Analysis of Infrastructural Economic Planning For Special Economic Zones

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ANALYSIS OF INFRASTRUCTURAL ECONOMIC PLANNING FOR SPECIAL ECONOMIC ZONES
M.Tech Project-II Report submitted to Indian Institute of Technology, Kharagpur In partial fulfillment for the award of the degree
of
Master of Technology in Infrastructure Design and Management

by
Nishanth Vadduri (09ID6016)

under the guidance of
Prof. Dr. Uttam Kumar Banerjee Prof.Dr. Joy Sen
SCHOOL OF INFRASTRUCTURE DESIGN AND MANAGEMENT INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

Analysis of Infrastructural Economic Planning For the Special Economic Zone Master of technology- Thesis- School of Infrastructure Design and Management
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MAY 2011
DECLARATION BY STUDENT
I certify that a. the work contained in this report has been done by me under the guidance of my supervisor(s). b. the work has not been submitted to any other Institute for any degree or diploma. c. I have conformed to the norms and guidelines given in the Ethical Code of Conduct of the Institute. d. whenever I have used materials (data, theoretical analysis, figures, and text) from other sources, I have given due credit to them by citing them in the text of the thesis and giving their details in the references. Further, I have taken permission from the copyright owners of the sources, whenever necessary.
Date :
Signature of the Student
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CERTIFICATE BY SPERVISOR(S)
This is to certify that the project report entitled Analysis of Infrastructural Economic planning for Special Economic Zones, submitted by Nishanth Vadduri to Indian Institute of Technology, Kharagpur, is a record of bona fide project work carried out by him under my (our) supervision.
__________________________ Superviser
______________________ Superviser
Date:
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ACKNOWLEDGEMENT
I express my deep gratitude to my project guide Prof. Uttam K Banerjee and Prof. Joy Sen for their valuable guidance and Prof. K. S. Reddy for his constant support without which this project would not have proceeded. I would also like to thank Prof. Bhargab Maitra, Prof. M. Tiwari, Prof. B. Mohanty, Prof. R. P. Pradhan, Prof. Sudeshna Mitra, Prof. S Mukhpoadadhyay and Prof. Sudeshna Mitra for patiently listening to all my reviews and giving positive criticism and constructive suggestions. I would like to acknowledge the help extended to me by Shri A. S. P. Sarma, Secretary (I/c) of VSEZ Authority Court Matters, Publicity matters Central Component of ASID; Shri Durga Prasad Vadduri Civil Advocate, Hyderabad. I thankfully acknowledge the help of my friends Sri Harini Reddy, Anand ( Bawa ), Samadhan K B, Sandhya Chowdary Potluri , Ashish J Kothari, Minu, Kuna Kranthi Anil Rao M, Sunil kasina and Krishna P towards the data collection process and for giving me continuous support. Above all, I would like to thank my parents, brother, sister in law and finally my dear Manasa Murty Ledala for giving moral support throughout my project and my life.
Date :
Signature of the Student (Nishanth Vadduri)
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LIST OF SYMBOLS (OPTIONAL) List of figures :

Fig 1: Aerial view of VSEZ -Duvvada Fig 2: Free trade warehouse zone Fig 3: Standard Design Factory Fig 4: Aerial View of the VSEZ with Road connectivity Fig 5: Riverside view from falta SEZ Fig 6: Standard design factory, Falta Sez Fig 7: Aerial view of the proposed site including the Ragiv Gandhi Airport, Hyderabad
List of Tables :
Tab 01 : Distribution of land use:Tab 02 : Work Force and Proposed Land use structure of Urban Centres in Plain areas Tab 03 : Percentage of developed area Tab 04 : Size of town Tab 05 : Water requirements for institutional buildings Tab 06 : Socio-Cultural facilities: Tab 07 :Fire Tab 08 : Commercial Activity: Tab 09 : Commercial Activity: Tab 10 : Norms for informal activities Tab 11 : Recreational Facilities Tab 12 : Socio- cultural facilities Tab 13: Parking Tab 14: Break up area for Frieght Movements: Tab 15: Data of the Exports of the various Industries (2005-2010) Tab 16: Results of Regional Shift Tab 17: Excel Sheet explains the procedure for calculating the Equation for IT&ITES Tab 18: Excel Sheet explains the procedure for calculating the Equation for Pharmaceuticals Tab 19: Excel Sheet explains the procedure for calculating the Equation for Textile Industries Tab 20: Regression equations for selected sectors Tab 21: Optimized area and employment details of each Sector
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CONTENTS
Title Page Declaration by the Student Certificate by the Supervisor Acknowledgement List of Tables List of Figures Abstract Contents Chapter 1: 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Introduction vi i ii iii iv v
Preamble Need for the project Aim Objectives Scope and Limitation Study approach Work methodology
Chapter 2: 2.1 2.2 2.3 2.4 2.5 2.6
Literature Review
Background of India and Andhra Pradesh Concept of Special Economic Zone Procedure for Setting up the SEZ in India Shift and Share Analysis Regression Analysis Linear Programming Models
Page |7 Chapter 3: 3.1 3.2 3.3 Case studies & UDPFI Guidelines
UDPFI guideline for all Infrastructural facilities Design concepts of Special Economic Zone Case studies of VSEZ and FALTA SEZ
Chapter 4: 4.1 4.2 4.3 4.4
Data Framework and Data Analysis
Data collection Tools and techniques for analytical study Shift and Share technique of Analysis Linear Programming model for Optimum Area calculation
Chapter 5: 5.1 5.2 5.3 5.4 5.5 5.6
Proposal and Recommendation
Proposed Site Location for Hyderabad Special Economic Zone Concept of design types of Special Economic Zone Selections of Design and Factors involving in the Internal design. Calculation of all the Infrastructural facilities by UDPFI guidelines A broad outline or layout of the proposed Master plan of Hyderabad SEZ Recommendation
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ABSTRACT
In the past years, India has achieved phenomenal economic growth, an unprecedented development miracle in human history. How did India achieve this rapid growth? What have been its key drivers? Special Economic Zone (SEZ) model is a commonly used key driver in developing countries to generate economic growth, to attract foreign direct investment, to increase employment and to improve living conditions, and thereby secures coordination between economic and urban development policies aimed at promoting evenness of regional development. With a large number of special economic zones (SEZ) set to come up within the next few years across the country, the urban development ministry has expressed concerns regarding urban planning nightmares that may arise in the form of unplanned new townships on the periphery of these SEZs. Infrastructure is the main determinant of SEZ success. Hyderabad is uniquely conceived as a fully integrated, functionally viable, and modern business location. It is also one of the most rapidly growing cities and is currently the fifth largest city in India. The IT hub in Southern Indian state of Andhra Pradesh is easily accessible. Regular flights, frequent trains and the excellent road network make Hyderabad a great travel destination. Hyderabad ranks highest on all the parameters that are principal factors for an offshore operation, What's more, 23% of India's software professionals, 14.75 % of Indias textile work force,18 % in Gems and Jeweler industries and many more work force are originate from the State of Andhra Pradesh. These stats easily convey us that Multi Product Special Economic Zone in Hyderabad can achieve zenith position in all parameters and for the betterment of Andhra Pradesh and India. This study briefly summarizes the complete infrastructure and economic based planning for the Special Economic Zone in Hyderabad, a multi product SEZ (HSEZ), which along with its economic infrastructure can be utilized to develop the region and to achieve a more balanced urbanization in Andhra Pradesh, unlike other multi product SEZs in India. This is achieved based on 5 steps. (i) Extensive reviews of the existing literature on SEZs, (ii) Shift and share analysis using exports, investments and employments of the industrial sectors (which helps in identifying major sectors having proper scope in all parameters especially employment), (iii) Case studies- Visakhapatnam SEZ (issues related to infrastructure such as transportation infrastructure and social infrastructure), (iv) Validation of the industries selected (optimum area calculation) and (v) Preparation of master plan for HSEZ- Multi product SEZ. No financial matters are dealt.
Keywords : Special Economy Zone, Shift and Share Analysis, Planning for Special Economic Zone.
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Chapter 1 INTRODUCTION
1.1 Preamble Area in and around Rajiv Gandhi International Airport, Hyderabad is very attract for the Foreign Direct Investment and is in huge demand for the Manufacture industries like textile , aviations industries, electronic equipments, pharma, IT& ITES, etc. Since the availability of resources like all Infrastructural facilities, various education institutions, and human power. So adding the Special economic zone will surely ensure the development of Hyderabad and in turns Andhra Pradesh in terms of Employment since the main single point agenda of SEZ is the to increase the employment. It has been proved that Andhra Pradesh being the most successful state in the development of SEZ and has topped in the number of SEZ list and also the revenue share 5 years.
1.2 Need for the project Any state or any metro city or any developing city needs to have a Special economic zone build. This encourages the employment, because in upcoming years due to the increase of the population employment can be affective. The Special Economic Zone available are not giving full profit has expected with a few certain target. Since there is a failure in the planning of SEZ in an Economic based. Any industry coming doesnt make sense in achieving the expected targets. State Andhra Pradesh is the top states having many SEZs as per the Commerce of India, but only few are generating revenue and employment like DLF Gachibowli, and VSEZ, etc. As per the discussion with A S P Sarma the Publicity secretary of VSEZ, says that an Economic based Special economic zone will fetch the development in all the aspect like revenue, employment, R& D research, new technology, trading in and out, market improvement, etc. 3 National Highways passing through the entire state (NH-7,9 and 202), Historically recognized, has many famous universities like Osmania University, JNTU and Andhra University which are providing many man power resource, water supply with 2 major river ( Godavari and Krishna), etc. So finally a planned Economic based Special economic zone helps in various way and make an value added asset to the developed of Hyderabad in term of FDI, employment etc.
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1.3 Aim The project aims at designing a project which helps in the promoting the good rate of exports and generating the employment in the Andhra Pradesh, India. The single point agenda mentioned above can be achieved through following goals. Goals 1 - Preparation of a complete master plan of Hyderabad special economic zone. 1.4 Objectives The following objectives are derived from the above stated goals, a) To identify the term of requirements in HSEZ for the proper infrastructural facilities. b) To analyze the leading and lagging industries in the Hyderabad, Andhra Pradesh. c) To strategically formulate the physical infrastructure facility in both the Processing and non processing zone. 1.5 Scope and Limitations a) Carry out all the infrastructure related issue from the existing SEZs available. b) Tracking out all the loopholes of existing available SEZs and modeling it (if any). c) Market studies and feasibility survey among the units or firms establishing in the SEZ. d) Carry out the relationship and market play among the other firms in the Andhra Pradesh. e) No financing aspects of SEZ will be involved in the project.
P a g e | 11 1.6: Study approach The project goal will be achieved through the following 4 staged study approach Literature Review
Understand the basic concepts of Special Economic Zone. Understand terms of requirements Identify the tools and techniques required to selection of Industrial sectors, areas of the zone Relevant case studies Study the UDPFI Guidelines
Data Collection Identification of data requirement Primary data: Experts opinion, Exports and Imports Secondary data : Maps and reports, Research papers and Employment data
Data Analysis
Identification of Infrastructure requirement from UDPFI guidelines reports and case study Shift and Share analysis for the data collected Exports and Imports. Regression Analysis for each sectors selected Linear Programming Model for Optimum area calculations
Proposal and Recommendation (outcomes) Selection of the area or zone Design proposal and suitable recommendation
P a g e | 12 1.7: Work methodology Problem Identification Economic scenario in the region of India and Andhra Pradesh Need of the Project
Special Economic Zone in Hyderabad
Aims, goals and Objectives Literature Review
Concept of Special Economic Zone Tools and Techniques Case studies on SEZ
Data Collection Primary Data :

Exports and Imports Expert Opinion
Secondary data : Map and reports, Research papers Employment data
Requirement of Infrastructural aspects for the Special Economic Zone
Data Analysis Shift and Share Analysis for the Manufacturing Industries in Andhra Pradesh

Regression Analysis for the Selected Industries based on Employment data Linear Programming method for optimum Area calculation
UDPFI Guideline for Infrastructural Requirements
Concept of Special Economic Zone Design
Planning of Processing Area and Non Processing areas
Preparation of Master Plan of Hyderabad Special Economic Zone

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Chapter 2 :
LITERATURE REVIEW
2.1: Background of SEZ in India.

Lately, India, or at least its economic growth, seems to be on everybodys agenda the world over. Its economic development particularly fires the imagination of Indian and foreign investors. This has led to books being published with titles like Global Power India or slogans like China was yesterday, India is today. Many institutions such as the Indo-German Chamber of Commerce or various consulting companies in Germany sing the Indian tune and recommend doing business in the subcontinent. What to companies and investors may seem to be a vast new horizon for investment offering a plethora of opportunities, is not necessarily welcomed unanimously in India. The development of Special Economic Zones (SEZs) is one element in this vein which is currently leading to a great deal of conflict between various actors, be they political or societal. This is all the more interesting as India was certainly not known as a country that inspired foreign investors. India is one of the first countries in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports. Asias first EPZ was set up in Kandla in 1965. In the year 1991, after having visited China and one of their Special Economic Zones (SEZs), the Commerce and Industry Ministers reviewed to the way to improve the climate for exports with FDI in mind as they realized the need for a levelplaying field to be made available to the domestic enterprises and manufacturers for India to be competitive globally as well as enhancing the infrastructure, also in hitherto underdeveloped regions of India. Since 2000, the government has been seriously thinking of promoting Indian Special Economic Zones, which the aforementioned Minister, Mr. Murasoli Maran, once described as our best dream projects and as magnet and glue magnet to attract FDI and glue to identify and bind strategies that will benefit a large number of people and organizations Accordingly, The Government of India (GoI) first introduced the concept of SEZ in the Export -Import Policy 2000 with a view to provide an internationally competitive and hassle free environment for exports. As the performance of EPZs fell far short of expectations due to various reasons, the SEZs were conceived as a much larger and more efficient form. The policy provides for setting up of SEZs in the public, private, joint sector or by State Governments. After the introduction of SEZ scheme in the EXIM Policy from 01.04.2000, all existing FTZ/EPZ have been converted to SEZ.
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2.2: Concept of Special Economic Zone

Special Economic Zones (SEZs) were set up by the Government of India to augment infrastructure facilities for export production. The Ministry of Commerce and Industry launched the SEZ scheme in April 2000 to provide an internationally competitive and hassle free environment for export. SEZs are specifically delineated duty free enclaves and are deemed to be foreign territories for the purposes of trade operations, duties and tariffs Special economic Zones are considered as growth engines that can boost manufacturing, augment exports and generate employment. Components of a Special Economic Zone include infrastructural facilities like roads, airports, ports, transport system, generation and distribution of power, telecom, hospitals, hotels, educational institutions, leisure and entertainment units, residential / industrial / commercial complexes, water supply sanitation and sewerage system and any other facility required for development of the Zone. Special economic Zones enjoy a number of fiscal benefits including benefits under Income Tax, Customs, Excise, VAT, Service Tax, etc and hence are considered a very promising business destination. 2.2.a: What is Special? The word "Special" mainly means special economic systems and policies. In other words, the central government gives the special economic zones special policies and flexible measures, allowing them to utilize a special economic management system. Special tax incentives for foreign investments in the special economic zones. Greater independence on international trade activities. Economic characteristics are represented as "4 primacies": 1) Constructions primarily rely on attracting and utilizing foreign capitals; 2) Primary economic forms are Sino-foreign joint ventures and partnerships as well as wholly foreign-owned enterprises; 3) Products are primarily export-oriented; 4) Economic activities are primarily driven by market. Special economic Zones are listed separately in the national planning (including financial planning) and have province-level authority on economic administration.
P a g e | 15 2.2.b: Objectives and Salient features of Special Economic Zone The main objectives of SEZ scheme can be briefly stated as: 1. Attract Foreign Direct Investment (FDI) 2. Earn foreign exchange and contribute to exchange rate stability 3. Boost the export sector, especially non traditional exports 4. Create employment opportunities 5. Introduce new technology 6. Develop backward regions 7. Stimulate sectors such as electronics, information technology, R & D, tourism, infrastructure and human resource development that are regarded as strategically important to the economy 8. Create backward & forward linkages to increase the output and raise the standard of local enterprise that supply goods and services to the zone 2.2.c: Salient features of Special economic zones The Salient features of Special economic zones include 1. No License required for import 2. Manufacturing, trading or services activities allowed 3. Full freedom of subcontracting 4. No routine examination of export import cargo by customs authorities 5. SEZ units to have positive net foreign exchange earner 6. Financial incentives like tax holidays, duty free imports and exports 7. Single window clearance 8. high quality infrastructure 9. Strategic location and market access Special Economic Zones in India are governed by provisions of Special Economic Zones Act, 2005 and Special Economic Zones Rules 2006. Up to the end of March, 2010, 363 private SEZs notified under the SEZ Act, 2005. Currently there are 19 functional SEZs. The SEZ units provide employment to about 1.10 Lakhs persons (out of which 40% are Females) Exports: Year 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Value (Rs. Crores) 18,314 22809 34,615 66,638 99,689 42501.76 Growth Rate (over previous year ) 32% 25% 52% 92% 50%
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2. 3: Procedure for Setting up the SEZ in India

SEZ can be formed in three ways
By Applying to State Govt
By applying to Board of Approval
Central Govt may suo-motto set up and notify SEZ
With in 45 days
With in 6Months
State Govt forward the Proposal to Board of Approval
Obtain the concurrence of State Govt
After consulting the State Government and identifying the area
Board of Approval approves the proposal Within 60 days Central Government shall issue letter of Approval to developer
By Applying to State Govt
Developer shall furnish to Central Govt information
Central Govt will notify the area as Special Economic Zone
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2.4: Concept of Shift and Share Analysis

Shift-share analysis is one way to account for the competitiveness of a region's industries and to analyze the local economic base. This analysis is primarily used to decompose exports or employment changes within an economy over a specific period of time into mutually exclusive factors. It paints a picture of how well the region's current industries are performing by systematically examining the national, local, and industrial components of exports or employment change. A shift-share analysis will provide a dynamic account of total regional exports or employment growth that is attributable to growth of the national economy, a mix of faster or slower than average growing industries, and the competitive nature of the local industries. Like other analytical economic tools, the shift-share technique is only a descriptive tool. Once completed, the analysis provides a representation of changes in exports or employment growth or decline, and it is useful for targeting industries that might offer significant future exports increase or employment opportunities. By interpreting data provided by shift-share, we can explore the advantages your local area may enjoy, as well as identify growth, or potential growth industries that are worthy of further investigation.
SS = NS + IM + RS SS= shift share NS= National Share IM=Industrial Mix RS= Regional Shift The equations for each components are :
NS = S(t-1) * ( oNt / oN (t-1) ) IM = [S(t-1) * ( iNt / iN(t-1) ] NS RS = S(t-1) * [ (S(t)/ S(t-1) - (iNt / iN(t-1))]
What do the subscripts, superscripts and the alphabets indicates? S(t-1) = total exports of an industry (i) at the beginning of the analysis period (t-1). S(t) = total exports of an industry (i) at the end of the analysis period (t). (t-1) = total exports of the Nation at the beginning of the analysis period (t-1). oN t N = total exports of the Nation at the end of the analysis period (t). o t iN = total exports of the Nationwide in an industry, at the beginning of the analysis period (t-1) (t-1) = total exports of the Nationwide in an industry, at the end of the analysis period (t) iN
P a g e | 18 2.4.a: Components of Regional Industry Exports or Employment Change As stated above, the shift-share analysis divides the change in local industry exports into three components. National growth share - The share of local exports growth that can be attributed to growth of the national economy. Specifically, if the nation as a whole is experiencing exports growth, ("a rising tide lifts all boats"), one would expect total national growth to exert a positive growth influence on the local area. This factor describes the change that would be expected simply by virtue of the fact that the local area is part of a changing national economy. In the analysis, we first examine the national growth share, or the number of exports lost or gained in a region if total exports in the region had changed at the same rate as overall total national exports. Industrial mix - The share of local exports growth that can be attributed to the region's mix of industries being analyzed. This second factor is the change in a local industry that would be attributable to the growth or decline of the industry nationally. This component isolates the fact that nationwide, some industries have grown faster or slower than others. It represents the contribution that a specific industry nationally has made to the change in the number of exports in the region. Local share (Regional shift) - This share of local exports growth describes the extent to which factors unique to the local area have caused growth or decline in regional exports of an industrial group. We observe that even during periods of general prosperity, some regions and still some industries grow faster than others do. This is usually attributed to some local comparative advantage such as natural resources, linked industries, or favorable local labor situations. The local component aids in identifying a local area's economic strengths. This element of the analysis is a representation of how a region's competitive position can contribute to regional exports growth. Shift-share, and the local share component in particular, can point to industries that enjoy local comparative advantage. It cannot, however identify what the actual comparative advantage is. It is important to identify what factors have contributed to the local area in outperforming the nationwide growth. This wide range of factors is very diverse and often includes elements such as: a) Local raw materials or local inputs b) Transportation methods c) Local wage rates d) Influence of local industries e) University influences f) Local consumption and savings g) Other comparative advantages
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It is also important to identify whether the large gainers or losers are basic, or export industries of your region. These industries are important to your local economy for job creation. In addition these industries are key to pulling in dollars from outside of the local region and thus have a "multiplier" effect. By this we mean that these "basic" industries will generate larger revenues in the long run because they are attracting money from outside of your workforce area as well as creating new jobs within the region. 2.4.b:Limitations It should be noted that shift-share is a simple analytical technique and does not account for many factors. Most notably, it minimizes the impact of issues such as business cycles, identification of actual comparative advantages, and differences caused by levels of industrial detail. A shift-share industrial analysis is a "snap-shot" of 2 particular time frames and may not give an entirely clear picture of the local, and national economies because the results are sensitive to the period of time chosen. Shift-share analysis does however offer a simple, straight forward approach to separating out the national and industrial contributions from local or regional exports or employment growth.
P a g e | 20 REGRESSION ANALYSIS In statistics, regression analysis includes any techniques for modeling and analyzing several variables, when the focus is on the relationship between adependent variable and one or more independent variables. More specifically, regression analysis helps one understand how the typical value of the dependent variable changes when any one of the independent variables is varied, while the other independent variables are held fixed. Most commonly, regression analysis estimates the conditional expectation of the dependent variable given the independent variables that is, the average value of the dependent variable when the independent variables are held fixed. Less commonly, the focus is on a quantile, or other location parameter of the conditional distribution of the dependent variable given the independent variables. In all cases, the estimation target is a function of the independent variables called the regression function. In regression analysis, it is also of interest to characterize the variation of the dependent variable around the regression function, which can be described by a probability distribution. Regression models involve the following variables:

The unknown parameters denoted as ; this may be a scalar or a vector. The independent variables, X. The dependent variable, Y.
In various fields of application, different terminologies are used in place of dependent and independent variables. A regression model relates Y to a function of X and .
The approximation is usually formalized as E(Y | X) = f(X, ). To carry out regression analysis, the form of the function f must be specified. Sometimes the form of this function is based on knowledge about the relationship between Y and X that does not rely on the data. If no such knowledge is available, a flexible or convenient form for f is chosen.
LINEAR PROGRAMMING MODELS: Linear programming (LP) is a mathematical method for determining a way to achieve the best outcome (such as maximum profit or lowest cost) in a given mathematical model for some list of requirements represented as linear relationships. Linear programming is a specific case of mathematical programming. More formally, linear programming is a technique for the optimization of a linear objective function, subject to linear equality and linear inequality constraints.
P a g e | 21 Given a polytope and a real-valued affine function defined on this polytope, a linear programming method will find a point on the polytope where this function has the smallest (or largest) value if such point exists, by searching through the polytope vertices. Linear programs are problems that can be expressed in canonical form:
where x represents the vector of variables (to be determined), c and b are vectors of (known) coefficients and A is a (known) matrix of coefficients. The expression to be maximized or minimized is called the objective function (cTx in this case). The equations Ax b are the constraints which specify a convex polytope over which the objective function is to be optimized. (In this context, two vectors are comparable when every entry in one is less-than or equal-to the corresponding entry in the other. Otherwise, they are incomparable.) Linear programming can be applied to various fields of study. It is used most extensively in business and economics, but can also be utilized for some engineering problems. Industries that use linear programming models include transportation, energy, telecommunications, and manufacturing. It has proved useful in modeling diverse types of problems in planning, routing, scheduling, assignment, and design.
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CHAPTER 3: CASE STUDIES AND UDPFI GUIDELINES

3.1 : CASE STUDIES OF VSEZ & FALTA SEZ 3.1.a: Case Study of Visakhapatnam Special Economic Zone: (primary source) SEZs have contributed to the growth and development of the Indian economy in terms of exports, employment and investments. It is the key growth driver of nations economy and has made the country globally competitive. There are 73 SEZs in Andhra Pradesh, covering an area of approximately 27,722 hectares. Andhra Pradesh owns one functional SEZ, Visakhapatnam SEZ, covering an area of 536.54 hectares.
Fig 1: Aerial view of VSEZ -Duvvada Findings from the Literature Case studies: The success of the SEZs attributes to the following factors. a) Strategic Location b) Multi modal connectivity c) Bigger size and multiple productivity d) Provision of infrastructure facilities in processing as well as in non processing area (Social Infrastructure) e) Liberal Economic policies and incentive packages f) Proper planning and management g) Administrative framework h) Flexible Labour laws i) Export performance and Total investments The issues have been identified based on the above factors and these issues were studied for the VSEZ
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Identified Issues for the study Based on the literature case studies the issues have been classified in to 7 major issues. Physical Issues: Location and Accessibility, Size of SEZ, Connectivity, Industry Focus and Infrastructure Facilities in processing Area Social Issues: Infrastructure facilities in non processing area(Social Infrastructure), employment, quality of life of workers, Labour laws and regulations Economical Issues: Export/Import Performance, industry growth and investment Environmental Issues: Environment Regulations, Provisions to protect environment(environmental Infrastructure) Spatial Issues: Socio-economic characteristics of the city, Growth of the city, Land use pattern Governmental Issues: Policy framework, Administrative set up and Fiscal Incentives Planning and Construction Issues: Planning of infrastructure facilities, Land use, Policy issues, Environmental considerations. . 3.1.A: Physical Issues Mode of Transportation for Import/Export Road and port are the two modes used maximum for import and export. Though the Gangavaram port is nearby the zone, the industries prefer Visakhapatnam port for import and export. Because of the lower draught, it cannot accommodate large vessels and Gangavaram port is not in full operation. Physical Infrastructure facilities There is a no scarcity of water supply. So the units have to purchase water from VSEZ and payment will be done as per the usage which is measured by the standard water meter. Garment and chemical industries are facing maximum price due to excess water supply. Existing drainage system is poor which needs to be upgraded. Non trade effluent waste is discharged through the drainage. There is no separate drainage for chemical industries. The satisfaction level of power and telecommunication is very high, for transportation it is high but utilities it is bad.
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Fig 2: Free trade warehouse zone
Fig 3: Standard Design Factory
3.1.B: Social issues Social Infrastructure facilities The Visakhapatnam SEZ lacks in providing social infrastructure. The housing colony is not provided either for the administration staff nor for the employees. There is no provision of other social infrastructure such as hospitals, schools, commercial facilities within the zone. The satisfaction level for social facilities is average. Employment Generation There is an increase in the employment after 2002 which is one of the successes of the VSEZ. Out of total, 40 to 45% is the female employment. Engineering units give maximum employment to skilled and semi skilled workers. These units also provide good training facilities for the workers. Primary Survey of Workers The workers are classified in three categories namely skilled, semi skilled and unskilled. The survey results show that semi skilled and unskilled workers are predominant in all types of industries. The maximum workers are of age more than 30. No child labour is engaged in any of the industries. Working conditions Mostly the workers are working hours are 6 to 10 hours a day. Unskilled and semi skilled workers are paid on daily basis as per working hours. One of the adverse problems that the workers are facing is frequent unavailability transportation. The wages are given as per the Minimum Wage Act. The working condition in SEZ is an indicator to assess social impact on the lives of workers. For maximum workers, the working conditions are average. Majority of the workers are satisfied with what they have in terms of salary as they are paid as per their work but there are no infrastructure facilities for them. 3.1.C: Environmental Issues There is no common effluent treatment plant in the zone. So all the units dispose of the waste and scrap in the dumping yard and then it is transported for further process. All the
P a g e | 25 units have approval of APPCB and the type of waste and pollutants that each industries produces are within APPCB limit. 3.1.D: Governmental Issues VSEZ administration offers an export friendly environment through simplified procedures to provide a single window clearance system Though there is a facility of single window clearance from the central and state level approvals, 55% of the industries are facing problems regarding single window clearance. There are long delays in decisions by the officials at the time of pre establishment services 3.1.E: Planning of Infrastructure facilities The infrastructure in the Visakhapatnam SEZ area has been provided keeping the various planning principles of sustainability, resource conservation and to provide state-of-the art infrastructure.
Fig 4: Aerial View of the VSEZ with Road connectivity Drainage: No proper drainage facilities are provided. Water: Abundant and good quality water is made available from a nearby reservoir. Besides, adequate alternate arrangements have also been made for supply of ground water. The charges are Rs.40/- per KL. Power: A dedicated 132/33 KV sub-station. The tariff for power is as per the rates prescribed by the A.P. Transco from time to time.. Telecommunication: The Department of Telecommunications will be requested to provide with a 200MB-bandwidth connection with connections using fiber-optic cables. Social infrastructure: This is provided to serve the population at different level, viz. at the City Level, Zonal level and the Layout Plan Level. In the present case, Social Infrastructure is to be provided to serve a population of 3,00,000 at City Level; for 1,00,000 population at the Zonal Plan Level and 15,000 population at the Layout Plan Level.
P a g e | 26 3.1.F: Impact Analysis of VSEZ VSEZ is responsible for three major success factors Employment Generation and employment for females, Revenue Generation for Government and earning foreign exchange. Land, labours and raw materials are easily available because of the Strategic location of VSEZ. It also has multimodal connectivity so there is convenient transportation of goods and services. The multiple industries have more investment. The administration is export friendly which have increased the opportunities of investment. The Zone doesnt provide adequate infrastructure facilities and it lacks in providing social infrastructure. Environment monitoring is also very poor which has lead to environment degradation in the surrounding region. Environmental regional planning is such that it unlikely pose any threat to the ecological sensitive area. There is protection of environment by provision of wind breaks, water recycling and STP, CETP and green shelters at required locations. Efficiencies of operations would be improved and there are chances of more investment because of sufficient supply of physical infrastructure facilities. The social infrastructure and townships would give better quality of life and living standards to the employees. The only negative impact that the VSEZ possesses is large size that needs acquisition of large piece of land. The land acquisition and land leveling process may change the hydrology pattern and drainage and may create pollution during process of land clearing. 3.1.G: Recommendations Impact at local level is more than at regional level. But this impact can be kept under control by improving in zone infrastructure, developing social amenities and providing proper environmental management systems. Certain guidelines should be prepared for collection and disposal of the waste. There is a foremost need to develop a secure landfill site in zone for disposal of scrap. There is no green belt in Visakhapatnam special economic zone as of now; 30 m will be kept for green belt on all sides of zone as per the guidelines. Development of SEZs needs to be integrated with existing Master Plans and Regional Plans. There is need to develop regional/sub regional plan around the SEZ areas. Here, State Town and Country Planning/Urban Development Authority should play a key role
P a g e | 27
3.2 A case study on Falta Special Economic Zone: (secondary source) FSEZ a regional special economic zonefor creative export processing opportunities. The SEZ at Falta was identified just south off the metropolitan boundary and planned to be a strategic trade Zone. The plan was activated by the joint collaboration of state level organizations like WBIIDC (West Bengal Industrial Infrastructure Development corporation) and an apex national body the ministry of commerce, Government of India. FSEZ had been conceived as a nodal point of circulative economic within the region planned in four sectors each having diversified production opportunities utilizing KMRs existing intellectual and natural capitals. With FSEZ trade opportunities are now linked to an emerging South Asian economy. The master plan of Falta SEZ has three main sectors of establishment of which sector I and II includes Standard design factories, production centers; Sector III includes facility centers, laborer housing etc and Sector IV includes housing for the expert groups and other.
Fig 5: Riverside view from falta SEZ
Fig 6: Standard design factory, Falta Sez
Falta EPZ has now become Falta Special Economic Zone and has come under the purview of the SEZ Act & Rules with effect from 10th February , 2006. Infrastructure Facility available in Falta SEZ. a) Gross area 280 acres(acquired 87 acres and transferred from CPT 193 acres). b) Location Panchayat area. c) Area Development 253acres (full infrastructural facilities) d) Area under development 27 acres. e) Built- up space SDF- 15570sq.m. (2 NOs) fully allotted.
P a g e | 28 f) Industrial shed 15350 sq.m. (7 nos) fully allotted. g) Internal road 11 kms. h) Under construction 5 kms. i) Capacity for water supply - About 1 million litres per day with drainage facilities. j) Electric Sub- station for dedicated power supply for all categories, supplemented by local sub - station. k) Electronic Weigh bridge.
Social And Economic Infrastructure a) Post office including courier services b) Telephone exchange c) Residential Accommodation d) Staff quarter 44 nos available for employees of the units. e) ESI medical dispensary f) Bank branches - 1 g) Fire station building h) Container handling jetty capacity 56 containers ( 20TEUs) per hour. i) Community Polytechnic for skill development and training.
P a g e | 29 3.3: UDPFI GUIDELINES FOR INFRASTRUCTURAL FACILITIES
Norms and standards
Distribution of land use
Infrastructure
Commercial facilities
Recreational facilities
Traffic and Transportatio n
a)
Developed area average densities b) Work force c) Proposed land use structure of urban centres in plain area d) Proposed land use structure in hill town
a) Informal activities b) Distribution of activities c) Hierarchy of commercial centres d) Area of commercial e) Distribution of shops centres
a)
Recreational facilities b) SocioCultural facilities
a)
Bus & truck terminals b) Classification of Urban roads c) Design standards of Urban roads roads d) Passenger car units e) Design service volume f) parking g)
Physical infrastructure a) Water Supply b) Water Requirements for institutional buildings c) Sewage d) Drainage e) Electricity f) Solid waste Disposal
Social infrastructure a) Educational facilities b) Health care facilities c) Socio- Cultural facilities d) Distribution services e) Police f) Fire
P a g e | 30
DISTRIBUTION OF LAND USE:Settlement type Persons per Hectare(pph) in ` Plain areas Small town Medium Town Large Town Metro cities
Tab: 1
Hill areas 45-75 60-90 60-90 -
75-125 100-150 100-150 125-175
Work Force and Proposed Land use structure of Urban Centres in Plain areas Work force participation 33% of total population
Industrial workers (%) of total work force Small and medium town Large cities
Tab :2
20 25
Land use category
Percentage of developed area Small Medium 40-45 3-4 8-108-10 10-12 18-20 12-14 balance Large cities 35-40 4-5 10-12 12-14 18-20 12-14 balance Metro cities 35-40 4-5 12-14 14-16 20-25 15-18 balance
Residential Commercial Industrial Pub& Semi-Public Recreational Transport & Communication Agriculture & Water bodies Tab: 3
45-50 2-3 8-10 6-8 12-14 10-12 balance
P a g e | 31 INFRASTRUCTURE : Infrastructure is the basic requirement of urban life. The extent and the nature of problems faced by different towns vary by size, geographical conditions, local natural resources, etc.
Physical Infrastructure:-Size of town Aspect Domestic 1. Absolute Min. 2. Desirable Non- Domestic Fire fighting Public purpose Small 70 lpcd 100 lpcd 1% of total demand 10-15 lpcd Medium 70-100 lpcd 135-150 lpcd 20-25 lpcd Large and Metro 135 lpcd 135-150 lpcd 30-35 lpcd
Tab:4: Water requirements for institutional buildings Institutions Litres per head per day Hospital a. No. of beds exceeding 100 b. No. of beds not exceeding 100 Hotels Hostels Nurses homes & medical quarters Boarding schools/ colleges Restaurants Airports & Sea ports Junctions stations & intermediate stations Terminal Stations & Intermediate stations Day schools/ colleges Offices & factories 450 per bed 340 per bed 180 per bed 135 135 135 70 per seat 70 70 45 45 45
P a g e | 32 Cinema, concert halls and theatres Tab :5: SEWERAGE: a) The treatment of sewerage is essential to check the decay in the environment as well as to provide hygienic conditions for the population b) The sewerage is estimated at the rate of 80% of the water supply in any area. c) The newly developed areas shall be considered for the provision of community level septic tanks based on economic & environmental considerations. d) The squatter settlements may be provided with a facility of 1 toilet for 4 to 5 families based on the concept of low cost and low water consumption DRAINAGE: a) The drainage system for any city/town is governed mainly by natural course and topography. b) The discharge is calculated that guides the requirements for provision of additional drain as well as upgradation of existing drains. ELECTRICITY: a) According to Master plan of Delhi power supply consumption works out to be about 2 KW per household at the city level and includes domestic, commercial , industrial and other requirements. b) The provision of 1 electric sub station of 11 KV for a population of 15,000 is recommended for towns/ cities. SOLID WASTE DISPOSAL: a) The insufficient conservancy services in most of the urban centers tend to leave the garbage spread on the road sides or open spaces leading to unhygienic conditions. The garbage is removed by the municipal bodies and dumped at the sanitary landfill or in some cases it is converted to compost esp. in small towns. The generation of waste varies from about over a quarter of Kg in small towns to about half a kg per capita in large and metro cities 15
b)
c)
P a g e | 33
Educational facilities:- ( Area ) Pre-primary to Secondary Education: Higher education Technical education 1.6 ha 4 ha 10ha
Health Care Facilities: General hospital (Hospital for 2.5 lakh population capacity) Area for hospital Area for residential accommodation Total area Socio-Cultural facilities: a) Community room 1 for 5,000 population area b) Community hall and library 1 for 15,000 population area c) Recreational club 1 for 1 lakh population area d) music, dance and drama centre 1 for 1 lakh population area e) Meditation and spiritual centre 1 for lakh population area f) socio-cultural centre 1 for 10 lakh population area Tab:6 Police: Police station 1 for 90,000 population 1.5 ha 660 Sq..m 2000 sq.m 500 BEDS
4 ha 2ha 6ha
10,000 sq.m 1,000 sq.m 5000 sq.m 15 ha
Area inclusive of essential residential accommodation 0.05 ha additional to be provided for civil Defence and home guards
P a g e | 34 Fire: 1. 1 fire station or sub fire station within 1 for 3 km to be provided for 2 lakh population
2. 1 ha
Area for fire station with essential residential accommodation
0.60 ha
Tab: 7: Commercial Activity: Hierarchy of an urban centres is a function of the hierarchy of planning units in an urban centre
Planning unit Cluster Sector Population Served Hierarchy of commercial centre
1000-4000 5000-20000
Cluster centre Sector centre Community centre District centre Sub- city centre City centre
Community 25000-100000 District Sub-city City 125000-500000 25 lakh- 50 lakh 50 lakh +
Tab:8:
Area /1000 persons sq.m. Cluster centre Sector centre Community centre District centre 220 300 500 880 No. Of shops 1 for 110 persons 1 for 200 persons 1 for 200 persons 1 for 300 persons
Tab:9:
P a g e | 35 Norms for informal activities: Retail trade Central Business District Sub- central Business District District centre Community centre Convenience shopping centre Government and commercial offices Wholesale trade and freight complexes Hospital Bus terminal Schools Primary Secondary/senior Secondary/integrated Residential Industrial Tab:10: Recreational Facilities Planning unit Housing cluster Sector community District Sub city centre Overall town/ city level Tab:11: Area in Sq.m per person 3-4 local parks and playgrounds 3-4 local park and playgrounds 2-3 community level park and open space 1 district level park and sports centre, maidan 1 city level park, sports complex, botanical /zoological garden , maidan 10 sq.m- 12 sq.m per person No. of informal commercial units 3 to 4 units per 10 formal shops as specified in the norms separately
5 to 6 units per 1000 employees 3-4 units per 10 formal shops 3-4 units per 100 beds 1 unit per two bus bays 3-4 units 5-6 units
1 unit/1000 population 5-6 units per 1000 employees
P a g e | 36 Socio- cultural facilities Community hall : House cluster level The small parks /open spaces should also be developed with the community hall to suit the cultural and behavioral needs of the society Local Sector level community centre Recreation One for 15000 population 2,000 sq.m club One for 50,000 population 0.5 ha One for 100000 population 1 ha Music, dance, One for 50,000 population drama centre Meditation One for 50000 population and spiritual centre Socio-cultural One for 5 lakh population centre Tab:12: Miscellaneous Facilities Dhobi ghat:one site for 1 lakh population with appropriate arrangements for water and drainage facilities. Taxi stands/ bus stops/ Rickshaw stands: The taxi stands/bus stops shall be provided with the following considerations: These should not be located near the road intersections The maximum distance of such facilities should not exceed 0.5 km from the farthest point in any residential area. Telecommunication: Communication- 10 lines per 100
population. Fire- one fire station for 2 lakh population within 1 to 3 km distance. Postal services- one post office for 10-15 thousand population.
P a g e | 37 Parking: The minimum parking space requirements for each car and truck is : Car : 3m X 6m ( when individual parking space is required) 2.5m X 5m ( when community parking space is required) Truck : 3.75 m X 7.5m Residential 1. Detached, semi-detached and row houses 2. Plot area upto 100 Sq.m no private or community parking space 3. Plot area:101-200 sq.m only community parking space 4. Plot area:301-500 sq.m- minimum 1/3 of open area for parking 5. Plot area :501-1000 sq.m- minimum 1/4th of open area for parking 6. Plot area: 1001sq.m +- minimum 1/6of space area for parking Tab:13: Flats :- one space for every two flats of 50-90 q.m or more of floor area one space for every flat of 100 sq.m or more of floor area For all kinds of developments excepting residential, warehouses and Godown. One berth for initial 500-1500 sq.m of floor area. Additional berths at the rate of one for every subsequent 1000 sq.m or part thereof.
1. For warehouses and Godowns 2. Two berths for initial 500-1500m of floor area. Additional berths at the rate of one for every subsequent 500m or part of.
P a g e | 38 Break up area for Frieght Movements: Use Transport operators Broad land use break up in truck terminal:- office, godown, loading/unloading Percentage area 30
Service industry - petrol pump, service area, weigh bridge, etc Public/semi-public - Police post, post office, telephone, first aid etc. Commercial Parking- idle, transits, other vehicles Open spaces Circulation Others Tab:14:
6 3 3 10 10 28 2
P a g e | 39
CHAPTER 4:
DATA FRAMEWORK AND DATA ANALYSIS
4.1: Data Collection: This project is based upon both the primary data and secondary data. The primary data was collected through the personal interviews of officials and experts, the Exports and Imports of the manufacturing industries in India as well as Andhra Pradesh. For this purpose a general socio economic and expert opinion survey was done and the result of the opinion and data collected helped in doing the analysis. The secondary data has been collected from research paper and through the various organization websites. The primary data includes the case study of Falta SEZ, and employment data of various industries. 4.1.1 Primary data. To better understand the economic condition and present manufacturing industries in Andhra Pradesh regarding the Special Economic Zone expert opiion survey was conducted to get the view of the experts over the need of SEZ. Objective of the primary survey is to gather information about; Existing economic condition of the zones Requirements of the Infrastructure facilities for the Special Economic Zone Probable advantage or disadvantages of the project 4.2 Tools and techniques required for analysis OBJECTIVE 1: To identify the leading and lagging Industries in the state of Andhra Pradesh Shift and Share Analysis is the tool used to find out the leading and lagging manufacturing industries, for this the main primary data required is the Exports and Import of the different manufacturing industries within India and Andhra Pradesh way back from the period of 2005-2010. OBJECTIVE 2: To analyze the optimum area required for the Zones or Industries selected. Regression Analysis and Linear Programming model is used to calculate the Optimum area of the zones and also the tota number of Population or employee can be calculated with the weighted average method of each industries employees with optimum area.
P a g e | 40
Date Analysis
Share and Share Analysis Technique: This is the technique used to find out the Leading and Lagging Industries at any place by location quotient technique. Using result of the Regional shift (RS), the higher the value of RS, will be the leading industry, and lower the value will be the Lagging Industry. The procedure to calculate the value is give by the following steps. SS = NS + IM + RS SS= shift share NS= National Share IM=Industrial Mix RS= Regional Shift The equations for each components are :
NS = S(t-1) * ( oNt / oN (t-1) ) IM = [S(t-1) * ( iNt / iN(t-1) ] NS RS = S(t-1) * [ (S(t)/ S(t-1) - (iNt / iN(t-1))]
What do the subscripts, superscripts and the alphabets indicates? S(t-1) = total exports of an industry (i) at the beginning of the analysis period (t-1). S(t) = total exports of an industry (i) at the end of the analysis period (t). (t-1) = total exports of the Nation at the beginning of the analysis period (t-1). oN t oN = total exports of the Nation at the end of the analysis period (t). t iN = total exports of the Nationwide in an industry, at the beginning of the analysis period (t-1) (t-1) = total exports of the Nationwide in an industry, at the end of the analysis period (t) iN
Tab: 15: Data of the Exports of the various Industries (2005-2010)

P a g e | 41
The data indicates thatover a five year period2442.96 textile manufacturing exports were created in the state; 418.104crs exports were created in the states Transport equipments manufacturing industry; overall, 47999.8413crs manufacturing exports were created in the state. How much of this growth may be attributed to the unique Andhra Pradesh business climate? In other words, since an industrys local performance is affected by fluctuations in the national business cycle and by its national performance, external forces need to be subtracted. Thus, to identify the local economys leading and lagging industries, we apply the shift and share calculations previously described.
Tab:16: Results of Regional Shift Interpreting the Data Analysis In 2005, nearly 401.277 billion were exported in the states manufacturing industries. Five years later, 881.27 billion were exported in the industry. How much of that increase may be attributed to the national economy? 881.27 Actual = 563.58 + 188.57 + 129.11 NS IM RS
National Share (NS): Had the states manufacturing industry grown at the same rate as the national average, there would have been 31,788.61crs less exports in 2010. So, what explains the gain of 16211.2245crs jobs in the states share of national employment? Was there something unique about the industry itself? Industry Mix (IM): There is usually a difference between a particular industrys growth rate and the national average. The exports data show that, nationally, manufacturing exports increased with overall exports increased. Had Andhra pradesh manufacturing
P a g e | 42 grown at the same rate as the national manufacturing industry, the state would have complex. Since it did not, it is fair to say that Andhra Pradesh provided a better environment for manufacturing between 2005 and 2010. Regional Shift (RS): The difference between the national share and industry mix is the regional shift. The regional shift indicates that local conditions were responsible for the states competitive position in manufacturing. The RS column in the data analysis table shows. Top 5 Leading Manufacturing Industries (2005-2010) Information Technology / BPO services Gems and Jewellery industries Textile industries Pharmaceuticals Food Processing Top 4 Lagging Manufacturing Industries (2005 - 2010) Transport equipments Leather Industry Chemical industry and Electronic goods manufacturing industry
The results clearly indicate that the Andhra Pradesh manufacturing industry outperformed its national counterpart during the expansionary period, 2005-2010. Based on the identification of leading and lagging industries, this analysis suggests that manufacturing export effortsat least in good economic times should be directed at bringing more Information technology/BPO service companies and Textile companies to the state.
P a g e | 43
REGRESSION ANALYSIS FOR THE SELECTED SECTOR: Regression analysis for the sector selected is done with the present data which includes employments, number of units in the SEZ, total area of the SEZ. Final estimated optimal area for IT & ITES are calculated as below with the Regression analysis Regression models involve the following variables:

The unknown parameters denoted as ; this may be a scalar or a vector. The independent variables, X & Z. ( Employment and No of Units). The dependent variable, Y. (Area required)
A regression model relates Y to a function of X, Z and .
Formulating the data in the Excel sheet in the following manner as shown in the figure below for each sector selected from Shift and Share Analysis
Tab:17: Excel Sheet explains the procedure for calculating the Equation for IT&ITES.
P a g e | 44
Tab:18: Excel Sheet explains the procedure for calculating the Equation for Pharmaceuticals.
Tab:19: Excel Sheet explains the procedure for calculating the Equation for Textile Industries Final output from the Regression analysis is the three equations which will be help full in solving the Optimal area problem using the Linear Programming Model.
Tab:20: Regression equations for selected sectors
P a g e | 45
Final optimal area of the proposed Hyderabad special economic zone:
Tab:21: Optimized area and employment details of each Sector
P a g e | 46
CHAPTER 6: PROPOSED SITE LOCATION FOR HYDERABAD SPECIAL ECONOMIC ZONE

6.1 SITE LOCATION: GENERAL The main objective of the site location process is to provide the best possible site for the proposed Special Economic Zone Hyderabad which would serve the purpose of developing the area to boost economic growth, provide strong forward and backward linkages and facilitate development of other projects in the area. SITE SELECTION CRITERIA Multi criteria approach is used for selecting the site based on venous factors influencing the site, the criteria identified for the selection of the site are listed below. 1. Compatibility with the Draft Master Plan 2021 and other proposal with respect to road network, rail network. 2. Availability of acquired land of minimum area of 1000 Ha. (Approximately). 3. Suitable site terrain and topography. 4. Rail connectivity. 5. Road connectivity Location on the Sri Sailam Expressway. 6. Proximity to proposed International Airport. 7. Area should be devoid of places of archaeological and historical importance. 8. Area should be devoid of Inversion effect (presence of hillocks, which prevent dispersion of wind). 9. Area should be devoid of rare and endangered species. 10. Site slope and drainage pattern. 11. Availability of skilled manpower. 12. Availability of social infrastructure. 13. Area devoid of floods.
P a g e | 47 14. Availability of public utilities like water supply, sewerage, drainage and power supply etc DESCRIPTION OF THE SITE: The total area identified is approximately 1000 Hectares. This proposed site is identified and exact location of the site is shown in the fig. The area is selected along the Sri Sailam Highway, National Highway - 9 due to easy accessibility from Hyderabad. The area is sparsely populated. Few village settlements are spread over the area at every 2 - 3 kms distances from each other. The present land use of the area is agricultural(45%). The water level in the area is about 5- 10 m below ground level. The site is part of the integrated industrial town of Hyderabad and the site is nearest major settlement to the proposed site is, Greater Hyderabad town. The wind direction prevailing in the area is towards southeast. The skilled manpower requirement can be met by the large number of institutions already existing in Hyderabad, Greater Hyderabad and in the Andhra Pradesh Region.
CONCEPT DEVELOPMENT FOR THE MASTER PLAN I. High speed road connectivity to the proposed airport site through the Srisailam Highway, National Highway -9. Good proposed Rail link from Hyderabad, Vijayawada and Visakhapatnam. Development of special economic zone as a contiguous development along the Expressway corridor. Fast access to the major tourist destinations in and around Greater Hyderabad city and other southern destinations. Development of inland container terminal to fulfill the transport requirements by all modes. Thus the concept of multi-modality. Development of truck terminal facility to facilitate road freight transport. Development of residential area for the employees of SEZ. Availability of land for future expansion. Development of concept within the SEZ Hyderabad to exploit the potential of the region to act as transit point for international and national traffic and provide multi modal connectivity to the sector establishing in the HSEZ.
II. III. IV. V.
VI.
VII. VIII. IX. X.
P a g e | 48
PROJECT AREA PROFILE-SPECIAL ECONOMIC ZONE

Project location
Hyderabad Special Economic Zone is proposed to be located in district RangaReddy of AP within the planned township of Hyderabad Airport Development Authority(HADA) as shown in fig. It is situated near Outer Ring of greater Hyderabad which is the most developed part of AP. The size of the zone has presently been set at 1000 ha.
Resources
The region is endowed with adequate water resources . The main source of surface water in the region is rivers, canals and lakes. The bulk requirement of water in the region is met by rivers Krishna and Godavari . The quality of water is considered very well. As regards the ground water resources 85% of the annual precipitation occurs during monsoon months. The general water table ranges between 6 to 15 meters below the ground level. Due to the mounting pressure of population and extensive cultivation, very little has been left of the natural vegetation . The area has dry deciduous trees. Infrastructure Facilities The region is well endowed in all social infrastructures like Education, Medical, Water supply, Post and Telegraph, Communication and Road connectivity etc. The region receives power from the integrated grid of APCPDCIL.
P a g e | 49 Fig: Proposed Site Location for Hyderabad Special Economic Zone 6.2 Concept of Special Economic Zone design Design concept 1:
Strengths: 1: Distribution is prefect in both zones 2: Allocation of Units in Processing and zones like commercial, recreational and residential zones in Non Processing zones are easy 3: Trading can be done easily in Processing zones. 4: Non Processing zone is almost free from pollution. 5: Can be able to shift the line towards the Non Processing area if there is huge demand of Units coming in SEZ. Weakness: 1: Rate of trading decrease in peak timing due to congestion in Processing zone. 2: Worker have to travel from one zone to other (Extremes). Design concept 2:
Strengths: 1: Distribution of workers is easy. 2: Land usage for commercial, recreational and residential is separate. 3: Separate zone helps for environmental issues. 4: Industrial sectors wise allocation can be done.
P a g e | 50 Weakness: 1: Cost increase for complete development of 2 zones ( Processing and Non- Processing). 2: Increases traffic problems at junctions. Design concept 3:
Strengths: 1: Distribution of workers is easy. 2: Land usage for commercial, recreational and residential is separate. 3: Separate zone helps for environmental issues. 4: Travel time for workers becomes less. Weakness: 1: Cost increase for complete development of 2 zones ( Processing and Non- Processing). 2: Increases traffic problems while trips are generating from Non processing zone 1 to Non processing zone 2. 3: As advantageous to the industrial allocations but not to non processing zone. Design concept 4:
Strengths: 1: Distribution is prefect in both zones 2: Allocation of Units in Processing and zones like commercial, recreational and residential zones in Non Processing zones are easy 3: Trading can be done easily in Processing zones. 4: Travel time in the processing and non processing area decreases. 5: Fully security available.
P a g e | 51 Weakness: 1: Rate of trading decrease in peak timing due to congestion in Processing zone. Design concept 5:
Strengths: 1: Distribution of workers is easy. 2: Land usage for commercial, recreational and residential is separate. 3: Separate zone helps for environmental issues. Weakness: 1: Cost increases for complete development of 2 zones (Processing and Non- Processing). 2: Increases traffic problems while trips are generating from Non processing zone 1 to Non processing zone 2. 3: Rate of trading decrease in peak timing due to congestion in Processing zone 4: Residents will have a problem of travelling long distance from one NPA -1to other NPA- 2 (extreme ends) and they have to cross the industrial areas. Design concept 6:
Strengths: 1: Allocation of Units in Processing and zones like commercial, recreational and residential zones in Non Processing zones are easy 2: Trading can be done easily in Processing zones. 3: Non Processing zone is almost free from pollution. 4: Travel time in the processing and non processing area slightly decreased. Weakness: 1: Rate of trading decrease in peak timing due to congestion in Processing zone. 2: Residents will have a problem of travelling long distance from one NPA -1to other NPA- 2 (extreme ends) and they have to cross the industrial areas.
P a g e | 52
6.3
Selections of Design and Factor involving in the Internal design

1. Optimal Design - 1 is selected from all the above designs due to the flexibility of shifting the line of Non- Processing zone and Processing Zone and since its distribution is perfect in term of Road connectivity from the existing point of view of the proposed location. 2. Depending upon the sound or noise, pollution, accessibility of resources like raw material availability and man power and the logistics level creating by the manufacturing sector selected like Textile, Pharmaceuticals, IT&ITEs, Gems and jewellery, Food processing industries and the non processing zones also.
6.4
Calculation of all the Infrastructural facilities by UDPFI guidelines From the UDPFI Guidelines mentioned above we can calculate the Infrastructural facilities like water, power, drainage, sewerage, Telecommunications, Width of the road, ecological parameters, percentage area per zone or per activity is done through UDPFI guideline. For example: Water requirement is given below
Type Population Requirement water per person ( in Litre) 100 70 45 45 45 15 (8-14) max in KL 8000 125 125 Total (in KL)
Hospital Restaurants Day schools Colleges Offices Cinema halls Industrial Units Warehouse Residential Other
450 350 1000 500 9215 1500 15 max 2 units 27924 9215(33%)
45 24.5 45 22.5 415 22.5 210 160 3490.5 1151.8
Total
5586.8 KL
P a g e | 53 In similar way, calculated area of each zone and road width, percentage of zone including ecology and many other infrastructural facilities are carry out and resulted in the sheet shown above as per the UDPFI guidelines. 6.4: A broad outline or layout of the proposed Master plan of Hyderabad SEZ
P a g e | 54
P a g e | 55 Recommendations: The other units other then prescribed are allowed into the other zone mentioned in the master plan at the maximum number of 5 with small scale based, due to the infrastructural miss match in term of facilities. Other service road can be build up like cargo road toward the Airport for the free transfer movement of the loads. Real estates can be developed around the site for the better attraction of the Hyderabad Special economic zone. Horticulture can be allowed in the Ecology zone for pure vegetation and cultivation for the beneficial of the residents in the HSEZ. Green belt build across the zones are preserved and have to be taken care by the Administration.
P a g e | 56
References:
i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. xii. xiii. xiv. xv. xvi. NOIDA sez master plan VSEZ.gov.in http://fsez.nic.in/ http://sezindia.nic.in/index.asp UDPFI guidelines Concept of planning infrastructure facilities http://infrastructure.gov.in/pdf/doi.pdf Economics of development and planning By K.R. Gupta http://www.rahejasez.com/pdf/sez-gurgoan-brochure.pdf Shift and share: its theory and applications by Richard Arnold Bell http://www.law.uchicago.edu/files/files/20.Sykes_.Regression.pdf Optimal portfolios using Linear Programming models - Christos Papahristodoulo http://www.apiic.in/ http://www.mangaloresez.com/r&r.html http://labourbureau.nic.in/ http://fsez.nic.in/home.html
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ANALYSIS OF INFRASTRUCTURAL ECONOMIC PLANNING FOR SPECIAL ECONOMIC ZONES

Master of Technology in Infrastructure Design and Management

Nishanth Vadduri (09ID6016)

Prof. Dr. Uttam Kumar Banerjee Prof.Dr. Joy Sen

SCHOOL OF INFRASTRUCTURE DESIGN AND MANAGEMENT INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

Signature of the Student

Signature of the Student (Nishanth Vadduri)

LIST OF SYMBOLS (OPTIONAL) List of figures :

Chapter 2: 2.1 2.2 2.3 2.4 2.5 2.6

Chapter 4: 4.1 4.2 4.3 4.4

Data Framework and Data Analysis

Chapter 5: 5.1 5.2 5.3 5.4 5.5 5.6

Proposal and Recommendation

Special Economic Zone in Hyderabad

Aims, goals and Objectives Literature Review

Data Collection Primary Data :

Secondary data : Map and reports, Research papers Employment data

Requirement of Infrastructural aspects for the Special Economic Zone

UDPFI Guideline for Infrastructural Requirements

Concept of Special Economic Zone Design

Planning of Processing Area and Non Processing areas

Preparation of Master Plan of Hyderabad Special Economic Zone

2.1: Background of SEZ in India.

2.2: Concept of Special Economic Zone

2. 3: Procedure for Setting up the SEZ in India

By Applying to State Govt

By applying to Board of Approval

Central Govt may suo-motto set up and notify SEZ

State Govt forward the Proposal to Board of Approval

Obtain the concurrence of State Govt

After consulting the State Government and identifying the area

By Applying to State Govt

Developer shall furnish to Central Govt information

Central Govt will notify the area as Special Economic Zone

2.4: Concept of Shift and Share Analysis

CHAPTER 3: CASE STUDIES AND UDPFI GUIDELINES

Fig 2: Free trade warehouse zone

Fig 3: Standard Design Factory

Fig 5: Riverside view from falta SEZ

Fig 6: Standard design factory, Falta Sez

P a g e | 29 3.3: UDPFI GUIDELINES FOR INFRASTRUCTURAL FACILITIES

Norms and standards

Distribution of land use

Traffic and Transportatio n

Recreational facilities b) SocioCultural facilities

Hill areas 45-75 60-90 60-90 -

75-125 100-150 100-150 125-175

Land use category

45-50 2-3 8-10 6-8 12-14 10-12 balance

10,000 sq.m 1,000 sq.m 5000 sq.m 15 ha

Area for fire station with essential residential accommodation

Community 25000-100000 District Sub-city City 125000-500000 25 lakh- 50 lakh 50 lakh +

1 unit/1000 population 5-6 units per 1000 employees

DATA FRAMEWORK AND DATA ANALYSIS

Tab: 15: Data of the Exports of the various Industries (2005-2010)

A regression model relates Y to a function of X, Z and .

Tab:20: Regression equations for selected sectors

Final optimal area of the proposed Hyderabad special economic zone:

Tab:21: Optimized area and employment details of each Sector

CHAPTER 6: PROPOSED SITE LOCATION FOR HYDERABAD SPECIAL ECONOMIC ZONE

II. III. IV. V.