Industrial venture in AP

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How to start an Industrial Venture in Andhra Pradesh

Each step dealt in detail under relevant menu header

I. Obtain information on investment opportunities the State of Andhra Pradesh offers in

Manufacturing & Infrastructure sectors

II. The options for Foreign Investors to

decide on entry strategy

As a Foreign Company

Liaison Office
Branch Office
Project Office

As an Indian Company

Joint Venture with an Indian Partner

100% Subsidiary

III. Formation of an Indian Company

The options

· Private Limited Company

· Public Limited Company

The procedure

Obtain Name approval from the Registrar of Companies (ROC)

Submit Memorandum and Articles of Association for approval to the ROC

Obtain Certificate of Incorporation from the ROC

Obtain Certificate of Commencement of Business (for Public Limited Companies)

IV. Obtain Project clearance

Large / Medium Industries (Under the purview of Central Government)

Apply for Industrial License where License is compulsory

- for 14 specified items

- for items reserved for Small Scale Industries (SSI) sector
- for units located within 25 Kms of cities having population of 1 million.
(Hyderabad & Visakhapatnam in Andhra Pradesh)

· Industrial Entrepreneurs Memorandum (IEM) for delicenced industries

· Permission for 100% EOU
· Approval for Foreign Technical Collaboration

Small Scale / Ancillary (Under the purview of State Government)

Provisional Registration from District Industries Centre

Note: In respect of Foreign Direct Investment (FDI), the RBI / FIPB issues a composite
clearance for Foreign Investment along with IL / IEM

V. Obtain Approval for Foreign Investment

Automatic Route for equity participation thro Reserve Bank of India (RBI)

Up to 50% for 3 activities related to mining industry

Up to 51% for 48 priority industries

Up to 74% for 9 industries

Up to 100% for NRIs and OCBs in the specified list of high priority industries

Foreign Investment Promotion Board (FIPB) Route

(Ministry of Industry, Govt. of India, Udyog Bhavan,New Delhi)

· For specified industries listed under the Automatic route when equity is > 50% / 51%/ 74%
· For other industries (upto any percentage)

Ministry of Industry, Govt.of India

· Small Scale Sector

· 100% EOUs / Export Processing Zone (EPZ) Units

VI. Project Implementation

• Land
• Factory/Buildings/Machinery
• Power
• Water
• Environment & Pollution
• Raw Material
Land
1. Land

Private Land

Self purchase / Acquisition by Govt / Acquisition by Andhra Pradesh Industrial

Infrastructure Corporation Ltd.- APIIC

A.P Govt. Land

Alienation by Government

Plot in Industrial Development Area (IDA)/IE/Industrial Park

Allotment by APIIC

Approvals required for location

Environmental clearance from Govt. of India (Wherever required)

First No Objection Certificate(NOC) from Andhra Pradesh Pollution Control

Board(APPCB)*

Factories Approval*

Town & Country Planning Approval*

Local Body Approval*

Change of Land Use* (Dist Collector / Govt. in Municipal Administration & Urban
Development Dept. through Director - Town and Country Planning/ Urban
Development Authority)

Exemption from Urban Land Ceiling

Land Acquisition / Alienation

When a private land is taken from its owner by payment of compensation it is called
Land Acquisition.

When any Government land is granted by the Government, on application to any

Institution or organization on payment of market value, it is called Land Alienation.

Acquisition of land is governed by Land Acquisition Act, 1894 AD whereas Alienation

of Government land is governed by executive instructions of Government issued from
time to time.

Application has to be made in the prescribed form for alienation of land. A plan is to
be enclosed, duly signed, to the application form along with condition of alienation.
Willingness to pay marker value to be furnished.

The application in quadruplicate has to be submitted to the Mandal Revenue Officer,

who will issue a notification inviting claims and objections of general public. When no
objections are received, the Mandal Revenue Officer will forward the application to
the Revenue Divisional Officer.

The Revenue Divisional Officer, in turn, will submit the cases with his
recommendation or otherwise to the District Collector, if necessary after inspection of
site, who in turn will submit the proposals to Commissioner of Land Revenue.

According to delegation of powers, Commissioner of Land Revenue can sanction

alienation upto a certain limit and over and above the said ceiling, Government is
competent to consider the cases.

For further details, contact

Commissioner of Land Revenue
Nampally Station Road
Hyderabad 500 002
Tel: 91-040-3201371
Fax: 91-040-3202293

Procedure for allotment of sheds / plots in the Govt. owned Industrial Development
Areas

An undertaking of the Government of Andhra Pradesh, the Andhra Pradesh Industrial

Infrastructure Corporation was set up in 1973. The Corporation establishes Industrial
Estates / Industrial Development Areas equipped with all infrastructure facilities like
developed land, power, water resources, sheds, roads, communications and housing
for the Development of Large, Medium & Small Scale Industries at potential growth
centres in the State.

The general procedure laid down for allotment of a plot / shed to the entrepreneurs,
subject to availability is, the entrepreneur should submit an application from in the
prescribed form in duplicate to APIIC Head Office at Hyderabad or Regional Offices
located across the State along with

i. An account payee / crossed DD in favour of APIIC Ltd., for Rs. 25000/- per acre of
land and Rs.8000/- for shed
ii. Copy of Industrial Clearance
iii. Project report
iv. Certificate of Incorporation

Applications received in complete shape and all the enclosures shall be processed and
the allotment of plot / shed shall be effected by the APIIC.

For further details, contact

Chairman & Managing Director
Andhra Pradesh Industrial Infrastructure Corprn.Ltd
6th Floor, Parishrama Bhawan
Hyderabad 500 029
Tel: 91-040-237622
Fax: 91-040-240205
Factory
Factory / Building and Machinery layout plans approval

Department of Factories

The standard norms insisted upon by the Factories Department are to ensure safety,
good amenities for the workmen within the factory, environmental safety in the
neighborhood and all preventive measures against likely hazards.

The Department

i. approves plans of the proposed factories before they start civil works and
ii. grants licenses for carrying on the manufacturing process in the factory. The
license will be issued only after the factory starts working but the applications should
be made before starting the production.

Procedure for Application:

1. Every application shall be in Form No.1

2. Site plan in triplicate, drawn to a metric scale of 1:400
3. Detailed plans of all the constructions and installations drawn to a metric scale of
1:100
4. Plans have to be prepared and signed by a qualified Engineer
5. All the installations and constructions within the premises shall be shown in the
site plan as well as the detailed plan
6. The detailed plan shall consist of Ground plans, cross sections drawn through all
the critical areas and elevations
7. The plans shall be in blueprint duly signed by the applicant
8. A brief note of the manufacturing process shall be enclosed
9. If it is a hazardous Industry, the details of all the hazardous processes, the
maximum quantity of chemicals stored in the premises and Data Sheets of all
chemicals, safety report and an onsite emergency plan shall be enclosed to the
application along with a No Objection Certificate from the Andhra Pradesh Pollution
Control Board
10. Clearance from the Explosives Authorities is necessary wherever materials sold
attracting the handled / processed.

Standard norms for the Building and installation of Machinery

The minimum height of the building in which the machinery / equipment is to be

installed should not be less than 4.27 m (14 feet) and Office Rooms, Godowns, Stores
etc., should not be less than 3.65 m (12 feet)

There should be a minimum clear moving space of 0.9 mts. (3 feet) from machine to
machine and machine to walls.

Ridge roof ventilator with an opening of 0.9 mts (3 feet) width and 0.6 mts (2 feet)
height shall be provided over the roofing of all the work halls. In case of north light
glazing an air gap of at least 0.3 mts (1 foot) should be provided between top of the
glazing and the roof sheeting. Also the north light glazing should invariably face
North.

The building should have masonry walls or if A.C.sheet or metal sheets are used as
cladding, they should be fixed in the form of louvers. Vertical cladding is not
permissible.

Sizes of doors and windows should not be less than 1.2 x 2.1 mts. (3’7’) and 0.9 x 1.5
mts (3’ x 5’) respectively. Ventilators should be 0.9 x 0.45 mts. (3’ x 1 ½’). Doors and
windows should be so spaced that they should not be located at a distance of more
than 3 mts. (10 feet) from centre to centre. All windows should be fixed with their
lower sill level at 0.9 mts (3 feet) or less from the floor level. All doors should have
shutters opening outwards except when they are of sliding or rolling type.

Where any building is 6 mts (20 feet) or more in height, a second set of windows
should be provided over each door and window. These second set of windows should
not be less than 1.2 x 0.9 mts. (4’ x 3’) in size.

There shall be at least 4.5 mts. (15 feet) clear space between shed to shed or shed to
building. Further a clear space of 3 mts (10 feet) should be maintained between the
building and adjoining compound wall.

Verandah will be permitted on one side only. Width of the verandah should not
exceed 3 mts. (10 feet) and the height of the verandah at the eaves not less than
3.65 mts. (12 feet). No machines, equipment shall be installed in the verandah.
Verandah shall not be used as a place of storage which could block the windows etc.

Toilets / Urinals, separate for men and women, should be provided away from the
main work place. The number of Toilets / Urinals proposed to be provided shall be
shown in the site plan and their number shall be not less than the number stipulated
under A.P.Factory Rules. Generally one toiled seat for every 20 workers to be
employed.

A minimum of two exits shall be provided to all the manufacturing buildings. In the
case of manufacturing buildings / god owns / stores, good number of exits should be
provided in such a manner to ensure that in case of emergency a person need not
travel a distance of more than 30 mts to get out of the building.

Every factory shall be constructed with pucca masonry walls of brick, stone or other
suitable material. The roofing materials used shall be of non-heat radiating and fire
resistant type. Any other special requirement in respect of the building specific to the
manufacturing process should be implemented.

Mechanical exhaust arrangements, dust collection system etc., should be provided

wherever necessary.

Factory employing 30 women workers and above shall provide a crèche and the
approval of plans shall be obtained.

Factory employing 150 workers and above shall provide a rest room and approval of
plans shall be obtained.

Factory employing 250 workers and above shall provide a canteen and the approval
of plans shall be obtained.

Factory employing 500 and above workers shall provide an ambulance room and the
approval of plans shall be obtained.

Chemical factories shall provide mess rooms - change rooms

For further details, contact

Chief Inspector of Factories

O/o the Director of Factories
1-10-17, Ashok Nagar
Hyderabad 500 020.
Andhra Pradesh
Tel: 91-040-7637643

Department of Town & Country Planning

The main function of the department is to ensure orderly development as per Master
Plans (GTP Schemes) and Regional Plans and to regulate developments as per the
stipulated Rules laid down in the Acts.

The approval of Director of Town & Country Planning is necessary for industries in
Panchayati areas, Municipal areas which do not fall in sanctioned general town
planning schemes and agricultural areas.

If an industry is proposed to be located in a municipal area covered by sanctioned

Master Plan or in an area where Industrial, Commercial, Residential and Agriculture
proposals are there in a area is not designated as an industrial area, the concerned
Local Authority has to forward the proposals to Director of Town and Country
Planning for expert opinion, since it involves change of land use to industrial use and
it also requires approval of Government for effecting the changes. It is upto the
Government to accept or reject the change of land use depending upon the
development around it.

Applications should be made in the prescribed form after payment of required

building and layout fees to the concerned Gram Panchayat or Municipality.

Guidelines :

1. Design showing detailed plans, elevations and sections of the proposed factory
sheds, the location and the type of machinery proposed to be installed in the
particular shed with Horse Power, drawn to a scale 1:100 or 1”-8’ indicating correct
plinth area.

2. Site plan drawn to a scale of 1”-66’ or 1”-33’, showing the length and breadth of
the site and also the location of the road which gives direct access to the site,
indicating the width of road. The access to the site is a must for approval of any type
of Industry and it should be of a minimum width of 12 Mts. Or 40’-0”. The site plan
should also indicate front, rear and side set backs clearly along with total extent of
site purchases for establishing the industry.

3. Topo detailed plan, drawn to a scale, showing the development around the
proposed site within a radius of 400 mtrs.

4. Village plan indicating the site with the Survey Nos. in which the industry is
proposed.

5. Ownership documents of the site and if the site is taken on lease the copy of
Registered lease deed is to be enclosed.
6. In there are any residential developments near or around the site within a radius of
400 mtrs., the applicant has to furnish No Objection Certificate from the residents.

7. If there are public institutions or hospitals near the site, the applicant has to
furnish No Objection Certificate from the concerned authorities.

8. Approval or consent letter from the Andhra Pradesh Pollution Control Board is
absolutely necessary for the location of industry. Hence, every applicant has to
enclose a clearance obtained from the A.P. Pollution Control Board to the application.

9. The applicant has to pay buildings permit fee and layout fees to the Panchayat as
per the rate of Rs.2/- per 10 sq.mtrs. for the entire extent of site purchased.

10. The applicant shall be required to submit at least 3 sets of plans to be filed with
each of the Agencies which has to approve the plans statutorily under the relevant
acts.

11. In respect of polluting industries a visit has to be arranged for inspection of the
actual site, clearing the projects based only on submitted applications will not give a
distinct picture on the ground. Hence, assured access, linkages, survey details and
land use has to be checked-up at the site.

12. Project Report giving brief description of the industry

13. The installation shall be submitted through the concerned Gram Panchayat /
Municipality in the prescribed proforma enclosed.

14. In case of polluting industries, the No Objection Certificate from Andhra Pradesh
Pollution Control Board shall be obtained.

Important Specification:

Buildings

i. In case of installations in existing buildings the proposals should satisfy as per the
stipulated Rules laid down in the Acts.
ii. The proposals should be in conformity with the land use (in case of existing
building)

Plots
In case of Industrial plots the minimum size required is as per the approved
industrial estate layouts or layouts approved by the Director or Town and Country
Planning from time to time as per the Master Plans sanctioned as per the stipulated
Rules laid down in the Acts.

For further details, contact

Director of Town and Country Planning
640, A.C.Guards
Saifabad
Hyderabad 500 004
Tel:91-040-3393151, 3316944, 3393256

2: Building
Permission is given by the Local Body (Gram Panchayat / Municipality) with Technical
Approval of Factories Department
· Town & Country Planning Department
· Urban Development Authority
· Food / Drugs Clearance (Wherever applicable)

3: Plant & Machinery

· Approval of layout from Dept.of Factories / Boilers*

Power
Power

· Seek Power Feasibility from Andhra Pradesh State Electricity Board (APSEB)*

· Seek approval of APSEB for captive generation, if planned

· Enter into Agreement with an Independent Power Producer (IPP) in case of going in
for purchase of power from private generating stations

* These clearances / approvals can be obtained through the ‘Single Window’ services
being operated by the Commissionerate of Industries by filing a Common Application
Form (CAF). Ordinarily the approvals are secured within a period of four weeks.

Power supply

The prospective entrepreneurs have to register their requisition for HT supply in

prescribed form along with data sheet pertaining to industrial category and
application fee, in the office of the territorial divisional (operation), APSE Board. The
formal feasibility certificate will be issued with in 4 weeks of the registration on
sanction of the scheme the concerned Divisional Engineer (Operation) will issue
notice for payment of Development charges and service line charges. The consumer
has to pay these charges and also enter into an agreement in the prescribed form to
enable the Board to take up the work of Service line etc. If so required the consumer
will be permitted to execute the works by a licensed contractor on turn-key basis
subject to the condition prescribed by the Board. After completion of the works, the
consumer has to fulfill the following formalities for release of power supply.

i. The ICD should be paid in full

ii. The approval of CEIG under rule 63 of IE rules is to furnished
iii. NOC from A.P.Control Board and all other statutory requirements of Licenses /
Permissions.

The power supply will be released within in 15 days after fulfilling the above
formalities.

General Information:

Computation of various charges

I. LT Industrial Services: or part three of C.C.

a. Service line charges

Rs.1500/- per HP of load contracted + Rs.99,330/- per KM for LT three phase four
wire line where extension is necessary

b. Service connection charges: Nil

The consumer has to provided the weather proof service wires from Over Head line
terminated out side his premises.

c. Consumption Deposit:

The consumer has to pay initial consumption deposit calculated Rs.200/- KW of

contracted load

d. Installation of LT capacitors:

The prospective LT consumers being induction motors have to install LT Shunt

Capacitors of specified ratings failing which power supply will be released.

II. HT Industrial Services

a. The voltage at which supply is to be availed by HT consumers shall be as follows

Contracted Demand (KVA) Voltage

1. For contacted demand from 70 to1500 KVA 11,000 Volts

2. For contracted demand from 1501 to 5000 KVA 33,000 Volts
3. For contracted demand for 5001 and above 1,32,000 Volts or 2,20,000 volts may be
decided by the Board

b. Service line charges

Load charges (per KVA or CMD) Line charges (per KM)

1. 11 KV Rs.1500/- Rs.1,06,800/-
2. 33 KV Rs.1500/- Rs.2,04,000/-
3. 132 KV Rs.1500/- Estimate cost
4. 220 KV Rs.1500/- Estimate cost

c. Consumption Deposit

The HT consumer, shall in general, deposit with the Board a sum equivalent to
estimated three months charges in cash.

In the case of new industrial consumers, the Board may accept a sum equivalent to
two months estimated consumption charges consumption deposit for a period of
three years from the date of first release of supply of electricity. On completion of
initial three year period, consumption deposit for the third month shall be payable.

d. Tariff Rates:
i. Demand charges: Rs.140/- of Billing per KVA p.m demand

PLUS

ii. Energy charged for HT Category I & III for first 1 lakh units per month - 225 paise
per unit next 1 lakh units per month - 285 paise per unit balance units during the
month - 305 paise per unit

iii. Fuel cost adjustment - As per existing rates of 24.95 paise per unit from 1.4.’97

e. Procedure for obtaining additional load

In case additional load is required, the Industry may proceed in the same way as they
have proceeded for obtaining a new HT Service connection.

f. Low power factor surcharge

The consumers are required to maintain power factor not less than 0.85 for their
installation in any month fall below 0.85, a surcharge of 2% shall be levied on the
month’s bill excluding demand charges and customer charges for every drop of 0.01
below 0.85

For further details, contact

Member Secretary
A.P.State Electricity Board
Vidyutsoudha, Khairatabad
Hyderabad 500 049
Tel:91-040-3396000
Fax:91-040-3399404

* These clearances / approvals can be obtained through the ‘Single Window’ services
being operated by the Commissionerate of Industries by filing a Common Application
Form (CAF). Ordinarily the approvals are secured within a period of four weeks.

Water Supply
Water supply

Industrial units, apart from their own ground water resources, can supplement their
requirement of water from the Local Bodies / Municipalities concerned in whose
jurisdiction they are located. The Municipalities supply water to Industrial
establishments, subject to feasibility and payment of contributions by the applicant
industries towards the capital cost of the piped supply of water duly collecting the
consumption charges as notified by the local authorities concerned.

Procedure for filing Application

Applications in the prescribed proforma ‘FORM-A’ shall be filed with the

Commissioners of the concerned Municipality / Authority of the Local Body..
Bulk requirement

In respect of bulk requirements for Large and Medium Industries, for drawing water
supplies from perennial sources, applications should be addressed to the Chief
Engineers of Medium / Minor Irrigation as the case may be, duly enclosing the
requirements, type and location of Industry and willingness to bear the capital cost of
laying the pipelines, motors pump houses etc. The feasibility will be examined after
the requisite payments are made and thereafter the proposals are sanctioned.

Water Tariff & Pipeline Service charges

The pattern of water tariff, pipeline servicing charges and meter charges etc., for the
Municipalities in the State vary from one institution to another.

Water

· Own captive source

· Public supply (Local Body)
· Supply from APIIC in respect of Industrial Parks / Indl.Development Area
· Supply from State Irrigation Department for bulk consumption

Pollution Clearance
The Andhra Pradesh Pollution Control Board regulates the modes of discharge and
treatment of various pollutants / effluents into air or water and other media to
ensure the wholesomeness of water in wells and streams in the entire State, advises
the State Government on location of any industry which is likely to pollute the water
course, lays down standards for sewage and trade effluents and for quality of
receiving water based on its designated use and local conditions prevailing.

The Entrepreneurs are required to submit application in the prescribed form along
with following enclosures for obtaining first No Objection Certificate before
commencing implementation of the project

1st NOC:

a. Manufacturing process in brief

b. Site Plan
c. Topographical Plan covering an area of 5-10 Km radium around the proposed
industry showing the following details

i. Nearest water course and agricultural lands

ii. Source of water supply to the village nearby
iii. Residential areas and villages
iv. Broad use of land

For further details, contact

Member Secretary
A.P.Pollution Control Board
Maitrivanam
Ameerpet
Hyderabad
Tel:91-040-290567, 291120
Fax:91-040-293261

Environment Clearance

Govt. of India has announced the new Environment Policy to protect the environment.
As per the policy, neither the expansion nor modernisation of existing industry or
setting up the new project listed under Schedule I & II of the said notification can be
under taken in any part of India, unless it has been given environmental clearance by
the Central Government for the industries listed in Schedule-I and by the State
Government for the industries listed in Schedule-II. The details of the industries
covered are given as follows:

SCHEDULE I

List of Projects Requiring Environmental Clearance from the Central Government

1. Nuclear Power and related projects such as Heavy Water Plants,nuclear fuel
complex, rare earths
2. River Valley projects including hydel power, major irrigation and their combination
including flood control
3. Port, Harbours, Airports (except minor ports and harbours)
4. Petroleum Refineries including crude and product pipelines
5. Chemical Fertilizers (Nitrogenous and Phosphates other than single super
phosphate)
6. Pesticides
7. Petrochemical complexes (Both Olefinic and Aromatic) and Petro- chemical
intermediates such as DMT, Caprolactam, LAB etc. and production of basis plastics
such as LDPE, HDPE, PP, PVC
8. Bulk drugs and pharmaceuticals
9. Exploration for oil and gas and their production, transportation and storage
10. Synthetic Rubber
11. Asbestos and Asbestos products
12. Hydro cyanic acid and its derivatives
13. a. Primary metallurgical industries (such as production of Iron and Steel,
Alluminium, Copper, Zinc, Lead and Ferro Alloys)
b.Electric are furnaces (Mini Steel Plants)
14. Chlor-alkali Industry
15. Integrated paint complex including manufacture of resins and basic raw materials
required in the manufacture of paints
16. Viscose Staple fibre and filament yarn
17. Storage batteries integrated with manufacture of oxides of lead and lead
antimony alloy
18. All tourism projects between 200m—500 meters of High Tide Line or at locations
with an elevation of more than 1000 meters with investment of more than Rs.5 crores
19. 19. Thermal Power plants
20. Mining projects (major minerals) with leases more than 5 hectares
21. Highway Projects
22. Tarred Roads in Himalayas and/or Forest areas
23. Distilleries
24. Raw Skins and Hides
25. Pulp, paper and newsprint
26. Dyes
27. Cement
28. Foundries (individual)

29. Electroplating

SCHEDULE - II

List of Projects Requiring Environmental Clearance From the State Government

(Subject to the provisions of Para 2 of the notification)

Nature of Projects Threshold Criteria (if any)

1. Ceramics
2. Coal Washery
3. Briquetting
4. Carbonising Plant
5. Engineering (Tubings, Castings, Rolling Mills)
6. Refractory
7. Pipelines (RCC, Steel, Seamless)
8. Calcium Carbide
9. Carbon Black
10. Reprocessing Lubricating Oil
11. Glass
12. Drugs and Pharmaceuticals (Formulations)
13. Electroplating
14. Storage Batteries (non-lead Processing)
15. Alkalis (Na2CO3 and CaCO3)
16. Plastics Processing
17. Tyres/Tubes of Two Wheelers and Cycle Rickshaws
18. Retreading of all Types of Tyres
19. Paints (Varnish, Coal Tar Chemicals, Pigments)
20. Dye Single Industry
21. Soaps and Detergents
22. Food Processing (Meat, Fish, Animal Products)
23. Milk Processing
24. Paper Products
25. Incineration Plants for non-hazardous waste
26. Hydroelectric Power Production Capacity
27. Cement Upto 200 TPD
28. Steel Plants Upto 50,000 TPA
29. Leather Tannery Upto 5,000 Skins PD
30. Distilleries Upto 150 KID
31. Sugar Upto 4,000 TPD cane
32. Textile Upto 500 Mtrs/d
33. Pulp, Paper & Newsprint Upto 33,000 TPA
34. Dye Intermediates Upto 5 TPD
35. Thermosets Phenol and Urea Upto 5,000 TPD
36. Acids Upto 500 TPD
37. Vegetable Oil Processing Upto 500 TPD
38. Foundries Upto Rs. 200 million
39. Communications Upto Rs. 200 million
40. Tourism and other projects within Upto Rs. 50 million
41. Irrigation Upto 2000 Hectares Command
42. Mining Upto 5 Hectare Lease
43. Roads (in Himalayas or involving Upto 5 Kms Length Forest Land)
44. Industrial Estates Upto 100 Units
45. Industrial Township (New & Expansion) Upto 5000 dwelling units

For further details, contact

Ministry of Environment & Forests

Paryavaran Bhavan
Phase-II, CGO Complex
Lodhi Road
New Delhi 110 003.

Member Secretary
A.P.Pollution Control Board
Maitrivanam
Ameerpet
Hyderabad
Tel:91-040-290567, 291120
Fax:91-040-293261

Raw Material
Apply through Industries Department for allotment of Scarce Raw Materials like Coal,
Molasses, Alcohol, Paraffin Wax if required.

Allotment of scarce raw material

Most of the raw materials required by the industrial units are available in open
market without any restrictions. But in the case of certain scarce raw materials like
alcohol, molasses, methanol, coal, LPG, furnace oil etc., their distribution is controlled
by the Commissionerate of Industries. The procedure to be followed for allotment is
as follows.

Application for allotment of scare raw material will have to be made in the prescribed
form in duplicate along with information on manufacturing process and the list of
machinery to the General Manager, District Industries Centre of the district where the
unit has been established. The applications have to be filed after taking all effective
implementation steps and when the unit is ready to commence the production.

Allotment of raw-materials is initially made on an adhoc basis and later on a regular

quota basis.

For allotment on an adhoc basis, the General Manager, DIC inspects the unit and after
satisfying himself on the readiness of the unit to commence production, recommends
the adhoc quota, to the Commissioner of Industries who in turn recommends to the
concerned Department viz;. Excise Department in respect of Methanol / Alcohol /
Molasses and Oil Companies in respect of Furnace Oil / LP Gas. For adhoc allotment of
Coal to Small Scale Units, the General Manager, DIC recommends the cases directly to
M/s Singareni Collieries. In respect of Large and Medium Industries, the General
Manager, District Industries Centre forwards the application to the Commissioner of
Industries for onward recommendation to M/s Singareni Collieries Ltd.
For the regular allotments, a Committee consisting of General Manager, District
Industries Centre officials of SISI and representatives of the concerned material
releasing Departments jointly inspect the unit and after physical verification of the
utilisation of raw materials allotted on adhoc basis and duly assessing the
requirement of scarce raw-material based upon the capacity, the Committee sends its
report to the Commissioner of Industries who finally approves the allotment in the
State Level Committee concerned. In respect of Coal allotments to Large and Medium
Industries M/s. Singareni Collieries Ltd., will fix Maximum Permissible Quantity to the
units for fixing regular allotment basing on the norms fixed by Government.

For allotment of regular quota of Iron and Steel, the General Manager, District
Industries Centre inspects the units and after satisfying that the unit has commenced
production, recommends for allotment to the Commissioner of Industries and release
by the RMSC of the APSSIDC and inclusion in the Master List.

For further details, contact

Commissioner of Industries
Government of Andhra Pradesh
Chirag Ali Lane, Abids
Hyderabad 500 001
Tel:91-040-3201235,3202131-136
Fax:91-040-3201335
E-Mail:comind@ap.nic.in
Website:http://www.andhrapradesh.com