ANDHRA PRADESH

General Information

Infrastructure

Industrial Policy

New Industrial Policy 1995 of Government of Andhra Pradesh aims at increased investment in industries, both from inside and outside the State, faster implementation of the projects, successful running of the existing and new industries and improvement in the quality of life of the people of the State. The physical targets are to achieve accelerated rate of industrial growth of 20% per annum and total investment of Rs.1000 billion during the next 5 years. For the purpose of incentives, the State has been grouped into three areas which are as under:-

Area - I   : Srikakulam Anantapur and adilabad districts.

Area - II : Nalgonda, Mahabubnagar, Warangal, Kammam, Medak, Karimnagar, Nizamabad, Kurnool, Cuddapah, Chittoor,
Nellore, Vizianagaram & Prakasam districts.

Area - III: Visakhapatnam (except Visakhapatnam Municipal Corpn. Limits). East Godavari, West Godavari, Krishna
(Except Vijayawada Municipal Corpn. Limits) districts, Guntur, Ranga Reddy & Hyderabad (except Hyderabad Municipal Corpn. (Limits) Districts.

Incentives

	Investment subsidy 20% of capital cost subject to a maximum of Rs. 2 million for industries to be setup in Area I and 15% of capital cost upto Rs. 1.5 million in Area II & III
	Additional investment subsidy @ 5% of fixed capital cost upto Rs.0.5 million by A.P. Industrial Infrastructure Corporation (APIIC), at its under-occupied Industrial Estates.
	Investment subsidy 20% of fixed capital cost subject to a maximum of Rs. 2 million for captive power plants upto 1,500 KVA
	Sales Tax Deferment, equal to 135% of fixed capital investment over a period of 14 years OR 7 years Sales Tax Exemption.
	Sales tax exemption, of 100% of fixed capital, or Rs. 3.5 million, whichever is less for tiny and small-scale sector for a period of 5 years.
	25% rebate on power bills for 3 years, upto Rs. 5 million (large-and medium-scale) and Rs. 3 million for small scale industry.
	Special incentives for new small-scale units set up by Scheduled Caste/Scheduled Tribe entrepreneurs (25% of capital cost or Rs. 2 million in Area I, 20% of capital cost or Rs. 2 million in Area II & III)
	The total credit i.e., Term Loan and Working Capital components is eligible for reimbursement of interest subsidy @ 6% for a period of 5 years upto a maximum of Rs. 0.1 million per year for Areas -I,II & III.
	Free pre-shipment storage and low tariffs for units in Vishakhapatnam EXIM Park

State identified priority sectors

Mineral sector, Agro-based and Food processing industry,Drugs and chemicals, Software and Hardware, Precision Engineering,Paper, Cement, Jewellery, Textiles, Development of Mea-Industrial Townships

For further information, please contact:

Email : anrich@hd1.vsnl.net.in
For more information, please visit http://www.stph.net/anrich

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