Highlights of AP Industrial Development Policy

2020-’23
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Advantage Andhra Pradesh
8th
Largest state in India

4%
of India’s total population

120
USD Billion GDP in 2017-18

11.2%
Growth rate average

13%
of India’s total coastline (974 km)

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Existing Ports ( 3 new Ports under development)

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Existing Airports
Need for New AP Industrial Development policy 20-23

Ensure a fast
turnaround time for
grounding investment
Train and skill our
proposals
workforce to attract
Promote a holistic global investments
and well-balanced
Need to channel the regional growth.
vast untapped
Industrial potential in
AP

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Objectives of the Policy

To create employment for

01 the youth of the state

To match the national average

02 in industrial GVA per capita

To plan balanced growth across

03 regions and communities

To achieve environmentally
04 sustainable growth

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Policy Interventions
Infrastructure

Skilling & Labour availability

Ease of Doing Business

Incentives

End to End handholding of

Entrepreneurs (YSR AP One)

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 Interventions in detail
§ Develop Plug and Play Infrastructure facilities targeting MSME players at affordable rates
§ Pre-cleared land parcels in industrial parks
Infrastructure § Development of clusters and mega industrial parks along the three major corridors.
§ Development of specific industrial parks as per local needs.

§ Industrial Zoning as a key focus area to ensure a planned Industrial Development

Industrial Zoning § Provide a ‘risk-free’ investment-friendly environment for industries in the State
§ Minimize impact on environment.
§ A separate industrial Zoning and safety policy is under development

Ease of
§ Faster approval process, central helpline desk, district level interventions by Collector
Doing Business § Improve access to credit through regular meetings with bankers

Skill Development § Development of 30 skill development centers and 2 skill development universities
Initiatives § Digital platform that matches company’s requirement with available skilled labor.

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 End to End Business Facilitation - YSR AP One
Entrepreneurship Facilitation Cell MSME Revitalization Cell
Maintain repository of business models and plans and support Proactively assess MSMEs and revive and reposition sick MSMEs.
aspiring entrepreneurs in the state with starting new venture

Market Research Cell Business Enablement Cell

Aims to undertake market research and develop sector
Supports businesses in getting all approvals and
wise resource repository
addresses all grievances

Marketing & Branding Cell Investor Outreach Cell

Support businesses in marketing their products locally YSR AP Works with priority sectors and geography desks for
and globally. focus investor outreach
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Sales Support Cell Incentive Management Cell

Connect units in state with potential buyers Assess unit performance, estimate incentives and
ensure timely disbursement of incentive

Scheme Support Cell Special Category Cell

Aims to support units in state in availing central and state government Handhold SC/ST/BC/Minority entrepreneurs throughout the
schemes investor life cycle 7
Financial Incentives
Category Incentives

• Reimbursement of 100% stamp duty

• Power reimbursement of Rs. 1/- per unit for 5 years
• Reimbursement of 100% net SGST for 5 years
Micro & Small
• 15% investment subsidy (up to Rs.20 lakhs)
• Interest subsidy of 3% for 5 years
• Reimbursement of 25% land conversion charges (up to Rs.10 lakhs)

• SGST reimbursement based on employment for 5 years

Medium, Large & o 50% reimbursement for providing employment below 1000 persons
Mega Projects o 75% reimbursement for providing employment between 1000 and 2000 persons
o 100% reimbursement for providing employment above 2000 persons

• Reimbursement of 100% stamp duty

• 50% rebate on land cost (up to Rs.20 lakhs) located in IE/IPs for MSEs
• Power reimbursement of Rs. 1.25 ps. per unit for 5 years
Women • 35% investment subsidy up to Rs.50 lakhs for MSEs
Entrepreneurs of • Interest subsidy of 3% for 5 years
SC/ST/BC/Minority • Reimbursement of 25% land conversion charges (up to Rs.10 lakhs)
communities • SGST Reimbursement for 5 years:
o 100% for MSEs
o 75% for Medium enterprises and
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o 50% for large enterprises
Tailor-made Incentives for Mega Projects

For Investment proposals that promise to generate employment for more than 2,000 people

§ Competition § Policy may not § Offer flexibility

among various cover certain for ultra-large
Need for States to attract incentives investments
Tailor-made investments critical for niche that have
Incentives companies immense future
benefit to the
State

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Sector Specific Interventions

Food Processing

Pharma & Biotech

Textiles

Electronics

Footwear & Leather

Toys & Furniture

Chemical & Petrochemicals

Aerospace & Defence

Auto
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Machinery, Precision Equipment & Minerals
THANK YOU

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