ECONOMIC INFRASTRUCTURE

The major areas covered in this chapter are Irrigation, Power, Banking, Transport, and Communications.

IRRIGATION

The role of Irrigation in increasing agricultural production has been well recognised. The state of economy of Andhra Pradesh is largely dependent on agriculture. The State is rightly called ‘A RIVER STATE,' as it is blessed with the major river systems like the Godavari, Krishna and Pennar and 37 others. Thus the state is blessed with a vast scope of developing irrigation potential, Andhra Pradesh has a mean annual rainfall of 858 mms and about 670 mms or 78 percent of the total rainfall is contributed by South-West monsoon and the balance by North-East monsoon. The variation in rainfall within the State is however very considerable. While Srikakulam and Vizianagaram districts receive a maximum rainfall of 1250 mms., Anantapur district in Rayalaseema receives only 544 mms in a year which is slightly higher than the lowest rainfall in Thar desert in Rajasthan.

The total geographical area of Andhra Pradesh is 274.40 lakh hectares and a population of 66.5 million as per 1991 Population Census. The net irrigated in the State is 45.39 lakh hectares in 1998-99 representing 40.98 percent of 110.74 lakh hectares of net area sown (1998-99). The total surface water of entire river systems of the State is estimated to be of the order of 2746 TMC (Thousand Million Cubic feet) at 75 percent dependability. This breakup into 1480 TMC from the Godavari river system, 811 TMC from the Krishna , 98 TMC from the Pennar and the rest from other smaller rivers. A utilisation of 720 TMC of the Godavari water has so far been achieved. The entire dependable water of river Krishna is almost fully harnessed through the construction of several reservoirs and barrages.

The total cultivable land in the State is 167.139 lakh hectares (413 lakh acres) out of which only 118.17 lakh hectares (292 lakh acres) is being cultivated at present. From this, area irrigated under various sources of irrigation is only 50.15 lakh ha. (124 lakh acres) which includes 6.03 lakh ha. irrigated under Panchayat Raj Department irrigation tanks and balance is rainfed. The ultimate irrigation potential of the State is 87.82 lakh hectares (217 lakh acres).

The progress recorded in area sown and area irrigated during the period 1956-57 to 1998-99 is presented in the following table:

Table – 6.1
AREA SOWN AND IRRIGATED IN ANDHRA PRADESH.
(Lakh Hectares)

Source: Directorate of Economics and Statistics, Government of Andhra Pradesh, Hyderabad .

The net area irrigated under different sources of irrigation in the state since 1955-56 to 1998-99 is shown in Annexure – XXXIX.

n view of the importance of irrigation towards increasing agricultural productivity a high priority has been accorded to irrigation sector in all the plans of the State as can be seen from the following table.

Table – 6.2
AMOUNT SPENT ON MAJOR, MEDIUM AND MINOR IRRIGATION
SCHEMES – PLAN-WISE IN ANDHRA PRADESH

Source: Finance & Planning (Plg. Wing) dept. Andhra Pradesh Secretariat, Hyderabad .

Creation of irrigation infrastructure and its optimum utilisation continues to receive a high priority in Government Planning. Due to shorter gestation period and relatively lower investment levels, preference is given for undertaking and completion of minor irrigation schemes covering both surface and ground water. The progress of development of irrigation potential and its utilisation is listed in the following table

Source: Chief Engineer, Major, Medium & Minor Irrigation Department, Government of

Andhra Pradesh, Hyderabad .

WATER USERS' ASSOCIATIONS :

Government have invested substantial public resources for the construction of a large number of irrigation schemes, the people have not derived full benefits there under because of inadequate maintenance and management and also due to deficient water regulation. Government have therefore taken the bold decision to hand over the management and maintenance of all the irrigation schemes to farmers' organisations. For this purpose, the A.P. Farmers' Management of Irrigation Systems Act 1997 has been enacted. In June 1997, elections were conducted to the Water Users' Associations for all major, medium and minor irrigation schemes. In November, 1997, elections to the Distributary Committees were also completed. In the near future, Project Level Committees will also be constituted to effect total transfer of management to the farmers' organisation. Government of Andhra Pradesh have formulated the A.P. Economic Restructuring Project (Irrigation Component) with a view to improving the performance of irrigation systems in the state through the involvement of farmers' organisations, viz., Water Users' Associations, Distributary Committees and Project Committees.

As per the present policy of the Government of Andhra Pradesh on Participatory Irrigation Management, it is proposed to entrust the works of Operation and Maintenance ( O & M ) of all irrigation systems to the Water Users' Associations.

The details of Water Users Associations formed in the State, sector wise are indicated in the following table.

Table – 6.4
WATER USER'S ASSOCIATIONS IN ANDHRA PRADESH
(In Numbers)

Source: Irrigation and Command Area Development, Government of Andhra Pradesh, Hyderabad.

The following table shows the sources of funding.

Table – 6.5
SOURCES OF FUNDING

Source: Irrigation and Command Area Development, Government of Andhra Pradesh,Hyderabad.

WATER USERS ASSOCIATIONS IN ANDHRA PRADESH

GODAVARI WATER UTILISATION AUTHORITY

I.Major Projects:

The Government have substantially stepped up the financial outlays and have incurred an expenditure of Rs.2300 Crores in the execution of works of the major and medium irrigation schemes in the State during the three year period of 1995-96 to 1998. Under Andhra Pradesh Economic Restructuring Project (APPEAR) works to a value of Rs.206.96 crores were sanctioned for taking of maintenance works, of all irrigation projects in Water Users Associations during 1999-2000. So far an amount of Rs.168.48 crores is spent.

STATE WATER POLICY

Andhra Pradesh has formulated a new water policy with the following features Water is a prime natural resource, a basic human need and a precious national asset. Planning and development of water resources need to be governed by national perspectives.

Another important aspect is water quality, which should not be neglected while development envisaged.

As the country prepares itself to enter the 21st Century, efforts to develop, conserve, utilise and manage this important resources have to be guided by national perspectives. The need for a state water policy is thus abundantly clear keeping in view the needs of the state.

POWER

The erstwhile APSEB which was formed in 1959 has been restructured into two functionally distinct corporations APGENCO & APTRANSCO with effect from May, 1999. In these 40 years, the installed capacity has been increased from 213 MW to 7363 MW, the consumers served have grown up from a 2.7 lakhs to 109.68 lakhs, the energy handled per annum from 686 MU to over 40574.26 MU. The annual revenues have increased from mere Rs. 6.6 crore to Rs. 4932.18 crores.

The development of the APSEB over the last 40 years can be summarised in the following Table:

Table – 6.6
POWER DEVELOPMENT IN ANDHRA PRADESH
(UPTO DECEMBER, 1999)

Source: Power Development in Andhra Pradesh - 1998-99, APSEB , Hyderabad

Apart from the phenomenal progress cited above APSEB stood first among all other SEBs in capacity additions, highest in operating efficiency of thermal power stations, largest network expansion, first to introduce Energy Audit and front runner in embracing State of the art technologies in every sphere. Apart from this the APSEB has certain deficiencies like gradual fall in Hydro-Thermal mix, increase of consumption in highly subsidised sectors with dip in consumption in highly paying categories, huge interest burden, borrowing towards un-remunerative investments high technical and commercial losses and non revision of tariffs in time.

The situation has resulted in all financing institutions backing out and entire development projects including ongoing KTPS Stage-V have come to a stand still in 1997. As a result of this APSEB has been reorganised into two Corporations under the Companies Act. They are APTRANSCO and APGENCO . APGENCO is able to attract additional resources. It is a fully owned Government Company and is having control over the existing Power Plants (both Thermal and Hydel) of APSEB. After Power Reforms process is taken up the national and international funding agencies have come up in a big way and could complete 2X250 MW KTPS-V Stage stepped up progress on works at Srisailam LBPH. International Agencies are now interested in taking part in RTPP Stage-II and VTPS Stage-IV etc.

The reforms in the Power Sector which are widely accepted by the public are also being adopted by other States such as Assam, Bihar, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Orissa, Punjab, Rajasthan, Tamilnadu, Uttar Pradesh and West Bengal. The APSERC has come into place and along with the World Bank, National & International financing agencies PFC, REC, DFID, CIDA, OECF, KFW etc. are aiding the State Restructuring Programme.

APTRANSCO is committed to the following initiatives:

CURRENT SCENARIO

The present installed capacity in the State i.e. in 1999-2000 (upto December, 1999) (including Central Sector) was 7363 MW. The power generation during 1999-2000 was 22175.72 MU. Actually the gross generation of power in this State increased from 26264 MU in 1997-98 to 27023 MU in 1998-99 but it fallen to 22176 MU in 1999-2000 (upto December, 1999). Further 1.09 crore consumers were served in 1999-2000 against 1.06 Crore in 1998-99. The percapita consumption is 466 KWh in 1998-99 as against 410 KWh in 1997-98. Despite the impressive growth in installed capacity, the State, it is facing shortage of power both in demand and energy. The capacity addition is not adequate to meet the growing demand in the State.

The number of Substations has also increased from 1683 in 1996-97 to 1931 in 1999-2000, and the number of distribution Transformers increased from 1,47,775 in 1996-97 to 1,79,933 in 1999-2000 as can be seen in Annexure - XL. The number of agricultural consumers increased from 17.36 lakhs in 1998-99 to 17.99 lakh in 1999-2000.

ROADS

Road transport is one of the vital infrastructure, which pays a dominant role in the economic development. Since 73 percent of the population of the state live in rural areas and it is far more important to connect the villages with roads to ensure rural development. The speedy movement of the agricultural commodities to the nearby markets would ensure accelerated economic activity in the rural areas thereby raising the living standards of the rural people. Keeping this in view , development of roads is being taken up in the planning

The length of road network in the state was only 149125 Kms in 1990-91. In view of the high potential in agricultural activity there has been huge increase in road network. The total road network is put at 178012 Kms in 1996-97. Out of which the State High ways constitutes 8806 Kms, Major district roads 140686 Kms including Zilla Parishad roads and 17171 Kms of Urban roads. This is shown in the following table.

Table – 6.7
ROAD LENGTH BY DIFFERENT CATEGORIES IN
ANDHRA PRADESH –1996-97

Source : Infrastructure – CMIE – December 1999.

The road density per 1000 sq.km. of geographical area of the state was 543.33 Km in 1990-91 and it has increased to 647.20 Km in 1996-97 which is lower than the All India average of 750.13 km.

ROAD TRANSPORT

Road Transport Department plays a vital role in the economic development of the State particularly in the transport industry as it regulate the movement of goods and passenger transport for the promotion of trade and commerce. It also helps the State Government to mobilise resources for development of the State.

The total number of vehicles in the State increased from 30.38 lakh numbers in 1997-98 to 33.42 lakh numbers in 1998-99. The details of motor vehicles under different categories is shown in the following table:

Table – 6.8
NUMBER OF MOTOR VEHICLES – DIFFERENT CATEGORIES
1994-95 TO 1998-99.

A.P. STATE ROAD TRANSPORT CORPORATION (APSRTC)

APSRTC is operating 18368 buses as on September 1999. Out of which 1100 are connecting 26424 villages for rural population. 3253 buses for urban population and 4115 buses for long distance routes. APSRTC is having 206 depots, 632 Bus stations, 1797 passenger shelters. It is having 394 inter state routes with 816 buses. APSRTC is the largest State Road Transport Undertaking and stood first in fleet utilisation among the other STUs in the country by achieving 98.16 percent fleet utilisation in 1998-99.

The Corporation operates over and above 56.00 lakh Kms. per day and carrying 1.23 crore passengers daily. The percentage of growth in operated Kms was 0.41 percent as against targets, but when compared to the last year growth was 4.59 percent. The corporation provided seats to the goers in an increase trend so as increased seat kms but there is a drop in passenger kms by 2.13 percent as against targets, by and large it is happened due to increased illicit operations. The occupancy ratio of the corporation during the year 1998-99 dropped to 68 percent from 69 percent of 1997-98.

The regular induction of training and refresher courses for drivers has resulted in safety of operations during night time and day. The average rate of accidents per one lakh kms. of operation during 1998-99 recorded as 0.13 as against 0.14 of 1997-98. The corporation has won the safety award in the year 1996-97.

The APSRTC stood top in fuel performance among the other STUs and significantly improved, for which it won the prestigious award from " Petroleum Conservation Research Association (PCRA)" for the highest fuel efficiency in the country for 17 th consecutive year. The corporation has maintained the same fuel performance in 1997-98 and also in 1998-99 ( 5.05) in terms of Kilometers per litre (KMPL) and saved Rs. 75 crores.

APSRTC is the second largest employer in the state having about 130161 employees on its rolls. The staff per bus ratio on buses held was brought up to 7.25 during 1999-2000 from 7.20 in 1998-99. The employees productivity has gone up from 41 kms in 1997-98 to 43 kms during 1998-99. The performance of APSRTC since 1992-93 to 1999-2000 is shown in Annexure – XLI.

ROAD SAFETY

Road safety is one of the most important aspects of Traffic Management and transparent Administration. It is well known fact that road accidents contribute to more number of fatalities than any other cause. The irony is that they are avoidable and can be minimised. Traffic Management is also assuming greater importance in the reduction of accidents and regulation of mixed traffic.

In this context a brief analysis of accidents that have taken place in Andhra Pradesh is presented in the following table from Police records:

Source:Traffic Management – Road Safety – Society for Communal Harmony,

National Integration & Social Justice, Hyderabad . Government of A.P. Hyderabad.

In general it can be observed that the number of accidents increasing each year. A comparison between number of vehicles registered and the number of accidents that year is shown in the following table.

Table – 6.10
VEHICLE POPULATION AND ACCIDENTS REGISTRATION
IN ANDHRA PRADESH.

Source:Traffic Management – Road Safety – Society for Communal

Harmony, National Integration & Social Justice, Hyderabad .

On an average about 10 accidents and about 3.5 deaths are registered with each increase of 1,000 vehicles registered with the Regional Transport Authority in the State. There appear to be slight reduction in the accident rate per 1,000 vehicles over the years but the overall number of accidents, however, has been on the increase.

RAILWAYS

The total length of Railway lines in the State as on March, 1998, was 5026 K.Ms. comprising of 4303 K.Ms of Broadguage (B.G. 686 K.Ms. of Metre Guage (M.G.) and 37 K.Ms of Narrow Guage). The following Table shows the number of Railway Stations and Kilometreage covered in Andhra Pradesh during the years 1995-96, 1996-97 and 1997-98.

Table – 6.11
NUMBER OF RAILWAY STATIONS AND KILOMETREAGE
IN ANDHRA PRADESH.

N.B: Number of Stations are changed due to Guage change and damage by

Extremists and anti-social elements.

Source:.

General Manager, South Central Railway, Secunderabad.

Sr.Divl. Engineer, South Eastern Railways, Khurda Road , Orissa.

Divl. Railway Manager(Eng) Division, S.E.Railway, Visakhapatnam .

PORTS

Andhra Pradesh has a coast line of 974 Kms running from Ichapuram in the north to Sullurpet in the south. The state had one major port at Visakhapatnam , two intermediate ports one each at Kakinada and Machilipatnam and ten minor ports at Bhavanapadu, Kalingapatnam, Bheemunipatnam, Gangavaram, Muthyalammapalem, Rawa, Narsapur, Nizampatnam, Vadarevu and Krishnapatnam with a good potential.

COMMUNICATIONS

As on March,1999, there were 16186 Post Offices in the State, of which 13669 branch offices, 2360 Sub Post Offices and 104 Head Offices. There were 15.72 lakh telephone connections in the State at the end of the year 1998-99. There were 2171 Telephone exchanges and 124 Telegraph Offices in the State as on 31 st March, 1999 and there were also 60279 Public Telephones. The following Table shows the number of Post Offices, Telegraph Offices and Telephones in the State from 1994 to 1999.

Table – 6.12
POST, TELEGRAPH AND TELEPHONES IN ANDHRA PRADESH .

*Decreased due to closure of offices on account of loss caused by extremists.

**Excluding Extension Counters, Telecom Centres and combined offices.

Source:1.Chief Post Master General, A.P. Circle , Hyderabad .

2.Chief General Manager, Telecommunications, A.P. Circle , Hyderabad .

BANKING

A sound Banking system is the sine-qua-non of accelerated economic growth. Bank performs two functions viz., they encourage the habit of savings and channelise the savings through the form of credit for various people.

In Andhra Pradesh on the last Friday of June, 1999, there were 5058 Bank Offices of all Scheduled Commercial Banks. Of which Rural Bank Offices numbered 2448 (48.4 percent) Semi Urban Branch Offices, 1154 (22.8 percent), Urban Bank offices 951 (18.8 percent) and the rest are Metropolitan Bank Offices (505) (10 percent). The details of performance of Commercial Banks in Andhra Pradesh for the years 1998-99 and 1999-2000 is given in the following Table.

Source:Banking Statistics, Quarterly Handbook – June 1998 & 99, Reserve Bank of .India, Mumbai.

As seen from the above table, the total deposits mobilised by all the Scheduled Commercial Banks in the State as on last Friday of June, 1999 was Rs. 39275.91 crores of which the deposits mobilised in Metropolitan areas of the State was highest to the tune of Rs. 12920.93 Crores followed by Urban areas (Rs. 11557.08 crores), semi urban (Rs. 8997.82 crores) and the rest from Rural Banks (Rs. 5800.08 crores). The total gross Bank advances by all the Scheduled Commercial Banks in the State as on the last Friday of June, 1999, stood at Rs. 25665.67 crores of which the advances deployed by Metropolitan areas in the State was Rs. 10129.14 crores followed by urban areas (Rs. 6164.00 crores) semi Urban Banks (Rs. 4896.55 crores and the remaining by Rural areas (Rs. 4475.99 crores). The profile of Banking Institution in Andhra Pradesh as on June, 1999 is given in Annexure - XLII.

Table – 6.14
CREDIT-DEPOSIT RATIO OF SCHEDULED BANKS
IN ANDHRA PRADESH – JUNE, 1999.

TOURISM

Andhra Pradesh with its long coastline of about 974 K.Ms. scenic beaches, innumerable pilgrim centres, some of which are well-preserved historical sites of international importance, Buddhist monuments and vibrant handicraft centres, present immense potential for the development of tourism hitherto untapped.

With a view to develop tourism and attract private investment and keeping in view the instructions of the Government of India, the Government of Andhra Pradesh have identified the following areas as Special Tourism Areas for intensive investment and development under private sector:

Hyderabad and its surrounding areas;

Visakhapatnam and its surrounding areas;

Tirupathi and its surrounding areas;

Nagarjunasagar and its surrounding Buddhist Centres;

Warangal Special Tourism Area-Heritage Centre.

Tourism Department has conducted various festivals like Tankbund Tamasha, Durgam Cheruvu festival, Deccan Festival at Qutub Shashi tombs, Shilparam Festival, International Kites etc., to highlight the potentiality of the various tourist locations in Hyderabad .

The water fleet activities, of Hussainsagar and at Prakasam Barrage ( Vijayawada ) have been increased by introducing new boats of 48 seaters. Boating operations have also been started in the new areas like Durgam Cheruvu, Miralam Tank and Public Gardens .

The Guest Houses in general at Rishikonda, Araku, Nagarjunasagar, Srisailam, Mantralayam and at Horsley Hills have been renovated and are being given facelift atleast to the two star standards. New Yatriknivases have been constructed at Visakhapatnam , Araku and at Mantralayam.

To top all the tourist spots and to highlight them for domestic and foreign tourists, Fairs and Festivals are being conducted by Tourism Department at different places including at Shilparamam which have been very successful and well received.

New Tourism Policy has been introduced wherein number of incentives have been offered to attract private investment in Hotel industry, transport and other leisure and eco-tourism areas. Investment subsidy of all Tourism ventures above a particular level of investment i.e. Rs. 20.00 lakhs capital expenditure will be eligible for 20% investment subsidy subject to a maximum of Rs. 20 lakhs. These will relate to hotels, golf courses theme parks etc. For the Heritage Hotels located in Hyderabad and other special places of historical importance listed out by the State Government will be entitled to 15% investment subsidy to a maximum of Rs. 20.00 lakhs. Sales Tax is exempted 100% for 5 years for the new units and Special Projects limited to 3 Star Hotels and above. Amusement Parks, Theme Parks coming up in Special Tourism Areas and Notified Tourist Areas.

A glance at the tourist statistics in the State reveal that between 1993 and 1999. Domestic tourist arrivals are higher in visiting the State. These tourists increased from 26.70 millions in 1993 to as high as 39.39 millions in 1999. On the other hand foreign tourists visited the State increased almost continuously from a near 47,000 in 1993 to a little over 78,986 in 1999.