Andhra Pradesh

Introduction

  • Andhra Pradesh is the eighth largest state in India covering an area of 160,205 km2.
  • State has second largest coastline of 974 kms and shares border with 5 states and Bay of Bengal.
  • 9 of the 13 districts of Andhra Pradesh have sea coast along the Bay of Bengal, which has created manufacturing and export centric industry.
  • The state has Thermal Power Plants with a capacity of 5610 MW and Hydro Power Plants with a capacity of 3693.20 MW.
  • It has a road network of around 1,000 kms. Railway network of 5,046 kms and one of the country’s largest ports at Vishakapatnam in terms of Cargo Handling.
 
State covered 2016-17 (April’16 – December’16) In US$ Millions) %age to total Inflows (in $US)
ANDHRA PRADESH (HYDERABAD) 1,638 4

Investment Promotion Agencies

Department of Industry and Commerce

  • The Department of Industries and Commerce is primarily responsible for the development of industries and small-scale industries. The Department also plans and implements various schemes for industrial development in the State.
  • The main functions of the Industries and Commerce Department are:
    • Assist and guide entrepreneurs in setting up industrial units.
    • Enable entrepreneurs to get different industrial approvals and clearances from various departments / agencies from a single point.
    • Register small industries / tiny industries / small-scale service and business enterprises.
    • Sanction incentives to industrial units.
    • Create a transparent, congenial, hassle-free and business-friendly environment for accelerated growth of the industries in the State.
    • Provide marketing assistance to the local industrial units.
    • Rehabilitate sick small industrial units and so on.

State Efforts to Facilitate Investments

Andhra Pradesh Special Economic Zone (APSEZ)

APSEZ is Multi-Product SEZ developed over an area of 5595.47 acres at Atchutapuram and Rambilli Mandals of Visakhapatnam District in close proximity with road, port, air and rail.

 

Andhra Pradesh Industrial Infrastructure Corporation (APIIC)

APIIC has developed over 320 Industrial parks which includes IT, Bio-Tech, Automotive, Apparel, Pharma, Leather SEZs with its expertise in providing Industrial infrastructure.

 

Petroleum, Chemical & Petrochemical Investment Region (PCPIR)

PCPIR is located between Visakhapatnam and Kakinada. It is the largest PCPIR in India spread over an area of 604 Sq.Kms with the committed investment of Rs.1,74,654 Crores approx.

 

Pharma City, Vizag

Located at Parawada – 33 Km South of Vizag and easily connected by road, rail, air and port. This is an industrial park with globally competitive facilities developed by Ramky Group in association with Govt. of Andhra Pradesh and provides plug & play facility for Pharma Units. It is an ideal destination for Bulk Drug, Pharmaceuticals & Fine Chemical units with leading industry players already present.

 

IFFCO Kisan SEZ Limited

IFFOC Kisan SEZ is located 20 Km north of Nellore, has a dedicated railway siding and is three hours’ drive from International Airport, spread on both sides of NH – 5. It is an agribusiness based SEZ based on the concept of Agroparks. It comes with many customs duty and sales tax concessions provided by the Government of India to promote economic activity in notified special economic zones spread over 1000 hectares and situated in Nellore District of Andhra Pradesh on the Basin of Pennar River.

 

Sri City

Sri City has been divided into zones for serving the diverse needs of the manufacturing and service industry. Located 55kms from Chennai on the border of Andhra Pradesh and Tamil Nadu. It is well connected by road, rail, air and port.

The industry-specific zones include a Special Economic Zone (SEZ), a Domestic Tariff Zone (DTZ), and a Free Trade and Warehousing Zone (FTWZ) spread over 6000 acres. Key industries in Sri City are Automotive, Engineering, Apparel & Fashion, Electronics H/W, Pharma, Food Processing, Renewable Energy, IT/ITES, Logistics & Warehousing & other ecofriendly industries.

Highlights of Industrial Policies

Industrial Investment Promotion Policy

  • Reimbursements of Stamp duty, transfer duty on purchase and lease of Land/Sheds/Buildings etc and also of Value Added Tax (VAT) /Central Sales Tax (CST) or State Goods and Service Tax (SGST)
  • Rebate in land cost in Industrial Estates/Industrial Parks and Land Conversion charges.
  • Fixed power cost reimbursement Rs.0.75 per unit (upper ceiling) on the proposed revised rates (2010-11) for 5 years from the date of commencement of commercial production.
  • Reservation of 10% of water for industrial use.

Focus Sectors

The some of the key sectors in the state include Pharma, Automobile and Textiles etc. The state is also emerging in Information Technology and Biotechnology.

Andhra Pradesh is the largest producer of Mica in India along with other minerals found in the state including limestone, reserves of oil and natural gas, manganese, asbestos, iron ore, ball clay, fire clay, gold diamonds, graphite, dolomite, quartz, tungsten, steatite, feldspar, silica sand.

AP Single Window Clearance Act, 2002.

  • Single Window Act mandating time-bound delivery of services
  • One stop shop to provide all necessary clearances for starting and operating an industry.
  • Payments to be made electronically to obtain timely approvals.
  • Micro, Small and Medium Enterprises proposals to be dealt with at District Level.
  • Other new industrial units exceeding MSME threshold to be dealt at State level.
  • A subset of 24 different clearances may be required to start an industry. Of these 13 approvals/clearances are necessary in the Pre-establishment stage and 11 approvals/clearances to be obtained in Pre-operation stage.
  • To create an inductive environment to provide all clearances and approvals, a time frame of 21 working days has been set as benchmark.
  • A Common Application Form (CAF) relating to Pre-establishment clearances and another CAF for obtaining Pre-Operation clearances.
  • Spot approvals for clearances like registration of Professional Tax, registration of Shops and Establishment etc. requiring only scrutiny of basic documents.
  • Parallel processing of clearances to expedite closure of application process and subject to obtaining other mandatory clearances.
  • Inspection by private technical experts in case of boiler registration.
  • If clearances not granted under stipulated time, they will be deemed to be granted as self-certification.
 

Government of Andhra Pradesh has identified 10 thrust areas for greater focus:

  • Aerospace & Defence
  • Agro & Food Processing
  • Automobiles& Auto Components
  • Electronics & Information Technology
  • Energy
  • Manufacturing
  • Mineral based industry
  • Leather
  • Life sciences (including
  • Pharmaceutical, biotechnology & medical equipment)
  • Petroleum, Chemicals, (including Fertilizers) and Petrochemicals Textile & Apparel
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