Andhra Pradesh Industrial Policy (2020-2023)
Andhra Pradesh is a leading destination for industrial investment in India. The state boasts of the second longest coastline within the country and 6 operational ports. Additionally, Andhra Pradesh is blessed with abundant mineral resources, agricultural base and surplus electricity. The state has a good industrial base in pharma, electronics, food processing, textiles, and automotive set up over several decades.
The Government of Andhra Pradesh intends to provide the best-in-class infrastructure, zero hassle setup, skilled labor availability and end to end hand holding support for units to provide an industry- friendly environment at par with International standards. In addition, the focus of the Government is to reduce risk of doing business to the extent possible. In line with this, one of the key highlights of this policy is the proposal to setup a multi¬faceted business enablement center:"YSR AP One" which will be a one stop shop offering business support services.
Objectives
- To create employment for the youth of the state
- To match the national average in industrial GVA per capita
- To plan balanced growth across regions and communities>
- To achieve environmentally sustainable growth
Fiscal Incentives - Project Category Definition
Micro, Small and Medium Enterprise (MSME): GoAP follows the MSME definition laid out by the Government of India as per the MSMED Act 2006 from time to time. The definition updated based on the notification released on lst June 2020 is as follows
|
Classification |
Criteria |
|
Micro |
Investment in Plant and Machinery or Equipment: Not more than Rs.1 crore and Annual Turnover: not more than Rs. 5 crores |
|
Small |
Investment in Plant and Machinery or Equipment: Not more than Rs.10 crore and Annual Turnover: not more than Rs. 50 crores |
|
Medium |
Investment in Plant and Machinery or Equipment: Not more than Rs.50 crore and Annual Turnover: not more than Rs. 250 crores |
Large Industrial Project - A large Project is a unit which has investment and turnover threshholds more than the Medium enterprises as described in the MSMED Act,2006.
Mega Industrial Project - Projects with direct employment generation of 2,000 will be accorded a mega-industry status.
The Government may extend tailor-made benefits to mega projects to suit particular investment requirements on case to case basis based on the gestation period, pioneering nature, locational aspects, technology, project's importance to the state's industrial growth and its ability to generate large scale employment for people, overall economic impact or revenues for the state.
The incentives mentioned in this section are applicable to General Industries as well as for Food Processing Industries
Incentives for Micro and Small Enterprises
- Reimbursementof100%stampdutyandTransferdutypaidbytheindustryonpurchaseof land meant for Industrial use.
- Reimbursement of 100% stamp duty for lease of land/shed/buildings, mortgages and hypothecations
- GoAP is committed to supplying uninterrupted 24x7 quality power to all industries operating in the state
Incentives for Medium Enterprises, Large and Mega Industries
- GoAP is committed to supplying uninterrupted 24x7 quality power to all industries operating in the state
- 100% Reimbursement of net SGST accrued to the State for 5 years or 100% fixed capital investment, whichever is lower, from the date of commencement of commercial production, linked to employment
- GoAP places significant thrust on adoption of sustainable green measures across industries in the state. Common facilities like Waste water treatment, Continuous Emission Monitoring System (CEMS) etc. would be setup in new APIIC Industrial parks
|
Direct Employment generated |
SGST reimbursement |
|
<1000 |
50% |
|
1000 to 2000 |
75% |
|
2000+ |
100% |
