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Andhra Pradesh Industrial Incentive Scheme

Andhra Pradesh Industrial Incentive Scheme

Andhra Pradesh Industrial Incentive Scheme

The State Government has introduced the Andhra Pradesh Industrial Incentive Scheme which offers an incentive for setting up new industrial units or expansion of existing units in the manufacturing and service sector. The key focus of the scheme is to provide the necessary infrastructure to ensure sustained industrialisation in Andhra Pradesh. In this article, we look at the Andhra Pradesh Industrial Incentive Scheme in detail.

To Know about Scheme for Incentive to Industries – Gujarat click here

Eligibility for investment subsidy

The list of enterprise eligible for investment subsidy are given below:

  • Industrial or Material testing laboratories
  • Research and Development centres related to the industry
  • Printing press, Flexi/Vinyl Printing, Flexo printing, colour film laboratories, video mixing
  • Machine operated Seed grading services
  • Machinery Training Centres with necessary machinery and equipment (other than educational institutions)
  • Power Laundries
  • Ready-made Garments units with investment more than Rs. 5.00 lakhs on Plant & Machinery
  • Cotton/Jute/Iron Scrap/Plastic/Paper/Hay etc. Baling presses.
  • Auto servicing and repairing units with investment more than Rs.10.00 lakhs on Plant & Machinery, engineering machining workshops, Common effluent treatment plans
  • Packaging activity with investment more than Rs. 5.00 lakhs on equipment
  • General Engineering and Fabrication works
  • Machine operated Bookbinding Enterprises and Note Books with investment more than Rs. 5.00 lakhs on Plant and Machinery
  • Any other Service Enterprises by the State Level Committee for inclusion in this list from time to time.

Note: The investment subsidy for the above activities will be provided based on the value of Plant and Machinery or Equipment.

The enterprise set up within the state of Andhra Pradesh is only eligible for the incentive, and other services or business activities do not qualify for any incentives.

Incentive Offered

Reimbursement of Stamp duty, Transfer duty, Mortgage and Hypothecation duty

The eligible enterprises will be entitled to a subsidy of 100% of the Stamp duty and transfer duty remitted by the industry on purchase of land/shed/building for industrial use. And also, 100% reimbursement of Stamp duty for Lease of Land/Shed/ Buildings and also mortgages and hypothecations deeds will be provided by submitting their claims in the prescribed application form. The duly filled form has to be proposed within 6 months from the date of commencement of commercial production.

Reimbursement of Land Cost in IP’s/IE/IDA

Incentives at the rate of 25% of land cost in IE/IDA/IP’s will be reimbursed with an aggregate ceiling of Rs.10 lakhs to the industrial enterprises located at Industrial Estates or Industrial Parks.

Reimbursement of Land Conservation Charges

All eligible Micro, Small and Medium Enterprises will receive reimbursement of 25% on land conservation charges subject to an amount of Rs.10.00 lakhs per MSME. However, the incentive will apply only to the enterprises on the land area up to five times the plinth area of the factory constructed.

Reimbursement of Power Consumption Charges

Eligible enterprises will be provided with power subsidies of Rs.0.75 of the actual power charges paid by an enterprise during the operational period of 5 years.

Note: The reimbursement given is only based on the energy consumption charges but not on maximum demand or any other charges imposed by DISCOMs (Distribution Companies).

Investment Subsidy

The eligible enterprises will be entitled to an incentive at the rate of 15% of the fixed capital investment with an aggregate ceiling of Rs. 20 lakhs to each enterprise. The Micro, Small and Medium enterprises belonging to Women entrepreneurs will be eligible for an additional subsidy at the rate of 5% on fixed capital investment, with an aggregate ceiling of Rs. 5 lakhs per enterprise.

Seed Capital Assistance

The Seed capital assistance to new entrepreneurs to set up micro-enterprises will be given at the rate of 10% from the Machinery cost, and the same will be deducted from the eligible investment subsidy.

Reimbursement of Tax

For Micro Enterprises, 100% subsidy for VAT or State Goods and Services Tax (SGST) will be reimbursed for 5 years from the date of commencement of business.

For Small Enterprises, 50% VAT/CST or State Goods and Services Tax (SGST) will be reimbursed for 5 years from the date of start of business.

For Medium Enterprises and Large Industries, the subsidy of 25% VAT or State Goods and Services Tax (SGST) will be reimbursed for 5 years from the date of commencement of business.

Reimbursement of Standard Certification Charges

The subsidy rate of 50% on the expenses incurred for quality certification/patent registration subject to an amount of Rs. 2.00 Lakh for MSME will be reimbursed. This facility can be availed by all eligible new and existing units availing quality certification from BIS/ISO/HACCP/any other national/international certification agencies.

Reimbursement of the cost incurred in skill upgradation and training

The one-time incentive of Rs.2000 per person will be provided for of cost involved in skill up gradation and training. For claiming the subsidy amount, the industry or enterprise should furnish the list of employees trained along with their offer letters duly certified by the promoter.

Documents Required

The below following are the documents to be submitted while registering for the scheme:

  • TIN Certificate
  • Caste Certificate
  • Partnership Deed/Articles of Association/Certificate of Incorporation
  • Registration Certificate
  • Land Lease agreement/Sale Agreement/Sale Deed
  • First Sales Bill
  • First Sales Return(1st-month sales return)
  • Andhra Pradesh Industrial Incentive SchemeUpload Machinery List
  • Statement of Accounts from Bank
  • EM Part 2/Udyog Aadhaar/IEM Part B
  • Term Loan Sanction Letter
  • Power release Certificate
  • Civil Engineer Certificate

For Specific Incentives

Investment Subsidy

  • Civil Engineer Certificate
  • Approved Area Certificate by Town & Country Planning
  • Chartered Engineer Certificate for Self-Fabricated Machinery

Sales Tax Reimbursement

  • Form A
  • Tax Paid Receipts

Interest Subsidy Incentive

  • Interest Paid Certificate
  • Loan Disbursement Certificate
  • Banker Certificate on Status of Loan
  • Power Cost Reimbursement
  • Power Receipt
  • Power Bill

Stamp Duty Reimbursement

  • Copy of Registered Land Sale Deed / Lease Deed / Transfer Deed
  • Documents related to Land Conversion
  • Payment Receipt

Application Procedure

The application for AP Industrial Incentive Scheme can be obtained from the District Industries Centre, Government of Andhra Pradesh or you can also download the application form the official website of AP Industries. Complete the application form with the mandatory details along with the documents required, submit it to the General Manager, District Industries Centre. The prescribed authority will verify the submitted application with the particulars if satisfied with the application will be processed.

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