ANDHRA PRADESH

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POLICIES

ORDER/NOTIFICATION

SUBJECT

G.O. Ms. No: 305
Industry & Commerce (IFR) Dept.
Dt. 27.8.1991

State Incentives scheme for New industrial units being set up in the State_Extension of Incentives to Sericulture Seed manufacturing units

  • Till now Sericulture has been identified with Agricultural Sector, hence it has not been considered for extending incentives on par with other industrial units in the State. Keeping in view the enormous employment potential of the Seed Grainage units and as the climate conditions in the southern parts of the State are congenial for this industry, the Govt. hereby issue orders for making Seed Production units in the Sericulture Sector, eligible for investment subsidies on par with the other industrial units in the State.
  • These orders would have retrospective effect from 3.10.1989 and shall be in force till 2.10.1992

G.O. Ms. No:117 Dt 17-3-1993

New Comprehensive Scheme of State Incentives, 1992 (NCSSI):

In the New Industrial Policy Statement 1992 announced in May 1992 Government have proposed to extend the general incentive scheme (as in G.O.Ms. 498 dated 16-10-1989) and also the Special Schemes of State Incentives for SC & ST Entrepreneurs till the end of VIII Plan period i.e., 31.3.1997
Government have decided to introduce certain modifications in order to accelerate industrial development in the State:

  • All the districts in the State have been grouped into three areas for the purpose of incentives.
  • Concession under the New Comprehensive Scheme:
  • Investment subsidy for Thrust and Sunrise Industries and for Tiny, Small, Medium and Large Scale Industry
  • Deferment/Tax holiday on Sales Tax
  • Rebate in Electricity Charges (25% for a period of 3 years
  • Special Incentives for new Tiny and SSI to be set up by SC & ST Entrepreneurs
  • The above incentives will be inclusive of any incentives already availed and other such incentives extended by any other Government Agencies.
 

G.O. Ms: 198 Dt. 19-5-1993

Setting up a Documentation and Clearance Centre (CDCC) in the Commerce and Industry Department

G.O. Ms No: 317 Dt. 14-9-1993

New Comprehensive Scheme of Small Incentives for setting up of new industries in A.P Guidelines:

  • To accelerate Industrial Development, this NCSSI 1992 has been introduced with certain modifications with effect from 3.10.1992 upto 31.3.1997
  • Area of Operation: the Scheme covers the whole State except Municipal Corporation Areas of Hyderabad, Vijayawada and Visakhapatnam
  • The Scheme includes Thrust sector and Sunrise industry
  • Expansion/ Modernization/Diversification Projects with an enhancement of 25 per cent of 6 capital investment will be eligible for proportionate ST deferral for a period of 10 years
  • Investment Subsidy would be 15 per cent to 20 per cent upto maximum of Rs 15 to 20 lakhs of the value of fixed capital investment
  • Exemption on Sales Tax/Sales Tax Deferment
  • Interest subsidy : reimbursement at 6 per cent both on term loan and working capital loan
  • Power rebate at 25 per cent upto a period of 3 years
  • Special provision for SC & ST Entrepreneurs

G.O. Ms No: 335 Dt. 16-9-1993

Industrial Investment Promotion in the State - Guidelines and Operational Details for expediting clearances required to be obtained by entrepreneurs and constitution of District Coordination Committee of Promotional Agencies.

  • Government has approved certain guidelines and operational details for effective functioning of the CDCC and its district cells
  • Government approved the common application form I &II
  • The Departments/Agencies responsible for granting approvals/permissions/clearances shall adhere to the time limits specified in Annexure to this GO
  • In the event of the Department/Agency concerned failing to grant and communicate approval/permissions/clearances within the time limits under the relevant Acts and Rules a certificate shall be issued to the Entrepreneurs stating that the entrepreneurs had filed an application for approval, mentioning the date of receipt of the application by the Department/Agency concerned.
  • Annexure I
  • CDCC will have four functions :
    • Maintain the Data Bank
    • Provide guidance and information to the entrepreneurs
    • Expedite clearances/approvals/permission
    • Provide Escort services to L & M Industries
  • District Cell:
  • The GM, DIC will receive applications in common application forms from prospective entrepreneurs in SSI sectors
  • The Cell shall arrange necessary clearances/approval from the Departments/ Agencies concerned
  • IPOs will serve as Escorts Officers for Industries in the Small Scale Sector
  • G.O. Ms. No. 149 Dt. 31.3.1993

    NCSSI 1992 - Captive Generation Sets - Rules of Procedure for installation of new sets - Terms and Conditions approved

    • Through G O Ms No. 117 dated 17.3.1993 Government had decided to extend capital investment subsidy at 20 % on Fixed Capital Investment for captive power plants subject to a maximum of Rs 20 lakhs anywhere in the State except in the ineligible areas.
    • To enable Small Scale Industries to improve their production performance, overriding preference shall be given to such units for setting up the new DG sets
    • The terms and conditions for establishing new captive diesel generation station in private sector are approved as set out in the annexure.
    • The APSEB shall report to the Commissioner of Industries details of new schemes approved by them so as to enable the State Level Committee to scrutinize the claims for incentives made by the prospective entrepreneurs

    G.O. Ms. No. 238 Dt. 26.11.1993

    Promotion of Wind Technology in AP - Development of Wind Farms in Private Sector - Providing additional/modified incentives to the entrepreneurs

    • Since the demand for electrical power is increasing rapidly in various sectors like agriculture, domestic, industries, it is essential to generate electricity through Wind Farms. Therefore, the State Government have decided to entrust the setting up of Wind Farms to the private sector.
    • Government approve the following: additional/modified incentive to the private entrepreneurs by amending the relevant provisions made in G O Ms No.150 dated 30-5-1992
    • The capital subsidy to the extent of 20 % of the project cost subject to ceiling of Rs 25 lakhs
    • Government lands shall be given on long lease for 20 years, free of rent for the first five years and thereafter suitable rent shall be fixed for the remaining period of lease.
    • Incentives from APSEB
      • APSEB shall deduct 2% of the generated energy fed to the grid by the wind mills towards wheeling charges during the initial period of 5 years
      • Banking charges APSEB will examine the feasibility of allowing banking of energy only for a period of 8 months in a year
      • APSEB will charge additional two per cent of energy banking charges.

    G.O. Ms. No: 386 Dt. 26-9-1994

    New Comprehensive Scheme of State Incentives for setting up new industries in Andhra Pradesh - Sales Tax incentive for Expansion/ Modernisation/ diversification

  • Order to extend the ST concession to existing units undertaking substantial expansion/modernisation subject to eligibility criteria laid down below:
    • Date of commencement of Commercial Production shall be on or after 2.10.1992
    • Eligible areas means the three areas as specified in G O Ms. No. 117 dated 17.3.1993

    G.O. Ms. No: 390 Dt. 30-9-1994

    State Incentives Schemes for setting up new industries - Graded reduction of incentives in proportion to delays, in making applications for registration/claims:

    • In G O Ms. No.117 dated 17.3.1993, the New Comprehensive Scheme of State Incentives has been introduced for the period 3.10.1992 to 31.3.1997 under this Scheme, the State Level Committee has been delegated with the power to condone delays in filing of applications for claims
    • The State Level Committee took a decision that with effect from 1.4.1992 it would condone delays not exceeding more than three months
    • The Commissioner of Industries has proposed the following graded reduction in incentives in proportion to delays in making applications for registration and/or claims in respect of entrepreneurs filing the application for claims after the due date but within six months from the due date, only 50 per cent of the investment subsidy will be admissible and full amount of ST deferral/ST exemption and power rebate will be allowed
    • In respect of applications made with the delay of more than six months, but not exceeding one year, no investment subsidy will be allowed and full ST deferral/exemption and power rebate will be allowed
    • The intention of the proposal is to enforce discipline among the entrepreneurs

    G.O. Ms. No.187 Dt. 21.11.1995

    Sales Tax - Deferral of Sales Tax granted to Industries - Treating the deferral ST as deemed to have been paid on treating the amount as loan for the purpose of Section 43 B of Income Tax Act, 1961.

    G.O. Ms. No.75 Dt.14-3-1996

    Incentives - Deferrment of ST to Industrial Unit for Expansion/Modernisation/Diversification/Clarification

    • Tax deferral would be only on the amount of tax payable on additonal local sale over and above the previous level of local sales before expansion. In case the local sales after expansion is less than or equal to the previous level, the actual tax liability on such lower sales will be payable and they; will not be any scope for tax deferrral as they would not arise any additional tax liability.

    G.O. Ms. No: 34 Dt. 31-1-1996

    NCSSI 1992 - ST incentives for expansion/ modernisation/ diversification of industries - Amendment to G.O Ms No. 386 dt. 26-9-1994.

  • Amendment with regard to Definition of "Base Turnover" in view of certain difficulties to sanction ST incentives to those industrial units who have undertaken expansion/modernization of their units
  • The definition of "Base Turnover" (para 4) shall be substituted by the following :
    • The best production achieved during three years preceding the year of expansion or the maximum capacity expected to be achieved by the industry as per the appraisal made by the Financial Institution before funding the project, whichever is higher.

    G.O. Ms. No. 108 Dt. 20-5-1996

    Industries - Target 2000, New Industrial Policy 1995 - Scheme of State Incentives for setting up of new industries in Andhra Pradesh

    • In modification of all the earlier orders, Govt. have decided to introduce a New Industrial Policy called Target 2000 in order to accelerate industrial development in the State
    • The following incentives are offered under the Scheme:
    • Investment subsidy of 20% of the fixed capital investment but not exceeding Rs. 20 lakhs
    • Deferment/Tax Holiday on Sales Tax: Sales Tax Deferment limited to 135% of Fixed Capital investment in a period of 14 years
    • Rebate in Electricity charges: Maximum admissible rebate for 3 years will be Rs. 30 lakhs in respect of SSIs
    • Special Incentives for new industrial units set up by entrepreneurs belonging to SC/ST categories
    • Sales tax deferral/exemption for expansion projects, diversification, forward integration projects and backward integration projects
    • Investments in captive power plants, including cogeneration units are eligible for capital investment subsidy at 20% on fixed capital investment subject to a maximum of Rs. 20 lakhs, whichever is less

    * The above incentives shall be inclusive of any similar incentives of State/Central Government/Institutions/Agencies already availed and other such incentives extended by any other Government agency.

    G.O. Ms. No. 134 Dt. 1.7.1996

    Amendment to G.O. Ms. No. 108 dated 20-5-1996
    *Amendment:
    After para 7.00 of the G.O., the following shall be added:

    • Guidelines issued to G.O. Ms. No. 117 dated 17-3-1993 will be followed while implementing the Incentives Scheme. Govt. may amend these guidelines or frame further guidelines as deemed fit and necessary from time to time.
    • The Committee at the State and District level as constituted in G.O. Ms. No. 117 dated 17-3-1993 shall continue for the implementation of the present Scheme.
    • The Committee at District Level shall scrutinize and sanction the claims of the units of the concerned district, involving eligible capital investment of Rs. 7.5 lakhs and below.
    • The above amendment shall take effect from 20-5-1996.

    G.O. Ms. No.11 Dt. 16-1-1997

    Industries - 25 per cent concessional Power Tariffs Scheme of State Incentives for setting up of new industries in Andhra Pradesh - Extension of 25 per cent concessional power to New industrial Units.

    • 25 % concessional power tariff shall be allowed to new Industrial Units for a period of three years from the date of release of power or going into commercial protection, whichever is later.

    G.O. Ms. No. 20 Dt. 31-1-1997

    Industry - State Incentives for setting up of new industries - allowing incentives to industrial units to manufacture combination of products partly eligible and partly ineligible for grant of incentives

    • State Government has decided to extend State Incentives under the Target 2000 Scheme to such of the Units in whose cases cost of proportion of ineligible items to total production is less that 10 per cent in terms of value.

    G.O. Ms. No.186 Dt. 11-8-1997

    Extension of Investment subsidy to Solar energy equipment manufacturing units on par with wind energy units.

    G.O. Ms. No.101 Dt. 4-4-1998

    Sanction of Additional 5 % investment for flyash based brick units.

    G.O. Ms. 196 Dt. 11-6-1998

    Amendment to list of ineligible industries under Target 2000 Scheme.

    G.O. Ms. No.241 Dt. 15-7-1998

    Enlargement of ineligible area for sanction of incentives under Target 2000.

    G.O. Ms. No.242 Dt. 15-7-1998

    Allowing incentives on the assets under Hire Purchase Scheme - Amendment to guidelines.

    G.O. Ms No.243 Dt. 15-7-1998

    Incentives - Recovery of Sales Tax deferment amount - Amendment of guidelines.

    G.O. Ms. No. 476 Dt. 31-12-1998

    Industrial Development - Simplification of Procedures - Introduction of Simplified Common Annual Return for submission by Industrial Units

    • In G O Ms. No.122 dt. 21-8-1995 the Government have introduced a Common Annual Return for submission by various industrial units to the DICs concerned .
    • The Government have examined the simplified Common Annual Return and have decided that the existing Return be replaced by the simplified Common Annual Return (Annexed to this Order).
    • No Return other than this simplified Common Annual Return should be prescribed/Insisted upon in any department for an industry without the consent of the Industries & Commerce Department

    G.O. Ms. No. 9 Dt. 5-1-2001

    Industrial Policy 2000-2005 - Scheme of State Facilities/Incentives for setting up of New Industries in Andhra Pradesh

    • Govt. after detailed review of the industrial scenario in the State and also the overall impact of various Incentive Scheme implemented in the State hitherto and keeping in view the GOI advice to do away with all tax based incentives, worked out a NIP with greater emphasis on quality infrastructure coupled with gradual phasing out of subsidies and creating industrial environment for both foreign and domestic investors.
    • Highlights of the Policy:
    • Roads, electricity, water, drainage,etc. to be provided at the doorstep of the proposed industry in areas identified by the State Govt. as industrial areas
    • Govt. to facilitate creation of Telecommunication facilities including Internet connectivity
    • An Industrial Infrastructure Development Fund (IIDF) of Rs. 100 crores to be created starting in 2000-2001
    • 10% of the IIDF may be spent on Technology Development, Cluster Development and Market Support Systems for the SSI and Tiny sector
    • Wherever industries are located in areas other than industrial areas, Govt. will share the cost of infrastructure up to 25% or Rs. 100 lakhs whichever is less, if such a location is otherwise justified
    • Captive power generation to be allowed for all industrial units
    • Up to 10% water from existing and new projects will be reserved for industrial purposes including existing industrial units
    • 50% exemption on Stamp Duty, Registration Fee and Transfer Duty of lands meant for industrial use
    • Though Govt. proposes to phase out subsidies, 20% Investment subsidy on capital investment on land, buildings and plant and machinery up to a maximum of Rs. 20 lakhs will be given as subsidy to eligible SSI and Tiny units
    • Out of 20% Investment Subsidy, 50% up to a maximum of Rs. 10 lakhs will be given as cash subsidy
    • The balance subsidy of 50% upto a maximum of Rs. 10 lakhs will be provided for purposes such as: import of new machinery, training of workers, testing and certification facilities for raw material and finished products
    • An additional cash Subsidy of 10% on capital investment subject to a limit of Rs. 10 lakhs will be given to SC/ST entrepreneurs in the eligible SSI and Tiny units
    • Single Window registration for clearance to be made compulsory by Law
    • Designated authorities to be created as follows: District Level Authority for clearing cases up to Rs. 1 crore of investment; State Investment Promotion Committee to clear cases up to Rs. 25 crores of investment; State Investment Promotion to clear cases beyond Rs.25 crores of investment
    • All procedures for inspection, maintenance of registers, pollution control procedures, etc. to be simplified
    • All industrial units to be exempted from payment of Non-Agricultural Land Assessment
    • Environment Tax equal to the cost of plantation and maintenance for 5 years to be levied for raising of green belt.
    • Conversion of land use from agriculture to industrial use to be dispensed with except in the case of Tank bed lands.
    • Necessary alternate arrangements to be made to collect relevant fees in order to ensure that the income to Local bodies is not reduced because of this taxation.

     

     

    ORDERS

    Andhra Pradesh Order / Notification

    • G.O. Ms. No: 305
    • Industry & Comm (IFR) Dept. Dt. 27.8.1991

    • G.O. Ms: No:117 Dt 17-3-1993
    • G.O. Ms: 198 Dt. 19-5-1993
    • G.O. Ms: No. 317 Dt. 14-9-1993
    • G.O. Ms: No. 335 Dt. 16-9-1993
    • G.O. Ms: No. 149 Dt. 31.3.1993
    • G.O. Ms: No. 238 Dt. 26.11.1993
    • G.O. Ms: No. 386 Dt. 26-9-1994
    • G.O. Ms: No. 390 Dt. 30-9-1994
    • G.O. Ms: No. 187 Dt. 21.11.1995
    • G.O. Ms: No. 75 Dt.14-3-1996
    • G.O. Ms: No. 34 Dt. 31-1-1996
    • G.O. Ms: No. 108 Dt. 20-5-1996
    • G.O. Ms: No. 134 Dt. 1.7.1996
    • G.O. Ms: No. 11 Dt. 16-1-1997
    • G.O. Ms: No. 20 Dt. 31-1-1997
    • G.O. Ms: No. 186 Dt. 11-8-1997
    • G.O. Ms: No. 101 Dt. 4-4-1998
    • G.O. Ms: No. 196 Dt. 11-6-1998
    • G.O. Ms: No. 241 Dt. 15-7-1998
    • G.O. Ms: No. 242 Dt. 15-7-1998
    • G.O. Ms: No. 243 Dt. 15-7-1998
    • G.O. Ms: No. 476 Dt. 31-12-1998
    • G.O. Ms: No. 9 Dt. 5-1-2001

     

     

    LAWS

    ORDER/NOTIFICATION/DATE

    SUBJECT

    Labour Laws

    G.O. Ms.No.33 Dt.5-7-99
    Amendment notified vide Andhra Pradesh Gazette No.30

    Amendment to labor Enactments

    Amendment to the provisions of State Act shall apply to every industrial establishment where in 50 or more workmen are employed on any day of the preceding Twelve months.

    G.O Ms.No.34 Dt.5-7-1999

    Factories Act, 1948

    Exempting establishments engaged in manufacturing processes from the rules 4, 5, & 6 under the Factories Act 1948

    G.O Ms.No.37 Dt.3-8-1999

    Exemption from rule 22,23 and 29 under Factories Act 1948 And under ANDHRA PRADESH SHOPS AND ESTABLISHMENTS ACT - for those engaged in manufacturing processes (relate to national holidays and other festivals)

    G.O Ms .No.38 Dt.3-8-1999

    Amendment to the ANDHRAPRADESH PAYMENT OF GRATUITY RULES 1972 and omitting rule 32 from 'U' Substitution of the words "employee nominee" in place of employees.

    G.O Ms .No.34 Dt.5-7-1999 Amendment to the ANDHRA PRADESH FACTORIES AND ESTABLISHMENTS (NATIONAL FESTIVALS & OTHER HOLIDAYS) RULES, 1974

    6-A:Manufacturing process: Nothing in rules 4,5,and 6 shall apply to a factory under the Factories Act 1948 (Central Act 63 of 1948) or an establishment in manufacturing process as designated in section 2(k) of the Factories Act,1948.

    Environmental Laws

    G O Ms. No. 111, M A Dt. 8-3-1996

    HMWS & SB

    Protection of Catchment Areas of Himayatsagar and Osmansagar Lakes - Recommendations of the Committee constituted by the HMWS & SB - Amendment to G O Ms No. 192 M.A. Dt. 31-3-1994.

  • Govt. after careful examination of the recommendations of the Committee have issued the following orders in modification of the earlier orders issued in G O Ms No. 192 :
    • To prohibit polluting industries, major hotels, residential colonies or other establishments that generate pollution in the catchment of the lakes upto 10 Kms from full tank level of the lakes (as per list in Annexure I). However, residential developments in residential use zone may be permitted. The following measures shall be taken to protect water flowing into the lakes.
    • 60% of the total area shall be kept as open space and roads in all lay outs in the villages of Catchment area
    • The land use of about 90 % of the area is classified as recreational and conservation use in the Master Plan. HUDA should take action for the classification of this 90 % of the area as agriculture which is inclusive of horticulture and floriculture.
    • To restrict the FSI to 1:0.5 in the Catchment areas.
    • To monitor periodically the level of different pesticides, fertilizer residues carried into the lakes.
    • To prohibit polluting industires within 10 Kms radius (both on upstream and downstream side of the lakes) to prevent acidification of lakes due to air pollution.
    • There shall be total prohibition of location of industries in the prohibited zone.
    • APPCB shall make further study of the existing industries in the upstream and downstream of the lakes and take action under their Act.
  • For the protection of raw water channel from Osmansagar to Asifnagar no layout or building permission should be granted by MCH/HUDA/DTCP upto a maximum of 100 ft. from the conduit side boundary.
  •