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Bifurcation of Andhra Pradesh and the Reorganisation Act 2014 · Chapter 7

Post-Bifurcation Infrastructure and Investment

What to remember

  • The Act promised central institutions, ports, a corridor and a railway zone for the residuary State. These were listed mainly in the Act's socio-economic development provisions and in Schedule XIII, to make up for what was lost when Hyderabad went to Telangana.
  • The Visakhapatnam-Chennai Industrial Corridor (VCIC) is the first coastal corridor in the country's industrial corridor programme. It is meant to link industrial nodes along the Andhra coast with Chennai.
  • This chapter describes what was promised and planned. It does not claim the current status of any project. Always check the latest official release for the present position.

Why these promises were made

Before 2014, Hyderabad had the main higher education institutions, research centres, IT companies and large industrial units of the old State. After division, the residuary State had to build such a base again. The Act therefore directed the Union Government to take steps for socio-economic development, including setting up central institutions and improving infrastructure. These promises are found in the Act's part on socio-economic development measures and in Schedule XIII.

Three groups of promises are important:

  • Education and research institutions such as central universities, IIT, IIM, IISER, NIT, IIIT and an AIIMS-type institution.
  • Industrial and economic infrastructure such as the industrial corridor, ports and petroleum-based industry.
  • Transport, including a railway zone and metro and airport improvements.

Central educational institutions listed in the Act

Schedule XIII lists central institutions that were to be set up in the residuary State. The table names the types of institution. The places named after the table were associated with them in later official decisions. Check the latest release for present status.

Institution typeRemarks
Central UniversityA Central University for the residuary State
Central Tribal UniversityFor the tribal regions
IITAn Indian Institute of Technology
IIMAn Indian Institute of Management
IISERIndian Institute of Science Education and Research
NITNational Institute of Technology
IIITAn Indian Institute of Information Technology
AIIMS-type institutionA medical institute of national importance
Petroleum institutionAn institute in the petroleum and energy field
OthersInstitutions for design, agriculture, food processing and similar areas

Places often named in this context are Anantapur (Central University), Vizianagaram (Central Tribal University), Tirupati (IIT and IISER), Visakhapatnam (IIM and the petroleum institute), Tadepalligudem (NIT), Mangalagiri (AIIMS) and Kurnool (IIITDM Kurnool, the IIIT under the Act). These are stated as assigned places, not as completed works.

Always distinguish between "listed in the Act", "site decided" and "campus ready". The Act itself lists only the institution and a time frame, such as setting up within a stated number of years. Different institutions are at different stages.

Industrial corridor: VCIC

  • VCIC stands for Visakhapatnam-Chennai Industrial Corridor.
  • It forms part of the East Coast Economic Corridor initiative, and it is the first coastal corridor in the country.
  • It was planned with support from an international development bank.
  • The corridor is built around nodes (industrial clusters) in the coastal belt, linked by road, rail and ports. Visakhapatnam, Kakinada and Krishnapatnam are commonly named as nodes.
  • Its aims include manufacturing growth, jobs, better logistics and trade with East and Southeast Asia.
  • The Act also promised fiscal incentives for industry in the residuary State and development of backward areas.
TermMeaning
NodeA planned industrial cluster with land, power, water and links
CorridorA belt of connected nodes and transport links
LogisticsMovement and storage of goods
HinterlandArea behind a port that supplies and buys goods

Ports

The Act contains a promise to develop ports and a port at Dugarajapatnam in the south. The coast of Andhra Pradesh is long, and ports are an important basis for trade and industry.

  • Major port: Visakhapatnam is a major port under the Union Government.
  • Non-major (State) ports: Krishnapatnam, Kakinada and Gangavaram are examples of ports run under State arrangements or public-private participation.
  • New port: a major port was proposed at Dugarajapatnam. Another place often mentioned is Ramayapatnam. Describe them as proposed, not built.
  • Port-led industry: ports are linked with industrial parks, special zones and rail connections.
  • The Sagarmala programme supports port-led growth along the whole coast.
PortType (broad)
VisakhapatnamMajor port
KrishnapatnamNon-major port
KakinadaNon-major port
GangavaramNon-major port
DugarajapatnamProposed in the Act

Railways: the zone issue

  • The Act asked the Railway Ministry to examine the creation of a new railway zone for the residuary State.
  • The proposed zone is generally spoken of as the South Coast Railway zone, with its headquarters at Visakhapatnam.
  • A railway zone is an administrative unit headed by a General Manager; it is divided into divisions.
  • The difficulty has been in how to divide existing divisions and which one would be shifted, because zone boundaries also affect revenue and staff.
  • Other railway promises included new lines and improved connectivity of backward areas.

Describe this as "announced and under implementation or discussion" only if the latest official source says so. In an exam, simply state what was proposed.

Other infrastructure promises

  • Metro rail: support for metro systems in Visakhapatnam and Vijayawada was mentioned.
  • Airports: better airports and new international connectivity were mentioned.
  • A steel plant: the Act promised a study on a steel plant in the backward Rayalaseema region, and a similar study on a petrochemical complex on the coast. The word used is "examine", so it is a study commitment.
  • New capital: the Centre promised help for building essential facilities for the capital.
  • Power: the Act contains provisions for sharing of power from existing plants.

Investment and industry ideas

  • Special Economic Zones (SEZs) and industrial parks are areas with ready land, power and water and special tax rules. They are used to attract investment.
  • Single-window clearance means that an investor gets most approvals from one agency. States use it to improve their ease of doing business.
  • Public-private partnership (PPP) is a way of building ports, roads and airports where the private partner invests and operates for a fixed period.
  • Backward region development means measures for Rayalaseema and North Coastal Andhra, where income and infrastructure are lower than in the coastal delta districts.
  • Food processing, pharmaceuticals, electronics and textiles are sectors that the State has often promoted. Do not quote output or investment figures.
  • Fiscal incentives in the Act were meant for new industrial units in the residuary State, such as depreciation benefits and similar concessions.

Reading the map of promises

A simple way to remember the chapter is to think of three belts. The north coast around Visakhapatnam holds the major port, the proposed railway zone headquarters, the IIM and the petroleum institute. The central coast around Krishna and Godavari deltas holds the capital region, the AIIMS-type institution and Kakinada. The south and Rayalaseema hold Tirupati, Krishnapatnam, Dugarajapatnam and Anantapur. This is only a memory aid and not an official classification.

How to write about status

When a question asks about a project's present position, use phrases such as "was proposed under the Act", "was assigned to", or "the latest official release should be checked". Do not say "completed" or "fully functional" unless the question itself says so. A listed institution may be at one of these stages: (1) listed in the Act, (2) location decided, (3) temporary campus working, (4) permanent campus ready. Exam questions usually test stage (1) and (2), that is, what the Act says and which institution belongs to which type.

Exam traps

  • Schedule XIII lists the central institutions; Schedule IX lists companies and Schedule X lists State institutions.
  • VCIC links Visakhapatnam and Chennai, not Visakhapatnam and Kolkata.
  • Visakhapatnam is the major port; Krishnapatnam, Kakinada and Gangavaram are non-major ports.
  • Dugarajapatnam was proposed as a port; it should not be called a completed port.
  • A railway zone has divisions; a division is not a zone.
  • The proposed zone is South Coast Railway, not South Central Railway (which is based in Secunderabad).
  • IIM is for management; IISER is for science education; NIT is for technology at the national level.
  • Polavaram is a national project but is not part of Schedule XIII institutions.

One-liners

  • The Act's socio-economic development provisions are backed by Schedule XIII.
  • Schedule XIII lists central institutions for the residuary State.
  • The Act promised a Central University and a Central Tribal University.
  • IIT, IIM, IISER, NIT, IIIT and an AIIMS-type institution were listed.
  • VCIC stands for Visakhapatnam-Chennai Industrial Corridor.
  • VCIC is a coastal corridor.
  • Visakhapatnam is a major port.
  • Krishnapatnam is a non-major port.
  • A port at Dugarajapatnam was proposed in the Act.
  • A new railway zone for the residuary State was to be examined.
  • The proposed zone has its headquarters at Visakhapatnam.
  • Sagarmala is the national port-led development programme.

Practice questions

  1. Which schedule of the Act lists central institutions for the residuary State?

    1. Schedule IX
    2. Schedule V
    3. Schedule X
    4. Schedule XIII
    Answer

    D. Schedule XIII

    Schedule XIII lists central institutions.

  2. VCIC stands for

    1. Vijayawada-Chennai Industrial Centre
    2. Visakhapatnam-Cochin Industrial Corridor
    3. Vizag Coastal Industrial Council
    4. Visakhapatnam-Chennai Industrial Corridor
    Answer

    D. Visakhapatnam-Chennai Industrial Corridor

    VCIC links Visakhapatnam and Chennai.

  3. VCIC is described as the first

    1. inland corridor
    2. river-front corridor
    3. desert corridor
    4. coastal industrial corridor in the country
    Answer

    D. coastal industrial corridor in the country

    It is the first coastal corridor in the national corridor programme.

  4. Which of the following is a major port in Andhra Pradesh?

    1. Visakhapatnam
    2. Gangavaram
    3. Kakinada
    4. Krishnapatnam
    Answer

    A. Visakhapatnam

    Visakhapatnam is a major port; the others are non-major ports.

  5. Which of these is a non-major port?

    1. Krishnapatnam
    2. Visakhapatnam
    3. Kolkata
    4. Chennai
    Answer

    A. Krishnapatnam

    Krishnapatnam is a non-major port.

  6. The Act proposed a major port at

    1. Nellore town
    2. Vijayawada
    3. Machilipatnam
    4. Dugarajapatnam
    Answer

    D. Dugarajapatnam

    A port at Dugarajapatnam was proposed in the Act.

  7. The proposed new railway zone for the residuary State is generally called

    1. East Coast Railway
    2. South Coast Railway
    3. Southern Railway
    4. South Central Railway
    Answer

    B. South Coast Railway

    The proposed zone is South Coast Railway with its headquarters at Visakhapatnam.

  8. The headquarters of the proposed South Coast Railway zone is Visakhapatnam. A railway zone is headed by

    1. a Commissioner of Police
    2. a General Manager
    3. a Governor
    4. a Collector
    Answer

    B. a General Manager

    A zone has a General Manager; a division has a Divisional Railway Manager.

  9. A railway zone is divided into

    1. taluks
    2. mandals
    3. districts
    4. divisions
    Answer

    D. divisions

    Zones have divisions.

  10. IISER stands for

    1. Indian Institute of Science Education and Research
    2. Indian Institute of Social Education and Research
    3. Indian Institute of Systems Engineering Research
    4. International Institute of Science and Engineering Research
    Answer

    A. Indian Institute of Science Education and Research

    IISER is for science education and research.

  11. IIM is an institute for

    1. medical studies
    2. marine studies
    3. management studies
    4. mining studies
    Answer

    C. management studies

    IIM stands for Indian Institute of Management.

  12. AIIMS stands for

    1. Advanced Institute of Medical Science
    2. All India Institute of Medical Sciences
    3. Academy of Indian Institutes of Medicine
    4. All India Institute of Management Studies
    Answer

    B. All India Institute of Medical Sciences

    AIIMS is the medical institute of national importance.

  13. NIT is an institute for

    1. technology education
    2. tourism
    3. telecom services
    4. taxation
    Answer

    A. technology education

    NIT stands for National Institute of Technology.

  14. Which place is often named in connection with the Central Tribal University?

    1. Anantapur
    2. Tirupati
    3. Sri City
    4. Vizianagaram
    Answer

    D. Vizianagaram

    Vizianagaram is associated with the Central Tribal University; Anantapur with the Central University.

  15. Which place is often named in connection with the Central University for the residuary State?

    1. Mangalagiri
    2. Visakhapatnam
    3. Vizianagaram
    4. Anantapur
    Answer

    D. Anantapur

    Anantapur was assigned the Central University.

  16. Which place is often named in connection with the AIIMS-type institution?

    1. Anantapur
    2. Mangalagiri
    3. Vizianagaram
    4. Kakinada
    Answer

    B. Mangalagiri

    Mangalagiri is associated with AIIMS.

  17. Which place is often named in connection with the IIM for the residuary State?

    1. Anantapur
    2. Tadepalligudem
    3. Visakhapatnam
    4. Tirupati
    Answer

    C. Visakhapatnam

    IIM is associated with Visakhapatnam.

  18. Tadepalligudem is associated with which institution?

    1. NIT
    2. IIM
    3. IIT
    4. AIIMS
    Answer

    A. NIT

    NIT Andhra Pradesh is associated with Tadepalligudem.

  19. Which programme supports port-led development along India's coast?

    1. Jal Jeevan
    2. Bharatmala
    3. Sagarmala
    4. Udan
    Answer

    C. Sagarmala

    Sagarmala is the port-led development programme.

  20. Which programme relates to road corridors and highways?

    1. Bharatmala
    2. Swachh Bharat
    3. Sagarmala
    4. PM Gati
    Answer

    A. Bharatmala

    Bharatmala is the highways programme; Sagarmala is for ports.

  21. A node in an industrial corridor is

    1. a tax office
    2. a planned industrial cluster
    3. a district court
    4. a river junction
    Answer

    B. a planned industrial cluster

    Nodes are planned clusters with land, power, water and links.

  22. PPP in infrastructure stands for

    1. public purchase plan
    2. provincial planning programme
    3. private-property policy
    4. public-private partnership
    Answer

    D. public-private partnership

    PPP means public-private partnership.

  23. A Special Economic Zone is mainly meant to

    1. settle disputes
    2. run schools
    3. attract investment and exports
    4. collect land revenue
    Answer

    C. attract investment and exports

    SEZs are areas with special rules to attract investment and exports.

  24. Which port serves the hinterland as a major port under the Union Government?

    1. Visakhapatnam
    2. Gangavaram
    3. Krishnapatnam
    4. Kakinada
    Answer

    A. Visakhapatnam

    Visakhapatnam Port is a major port.

  25. A 'hinterland' of a port is

    1. its lighthouse
    2. the area behind it that supplies and buys goods
    3. the sea in front of it
    4. a ship repair yard
    Answer

    B. the area behind it that supplies and buys goods

    Hinterland is the land area served by a port.

  26. The Act's promise on a steel plant in the Rayalaseema region was in the form of

    1. a completed plant
    2. a ban on steel
    3. an export order
    4. a study on its feasibility
    Answer

    D. a study on its feasibility

    The Act uses the word 'examine', so it is a study commitment.

  27. The Act's promise on a petrochemical complex on the coast was in the form of

    1. a completed complex
    2. a study on its feasibility
    3. a closure order
    4. a licence for private use only
    Answer

    B. a study on its feasibility

    The Act uses examining language for this proposal.

  28. Which of the following is NOT a type of institution promised in Schedule XIII?

    1. IIM
    2. Central University
    3. IIT
    4. High Court of Telangana
    Answer

    D. High Court of Telangana

    The High Court is not a Schedule XIII institution.

  29. Statements: 1. VCIC links Visakhapatnam and Chennai. 2. VCIC is a coastal corridor.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both are correct.

  30. Statements: 1. Visakhapatnam is a major port. 2. Krishnapatnam is a major port.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    Krishnapatnam is a non-major port.

  31. Statements: 1. A railway zone is headed by a Collector. 2. A railway zone has divisions.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    B. 2 only

    A railway zone has a General Manager.

  32. Statements: 1. Schedule XIII lists central institutions. 2. Schedule IX lists central institutions.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    Schedule IX lists companies and corporations.

  33. Statements: 1. Bharatmala is a port-led development programme. 2. Sagarmala is a port-led development programme.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    B. 2 only

    Bharatmala is the highways programme.

  34. Statements: 1. The Act proposed a port at Dugarajapatnam. 2. The Act said the port was already completed.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    The Act only proposed it.

  35. Statements: 1. IIM focuses on medicine. 2. IISER focuses on science education.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    B. 2 only

    IIM focuses on management.

  36. Statements: 1. The South Coast Railway zone was proposed with headquarters at Visakhapatnam. 2. South Coast Railway is the same as South Central Railway.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    They are different zones; South Central Railway is based at Secunderabad.

  37. Statements: 1. Listing in the Act means the campus is complete. 2. A listed institution may be at various stages of progress.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    B. 2 only

    A listing does not mean completion.

  38. Statements: 1. Public-private partnership is used for ports and roads. 2. Single-window clearance gives investors approvals from one agency.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both are correct.

  39. Statements: 1. The Act provided for fiscal incentives for industry in the residuary State. 2. The Act provided help for the capital.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both are among the Act's measures.

  40. Statements: 1. A hinterland is the area served by a port. 2. A node is a planned industrial cluster.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both definitions are correct.

  41. Statements: 1. Gangavaram is a non-major port. 2. Kakinada is a non-major port.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both are non-major ports.

  42. Statements: 1. IIT stands for Indian Institute of Technology. 2. NIT stands for National Institute of Technology.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both expansions are correct.

  43. Statements: 1. Backward region measures cover Rayalaseema and North Coastal Andhra. 2. They cover only Hyderabad.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    Hyderabad is in Telangana.

  44. Which of the following is best placed after 'site decided' in the stages of a listed institution?

    1. Listed in the Act
    2. Rejected
    3. Merged with another State
    4. Temporary campus working
    Answer

    D. Temporary campus working

    Stages: listed, site decided, temporary campus, permanent campus.

  45. Why were institutions and infrastructure promised for the residuary State?

    1. To end the Governor's role
    2. To change the State's name
    3. To reduce the number of districts
    4. To rebuild the base lost with Hyderabad
    Answer

    D. To rebuild the base lost with Hyderabad

    Hyderabad held most higher education, IT and industry.

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