Economy of Visakhapatnam

Areal view of Visakhapatnam city

Visakhapatnam is the largest city of Andhra Pradesh and the 8th largest city by GDP in India with $48 billion.[1][2] Fishing industry, road–rail connectivity, many heavy industries like Vizag Steel, GAIL, Hindustan Shipyard, Visakhapatnam Steel Plant etc., are the factors that made the city into an industrial hub, from a small hamlet.[3] Tourism also plays an important role in generating revenue, with numerous tourist destinations in and around the city.[4] Blessed with a natural harbour and one of the largest ports of India, sea trade was made possible with other countries which also boosts the economy.[5] the service sector contributes for 55 per cent of total GDP of Vishakapatnam, while 35 per cent comes from the industrial sector and 10 per cent from agricultural and allied sectors.[6]

Fisheries

Fishermen at work, Visakhapatnam

Fishing is a major occupation in Visakhapatnam, as many fishermen depend on fishing for their livelihood. The fishing harbour at Visakhapatnam Port Trust is one of the biggest in the coastal corridor of Andhra Pradesh and also exports seafood such as Tuna.[3][7] Fish preserving by drying, processing and curing activities takes place at the harbour. The dried fish is sent to markets in Tamil Nadu, Karnataka, and Orissa, and also exported to Sri Lanka, Singapore, Burma and others.[8] Ice factories in and outside the Visakhapatnam Fishing Harbour can produce tonnes of ice, catering to the needs of the fishermen and also provides industrial employment.[9][10]

Ports

The City, overlooking seaport

Visakhapatnam Port is one of the largest cargo handling ports in India. It can accommodate 150,000 DWT vessels and draft up to 17 m (56 ft).[11][12] The port during 2013-14 period, handled 58 million tonnes of cargo and also a cape size vessel in the outer harbour. Neighboring ports, current projects, decline in iron ore exports, Gangavaram Port, lead to loss of cargo to Visakhapatnam Port.[13]

A ₹13,000 (US$190) crores modernisation and expansion program of the port is underway, to increase the capacity to 130 million tonnes by 2016–17.[14] Products moved through the port include petroleum, steel, minerals, and foods.[15]

The inauguration of the Gangavaram Port, located 15 km away from the Visakhapatnam Port, has led to a significant diversion of traffic away from Visakhapatnam. It has the capacity of accommodating ocean liners of 200,000–250,000 DWT. The Visakhapatnam Port Trust plans to develop a satellite port at Bheemunipatnam to reduce the traffic.[16]

SEZs and industrial parks

There are Special Economic Zones (SEZs) and industrial corridors such as Visakhapatnam Special Economic Zone (VSEZ),[17] APSEZ, APIIC, Aganumpudi Industrial Park, Visakha Dairy, JNPC.[18] Brandix Apparel City, are located in and around the city. APIIC, is special economic zone for industries such as Pokarna Limited, Nagarjuna AgriChem, Abhijit Ferro Alloys etc. Brandix India Apparel City, a textile-based SEZ in Atchutapuram is situated in an area covering 1,000 acres (400 ha).[19] This SEZ has textile manufacturering companies like Pioneer Elastic Fiber, Quantum Clothing etc.[20]

Drugs and pharmaceuticals

Ramky Pharma City (India) Limited, renamed as Jawaharlal Nehru Pharma City, is a Public Private Partnership between Government of Andhra Pradesh and Ramky Group. It is a special purpose entity, setup for the manufacturing of Bulk Drugs and Pharmaceuticals. It is the first industrial township in India, spread over an extent of 2,400 acres (970 ha) with 102 companies and 8698 employees, presently in operational.[21] PharmaZell of Germany and Eisai Pharma of Japan, French collaboration with SNF Ltd, and joint US venture Aptuit Laurus Labs are the major companies in the pharma city.[22][23]

Heavy industries

A cargo ship at Vizag Shipyard

Hindustan shipyard

The defense administered Hindustan Shipyard Limited, built the first ship of India in 1948, which was named as Jala Usha and also built 167 various size of ships.[24] The ports and shipyard in the city led to the establishment of several large scale industries such as, GAIL, RINL, HPCL, BHEL, Hindustan Zinc, Dredging Corporation of India, Coromandel Fertilizers, Reliance and Brandix etc.[25][26]

Steel plant

Visakhapatnam Steel Plant, whose corporate entity RINL is the second largest state-run steel industry. The capacity of the plant has been upgraded to 6.3MT, and it covers an area of 20,000 acres (81 km2). It is planned to become a 20MT plant in the future, the largest plant in a single location. The plant had revenues of ₹144,570 million (US$2 billion) for 2011–2012 and has about 17,800 employees.[27]

Software industry

Front of large round building, with street and trees in front
Tech Mahindra Development Centre

The ITES and IT sector is growing at its pace in the city of Visakhapatnam, the generated revenue from these sectors are a boon to the economy.[28] The IT special economic zone and incubation center exists at Rushikonda Hills, of the city. There are many national and multi–national IT/ITes and banking firms such as Mahindra Satyam, Wipro, Kenexa, Infotech, IBM, Sutherland, and HSBC etc. Software exports from Visakhapatnam have increased by nearly 90% each year.[29]

The IT exports from the city for 2012 were Rs 1200 crore and 16,000 people were employed. According to data released by the state IT department for the financial year 2012–13, IT industry registered an impressive in IT/ITeS revenues, that generated ₹1,445 crore (US$210 million), an increase of 20%, compared to the previous financial year. The same year saw an increase in employment, generated by the IT/ITeS industry, with 16,988 jobs as compared to 16,000 in 2011–12 period.[30] The Information Technology Investment Region (ITIR) project, planned by the Government of Andhra Pradesh, may generate employment to approximately, up to 15 lakh IT professionals and also the it can generate revenue for the economy, of up to ₹3.11 crore (US$460,000).[31]

Minerals and resources

Visakhapatnam and its surrounding areas are having mineral deposits of quartzite, bauxite, graphite, manganese, titanium, silica sand and 1,000 MT of bauxite reserves. The Iron ore and other minerals, from the neighbouring states are transported through rail and road to Visakhapatnam. These minerals are exported through sea to other countries.[32] Ilmenite is used for extraction of titanium and Monazite for extraction of thorium are found at Bheemunipatnam.[33] Ferroalloy plants, Aluminium refineries (such as Anrak Aluminium and Jindal Aluminium) are developing, due to the close proximity of manganese and bauxite.[34]

Hazy photo of chemical factory
HPCL Petrochemical Complex

Petro corridor

Visakhapatnam holds crude oil reserves with Hindustan Petroleum Corporation Refinery, IOC and BPCL have their bottling units in the city.[35] Visakhapatnam is a part of the Visakhapatnam–Kakinada Petroleum, Chemical and Petrochemical Investment Region (VK PCPIR), proposed between Visakhapatnam and Kakinada.[36]

Power plants

Simhadri Super Thermal Power Plant is a coal-based power plant under the ownership of NTPC Limited. It has a capacity of 2000 MW with 4 units of 500 MW each.[37] Hindujas has begun construction of a 1,040 MW coal-based thermal power plant in Visakhapatnam district with two 520 MW units.[38]

See also

References

  1. ↑ "India's top 15 cities with the highest GDP".
  2. ↑ Nicole Bippen (17 February 2014). "The 10 Richest Indian Cities". The Richest. Retrieved 15 July 2014.
  3. 1 2 Philip Amis; Sashi Kumar. "Urban economic growth, infrastructure and poverty in India: lessons from Visakhapatnam" (PDF). Environment&Urbanization Vol 12 No 1 April 2000. Retrieved 15 July 2014.
  4. ↑ "Vizag". Andhra Pradesh Tourism. Retrieved 23 July 2014.
  5. ↑ "Visakhapatnam Article". Encyclopedia Britannica. Retrieved 23 July 2014.
  6. ↑ Raju, VDS Rama (2014-09-07). "Vizag district eyes 100% GDP growth". Business Standard India. Retrieved 2016-11-10.
  7. ↑ "A career in Vizag". The Hindu. 7 Nov 2012. Retrieved 22 May 2014.
  8. ↑ Madhumita Das; Prathibha Rohit; G. Maheswarudu; Biswajit Dash; P. V. Ramana. "An overview of dry fish landings and trade at Visakhapatnam Fishing Harbour" (PDF). Central Marine Fisheries Research Institute. Regional Centre of CMFRI, Visakhapatnam: Marine Fisheries Information Service T&E Ser., No. 215, 2013.
  9. ↑ "Ice Production" (PDF). National Institute of Fisheries Post Harvest Technology and Training, Kochi. Retrieved 22 July 2014.
  10. ↑ "Cold storage unit in Vizag". THE HINDU. Rajahmundry. 30 April 2011. Retrieved 22 July 2014.
  11. ↑ "Port structure" (PDF). vizagcustoms. Retrieved 22 May 2014.
  12. ↑ "Visakhapatnam Port Trust". vizagport. Retrieved 8 May 2014.
  13. ↑ "VPT FY:2013-14". The Hindu. 1 April 2014. Retrieved 24 May 2014.
  14. ↑ "Modernization and expansion of port". The Hindu. 23 Sep 2012. Retrieved 24 May 2014.
  15. ↑ "Commodity terminal at vizag seaport". vizagseaport. Retrieved 24 May 2014.
  16. ↑ "Satellite port at Bhimili". The Hindu. August 28, 2012. Retrieved 23 November 2012.
  17. ↑ "Visakhapatnam Special Economic Zone". Special economic zones in India. sezindia. Retrieved 8 May 2014.
  18. ↑ "Jawaharlal Nehru Pharmacity". ramky. Retrieved 24 May 2014.
  19. ↑ "Brandix Apparel City". sezindia.nic.in. Retrieved 2014-05-08.
  20. ↑ Students' Academy. Visakhapatnam-The City of Destiny-India. Lulu.com. ISBN 978-1-25-706510-3. Retrieved 23 July 2014.
  21. ↑ "Ramky pharma city" (PDF). IGEP Foundation. Retrieved 24 May 2014.
  22. ↑ "Eisai Pharmatechnology and Manufacturing". eisai. Retrieved 24 May 2014.
  23. ↑ "SNF (India)". snf-india. Retrieved 24 May 2014.
  24. ↑ "Ship Building Division". Hindustan Shipyard Limited. Retrieved 6 August 2014.
  25. ↑ "City Overview VISAKHAPATNAM" (PDF). commonfloor. Retrieved 6 August 2014.
  26. ↑ Hema gopalakrishnan (7 Nov 2012). "City overview". The Hindu. Retrieved 24 May 2014.
  27. ↑ "vizag steel corporate profile". vizagsteel. Retrieved 24 May 2014.
  28. ↑ B.V. PRASAD (6 October 2013). "Bright prospects for IT in Vizag". The Hindu. Retrieved 24 July 2014.
  29. ↑ Students' Academy. Visakhapatnam-The City of Destiny-India. Lulu.com. pp. 43–45. ISBN 978-1-257-06510-3. Retrieved 24 July 2014.
  30. ↑ "IT Revenues". The Hindu. Retrieved 2014-05-08.
  31. ↑ "ITIR in Vizag expected to be in place soon: AP Governor". The Economic Times. Hyderabad. 26 Jan 2014. Retrieved 24 July 2014.
  32. ↑ "Mineral Deposits" (PDF). mines.nic.in. Retrieved 2014-07-23.
  33. ↑ "Mining extraction". Retrieved 2014-05-08.
  34. ↑ "Refineries of Aluminium". Retrieved 2014-05-08.
  35. ↑ "Crude Oil Reserves" (PDF). Retrieved 2014-05-08.
  36. ↑ "PCPIR Zone" (PDF). Vuda.gov.in. Retrieved 2014-05-08.
  37. ↑ "Simhadri super power plant". NTPC. |first1= missing |last1= in Authors list (help)
  38. ↑ "Hinduja National Power Corporation Limited (HNPCL)". Hinduja Group. Retrieved 23 July 2014.
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