CCSAP Report - Ministry of Home Affairs

construction and traditional services. However, this migration is not directed
primarily to Hyderabad. Migrants in Rayalaseema and even Telangana seem to
be moving to urban areas outside the state, while those in north coastal Andhra
may be moving to Vishakapatnam. This is to be expected since short-term
migrants probably move to nearby urban centres.
6.18 Investment Linkages
6.18.01 It is difficult to determine investment linkages in the absence of
specific data about investment inflows into the city. A very broad assessment can
be made based on the analysis of projects over 2000 to 2010 in the CMIE data
on capital expenditure on projects. 16 There are ninety four groups identified
separately in the database for investments in Hyderabad and Rangareddy. Of
these, seventy four are from outside Andhra Pradesh, testifying to the breadth of
investment linkages in the region. There are also a number of foreign firms who
are investing in the Hyderabad region.
6.18.02 The broad conclusion from the completed projects is that there is
significant investment from non-AP private investors and from Central and State
investors. As shown in Table 6.11A, only 25% of the total investments are from
private AP based investors. Even in Construction and Real Estate, Finance,
Business Services, it appears that private AP based investors are not dominant,
attesting to the diversified nature of the real estate industry. 17 However, in some
sectors like Pharmaceuticals, and Community, Social and Personal Services
(mainly hospitals and educational institutions), private AP based investors
account for much of the investment. This feature is also true for 128 announced
16 There are 447 completed projects over 2000 to 2010 in the CMIE Capex data for Hyderabad and Rangareddy. Of these
337 projects have information on project cost, aggregating to a total investment of ` 31,268 crore. In addition, there
are213 announced projects. Of these 128 projects have information on project cost, aggregating to a total investment of
61,971 crore. There are also 312 projects under implementation, of which 223 projects have information on project cost,
aggregating to a total investment of ` 187,147 crore.
17 If it is the case (there is no information on this) that much of the civil works contracting for private non-AP investors
and for projects initiated by the State and Central governments is done by local construction companies, a perception of
local dominance in real estate and construction may be formed.
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