AP industrial policy: Industrial subsidies till 2020, 90 year lease

In a first of its kind industrial policy, the Andhra Pradesh offered subsidies effective till 2020 for all industries and lands allotted on a 99 year lease and fixed power cost refund for 5 years at Rs.1 per unit.

The nine page industrial policy released by Chief Minister Chandrababu Naidu, the new policy offers 100 per cent exemption of stamp duty, 24x7 power supply, 100 per cent variable tax and central sales tax reimbursement. In particular, SC, ST, BC, and women entrepreneurs as well as micro and small industries will be offered special subsidy till 2020.

AP Govt has also given special powers to the commissioner of industries to override all objections raised by the district-level administration and accord permission to industries in 21 days. Chandrababu also promised special industrial incentives for those who want to set up shop in the capital region. The new industrial policy assured improved infrastructure, good governance and excellent power supply to the developers.

According to the new industrial policy, agro & food processing, life sciences (including pharmaceutical, biotechnology & medical equipment), textile & apparel, electronics & IT, aerospace & defence, automobiles & auto components, petroleum, chemicals, (including fertilizers) and petrochemicals, energy, mineral based industry, leather industries are identified as thrust areas. Land shall be allotted on 99-year lease.

Among others the highlights of the industrial policy were:

AP government will provide fixed power cost reimbursement of Rs 1 per unit for 5 years from the date of commencement of commercial production.

• 100% reimbursement of stamp duty and transfer duty paid by the industry on purchase or lease of land meant for industrial use.

• 100% reimbursement of stamp duty for lease of land/shed/buildings, mortgages and hypothecations.

• VAT/SGST reimbursement incentives for a period of 5 years-Micro units will be 100%, small 100%, medium 75% and big industries 50%.