The Andhra Pradesh government has announced a Special Economic Zone (SEZ) policy to provide a comprehensive framework for developing and operating SEZs in the state. The policy would have overarching power over the existing policies in the state. The provisions of the policy are briefly listed below:

·          A single-window clearance for all state government agencies would be available at the SEZ. Industries using empanelled private-sector inspection agencies would be allowed to go in for self-certification.

·          The policy provides exemption to small-scale and infotech industries from registration, 50 per cent exemption on stamp duty and registration fee on transfer of land for industrial use and full exemption from sales tax, VAT, luxury tax and state duties on transactions within the SEZ. Further, the policy provides full exemption on stamp duty and registration fee for loan agreements, land deeds, mortgages and hypothecation deeds by SEZ units for assets in favour of banks or financial institutions.

·          The policy has also proposed waiver of sales tax and other state taxes on inputs (goods and services) for SEZ units from off-zone suppliers within the state.

·          The labour framework for SEZs envisages notifying 100 per cent export-oriented units as public utility services and providing exemptions from maintenance of registers and records and setting working hours, under Sections 18 and 13, of the Minimum Wages Act, 1948. The Trade Union Act, 1926, is also to be suitably amended to exclude outsiders from becoming office-bearers of a trade union.

·          Necessary exemptions to be made in the Andhra Pradesh Shops and Establishments Act, 1988, to make 365 day a year and 24 hours per day working possible, provided suitable overtime allowance is paid.

·          The policy states that the AP government would exempt power for SEZ units from electricity duty and tax. While captive power generation would be allowed, the government is yet to take a view on whether SEZ units would be exempt from paying wheeling charges and grid protection charges on captive power.

·          A proposal has been mooted for a no-industrial development zone around the SEZs' periphery for developing a green belt. This step has been proposed to avoid unplanned development of the region.

·          The state agency, Andhra Pradesh Industrial Infrastructure Corporation (APIIC) would function as the interim development commissionerate for the SEZs. The state and central government would designate a development commissioner for each SEZ for all investments by SEZ units for the specific SEZ.