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Economic Policies of AP
Time taken to obtain all clearances to set up industry is core to measuring the
ease of doing business. The Single Desk Policy aims to create a conducive
Andhra Pradesh, over the years, has established a strong presence in agro and
food processing, textiles, chemicals & petrochemicals, pharmaceuticals,
metallurgy, electronics and electrical engineering sectors.
Sector wise major districts by output
Policy Targets
Visionary Leadership
24x7 power supply
Conducive Business Environment
Industrial Land Bank
Fiscal Incentives
Progressive Labour Policies and Skill Development
Robust Infrastructure
Effective Law and Order
Micro, Small and Medium Enterprise (MSME): GoAP follows the MSME
definition laid out by Government of India as per MSMED Act 2006(as updated
from time to time).
a) Stamp Duty
100% of stamp duty and transfer duty paid by the industry on purchase or lease of
land meant for industrial use will be reimbursed.
Stamp duty will be reimbursed only one time on the land. Stamp duty will not be
waived on subsequent transactions on the same land.
b) VAT/CST/SGST
For large Industry unit, 50% of net VAT/CST or SGST will be reimbursed for a
period of 7 years from the date of commencement of commercial production or up
to realization of 100% fixed capital investment, whichever is earlier.
For sector specific industries like apparel, food processing, biotech, automobile
VAT/CST/SGST concession may be higher.
The provisions in the package are applicable to those units wherein the sole proprietor
belongs to SC/ST category. SC/ST entrepreneurs can also set up industries covered in
ineligible list of the policy to avail incentives in this policy.
1. 100% reimbursement of Stamp duty and transfer duty paid by the industry
on purchase of land meant for industrial use.
a) The location should be beyond 10 Kms from the existing Industrial Estates/IDAs
having vacant land/shed for allotment.
b) Cost of the infrastructure limited to 15% of the eligible fixed capital investment
made in the industry. 50% of the cost of infrastructure is raised to 75% in respect
of units set up by ST entrepreneurs in Scheduled areas.
The provisions in the package are applicable to those units wherein the sole
proprietor belongs to BC category.
1. 100% reimbursement of Stamp duty and transfer duty paid by the industry
on purchase of land meant for industrial use.
2. 100% reimbursement of Stamp duty for Lease of Land/Shed/ Buildings
and also mortgages and hypothecations.
3. 50% rebate in land cost limited to 20 lakhs in Industrial Estates/Industrial
Parks.
4. 25% Land conversion charges for the industrial use limited to10 lakhs.
5. Fixed power cost reimbursement @ 1.50 per unit for 5 years from the date
of commencement of commercial production
6. Seed capital assistance to First Generation Entrepreneurs @25% of the
Machinery cost, which will be deducted from the eligible investment
subsidy.
7. 35% investment subsidy on fixed capital Investment by BC Entrepreneurs
and additional 10% investment subsidy for BC Women Entrepreneurs,
with a maximum limit per unit is 75 lakhs (i.e. 35% for BC Entrepreneurs
and 45% for BC Women entrepreneurs).
8. Reimbursement of 100% net VAT/CST/SGST to Micro and Small
Enterprises for a period of 5 years from the date of commencement of
commercial production .
9. Reimbursement of 75% net VAT/CST/SGST to medium enterprises for a
period of 7 years from the date of commencement of commercial
production or up to realization of 100% fixed capital investment, whichever
is earlier.
10. Reimbursement of 50% VAT/CST/SGST to large enterprises for a period
of 7 years from the date of commencement of commercial production or
up to realization of 100% fixed capital investment, whichever is earlier.
11. Interest subsidy on the term loan taken on the fixed capital investment in
excess of 3% per annum subject to a maximum reimbursement of 9% per
annum for a period of 5 years from the date of commencement of
commercial production.
12. 50% Reimbursement of cost involved in skill upgradation and training local
manpower limited to 5,000 per person.
13. 50% subsidy on the expenses incurred for quality certification/patent
registration limited to 3 lakhs for micro and small enterprises.
14. Incentives under Swachh Andhra (Para V) will be applicable for BC
entrepreneurs.
The following incentives are applicable for 1st generation women entrepreneurs and are
applicable for micro and small units only.
GoAP will set up Industrial Area Development Authorities under the aegis of
article 243 Q of the constitution to facilitate and encourage investment into
specific investment zones like SIRs, industrial parks, Industrial corridor nodes etc.
b) Under Chennai Bangalore Industrial Corridor (CBIC) the following node will
be developed:
a. Krishnapatnam in Nellore Dist.
a. Vishakhapatnam
b. Nakkapalli
c. Kakinada
Govt. of India has accorded in-principle approval for setting up two NIMZs:
a. Chittoor
b. Prakasam
These NIMZs would be developed as world class industrial regions with each spread
over a minimum of 5,000 hectares. These regions will act as growth nodes for
industrial development and employment generation in the state.
GoAP will facilitate setting up of SITs across various districts with local self-
government status. Following external infrastructure for SIT will be provided by the
government:
SEZs aim to provide simplified clearances and controls, world class infrastructure and a
stable fiscal regime to attract foreign investments in the state. Various incentives will be
given to the tenants of SEZs as declared by the Government of India in SEZ Policy
announced in April 2000.Currently there are 16 functional SEZs in AP and additional
four SEZs with in-principle approval.
Industrial Parks
1. Robust Infrastructure:
Andhra Pradesh has robust infrastructure comprising good road and rail
network, 4 major ports, 4 active airports and 24X7 power for
industrial/commercial use. Additionally, the State is creating a land bank
of 10 lakh acres to facilitate industrial development.
Mega projects like Visakhapatnam-Chennai Industrial corridor (VCIC) and
Chennai-Bangalore Industrial Corridor (CBIC) will help develop new
economic centres in the State, further giving fillip to industrial
development.
2. Large Base of Skilled Manpower: State has over 120 polytechnics, 225
engineering colleges and several management institutes which meet the
industries requirements for skilled manpower. The State also boasts of cordial
labour relations as well as general peace and order owing to GoAPs welfare
policies (Andhra Pradesh was the first state to amend Contract Labour Act
to define core and non-core activities). Last but not the least, Andhra Pradesh
is uniquely positioned to access the global talent pool by leveraging a strong
diaspora active in this sector.
Fiscal incentives :
A. Stamp Duty
a. 100% of stamp duty and transfer duty paid by the industry on purchase or lease of
land meant for industrial use shall be reimbursed.
b.100% of stamp duty for lease of land/shed/buildings, mortgages and hypothecations
shall be reimbursed.
c. All the reimbursements shall be done within 6 months.
B. VAT/CST/SGST
a. For micro and small industries, 100% of net VAT/CST/SGST shall be reimbursed for a
period of 5 years from the date of commencement of commercial production.
b. For medium industries, 75% of net VAT/CST/ SGST shall be reimbursed for a period
of 7 years from the date of commencement of commercial production or up to realization
of 100% fixed capital investment, whichever is earlier.
C. Power:
a. Andhra Pradesh is one of the states selected for the centrally-sponsored power
for all scheme. This scheme will ensure 24x7 quality and reliable power across the
State.
b. Fixed power cost reimbursement is proposed to be provided at Rs1.00 per unit for 5
years from the date of commencement of commercial production. This will apply to open
access units as well.
c. The units generating power from captive power plant will not be eligible for the
subsidy.
F. Skill Upgradation
a. As outlined in the Industrial Policy 2015-20, GoAP shall create a model for
development of skilled manpower and for improving employability in the State. Under
this model, State will identify the quantum requirement of skilled manpower, identify
industry specific skill sets required and provide courses at different levels of education
matriculation and above.
b. GoAP recognizes that MSME requires additional support for skill development. GoAP
will reimburse 50% of the cost involved in skill upgradation and training the local
manpower limited to Rs 5000 per person for 10 persons in micro and 20 persons in
small and medium industries.
Land Bank
a. GoAP shall reserve 15% of total area of land for MSME industries in any 2 of
developed Industrial Parks of APIIC in every district, which will not be less than 40
acres of developed land in every district and allot land in government run Industrial
Areas.
b. GoAP shall reimburse 25% of land conversion charges for industrial use limited to _10
lakh.
c. GoAP shall provide 25% rebate in land cost limited to 10 lakh in Industrial Estates/
Parks.
d. Of the land reserved for MSME industries in its plots / industrial estates, APIIC shall
allocate 15% of plots to Scheduled Caste Entrepreneurs, 5% of plots to Scheduled Tribe
Entrepreneurs, 20%or Backward Classes and 5% for Minorities.
e. Of the land reserved for MSME industries in its plots / industrial estates, APIIC shall
allocate 10% of number of plots to Women Entrepreneurs.
MSME Parks : GoAP shall establish a dedicated MSME Park in Each district up to an
extent of 25 acres with common infrastructure like roads, industrial water supply,
power, effluent treatment plant. These MSME Parks shall be established across all
districts in a phased fashion depending upon sectoral assessment to be taken up during
Q2/Q3 of FY 2016.
The policy targets are investment of Rs.5,000 crores and 20,000 new jobs by 2020.
Key Initiatives
Retail enterprises allowed to stay open every day of the year and operate
from 6 AM to 11 PM IST
Key Incentives
a. Labour
Retail enterprises allowed to
Stay open every day of the year
Operate between 6 AM and 11 PM IST
Offer part-time employment
Maintain employee-related records in electronic form
Employment of women permitted in all shifts
Permission for 24x7 (three shifts) operations, flexibility in employment conditions
for distribution centres and warehouses
b. Skill Development
An initial provision of Rs.10 crore for training 1 lakh youth over a period of 5
years
e. Electronic Bills
Organised retail enterprises shall be allowed to have option to issue bills (tax
invoices) to consumers in an electronic mode
f. Store Signboard
Retail trade excluded from prior permission and charges/ fees with regards to
store signboards displaying trade name of company on business place of
company
The fiscal incentives include exemption of sales tax/ VAT/Entry tax/ Stamp duty/
Registration fees/ Seigniorage charges and 8% Annual Lease rate concession
The policy targets are investment of Rs.20,000 crores and 5000 new jobs by 2020.
Key Initiatives
Establishment of Aerospace and Defence clusters
Permission to the industry for 24 x 7 (3 shifts) employment for women in right
shift
ABD Manufacturing industry declared to be a public utility under the
Industries Dispute Act 1947
Key Incentives
Capital subsidy for basic infrastructure development and setting up new units
Reimbursement of cost incurred for patent registration and quality certifications
Specific incentives for Public Sector units and R&D centers
100% Exemption from Entry Tax on Plant & Machinery and Capital goods
The policy targets are investment of 20,000 crores and 2 lakh new jobs by 2020.
Key Initiatives
Automobile Industry declared to be Public Utility under Industrial Disputes Act,
1947
Quality Testing / R&D laboratories to be set up in collaboration with leading
global institutions
24 X 7 reliable power
Key Incentives
Capital Subsidy for Auto Clusters and ASMC developers 50% of fixed capital
investment in building & common infrastructure
The policy targets an investment of Rs.20,000 crores and 5000 new jobs by 2020.
Creation of world class aviation infrastructure in the State that would help
provide reliable and seamless air connectivity to regional, national and
international destinations by 2022
Key objectives
Objectives
To improve air connectivity within the state of Andhra Pradesh
Targets
Currently, the share of airports in AP in the air passenger traffic in India is
around 1%. It is targeted to increase this share of air passenger traffic from all
airports in AP to a level of 7% by the year 2022.
Share of air cargo carried from airports in AP is 0.1% in FY 2014-15. It is
targeted to increase this share of air freight traffic from all airports in AP to at
least 5% by the year 2022.
At present, there is only one airport in the state catering to international travel. It
is targeted that there shall be at least three modern international airports in
the state by the year 2022
Key Incentives
The government proposes to offer support for development of aviation infrastructure by
following means -
A. Acquisition and handing over of land to AAI / private entities for development and
operation of airports as per agreed terms and conditions
B. Exemption of lease charges on land used for airport operations for adequate time
duration, as per the project profile and viability
C. Reimbursement of electricity charges for a predetermined period
a) 100% exemption on stamp duty for land purchased or leased for developing and
upgrading airports
b) 100% reimbursement on electricity duty
c) 100% reimbursement from property tax
d) Provision of security and fire fighting services at no cost
The policy targets an investment of Rs.6,000 crores and 2 lakh new jobs by 2020.
Key Initiatives
GoAP to provide land for Textile & Apparel parks
Focus on textile based industries such as ginning & pressing, cotton spinning,
weaving, dyeing & processing, knitting, garment/made-ups, machine carpeting,
machine embroidery and any other activities/ process like crimping, texturizing,
twisting, winding, sizing etc. within the textile value chain
Manufacturing Clusters
Integrated textile parks at Edyapadu on Guntur-Chennai national highway
Brandix India apparel city spread over 1000 acres in port city of Vishakhapatnam
Key Incentives
Interest subsidy up to 12.5% per annum
Power Tariff subsidy at 1-1.50 per unit depending on category
100% reimbursement of stamp duty on lease of land
Capital subsidy, linked to investments, ranging from 20% of fixed assets to 10%
of project cost
The policy targets an investment of Rs.6,000 crores and 5 lakh new jobs by 2020.
Key Initiatives
3 mini Life Sciences Parks to be set up within next 3 years
The park provides incubation centre, skill development and training centre
Key Incentives
Fixed power cost reimbursement of Rs 1.50 per unit for 5 years from
commencement of commercial production
Technology acquisition fund of USD 1.6 Million to be set up
The policy targets an investment of Rs. 5,000 crores and 50,000 new jobs by 2020.
Key Initiatives
Develop commodity based clusters
2. 50% of the project cost limited to Rs.50 crores for mega food parks and 50% of the
project cost limited to Rs.20 crores for integrated food parks
3. VAT/CST/GST reimbursement for mega food parks and mega integrated food parks
during construction for 2 years upto 2 crores. 100% reimbursement for 5 years for micro
and small units and 75% for 7 years for medium units
4. Capital subsidy: a. 25% of the project costs (plant & machinery, technical, civil works)
limited to 5 crore for establishment of new food processing units. b. 25% or upto Rs.1
crore for technology upgradation units . c. 50% or up to Rs.2.5 crores for primary
processing units. d. 35% or up to 5 crores for agriculture/ horticulture/ dairy/meat
produce
Key Initiatives
Policy Intervention: There is a need for coherence between the policies within
and outside the fisheries sector, Suitable amendments shall be made in the
existing fisheries/ Aquaculture Acts for long-term, effective and positive
governance of this sector. Coordination mechanism for synergy with the
agriculture and allied sectors to utilizes the common infrastructure.
Marine Fishery
Brackish Water Fishery
Inland Fishery
Reservoir Fishery Management
Pond Culture
Ornamental Fishery
Fiscal Incentives
Insurance Facility
The implementation of the Fisheries Policy, 2015 is expected to yield the following
outcomes:
1. Increased production and productivity by 20-30% increasing the GSDP
contribution of Fisheries Sector.
2. Prevention of post harvest losses to a tune of 10-20 %
3. Better infrastructure and logistics facilities in the sector ensuing the availability of
fish products in all the days.
4. Increased marine exports and domestic trade thereby increase in foreign
exchange earnings.- Target is to double the value of marine exports in next five
areas Better infrastructure facilities in the sector
5. Enhanced capacity building to manage the resources sustainably and rationally
will lead to enhanced capacity building to 4.30 lakhs fishers and fish farmers
6. Better nutritional support through good protein and micronutrients intake can
reduce malnutrition by 20% among poorer sections
7. Gainful employment in fisheries and allied ancillary industries. Additional
employment opportunities to 1.4 lakhs fishers directly and 2.8 lakhs indirectly
8. Diesel subsidy will benefit many families
IT Policy : The policy targets an investment of Rs.12,500 crores and 5 lakh new jobs
by 2020.
Key Initiatives
Focus on becoming first in India quality and quantity of e-services
Quality education
supporting infrastructure
Major Clusters
Vishakapatnam to be major IT hub with built in space of 5 million sq.ft
IT hubs to be developed at Vijayawada, Kakinada, Tirupathi and Ananthapur
Key Incentives
The mega projects operate from the built up space are also eligible for rental
subsidy @ Rs.10 per SFT per month for a period of 3 years in prescribed scale
space per employee.
For IT Companies that received land from State Government, incentive will be
given Rs.50,000/- for generation each employment.
For IT Companies that did not receive land from Government and have annual
sales of more than Rs.25 crores per annum, incentive of either Rs.1,00,000/- or 6
months of CTC (cost to company), whichever is lower, for generation each
employment.
Training companies for IT and Electronics will get Investment subsidy up to 50% with
CAPEX, to a maximum of Rs.1.00 Crore.
In case of Mega Projects in Electronics, 30% of investment will be provided as
subsidy, capped at Rs.250 Crores.
In case of General Projects in Electronics, 25% of investment will be provided as
subsidy, capped at Rs.250 Crores.
In case of MSME/BC/ SC/ ST/ Women/ Rural Electronic industries, 30% of
investment will be provided as subsidy, capped at Rs.250 Crores .
25% Power subsidy for Mega Projects for a period of five years; 20% Power
subsidy for all other categories of companies for a period of five years.
Electronics policy: The policy targets an investment of Rs.40,000 crores and 4 lakh
new jobs by 2020
Key Initiatives
Centre of Excellence for fables semiconductors
Promotion of Electronics AP by Annual Mega Electronics Event, Road Shows,
Electronic Bazaars, web campaign
Special focus on Mobile, LED, Smart Meters, FPD TVs, Tablets, Sensors, IOT
etc.
Key Incentives
100% reimbursement of Stamp Duty, Transfer Duty and Registration Fee
100% exemption on electricity duty for 5 years from commencement of
commercial operations
10% Capital Subsidy on total investment
6% Interest Subsidy for a period of 7 years
The policy targets an investment of Rs.10,000 crores and 5 lakh new jobs by 2020
Objectives
To target a minimum total solar power capacity addition of 5,000 MW in the next
five years in the State with a view to meet the growing demand for power in an
environmentally sustainable manner.
The government will promote setting up of Solar Power Projects for sale of power to AP
Discoms. It is envisaged that the Discoms would procure around 2,000 MW of solar
power capacity in a phased manner within the next 5 years. The Discoms would
enter into long term PPA of 25 years with developers who are selected based on a
competitive procurement process.
Solar Parks
The Govt. of A.P will develop Solar Parks with capacity additions of around 2,500 MW in
the next 5 years to promote Solar Power Projects development in clusters of 500-1000
hectares. Solar Park shall consist of various zones viz. Solar Power Projects,
Manufacturing Zones, R & D and Training Centres. The State will extend all facilities and
fiscal incentives provided by Central Government/ National Solar Mission to the
manufacturers in Solar Park.
Solar Pumpsets
It is envisaged that 50,000 solar powered pumpsets will be operational in the State in
the next five years without any additional financial burden on the farmers.
The policy targets an investment of Rs.10,000 crores and 5 lakh new jobs by 2020
Objectives
To encourage, develop and promote wind power generation in the State with a
view to meet the growing demand for power in an environmentally and
economically sustainable manner.
To attract private investment to the State for the establishment of large wind
power projects.
Category II : Captive use or group captive use /direct sale to 3rd party sale within
the State/States other than A.P. State : The State will promote wind power producers
to set up wind power projects with no cap on capacity for captive use/group captive or
sale of power to 3rd party within the State/States other than Andhra Pradesh. These
projects will also qualify for Renewable Energy Certificates (RECs) subject to applicable
regulations/ guidelines issued by the appropriate commission.
GoAP Incentives
a) Power Evacuation
1. The Eligible Developer shall bear the entire cost of power evacuation facilities for
interconnecting the wind farm with the grid.
2. The Eligible Developer shall abide by the orders, rules, regulations and terms and
conditions as approved by APERC from time to time for operation of wind farms,
power evacuation, transmission and wheeling of energy.
3. Wind power projects will be exempted from paying the supervision charges to
APTransco/Discom towards the internal evacuation infrastructure within the wind
farm site and upto pooling sub-station. All electrical installations within wind farm
site and upto pooling sub-station shall be as per the statutory requirements and
shall be certified by the Chief Electrical Inspector General (CEIG) or any other
statutory authority.
4. APTransco/Discom will dispose the proposals for the technical feasibility for
evacuation within 14 days from the date of receipt of application. Any upstream
system strengthening requirement shall be borne by APTransco/Discom on a
priority basis.
c) Energy Banking
Banking of 100% of energy shall be permitted during all 12 months of the year. Banking
charges shall be adjusted in kind @ 2% of the energy delivered at the point of drawal.
The banking year shall be from April to March.
d) Open Access
Intra-state Open Access clearance for the whole tenure of the project or 25 years
whichever is earlier will be granted as per the APERC Regulations amended from time
to time. In absence of any response or intimation from the Nodal Agency to the
generator within 21 days, then such application shall be considered to be deemed open
access.
e) Electricity Duty
All wind power projects are exempted from paying Electricity Duty in case of sale of
power to APDiscom.
j) Pollution Clearance
Wind power projects will be exempted from obtaining any NOC/Consent for
establishment under pollution control laws from AP Pollution Control Board.
The policy targets an investment of Rs.10,000 crores and 5 lakh new jobs by 2020
Key Initiatives
Theme based development of tourism projects
Destination based development through Hub & Spoke model
Key Projects
Key projects- Beach corrdior across nine districts, mega conventional centres
at Visakhapatnam and Tirupathi
Theme parks at Nagarjuna sagar, Gandikota, Mathurawada and Kailasa giri
Luxury hotels and resorts at Bheemili Beach, Kakinada beach, Amaravathi and
Tirupathi
Key Incentives
Complementary/Linkage Infrastructure Development Assistance
Waiver of Non-Agricultural Land Assessment (NALA) tax or Land Use
Conversion charge
100% reimbursement on Registration and Stamp duty for all tourism
infrastructure projects
Investment subsidy for Tourism Services
Mission based development of State Government
The people of Andhra Pradesh envision transforming their State into a happy, inclusive,
responsible, globally competitive and innovation- driven society through structural
transformation and by sustaining inclusive double-digit economic growth, to become
one amongst the three best states in India by 2022, the best state by 2029, and a
leading global investment destination by 2050.
Swarna vision 2029 giving wings to aspirations of 49 million people
The vision is predicted on three pillars- 7 missions, 5 grids and 5 campaigns
The Government of Andhra Pradesh has identified key focus points in order to
set up and develop 7 Missions to reach our objectives and convert huge
challenges into opportunities and make ours the Sunrise State.
The Mission approach focuses on inclusive growth to improve key indicators in
every identified sector.
Ensuring quality education, healthcare and nutrition for all citizens in order to
achieve the Millennium Development Goals (MDGs) and/or other global
indicators like Sustainable Development Goals that are being developed by
United Nations;
Networking with organizations, which are innovative and have set up models of
good work; and
Preparing a strategy and action plan for enhancing job opportunities and boosting
GSDP through sectors like tourism, construction, hospitality, financial services,
education, IT, and other allied activities;
Harnessing the potential of education and health sector to offer high quality
services to other states and countries;
Polam Pilustondi
Neeru Chettu
Swacch Andhra Pradesh
NITI Aayog has categorized the states into five classes based on their relative
poverty head count positions in 2011-12 with scales of <10%, 10-20%, 20-30%,
30-40% and >40%.
As per this classification, Andhra Pradesh in terms of urban poverty is placed in
the range of <10%.
Standing of Andhra Pradesh Urban Poverty(<10% range)- Andhra Pradesh,
Goa, Sikkim, Himachal Pradesh, J&K, Mizoram, Kerala, Tamil Nadu and
Meghalaya. Rural Poverty(10%-20%) - Haryana, Meghalaya, Rajasthan, J&K,
Nagaland, Tripura, Tamil Nadu, Uttarakhand.
With better and more focused implementation of various livelihood and employment
generating schemes in the recent past, poverty in Andhra Pradesh is expected to further
decline both in respect of rural and urban areas.
2. Badi Pilustondi
Badi Pilustondi was launched on on 25.07.2014 in Anantapur District, the
programme went on from 25th July to 2nd August 2014 in the state.
As per the RTE Act 2009, education is the right for the children belonging to the
age group of 6-14. Every child should complete elementary cycle as per RTE,
Elementary cycle means, upto class VIII.
In the present AP state comprising 13 districts, the dropout for boys is 19.37
while the dropout for girls is 18.95 hence the average dropout rate is 19.16.
Child Tracking System was introduced during the last year where all the
enrolled children data is entered and being maintained name wise instead of
number wise.
The enrolment every year is done into 1st class which is the target for enrolment.
The expected child wise population is and also taking the births registered in
Anganwadi schools/ Health Departments and these figures are kept as target for
enrolment.
3. Polam Pilustondi
The State Government has launched an Innovative Programme Polam Pilusthondi
with an objective to strengthen the extension reach to nearly 7.6 million farmers
doorstep for increasing productivity in agriculture and allied sectors and tincrease
income of the farmers.
The programme provide effective extension services to farmers through farmer
led extension and continuous interaction with farmers using scientific approach
with ultimate aim of increase in farm productivity.
The Polam Pilusthondi programme is being conducted for two days in a week in
each mandal duly covering two villages on each day by the Agricultural
Department i.e, on Tuesday and Wednesday along with the officials of the allied
departments and scientists of the Agricultural, Horticultural and Veterinary
universities with the consent of the people representatives.
The peoples representatives viz., Hon`ble Ministers, MPs, MLAs, ZPTC, MPP,
MPTC, Gram sarpanch, AMC chairman and Bankers are being invited
tparticipate in the programme.
In each village, the programme starts with a field visit followed by the Grama
Sabha and farmer scientist interaction.
The Agriculture and allied departments will prepare the list of production gaps /
issues identified in 2-3 major crops/other activities and interventions to be taken
up in the village to be visited. Thus, village / mandal specific plans will be
prepared for the benefit of farmers.
5. Swacha Andhra
The main thrust of the programme is to keep the villages clean
Street cleaning
Drainage cleaning
Institutions cleaning-Schools, AW, GP, Sub-centres
Identify & cleaning Garbage heaps & water stagnant points
Solid & Liquid waste management
Awareness on construction & usage of Toilets
Awareness on Hand Wash
Safe handling & storage of drinking water
Construction of ISLs in a time bound manner.
Grids
The Government of Andhra Pradesh has launched five grids for water, power, gas, optic
fibre and roads to improve the access and availability of these services across the State.
1. Water Grid
The Government of Andhra Pradesh is committed to provide assured water supply to its
people for drinking, irrigation and industrial use. The State needs 156 tmc ft of water to
cater to the drinking water needs of people in 13 districts and also meet the
requirements of commercial and industrial consumers. Of the total 156 tmc ft water, 20
tmc ft is for industries and 136 tmc ft is for domestic sector drinking purposes. In order to
ensure this, the Government is in the process of setting up a Water Grid Corporation
(WGC) that would oversee the development of a state-wide smart water grid. The WGC
would also monitor, supply and maintain the water grid. The mega grid would be built
at a cost of about Rs. 40,000 crore would have about four or five sub grids. About
156 tmc ft of water would be drawn from Godavari, Krishna, Penna and other sub-rivers
in the states by reserving river water which flows into the ocean. Separate pipelines
would be constructed for industrial, irrigation and drinking purpose requirements.
The Project Outcomes include assured round the year water supply to all areas in the
State for drinking, irrigation and industrial purposes to make Rayalaseema drought
free by effective channnelisation of flood water timeline, supply of water to select
towns and villages in next two years and overall project completion by 2019
2. Gas Grid
The Gas Grid consists of a State wide Natural Gas Pipeline Grid and City Gas
Distribution system. The Gas Grid would provide natural gas through a network of
pipelines to industrial, transport commercial and domestic sectors and thereby
encouraging major indigenous and global players of the Industry.
Through the gas grid, the KG-basin and other gas resources would be brought to "every
industry and every household.
AP Natural Gas Grid has the following pipelines
a) East-West Pipeline
b) Mallavaram-Bhilvara-Bhaopal-Vijaypur Pipeline
c) Kakinada-Srikakulam Pipeline
d) Ennore Nellore Pipeline
e) K.G. Basin Pipeline Network (GAIL)
f) Vijayawada Nellore Pipeline
g) Tumkur to Nellore Natural Gas Pipeline
City gas distribution in major cities (municipalities and Class I Cities) of the State to
improve PNG and CNG supply for domestic, commercial and industrial use.
Last mile connectivity all G2C and G2B services to be made available online
and on mobile
Take Fibre to Village initiative Under the 'Take Fibre to Village' initiative the
Government has fast tracked the development a state wide optic fibre grid that
would criss-cross the length and breadth of the State.
Project features:
a length of 65,000 km under the National Optic Fibre Network (NOFN) with an
end-to-end network right from the State to the gram panchayats
Aims to make available at least 10-15 Mbps broadband connections to the 12
million households in the State at a cost of Rs. 150 per month
On-demand availability of 100 Mbps to one Gbps connection to every business
enterprise
The total cost of the project is estimated to be about Rs. 6,000 crore with a
capital expenditure of Rs. 3,843 crore and operation cost of Rs. 2,140 crore over
the next ten years
PPP/private sector participation to be explored wherever possible
4. Roads Grid
The Government of Andhra Pradesh is making endeavours to make this road grid a
reality within the next 5 years i.e., by 2019.
Other National Highways are to be developed at least as 2 lane roads with 1.5m
wide paved shoulders on either side (total 10 m width).
National Highways to be developed as 4 lane divided roads in order to bring the
long coastline available for Andhra Pradesh to effective use, large scale
development of all the sea ports is being planned.
To facilitate quick movement of Cargo, all the seaports are to be connected to the
nearest 4 lane National Highway with 4 lane divided roads.
5. Power Grid
Andhra Pradesh has total 127.53 lakh households (Rural - 88.59 lakh, Urban -
38.94 lakh), out of which around 5.84 lakh are un-electrified. Other than
Households, Andhra Pradesh has 14.54 lakh Agricultural connections and 1.53
lakh industrial consumers.
The Government has planned a robust grid for transmission and distribution of
power in the State. At present the power grid in the state is manage by
APTRANSCO for transmission and by APEPDCL & APSPDCL for distribution.
The present transmission infrastructure consists of 6 Nos. Of 400 kV Substations,
72 Nos. 220 kV substations, 167 Nos. 132 kV substations and 18,907 Ckm of
EHT lines.
The Distribution Network consists of 2,524 Nos. of 33/11 kV Substations, 9,264
Nos. of Feeders (Urban - 2,114, Rural/Mixed 5,375, Dedicated / Express
Industrial 706, Others- 1069) & 5.62 lakh of DTRs in the two DISCOMs.
Enable supply of excess energy into the grid with the net-metering solar policy
Providing parallel/ alternative sources of power supply
Alternative supply to 33 kV, 11 kV and LT consumers
Laying covered conductors for 33 KV & 11 KV voltage levels
Wedge connectors,
maintenance free earthing pits,
Installation of substation monitoring software
re-conductoring of existing lines
In addition, for coastal areas prone to cyclones and religious towns, breakdown
mitigation activities to prevent outages such as replacement of overheadlines with
Under-Ground cables are planned at a total capital expenditure of Rs. 3,019 crore.
APTRANSCO has planned 400 kV transmission ring network around the cities of
Vijayawada & Guntur with three 400 kV substations and 440 km of Quadmoose
transmission lines to improve the reliability of supply and minimize power disruptions
with an investment of Rs. 975 crore. The above schemes / initiatives of APDISCOMs /
APTRANSCO have been included under the 'Power for All' scheme.
Introduction: Secondary sector activities are those activities which transform basic
raw materials into manufactured and finished goods.
Andhra Pradesh, starting as a home for few agro based industries four decades
back, the industrial spectrum of Andhra Pradesh now encompasses engineering,
chemical, petrochemical, mineral processing, aqua culture and the frontier areas
of electronics and information technology. It has already become a leader in the
manufacture of drugs and pharmaceuticals.
Andhra Pradesh has very good potential for industrial development with the
following advantages strategic geographical location advantage, large base for
agro and food processing industries, Mineral house of the country, Bulk drug
capital of India, fast growing IT and ITES economic activities, World class
infrastructure, skilled man power, with industrial investment policies of the
Government.
1. AP industries contributes about 13% to the GSDP where in all India GDP is
18.5%
Accordingly the strategy for the development of industries by the state is a follow
A. Persuading Government of India to set up Central Public sectors in the state
The industrial growth and development in Andhra Pradesh can be divided into 2
phases.
During the first Phase: The number of the factories is 3,754 in 1956-57. The Govt
persuaded the Govt. of India to establish CPSUs in the State. By 1960 the CPSUs in the
State are . These industries fuelled the development of ancillary industries in AP. To
finance industries, ICICI, IDBI, IFCI have established their branches in the State.
During the second phase 1970 -85: This period is the golden period for the
development of industries in the State as average number of new industries established
are 24. The New generation of industrialists developed due to land reforms in agriculture
and agriculture surplus. After 1980s a new generation of contractors entered into the
industries.
By 1990 the State Government announced No. of incentives for industrial
development.
From 2000 onwards Service Sector became the main growth engine.
The industrial development became slow by the end of 1999 due to :
Factories:
The entire Factory Sector comprises industrial units (called factories) registered under
the Sections 2(m)(i) and 2(m)(ii) of the Factories Act, 1948, wherein a Factory, which is
the primary statistical unit of enumeration for the ASI, is defined as:
Small and tiny sectors, Classification of Enterprises: As per MSME Act, 2006
A. Manufacturing or production of goods pertaining to any industry
Note: a) Investment more than Rs. 10.00 Crores and upto Rs.100.00 Crores in
manufacturing sector and more than Rs. 5.00 Crores and upto Rs.50.00 Crores in
Service Sector are Known as Large Industries. The investment crossing Rs.100.00 Crs
in Manufacturing and Rs. 50.00 Crores in Service sector are called Mega Projects.
During the period from April to September 2016, 321 Large and Medium
Enterprises with investment more than Rs.5.00 Crore on plant & machinery have
filed their proposals with the State Level Nodal Agency for 589
clearances/approvals from various departments. 515 cases were given
clearances/ approvals by different Competent authorities, 22 proposals were
rejected/returned and 52 cases are in process with an investment of Rs.14308.08
Crore providing employment of 63,523 persons.
During the period from April 2016 to September 2016, 2650 Micro & Small
Enterprises with investment below Rs.5.00 Crores on plant & machinery filed
their proposals with the District Level Nodal Agency for 4656 clearances /
approvals from various Departments. 4264 cases were given clearances /
approvals by various competent authorities and 12 proposals were rejected /
returned and 20 cases are in process with an investment of Rs.1928.11 Crores,
providing employment to 41758 persons.
1867 Large and Mega Projects with an investment of Rs.86893.93 crore have
gone into production creating employment to 4,67,642 persons as on December,
2016. During 2016-17 (upto Dec 2016), 57 Large and Mega industrial projects
are established with an investment of Rs.5051.04 Crore and employment
generation of 23756 persons. The details of district wise Large & Mega industrial
proposals, investment and employment are given below:
Investment limits were enhanced with the enactment of Micro, Small & Medium
Enterprises Development (MSMED) Act, 2006. Micro, Small and Medium
Enterprises (MSMEs) Sector has emerged as a highly vibrant and dynamic sector
of the Indian economy over the last five decades. MSMEs contribute to
approximately 8% of the Countrys GDP, 45% of the manufacturing output and
40% of exports.
New Micro, Small and Medium Enterprises (MSME) Policy 2015-20 had been
introduced in July 2015, with fiscal benefits covering the categories of (a) Micro
and Small Enterprises (b) Medium Enterprises (c) Service Sector Enterprises (d)
Swachh Andhra Initiatives (e) MSME Parks (f) Marketing assistance (g) Awards &
Recognitions (h) Sick Units Revival.
Mega Project means the Industrial Enterprise, which is set up with a capital
investment of Rs.500 crore and above or the Industrial Enterprise which
creates direct employment to more than 2000 persons. In caseof Bio
technology industries Projects with capital investment of Rs.50 crore and above
or creating local employment for 200 people will be accorded mega project
status.
Industrial Infrastructure Scheme Clusters/Industrial locations were identified for
development based on the diagnostic study on providing physical infrastructures
as identified in the cluster. Priority was given to develop clusters having small
industry concentration. The Scheme is implemented on a public-private-
partnership initiative i.e. user driven with the support of the Government.
The Government of India (GoI) has announced a National Manufacturing Policy, 2011,
with the objective to enhance the share of manufacturing in GDP to 25% within a decade
and creating 100 million jobs. As per the Policy, NIMZs was developed as integrated
industrial townships with state-of-the art infrastructure and land use on the basis of
zoning; clean and energy efficient technology, necessary social infrastructure; skill
development facilities, etc. Government of Andhra Pradesh proposed to develop NIMZs
in Chittoor and Prakasam Districts for which in-principle approval was already accorded
by GoI.
CBIC is one of the mega infrastructure projects of Government of India which passes
through the State with the main objective to increase the share of manufacturing sector
in the GDP of the country and to create smart sustainable cities which will have world-
class infrastructure, convenient public transport power management and an efficient
water and waste management system.
Sectors of focus include general manufacturing; automobiles & auto ancillary, agro and
food processing, metals and metallurgical products; biotech and services sector.
A total of 26 priority projects across various sectors have been identified for
debottlenecking in the CBIC region, out of which 2 following projects pertain to AP state
(Roads sector) and Sanction is awaited from Ministry of Road Transport & Highways
(MoRTH).
4 Laning of NH-18A from Chittoor to Renigunta and SH-61 (now NH-71) from
Renigunta to Naidupeta (Estimated cost Rs.600 Crs).
4 Laning of NH-4 from Km 133/360 to 216/916 in the State of A.P. (from
Karnataka/ AP border to AP/ Tamilnadu border via Chittoor - Estimated cost
Rs.1214 Crs).
Out of (11) Additional Projects-A under CBIC, two projects are concerned to A.P
State i.e (1) Chittoor Drinking Water Supply (Implementing Agency is INCAP) and
(2) 6 Lane access road to Krishnapatnam (Implementing Agency is
GoAP/Private). Project is under process
The VCIC is a key part of the planned East Economic Corridor and Indias first coastal
corridor and the extent of it is considered from Pydibheemavaram in Srikakulam district
to Chennai in Tamilnadu. It has Influence area about 1,10,000 sq. km, (3.5% of Indias
area). It is estimated that it attracts about Rs.1,00,000 Crores and generates
employment to about 110 Lakh persons. The corridor contributes to 5% of national GDP
and has potential to increase GDP in the Corridor by 6 times. Food processing,
Chemical & Petroleum, Textiles, Electronics, Metallurgy, Pharmaceuticals, Automobiles
& auto ancillary etc. are the focus sector of Industries proposed.
The VCIC is proposed as a node centric development platform with four nodes: (i)
Vishakhapatnam node, (ii) Kakinada node, (iii) GannavaramKankipadu node, and (iv)
Yerpedu Srikalahasti node. Some of the critical industrial sectors shortlisted for
achieving the targeted outcomes are textiles, food processing, metallurgy, chemicals
and petrochemicals, electronics, pharmaceuticals, and automobiles.
The Index of Industrial Production (IIP) is a yardstick for measuring industrial growth.
It includes the relative change of physical production in the field of Industry during
specific period as compared to the previous period. The IIP is estimated monthly by
collecting data from selected units of Manufacturing, Mining, Quarrying and Electricity
As per Quick estimates of IIP, the Mining and Quarrying, Manufacturing and Electricity
sectors (at NIC 2 digit level) registered growth rate of 20.4%, 6.9% & 12.0% respectively
during the period April to Oct 2016 over April to Oct 2015.
The Industrial Production in terms of IIP is shown in chart 6.1. The IIP (General Index)
for the period from April to October 2016 in Andhra Pradesh stands at 231.9 against
207.3 observed in the same period of April to October 2015.
The capital employed by all the state level public enterprises was Rs.51,683.89 crore.
The top five State Level Public Enterprises with the highest Capital employed are
A.P.GENCO, APSRTC, APTRANSCO, APSPDCL and APSFC. The capital employed by
the top five SLPEs constitute 83.15 % of the capital employed by all the SLPEs in the
state.
The total turnover (including other income) made by all the 44 public enterprises was
Rs.47,475.65 crore. The top five state level public enterprises whose turnover is highest
are - A.P.GENCO, APSRTC, APSPDCL, APEPDCL and APSHCL. The turnover
achieved by the top five state level public enterprises to total turnover works out to
83.38%.
22 SLPEs, out of the total 44, made a profit of Rs.2098.96 crore during 2013-14. Out of
these following top five SLPEs made a profit of Rs.1798.32 crore, accounting for 85.70%
of the total profit made by all the 22 profit making SLPEs.
APSHCL-------Rs.655.88 crore
APGENCO-------Rs.555.76 crore
APMDC-------Rs.287.06 crore
APFDC---------RS.176.80 crore
APSWC-------Rs.122.82 crore
AP Minerals
The State is a house for various minerals specifically Crude Oil & Natural Gas, Barytes,
Bauxite, Heavy Mineral Beach Sand, Manganese, Limestone, Dolomite, Quartz,
Feldspar, Silica Sand, Semi-precious Stones, Ball Clay, Laterite, Iron Ore, Gold &
Diamonds, Mica, Asbestos, Calcite, Uranium, Lead, Zinc, Shale, Pyrophyllite, Steatite,
Serpentine, Graphite, Kyanite, Vermiculite, Clays, Ochre, Black & Colour Granites,
Limestone Slabs, Fullers Earth, Marble, Road Metal/Building Stone/Ballast,
Gravel/Earth, Mosaic Chips and Ordinary Sand.
Mineral Resources
The alkaline and ultra-basic rock formations in Guntur and Prakasam districts are
enriched in Nepheline Syenite.
The Dharwar Super Group Meta sediments contain rich deposits of Iron Ore
confining to Bellary Reserve Forest and surrounding areas in Anantapuramu
District.
The State is endowed with a number of scattered low grade iron ore deposits
in Prakasam, Krishna, Kurnool and YSR districts.
The State is well known for exclusive Granite varieties - Chimakurthy Black
Galaxy, Steel Grey, Ocean Blue, Black Pearl in Prakasam, Srikakulam Blue in
Srikakulam, Vizianagaram Green in Vizianagaram, River White, Kashmir White &
Moon White in Visakhapatnam, Yellow Granite in East Godavari, Silver Pearl,
Indian Labrador, Blur Paradise, Copper Green, Platinum Blur in Guntur, Viscon
White, Tiger Black, Kuppam Green English Teak in Chittoor, Pista Green in YSR
Dist, Chilli Red in Anantapur and Chocolate Brown in Kurnool Districts.
Mining for Limestone, Barytes and Natural Gas falls under large scale mechanized
sector, while Granite, Dolomite, Quartz, Feldspar, Clays etc all under semi mechanized
medium sector and the other minerals fall under semi mechanized small sector. Nearly
90% of the Mines fall under small sector and remaining 10% under medium and large
sectors.
The Mining Sector is identified as one of the growth engines and certain minerals have
been identified as focus minerals viz. Bauxite, Heavy minerals, Beach Sand, Limestone,
Gold, Diamond, Dolomite, Oil & Natural gas, Uranium, Garnet, Granite, Titanium, etc. for
establishment of Cement, Gas based Thermal Plants, Oil Refinery, Cutting & Faceting,
Mining & Refinery, Steel & Sponge, Alumina Smelter and Aluminium Refinery etc., as
focus industry for overall development of the Mining Sector in the State.
Different central public sector units established during the plans in the state
Cement Corporation of India (CCI) was started at Cuddapah district in 1982 and
Adilabad in 1983
Bharat Heavy Plates and Vessels Limited (BHPV) was started in Vishakapatnam
in 1966