NEW INDUSTRIAL POLICY of ANDHRA PRADESH

INTRODUCTION

Government have introduced New Industrial Policy with great emphasis of provision of Quality Infrastructure coupled with a Policy for gradual phasing out of subsidies and creating right industrial environment in the State to make the State of Andhra Pradesh an attractive destination for both Foreign and Domestic Investors.

INFRASTRUCTURE

  1. Infrastructure facilities such as Roads, Electricity, Water etc., "will be provided at the door step" of the proposed industry in the areas identified by the State Government as Industrial Areas.
  2. Government also facilitates creation of allied infrastructure such as Telecommunication facilities including Internet connectivity and information Kiosks, Transportation links from Industrial Areas to Towns (bus service), Housing Complexes nearer to industries, Container Depots, Exhibition Halls by promoting private participation.
  3. An Industrial Infrastructure Development Fund (IIDF) of Rs.100 crores may be created starting with the year 2000-2001 with provision for necessary step up in fund provision in the subsequent years. This money may be used only when there is no provision for taking up the Infrastructure works under the regular budget/programmes of the concerned line department.
  4. 10% of the IIDF may be spent on Technology Development Cluster Development and Market support systems for the SSI and Tiny sector such as providing corpus for establishment of Technical Institutions, Incubation Centers etc.

2. Wherever industries are located in places other than Industrial Areas (isolated areas), the Government will share the cost of infrastructure up to 25% or Rs.100 lakhs, whichever is less, if such a location is otherwise justified.

CAPTIVE POWER

3. Captive Power generation will be allowed for all industrial units.

4. In order to ensure that there are no power cuts or tripping, dedicated feeders and dedicated lines will be laid by the APTRANSCO to all existing and proposed industrial areas and industrial estates.

5. Up to 10% water from existing projects and new projects will be reserved including existing industrial units.

EXEMPTIONS

6. 50% exemption will be allowed on Stamp Duty, Registration Fee and Transfer Duty of lands meant for industrial use. Exemption of stamp duty and registration fee for loan agreements, credit deeds, mortgages and hypothecation deeds executed by the industries in favour of banks or financial institutions.

INVESTMENT SUBSIDY

7.1 Government proposes to phase out subsidies. However, 20% Investment Subsidy on Capital Investment on land, buildings and plant and machinery up to a maximum of Rs.20 lakhs will be given as subsidy to eligible SSI and Tiny units.

  1. Out of 20% Investment Subsidy, 50% upto a maximum of Rs.10 lakhs will be given as cash subsidy.
  2. The balance subsidy of 50% upto a maximum of Rs.1 lakhs will be provided for the following purposes:

a Import of new (not second hand) machinery
b .    Training of entrepreneurs.
c Training of workers.
d .    Testing & certification facilities for raw material and finished products.

  1. An additional cash subsidy of 10% on capital investment subject to a limit of Rs.10 lakhs will be given to SC/ST entrepreneurs in the eligible SSI and Tiny Units.

SINGLE WINDOW

8.1 Single Window registration for clearance will be made compulsory by Law.

  1. Designated authorities will be created as

A. District Level Authority headed by District Collector for clearing cases upto Rs.1 crore of investment.
B. State Investment Promotion Committee headed by Chief Secretary to clear cases upto Rs.25 crores of investment.
C. State Investment Promotion Board headed by Chief Minister to clear cases beyond Rs.25 crores of investment.

  1. All Procedures for inspections, maintenance of registers, pollution control procedures etc., will be simplified.

10.1 All Industrial units will be exempted from payment of Non-Agricultural Land Assessment.

    1. Environment Tax equal to the cost of plantation and maintenance for 5 years will be levied for raising of green belt industries, who raise green belt to the stipulated extent will be exempted from payment of this Tax.

11.1 The need for conversion of land use from Agriculture use to Industrial use will be dispensed with except in the case of Tank Bed Lands.

    1. Necessary alternate arrangements will be made to collect the relevant fees in order to ensure that the income to the local bodies is not reduced because of this relaxation. This amount can be collected in the form of a Demand Draft (DD) at the time of filing application with the Industries Department and transferred to the concerned local body/Urban Devbelopment Authority. Apportionment of this amount between the local bodies and Urban Development Authorities, whenever they exist together, will be done as per the proportions indicated by the Urban Development and Panchayat Raj Departments.
    1. In case of Mega Projects with capital investment exceeding Rs.500 crores, Government may consider a special package of incentives, except tax based incentives on a case to case basis.

All new Industrial Units other than those listed as "Ineligible" (Annexure-I) to be located anywhere in the State of Andhra Pradesh except in the Municipal corporation areas of Hyderabad, Vijayawada and Visakhapatnam and going into commercial production on or after 1.4.2001 but before 31.3.2005 will be eligible for incentives as mentioned in the present scheme.

Necessary amendments/Orders will be issued by the concerned Departments, Detailed Guidelines will be issued by the Commissioner of Industries separately.

Notes:

  1. For details on Andhra Pradesh Government policies namely (i) IT Policy, (ii) Roads Policy, (iii) Biotechnology Policy, (iv) Ports Policy, (v) Industrial Policy & (vi) Infrastructure Policy please refer the website of Andhra Pradesh Industrial Development Corporation (http://apidc.org/policies.asp) or through State Government website (http://www.andhrapradesh.com/).

2. The Government of Andhra Pradesh have also brought out a priced publication (Rs.200/-) namely ‘Incentives for           Investments in Andhra Pradesh 2000 – 2005). This Brochure contains New Industrial Policy 2000-2005 including annexures and various notifications of the State Government regarding various facilities/incentives made available to the industrial entrepreneurs. This Brochure can be obtained from:-

Commissionerate of Industries,
Government of Andhra Pradesh,
Chirag Ali Lane, Abids,
Hyderabad-500 001.
Tel. No.: 91-040-3202131-135
Fax No.: 91-040-3201335
E-mail : commind@ap.nic.in

The contents of the above Brochure are reproduced below for ready reference of industrial entrepreneurs.

1. New Industrial policy 2000-2005

2. G.O.Ms. No.9 Industries & Commerce (IP) Department, Dated 5.1.2001 Industries – Industrial Policy 2000-2005 – Scheme of State facilities/Incentives for setting up of New Industries in Andhra Pradesh – Orders – Issued.

3. G.O.Ms.No.186 Industries and Commerce (IP) Department, Dt.23.03.2001 Industries –Industrial Policy 2000-2005 – Scheme of State Facilities/Incentives for setting up of New Industries in Andhra Pradesh – Orders – Issued.

4. Memo No.6426/IP/A2/2001-1 Dated 18.04.2001. Industries – Industrial Policy 2000-2005 – Scheme of State Facilities/Incentives for setting up of New Industries in Andhra Pradesh – Clarification – Reg.

5. G.O.Ms.No.103, Revenue (Registration) Department Dated 07.02.2001

Indian Stamp Act, 1899 – 50% Exemption from payment of Stamp Duty and Registration Fee on the instruments of leases, lease-cum-sales and sales executed in favour of Industrial Units in the States for the purposes of setting up or expansion or development of Industries – Orders – Issued.

6. G.O.Ms. No.486 Revenue (Registration & Mandals) Department Dated 12.07.2001. Registration and Stamps Department – 50% Exemption from payment of Stamp Duty and Registration Fee on the instruments executed in favour of Industrial Units in the State – Amendment to the Notification I and II of G.O.Ms. No.103, Revenue (Regn.II) Department, dt. 7.2.2001 – Accepted – Orders – Issued.

7. G.O.Ms. No.243 M.A. Municipal Administration and Urban Development (TC.1) Department, Dt.02.06.2001. Industries – New Industrial Policy of Government – 50% exemption on Transfer Duty to Local Bodies in respect of instruments of Leases, Lease-cum-Sale executed in favour of Industrial Units in the State for the purpose of setting up or expansion or development of Industries – Orders – Issued.

8. G.O.Ms. No.317 M.A. Municipal Administration and Urban Development (TC.1) Department, Dated the 13th July, 2001. Industries – New Industrial Policy of Government – 50% exemption on Transfer Duty to Local Bodies in respect of instruments of Leases, Lease-cum-Sale executed in favour of Industrial Units in the State for the purpose of setting up or expansion or development of Industries – Orders Issued – Amendment – Issued.

9. G.O.Ms. No.187 Panchayat Raj Rural Development (Pts.III) Department, Dated 06.06.2001. PANCHAYATS – Transfer Duty requested for 50% exemption of Transfer Duty levied under Section 69(5) of A.P. Panchayat Raj Act, 1994 on the instruments of Leases, Lease-cum-Sale executed in favour of Industrial Units in the State for the purpose of setting up or expansion or development of Industries – New Industrial Units - Orders Issued.

10. G.O.Ms. No.254 Panchayat Raj Rural Development (Pts.III) Deptt., Dated 01.08.2001. PANCHAYATS – Transfer Duty requested for 50% exemption of Transfer Duty levied under Section 69(5) of A.P. Panchayat Raj Act, 1994 on the instruments of Leases, Lease-cum-Sale executed in favour of Industrial Units in the State for the purpose of setting up or expansion or development of Industries – New Industrial Units - Orders Issued – Amendment to G.O.Ms. no.187, P.R.&R.D. (Pts.III) Department, dt. 06.06.2001 – Issued.

11. G.O.Ms. No.335, Revenue (L.R.1) department dated 22.05.2001, Non-Agricultural Land Assessment Act, 1963 – Exemption from payment of Non-Agricultural Land Assessment – Orders Issued.

12. G.O.Ms. No.169 M.A. Municipal Administration and Urban Development (II) Department, Dated the 27th April, 2001. Industries – Industrial Policy – Scheme of State facilities/Incentives for setting up of certain new Industries – Exemption from conversion of land, Agricultural use to Industrial use except Tank Bed/Water Body Lands – Orders Issued.

13. Govt. Memo. No.7644/QC&IWS/2001, dated 29.05.2001. Directed to reserve upto 10% of the water available in the existing and new Irrigation projects for industrial purposes.

14. G.O.Ms. No.114, Finance and Planning (Plg.IT&C) Department, Dated 25.05.1999. Information Technology (IT) Policy of the Government of Andhra Pradesh – Incentives for promoting the IT Industry and IT Enables Services in the State – Orders Issued.

15. G.O.Ms. No.506 Revenue (CTII) department dated 27.6.1996. Andhra Pradesh General Sales Tax Act 1957 – Exemption of Sales Tax on the Software Products – Notification Issued.

16. G.O.Ms. No.67 Energy (Power II) Department dated 21.07.1998. Information Technology (IT) Policy of the Government of Andhra Pradesh, 1997 – Relating to incentives in respect of power sector – Orders Issued.

17. G.O.Ms. No.161 Environment, Forests, Science and Technology (EMV) Department Dated 15.10.1998 – Information Technology Incentive to the Software Industry – Exemption from the purview of the Andhra Pradesh Pollution Act – Orders Issued.

18. T.O.O. (comm.) No.173 Transmission Corprn. of A.P. dt.10.05.1999 Information Technology (IT) Policy of the Government of Andhra Pradesh, 1997 – Relating to incentives in respect of power sector – Orders Issued.

19. G.O.Ms. No. 25 Information Technology & Communications Department, Dated 24.4.2001. Information Technology (IT) Policy of the Government of Andhra Pradesh – Implementation of the policy in the VEPZ, Visakhapatnam – Authorization to the Development Commissioner – Orders Issued.

20. G.O.Ms. No. 26 Information Technology & Communications Department, Dated 26.4.2001. Extension of time limit by one year for availing concessions under para 11(i) of IT Policy of the Government of Andhra pradesh issued in G.O.Ms. No.114, Finance & Planning (Plg.IT&c) department, dated 25.5.1999 – Amendment – Orders Issued.

21. G.O.Ms. No. 37 Industries ad Commerce (SSI) Department, Dated 16.01.2001. INDUSTRIES & COMMERCE DEPARTMENT – Establishment of Biotechnology Park at Turkapally Village, Shamirpet Mandal, R.R. District – Advisory committee on Biotech Park constituted – Expansion of the membership of the Committee – Orders Issued.

22. G.O.Ms. No. 841 Revenue (CT.II) Department Dt. 20.11.2000. Andhra Pradesh General Sales Tax Act, 1957 – Concessional rate of tax on the products manufactured and sold by all Bio-technology Industries located in Bio-Tech. Park, Turkapally village, extended – Notification Issued.

23. G.O.Ms. No. 148 ENV. Forests, Science & Technology (ENV) Department, Dt. 18.12.2000. Environment, Forests, Science & Technology Department – Establishment of Biotech Park at Turkapally (v), Shamirpet (M), Rangareddy District – Prohibiting the location/expansion of certain air polluting Industries near the proposed Biotech Park within a distance of 25 Kms. From Revenue Village limits of Turkapally Village – Notification Issued.

24. G.O.Rt. No. 112, Industries & Commerce (IP) Department, Dt. 8.2.2001. Industrial Policy Land Promotion – Partnership Summit 2001 held on 9th – 11th January, 2001 at Hyderabad – Proposals received during the Summit – Follow-up action – Orders Issued.

25. G.O.Rt. No. 69 Industries & Commerce (IP) Department, Dt.3.2.2000. Industrial Policy – Steps to be taken to attract the investors to State and to study on the grounding rate of investments – Constitution Sub-Committee – Orders Issued.

26. G.O.Rt. No.320 Industries & Commerce (IP) Department, Dt.3.6.2000 Selection of Consultants for accelerating flow of investment into Andhra Pradesh – Appointment of Nodal Officers for interacting on day to day basis with the Consultants – Orders Issued.

27. G.O.Rt. No. 440 Industries & Commerce (IP) Department (IP) Department, Dt. 2.8.2000. Selection of Consultants for accelerating flow of investment into Andhra Pradesh – Appointment of Nodal Officers for interacting on day to day basis with the Consultants – Amendment – Orders Issued.

28. G.O.Ms. No. 34 Youth, Advance Tourism & Culture (I) Department, Dated 09.02.2001. Tourism – Tourism Policy of Govt. of Andhra pradesh – Incentives & Concessions for promotion of tourism in the State – Orders Issued.

29. G.O.Ms. No. 40 Labour Employment Training & Factories (LAB:IV) Department, Dated 23.05.2001. Labour Department – Measures for simplification of procedures – Formulation of Regulated and systematized inspection procedure in the Labour Department – Orders Issued.

30. G.O.Ms. No. 28 Labour Employment Training & Factories (LAB:II) Department, Dt.21.04.2001. Incentives for Promoting the Information Technology Industry and Information Technology enabled Services, Bio-Technology Establishments, Export Oriented Units/Units in Export processing Zones and Tourism based Establishment – Self Certification to be issued by the Managements under various Labour Acts and Rules.

31. Guidelines for Investment subsidy.

32. Acknowledgement.

33. Application cum verification for Claiming Incentives 2000-2005 scheme of State Incentives Part A, Part B and Part C.

34. Statement of Account in respect of Aided units.

35. Civil Engineer’s Certificate

36. Statement of Plant, Machinery and Equipment for Self financed Units.

37. Advanced Stamped Receipt/Assignment Lettter.

38. Utilisation Certificate

39. Annual Performance Report

40. Notes

For further details, Please Visit Website of Andhra Pradesh: http://www.aponline.gov.in/apportal/index.asp