ANDHRA PRADESH

LAND  Lease time increased to 99 years1

ACQUS  defence, rural infrastructure, affordable housing, industrial corridors or industrial projects are exempted from
ITION social impact assessment, consent and special provision to safeguard food security 2
LAW  Online portal of APIIC is made for identification (an online database is made details of land available) and
submission of application for land allotment.3(Single Window System)
LABO  Threshold limits of applicability of the contract labour (Regulation and Abolition) Act and Factories Act, 1948 is
UR increased.
LAWS  Maximum limit of number of workers where lockout/closure/retrenchment without government permission
increased from 100 to 300
 Defined “go slow” as illegal activity
MANU  Govt. Land Bank with framework for (i)Inventory of public/pooled/ acquired lands and (ii) Land Information
FACTU System
RING/  Constitution of State Investment Promotion Board; Andhra Pradesh State Skill Development Corporation(to
INDUS develop Manpower Information System)
TRIAL  Following support services will be provided to potential international investors by select country specific desks: •
POLIC Provide bespoke investor facilitation • Handholding services in the form of local information and expertise •
Y Comprehensive portal with business opportunity related information
 The state intends to add around 16,484 MW in the next 5 years for 24 x 7 supply and also reimbursement
 GoAP shall handhold setting up of world-class incubation centres to provide much needed thrust to promote
startups and cultivate innovative ideas.
 GoAP will set up Industrial Area Development Authorities under the aegis of article 243 Q of the constitution
 Vishakhapatman – Chennai Industrial Corridor 4; Chennai - Banglore Iindustrial Corridor 5; Petroleum, Chemicals
& Petrochemicals Investment Region6
 National Investment and Manufacturing Zones at Chittoor and Prakasam
 Information Technology Investment Regions - Visakhapatnam and Chittoor
 Smart Industrial Township (SIT) at various districts with all utilities.
 4 New Special Economic Zones and Industrial Parks
INCEN Fiscal See Annexure I
TIVES
Compliance  Online receipt of Application under various labour Laws; Online Time Bound Registration; online
Submission of singular Return7
 Online Inspection system of Labour Department; Online Inspection Portal8
 E-Registration for State taxes (VAT, CST, Property Tax, Entertainment Tax)
 Online payment for state taxes
 Centralized helpline for assistance in preparing and filing returns
 Dealer service centers to assist in e-filing
 Online registration for environment/pollution related clearance
 Green category industries exempt from PCB clearances
 Downloadable and verifiable Approval Certificate for environmental clearances
 Self-certification/ third party certification for auto-renewal of consent to establish
 Self-certification for labour related approvals/ clearances for all industries
 Synchronized/joint inspection under all major applicable acts
 Online system for faster allocation of inspectors to conduct inspections

Direct  Institutional arrangements for Single window clearances through State & District-level
Benefit  Inspections based on computerized risk assessment
 Inspection reports available within 72 hour
 Industrial land availability accessible via online GIS System
 Framework to categorise land parcels based on nature of industry
 Digitized land records available at Sub-Registrar’s office
OTHER  GoAP shall reserve lands for MSME in industrial parks in general and specifically for women in
addition to reimbursements and rebate on the land related expenses.

1
APIIC INDUSTRIAL PARKS ALLOTMENT REGULATIONS 2015
2
https://www.downtoearth.org.in/news/agriculture/-state-govts-acquire-land-by-subverting-rights-and-bending-the-law--62463
3
Govt. of Andhra Pradesh, Industrial Development Policy 2015-2020.
4
Visakhapatnam (Phase I), Srikalahasti-Yerpedu (Phase I), Kakinada (Phase II), Gannavaram-Kankipadu (Phase II)
5
Krishnapatnam in Nellore Dist.
6
Visakhapatnam, Nakkapalli and Kakinada
7
The Andhra Pradesh (Issuance of Integrated Registration and furnishing of Combined Returns under various Labour Laws by
certain establishments) Act, 2015
8
Vide G.O. Ms, No. 27 Dated 31.05.2016
  1 Day VAT & Professional Tax Registration Certificate
 7 -15 Days Construction permit/building permission approval
 15 Days Electricity connection from date of approval
 60 Days VAT refund direct to bank account
 21 Days SLA for clearances under Single Window
ANNEXURE – I
SECTOR WISE FISCAL INCENTIVES

Sector VAT/CST/SGST Subsidy Duty Others

Capital Interest Power

Agro & 100% 2 7% per INR 1.50 50% of project cost for
Food reimbursement of 5% of annum on per unit setting up mega food parks, limited
Processing net for 5 years project term loan for food to INR 50 crore
For cost 25% for fixed processin 50% of project cost of
medium units – 75% of new/ capital g for 5 setting up integrated food parks, up
of net for 7 years upgraded investments years to INR 20 crore
equipmen , for 5 years VAT/CST/GST
t reimbursement for integrated food
5 parks during construction period for
0% for 2 years, up to INR 2 crore
setting up
primary
processin
g centers

Aerospace 100%  100% exemption on entry tax

and Defence reimbursement on on plant & machinery and
all input material for capital goods for 3 years
aircrafts  100% subsidy (not exceeding
₹6 crore) on basic
infrastructure
 10% subsidy on R&D
investments in defence above
₹10 crore
 Patent Cost (75% upto max. of
₹25 lakh) and Quality
Certification (50% of all
charges upto max. of ₹5 lakh)

Automobile  100% CST 50% of  No entry  75% reimbursement of patent

and Auto reimbursement fixed tax and cost subject to a maximum of
Components for 10 years capital octroi ₹25 lakh
 Gross investme duties;  50% reimbursement of quality
VAT/SGST nt in  reimburse certification subject to a
reimbursement building ment of maximum of ₹5 lakh for
on sale of and stamp MSME units
finished goods common duty,
for 20 years infrastruc transfer
 Concessional ture duty
VAT/SGST (maximu
rates on input & m of ₹20
capital goods @ crore)
5%, and
reimbursement
of state
VAT/SGST of
input credit for
20 years
 75%
reimbursement
of Gross
VAT/SGST for
 10 years

Electronics 100% tax 10% of 5% for a 50% to  100%  25% rebate on land cost limited
and IT reimbursement for a total period of 7 micro, reimburse to ₹10 lakh per acre
period of 10 years investme years, 40% to ment on  20% limited to ₹20 lakh for
nt upto subject to a small, the first MSME, and additional 5%
₹5 crore maximum 25% to transactio investment subsidy, for
of ₹1 crore medium, n and 50% women/SC/ST Entrepreneurs
per annum and 10% on the
per unit to large- second
scale transactio
industry, n
limited to  100%
₹50 lakh exemption
for a for 5 years
period of on
5 years electronic
duty
Life 3% per reimburse  Contribution of up to ₹25 lakh
Sciences annum on ment of for biotech-related projects of
term loans ₹1.50 per public importance
towards unit for 5  Financial assistance up to ₹25
purchase of years lakh per project per annum
capital Grant of towards covering scientist and
equipment 50% of technician cost
necessary project  Financial support not exceeding
for cost of ₹5 lakh for a period of 6
technology setting up months, limited to 10
upgradation food researchers per annum
, for a parks  Financial assistance for Patent
period of 5 Registration, limited to 75% of
years the cost subject to a maximum
of ₹25 lakh

Textiles and Refund for Upto ₹10 To be ₹1/unit 100%  Upto 50% of expenditure
Apparel purchases of crore for capped at for reimbursement incurred for setting up common
intermediate standalon 12.5% per Spinning on land lease infrastructure in Textile and
product/raw material e annum, and for setting up Apparel Parks, upto maximum
garmentin after taking Modern Textile and of ₹15 crore/₹30 crore for
g and into Ginning Apparel Parks Composite Park
apparel account and  Upto 50% financial assistance
units assistance ₹1.50/uni for investment in technology,
from all t for limited to ₹25 lakh per
sources others process/product
Micro, 100% Investme 100%  Seed capital assistance to First
Small and reimbursement for a nt reimbursement Generation Entrepreneurs to
Medium period of 5 years for subsidy on Stamp-Duty set-up Micro Enterprises
Enterprises micro and small on fixed within 6 @10% of the Machinery cost.
industries. capital months on
75 % reimbursement investme certain
for a 7-year period nt for purchase or
for medium micro and lease of land
industries small for industrial
enterprise use.
s up to
INR 20
lakhs.

REFERENCES:
 http://apedb.gov.in/index.html (Andhra Pradesh Economic Development Council)
 PARTNERWITH SUNRISE ANDHRA PRADESH Investor Handbook – Ease of Doing Business
 White Paper on Industries in Andhra Pradesh during the period June 2014 – March 2019Department of Industries &
Commerce July 2019