Industrial Development Policy Of Andhra Pradesh

Updated on March 20, 2022, 7:19 a.m.

Andhra Pradesh has embarked upon a mission, which is, to be at the leader of industrial development in the country by the year 2030. The Government of Andhra Pradesh is aware that fulfilling this mission needs not only ideas and dreams but also solid, genuine planning steered by glowing policy directions.
Andhra Pradesh is a mineral-rich state, ranked second in India, containing variety of mineral wealth. There is still underutilised mineral wealth and other resources throwing up many opportunities for the new entrepreneurs in Andhra Pradesh.

VISION of Andhra Pradesh Industrial Policy:

Under Vision 2030, it is proposed to position Andhra Pradesh as a leading state in manufacturing to empower value driven growth, local job creation and market oriented products. The vision to achieve a justified economic transformation can be realised only with an architecturally strong, technically efficient and economically comprehensive manufacturing sector.

MISSION of Andhra Pradesh Industrial Policy:

We have adversely recognised the challenges faced by the industrial sector; and in reply to these challenges drawn out the theme based strategic roadmaps for growth and development of Andhra Pradesh. Further, strategy specific and action oriented KPIs (Key Performance Indicators) to be adopted in the longer run to achieve the goals.

COVERAGE of Andhra Pradesh Industrial Policy:

The Industrial Development Policy introduced by the Government of Andhra Pradesh covers the Units and the Business enterprises that started working on or before 1^st April 2020.

OBJECTIVES of Andhra Pradesh Industrial Policy:

The objectives of the Industrial Development Policy introduced by the Government of Andhra Pradesh are given below as follows:

To create employment for the youth of the state and make them self-reliant.
Reduce the cost and time of setting up the companies in Andhra Pradesh.
Successfully match the national average in Industrial Gross Value Additions GVA.
To effectively plan the balanced growth across various regions and communities.
To have an effective sustained and balanced growth in Andhra Pradesh.
Developing the infrastructure and inspire environmentally unrelenting growth.
Equal focus on existing units and prospective investors.
Stressing on asset creation, infrastructure and skill development.
Promoting the special support for the socio-economic groups like the SC/ST and minority groups in Andhra Pradesh.

FEATURES of Andhra Pradesh Industrial Policy:

The features of the Industrial Development Policy introduced by the Government of Andhra Pradesh are as follows:

To develop and supplement mega industrial parks with common facilities fine-tuned to meet the target.
All facilities to be cyclone proof and thunder proof.
Offer plug and play facility to MSME, and other industrial houses, ready to build sheds, warehouses, along with basic facilities in Andhra Pradesh.
Establish the incubation centres to encourage the start-ups in the hi-tech industries in Andhra Pradesh.
Replace the existing lease and buy options in APIIC Land Policy, with the existing lease + buy models with low upfront payments and options to purchase land after 10 years of commencing the operation.
Develop and maintain the industrial parks in an environmentally friendly manner.
Encouraging the process of water and power availability at the door step of the business houses to avoid any hassles in smooth functioning of the business.
Conducting regular district level industrial meetings under the district collector to get rid of differences, and grievances.
Set up the regular State Level Bankers Committee also known as the Industrial Sub Committee to deal with issues relating to loan disbursals.
To develop a wonderful digital platform, to match the skilled labour in Andhra Pradesh with activities fulfilling the need of the clientele.
Giving importance to women entrepreneurs in Andhra Pradesh belonging to the SC/ST and the backward classes.
Encourage the strong development of the road, rail, airways and port facilities.
Stressed on supporting all the units across the entire value chain.

DOCUMENTS required to apply for loan under Andhra Pradesh Industrial Policy:

The documents required for becoming a part of the Industrial Development Policy introduced by the Government of Andhra Pradesh are:

Civil Engineer Certificate.
Power Release Certificate.
Term loan sanction letter.
Land agreement.
Sale Deed.
Board of Directors documents and certificates.
DIC (District Industries Centre) showing machinery listed as per guidelines.
Bills and Invoices.
Location change documents.
Computed cost of land, machinery and buildings (Projections).
Interest Paid Certificates.
Land Conversion and Mortgage Documents.
Bank No Objection Certificates.
Shareholders information documents and certificates.

ELIGIBILITY:

Companies set up before 1^stApril 2020 is eligible under this scheme.
Machinery and factory establishment must not be on lease.
25% enhancement in the Investment and installed capacity/turnover for the Expansion Projects.
Land cost and conversion details as certified by the government of Andhra Pradesh.
Machinery list as per the APIIC. (Andhra Pradesh Industrial Incentive Scheme).
Approved Area Certificate by Town planning team.
Details of the building of the enterprises like Overhead Tanks, Office Area, Production Areas, Sheds, Warehouses, Canteen, Compound Walls and Effluent Treatment Facilities.
Certificate showing the management reshuffles in the past 3 years.
Detail of Mergers, Acquisitions and Incorporations.
Sales deed must be in the name of the enterprise.
Show detail about the additional ventures and line of business.
Enterprise must be inspected by the IPO (Industrial Promotions Officer) designated by the Government of Andhra Pradesh.
Details about break in functioning and production of the enterprises.

PROCEDURE FOR APPLYING:

For establishing any good business there is a procedure introduced by the Government of Andhra Pradesh is given below as follows:

Entrepreneur has to fill the Memorandum form with the concerned District Industries centres of the District and obtain the acknowledgement.
For establishing a huge enterprise, the person will have to file the Industrial Entrepreneur Memorandum for assistance.
You also need the Industrial License certificate to start business.
The entrepreneur must set up the Industry in APIIC land or private land or government land obtained as per guidelines of Government of Andhra Pradesh.
After submitting the sale deed and the agreements, the entrepreneur will have to apply for all the clearance from the competent authorities through the single desk portal facility at www.apindustries.gov.in.
After taking all certificates the entrepreneur will have to implement the sale deed with APIIC limited and file all the claim application within 6 months.
Proposal is studied by the District Industries Centre and approved by the technical team.

LIST OF INELIGIBLE INDUSTRIES:

The Government of Andhra Pradesh has notified some industries that cannot take the benefits of the Industrial Policy and these industries are:

Animal rearing industries like poultry.
Various hatcheries.
Alcohol based industries.
Varnishes and thinners.
Tobacco based firms.
Shampoo and other cosmetic units.
Mining and quarrying units.
Rock sand, Stone crushing and pulverising units.
Video parlours and cinematography industries.
Clinical and pathological laboratories and scanning MRI Tests.
Cold storage and seed processing units.
Fire crackers and manufacturing enterprises.
Steel industries and integrated steel plants.

GUIDING PRINCIPLES OF NEW INDUSTRIAL POLICY:

The guiding principles of the new industrial policy are:

Equal focus on prevailing and new industries in Andhra Pradesh.
Stressing on the assets creation in the arena of skill and infrastructure development.
Reduce the cost and time of setting up the industries.
Concentrating on mitigating the risk to address issues like financing, marketing, improvements and operations.

Andhra Pradesh Government is helping the entrepreneur on the legal and regulatory requirement, and be a partner through the business cycles offering care at every stage to ensure the business remains compliant and make India self reliant.

Industrial Development Policy Of Andhra Pradesh

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