Energy Efficient and Resource Efficient Sustainable (“Green”) Industrial Parks in the State of Andhra Pradesh and Telangana, India

Project Background

Under the Indo-German Financial Cooperation, the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is exploring the possibility of implementing a promotional programme for Energy Efficient and Resource Efficient Sustainable (Green) Industrial Parks (GIPs) in Andhra Pradesh and Telangana.
With the increasing concerns on environmental aspects and resource efficiency, it is becoming necessary and essential to explore appropriate technical measures and to adopt them in the existing IPs to enhance environmental, economic and social performance of the IPs. Also, a need is felt by the government to plan and develop all new IPs with green infrastructure components.
Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has developed over 300 industrial parks (IPs) spread across the former state of Andhra Pradesh (now divided into two separate states). With the bifurcation of erstwhile Andhra Pradesh, the Telangana State Industrial Infrastructure Corporation (TSIIC) Ltd has been created to develop IPs in Telangana, while in the new Andhra Pradesh, the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) Ltd operates under its former name. Telangana currently has about 150 IPs while rest of the IPs fall in the state of Andhra Pradesh.
The APIIC and Telangana State Industrial Infrastructure Corporation (TSIIC) have received a soft loan from KfW Development Bank of up to EUR 40 million for financing such investments in two states, Andhra Pradesh and Telangana, over a maximum of four years. Around 25% of the amount over and above the KfW loan will be co-financed by Telangana State Industrial Infrastructure Corporation Ltd. (TSIIC).

Type and scope of services

Together with CRISIL Infrastructure Advisory, Arepo is undertaking a prefeasibility (Phase 1) and detailed feasibility study (Phase 2) for a potential promotional programme to transform the shortlisted IPs in Andhra Pradesh into GIPs.

The Pre-Feasibility study involves

  • Undertake a sectoral and legal review
  • Undertake a thorough environmental and social analysis
  • Carry out an overall partner institution analysis
  • Propose business models for implementing GIP concept

The Feasibility study involves

  • Assess the overall investment potential in the state
  • Design the implementation concept for the programme
  • Undertake an in-depth target group analysis
  • Carry out risk and impact analysis of the programme
  • Propose mitigation measures