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Andhra Pradesh announces new industrial policy

Saturday, 19 Jun 2010
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The Andhra Pradesh Government on 18 June 2010 announced a new industrial policy for 2010-2015 which offers a series of incentives, especially for micro, small and medium enterprises (MSMEs).

The proposed policy is expected to come into effect from 1 July 2010, which is to focus on MSMEs and food processing units aims to attract Rs15,000 crore investment annually.

Some of the features of the policy are:

  • The state government will promote industries along the gas pipeline laid in the state to take advantage of the availability of natural gas.
     
  • It has changed the definition of a mega project by enhancing the existing limit of Rs 100 crore investment to Rs 250 crore. However, any project creating employment for more than 2,000 persons is also proposed for consideration of special package of incentives under mega projects.
     
  • It offers 75 paise reimbursement of power cost for each unit. The present electricity tariff for industry is Rs 3.53 per unit, the lowest compared to other industrially developed states.
     
  • The state government will provide Rs 100 crore every year for promotion of industrial infrastructure for micro and small enterprises.
     
  • The state government proposes to develop industrial corridors in various parts of the State for sustainable and equitable industrial development.
     
  • About 25 per cent of VAT (value added tax) reimbursement for large and medium enterprises, 50 per cent VAT reimbursement for small enterprises, five per cent additional subsidy to women entrepreneurs, 10 per cent of plots to women entrepreneurs in the new industrial estates, special incentives for entrepreneurs belonging to scheduled castes and scheduled tribes.
     
  • Industries Department has taken initiative to simplify the procedures for allotment of scarce raw materials like coal, alcohol etc for timely and easy allotment of these materials on the recommendation of the Industries Department.
     
  • To encourage environment friendly technologies, 25 per cent subsidy will be provided on specific cleaner production measures adopted in new industries subject to a maximum of Rs five lakhs.

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