Infrastructure Development in Andhra Pradesh – Transport , Energy and ICT infrastructure – Bottlenecks – Government policy – Ongoing projects.

Infrastructure Development in Andhra Pradesh

Infrastructure Development is critical for economic growth. It plays a significant role in setting up of an enabling platform for sustainable economic development. It includes services such as Power (electricity), telecommunications, sewage and sanitation, gas, roads, railways, seaports, and airports which promote commercial activities, production and consumption. Government of Andhra Pradesh has been pursuing Mission Based Approach for leveraging the sectoral strengths to enable the state reach sustainable double digit growth of GSDP. The paper briefly reviews recent data for the newly formed Sunrise State of Andhra Pradesh in terms of Gross Value Added (GVA) and Gross State Domestic Product (GDP).


Andhra Pradesh is well connected with various destinations in India, as well as other countries. It has road, rail, airways. With a long coast of Bay of Bengal and many sea ports, it flourishes in sea trade as well. The state has one of the largest railway junctions at Vijayawada and Visakhapatnam Port being one of the largest cargo handling seaport.

Road transport

Some of the important key issues and challenges which the road sector would be facing for meeting the aspirational targets are: Land acquisition, Delays in implementation of projects, Delays due to awarding project contract, Contract Management, Poor operational & maintenance, Road Safety, Lack of private sector participation, Lack of access to funds, and Lack of Institutional capability.


Andhra Pradesh has a total railway route of 3703.25 km. The rail density of the state is 16.59 per 1,000 km, compared to an all India average of 20. The Howrah–Chennai main line which runs through the state is proposed to be upgraded into a high-speed rail corridor through the Diamond Quadrilateral project of the Indian Railways.The railway network spans two zones, further subdivided into divisions – Vijayawada, Guntur and Guntakal railway divisions of South Central Railway zone, and Waltair railway division of East Coast Railway zone. There is a demand for creating a unified zone for the state based out of Visakhapatnam.


The major issues and challenges faced by the sector are: Increasing difficulty in addition of low-cost of generation capacity, Significant difference between Actual Cost of Supply  and Aggregate Realization of Revenue for APDISCOMS, High AT&C losses in comparison to global standards, Large energy demand forecasted for 2029, Need to significantly boost renewable energy share, and Institutional capacity of power utilities not being at par with global standards  Based on the understanding of the sector, a vision to aspire for has been drafted.

In line with the vision, it has been proposed that growth of power sector must be guided along the principles of enabling or ensuring accessibility, availability, affordability of power for everyone, accountability of service, focus on renewable energy and energy efficiency in the system. The following are the five strategic areas the state will lay emphasis on: High Seat for Smart Energy, i.e. technologically advanced energy, Focus on Sustainability, Priority for Efficiency, Rapid Capacity Addition, and Leveraging Private Participation.

Vision Targets for Energy Sector:

  • Electrification of all rural households (5.84 lakh) either by access to grid or by DDG (Decentralized Distributed Generation) by 2018-19, in alignment with PFA Initiative Targets.
  • Maintain constant zero energy deficits, by keeping up the capacity addition and procurement of power with the pace of growing demand.
  • T&D loss level of 6% is adopted as the target for 2029 for both APEPDCL and APSPDCL. Power for All Initiative aims to reach 12% by 2019 and additional 0.6% reduction per year is needed for the next 10 years.
  • Reach a 30% renewable energy share of the total energy capacity by 2029.


ICT infrastructure in Andhra pradesh

The Government of Andhra Pradesh aspire to transform the state into a knowledge society and make available the benefits of information technology to all citizens, especially those in rural areas and living in poverty. The State wishes to become a leading destination for investments in Information & Communications Technology (ICT) and a major player in the information economy. The State will leverage ICT for achieving an Info-age (inclusive, networked, fast, open, accountable, globally benchmarked and efficient) government.

The Government had announced the first ICT policy in May 1999 followed by the second policy in June 2002 for attracting investments into the State.

e-Gov. Agency (eGovernment Agency)

AP Technology Services Ltd., (APTS Ltd.) will function as a specialized agency for all e-Government initiatives in the state and will work in close coordination with the Directorate of Electronic Delivery of Services (EDS) and the Institute for Electronic Governance (IEG). APTS will set up specialized cells dealing with Information Security, Outsourcing, Technology tracking, use of open source and providing legal services pertaining to ICT, in addition to its existing focus on IT procurement and application software development.

Chief Information Officers (CIOs)

The Government will expand the existing programme of training of CIOs and will develop linkages with leading institutes like the ‘JF Kennedy School of Government’ in Harvard University and the ‘Civil Services College’ in Singapore for offering specialized programmes in e-government and other related institutions.




Infrastructure bottlenecks

  • Lack of affordability of consumers
  • Land acquisition issues
  • Lack of development goals in quantitative terms
  • Social apathy for infrastructure demand
  • Political unwilligness
  • Institutional incapacity
  • Scarcity of financial resources
  • No mechanism to costs, risks and provide adequate assistant to make project viable.

Infrastructure development mission

Government of Andhra Pradesh has launched an Infrastructure Mission that has its main guiding principles as:

  • To provide excellent global and domestic connectivity
  • To provide well integrated multi-modal transportation
  • To become a logistics hub and a gateway to the world especially Asia and South-East Asia
  • Enable improved quality of life for the citizens
  • Ensure viable, sustainable and green development


  • Optimising and expanding of existing port capacity Existing Minor ports to
  • capitalise on capacity constraints of major ports along the east coast Capitalise on deep draft ports to handle cape-size vessels along the East Coast .
  • Enhance port connectivity to existing ports to be enhanced.
  • Development of new ports to meet demand from industrial corridors.
  • Development of multimodal connectivity and supply chain/logistics infrastructure.
  • Lead containerisation trend through improved supply chain and cargo agglomeration.



  • Prioritise lane expansion of roads with high vehicular traffic.
  • Upgrade state highways to national highways
  • Improve last mile connectivity to ports and industrial hubs
  • Integrate road network with rail and shipping for a multi modal transit system
  • Four/two lane efficient hinterland connectivity to utilise the port development to its full potential
  • four/six lane connectivity from district headquarters to the State capital
  • Village connectivity through up gradation and new roads
  • Increased road density of s and national highways


  • Reduction of AT&C losses
  • 24×7 power to industries, commercial and domestic utilities
  • Capacity addition through purchases
  • Augment power demand through renewable sources
  • Up-gradation and strengthening of key Transmission and Distribution corridors


  • Expansion and up-gradation of operational airports to meet demand from industrial development
  • Development of green field airports
  • Develop Andhra Pradesh as a MRO ( mainteinance,repair and operation) hub in India

Inland Waterways

  • Upgrade National Waterway 5 in and around industrial clusters
  • Improve connectivity to roads and ports
  • Develop the entire stretch of National Waterway 5
  • Enable industrial development of the hinterland by providing IWT as an alternate to surface connectivity for logistics
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