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The Government's liberalisation and economic reforms
programme aims at rapid and substantial economic growth and integration with the
global economy in a harmonised manner.
The Andhra Pradesh Industrial Policy 2005-10 is aimed at
promoting industrialisation in the state. Incentives are being given to attract
investment in this sector. The policy promises 100 per cent stamp duty and
transfer duty reimbursement. Giving in to the long standing demands of the
industry with respect to high power cost, the state has decided to reimburse
0.016 cents per unit. Large industries will especially gain as an Industrial
Promotion Fund has been set up to cater to their specific problems on a
case-to-case basis.
Industrial Policy
The objectives of the policy are:
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To promote Andhra Pradesh as an
attractive
destination for industrial investment
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To market Andhra Pradesh as a competitive destination for foreign investment
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To attract and develop appropriate entrepreneurial leadership, management and
HRD systems
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To improve infrastructure by facilitating investment in industrial infrastructure in private sector
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To encourage establishment of New Tiny and
Small Scale Industries particularly in rural areas
to achieve the twin objectives of employment
generation and utilisation of local resources
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To encourage cluster concept to make the
industries globally competitive
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To develop effective regulatory mechanism for entry and
operation of firms
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To create a market driven
environment with the
private sector being the primary engine of growth Industrial Infrastructure Development Fund of US$ 37.23 million has been created to provide infrastructure to industry.
Infrastructure Policy
Development of quality infrastructure for industrial growth
through private participation has been given highest priority. In line with this
objective, the Government has constituted the Infrastructure Authority (IA) for
the rapid development of physical and social infrastructure in the state and to
attract private sector participation in the designing, financing, construction,
operation and maintenance of infrastructure projects.
The Government has provided all the recognised industrial
areas with facilities such as roads, electricity, water, drainage etc. In
addition, allied infrastructure such as uninterrupted power supply,
telecommunication facilities including Internet connectivity and information
kiosks, transportation links from industrial areas to towns have also been
provided.
The Government besides creating quality infrastructure, is
laying emphasis on creation and maintenance of critical infrastructure required
in the industrial estates. Ongoing schemes like Industrial Infrastructure
Development Fund (NDF) and Critical Infrastructure Balancing Fund (CIBF) are to
be continued.
Special Economic Zone Policy
The Government of India is enacting a Special Economic Zone
Act for streamlining the development of SEZs in the country. The State
Government would leverage the act for the advantage of SEZs in various parts of
the state for balanced trade and commerce with liberal tax, fiscal and
administrative regime.
Technology upgradation
Technology is the key element contributing to productivity,
quality, competitiveness and market acceptability of products. In a rapidly
changing global scenario, technology and business incubators have emerged as
useful instruments for innovation.
To provide technological support to the local industries, the
Government of Andhra Pradesh, Confederation of Indian Industry (CM) and
Technology Information Forecasting & Assessment Council (TIFAC) jointly promoted
Andhra Pradesh Technology Development and Promotion Centre (APTDC) for transfer
of technologies, providing technological know-how, commercialisation of
technologies, technology upgradation etc.
In line with this objective, APTDC is in the process of
developing "T" Incubator - a technology incubation programme which is an
innovative system designed to assist entrepreneurs in the development of new
technology based firms.
Apart from this, the Indian School of Business "K-hub" was
developed to create linkages among the technology providers, academicians,
incubators and business development services. This will help promote development
of high quality entrepreneurship and pool & share international best practices
in incubation/ mentoring processes.
Export promotion
Export plays a major role in the industrial and economic
development. In order to boost exports, the State Government is offering a
special package of incentives to Export Oriented Units (EOUs).
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Sales tax exemption on purchase of raw materials
for EOUs
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Andhra Pradesh State Financial Corporation (APSFC) will extend financial assistance to EOUs
at concessional interest rates
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Export industries will be given a
30 per cent grant for ground rent for participation in the international trade
fairs, subject to a maximum limit of 9 sq mt
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To sensitise exporters, programmes will be
conducted with the assistance of EAN India and
SISI on bar-coding
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Export awards will be provided to EOUs to recognise best performing units with respect to quality,
R.&D and performance
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A state-of-the-art external
information centre to
be set up in collaboration with local chambers of
commerce and associations and reputed
organisations for dissemination of information and
assistance to the export fraternity of the state
Incentives
In order to address the specific problems of existing large
industries, the Government may offer a special package of fiscal benefits on a
case-to-case basis. Exact fiscal benefits would be decided by State Investment
Promotion Board (SIPB) from time to time depending on the nature of the project,
investment, location, employment etc. An Industrial Promotion Fund with adequate
provision will be created for this purpose. Guidelines and modalities for
operating the fund will be decided by the SIPB.
Intellectual Property Rights
Intellectual Property Rights like any other property right,
allow the creator or owner of a patent, trademark or copyright to benefit from
his own work or investment. To encourage industries for innovation in product
development, 50 per cent of the expenditure incurred in obtaining the patent
will be reimbursed to enable the industry to protect the invention.
In order to encourage innovation, units having patents for
products would be given purchase preference in all purchases made by government
departments.
Fostering industry clusters
Clusters allow small local enterprises to make more effective
use of underutilised resources (small scale savings or family labour) generating
incomes that they cannot otherwise avail of while operating in isolation.
The Government of Andhra Pradesh has identified six
industrial clusters for development under "Industrial Infrastructure
Up-gradation 30 Scheme". Two clusters, namely, Pharma Cluster near Hyderabad and
Auto Components Cluster in Vijayawada have already been approved by the
Government of India for assistance and these are in the process of development.
The other four clusters, namely, Marine Food Processing
Cluster in Bheemavaram, Powerloom Cluster in Sircilla, Leather Cluster in
Hyderabad and Precision Engineering Tools and Components in Ranga Reddy are
under consideration by the Government of India. Apart from the above, fourteen
more clusters are in the process of development under the assistance of the
Development Commissioner Small Scale Industry (DCSSI).
The Government accords highest priority to promotion of
clusters in the state. The individual units in the clusters are eligible for the
general incentives offered by the Government under the policy. Apart from this,
clusters are also eligible for a special package of incentives for which the
State Government has created a fund under the cluster development programme.
To capitalise on the natural resources and other advantages
available in the sub-regions, the Government has proposed to develop industrial
corridors in various parts of the state for sustainable and equitable industrial
development.
e-Governance
The state has undertaken wide-ranging measures to nurture its industries: simplified, less restrictive
regulations, labour and fiscal reforms, incentives etc. In line with this
objective, the state has enacted a law for single-window clearances. It is the
first state in the country to have a law for single-window clearances, which
ensures that all clearances to investors are given within a specified period.
The state has been qualified as "flexible" in its approach to labour regulations
and "good" for its simplification of rules and regulations. It introduced the
self-certification concept, common annual returns in place of multiple returns
with simplified registers and zero inspection regime through accredited
agencies.
IT Policy
The state's pre-eminent role as a global software provider
creates impetus and significant opportunities for the future. In order to
capture the potential of the IT sector, the Government has announced an
exclusive policy for the IT sector with an attractive package of incentives.
Biotech Policy
A separate Directorate for Biotechnology is being created.
The Government is in the process to enact a new Biotech Policy with attractive
benefits soon after the announcement of the Government of India's Biotech
Policy, to accelerate the growth of biotech industries in the state.
Agro Policy
By 2020, Andhra Pradesh will have a modernised and vibrant
agroindustry, bringing organised activity into rural regions. Agro industry will
create higher incomes, export earnings and employment in rural areas, thus,
stemming migration to cities. In addition, the state will have established an
unbeatable lead over other Indian states in various agricultural sectors in
which it has significant strengths.
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