Saturday, January 16, 2021

Table of Contents for Cover Story

The New Growth Clusters

The new growth clusters 


New areas of development will come up in the newly formed Seemandhra, writes SANDEEP PATNAIK

The residual part of Andhra Pradesh, popularly known as the Seemandhra region, came into existence on the 2nd June 2014 after the new state of Telangana was formed. The capital city of Andhra Pradesh, Hyderabad is geographically part of Telangana, but will serve as the joint capital of the two states for next 10 years. The new Andhra Pradesh has immense potential for development due to its geographical location. It has the second largest coast line after Gujarat, and the state has five sea ports. It also has four airports, which significantly enhances the air connectivity of the cities. The NH-5, part of The Golden Quadrilateral (the highway network connecting Delhi, Mumbai, Chennai and Kolkata), passes through the key cities of the Seemandhra region, accounting for considerablew strength in terms of road connectivity.

The key development clusters of Andhra Pradesh which can drive its growth are:

  • North Cluster – Visakhapatnam
  • North Central Cluster- Rajamundry and Kakinada
  • Central Cluster- Vijayawada, Guntur, Tenali and Mangalgiri
  • South Cluster- Tirupati, Nellore and Ongole



Visakhapatnam, also known as the ‘City of Destiny’, is an important port city of Andhra Pradesh. Madhurawada, located in the north-east of the city along NH-5, is already developed as an IT hub, with information technology firms having been allocated land in this area to develop and start their operations. A few of these companies are already operational. The south-west part of Visakhapatnam is home to Jawaharlal Nehru Pharma City (JNPC), the only pharmaceutical SEZ in India. Industrial developments such as the steel and power plants are located towards the south. The city’s two ports - Vizag Port and Gangavaram Port (the deepest port in India) - are on the south-east of the city.

Visakhapatnam is now emerging as a major healthcare hub, with Manipal Hospitals, Apollo Hospitals and Narayana Hrudayalaya planning to expand further in the city.  It also has potential to develop on the film and tourism industry, given its scenic beauty. With many public sector units operational there, Vizag also has notable potential for development in coming years.



Rajahmundry, a city of great historical and religious relevance, is located on the bank of the Godavari and has huge tourism potential. With an airport located at Madhurapudi, it is well-connected to Hyderabad by air. Kakinada, located close to Rajamundary, has a port and is part of the thriving PCPIR (Petroleum, Chemical and Petrochemical Investment Region). It is, in fact, an important base for ONGC. Also, the Reliance Industries Ltd (RIL) Onshore Gas Terminal at Gadimoga is located at about 30 kilometres south of Kakinada. This city has immense development potential for industrial, warehousing and logistics development.



This cluster is most likely to house the new capital of Andhra Pradesh and is expected to become the financial centre of the state. The two growing areas within this cluster are Gannavaram and Guntur. Vijayawada is traditionally a trading town and lies in the prime agricultural bed of Andhra Pradesh. The main economic base being agriculture, this city has considerable potential for development in terms of the food and agro industries. An IT park is located at Gannavaram near Vijayawada Airport, and there is a proposed IT SEZ at Mangalagiri. The city is expanding along the NH-5, and the major growth is along the south corridor of NH-5 towards Guntur. Its proximity to Machilipatnam Port is a huge advantage for Vijayawada which, along with Guntur, is also home to many educational institutions. Together, they form an important educational hub of the state.



This cluster is located close to Chennai and Bengaluru. Tirupati has a planned IT SEZ at Renigunta close to the airport, with the town growing along its east towards Renigunta. The city has good growth potential, as it is almost equidistant to Chennai and Bengaluru. Also, it is an important pilgrimage destination of India and therefore witnesses considerable tourism activity. In Nellore, located 130 kms from Tirupati, agriculture and aquaculture form the primary economic base of the city. However, it is gradually witnessing industrial development as Krishnapatnam Port is located there. The city has a distinct business spirit, as some key entrepreneurs of India hail from this district.  In addition, Sri City - an industrial hub - is located in Nellore. This hub is an integrated township development which has witnessed huge industrial investments. All factors considered, Nellore is likely to see considerable manufacturing-based industrial development in the future. Ongole, located 130 kms from Nellore, is also poised to develop on lines very similar to Nellore.


The author is MD-Hyderabad, JLL India

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