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4024280/2020/M-COCEP
DRAFT

Andhra Pradesh
Export (APEX) Policy
2020-25

Commissionerate of Industries Commerce & Export

Promotion | Government of Andhra Pradesh
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Contents
Preface ......................................................................................................................................................... 3
Abbreviations .............................................................................................................................................. 4
1 Context ................................................................................................................................................. 6
2 Vision.................................................................................................................................................... 7
3 Objectives ............................................................................................................................................ 7
4 Targets ................................................................................................................................................. 8
5 Validity of the policy ........................................................................................................................... 9
6 Executing Agency............................................................................................................................... 9
7 Action Plan for Exports ...................................................................................................................... 9
8 Institutional Framework ................................................................................................................... 12
8.1 State Export Promotion Committee ....................................................................................... 13
8.2 District Industrial & Export Promotion Committee ............................................................... 13
8.3 State Export Facilitation Cell .................................................................................................. 13
8.4 District Export Facilitation Cell................................................................................................ 14
8.5 Grievances Redressal Cell ..................................................................................................... 14
8.6 National Export Institutions ..................................................................................................... 14
9 Infrastructure Development ............................................................................................................ 15
9.1 Export Infrastructure Grid ........................................................................................................ 15
9.2 Value Added Processing Infrastructure ................................................................................ 16
9.3 Logistics Infrastructure ............................................................................................................ 17
9.4 Augment Air Cargo facilities ................................................................................................... 18
9.5 Road connectivity and Storage .............................................................................................. 18
9.6 Quality & Standards ................................................................................................................. 18
10 Marketing and Branding .............................................................................................................. 19
10.1 Brand Building........................................................................................................................... 19
10.2 International Market Access ................................................................................................... 19
10.3 Product Development .............................................................................................................. 20
10.4 Commercial Intelligence .......................................................................................................... 21
10.5 Awards & Recognitions for exporters .................................................................................... 21
10.6 Establishing Corpus Fund ....................................................................................................... 21
11 Capacity Building & Skill Enhancement .................................................................................... 22
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11.1 Establish Universities............................................................................................................... 22

11.2 Training & Capacity Building of exporters ............................................................................ 22
11.3 Training programs to unemployed youth .............................................................................. 22
11.4 Training for State Government Officers ................................................................................ 22
12 Financial Incentives ..................................................................................................................... 22
12.1 Incentive for Reefer Vehicle.................................................................................................... 23
12.2 Reimbursement of Transportation Cost ................................................................................ 23
12.3 Subsidy on Certification Charges .......................................................................................... 23
13 Digital Interventions ..................................................................................................................... 23
13.1 Integrated trade Desk (Dikhsuchi) ......................................................................................... 23
13.2 Virtual Showrooms ................................................................................................................... 23
13.3 Integrated Logistics Platform (PLACE) ................................................................................. 23
13.4 Exporter Card............................................................................................................................ 24
13.5 Trade information flow ............................................................................................................. 24
ANNEXURES............................................................................................................................................ 23

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Preface
Andhra Pradesh (AP)with a geographical area of 160,200 sq. km. is strategically located on the
Southeastern coast of India and is a natural gateway to East and Southeast Asia. The State has
the second longest coastline in India and is one of the largest producers of marine products. A
974-km long coastline provides advantageof having number of ports, including 1 major port at
Visakhapatnam,four non-majorports,handling a traffic of 169 MMTPA and another three new
ports under development. Most of the ports, including Krishnapatnam, Vishakhapatnam and
Kakinada are deep-water ports.

The economy of Andhra Pradesh is multi-faceted, with the coastal region providing requisite
environment for development of manufacturing activities – the fertile river plains supporting
agriculture and allied activities, and the districts in Rayalaseema being conducive for mineral
based industries. The State is one of the largest producers of rice, maize, groundnut,
sunflower, and cotton in the country.

The GSDP at constant (2011-12) prices for the year 2018-19 is estimated at INR 6.8 Lakh Cr.
as against INR.6.1 Lakh Cr. for 2017-18, indicating a growth of 11.02 % in comparison with the
All India GDP growth rate of 7.0% for 2018-19. The sectoral growth rates of GVA of Andhra
Pradesh for 2018-19 for Agriculture is 10.78%, Industry is 10.24% and Services sector is
11.09%.

In FY 2018-19, Ports in AP handled 168.19 MMT – 14.4% of total Trade - 2nd highest in the
country, only after Gujarat. Road and rail are the two major modes for passenger and cargo
movement in Andhra Pradesh. In terms of modal share, 55% of cargo is moved through rail and
conveyor belts,which is higher than the national average of 35%. Road accounts for 32% of
freight movement and therest is moved either through pipelines or coastal shipping.

Existing industries, across 13 districts of AP, are supported by 109 warehouses (total capacity
of 13.38 Lakh MT), 104 cold storages (total capacity of 66.7Million MT), 1Inland Container
Depots (ICDs) and 3 Container Freight Stations (CFSs). However, the storage industry is
fragmented and there are very few organized market players operating in the logistics sector.
There is a need to shift from traditional small-scale warehouses, mostly unorganized, to modern
warehousing facilities designed as per global standards. There should also be a surge in value
added services such as cold-chain warehousing. Customized facilities for commodity-wise focus
and geography specific storage and transportation assets should be created to enable trade and
support the growth of industries.

Despite the challenges on account of the State bifurcation, Andhra Pradesh has emerged as an
important investment destination in India and offers conducive environment for business to
flourish. Investor friendly policy and business environment, coupled with availability of reliable
power, large industrial land banks, skilled labour, and robust infrastructure have made the State
a globally competitive investment destination.

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Abbreviations
S.No Abbreviation Description
1 AAI Airport Authority of India
2 AEO Authorized Economic Operator
3 APIIC Andhra Pradesh Industrial Infrastructure Corporation
4 CaHA Cargo Handling Agents
5 CEU Coastal Economic Unit
6 CEZ Coastal Economic Zone
7 CEZ Coastal Economic Zone
8 CFS Container Freight Station
9 CHA Customs House Agents
10 CoE Centers of Excellence
11 DEFC District Export Facilitation Cell
12 DGFT Directorate General of Foreign Trade
13 DIEPC District Industrial & Export Promotion Committee
14 DoIC Department of Industries and Commerce
15 DPD Direct Port Delivery
16 DPE Direct Port Entry
17 ECGC Export Credit Guarantee Corporation
18 EIC Export Inspection Council
19 FICCI Federation of Indian Chambers of Commerce & Industry
20 FIEO Federation of Indian Export Organizations
21 FOIS Freight Operations Information System
22 FTWZ Free Trade Warehousing Zone
23 GoAP Government of Andhra Pradesh
24 ICD Inland Container Depots
25 INCAP Infrastructure Corporation of Andhra Pradesh Limited
26 ISI Indian Standards Institution
27 ITC HS Code Indian Trade Classification (Harmonized System)
28 ITD Integrated Trade Desk
29 MPEDA Marine Products Exports Development Authority
30 MSME Micro Small & Medium Enterprises
31 MSDC Multi Skill Development Centers
32 MT Metric Ton
33 NPP National Perspective Plan
34 PLACE Platform for Logistics & Cargo Effluence
35 PPP Public-Private Partnership
36 SEFC State Export Facilitation Cell
37 SEPC State Export Promotion Committee
38 TEE Towns of Export Excellence
39 WHO-GMP World Health Organization Good Management Practice
40 ZED Zero Defect Zero Effect

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1 Context
World economies are re-aligning their strategies and trade agreements to find new partners for
trade relationships. The present scenario offers a unique opportunity for the state of Andhra
Pradesh to strengthen its domestic manufacturing and export infrastructure to become a major
sourcing hub for global trade.

Andhra Pradesh is a resource rich state with access to seaports, and thus has huge potential to
promote exports from the State. The State exported goods worth USD 13.68 Billion in the FY
2019-20, which is 4.7% of total Indian exports. Top 10 export categories contributed 55.5% of
State’s export value in Financial year 2019-20, with major exports coming from marine products,
Bulk drug & drug formulations, Ship, boat & Floating structures, Iron & Steel and Spices.

Industry Challenges in Exports

1. Lack of adequate storage and distribution
services. AP needs at least 30 MT of
storage space and 2000 MT cold storage
capacity
2. High waiting periods of the shipments
causing congestion at major ports
(eg.Visakhapatnam)
3. Volatile freight rates in logistics,
increasing transportation costs for
exporters
4. Limited research and limited transfer of
technology from lab to land is causing
our exports limited to raw material
5. Workforce availability is difficult to attract
for labor intensive industries

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6. Lack of awareness on existing schemes and policies related to exports deterring

manufacturers enter export business

According to AP State Warehousing Corporation (SWC), there are a total of 55 SWC owned
godowns with capacity of 676 Million MT, with utilization of only 80%. On the other hand, hired
godowns and investor godownswith combined capacity of 7.9 Lakh Tonneoperating with 100%
utilization and in some regions utilized beyond the capacity.

As per 2019-20 data all Seaports inAP handled 1.72 Lakh MT of Cargo compared to Tamil
Nadu’s 11 Lakh MT, Maharashtra’s 25 Lakh MT and Gujarat’s 56 Lakh MTs.AP’s Air cargo (3.96
MT) is also not at par with other States. Tamil Nadu (0.2 Lakh MT), Karnataka (0.5 Lakh MT),
Maharashtra (0.6 Lakh MT). Tamil Nadu, Maharashtra, Karnataka, Gujarat all have good portion
of cargo handled at dry ports, which gives them freedom for container storage and handling
when there is delay from shipping lines at the ports.

The Vizag port has a throughput capacity of 72 million tonne per day and has a turnaround time
of 2.51 days. Other minor ports such as Gangavaram, Kakinada ports also have better
turnaround time of less than 1.5 days.

Given the infrastructure, raw material base and skilled manpower, there is a pressing need for
integration of modes in the state for ease of mobility to bring down the cost of doing business

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and for exploring the potential of value-added exports and integration of value chains in the
state. Additionally, the institutional framework for exports also can be improved in order to drive
efficiencies in the system while bridging the gaps in information that entrepreneurs have on
demand and supply.

Government of Andhra Pradesh to tap the opportunity created by the pandemic and to meet its
endeavor to bring distributed developmenthas brought Export Promotion 2020-25 Policy. With
this Policy, the GoAP enables creation of a framework to develop and improve exports, overall
logistics infrastructure and encourage investments in port-based industries and logistics
services.

2 Vision
The policy being brought out aims to “Establish Andhra Pradesh as a leading export hub
in the country through development of world class logistics and export infrastructure,
promotion of high-quality product portfolio, building robust export-oriented institutions
and creating integrated export ecosystems from districts to ports”

3 Objectives
The State, through this policy, aims to give a PUSH to the exports. The objective of the PUSH is
to move up the value chain in exportable products, upgrade trade infrastructure and institutions,
identify and eliminate redundant processes harnessing technology.

The objectives of the policy are threefold:

Reinforcing Export enablers

1. Providing an effective, proactive and supportive Institutional mechanism for the rapid
growth ofexports
2. Create world class logistics Infrastructure to decrease cost of exports while increasing
market access
3. Build a technology driven integration platform to ensure smooth flow of information both
upstream and downstream
4. Promote circular economy and target zero wastage from industries.
5. Leverage India’s trade agreements with other countries to access new markets

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6. Operationalizing sustainable medium-term Export Promotion SectoralStrategies

Desired Output

1. Doubling productivity, serviceable markets and employment with focus on moving up

the value chain
2. Drive demand and supply aggregation wherever feasible
3. Increase accessibility and availability of raw material
4. Minimum wastage and integrated supply chain
5. Increase product variety, Build brands and market local products
6. Leverage E-commerce for exports
7. Promote Districts as export hubs

Outcomes of the policy

1. Become top 3 export hubs in the country

2. Leverage Technology to create products higher in the value chain
3. Encourage Innovation, Start-up Incubation and Commercialization
4. Create large scale employment across the state

4 Targets
Following targets are set to monitor the progress on objectives defined in this policy -

a. Infrastructure Performance:
i. Increase warehousing capacity to 56 Lakh MTsduring the policy period, from
existing capacity of 18.2 Lakh MTs in 2019.
ii. Increase the percentage utilization of State owned godowns by 5% year on year and
achieve 100% occupancy by the end of policy period.
iii. Raise investment capital of INR 9,000 Crores to develop3 logistic parksand 7 ICDs
in the State during the policy period.
iv. Double traffic handling capacity from 169 MMTPA (2018-19) at seaports in the
policy period at agrowth rate of 15% annually.
v. Maintain average turnaround time of all non-major ports in Andhra Pradesh at 1.4
days from current 1.7 days.
vi. Reducing the cost of logistics in Andhra Pradesh from 14% to 10%1, in line with
best-in-class global standards.

A list of targets for infrastructure upgradation district wise is detailed in Annexure-I

b. Export Performance:
i. Improve Andhra Pradesh State’s rank in exports from rank 9 (in 2018-19) to top 3
by end of policy period.

1
Estimates to be finalized by the LMU using scientific methodology; Standards as per draft NLP issued by Logistics Division, GoI

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ii. Double value of export by from INR 1 Lakh Cr in 2018-19 to INR 2 Lakh Cr. by
2024-25 at a growth rate of 15%.
iii. Increase contribution of products outside the current top 10 list from 35% in 2018-19
to at least 50% by 2024-25
iv. Operationalize atleast one Airline Cargo service each from Vishakhapatnam and
Vijayawada Airports
v. All the districts in the State, should have atleast 1 cluster with turnover of above
INR 10 Cr in the focus sector identified for that district.
vi. Create at least 3 new Towns of Export Excellence

5 Validity of the policy

The Policy shall come into force from the date approved by the State Council of Ministers and
shall remain in force for a period of 5 years there upon.

The Policy document will be of rolling nature that will be updated periodically to reflect the
changing context with advancement in scalability, integration and technology in the field of
Exports & Logistics.

6 Executing Agency
The Department of Industries and Commerce (DoIC) shall be the executing agency for the
Policy. It will work with State Export Facilitation Cell (SEFC), District Export Facilitation Cells
(DEFC) and other state and central departments and agencies to realize the vision of this policy.

7 Action Plan for Exports

Focus Sectors
This policy builds on the Andhra Pradesh Industrial Policy 2020-23 that has identified ten key
sectors in manufacturing.

1. Food Processing
2. Pharma and biotechnology
3. Textiles
4. Electronics
5. Footwear and leather
6. Toys and furniture
7. Petrochemicals
8. Aerospace and defense
9. Automobiles and components
10. Machinery, precision equipment, and mineral based industries

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For the purpose of exports, the share of sectors in AP’s exports and share of sectors in Indian
exports, focus sectors has been identified and categorized into buckets.Details of products
under each sector are provided in the Annexure II(b).

The categories identified for the sector will be tackled with definitive strategies to increase the
export basket of Andhra Pradesh.

1. For sectors that fall under Strong Products category (Category A), following interventions will
be taken
 Push towards value addition for industry players
 Priority clearance/approvals related to exports/imports
 State will assist in continued supply of inputs
 Help the industry players with capacity expansion
2. For sectors that fall under Products with potential (Category B), following interventions will
be taken
 Facilitate the industries in moving up the value chain to increase more value addition
 Facilitate investments by connecting exporters and importers.
 Develop skilled workforce for deployment in the industries

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3. For sectors that fall under Products that need market (Category C), following interventions
will be taken
 Facilitate Importer connects
 Create visibility for products
 Encourage trade fair participation

In addition to the above categories, the State will give special focus in export of furniture, toys
and handicraft items, to create employment opportunities in the less developed districts.

Five Point Action Agenda

1. Leveraging Central Schemes
- The State will utilize the funds available underSagarmala Project, Champion Services
Sector Scheme (CSSS), Trade Infrastructure for Export Schemes (TIES), MSE-CDP,
Market Access Initiative Scheme (MAI) etc. for development of large infrastructure
projects as well as for capacity building, marketing assistance initiatives.
- State Government shall invite proposals from established industry players for, and
technology upgradation on PPP mode.

2. De-centralize administration
- Districts to act as reference points for the exporters, for providing assistance related to
new value-added products in the identified sectors, knowledge on market trends in
particular product category, schemes and benefits available etc.
- Districts would be treated as a Resource unit and an Export Hub, withclear action plans
to diversify the export basket for AP.
- The districts will be measured and ranked based on the targets set for export
performance, to boost volumes of export.

3. Create common Infrastructure

 Common infrastructure facilities such as testing labs, Cold chains, warehousing, packing
house, processing units, effluent plants, raw material banks etc wherever needed will be
developed in a planned manner so as toreduce cost burden on manufacturers.
 Container depots/ multi modal logistics hubs will be created to provide seamless
integration of freight storage and transportation infrastructure and increase turnaround
time of cargo at the terminal ports.

4. Ease of Exports
 Explore integration of SWIFT program (Single Window Interface for Trade) system with
AP State’s Single Desk Portal.
 Support required to set up a quick response customer service cell to provide round-the-
clock support for exporters through a single window clearance system with multiple
interfaces like Customs House Agent (CHA), stevedores, customs, port, etc.will be
created
 Technology shall play a crucial role in bringing inter-operability of services and efficiency
in logistics movement.

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5. Creating towns of export excellence

- Presently, only Vishakhapatnam and Bhimavaram have been notified as Towns of
Export Excellence (TEE) for Seafood products.
- The State Government shall co-ordinate with various other State Departments and
identify the other towns that could be notified as TEE and pursue with DGFT for
notification of such Towns

The state’s five point agenda will be operationalized through 5 key drivers given below, to
achieve the set targets -

1. Institutional Mechanism
2. Infrastructure Enhancement
3. Marketing Assistance
4. Capacity Building
5. Digital Transformation

8 Institutional Framework

The State will establish a strong institutional mechanism for better co-ordination, monitoring and
evaluation of export performance.

Layer A: Empowered Committee

a. State Export Promotion Committee (SEPC)

b. District Industrial & Export Promotion Committee (DIEPC)

Layer B: Working Group

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a. State Export Facilitation Cell (SEFC)

b. District Export Facilitation Cell (DEFC)

Layer C: Enabling Bodies

a. Grievance Redressal Cell

b. National Export Institutions

The Empowered Committees are supported by working Groups in operationalizing the policy.
DEFCs will handhold the manufacturers in the districts under the guidance and supervision of
SEFC.

The proposals received from District EFCchanneled through District level Committees will be
taken-up by State EFC. If the proposal has linkages with GoI, then State EFC will take the
approval from the State Level Committee.

8.1 State Export Promotion Committee

a. State Export Promotion Committee (SEPC) is a State Level Committee responsible to
oversee trade progress and resolve export related issues, key challenges of exporters,
marketing challenges of sector specific products at State level.
b. The committee will also act as an institutional mechanism for regular co-ordination
between the Ministry of Industry& Commerce, Government of India and the State
Government for focusing on export promotion in the State.

8.2 District Industrial & Export Promotion Committee

a. District Industrial & Export Promotion Committee (DIEPC) is a District Level committee
chaired by District Collector from respective districts.
b. The committee will serve as an institutional mechanism for regular co-ordination
between the District and the State Government for focusing on export promotion in the
Districts.
c. The committee chaired by District Collector of respective districts will assist in review of
all trade related issues, issues in logistics, agriculture exports, service exports, other
export related issues at District level and suggest measures from time to time for
promotion of exports from the District

8.3 State Export Facilitation Cell

State Export Facilitation Cell (SEFC) is a nodal body at State Headquarters, responsible for
providing secretarial support services to the Export Facilitation Cells in the Districts.

The SEFC will be responsible for:

a. Analyzing trade statistics specific to sectors and districts
b. Identifying potential products of exports based on resource availability in the State and
find target international markets
c. Creating action plan for promoting Districts as export hubs for identified products
d. Creating linkages to exporters by coordinating with embassies in target markets and find
importers for the products

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e. Providing support for promotional activities such as external publicity, participation in

fairs and exhibitions, promotion of exclusive exhibitions and trade fairs of specific
products
f. Identifying the need for export related training and capacity building, and liaison with
DGFT and industry chambers for facilitating these initiatives.
g. Facilitating reward and recognition of best performing exporting units in the State
h. Creating, operating and managing Integrated Trade Desk.

8.4 District Export Facilitation Cell

District Export Facilitation Cell (DEFC) is the executing body at District Headquarters,
responsible for capacity building, handholding support and counselling of local units interested
in exports.

The DEFC will be responsible for:

a. Implementing the action plan from SEFC in Districts

b. Building a database for exports and imports from the District along with district profiles.
c. Providing guidance to exporters on matters such as standards, certification, export
finance, insurance, etc.
d. Organize regular meetings with associations and trade bodies in the districts to identify
issues of the exporters
e. Identifying the need for export related training and capacity building, and liaison with
State EFC for facilitating these initiatives.
f. Updating Integrated Trade Desk, with field level data on regular basis.
g. Promote and assist exporters with procedures for accessing Virtual Showrooms, Skill
Banks etc.
8.5 Grievances Redressal Cell
Commissionerate of Industries, export promotion wing will appoint dedicated export
promotion Officers (EPO) to attend queries of the exporters at the State Head office.
There will be provision on the Department of Industries website, for exporters to post
grievances.

8.6 National Export Institutions

Andhra Pradesh currently has presence of following National Export promotion agencies:

Export Promotion Councils

a) MPEDA Visakhapatnam
b) Tobacco Board Guntur
c) Spices Board Guntur
d) Coir Board East Godavari
e) Coffee Board Visakhapatnam
f) Engineering Export Promotion Visakhapatnam
Council (EEPC)
Agency of Ministry of Commerce
a) Directorate General of Foreign Trade Vishakhapatnam

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(DGFT)
b) Export Credit Guarantee Corporation Guntur
of India (ECGC)

State will pursue EPCs, specific to Cotton, Textile, Pharmaceuticals, Gems & Jewelry to setup
regional branches in districts,where the products are in abundance.

Interventions will be taken in a direction to strengthen state’s association with International trade
bodies, FIEO (Federation of Indian Exports Organization), ITPO (India Trade Promotion
Organization), NCTI (National Centre for Trade Information and Product Sectoral Associations.

9 Infrastructure Development
9.1 Value Added Processing Infrastructure
Government of AP will develop common infrastructure facilities for the manufacturers and lease
the facilities to private players for operation and maintenance.

A. Sea food processing infrastructure

i. Government of Andhra Pradesh would set up five animal feed supply depots in
Nellore, Prakasam, Krishna, East & West Godavari districts to provide good quality
shrimp feeds for Tiger, L.Vannamei& Scampi shrimp to maintain continuity of supply.
ii. The state will develop 8 Fishing harbors along with Sea Food Processing parks that
include ice plant, Individual Quick Freeze (IQF) facilities, fish & shrimp quarantine
facilities, aqua labs inthe coastal districts. The common infrastructure facilities can be
utilized by for conductingprimary, secondary and tertiary processing activities.
B. Developing Cold Storage Chain
i. Cold Storage infrastructure to be developed under Central assistance on Mission for
Integrated Development of Horticulture (MIDH) scheme in alignment with
Department of Food Processing.
C. Common infrastructure for weaving units
i. The government’s plan is to develop the missing segments of entire textile value
chain and create an ecosystemfor converting yarn produced in the State into fabric
and garments.
ii. Support will be provided to setup common facility centers/dyeing units with modern
environmentally acceptable wastewater management techniques at suitable
industrial locations.
D. Raw material banks to promote crafts and toy industry
i. Lepakshi as nodal agency would be examined for sourcing and supply of raw
materials (lace, color threads, velvets etc.)
ii. With the help of Forest department, timber banks such as bamboo, TellaPoniki,
Ankudi, will be made available in Vizianagarm, West Godavari, Prakasam districts to
promote furniture, handicrafts, small gift and toy articles.

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9.2 Logistics Infrastructure

A. Inland Container Depots:
Border districts Nellore, Anantapur, Krishna, Vizianagaram are identified for development of
Inland container depots (ICDs)in-line with guidelines on ICD/CFS/AFS developed by CBIC,
to facilitate aggregation of freight from neighboring states along with the cargo from the
surrounding districts.
i. A minimum of 70% of the total area of the park shall be used for providing logistics
services and upto 30% of the remaining area will be permitted for support services
and common facilities
ii. The depots will serve functions such as Receipt and dispatch/delivery of cargo,
Stuffing and stripping of containers, Transit operations by rail/road to and from
serving ports, Customs clearance, Consolidation and desegregation of LCL cargo,
Temporary storage of cargo and containers, Reworking of containers, Maintenance
and repair of container units.

Feasibility of Direct Port Delivery (DPD) and Direct Port Entry (DPE) for Authorized
Economic Operators, will be worked out in discussion with Customs & Excise Department.

B. Multi Modal Logistic Parks:

Two Multi-modal logistic Parks one at Machilipatnam and other at West Godavari to act as
converging points for container trucks and the port facilities to be developed in an area of
100 acres each. Land use plan for logistics parks are detailed in Annexure III (E).
i. A minimum of 70% of the total area of the park shall be used for providing logistics
services and upto 30% of the remaining area will be permitted for support services
and common facilities.
ii. The parks will serve four key functionalities that include Freight aggregation and
distribution, Multi modal freight transportation, Storage & Warehousing and value-
added services such as customs clearance, bonded storage yards, warehousing
management and container management services etc.
The parks will be developed under Sagarmala/ Trade Infrastructure for Exports Scheme
(TIES)/ Champion Service Sector Scheme (CSSS) etc.in PPP mode. The State will form an
SPV involving shipping lines, logistic players and banks in attracting equity for the
development of the projects.
C. Improving Port Connectivity
a. The State will support the ports in obtaining relevant approvals if any required to build
new anchorages, channels, berths and dredges.
b. Government in collaboration with Railways and allied agencies will facilitate exporters in
utilizing Cargo handling services.
c. The government will pursue to increase directshippinglines beyond Japan, Korea
and China to key countries such as US and Europe by creating export opportunities
for the exporters in the State.

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d. State Govt in co-ordination with Ministry of Shipping and Indian Port Association will
pursue with Centre for the Port related facilities, technology upgradations etc. as detailed
in Annexure III (A)
9.3 Augment Air Cargo facilities
a. Expand and develop integrated Air Cargo Complex, housing both domestic and
international cargo terminals under one roof at Visakhapatnam airport.
 Key features include processing, storage and handling facilities, cold storage
facilities, exclusive storage facilities for valuable, vulnerable and dangerous
consignments, X-ray screening facilities, Customs examination area facilities and
adequate dock leveler facilities to handle any type of vehicle.
b. GoAP in consultation exporter associations and Airport Authority of India (AAI), will take
initiatives to improve flight services connecting to International Airportsin
Visakhapatnam, YSR Kadapa and Tirupati airports.
c. Detailed initiatives is detailed in Annexure III (B)

9.4 Road connectivity and Storage

a. A detailed study on Road connectivity to remote locations will be conducted to increase
the efficiency in freight movement to the ports.
b. Additional stoppages for provisioning of truck laybys will be created across various
highway locations within the state.
c. The detailed initiatives are listed in Annexure III (C)

9.5 Quality & Standards

a. In the existing ICDs office space will be provided for Participating Government Agencies
(PGAs) to reduce the time for sample testing.
b. The State machinery will assist MPEDA in onboarding all the fishing boat operators and
implement the catch certificate to improve competitiveness of marine exports.
c. Establish Aquatic QuarantineLab facilities near to Visakhapatnam and Kakinada Ports
d. NABL accredited
QualityTestingLabs/infrastructurefacilitywillbestrengthenedbyupgradingexisting labs
and by establishing new world class testing labs throughout the coastal areas on
PPP mode.
e. Government in consultation with FSSAI will also introduce 50 food safety on wheels
(FSWs) to improve food testing infrastructure in remote areas.
f. Government will pursue Central Drugs Standard Control Organization (CDSCO) to
bring Drug Testing Labs in Andhra Pradesh.

Efforts will be made to train exporters on pre-export inspection and procedures to receive
provision of certification for focus sectors. Details highlighted in Annexure IV

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10 Marketingand Branding
10.1 Brand Building

Department of Industries & Commerce will empanel Marketing agencies who help in following
activities:

a. Create attractive video content andadvertisements to storyboarding the products,

processes, Community led development initiatives.
b. Create ad campaigns such as hashtags, twitter handles etc on social media to increase
visibility in global markets.
c. Run digital marketing campaigns paid/un-paid depending on the exporter’s requirement
in the target market destination.

The individual exporters/cluster groups/export associations interested in getting the advertising

support can register with District EFCs to avail the benefits.

The DoIC&EP will work through AP Economic Development Board (EDB) to do the
following:

a. Brand Building for “SVAYAM Andhra” - Focus on creating awareness about the state
as a resource hub for various products to supply to markets globally
b. “Produce to Export” Campaign - Run a campaign throughout the state to create
awareness on export market and the opportunities available while providing them with
sector intelligence
c. GI Tagging - Identify products unique to Andhra Pradesh and pursue GI tagging along
with marketing of these products through proper channels.

10.2 International Market Access

a. Partnering with Sector Champions -

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Form partnerships and pursue MoUs with large organizations who are leaders in their
product category as well as global trade organizations such as ITA, UKTI, USTDA,
JETRO, KOTRA etc. and get their support in increasing the reach of entrepreneurs of
the state

b. Establishing Mega Trade Center

Facilitate in creation of state of art Convention and Exhibition Centre Spread across 34
acres at Visakhapatnam for organizing global trade events. The Convention and
Exhibition Centre will be equipped with Movable modular stage pieces, Exhibition halls
with column free structure, Easy plug & play Facilities etc.

c. Establish ‘Export AP Desk’

Establish export promotion desk in AP Bhavan, New Delhi and opening trade
centers in metro cities and trade offices of foreign countries
d. Trade Fairs

Participate in export exhibitions in India and will involve various EPCs and entrepreneurs
through various Govt. of India schemes for ‘Market Development Assistance’ and other
such schemes. Such events are important source of export queries.

e. Digital Initiatives

The Export Promotion wing of Industries department, will run an integrated trade desk and
virtual trade showrooms to ensure flow of information to all stakeholders

10.3 Product Development

a. Product Re-Design
 Product design cell under DEFC will work with various clusters, entrepreneurs across all
districts to create new value-added products using existing skill sets and raw materials to
suit global audience.
 The product design cell will work with co-operatives, create new Products, packaging,
quality certification for a variety of products across Toys, Art, Handicrafts, Processed
food etc.
 New innovative technology-based product manufacturing are to be focused for tapping
new potential export markets

b. Academia Connect
 The State will tie-up with institutes like National Institute of Fashion Technology, National
Institute of Design, Indian Institute of Packing, Indian Institute of Technology, Indian
Institute of Management, Indian Maritime University and the like institutes for improving
marketability of unique products in the State.
 The students will be encouraged to take internship projects with niche manufacturing
communities such as traditional toys, handlooms, art & crafts etc. The opportunities of
work will concentrate in areas such as building brands, improving aesthetics and

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packaging, introducing technology, process re-engineering etc which can help clusters in
manufacturing quality products.
 The students under the internship program will receive a stipend of Rs 10,000 per
month. The students will also be issued certificate of acknowledgement from concerned
district EFCs on behalf of Department of Industries.

10.4 Commercial Intelligence

a. Sector Intelligence

Coordinate with all EPCs and perform sector research to create market intelligence,
which will be disseminated to entrepreneurs of the state. Generate Market reports,
compendium of Standards and regulations, Statistics on trade, Survey reports of product
demand and periodic newsletters

b. Conduct District Level Awareness Program

Initiate various programs and workshops at district level to create awareness among
people about exports

c. Export Promotion Performance Measurement System

Aquantitativeperformance(KPI’s)basedsystemwouldbedevelopedformeasuringthe
effectiveness of the strategies for exportpromotion.

 Theparametersforassessmentcouldincludeextentofutilizationofcommontesting
and certificationfacilities
 Number of firms seeking assistance from the proposedEFCs
 Training and capacity building activities undertaken byEFC

 Number of branded products assisted / marketed through the brand equity fund,
support provided by the State for compulsory certifications,etc.

10.5 Awards & Recognitions for exporters

Government of Andhra Pradesh will award exporters from the State for their excellence in
exports. Major export awards like Best Exporter Award and Award for Quality and other
categories of award to encourage young entrepreneurs will be identified by the State
Government in partnership with organizations like FIEO, FICCI etc. for selecting the award
winners.

10.6 Establishing Corpus Fund

Create a corpus of INR 10 Cr for the promotion of exporters, marketing of export produce and
building market facilitation centers in all districts.

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11 Capacity Building &SkillEnhancement

11.1 Establish Universities

In coordination with the Government of India, the state will establish educational institutions
specific to International trade such as Indian Institute of Foreign Trade (IIFT), Indian Institute of
Packaging (IIP), Multi Skill Development Centres (MSDC) etc.

The courses taken up will

a) Impart world class education and training in the field of logistics aid in capacity building
inmiddle and top managerial levels
b) The institutes will excel in the fields of Surface transport, Air Logistics, Port Operation /
Shipping Logistics, Warehousing and Management Studies & International Trade.
c) They will also have three research-oriented Centre of Excellences (COE) viz. in the field
of Intermodal Logistics, Port Operation and Warehouse and Supply Chain.

11.2 Training & Capacity Building of exporters

State EFC in partnership with Export inspection council (EIC), FIEO, DGFT will train exporters
on

1. Pre-export inspection and on procedures to receive provision of certification for products

2. Quality standards as per Sanitary and Phyto sanitary standards/export certifications,
Good Agricultural practices and Integrated Management Practices
3. Selection of ITC HS codes, INCO terms, Financing options, Custom clearance
procedures
4. Packaging and movement of Cargo based on product type and country-wise Quality
standards requirement etc.

11.3 Training programs to unemployed youth

Department of Industries and Commerce will work with Department of Skill Development,
Entrepreneurship and Innovation to fulfill the skill development needs of Enterprises
dovetailing the existing programmes of State Government as well as Central Government
or instituting customized programmes, as needed.

11.4 Training for State Government Officers

District Industry Officials will be trained in EXIM related topics and retrained to keep them
updated on latest developments. Officials will be trained on the latest CODEX Alimentarius
standards A list of essential trainings, including sectoral specific compliances, will be created
and implemented.

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12 Financial Incentives
GoAP in addition to the incentives given under Industrial Development Policy 2020, will provide
following incentives to promote exports -

12.1 Incentive for Reefer Vehicle

For those units registered as MSMEs as defined by Government of India and have a valid
Import Export Code (IEC), will be eligible for investment subsidy of 25%ofcostofreefer
vehiclesof any capacity with new technologies, withmaxcapof INR 10 Lakhs per vehicle
(with maximum of two vehicles) in the policy period.

12.2 Reimbursement of Transportation Cost

Manufacturingunits, utilizing railwaysfor transportation of cargo betweenplantto Port, can
claimfor a reimbursement of20% of transportation charges, on the freight bill charged by the
railways, with a maximum limit of Rs. 10Lakhs per annum during the policy period.

12.3 Subsidy on Certification Charges

 GoAP to give additional 10% subsidy over the subsidy given by GoI to the MSMEs
availing quality certification under ZED scheme.

 For compulsory marking like Conformity European (CE), China Compulsory Certificates
(CCC), Good Manufacturing Practices (GMP), Phytosanitary certificates, Global Food
Safety Initiative (GFSI) recognized schemes etc. reimbursement of 50% certification cost
subject to a maximum of Rs. 2 Lakh per unit per annum can be availed by the exporters.

An additional 5% subsidy to be extended for women, SC, ST and other backward community
run MSME units.

13 Digital Interventions
13.1 Integrated trade Desk (Dikhsuchi)

a. An integrated trade desk (Dikhsuchi) specifically dedicated for exports will be developed
and integrated with Department of Industries website, AP One and other related portals.
b. The integrated desk will facilitate in grievance redressal, data bank of exporters in State,
product catalogues to be promoted as e-market place, latest news, updates on trade
fairs/events/workshops, dashboard on trade Statistics of State etc.
c. The desk will also facilitate a virtual showroom for display of products available from the
State for exports.

13.2 Virtual Showrooms

a. For promotion and expanding the visibility of exportable products from the State, a
Virtual Showroom will be created on Integrated Trade Desk
b. The catalog of products identified for export promotion from each district will be
displayed in the Virtual Showroom
c. The exporters registered with District Export Facilitation Cells (DEFC) will be given
access to display their product catalogue in the Virtual Showroom.

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d. At detailed operating guidelines for operationalizing Skill Banks will be released

separately by Department of Commerce & Industries.

13.3 Integrated Logistics Platform (PLACE)

a. The State will come up with a mobile application called PLACE (Platform for Logistics
and Cargo Effluence), which will improve the logistics efficiency for the Cargo
movement and regulate the state of affairs of logistics movement in the State. The
PLACE app will also promote RAIL SUGAM and Freight Operation Information System
(FOIS)applications of Indian Railways to encourage use of railways for freight
movement.
b. PLACE app will help exporters in container traceability, status of movement from the
freight forwarders,create portfolio of repeated traders for easy clearances necessary for
rapid movement of cargo between ports and destination points, publish rate chart for
container handling services.
c. The app will also benefit the exporters in finding dry-ports in vicinity, booking and
tracking of containers, cost estimates for transportation of the cargo etc.

13.4 Exporter Card

a. In a step towards simplifying the logistic related permissions/clearances/renewals and to
build a database of strong exporters to pass on the export related scheme benefits,
Government of AP will study feasibility of introducing a smart card called - “Export Card”
to exporters with good track record.

b. The smartcard envisions to entitle the holders to minimum inspection and speedy
clearance of all proposals by all Departments of the State Government.

13.5 Trade information flow

State EFC in collaboration with EPC, DGFT, FIEO, EXIM will prepare newsletters specific to
identified products in the State. A handbook on basics of exports, subsidies and incentives
available to exporters, documentation requirements will be made available on Integrated Trade
Desk.

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ANNEXURES

Annexure I: District-wise Proposed Warehousing capacity upgradation

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Annexure II (a): Leading sectors of export for Andhra Pradesh

% Share in % Share in AP
HS Code Description India (INR Cr) AP (INR Cr)
Indian Exports Exports

Fish and crustaceans, molluscs and other aquatic

3 invertebrates 46322.74 14934.42 32% 23%

30 Pharmaceutical products 119578.54 5923.43 5% 9%

72 Iron and steel 71860.44 3630.48 5% 5%

29 Organic chemicals 134160.96 3409.67 3% 5%

Mineral fuels, mineral oils and products of their distillation;

27 bituminous substances; mineral waxes 327419.79 3808.59 1% 6%

09 Coffee, tea, maté and spices 24287.69 2156.77 9% 3%

33 Essential Oils & Resinoids 17374.17 1921.70 11% 3%

25 Unprocessed salts and Building Stones 14741.57 1862.51 13% 3%

16 Processed Meat 3443.95 1797.60 52% 3%

68 Processed Stone and other construction materials 12492.30 686.50 5% 1%

52 Cotton 44133.88 912.92 2% 1%

85 Electrical machinery and equipment 109849.25 868.33 1% 1%

61 Articles of apparel and clothing accessories 57933.63 807.81 1% 1%

84 Machinery, mechanical appliances 156338.17 674.49 0% 1%

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Annexure II (b): District-wise focus sectors and corresponding product groups

Focus Sectors Products Districts

Metals Iron & Steel 1. Kadapa
2. Visakhapatnam
Fuels 1. Organic Chemicals 1. Visakhapatnam
2. Petroleum Oils 2. East Godavari
3. Krishna
4. Kadapa
Chemicals 1. Pharmaceutical Products 1. Visakhapatnam
2. Essential Oils 2. Krishna
3. Kadapa

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Focus Sectors Products Districts

Vegetables 1. Coffee All Districts
2. Spices - Ginger, turmeric, Chilly
3. Edible Fruits & Nuts - Mango, Banana, Cashew
4. Lacs, gums, resins
Transportation 1. Ship, Boat & Floating Structures 1. Visakhapatnam
Textile & Clothing 1. Cotton 1. East Godavari
2. Clothing accessories 2. Krishna
3. Guntur
4. Nellore
5. Chitoor
6. Anantapur
Machinery 1. Electrical Machinery - batteries, semi-conductordevices 1. Visakhapatnam
2. Mechanical Machinery - spare parts 2. Guntur
3. Kadapa
4. Anantapur
Food Products 1. Raw Fish & Crustaceans 1. Visakhapatnam
2. Processed Meat, Fish, Crustacean 2. East Godavari
3. Krishna
4. Nellore
Minerals 1. Barytes 1. Krishna
2. Granite 2. Guntur
3. Gems & Jewels 3. Prakasam
4. Nellore
5. Chitoor
6. Kadapa
7. Kurnool
Miscellaneous 1. Art & Handicrafts 1. Vizianagaram
2. Toys 2. West Godavari
3. Furniture 3. Prakasam

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Annexure III(a): Seaport Infrastructure

S.No Location Facility

1. Visakhapatnam MAINTENANCE OF FISHINGHARBORS
Kakinada Proper maintenance of fish landing platforms, internal roads, drainage facility, provision for
regular potable water supply, toilet facilities, availability and hygienic handling of ice, proper
Machilipatnam
waste disposal system
Nizampatnam
2. Visakhapatnam  Aquatic Quarantine Facility to be expedited
Kakinada  Expand Berthing facilities for cargo vessel
 An enclosed space or scanners may be provided for examining marine products within the
port premises which may prevent contamination of product by opening in openspace.
3. Machilipatnam Large cold storages near to the port area
Kakinada
4. Machilipatnam
Space for storing Minerals for export on long lease of 5years.
5. Kakinada Truck Terminal & CFS

Annexure III(b): Airport Infrastructure

S.No Location Facility

1 Visakhapatnam Airport  Connectivity to Europe, Africa, Middle East, Singapore
 Vault facility for Gem & Jewelry export
 Cargo & Cold Storage facility
 Air Cargo Complex at Bogapuram Airport

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Annexure III(c): Road Infrastructure

S.no Location Facility

1. Kakinada Warehouses with Mechanized loading and unloading
2. Vijayawada Cold Storage
Bhimavaram
Tadepaligudem
3. Chittoor Mango- Vapour heat treatment and storage
4. Kurnool Banana export pack house
5. Guntur Integrated Packing, loading, trucking facility
6. Kakinada Road Infrastructure with drainage to avoid flooding

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Annexure III(d): Proposed locations for development of Inland Container Depots, Logistic Parks and Sea ports

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Annexure III(e): Land Use plan for Multi Modal Logistics Park

S. No. Land Use Plan Area in Acres Percentage (%)

1 Railway Connectivity Zone 25 25%
2 Logistic Zone 75 75%
2.1 EXIM Zone 15 20%
2.2 Domestic Zone (Warehousing) 4.5 6%
2.3 Container Stacking (Open Storage) 9.75 13%
2.4 Green Areas / Open Space 7.5 10%
2.5 Transportation Zone 4.5 6%
2.6 Scrap handling 2.25 3%
2.7 Drain 0.75 1%
2.8 Admin, Commercial 3 4%
2.9 Utilities 3 4%
2.10 Internal Roads 6 8%
TOTAL AREA 100 100%

Annexure III(f): Land Use plan for Inland Container Depots

S. No. Land Use Plan Area in Acres Percentage (%)

1 Warehousing Zone 6.5 13%
2 Container Stacking (Open Storage) 8 16%
3 Green Areas / Open Space 7.5 15%
4 Transportation Zone 9 18%
5 Scrap handling 3 6%
6 Drain 2 4%
7 Admin, Commercial 5 10%
8 Utilities 3 6%
9 Internal Roads 6 12%
TOTAL AREA 50 100%

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Annexure IV: Facilities for Quality & Standards

S.No Facility Location

1. Drug Testing Lab Kurnool, Kadapa, Krishna, Vishakhapatnam and
Srikakulam
2. Cotton testing facility West Godavari, Krishna, Guntur Districts

3. Marine Food Testing Labs Vishakhapatnam, West Godavari, Krishna & Nellore

4. APEDA approved agriculture testing laboratories All Districts

5. Aquatic Quarantine Facility Vizag and Kakinada Ports
6. All Coastal Districts
MPEDA approved labs
 to issue Pre-harvest test certificates (PHTC) to
monitor chemical use in shrimp
 Monitoring hygienic handling to make Sashimi
Grade Canned Shrimp

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