Andhra Pradesh Private Industrial Parks Policy (4.0) 2024-29: A Comprehensive Overview

The Government of Andhra Pradesh (GoAP) has introduced the Andhra Pradesh Policy for establishment of Private Industrial Parks with Plug and Play Industrial Infrastructure (4.0) 2024-29 to promote industrial growth, attract investment, and create employment opportunities. The policy aims to support the development of world-class industrial parks by the private sector and create a conducive environment for enterprises looking to diversify their manufacturing base and expand into new markets. This initiative also aligns with global trends where manufacturers are seeking new production bases, with India positioned as a preferred destination.

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Incentives and Subsidies for Developers

The policy provides a range of incentives and capital subsidies for developers of private industrial parks. These incentives are categorized based on the size of the park.

The capital subsidy is released in five phases, linked to project progress milestones. The initial phase involves the sanction of upfront incentives upon project approval and the provision of external infrastructure like roads, power, and water.

Eligibility Criteria

To be eligible for the incentives under this policy, developers and their proposed industrial parks must meet specific criteria.

1. For Developers :
   1. The developer must be a legal entity at the time of submitting the Detailed Project Report (DPR), such as a company, partnership, LLP, society, or trust.
   2. The lands for the industrial park must be registered in the name of the private developer to be eligible for incentives and subsidies
2. For Industrial Parks :
   1. Nano or Tiny Parks: Must cover a minimum area of less than 10 acres of contiguous land.
   2. MSME Parks: Must cover a minimum area between 10 to 100 acres of contiguous land.
   3. Large Parks: Must cover an area between 100 to 1,000 acres of contiguous land.
   4. Mega Parks: Must cover a minimum area of more than 1,000 acres of contiguous land.
   5. The park must be located outside notified urban area limits.
   6. The park should have essential plug-and-play facilities, including roads, sewerage, electrical lines, and water connections.

How to Apply for the Scheme

The application process is initiated by the developer submitting a proposal to the relevant nodal agency.

1. Nodal Agency: The nodal agency for Nano and MSME parks is the Andhra Pradesh Micro, Small & Medium Enterprises Development Corporation (APMSMEDC), while the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) handles Large and Mega Parks.
2. Expression of Interest (EoI) / Request for Proposal (RFP): The nodal agency will issue an EoI or RFP to screen and evaluate proposals.
3. Detailed Project Report (DPR): The developer must submit a DPR, which will be approved by the nodal agency or executing agency

Application and Approval Process

The policy outlines a structured process for the evaluation and approval of proposals for private industrial parks.

1. Submission: The developer submits a proposal to the designated nodal agency (APMSMEDC for small parks, APIIC for large parks).
2. Evaluation: The Private Industrial Parks Evaluation Committee, comprising representatives from various stakeholder departments, reviews the proposal.
3. Recommendation: The committee recommends proposals for approval.
4. Final Approval: The recommended proposals are submitted for approval to the Cabinet via the State Investment Promotion Committee (SIPC) and State Investment Promotion Board (SIPB).
5. Notification: Once approved, the parks will be notified under the Andhra Pradesh Industrial Corridor Development Act, 2017, integrating them into the state’s Industrial Master Plan

Important Points to Avoid Subsidy Cancellation

While the policy document doesn't explicitly list conditions for subsidy cancellation, it does emphasize certain requirements that are critical for receiving and retaining incentives.

1. Milestone Adherence: The disbursement of capital subsidy is strictly tied to achieving specific progress milestones, such as developing a certain percentage of the area or allotting plots to industrial units. Failure to meet these milestones could halt further subsidy releases.
2. Land Ownership: The incentives and subsidies are only available after the land has been legally registered in the name of the private developer.
3. Policy Compliance: The developer must adhere to all aspects of the policy and the operational guidelines, which will be issued separately

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Navigating the complexities of government subsidy schemes can be challenging. At Unique Group, we specialize in helping businesses like yours leverage these opportunities effectively. Our expert team provides comprehensive support, from understanding the intricate details of policies like the Andhra Pradesh Private Industrial Parks Policy to managing the application process. We ensure you meet all eligibility criteria, maximize your subsidy claims, and avoid common pitfalls that could lead to delays or cancellation. With Unique Group, you gain a trusted partner committed to your success, allowing you to focus on what you do best: growing your business.