I

GOVERNMENT OF ANDHRA PRADESH

, ABSTRACT

Indust es & Commerce Departmcnt - Incentives for setting up New

lndustries in Andhra Pradesh- Industrial Investment Promotion Policy for 05-
2010- Ordels- Issued.

INDUSTRIES AND COMMERCE (IP) DEPARTMENT

G.O.Ms.No.178 D
Rea

I G.O.Ms.No.l08, Industries & Coramerce (IP) Department, Dated -96

2 O.O.Ms.No.241, Industries & Commerce (IP) Department, Datedi15. .98
3 G.O.Ms.No.9, lndustries & Commercc llP) Department, Dated:5-1-2 1
G.O.Ms.No. 141, Industries & CommercellP)Department,Datecl:3-7-

ORDER:

Govenrment iti extending variolls Incentives for encou

establishment of new industrial units in thc state since 1961. In the
3d read above, Govemment have issued new Industr.ial policv 2OOO- 005,
which was concluded by 31.3.2005.

2) After detailed examination and after having discussions with v

d !rial or ganr sation s s uch as c Iil PS IA FI c C and akio c into
id tio f datioils t n du tr ial !rociation p li cy o f s
S te vtz, Karn al.a, M ah arastra, Guj ara t es t Bengal d to ak a
with phas Creation of Qu ality In fras ctu n Li sing In ts,
B d nI d u t al Com p etency 1n Qu ali ty Com p titi ort
P tion En n men tal Frien d ly c lim t ttractin M ega estm ts,
ttractin g F rergn D lrect In ves tmen t, Acce to M ai ke t, ln le lectu al Pro
Righ s Fo crln In d u stri al Clu I ers, Preven ri n o f ln du s tal ess,
Preventing Migration, Permitting Industries to Exit, towaids better Regu
Policy Measures, Thrust Sectors, the Gover.ment approved a new 'lndu tial
InvesLment Promotion Policy 2005-2010' as appended it AnnexureJ

J Und th n ln du trial es lmen t Promotio n Po lcy 20 0 5 2 0 1 0' the

Co pp IO ed th e f' llowing llsc al b efi ts covenn h e ca tego rles
a)
S S] Ti ny u ts b SC ST En [te pre n rS o m n En t repren eu r s d) its
o the than S S /Tinv Large & Medi u rn Scale In d trles an d M I Proj
3.1.O SSr/ y units
Small Scale Industry (SSI) meflns a Unit having the investment
t
u) ro fiirit as aenneJ -iy the
on
and machjnery {productive only)
Covernmen( o[ India faom time to time.

i Tiny.
.lndustry mears aul industry in which Investment plant
machirrery (Productive only) up to limir as defined
i by rhe cov of
India from time to time.

3.L1. I00o/o reimbursement of Sta-rnp (.uty and transfer

duw Daid bv
rnoustry on purchase of land mei nt for industrial
use.
3.1.2. 1OO% reimbursement of StamF duty for Lease of Land/Sh
Buildings.

P o
 ',4
f---: .1
3.1.3. tOO% reimbursernent of St:
i"d""tqr;; r,n;;;;:.""'#j *:Y#:"transrer
dutv paid by the

3.1.4. 25yo rebate on land cost in 'i

limited to Rs s oo lalhs' !r{
s.r.s. power cost w,r, o" ifl
"",-0r""'i."/l,T's ,'ij,[

';;r*ttHfr t**rrli;"rf j,,,,t'-.,ffi

ffi i..r
3.1.6. l5Vo investment subsidy on
investment will be
subject to a maxirnu-
"i "".
,T;1ffiitl siven
3.1.7, An additional investment .,lI
invesrment rimited t"
ilff,"dl.t:i#
3.1.8 25a/o of the t.uK
";.;l;o
pajd durin!
";]Jfi:.frn, "1.4

,"?.H*iH
lt"ffi *,.;gi'#xi,:",i"rxk#ffi
3.1.9. 3olo interest subsidy on prim(

Hfi Lri?Ht:i;,1l.f,f 'fi.,:t Jiil.Ii:'.T,fl::T: ':

;iI
3,1,I0 5% of projecr cost r,fill be Dr ,_t
:*iHi":Tl*mti:ii$'"1;fi.:":x'.'"'i"""""'H:';:
,;T::rl#i1;i1o^,"a"iiu.ioni"6fifi .;:.J""r.",i1
ft ffi ffi
3.1.1 l. 8olo subsidy o[ capital equipment for technoloFr
upgradation.
3. 1. 12. soyo subsidy on thQ expensc:
i rnq:rred for quality certil'ication
rrmrtecl to Rs. l.oo lakh.
L*
3. L I3. 25% subsidy on spqcific cleaner
ler ploducdon *----
Dr6.t,,^ri^- measures
to Rs.5.oo Lakhs- llmited

3.1.14. 50% subsidy on thpexpgnss^s

lncurred for Patent re8islration
lrm,tecl to Rs. 5.oo Lakhs-

3.2. 0. w en En 9UtS
Women entrepreneurs mean
'ffi ;:-:?"'":i"#'i*'*H::$il);:f
those r

S:.['i:]i,f i;'Tf,;""; .I

3.2. l,
.lOOo/o
reimbursement of Sta-n ,rl
indusrry on purchas" paid by the
r;l;;.,f"*,ryr#,ififfi,J*:,1 I

3.2.2, t 0O% reimbursement of

Starnrp duty for Lease
Eurldings. of Land/shed/

3.2.3.
.looo/o reimbursement of Stam I
industry on nnanliJ;;;.:;'X j:y,*il:"trarsrer dury paid by the ,l

3.2.4. 25% rebate in land cost

in IES/IDA,S :imited to RS.5.OO Lakhs.

P.T.o.

, ,,d
 3,2.5. Power cost will be reimbursed @ Rs.0.75 per unjt during the lrs t
ye of the po tcy and there afte a for th re ma.] c fou I yea, the
reim bur m t ld be regu lat ye arl v
ke p1 c 1t1 f the ch emges IN the tadff tru c tu re to en
that power cost to the industry is pegged down to the first
level.

3.2.6. 15o/o idvestment subsidy on fixed capita.l investment will be

to SSI/Tiny Unlts subject to a mdximum of Rs. t S.OO lakhs

3.2.7 5olo Additional Investment subsidy on fixed capital investment

Iimited to Rs.5.00 La.khs.

3.2.8 Another syo investment subsidy on fixed capital investment li

to Rs,5.O0 lafths for womcn belongs to SC/ST Community.

3 9 U p tg 2 5a/o of th e tax paid d u rln I

e finan ct a.l year will be p1 ou
b ack to Indu s tri es as a gran t by th Covern en t t owa:'d s
paymen t o f d u rl g next year H ch gra! t shall
remi tn n et cash flow t Govcrnrrlent. Benefit will be avail le
f 5 year' fio m the dale of com em en t o I Prod u ction e
6 ye

3.2.10.5%-ofrrroject cost will be provided as seed capital as sl to

SSI/Tiny Units as a grant fo! industries, whicir were
seed capital assistance by prime Lending Institutions
Nationaj Equity Fund Scheme Iimited to Rs.5.00 La_khs.

3 2 1 I 5o/o ln teres t S u bs idv on Prime L(ndi n Ra te PLR) will be gl

c on
th term loan ta.k by Ti v SSI lndu s trial nl ts su bj ct a
axlmum of 5 00 lakh per ye for a perlo d of 5 ye ars
3.2. I 2. 8olo subsidy on capital equipment for technolos/ upgradation.

3.2.13. 50o/o subsidy on the expenses incurred for quality certilication

limited to Rs. 1.00 Lakh.

3.2.14, subsidy on cleaner production measures limited to Rs.s

25olo
Lakhs-

3.2.15. 5070 subsidy on the expenses incurred for patent registration

limited to Rs. 5 Lakhs,

3.3.O. Vnits 9the.r tha! SSI/Tlnv untt. lLeIEe & Medtum Scale
IECcstdqsl
Other than SSI/Tiny units (Large & Medium Sca.le Industr-i es m ean s
ln du s try ich th e lnvestmen t on p an t and m h lnery (Pro
only ss than R s 1 00 crore s exce p t J n ts
3.3. I 100% reimbursement of Stafip dLty and transfer duty paid
bv
the industry on purchase of land mearrt for industrial "uie_ '
i

3.3.2. I0070. reimbursement of Stamp dury for Lease of Land/Shed/

BuildinSs.
l

3.3 3. 10070 reimbursement of Starnp du y and Transfer dury

,
Daid bv
the industry on financia.l deeds ar d mortgages etc. ' '
l

3.3.4. 25% rebate in lard cost in lEs/lDA,s limited to

RS.S.OO Lal<hs. I

P.T

I
I
 i:+::
' "

3.3.6.
#piis.[."ll*:*tr*" r;:;:#*ffi
2So/o ot th
back to
payment
:[.itl**difl-],+#*ft ,J[1fr
years fro

3-3.7. Infrastructure like

ll;
roads n

3.3.8.
***$*****ti",,*;,l,r$#
SOo/o subsidy on
the expense
Iimired to ni. r.OO-i[f. ""cs rncured for quality certificarion

3.3.9. on cteaner producrion

i:f;:ubstdy heasures limited to
Rs.s
3.3.10. SOyo subsidy on the-h"'r"'rrs
expens( lncurred
lirnited to Rs. s for patent regisl.ration
3.4,O
T*.*
r;::i:l;:l*:n3 *:.::i:.*,fl":"it, which sets up with
a capitar

i',,'
#ii#;jiil,;li#"1":."L t?,,il;il::T,Til,,"i:.,ff.,?H;
3.4.2.
T,lT; jii"lilf*:Hl,,y;1":il:l* lor-made beDelits
to
3.5.0
:x case to case basis.

a t, ffi""*p".,"""
,r,lr,;""r",1",fJ in".,rred for quality
certification
,.r ,
i3li"Tli,Xlo;o,f"rff:..* ,*."ed for patent resistration
3.6.0.

3.6. r.

mffi*if,a'mr;*ffi i
r!'

I
11
,., Jl
P.T,O
{
1
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1

tr

/ 3.7.O. Other benefits lto all cate€orlesl

3.7.1. Land conversion froln Agriculture use to industrial use ll

continue to be automatic on payment rcquired fee as per the ru es
in vogue.

3.7.2. All industrial units continue to be exempted from paymen of

NALA tax,

3.7.3. Govemmeot will ensure stable prices of Municipal water 3

yea-rs for industrial use.

3-7.4. Reservatlon of 10b/o of waier for industdal use fiom lhe exi
projects as well as luture projecls will continue

4) To promote Andhra Pradesh as athactive and competitive des on

lor industrial investments, tbe State Government have oflered us
n en ti es b en e flts to a1l e 1gl ble n ln du st a1 u t s se t u p n the S late
ln rh M u n ct p al Co rpo ration limi ts of sah11 apatn am U ayawada d
Hyde r ab ad an d omm trc o!!rmerc le I P lo d uction n fter 1 4 2005 t
be fo r 3 1 o 1 o Proj cts 1n ving substan tial Bxpan Di rsifica of
ting d s tr1 s 1n th eligib le li n ot acti ties aJe al so n title d for ben ts
ffe I ed u nd I th e po licy The 1S t o I
'rne Iigible n du s tri es ac ti ties as !
G o M s N 9 1-I d u str 1e s & c mmetce 0P) D e partmen t, Dated: 2 00 ad
with G.O.Ms.No.141, Itrdustries & Commerce (lP) Department, Dal ed 3 7 2
is appended to, as Annexure II, till further mcdifications of the list.

5) Necessa-ry ameldments/ Orderi wi-l be issu ed by the coIl ed

Departments. Deta.iled guidelines wiu be issued by the Commission of
Industdes sePaJately

6l This order issues with the co[currence of Finance (Exp,l&C) D t,

uid. th"i, u.o.No . 129701447 /Exp.r&'c./05, Dt 19-05-2005.

(BY ORDER AND IN THE NAME OF TH] GOVERNOR OF ANDHRA PRAD

D.LAKSHMI PARTHASARATHY
PRINCIPAL SECRETARY TO GOVERNMENT &

To
The Commissioner of Industries, Hyderabad.
The Accountant General, Andhra Pradesh, Hyderabad.
The Chief Secretary to Government, Hyderabad.
The Prl.Secrelary to Chief Minister.
All P vate Secretaiies to the Ministerc.
Copv to:
Thi Pay andAccounts oflicer, Hyderabad.
All Dist ict Collectors.
All Heads of DePartments.
All Departments of Secretariat,
All Govt. Coopanies/CorPns.
The Fin.(Expr.lnds) DePt.
AII General Managers, District Industries Cenlre in the State
AII Sections in the DePt.
SF/Sc.
// FORWARDEDT: BY ORDER //

SECTION OFFI R

I
 ANNEXURE-II

t.

i':J"{:";f, I"St*..?1.;;..:f ;-ilIf;;*,?*,i;.,?l;;

..":il
gi"fr:::T;;J""lude Decorticaring, Expeuins,
crushjns, Roastins,
2
i,[l;3il,ili,[i,:ll,:li,HJlj,]*:f,
*i,i:.,*X,I,i,;;#"ffit g"y1^
3 Coffee RoastinS,
Grinding,
Ice Cream, Ice Candy,
Kul&, Ice fruit, p.rs/, Tuty
5.
Frvi1y s1..
f iii??lili"""ii"1?i:F.8f,;l,n"o*"rr,chewing*.""*r,**"
,l
6 Aerated Waters including
i
soft d.inj(s.
7
includins Raw nut
il::#*'* Processing, Chikini power
and pan
8. Khandasari Sugar
and Sugar Milis,
9. Powders of Chilly,
turmeric, Masala
spices' ' curry' sarabar
l0 sweets. etc.
,{,
11. Picktes & Chutnys
other than .lOOo/o EOUS.
t2. Beer and other Alcoholic
Drinks.
13. Rectified .Spirit (Alcohol)
from out ofMolasses.
14. Alcohol based lndustries
except phat
t5. -t"euticals ard Drug lndustries.
cotton cinning Mi,".
16.
ilil
Cotton/Jute/Iron
Scrap Bailing processes.
17. All table meat, animal
reaiing/farmir
pourtrv' pisserv
18. Hatchery (other "*e etc
rhan
19. Slab polishing "*.;,:;;;t
except Granite
and M.
20.
orring & porishins
soap makins
units n*
*"*,;';;*o'"
21.
- -' r'ower criven machinery,
Manure mixing
industry. ,&i
22 Chloral Hydrate.
23. Products of Catnphor
24. Naphthatene Balls.
25. Shampoos and
other cosmetjc
items except
26. those having
Tooth power/paste. ISI ma.rk i"
w/ -2-

27 Distilledes, Breweries.

28 Varnishes and Thinners.

29 Lime Kiln / Burnt Lime/ Hyd.rabad Lime.

30 Treadle operated conventiond printing presses including Off_ litho

etc.

Power laundlies.

Beedi/cigaratte manufachlre and other tobacco products. ,

il

Tobacco baJons/tobacco re-drying/processing.

34. Saw-mills and all types of wooden fumiture manufactuing

wood based laminated products.

Road Metal/ Stone Crushing / Coal pulverising/ Ready concrete wi

Drinking Straws.

37. Cinematography/ Video Pallours /Theatres & Videography.

38, Book Binding/ Note Books / Exercise Note Books / Registers ted
File Pads / Omce files etc.

39 Tailoring other than read]rmade ge_rments.

40 Steel Stfi.lctural and fabrication works other than heav-y structurals,

Aluminum re-rolling rods, alld utensils manufacturing.

42 Slainless Steel utensils.

43 Steel re-rolling mills, rolling rods, including Tor steel Angles, Ch

Flats etc.

44 G.l. Buckets, Garnelas, Boiling pans, Trunks, Spades, Mamotees,

s
and Bins.

45 SteelJurniture-except units set up in town/village with population

1,00,000 per 1991 census.
dl,'
46 Corrugated Sheets frorn GP/Bp shets.

47 Hanilton poles and Tubula_r poles.

l
48 Steel Gates/crills and Bright bars.

49. Mangalole Tiles/Asbestos products-

50. Hotels except (a) rnotels (b) Hotels set up in State Govemment a
ed
tourist centres of Districts.

51. X-ray clinics and clinical/ pathologicat laboratories and scanning,

M.
Tests.

Photo Studios and colour Film Laboratories.

All industries of mobile nature like rigs, concrete miing plants,

metal mixing etc., including site oriented industries.
 -3-
54 Servicing and/ or Repairing uniLs, excluding:
a) Auto Servicjnq and/or
repairing units; b) Retreadine ur c) lndustriat
ruioo,o?i.1,'Ii'c#".i'.*'llB",,i|"t"' material- tesri.,
erfl uenr Lrearmenr pr.,,t"; ri' ceb
"i#::tl',li J%:il:i:;*.":ii"ft"j
treatment, Electroplating and Galvar
j*;;';,";,,ft:"jl-r"X*iJ"",?#:"il",J5"i"i:;
,-xeroxu,,,irss
prrnung unlts.

55. Composr(e units set up for manufa cture of

rneligrble item.
an eligible item along with

56. Mini Steel plants.

Steel Ingots/Billets.

58. Alloy Steel Castings ManufacturinE units with

tnal,r .oo xv,r capa%i,v.*'''-"'""""
induerion furnace more

59. Fer.o Alloys Manufacturing.

60, calcium Carbide a.d Silicon Carbide Manufacturing

D.LAKS HMI PARTHASARATHY

pRrNcrpAL sECRsrARy
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