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Doing Business in Andhra Pradesh

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Obtaining approvals

An indicative list of approvals with timeframe for setting up business in Andhra Pradesh

List of approvals
and clearances required

Departments to
be consulted

Estimated
time for  clearance (in days)

Building approval

Municipality / UDA / TCP

7

Power feasibility

State Electricity Board

7

Power Connection

State Electricity Board

23

Panchayat Clearance

Gram Panchayat

7

Factories Clearance

Factories Department

7

Commercial Taxes

Sales Tax Department

7

Water and Sewerage Clearance

Pollution Control Board

7

Water Connection

HMWS & SB"

23

Pollution Clearance

Pollution Control Board

60

Financial Clearance

State Finance Development Board

21

Land Acquisition

Municipality / UDA / TCP

15

Land allotment in Industrial area

Municipality / UDA / TCP

7

Alienation of Government land

Municipality / UDA / TCP

15

Conversion of land for Industrial purpose

Municipality / UDA / TCP

45

*UDA: Urban Development Authority; TCP: Town and Country Planning
*HMWS & SB: Hyderabad Metropolitan Water Supply and Sewerage Board
Source: Commissionerate of Industries and Commerce

Cost of setting up business

An indicative table on cost of setting up business in Andhra Pradesh

Manufacturing

Land (US$ / hectare)*

373,416

Labour cost (US$ / man year)**

1,573

Services

Occupation costs

 

(US$ / sq ft / year)

18.4

Employee cost (US$ / man year)***

Software developers

6,383

Team leads

14,893

Architects

21,276.5

Project managers

31,915

Common heads

Cost of capital****

10.57

(Prime lending rate, per cent)

 

Electricity (US cents / kWh)***

Metropolitan Area

9.1

Non Metro Area

9.4

*Land cost has been estimated by computing the average cost of land at various Industrial Parks in Andhra Pradesh.
**Source: www.lndiastat.com
**KPMG Analysis on costing for an IT venture in India
***Estimated by computing the average Prime Lending Rates of prominent public sector, private sector and foreign banks in India
****Source: www.indiastat.com
Note: Exchange rate used is INR 47 per US$

Contact for information

State Government Website

www.ap.gov.in/

Andhra Pradesh Industrial Development Corporation Ltd (APIDC)

Andhra Pradesh Industrial Development Corporation Ltd was established in 1960 by the Government of Andhra Pradesh for planned development of medium and large scale enterprises in the state, offering a wide range of financial and consulting services. APIDC promotes the process of industrial development undertaken by the Government. It has an authorised capital of about US$ 24 million and paid up capital of US$21 million.

Andhra Pradesh Industrial Development Corporation Ltd
Parishrama Bhawan
5-9-58/B, Fateh Maidan Road
Post Box No 1049
Hyderabad 500 004
Tel: +91 40 23235253-56
Fax: +91 40 23235516
Email: apidc@ap.gov.in
Web: www.apidc.org

Confederation of Indian Industry

(CM) Information on markets and opportunities for investment in Andhra Pradesh can also be obtained from Confederation of Indian Industry which works with the objective of creating a symbiotic interface between industry and government.

Confederation of Indian Industry State Office
I-1 1-252/9, Regal House
Plot No 7
Moti Lai Nehru Nagar
Begumpet
Hyderabad 500 016
Tel: +91 40 27765964
Fax: +91 40 27766116
Email: cii.hyderabad@ciionline.org
Web: www.ciionline.org

 

Content Source: www.ibef.org

 
Andhra Pradesh
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