AP Industrial Policy to Encourage Micro and Small Industries, during Coronavirus pandemic
The AP new Industrial Development Policy 2020-23 (IDP 2020-23) gives high priority for micro and small scale industries in the State.
Amaravati: The AP new Industrial Development Policy 2020-23 (IDP 2020-23) gives high priority for micro and small scale industries in the State. Taking a pragmatic approach, the government is focusing on encouraging domestic industries on a large scale and hence more incentives announced for micro and small industries. More particularly, this policy is encouraging the SCs, STs, BCs and women.
Given the COVID-19 pandemic environment across the globe, over expectations on the investments from the mega-corporate companies would be a nightmare. Realizing this fact, the Government took a decision to encourage the micro and small enterprises in the State, through which assured employment could be generated. Speaking to The Hans India, Minister for Industries Mekapati Goutham Reddy stated that it would be difficult to expect investments from global companies during the pandemic. Even some of the world's business tycoons wish to invest in India, there would be a huge competition for that from other states. Hence, it would be a better choice to give equal priority to the micro and small enterprises in the State, he added.
The Minister said that this three-year short term policy will envisage employment for skilled people, attract domestic investments, encourage entrepreneurship among diversified sections of the society.
The incentives for micro and small enterprises in the policy include reimbursement of 100 per cent stamp duty and transfer duty paid by the industry on purchase of land meant for industrial use. Reimbursement of 100 per cent stamp duty for the lease of land, shed or buildings, mortgages and hypothecations. The government is committed to supplying uninterrupted 24 X 7 quality power to all industries operating in the State. Fixed power cost reimbursement at Rs 1 per unit for a period of five years is another insensitive. Reimbursement of 100 per cent net SGST accrued to the state for a period of 5 years, or up to the realization of 100 per cent fixed capital investment, whichever is earlier. 15 per cent investment subsidy on fixed capital investment is limited up to Rs 20 lakh, whichever is lower. The subsidy will be released only after 3 years of continuous operation with at least 80 per cent efficiency in all parameters including employment and production.
The policy also assured an interest subsidy of 3 per cent on the term loan taken for fixed capital investment by new Micro and Small enterprises for 5 years. Reimbursement of 25 per cent land conversion charges for industrial use limited to Rs 10 lakh. Water and power will be delivered to the doorstep of the industry if it is located in the designated Industrial Park.
It is worth mentioning here that, the policy has described that investment on plant and machinery or equipment not more than Rs 1 crore and an annual turnover not more than Rs 5 crore to be considered as micro-enterprise. The investment on plant and machinery not more than Rs 10 crore and annual turnover up to Rs 50 crore to be considered as a small enterprise.