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Economy of Visakhapatnam

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Aerial view of Visakhapatnam city

Visakhapatnam is the largest city of Andhra Pradesh. Visakhapatnam has a GDP of $43.5 billion.[1] It is the 9th richest city in India.[2] Fishing industry, road–rail connectivity, many heavy industries like Hindustan Petroleum, Visakhapatnam Steel Plant, Hindustan Shipyard, Visakhapatnam Port Trust, National Thermal Power, Bharat Heavy Electricals, BARC, Naval Science and Technological Laboratory, Naval Dockyard, Dredging Corporation of India, Strategic Petroleum Reserve, NMDC, CONCOR, Andhra Pradesh Medtech Zone etc..

Private sector like Coromandel International, Ferro Alloys Corporation, Gangavaram Port, 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 the total GDP of Visakhapatnam, while 35 per cent comes from the industrial sector and 10 per cent from agricultural and allied sectors.[6]

Fisheries

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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 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 Fishing Harbour Visakhapatnam can produce tonnes of ice, catering to the needs of the fishermen and also provides industrial employment.[9][10]

Ports

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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$160) 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

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Panoramic View of Naval Industrial Area

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, Andhra Pradesh Medtech Zone.[18]

Pharmaceuticals

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Jawaharlal Nehru Pharma City (Ramky Pharma City (India) Limited) 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.[19] PharmaZell of Germany and Eisai Pharma of Japan, French collaboration with SNF Ltd, joint US venture Aptuit Laurus Labs and US multinational company Hospira Healthcare Private Limited (a Pfizer Company) are major companies in the pharma city.[20][21]

Heavy industries

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A cargo ship at Vizag Shipyard

Hindustan shipyard

Jalausha on Stamp of India released on National Maritime Day.

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.[22] The ports and shipyard in the city led to the establishment of several large scale industries such as, GAIL, HPCL, BHEL, Hindustan Zinc, Dredging Corporation of India, Coromandel Fertilizers, Reliance and Brandix etc,[23][24] and industries headquartered in Visakhapatnam are RINL, Dredging Corporation of India, etc.

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.[25]

Software industry

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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.[26] 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, Pulsus Group,[27][28] Wipro, Kenexa, Infotech, IBM, Sutherland, and HSBC etc. Software exports from Visakhapatnam have increased by nearly 90% each year.[citation needed]

The IT exports from the city for 2012 were ₹1,200 crore and 16,000 people were employed. According to data released by the state IT department for the financial year 2012–13, IT/ITeS generated revenue of ₹1,445 crore (US$170 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.[29] 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$370,000).[30]

Visakhapatnam, as part of the Digital India IBPS scheme, has generated 10,000 jobs.[31] The state of Andhra Pradesh secured 13,792 seats out of a total of 48,300 seats allocated across India.[32]

Minerals and resources

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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.[33] Ilmenite is used for extraction of titanium and Monazite for extraction of thorium are found at Bheemunipatnam.[34] Ferroalloy plants, Aluminium refineries (such as Anrak Aluminium and Jindal Aluminium) are developing, due to the close proximity of manganese and bauxite.[35]

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.[36] Visakhapatnam is a part of the Visakhapatnam–Kakinada Petroleum, Chemicals and Petrochemicals Investment Region (VK PCPIR), proposed between Visakhapatnam and Kakinada.[37]

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.[38] Hindujas has begun construction of a 1,040 MW coal-based thermal power plant in Visakhapatnam district with two 520 MW units.[39]

See also

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References

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  1. ^ "Richest Cities Of India". businessworld.in. Retrieved 23 March 2022.
  2. ^ "Vizag 9th richest city in country".
  3. ^ a b 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. Archived from the original on 30 June 2014. Retrieved 23 July 2014.
  5. ^ "Visakhapatnam Article". Encyclopædia Britannica. Retrieved 23 July 2014.
  6. ^ Raju, VDS Rama (7 September 2014). "Vizag district eyes 100% GDP growth". Business Standard India. Retrieved 10 November 2016.
  7. ^ "A career in Vizag". The Hindu. 7 November 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. Archived from the original on 3 May 2014. 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 September 2012. Retrieved 24 May 2014.
  15. ^ "Commodity terminal at vizag seaport". vizagseaport. Archived from the original on 22 February 2014. Retrieved 24 May 2014.
  16. ^ "Satellite port at Bhimili". The Hindu. 28 August 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. Archived from the original on 22 September 2013. Retrieved 24 May 2014.
  19. ^ "Ramky pharma city" (PDF). IGEP Foundation. Archived from the original (PDF) on 25 May 2014. Retrieved 24 May 2014.
  20. ^ "Eisai Pharmatechnology and Manufacturing". eisai. Archived from the original on 25 May 2014. Retrieved 24 May 2014.
  21. ^ "SNF (India)". snf-india. Retrieved 24 May 2014.
  22. ^ "Ship Building Division". Hindustan Shipyard Limited. Archived from the original on 6 July 2014. Retrieved 6 August 2014.
  23. ^ "City Overview VISAKHAPATNAM" (PDF). commonfloor. Retrieved 6 August 2014.
  24. ^ Hema Gopalakrishnan (7 November 2012). "City overview". The Hindu. Retrieved 24 May 2014.
  25. ^ "vizag steel corporate profile". vizagsteel. Retrieved 24 May 2014.
  26. ^ B.V. PRASAD (6 October 2013). "Bright prospects for IT in Vizag". The Hindu. Retrieved 24 July 2014.
  27. ^ "Pulsus campaign in association with STPI against plastic use". The Hans India. 4 October 2019. Retrieved 20 January 2020.
  28. ^ "ITIR in Vizag expected to be in place soon: AP Governor". The Hindu. 15 March 2020. Retrieved 20 January 2020.
  29. ^ "IT Revenues". The Hindu. Retrieved 8 May 2014.
  30. ^ "ITIR in Vizag expected to be in place soon: AP Governor". The Economic Times. Hyderabad. 26 January 2014. Archived from the original on 31 January 2014. Retrieved 24 July 2014.
  31. ^ "BPO, IT sectors generate 10k jobs despite lockdown woes". The Times of India. 24 November 2020.
  32. ^ "Visakhapatnam-based firm gets 5,000 seats under IBPS". The Times of India. 24 September 2023.
  33. ^ "Mineral Deposits" (PDF). mines.nic.in. Archived from the original (PDF) on 14 May 2014. Retrieved 23 July 2014.
  34. ^ "Mining extraction". Archived from the original on 8 May 2014. Retrieved 8 May 2014.
  35. ^ Reporter, B. S. (16 May 2013). "Refineries of Aluminium". Business Standard India. Retrieved 8 May 2014.
  36. ^ "Crude Oil Reserves" (PDF). Retrieved 8 May 2014.
  37. ^ "PCPIR Zone" (PDF). Vuda.gov.in. Archived from the original (PDF) on 10 August 2013. Retrieved 8 May 2014.
  38. ^ "Simhadri super power plant". NTPC.
  39. ^ "Hinduja National Power Corporation Limited (HNPCL)". Hinduja Group. Retrieved 23 July 2014.
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