GOVERNMENT OF ANDHRA PRADESH
Industries Industrial Policy 2000-2005 -Scheme of State facilities/ Incentives for setting up of New Industries in Andhra Pradesh Orders - Issued.
INDUSTRIES AND COMMERCE (IP) DEPARTMENT
Read the following:-
1.G.O.Ms.No.498, Industries & Commerce (IP) Department,Dated16-10-1989.
2.G.O.Ms.No.146, Industries & Commerce (IFR) Department,Dated16-10-1991.
3. 3. G.O.Ms.No.311, Industries & Commerce (IFR) Department,Dated 30-8-1991.
4. Government Memo No.2125/IA/89-1, dated 15-9-1990.
5.G.O.Ms.No.654, Industries & Commerce (II&CP)Department,Dated 13-7-1976.
6. A.P.State Electricity Board B.P.Ms.No.691, Commercial,Dated10-8-1976.
7. G.O.Ms.No.379, Industries & Commerce (IA) Department,Dated27-7-1989.
8. G.O.Ms.No.305, Industries & Commerce (IFR)Department,Dated 17-3-1993.
9.Government Memo No.1521/IFR/91-4, Dated 19-8-1992.
10.G.O.Ms.No.117, Industries & Commerce (IFR)Department,Dated 17-3-1993.
11.G.O.Ms.No.149, Industries & Commerce (IFR) Department,Dated 31-3-1993.
12. G.O.Ms.No.317, Industries & Commerce (IFR)Department,Dated 14-9-1993.
13.G.O.Ms.No.238, Energy, Forest (RES) Department,Dated26-11-1993.
14.G.O.Ms.No.31, Tourism, Culture, Sports and Youth,Services(Tourism) Dept., Dated 13-4-1994.
15.G.O.Ms.No.386, Industries & Commerce (IFR) Department,Dated 26-9-1994
16.G.O.Ms.No.390, Industries & Commerce (IFR) Department,Dated30-9-1994
17.G.O.Ms.No.187, Industries &Commerce (IP)Department, Dated21-11-1995.
18.G.O.Ms.No.34, Industries & Commerce (IP) Department,Dated:31-01-1996
19.G.O.Ms.No.108, Industries & Commerce (IP) Department,Dated20-5-96.
20.G.O.Ms.No.241, Industries & Commerce (IP)Department, Dated:15.7.98
O R D E R:
Government have been extending various Incentivesfor encouraging establishment of new industrial units in the State since 1961. Based onthe recommendations made by the Expert Committee headed by Dr. Ram K. Vepa, IAS (Retd.),the State Government have introduced "Liberalised State Incentive Scheme (LSIS)"vide reference 1st read above, for a period of three years with effect from3-10-1989 in order to achieve all round industrial development. Government have alsoannounced a Scheme of special incentives for new SSI units set up by entrepreneursbelonging to SC & ST communities in the G.O. 3rd read above for a period ofthree years with effect from 3-10-1989. In the G.O. 5th read above an incentiveby way of 25% rebate in power charges for first three years from the date of commencementof commercial production was allowed to certain categories of new industries throughAPSEB.
2. In the Industrial Policy announced in May1992, the Government have proposed to extend general incentives in the G.O. 1stread above and also the Special Scheme of Incentives for SC & ST entrepreneurs tillthe end of VIII th. Five Year Plan period. Accordingly, Government have modified theLiberalised State Incentive Scheme (LSIS) Scheme, 1989 and announced a New ComprehensiveScheme of State Incentives (NCSSI) vide reference 10th read above. Guidelinesand instructions for effective implementation of the new comprehensive was also issued.The scheme was in force up to 31-3-1997.
3. While the New Comprehensive Scheme of StateIncentives (NCSSI) Scheme was in operation, Government have after careful review andexamination of this package of incentives and several other connected factors have decidedto introduce a New Industrial Policy called "Target-2000" in order to accelerateindustrial development of the State through the reference 19th read above.Under this Scheme a new set of Incentives were announced in partial modification ofearlier Scheme of Incentives. All categories of New Industrial units, expansions anddiversifications, whether large, medium or small other than those declared ineligible andlocated anywhere in the State of Andhra Pradesh, except within the Municipal Corporationareas of Hyderabad, Vijayawada and Visakhapatnam, and going into commercial production onor after November 15, 1995 have been made eligible for incentives. The above incentivepolicy under target 2000 was in operation till 31-3-2000.
4. Government after detailed and careful reviewof the Industrial scenario in the State and also the over all impact of various IncentiveSchemes implemented in the State hitherto and keeping in view the Government of Indiaadvice to do away with all tax based incentives worked out a draft New Industrial Policywith greater emphasis on provision of quality infrastructure coupled with a policy forgradual phasing out of subsidies and creating right industrial environment in the State tomake the State of Andhra Pradesh an attractive destination for both foreign and domesticinvestors.
5. After detailed examination and discussionswith the representatives of Industry, and all concerned, Government approved thefollowing:
1.1. Infrastructure facilities such as roads, electricity, water, drainage etc., to be provided at the door step" of the proposed industry in the areas identified by the State Government as Industrial areas.
1.2. 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.
1.3. 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.
1.4. 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.
2.1. Whenever 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.
3.1.Captive Power generation will be allowed forall industrial units.
4.1. In order to ensure that there are no powercuts or tripping, dedicated feeders and dedicated lines will be laid by the APTRANSCO toall existing and proposed industrial areas and industrial estates.
5.1. Up to 10% water from existing projects andnew projects will be reserved for industrial purposes including existing industrial units.
6.1. 50% exemption will be allowed on Stamp Duty,Registration Fee and Transfer Duty of lands meant for industrial use. Exemption of stampduty and registration fee for loan agreements, credit deeds, mortgages and hypothecationdeeds executed by the industries in favour of banks or financial institutions.
7.1. Government proposes to phase out subsidies.However, 20% Investment Subsidy on Capital Investment on land, buildings and plant andmachinery up to a maximum of Rs. 20 lakhs will be given as subsidy to eligible SSI andtiny units.
7.2. Out of 20% Investment Subsidy, 50% upto amaximum of Rs. 10 Lakhs will be given as cash subsidy.
7.3. The balance Subsidy of 50% upto a maximum ofRs. 10 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 and certification facilities for rawmaterial and finished products
7.4. An additional cash Subsidy of 10% on capitalinvestment subject to a limit of Rs.10.00 lakhs will be given to SC/ST enterpreneurs inthe eligible SSI and Tiny Units.
8.1.Single Window registration for clearance will bemade compulsory by Law.
8.2. Designated authorities will be created asfollows:
A. District Level Authority headed by District Collector for clearing cases upto Rs.1.00 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.
9.1. All procedures for inspections, maintenanceof registers, pollution control procedures, etc will be simplified.
10.1. All Industrial units will be exempted frompayment of Non-Agricultural Land Assessment.
10.2. Environment Tax equal to the cost ofplantation 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 ofthis Tax.
11.1. The need for conversion of land use fromAgriculture use to Industrial use will be dispensed with except in the case of Tank bedlands.
11.2. Necessary alternate arrangements will bemade to collect the relevant fees in order to ensure that the income to the local bodiesis not reduced because of this relaxation. This amount can be collected in the form of aDemand Draft (DD) at the time of filing application with the Industries Department andtransferred to the concerned local body/Urban Development Authority. Apportionment of thisamount between the local bodies and Urban Development Authorities, wherever they existtogether, will be done as per the proportions indicated by the Urban Development andPanchayat Raj Departments.
12. In case of Mega Projects with capitalinvestment exceeding Rs.500Crores, Government may consider a special package ofincentives, execept tax based incentives on a case to case basis.
6. All new Industrial Units other than thoselisted as ineligible (Annexure-I) to be located anywhere in the Stateof Andhra Pradesh except in the Municipal Corporation areas of Hyderabad, Vijayawada andVisakhapatnam and going into commercial production on or after 1-4-2000 but before31-3-2005 will be eligible for incentives as mentioned in the present scheme.
7. Necessary amendments/ Orders will be issued bythe concerned Departments. Detailed guidelines will be issued by the Commissioner ofIndustries separately.
8. This order issues with the concurrence ofFinance and Planning (Fin. Wing) Department vide their U.O.No.74/1/Exp.I&C/2001,dated.3.1.2001.
(BY ORDER AND IN THE NAME OF THEGOVERNOR OF ANDHRA PRADESH)
PRINCIPAL SECRETARY TO GOVERNMENT AND
COMMISSIONER FOR INDUSTRIAL PROMOTION
The Commissioner of Industries, Hyderabad.
The Accountant General, Andhra Pradesh,Hyderabad.
The Chief Secretary to Government, Hyderabad.
The Prl.Secretary to Chief Minister.
All Private Secretaries to the Ministers.
The Pay and Accounts Officer, Hyderabad.
All District Collectors.
All Heads of Departments.
All Departments of Secretariat.
All Govt. Companies/Corpns.
The Fin & Plg (Fin.Wing.Expr.Inds) Dept.
All General Managers, District Industries Centrein the State.
All Sections in the Dept.
//FORWARDED BY ORDER//
LIST OF INELIGIBLE INDUSTRIES
1. All process of Edible Oil Seeds/Cakes viz., 1. Groundnut 2. sesam 3.Safflower 4. Rape Seed/Mustard 5. Coconut (both tender & dry) 6.sunflower, Niger Cotton Seed.
(All processes include Decorticating, Expelling, Crushing, Roasting, Parching, Frying)
2. Rice, Dall and Flour Mills including Roller Flour Mills, Modern Rice Mills and Parboiled Mills, Idli Rava, Parched/Flaked Rice (Poha & Murmura).
3. Coffee Roasting, Grinding.
4. Ice Cream, Ice Candy, Kulfy, Ice Fruit, Pepsy, Tuty Fruity etc.
5. Chacolates, Pepermints and Confectionery, Chewing gum except those having ISI, AG Mark or FPO Mark.
6. Aerated Waters including soft drinks.
7. Nut Powder including Raw nut processing, Chikini Power and Pan Masala.
8. Khandasari Sugar and Sugar Mills.
9. Powders of Chilly, turmeric, Masala, Spices, Curry, Sambar etc.
11. Pickles & Chutnys other than 100% EOUs.
12. Beer and other Alcoholic Drinks.
13. Rectified Spirit (Alcohol) from out of Molasses.
14. Alcohol based Industries except Pharmaceuticals and Drug Industries.
15. Cotton Ginning Mills.
16. Cotton/Jute/Iron Scrap Bailing processes.
17. All table meat, animal rearing/farming like poultry, piggery etc.
18. Hatchery (Other than Duck hatchery).
19. Slab Polishing except Granite and Marble curring & Polishing.
20. Soap making units not operated by power driven machinery.
21. Manure mixing industry.
22. Chloral Hydrate.
23. products of Camphor.
24. Napthalene Balls.
25. Shampoos and other cosmetic items except those having ISI mark.
26. Tooth Power/paste.
27. Distilleries, Breweries.
28. Varnishes and Thinners.
29. Lime Kiln / Burnt Lime/ Hyderabad Lime.
30. Treadle operated conventional printing presses including Off-set, litho etc.
31. Power laundries.
32. Beedi/cigaratte manufacture and other tobacco products.
33. Tobacco barons/tobacco re-drying/processing.
34. Saw-mills and all types of wooden furniture manufacturing including wood based laminated products.
35. Road Metal/ Stone Crushing / Coal Pulverising/ Ready concrete wise.
36. Drinking Straws.
37. Cinematography/ Video Parlours /Theatres & Videography.
38. Book Binding/ Note Books / Exercise Note Books / Registers Ledgers/ File Pads / Office files etc.
39. Tailoring other than readymade garments.
40. Steel Structural and fabrication works other than heavy structurtals.
41. Aluminium re-rolling rods, and utensils manufacturing.
42. Stainless Steel utensils.
43. Steel re-rolling mills, rolling rods, including Tor steel Angles, Channels, Flats etc.
44. G.I. Buckets, Gamelas, Boiling pans, Trunks, Spades, Mamotees, Sholves and Bins.
45. Steel furniture except units set up in town/village with population below 1,00,000 per 1991 census.
46. Corrugated Sheets fron GP/BP shets.
47. hamilton poles and Tubular Poles.
48. Steel Gates/Grils and Bright bars.
49. Mangalore Tiles/Asbestos Products.
50. Hotels except (a) motels (b) Hoytels set up in State Government approved tourist centres of Districts.
51. X-ray clinics and clinical/ pathalogical laboratories and scanning, M.R.I. Tests.
52. Photo Studios and colour Film Laboratories.
53. All industries of mobile nature like rigs, concrete mixing plants, road metal mixing etc., including site oriented industries.
54. Servicing and/or Repairing units except xerox units (set up with institutional finance only) Auto servicing and /or repairing units or retreading industrial material testing laboratories, General Engineering Machining Workshops, common effluent Treatment plants, CAD and/ or CAM, cold storage, heat treatment, Electroplating, Galvanising, seed processing, Desk top printing.
55. Composite units set up for manufacture of an eligible item along with ineligible item.
56. Mini Steel Plants.
57. Steel Ingots/Billets.
58. Alloy Steel Castings Manufacturing units with induction furnace more than 500 KVA capacity.
59. Ferro Alloys Manufacturing.
60. Calcium Carbide and Silicon Carbide Manufacturing.
PRINCIPAL SECRETARY TO GOVERNMENT AND
COMMISSIONER FOR INDUSTRIAL PROMOTION