
Total Cards 146.14 lakhs 100%
Conclusion :
“Why should there be hunger and deprivation in any land, in any city, at any table, when man has the resources and the scientific
know-how to provide all mankind with the basic necessities of life? There is no deficit in human resources. The deficit is in human
will.” — Martin Luther King Jr.
***
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4. What are the recent initiatives taken by the Andhra Pradesh Government to improve the delivery
mechanism of the PDS?
Ans : The public distribution system of Andhra Pradesh covers 4,24,07,705 beneficiaries. The coverage has increased from 84% to 94%
since the introduction of doorstep delivery of commodities through Mobile Dispensing Units in the entire state from February 2021.
The following are the Important Measures taken by the State Government to Strengthen PDS. They are:–
(1) YSR Navasakam - Public Distribution System : 6 September, 2019 this programme started in Srikakulam District. On the basis of
Door-to-Door Survey the beneficiaries will be identified and Government will issue new 'Food Security Cards'. Sortex Quality Rice will
be packed in 5 kg, 10 kg, 15 kg, 20 kg packets and will be distributed to the beneficiary.
(2) Mobile Dispensing Units : The State government has introduced distribution of Sortex rice and other commodities at the door step
of beneficiaries through Mobile Dispensing Units (MDUs). It is an innovative self-employment scheme to youth of SC/ST/BC/Minority
sections through government welfare Corporations to ensure sustainable growth and economic upliftment by operating the MDUs.
9260 MDUs were engaged by the A.P. State Civil Supplies Corporation Limited for distribution of scheduled commodities from fair
price shops to the doorstep of the ration cardholders.
(3) F.P. Shops portability within District : To leverage of technology to the benefit of BPL cardholders, government has introduced F.P.
shops portability system. Under this system, the ration cardholder can draw essential commodities from any ePoS enabled F.P. shop
irrespective of having his / her ration card number in Dynamic Key Register of a particular ePoS enabled F.P. shop.
(4) End - to - End TPDS Computerisation : Andhra Pradesh is the first State in the country to implement FP Shops Automation under
the Scheme “End-to- End Computerization of TPDS Operations”. Out of the total, 29,462 F.P. Shops, 28,689 F.P. Shops are functioning
through ePoS Devices-cum-Electronic Weighing Machines. 28,422 Iris readers were also integrated to ePoS devices for authentication
whenever biometric authentication is not successful.
(5) Distribution of Free Rice : To remove the financial burden of the poor beneficiaries and to ensure National Food Security Act, From
1st January 2023, State Government started distribution of Free Rice.
(6) Andhra Pradesh Government is introduced cash transfer scheme as alternate to PDS rice supply : In May, 2022. As per this
sytem, The Andhra Government would pay the cash amount to the people in place of their ratio quota of rice supplied through fair price
shops under the public distribution system. The YS Jagan Mohan Reddy government in Andhra Pradesh has come out with a direct
cash transfer scheme for the consumers who do not want to take rice under the public distribution system from fair price shops. In the
first phase, the scheme will be implemented in parts of Visakhapatnam, Anakapalle, Narasapuram, Kakinada and Nandyal districts. As
per this system, the government would pay the cash amount to the people in place of their ratio quota of rice supplied through fair price
shops under the public distribution system. The beneficiaries would have to sign a consent letter to this effect. In the areas identified for
the pilot project, the village volunteers have already started taking the consent from the beneficiaries.
(7) Rice Fortification Scheme : The scheme aims to address the issue of Anaemia, micronutrient deficiencies and reduce malnutrition.
The APSCSCL has been entrusted with fortification of rice and its distribution. The Fortified Rice Kernels (FRK) enriched with Iron,
Vitamin B12 and Folic acid will be blended with the fine quality of rice and distributed. The cost of the fortified rice is shared by Central
and State Governments @ 75% and 25% respectively. The distribution of Fortified rice scheme was initially taken in up in Bobbili and
Parvathipuram constituencies of Vizianagaram district in April,2020 and extended to cover beneficiaries ICDS and MDM schemes in
all districts of State from June, 2021.
Conclusion :
PDs can act as a robust distribution infrastructure to secure the calorific and nutritional needs of the people. If the challenges in the
system are overcome with effective reforms PDS can certainly play a pivotal role in bringing convergence and making AP’s two
important missions - food and nutrition security - successful.
***
5. What are the various Food Security Cards that are available in Andhra Pradesh? (or) Explain
the Eligibility Criteria to Obtain Food Security Cards?
Ans : At present in Andhra Pradesh the following 3 types of Ration Cards are in operation.
(1) White Ratio Card (or) Biyyam Cards : By the end of 2022 the total White Ration Cards in Andhra Pradesh : 137.06 lakhs.
Eligibility to get white ration card : (a) In rural areas annual family income shall not exceed Rs. 1,20,000/- and urban areas Rs. 1,44,000/-
. i.e., monthly income of Rs. 10,000/- and Rs. 12,000/- respectively. (b) Families having Government Employees, Retired Government
Employees and Government pensioners are not eligible for this scheme. (c) Wet Agriculture Land of 3 Acres, Dry Land of 10 Acres, put
together the agriculture land holding shall not exceed 10 acres (previously for wet land 2 1/2 acres. and for dry land 5 acres was the limit.)
(d) The family shall not hold more than 1,000 sq.yards of land in urban areas. (e) Families having four wheeler are not eligible however
this condition is not applicable to tractors, taxis and auto rikshaws. (f) Sanitation workers are eligible. (g) Income tax payers are not
eligible for this scheme.
71
(2) Annapurna : In 1999 Central Government has announced this scheme and started implementation with effect from 1 May, 2000. By
the end of 2021 in Andhra Pradesh 7000 cards by issued and East Godavari having the highest cards. (In India total cards : 10 lakhs).
The Annapurna Scheme aims at providing food security to meet the requirement of those Senior Citizens who though eligible have
remained uncovered under the national Old Age Pension Scheme (NOAPS). Under the Annapurna Scheme, 10 Kg. of foodgrains per
month are to be provided 'free of cost' to the beneficiary.
(3) Anthyodaya Anna Yojana : This scheme was launched in 25 December, 2000. This scheme involve identification of 2.5 crores poorest
of the poor (P-O-P) families from amongst the number of BPL families. Supply of 35 kgs of Food Grains per month. By the end of
2021 in Andhra Pradesh number of cards : 9.08 lakhs (in India 2.5 crore cards).
Eligibility : (1) Nomadic tribes, de-notified tribes, all primitive tribal households. (2) Legally released bonded labour, (3) Landless
agriculture labour and unorganised sector daily wage earners. (4) Single women, Widow, Single men having no family, (5) Manual
Scavengers, Street Beggers, Rag pickers, Snake Charmers, Cobblers, Destitute and other singular categories and households headed by
widows or terminally ill persons or persons aged 60 years are more. (6) Physically handicapped, persons effected with long term illness
like AIDS, (7) BPL families who are having not more than Rs. 15,000/- annual income, (8) Rural Artisans or craftmen such as potters,
viewers, blacksmiths, slum dwellers having not more than Rs. 15,000/- annual income.
No.of Cards 2022- November Percentage
White Cards 137.06 lakhs 94%
Anthyodaya Cards 9.08 lakhs 5.9%
Annapurna Cards 0.07 lakhs 0.1%
Total Cards 146.14 lakhs 100%
Conclusion :
Andhra Pradesh has been implementing the electronic modules in PDS such as, linkage of Aadhaar with ration card data-base,
allotment of commodities under e-PDS and distribution of commodities through electronic point of sale (ePoS) cum e-weighting
devices at the door step of beneficiaries through mobile dispensing units (MDUs) throughout the state. End - to - end computerization
is enabled in the Public Distribution System (PDS). Portability was also provided to draw their commodities from any of the
mobile dispensing units. Due to these reforms, the state has ensured delivery of essential commodities to the entitled households
as per the scales indicated under the Nationla Food Security Act, 2013.
***
6. Discuss the Steps taken by the Andhra Pradesh Governments to achieve the object of ‘Financial
Inclusion’?
Ans :
Financial inclusion may be defined as the process of ensuring access to financial services and timely and adequate credit where needed
by vulnerable groups such as weaker sections and low income groups at an affordable cost.
(1) YSR Cheyuta : This programme was launched on 12 August, 2020. Under the scheme financial assistance is extended to the women
belonging to BC, SC, ST and Minority Communities who are in the age the group of 45 – 60 years with a sum of Rs. 75,000/- in four
phases (in four years) through various Welfare Corporations. From 2020-21 onwards Rs. 18,750 shall be paid to the eligible beneficiaries.
To create access to enhanced livelihood opportunities, income generation and wealth creation at the household level, on a sustainable basis
leading to better standards of living. Total beneficiaries 24.95 lakhs and 2022-23 state budget allocation for this scheme is Rs. 4235.95
crores. The shops are being set up by tying up with renowned companies HUL, ITC, P&G and Reliance to provide sustainable livelihoods
to the down-trodden women.
(2) YSR Asara : This programme was launched on 11 September, 2020. The objective of YSR Aasara program is to reimburse the entire
bank outstanding loan amount as on 11.04.2019 directly to the Groups Savings accounts of the SHG women in four installments from
financial year 2020-21 through the respective welfare Corporations. This will create access to enhanced livelihood opportunities, income
generation and wealth creation at the household level, on a sustainable basis leading to better standards of living of poor SHG members
both in rural and urban areas. Under this program, Government proposed to reimburse the entire outstanding Bank Loan of Rs.
25,516.56 Crs as on 11 April 2019, in four installments starting from 2020-21. An amount of Rs. 12,758.28 Crs was disbursed to 7.96
lakhs SHGs SB Accounts under two installments(F.Y: 2020-21 & 2021-22) in both Rural & Urban areas. Total beneficiaries 78 lakhs.
2022-23 annual budget allocations for this programme Rs. 6,400 crores.
(3) 'YSR Sunna Vaddi' The Government of Andhra Pradesh with a view to encourage better repayment culture and to reduce interest
burden on the rural and Urban poor on SHG Bank loans continuing interest subvention through YSR “Sunna”Vaddi programme. The
SHGs which availed bank loans and had outstanding loan as on 11.04.2019 upto Rs.3 lakhs are eligible for YSR “Sunna”Vaddi.
72
(4) E.B.C. Nestham : Government have decided to implement “EBC Nestham”from the Financial Year 2021-22, for all other communities
who are economically backward other than SC/ST/BC/Minority. The women in the EBC communities, such as Brahmin, Vysyas, Velama,
Kshatriya, Kamma, Reddy, Muslims, who are in the age group of 45 to 60 years also need economic upliftment. In order to create
additional sources of livelihood and income generating opportunities to assist EBC women with Rs.15000/- per annum for the next three
years, i.e. 2021-22, 2022-23, 2023-24, amounting to Rs.45,000/-.
(5) YSR Kapu Nestham : This scheme was launched on 24 June, 2020. Under the scheme, financial assistance to women belonging to
Kapu Community (Kapu, Telaga, Balija and Ontari sub-castes) is provided by granting Rs.75,000/- (@ Rs.15,000/- per annum over a
period of 5 years) to empowerfinancially Kapu women aged in between 45 years and 60 years to enhance their livelihood opportunities
and living standards.
(6) YSR Vahana Mitra : This program was launched on 4th June, 2020. AP government is providing Rs.10,000/- financial assistance to
auto, taxi and maxi driver/owners yearly under YSR Vahana Mitra scheme. For maintenance expenses, and for obtaining insurance and
fitness certificates among other documents. Approximately 3.9 lakh drivers will get the benefit under this scheme.
(7) YSR Law Nestham : This program is launched in 2019 December, to provide financial assistance of Rs.5,000/- per month as a stipend
to Junior Lawyers. This stipend will be paid during the 1st three years of practise.
(8) YSR Netanna Nestham : This programme was launched on 17 June, 2020. The scheme provides financial assistance to Rajakas,
Nayee Brahmins and Tailors belonging to all communities who are living below poverty line. The financial assistance would be Rs.
10,000/- per annum. In 2021-22 the total beneficiaries are 81703 families.
(9) Jagananna Chedodu : This scheme was launched on 10 June, 2020. The scheme provides financial assistance to Rajakas, Nayee
Brahmins and Tailors belonging to ALL communities who are living below poverty line. The financial assistance would be Rs. 10,000/- per
annum. The total beneficiaries are 2.98 lakhs and the budget allocation for the year 2022-23 is Rs. 300 crores. White Ration Card
Holders are eligible for this annual financial assistance.
(10) Jagananna Thodu : This scheme was launched on 25 November, 2020. The total beneficiaries are 14.16 lakh.
Eligibility :
(a) Has to complete 18 years of age.
(b) Income Limit for rural areas - Rs. 10,000/- per month, for urban areas Rs. 12,000/- per month.
(c) Limit for agriculture land - Wet : 3 acres, Dry : 10 acres, together not exceeding 10 acres.
Jagananna Thodu Scheme extend Financial Assistance of Rs.10,000/- to the Chiruvyaparrulu & Street Vendors engaged in vending on
footpath selling Vegetables in Push carts, selling tiffin and food items on the roadside. This Scheme also covers Traditional Artisans
who are engaged in lacework, Bobbili Veena, Brace craft articles etc.Government is providing financial assistance up to Rs.10000/- at
0% (SUNNA VADDI) interest to the eligible. The scheme is implemented and monitored by Department of Gram Volunteers / Ward
Volunteers and Village Secretariats /Ward Secretariats.
***
7. Explain the Structure of Self - Help Groups in Andhra Pradesh? (or) How the Women Empowerment
can be achieved through Self - Help Group Mechanism?
Ans : Women empowerment is empowering the women to take their own decisions for their personal growth and development as well as
social development. Empowerment of women would mean encouraging women to be self-reliant and financially independent.
Women's empowerment has become a significant topic of discussion in development and economics. Economic empowerment allows
women to control and benefit from resources, assets, and income. It also aids the ability to manage risk and improve women's well-being. The
humble beginning of Women Empowerment started in Andhra Pradesh under the DWCRA, Velugu, Indira Kranthi Padam Schemes. At
present the women groups are called ‘Self Help Groups’.
A SHG is a community-based group with 10-25 members. Members are usually women from similar social and economic backgrounds,
all voluntarily coming together to save small sums of money, on a regular basis.
They pool their resources to become financially stable, taking loans from their collective savings in times of emergency or financial
scarcity, important life events or to purchase assets. The group members use collective wisdom and peer pressure to ensure proper end-use
of credit and timely repayment. In India, RBI regulations mandate that banks offer financial services, including collateral free loans to these
groups, on very low interest rates.
This allows poor women to circumvent the challenges of exclusion from institutional financial services. This system is closely related
to that of solidarity lending, widely used by microfinance institutions. Beyond their function as savings and credit groups, SHGs offer poor
women a platform for building solidarity. They allow women to come together and act on issues related to their own lives including health,
nutrition, governance and gender justice.
Every Group has to fallow 5 rules. They are (1) Regular Meetings, (2) Regular Savings, (3) Regular Internal Lending, (4) Regular
Repayments, (5) Maintenance of Books of Accounts.
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At present in Andhra Pradesh around 111 lakh women are enrolled in SHGs. Of which 88.64 lakhs in rural areas and 22.64 lakhs in
urban areas. The total number of SHGs in our state is 9.62 lakhs. Total savings : Rs.8624 crores; Corpus funds : Rs.10,741 crores.
SERP is encouraging SHGs in rural areas and MEPMA is encouraging SHGs in urban areas. Self Help Groups have taken up many
programs for livelihood. Some of them are -
1. Medical Shops under Sanjeevani or Pradhan Mantri Jana Aushadi, 2. Food points, 3. School sanitation management, 4. Dairy
industry, 5. Grossery Shops, 6. Animal husbandry, 7. Grain collection , 8. Tailoring, 9. Training in Tailoring
Bank Linkage : SHG Bank Linkage programme aims to enable the poor households in accessing adequate formal credit at their
doorsteps through their membership in SHGs with a cheaper rate of interest. AP state stood in first position in the country with 30% of
National share with 99% recovery under SHG Bank Linkage programme with yearly bank linkage disbursement of around Rs.20,000 Crores
in both Rural and urban areas During the Financial Year, 2021-22, an amount of Rs. 12,078.40 Crores was disbursed to 2,50,058 Rural SHGs
up to November, 2021 against the targets amount of Rs.18,460 Crores to 5,04,093 Rural SHGs.
YSR Sunna Vaddi : The SHGs which availed bank loans upto Rs.3 lakhs are eligible for YSR “Sunna” Vaddi.
Conclusion :
Strong institutional platforms of the poor empower the poor households and enable them to build-up their own human, social,
financial, and other resources. They, in turn, enable them to access their rights, entitlements and livelihoods opportunities, including
services (both from the public and private sectors). The social mobilization process enhances solidarity, voice, and bargaining power
of the poor. These processes enable them to pursue viable livelihoods based on leveraging their own resources, skills, and preferences
and come out of abject poverty.
***
8. Explain the Structure and Functioning of Streenidhi Credit Cooperative Federation Limited
Ans :
This scheme was launched on 15 September, 2011. Stree Nidhi credit cooperative Federation Ltd., was promoted by the Government
of Andhra Pradesh and Mandala Mahila Samakhyas to provide Livelihood Finance to SHG women. Stree Nidhi provides timely and affordable
credit to the poor SHG women as a part of the overall strategy of SERP for poverty alleviation.
Streenidhi Credit Cooperative Federation Limited, Andhra Pradesh operates in Rural as well as Urban areas with an objective of
providing livelihood loans to poor SHG women in transparent and easily accessible manner through SHG federations i.e. VO/SLFs and MS/
TLFs. SHGs are comfortable to access hassle free credit from Stree Nidhi as and when they require and therefore do not see any need to
borrow from other sources at usurious rates of interest. Stree Nidhi is in a position to extend credit to the SHG women even in far flung areas
of the state within 48 hours to meet credit needs for Livelihood activities. As credit availability is linked to grading of MS and VOs, community
is keen to improve functioning of the same to access higher amount of credit limits from Stree Nidhi.
Different types of women's groups in the state : 1. DWACRA groups - 1982, 2. Velugu groups - 1998, 3. Self Help Groups - SHG
The present president of Stree Nidhi Cooperative Federation - Bala Saraswati
The structure of Stree Nidhi is as follows: 1. Members (Individual Women)
2. Groups - SHG
3. Village Organiser - VO
4. Mandal Samakhyas / Urban Samakhyas / Slum Samakhya
5. Establishment of Stri Nidhi with 13 District / 7 Tribal Samakhyas.
General Interest Rate on loans is 13% per annum, of which 2% will be charged as marging and service charges i.e., the net effective
interest rate is 11% per annum. As a part of state government 'Sunna Vaddi Loans'. This institution is also providing interest free loans to the
beneficiaries.
In addition to the loan services, Streenidhi also provides deposit services for resource mobilization, loan insurance, works as Business
Correspondent to all Banks and also as a Channelizing Agency for financing livelihood activities under SC/Tribal Sub Plans, IWMP, NRLM
etc., and is emerging as a gate way for transferring funds to the target group under different programmes.
Streenidhi extend LH loans to SHG women up to Rs.1 lakh, preference will be given to OBC community to support their professions.
SVEP (Startup Village Entrepreneurship Programme).
Extending credit to tenant farmers through FPOs for Farm Machinery, Small Ruminants etc., schemes, loans to small village entrepreneurs
like Kirana, general stores, hotel, cloth shop, medical shop, tailoring, street vendors etc. Repayment periodis from 12 to 36 months.
Credit Disbursement : Streenidhi has provided loans to an extent of Rs.1741.58 Crores to 569670 SHG members during. 2021-2022
out of the Annual Credit Plan (ACP) projected for Rs.3000 Crores and achieved 75% projected credit disbursals up to 31.12.2021. Since
inception i.e. from October 2011 loans to an extent of Rs.11042.39 Crores has been disbursed to 36.19 lakhs SHG members.The loan
outstanding as on 31.12.2021 is Rs. 3094.69 Crores.
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The recovery rate during current financial year stands at 94.46% as on 31.12.2021. Streenidhi has ensured the asset quality by restricting
NPAs to 0.89% of total loan amount outstanding of Rs.2989.79 Crores as on 31.12.2021.
***
75
AGRICULTURE DEVELOPMENT IN A.P.

Agriculture Development in Andhra Pradesh : contribution to SGDP - Regional disparities in irrigation
and agricultural development – changing cropping pattern - focus on horticulture and fisheries and
dairying - Government Schemes to promote agriculture in Andhra Pradesh.
1. Contribution to State Gross Value Addition (or) GSDP?

Ans :
GVA - Constant Market Prices (Base Year 2011-12)
Year Share of Agriculture & Production Value
Allied Activities (in Crores)
2015-16 26.9% 1,21,518
2018-19 31.3% 171,035
2019-20 31.1% 185,585
2020-21 30.9% 189,361
2021-22 30.5% 206,855
2022-23 31.8% 216,255
In terms of Current Market Prices the share of Agriculture and its allied activities in the state GVA is 36%.
Subsector wise the values are as follows :
Rank (1) Fisheries 68344 crores
Rank (2) Animal Husbandary 61672 crores
Rank (3) Horticulture 54525 crores
Rank (4) Agriculture 28797 crores
Rank (5) Foresty 2917 crores
Growth Rate of Agriculture Sector - Constant base year prices
Year Growth Rate
2019-20 8.51%
2020-21 2.03%
2021-22 9.24%
2022-23 4.54%
The Healthy Growth Rate in Agriculture : 4%.
In 2022-23 The state Agriculture Growth rate : 4.54%
The Sub-Sector having the Highest Growth rate : Agriculture
In India's GDP the share of agriculture and its allied activities : 15% to 17%.
According to Economic Survey The Agriculture Sector contributes 60% of the State Employment.
Role of Agriculture in the A.P. Economy

(1) Contribution to State Economy
(2) Employment
(3) Key to Food Security
(4) Relation between Agricultural and Industrial sector
(5) Commercial Significance and Exports
(6) Contribution to the Government’s Revenue
(7) Economic Planning and Agriculture
Conclusion
The A.P. Economy is an agro-economy and depends highly on the agricultural sector. Despite just supporting the A.P. Economy, the
agricultural sector also supports the industrial sector and international trade in imports and exports. Although the contribution of the
Agricultural Sector to the A.P. Economy is about more than 30% it is the sector with the most number of people working in it around
the state.
***
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2. What are the Key Strategies adopted by the State Government to make agriculture profitable?
Ans : Under the Agriculture Sector, the government is determined to focus on Productivity enhancement, mitigating the impact of droughts
through water conservation and micro-irrigation;Post-harvest management to reduce wastage and to strengthen the processing, value
addition capacity and supply chain.
(1) Extending financial assistance of Rs.13500/- per farmer family per year (including Rs.6000/-from PMKISAN) under Dr.YSR
Rythu Bharosa-PMKISAN as an investment support to the farmers started from Rabi,2019.
(2) The tenant farmers are also made eligible for Navaratnalu, i.e., Crop Insurance, Interest Free Loans, 9 Hours free power, guaranteed
support price to the produce and also an amount of Rs 7 lakhs to the Suicide victim farmers as exgratia in addition to YSR Rythu
Bharosa.
(3) Government of Andhra Pradesh has established 10778 Dr.YSR Rythu Bharosa Kendralu (Dr.YSR RBKs) & 154 Hubs, with an
integration of Agri Input Shop and Farmer Knowledge Centre in coterminous with Village Secretariats /Gram Panchayats for
rendering all services of Agriculture and Allied sectors at village itself. These RBKs are the one stop shop for the farmers meeting
all their requirements
(4) Procurement Centers to procure all the agricultural commodities from the farmers at MSP to combat the exploitation of farmers
from middle men.
(5) e-Crop booking is done to create farmer's database through e-Crop Application. This data base is made mandatory for usage in
implementation of Crop Insurance, providing Input subsidy, Sunna Vaddi Panta Runalu and procurement of agriculture produce.
(6) Encouraging the farmers to go for market driven cropping system based on market intelligence system by establishing the Agri
Advisory Boards right from RBK level to Mandal, District and finally at State level duly placing farmers taking decisions.
(7) Providing exgratia to the farmer families in the event of death by suicides (Agrarian Reasons) / Accidents @ Rs. 7 lakhs per family.
(8) “Andhra Pradesh State Agriculture Mission” established as a policy making & advisory body to address the challenges in delivering
quality and timely services to the farming community and also to look into all aspects of production, marketing and pricing of Agri
culture and Horticultural commodities to mitigate the agrarian issues with an objective to provide a policy level platform that works
towards providing resilience among farmers and their empowerment.
(9) Organization of Dr.YSR Polambadi (Farmer Field Schools) to empower the farmers to take economically viable decisions by
adopting ecofriendly practices of Integrated Crop Management in a scientific manner and also to reduce the cost of cultivation and
enhance the productivity.
(10) Dr.YSR Agri Testing Labs are being established to test the Agri inputs like Seed, Fertilizer & Pesticides to ensure the availability of
quality agricultural inputs to the Farmers at RBK level at their villages.
(11) Promotion of Millets to improve nutritional status among public.
(12) Supply of 100% Neem Coated Urea to Farmers and certified seed on subsidy.
(13) Sensitizing farmers on customized fertilizers, which are Crop specific, Crop stage specific & location specific which are efficient
and provide required nutrients in optimum quantities and at right stage to the crops. This reduces excessive usage of fertilizers.
(14) Encourage farmers to use Micronutrients for correction of Micronutrient deficiencies and also Soil Amendments for correction of
Soil Salinity and Alkalinity.
(15) Encourage farmers to go for Micro Irrigation and Fertigation, Organic farming / AP Community managed Natural Farming.
(16) Promotion of integrating farming systems in rainfed areas of Rayalaseema districts and Prakasam district and strengthening their
resilience to drought through soil and water conservation methods through Andhra Pradesh Drought Mitigation Project (APDMP).
***
3. Explain the Flagship Schemes of A.P. Government to promote agriculture in State?

Ans :
As part of 'Navaratnalu' the following initiations has been taken by the A.P. Government.
(a) Investment Support to Farmer - YSR Rythu Bharosa :
Dr. YSR Rythu Bharosa - PM Kisan : This scheme was launched on 15th Octiber, 2019. Under this scheme, Financial Assistance
is being provided to Agriculture Land Owning farmer families @ of Rs. 13,500 per year per family. Of this amount Rs. 6,000 will
be paid from PM KISAN SCHEME. Financial Assistance is also being provided to SC, ST, BC, Minority Category Landless
tenant farmers and ROFR cultivators. (ROFR - Recognition of Forest Rights). The amount will be paid in 3 installments as
detailed below.
Installment Financial Assistance
1. May Rs. 7,500/- (P.M. Kisan Assistance Rs. 2000/-)
2. October Rs. 4,000/- (P.M. Kisan Assistance Rs. 2000/-)
3. January Rs. 2,000/- (exclusively of P.M. Kisan Assistance Rs. 2000/-)
In 2021-22 the total beneficiaries 52.38 lakh families, Of this 1.51 lakh families comes under tenant farmers category.
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(b) Vaddi Leni Panta Runalu :
YSR - Sunna Vaddi Panta Runalu Scheme : The Government of AP is implementing the “YSR –Sunna Vaddi Panta
Runalu(SVPR)” Scheme w.e.f. Kharif 2019 Interest subsidy for the crop loans upto Rs.1.00 lakh will be transferred directly to the
accounts of farmers who have repaid their loans in time (maximum period of one year from date of disbursement of crop loan).
(c) Free Crop Insurance :
YSR Free Crop Insurance Scheme : The State government has launched "Free Crop insurance scheme" on 08.07.2019.
During Kharif 2019, the farmers have insured their crops just by paying token amount of Rs.1/- and the remaining farmer share
of premium was also transferred to the State Govt liability. State Govt paid an amount of Rs.971.23 Cr to the Insurance companies
(Rs.467.87 Cr paid on behalf of the farmers share and Rs.503.36 Cr regular 50% state share). All the notified crops which were
captured through e-crop will automatically be provided insurance protection and the State Govt is shouldering the entire claim
settlement responsibility to the eligible farmers.
The NITI Aayog has recognized the implementation of YSR Free Crop Insurance as role model to be adopted by all other
states.To cater the insurance needs of the State, orders have been issued for formation of Andhra Pradesh General Insurance
Corporation Ltd. (APGICL) and the registration is under process with IRDAI. Implementation of Free Crop Insurance without
any separate registration and settlement of claims directly by the State Govt without involvement of any Insurance companies is
very unique of its kind in the Country.
(d) YSR Jala Kala :Commenced on September, 2020.
Key Features :
(a) As a part of Navaratnalu, In a period of 4 years 2 lakh free of cost, bore well, drilling for eligible farmers.
(b) Minimum area of Agriculture Land shall be 2 1/2 acres in a single bit (or) farmers group who are having more than 2.5 acres
of agriculture land.
c) SC/ ST, Women, Marginal and small farmers will be prioritised.
(e) JalayaGnam :Commencemenced - 2004 October by Late Y.S. Rajasekhar Reddy. Total number of projects undertaken - 54.
Completed projects 14 and 2 projects have completed upto stage-1. The government targeted to complete 40 projects in 4
years. After completing these 40 projects irrigation potential created to externed of 28.54 lack acers and stabilization of
ayacut for 38.4 lack acers.
(f) 9 Hours of Quality - Free Electricity : By the end of 2021, November in Andhra Pradesh total electrified agriculture pumpsets
are 19.64 lakhs. Of these 18.05 lakh pumpsets comes under free electricity scheme.
(g) RBK (Rythu Barosa Kendram) : Copy and Paste
(h) Compensation of Rs. 7 Lakhs to the deceased families.
(i) Price Stabilisation Fund the establishment of Price Stabilisation Fund of Rs.3,000 crore is protecting the farmers from selling
their crops below the MSP.
(j) YSR Yantra Seva : This scheme was launched on 26 October, 2021. The Government will provide necessary machinery and
equipment to the farmers on a rental basis through community Hiring centres. The Government has setup around 10750 community
Hiring centre. These centres will be run by farmer groups which are given a 40% subsidy on the cost of the farm equipment.
YSR Yantra Seva Pathakam initiative was taken up to overcome the shortage of farming machinery to farmers and to provide
them with the much-needed support in renting machinery at affordable prices which will help reduce the input cost.
(k) YSR Polambadi : Dr YSR Polambadi is a field oriented training program organized to 30 farmers in an RBK for a period of 14
weeks, holding one session per week on a fixed day in the row of a week. The farmers are trained on studying, analyzing and
understanding the agro ecological factors existing in the field correlating them to the incidence of pests and diseases and to reach
to the point of decision making for optimization of chemical inputs that ultimately brings in effect a significant decline in cost of
cultivation and increase in the yields of in crops.
Dr YSR Polambadi also teaches various sustainable technologies like Integrated Pest Management, Integrated Disease
Management, Integrated Weed Management, Water Management, Farm Mechanization etc., to the farmers to utilize them for
enhancing farm productivity and quality of the output.The evaluation of the impact of Dr YSR Polambadi would be done by the
Scientists of ANGRAU (Acharya N.G. Ranga Agriculture University) at the end of the program to understand its outcome that
tends to benefit the farmers.
***
78
4. Explain the role of Rythu Barosa Kendralu (or) Outline the role of RBK’s in Agriculture Development?
Ans : Government of AP has established Dr. YSR. Rythu Bharosa Kendralu coterminous with village secretariat by integrating Agri. Input
Shop and Farmer Knowledge Centers to augment income of farmer by ensuring the availability of certified quality inputs & dissemi-
nation of latest technology and crop specific MSPs, more so “One Stop Shop”so that farmers could not be fleeced.
(a) Since May, 2020 The State Government started RBK Centres.
(b) The availability of quality farm inputs and right advisories at right time are very critical in improving the crop productivity and
in reducing the cost cultivation.
(c) Major objectives are to ensure the availability of quality inputs of Agri & allied sectors at competitive price and knowledge
dissemination. It is the first of its kind in the entire nation and rendering incessant services “Vitthanam Nundi Vikrayam
Varaku”(Seed to Sale) of Agri & Allied sectors in transparent manner at village level. Utmost intention of RBKs is to augment
farmer incomes & livelihood.
(d) The Government of Andhra Pradesh has established 10,778 Rythu Bharosa Kendralu with Village Agricultural Assistants, Village
Horticultural Assistants, village level during 2021-22. The important components of RBKs are Agri Input Shop and Farmer
Knowledge Centre.
(e) RBKs will bridge the information and service delivery gaps in the State's Agriculture Sector by brining all the Stakeholders of
Agriculture and Allied Sectors into one single platform offering all services to farmers by ensuring year round productivity,
profitability and sustainability. In RBKs, Agriculture & Allied Sectors officials & Scientists will provide latest and low cost
technologies to farmers. Subject experts will conduct farmers trainings in RBKs through Physical contractor through Smart TV/
Online trainings.
(f) Rythu Bharosa Ratham:Rythu Bharosa Ratham is a new innovation which is a mobile campaign vehicle. Playing of short
videos at major centers of a village on pest and disease management practices of various crops, latest technologies &services
rendered at RBK through embodied LED wall & backlit posters. Video calling facility is also embodied to have live interaction
with concerned on specific issues.
(g) RBK Channel: Telecasting need based & latest technical content through Smart TVs at RBKs to keep away the farmers frequenting
the agriculture offices at mandals & seeking for advises. Live interaction with officials of Agri & Allied departments, Scientists
& progressive farmers on innovative methods & recommended practices to enhance net farm income of a farmer.
(h) RBK Permanent buildings under MGNREGs: Sanctioned 10408 new RBK buildings to build as permanent assets for the
welfare of farmer at village level duly earmarking an amount of Rs.2268.9 Cr towards construction of RBKs @Rs.21.80 Lakh
per unit by PR & RD.
(i) Toll Free Number : 155251.
(j) RBKs are being operated through 4 verticals by qualified staff viz., Village Agriculture Assistants/Village Horticulture Assistant/
Village Sericulture Assistants & Village Animal Husbandry/Village Fisheries Assistant with Diploma/Graduation/Post Graduation
certification in their respective fields.
Conclusion
RBK concept grabs much emphasis in Asia - Pacific Summit held in 2022 & government of India recommended the World Bank to
replicate RBK Model in Ethiopia to enhance farmers livelihood and net income levels.
***
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5. Salient Features of Horticulture Sector in Andhra Pradesh (or) Major Achievements of Horticulture
Sector in Andhra Pradesh (or) Crop Diversification from Agriculture to Horticulture is the most
encouraging practice in Andhra Pradesh - Discuss?
Ans : Over the years, there has been a structural shift in the cropping pattern in the state and horticulture sector is growing at a faster pace
than agriculture towards making Andhra Pradesh a major horticulture hub. The agrarian state of Andhra Pradesh is heading towards
a value addition platform from the conventional production approach.
The returns from Horticulture per unit of land are higher as compared to Agriculture. Horticulture, as a climate resilient alternative
involving less risk, assures higher income to farmes. Horticulture sector turned out to be an essential component for food and
nutritional security in the state and is integral for food and nutritional security in the State. Horticulture comprises of fruits, vegetables,
flowers, spices and plantation crops.
In Andhra Pradesh, the area under Horticulture crops is 17.95 Lakh Hectares with a production of 314.76 Lakh MTs. The following
are the major achievements.
(a) Out of 10 districts which are known for horticulture, two districts are from Andhra Pradesh.
(b) Rayalaseema is becoming India's horticulture hub.
(c) Andhra Pradesh ranks first in productivity of Oil palm, Papaya, Lime, Coconut, Cocoa, Tomato and Chilli. A.P. stands in first position
in Area, Production and productivity of Oil Palm with an area of 1.92 lakh ha which is 53% (1.41 lakh farmers) area in the Country.
(d) Andhra Pradesh ranks second in productivity or yeild of mango, Sweet Orange, Cashew, Turmeric.
(e) Andhra Pradesh is the largest producer of the fruits in the country. Contributing 15.6% of the total production at the national level
(f) Andhra Pradesh emerged as biggest exporter of Banana. And awarded by ICAR-NRC, Banana Research Institute, Thiruchirapalli,
Tamilnadu.
(g) AP was awarded as "best horticulture state".
(h) As per exim bank report, AP contributes 7.8% of vegetables and vegetable products export from the country.
(i) Under Y.S.R.Thota Badi program promotes the horticulture cultivation, productivity, quality enhancement, adopting micro irrigation
system, marketing and exports. Under YSR Thota Badi programme farmers are getting skill upgradation training programme.
(j) Ninjacart has started five common facility centres in Ananthapuram and 3 centres in Chittoor for procurement of vegetables
directly from the farmers @1000 to 5000 MT per day.
(k) Organic farming has been promoted in an extent of 11250 hectares of Mango, Cashew, Turmeric, Chilli and Vegetables through
ICCOA & SIMFED.
(l) Centre of Excellence for vegetables and flowers with state of art facility has been created at Kuppam in Chittoor district 2 lakh
grafted vegetable seedlings were produced and distributed to the farmers.
(m) Nearly Eleven lakh metric tonnes of fruits, vegetables and plantation crops have been marketed with the help of FPOs and
progressive farmers during the critical lock down period of Covid-19 pandemic.
(n) Crop and varietal diversity - New crops like Dragon Fruit, Taiwan Guava, Mauritius variety of Pine Apple, Strawberry, Nut Meg,
Improved Black Pepper, Japanese mint etc., have been introduced for generating high income to the farmers.
(o) Central Government has announced that 'Spices Park' will be established near Guntur. The district of Guntur and its Market
Yard is popular across India, for Red Chillies and Turmeric.
Conclusion
The Government of Andhra Pradesh is committed to farmer centric programmes and identified Horticulture sector as one of the
growth engines in economic development of the State. Promotion of Micro Irrigation, Increasing Production, Productivity, Quality
and Cold Storage Units alongwith Food Processing Industry should be focussed to achieve the desired objective.
***
80
6. What are the Various Strategies of A.P. Government for the Development of Horticulture Sector?
Ans : Over the years, there has been a structural shift in the cropping pattern in the state and horticulture sector is growing at a faster pace
than agriculture towards making Andhra Pradesh a major horticulture hub. The agrarian state of Andhra Pradesh is heading towards
a value addition platform from the conventional production approach.
(1) Promotion of Multi-Cropping to enhance productivity per unit area for additional income to farmers.
(2) Encouraging efficient and effective utilization of water and fertilizers through Micro Irrigation.
(3) Promoting Agri Infrastructure like Collection Centres and Solar Cold Rooms under MIDH.
(4) Mobilization of farmers into Farmers Producers Organizations (FPOs) for creating forward and backward linkages for better
returns and doubling farmer’s income.
(5) Promotion of High Density, Block plantation/ boundary plantation in an extent of 2652 Ha., under National Bamboo Mission.
(6) Adopting modern technologies such as Protected Cultivation (Poly houses & Shadenet houses) for cultivation of High value
flowers and vegetables for higher returns.
(7) Focus on Post-Harvest Infrastructure like Pre-Cooling, Cold Storages, Ripening Chambers, Refer Vans, Farm Fresh Vegetables,
Vending Vans etc.
(8) Under Mission for Integrated Development of Horticulture (MIDH), Centre of Excellence for vegetables and flowers with state of
art facility has been created at Kuppam in Chittoor district. 15 Lakh grafted and 29 Lakh non-grafted vegetable seedings are
produced and distributed in 2022-23.
(9) The Government has proposed for Establishment of Centre of Excellence for Vegetables & Spieces in Gundlapalli (V) of Palnadu
(D) and Centre of Excellence for Banana in Pulivendula Constituency of YSR District.
(10) Government of Andhra Pradesh is the first State to announce MSP for Horticulture crops i.e., Banana (Rs. 800/Q), Turmeric (Rs.
6850/Q), Onion (Rs. 770/Q), Sweet Orange (Rs. 1400/Q), Chillies (Rs. 7000/Q) which are not covered by GOI.
(11) To ensure supply quality plant material to the farmers, about 2932 nurseries have already been registered under ‘Andhra Pradesh
Registration of Horticlture Nurseries (Reglation) Act, 2010’.
(12) The Department of Horticulture has supported 263 FPOs with financial achievement of Rs. 18.65 Crores towards Promotional
cost, Integrated Pack Houses, Collection Centres, Transport vehicles, other infrastructure facilities and marketing.
***
7. Explain the Programmes Implemented for Holistic Development of Horticulture in Andhra Pradesh?
Ans : Several farmer oriented activities are being taken up to encourage adoption of modern technologies, evolving sustainable farming
practices, provision of Post-Harvest infrastructure facilities and dissemination of latest knowledge to the farming community. The
following are the major programmes. They are:––
(1) Pradhan Mantri Krishi Sinchayee Yojana : In 2013, A.P.MIP Andhra Pradesh Micro Irrigation Project was launched with an
objective of enhancing the crop productivity by improving the water views efficiency. Under PMKSY Pradhan Mantri Krishi
Sinchayee Yojana was also implemented to achieve the concept of "Per Drop More Crop". So far 13.41 lakh hectares has been
covered under micro irrigation, benefitting 11.91 lakh farmers. For 2022-23, proposed to cover an area of 1.50 lakh hectares under
micro irrigation. A.P. ranks 4th in area covered under micro irrigation. As per 2020-21 agriculture data released by the Union
Agriculture Ministry report. Rajasthan occupies first rank and Andhra Pradesh in second rank. In 2022, as per NABARD agriculture
technical report Andhra Pradesh occupies first rank in Micro irrigation.
(2) Mission for Integrated Development of Horticulture : A Centrally Assisted Scheme with 60% contribution by the GoI and
40% by The State Goverment - the Mission for Integrated Development of Horticulture (MIDH) is being implemented in the State
by the State Horticulture Mission. The major components covered under MIDH are (a) Area Expansion (Perennial and Non-
Perennial crops). (b) Rejuvenation of senile orchards (c) Protected Cultivation (d) Post Harvest Management (e) Creation of
Water Resources (Farm Ponds) (f) Farm Mechanization (g) Capacity Building.
(3) Rashtriya Krushi Vikas Yojana : Under this scheme, components like Horticulture Infrastructure Fund/ Post harvest Infrastructure
like Collection Centres & Solar Cold Rooms, Crop Diversification, production of quality plant material, area expansion, permanent
pandals, Promotion of Vegetables, IPM - Mango / Cashew / Chilli / Vegetables & Onion, Protected Cultivation (Shadenet houses
& Poly houses), etc., are being implemented for sustainable gowth in Horticulture sector.
(4) National Mission on Edible Oils - Oil Palm : Andhra Pradesh stands in first position in Area, Production and Productivity of Oil
Palm with an area of 1.92 lakh Ha with 1.41 lakh Farmers in 17 districts. Government encouraging to enhance the average
productivity and establishment of processing units. Eluru District has highest area under oil palm.
(5) Externally Aided Projects :
(A) Andhra Pradesh Integrated Irrigation and Agriculture Transformation Project
The Andhra Pradesh Integrated Irrigation and Agriculture Transformation Project (APIIATP) is being implemented with
World Bank funds through Water Resource Department as Nodal Agency with an objective to improve the productivty of
Horticulture crops near Ayacut area. The project period is 7 years (from 2017-18 to 2024-25).
(B) Andhr Pradesh Irrigation and Livelihood Improvement Project - JICA
The ASPILIP project is being implemented with Japan International Cooperation Agency (JICA) funds through Water
Resource Department as Nodal Agency with an objective to develop the food value chain of strategic crops on pilot basis.
***
81
8. Briefly Explain the targets and Thrust Areas under Food Processing Policy 2020-25?
Ans : Food processing industry in Andhra Pradesh has gained prominence in recent years. Availability of raw materials, changing lifestyles
and appropriate fiscal policies have given a considerable thrust to industry’s growth. This sector serves as a vital link between agricul-
ture and industrial segments of the economy.
Policy Targets :
a) AP Food Processing Policy will have Farmer Centric Vision with better price realization to the farmer to create competition
for best discovery of price.
b) Minimizes procurement losses taken up by different Government procurement agencies.
c) Aims at productivity enhancement of different crops suitable for food processing and also encourages cultivation of promising
processing varieties.
d) Promotes packaging industry in the State.
e) Make Andhra Pradesh one of the most preferred destinations for food processing sector.
f) Reduce post-harvest losses by promoting and enhancing food processing infrastructure by increasing farmer's income.
g) Create additional employment opportunity.
h) Strengthening and upgradation of existing food processing industries.
Thrust Areas :
1) Development of Secondary Food Processing Clusters. Grant - in - Aid @ 35% of eligible project cost upto Rs. 10 crores.
2) Farmeralization of Micro Food Processing Enterprises. Main objectives : (a) Increased access to credit by existing micro
food processing entrepreneurs, FPOs, Self Help Groups and Co-operatives. (b) Integration with organized supply chain by
strengthening branding & marketing. (c) Support for transition of existing and new 10,029 enterprises into formal framework.
(d) Increased access to common services like common processing facility, laboratories, storage, packaging, marketing and
incubation services. (e) Strentthing of institutions, research and training in the food processing sector. Increased access for
the enterprises, to professional and technical support.
Pattern of Assistance : (a) @ 35% of the eligible project cost with a maximum ceiling of Rs. 10.0 lakh per unit to individual
micro food processing units as credit-linked capital subisidy. (b) Brand Building & Marketing support @ 50% upto Rs. 10.00
lakhs. (c) Support for common infrastructure @ 35% upto Rs. 10.00 lakhs. (d) Seed capital assistance @ Rs. 40,000 per SHG
member for working capital. @ 35% of the eligible project cost with a maximum ceiling of Rs. 10.0 lakh for FPOs.
3) Development of Skill Development & Incubation Centres : (a) Skill development and incubation centers to be set up by
convergence with AP State Skill Development Corporation (APSSDC) @ 1 at each District. (b) To work with premier research
institutions like IIFPT for development of skill development and incubation centers.
4) Development of Food Testing Laboratories : (a) Establishment of Food Testing laboratories @ 1 at each District. (b) To
ensure compliance of domestic/ International standards on food.
5) Development of Meat Food Processing Industries : Andhra Pradesh occupies 4th position in meat production in the country
with an estimated production of 7.81 Lakh MTs as per the approved estimates of Govt of India during 2018-19. The meat sector
contributes Rs. 30,821 Cr. to the GSDP of the State. The meat sector in Andhra Pradesh provides livelihood for about 4 lakh
farmers families.
For promoting meat processing sector in AP in a big way, the State Government is implementing various innovative initatives
with focus on strong policy support as follows : (a) Enhancing the meat production in the State by providing forward and
backward linkages by distributing 2.49 lakh Sheep and Goat Units under YSR Cheyuta program through Animal Husbandry
Department. (b) Strenthening existing meat marketing for provding better price to meat products by partnering with Allana
Food and other key private players in meat exports. (c) It is proposed to establish (3) Mega Meat Processing Hubs at
Sankhavaram (East Godavari District), Vizianagaram and Kurnool Districts. (d) Meat Outlets at Village level (RBKs)
6) Promotion of Processing in Dairy Sector : The milk sector in Andhra Pradesh provides subsidiary income to about 28 lakh
farmer families who own 108 lakh cattle and buffaloes and plays key role in uplifting the socio-economic status of these
farmers dependant on milch animal rearing for their livelihood. Enhancing tthe milk production in the State by providing
forward and backward linkages by distributing 4.69 lakh milch animals under YSR Cheyuta program through Animal
Husbandry Department. It is proposed to establish (4) Mega Milk Processing Hubs at Vizag, Ongole (Prakasam District),
Guntur and Pulivendula (YSR Kadapa District)
Out of 10,641 Rythu Bharosa Kendras (RBK) - 9,889 villages are the milk potential villages. Milk Collection Centers (MCCs)
are proposed in 6,510 villages.
7) Strengthening of Value Chain and Secondary Processing in Fisheries Sector : A.P State is endowed with diversified &
potential water resources with a long coastline of 974 km, Brackish water lands of 1.75 lakh ha, inland water bodies of about
8.00 lakh ha. To improve the livelihood of fisherman, Government has decided to provide atleast one Fishing Harbour/ Fish
Landing Center in each coastal district. Thus, the following 8 Fishing Harbours & 4 Fish Landing Centers are planned at a
cost of Rs. 3000 Cr.
(1) Juvvaladinne, Nellore District, (2) Kothapatnam, Prakasam District, (3) Nizampatnam, Guntur District, (4) Machilipatnam,
Krishna District, (5) Biyyaputhippa, West Godavari District, (6) Uppada, East Godavari District, (7) Pudimedaka,
Visakhapatnam District, (8) Budagattlapalem, Srikakulam District.
82
8) Development of Seed Processing Industries : Seed is the basic and most critical input for sustainable agriculture. The response
of all other inputs depends on quality of seeds to a large extent. It is estimated that the direct contribution of quality seed alone
to the total productionis about 15-20% depending upon the crop and it can be further raised up to 45% with efficient management
of other inputs, farmer has a wide product choice and seed industry today is set to work with a 'farmer centric' approach and is
market driven. However, there is an urgent need also to transform themselves in tune with the industry in terms of infrastructure,
technologies, approach and the management culture to be able to survive in the competitive market and to enhance their
contribution in the national endeavour of increasing food production to attain food & nutritional security.
Primary Seed processing Units at RBK level : 2000 Under RKVY Scheme) : Post harvest operations and Checking for
IMSCS, 2013 compliance.
Secondary Seed processing Units at Cluster/ Constituency level for Seed and Millets processing : 50 (17 Existing and 33
New) (Under SMSP - NFSM Scheme) : Processing and Packing.
9) Support to Food Processing Industries : Incentives as per Industrial Policy 2020-23 shall be applicable to Food Processing
Industries.
10) Parliamentary Constituencies & Lead Crops / Products : Andhra Pradesh has 25 parliamentary constituencies spread in
13 districts of the State. Efforts are made to identify major lead crop/ product of each constituency so that emphasis can be
given on these lead crops/ product when establishing the Secondary/ Processing units in these constituencies.
Sl.No. Parliamentary Constituency District Lead Crop/ Product

1. Srikakulam Srikakulam Coconut
2. Vizianagaram Vizianagaram Mango
3. Visakhapatnam Visakhapatnam Millets
4. Aruku Visakhapatnam Coffee
5. Anakapalli Visakhapatnam Sugarcane
6. Kakinada East Godavari Aqua & Paddy Straw (Waste to Worth)
7. Amalapuram East Godavari Coconut
8. Rajahmundry East Godavari Aqua & Poultry
9. Eluru West Godavari Maize
10. Narsapuram West Godavari Fish
11. Vijayawada Krishna Pickles & Mango
12. Machilipatnam Krishna Milk & Poultry
13. Bapatla Guntur Aqua
14. Guntur Guntur Chillies & Turmeric
15. Narasaraopet Guntur Maize
16. Ongole Prakasam Spices & Milk
17. Nellore Nellore Aqua
18. Tirupati Chittoor Tomato
19. Chittoor Chittoor Mango & Tomato
20. Rajampet YSR Kadapa Banana & Millets
21. Kadapa YSR Kadapa Banana
22. Ananthapur Ananthapur Groundnut
23. Hindupur Ananthapur Sweet Orange
24. Kurnool Kurnool Onion
25. Nandyal Kurnool Onion
***
83
9. Explain the Role of Blue Revolution in Andhra Pradesh (or) Measures taken by the State Government
to promote Fisheries Sector?
Ans : The Blue Revolution, with its multi-dimensional activities, focuses mainly on increasing fisheries production and productivity from
aquaculture and fisheries resources, both inland and marine.
Andhra Pradesh has favourable agro-climatic conditions for the growth of fisheries and aquaculture sector. The State is contributing
about 30% of National fish production and is a major exporter of Shrimp in India with share of 35% in total value of sea food exports
of the country.
In 2014-15 State produced 19.78 lakh tonnes, in 2020-21 production was 46.23 lakh tonnes. This data shows the tremendous increase
in state fish production. Andhra Pradesh contributes 1.61% of World Aqua Culture Production. In 2020-21 Fisheries sector contributes
9.08% in State Gross Domestic Production. To boost the sector the following are the Major Initiatives taken by the Government.
(1) In 2006, Central Government established, National Centre for sustainable coastal aqua culture, head quarters at Kakinada. This
centre provides training facility to fisher man in Sustainable Aqua Culture.
(2) To promote sustainable aquaculture in the state and facilitate the farmers with quality aquaculture inputs, establishing Integrated
Aqua labs in 35 (27 New labs and 8 Departmental labs) locations in 9 coastal districts for providing aquaculture inputs testing and
disease diagnostic facilities to farmers with a total outlay of Rs.50.30 Crores. Out of 35 labs, (14) labs are put in operation for
catering the lab services to aquaculture farmers in the coastal districts.
(3) As per Coastal Aqua Culture Authority Act, Land within 2 kilometers from High Tied Line of Seas, Rivers, Creeks and Back water
comes under the perview coastal aqua culture authority. Every farmer who is in Aqua Culture cultivation and having an area of more
than 2 hectares shall compulsorily required registration.
(4) A.P. Fisheries University Act, 2020 for the establishment of fisheries university in West Godavari District under Public-Private Partnership.
Private equity 51% and Government equity 49%. This university promotes skills, research and development in sustainable manner.
(5) YSR Matyakara Barosa Scheme from 15th April to 14th June (61 days), every year with an objective of coserving the fishery wealth and
to sustain fish production from Marine Water Government is implementing this ban period. From 2020 November 21st onwards the
relief of Rs. 10,000/- towards livelihood compensation will be paid to the registered fisherman. In case of accidental death of fisher man,
while fishing, in the age group of 18 to 60 years, a compensation of Rs. 10 lakhs will be paid (previous compensation was Rs. 5 lakhs).
(6) 732 Village Fisheries Assistants were recruited and positioned at Village Secretariats to render better extension services to the
fisheries sector.
(7) The Rythu Bharosa Kendras at Village level will promote innovative and advanced technologies in fisheries sector and also to supply
certified and quality inputs through aqua inputs shops to aqua farmers and fishers.
(8) E-crop (e-fish) booking for aqua farmers to facilitate remunerative prices for their produce, access to insurance, credit support etc.
(9) To ensure the successful crop. YSR Mastya Sagu Badi, a Farmers Field School at village level providing extension services and
crop advisories to aqua farmers.
(10) Integrated Call Centre: Integrated Call centre “155251” - a dedicated Integrated Call Centre was established with 63 technical
officers for agriculture and allied sectors for advisories to farmers and fishers queries by Experts.
(11) The Government enhanced Diesel Oil subsidy to Fishing Boards from Rs. 6.03 to Rs. 9 per litre. To benefit 17,770 boats. Electricity
Charges for Aqua Farmers will be charged at Rs. 1.50 per unit.
(12) Under Pradhana Mantri Matya Sampada Yojana, Government of India sanctioned 15 projects. Under this scheme all sub sectors
of Fisheries - Inland, Marine, Aqua Culture and Welfare schemes are covered. The total Government subsidy assistance is 40%
for General Category and 60% for SC/ST/Women beneficiaries on the Unit Cost or project cost.
(13) Government decided to construct and develop 8 new fishing harbours and jettis, with an estimated expenditure of Rs. 3000 Crores.
(14) Andhra Pradesh State Aqua Culture Development Authority : In 2020, Andhra Pradesh Government enacted this legislation.
This Authority functions under the chairmanship of Chief Minister. The main functions of the Authority :
a) Provide Infrastructure Facility. Like Cold Storage Plants.
b) Extention of Aqua Testing labs to provide Quality Seeds.
c) To encourage commercialization of Aqua Culture production and better marketing facilities to the fisher man.
d) Publication of data about market prices, feed, quality certification, diseases, disease control mechanism.
e) Encourages Aqua Culture exports from the state.
f) Sanction of licences and registration.
g) Establishing quality certification laboratories.
(15) Organization of Fishermen Cooperative Societies - Matya Mithra Groups : The Fisheries Cooperative Societies are formed
for the promotion of thrift, self-help and mutual assistance of the members. Government has given great importance to cooperative
societies in fisheries sector to empower fishermen to manage aqua resources. Departmental tanks(MI tanks) are given on lease to
these cooperative societies for exploitation of fishery wealth for better livelihoods. Assistance is also provided for inputs like fish
seed stocking, boats, nets etc on subsidy. So far, 2.86 lakh fishermen have been organized into 2810 societies. There is a need to
infuse professionalism and good governance so that these Cooperatives can develop on their intrinsic strength.
Conclusion :
Ecologically healthy, economically viable and socially inclusive inland fisheries and aquaculture that generates gainful employment
and economic prosperity.
***
84
10. Explain the Progress of Dairy Sector in Andhra Pradesh? Measures taken by the State Government
to promote Dairy Industry? (or) Cooperative Dairy Sector is the need of the hour - Discuss?
Ans : Dr.Kurien, was the architect of India’s White Revolution, which helped India emerge as the largest milk producer in the world. To
combat the adverse economical situation of the nation, many revolutions like Golden Revolution, Green Revolution, Black Revolution
and Blue Revolution surfaced in Indian history. Amongst all the Indian Revolutions, the White Revolution was launched to enhance
the production of milk and milk products across the country. Right after the great success of the Green Revolution, White Revolution
or the Operation Flood was started with the aim to make India self-sufficient as well as a prominent milk exporter.
Dairy Sector plays a key role in the economy where the poor contribute to growth directly. Being a source of livelihood and provider
of draught power, manure and energy, Dairy forms an essential part of the socio economic structure of rural farmers. The progress in
the sector is inclusive in nature as it results in balanced development of the rural economy particularly in reducing poverty amongst the
weaker sections and providing stability to family income.
62.5 lakh families are deriving income from Animal Husbandary. In Andhra Pradesh 49.38% people are getting benefit, directly and
indirectly, from this sector. The total Milk production in Andhra Pradesh is 424 LLPD of which, the marketable surplus is 143 LLPD.
As only 61 LLPD (24%) is in organized sector, there is huge potential for dairying in Andhra Pradesh. The State Government has
started farmer centric Rythu Bharosa Kendras in 10,641 villages exclusively to take care of farming related activities where one AHA
(Dairy Assistant) is also deployed to work for promotion of dairy related activities.
Andhra Pradesh has 60 lakhs milch animal population of which 58% are buffaloes. The state has got world famous draught breed
known as “Ongole”& the poor man's cattle breed known as “Punganur”. AP is the 4 largest milk producer in India contributing 32,630
Cr. at constant prices to the state economy (6% of the GDP).
Dr. YSR Deseeya Go Jaathula Pempaka Kendraalu : scheme was designed with an aim to promote the indigenous breed and
multiply the number of available indigenous cows in the eco-system which enhances the consumption of desi cow milk for better
nutrition, health and prosperity.
Indigenous cows are known for their unique characteristics such as Resistant to various diseases, Sustainable to the tropical climate
and also for production of milk of great therapeutic value. Andhra Pradesh is the Homeland for Ongole and Punganur breeds.
The Total unit cost is Rs.30 Lakhs Beneficiary will be contributing 20% i.e Rs.6 Lakhs for each unit. The Government subsidy is Rs.15 Lakhs.
The dairy farm owners should sell cows, heifers, bulls and calves to newly coming up indigenous Cow farms only and shall not make
loose sales to individual farmers. The department will track the Animal sale transactions from these Cow farms.
Jagananna Palavelluva Programme : The APDDCFL is implementing the entire innovative program called Jagananna Pala Velluva
by organizing Mahila Dairy Associations and Mahila Dairy Sahakara Sangam at village level and providing required infrastructure to
these newly formed societies to become self-sustainable viz, quality testing machines, milk cans, and support in identification of
secretaries, promoters training them and developing software to monitor the entire program on real-time basis in the entire states.
Jagananna Paala Velluva Project was launched initially with 24,277 women dairying farmers of 401 villages of erstwhile Chittoor, Prakasam
and YSr Kadapa Districts by Hon’ble Chief Minister on 02-12-2020. The initial declared price indicated by Amul was Rs. 71.47 per Ltr. of
Buffalo Milk at measured Fat of 11%, SNF of 9.0% and Rs. 34.20 per Ltr., of Cow Milk at measured Fat of 5.4%, SNF of 8.7%.
Upon comparison of the milk procurement price being paid by pviate dairies in A.P. with that of Amul price, the farmers are able to get better
price than what they are getting from private dairies with an extra benefit ranging from Rs. 5/0 to Rs. 20/- per liter based on the type of milk.
Rashtriya Gokul Mission, the scheme is sanctioned by Government of India to promote or to acquire various inputs required to
conduct artificial insemination at the door steps of the farmers.
Gokul Gram Project is established under Rashtriya Gokul Mission with an objective to conservation and development of Indigenous
bovine breeds in the counry. The project is established at Chadalavada, Prakasam District.
Conclusion :
Milk is the only commodity which has to be collected twice a day, every day of the year. Thus, cooperatives are the only logical system
for the dairy industry. About 85% of the industry in the US, Denmark and Australia is run by cooperatives. No other system will work
for milk. – Verghese Kurien
***
85
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CLASS NOTES OF I.S.N.

INDUSTRIAL POLICY OF ANDHRA PRADESH

1. The Progress of Special Economic Zones in Andhra Pradesh?

Facilities and Incentives :

SEZ's in Andhra Pradesh :

2. Global Investors Summit 2023?

Abundance in every sphere :

3. Explain the significance of Industrial Corridors in Andhra Pradesh?

Potential Nodes along with Clusters

Details of VCIC Loan - Investment and Financing Plan

The expected impacts of VCIC on Socio Economic Development of A.P. by 2035

5. Explain the Industrial Incentives announced in 2020-23 Industrial Policy?

Sub Share in GSDP

Major Bottle Necks :

(2) MSME Cluster Development Programme (MSME - CDP) :

(4) Y.S.R Jagananna Mega Industrial Hub :

(6) Y.S.R. Jagananna Badugu Vikasam:

(7) Industrial Development Policy 2020-23 :

Mission Pillasr of Accomplishment Initiatives Envisaged in the Policy

INDUSTRY RELATED SERVICE SECTOR

MEGA AND ULTRA MEGA INDUSTRIES

Category Status of Industrial Development Districts Covered

Micro and Small Entreprises (Manufacturing and Services) :

Medium Enterprises Manufacturing Sector :

Mega and Ultra Mega Industries :

Measures taken to boost the exports :

1. Discuss the Important Projects in Andhra Pradesh in relation to Infrastructure Development?

2. Andhra Pradesh E-Governance Initiatives

Visakhapatnam- Chennai industrial corridor:

Chennai Bengaluru industrial corridor (CBIC)

● This is close to Krishnapatnam port. Krishnapatnam Industrial area of

Hyderabad Bengaluru industrial corridor (HBIC)

Contribution to economic development:

● Increase in generation capacity is not commensurate with the increase in

Cumulative renewable energy capacity installed: 8826 MW

Andhra Pradesh an ideal location for setting up solar power projects:

AP has large agriculture consumption constituting 24% of the total energy

2. Andhra Pradesh Rural Road connectivity project:

3. AP Urban Water Supply and Septage management Improvement

6. Road Sector Project - The development objective of the project is to

7. Rural Water Supply and Sanitation Project: To improve Rural Water

8. Water Sector Improvement Project (APWSIP): To improve irrigation

9. A.P. Irrigation & Livelihood Improvement Project: To increase the

10. AP Rural High Voltage Distribution System Project To facilitate

As sericulture assures an average income of Rs. 1.35 lakh/acre/annum, the

a. Expanding cultivable area under sericulture through RBKs

a. Centrally sponsored schemes like SILK SAMAGRA, Rashtriya Krishi Vikas

a. High initial investment for establishment of mulberry garden and silkworm

● Sand reaches in state have been categorized into three:

The Government of Andhra Pradesh has consistently advanced a number of

Andhra Pradesh as a State has demonstrated its commitment to SDG goal 5 by

The goals of the State Action Plan 2021-2025 are:

• Make policy frameworks stronger

The following intervention areas were to be included in each department's

a) Support programs and welfare measures;

● Adoption of a Gender Budget;

The implementation of Gender Responsive Budget in the state is yielding results

Dr. YSR Free Crop Insurance:

The State government has launched "Free Crop insurance scheme" on

Dr. YSR Sunna Vaddi Panta Runalu: