Industrial Promotion – Automobile Policy 2014-19
GOVERNMENT
OF ANDHRA PRADESH
A
B S T R A C T
Industrial
Promotion – Automobile Policy 2014-19 for encouraging Auto Industries to set-up
their base in the State of Andhra Pradesh – Orders – Issued.
===========================================
INDUSTRIES & COMMERCE (IP & INF)
DEPARTMENT
G.O. MS. No.197
Dated: 01.12.2014
O R D E R:
Government
is extending various Incentives for encouraging establishment of new industrial
Enterprises in the State since 1961. In G.O. Ms. No.178, Ind. & Com.
(IP)Dept., Dt:21.06.2005, Government have issued certain incentives to tiny,
SSI, Medium, Large & Mega industries under Industrial Investment Promotion
Policy 2005-2010, which was concluded by 31.03.2010. In continuation,
Government have issued Industrial Investment Promotion Policy 2005-2010 vide G.O. Ms. No. 61,
Ind. & Com. (IP), Dept.
Dt:29.6.2010.
2. Government observed that in Andhra Pradesh there are hardly any auto companies. To attract Auto majors like Honda, Hyundai, Maruti etc. to
set-up their second plants in Andhra Pradesh, a proactive Policy needs to be formulated
with emphasis on creation of an automobile Hub in the State to make Andhra
Pradesh as one of the top auto- clusters in India. Government therefore felt that it is necessary to
bring out an exclusive Automobile Policy for encouraging Auto Industries to
set-up their base in the State.
4. Government after careful examination
decided to introduce the auto mobile policy 2014-19. Under the new “Auto mobile
policy” the Government approved the following financial benefits to industries
for establishment of Automobile industries in the State:
(I) Eligibility
The mega integrated automobile project will mean automobile
projects that will have engine plant, press shop, Body shop, transmission line,
assembly line, paint shop etc. either on its own or in consortium or joint
venture mode in the same location with investments over and above Rs.1500 Cr.
and which will bring ancillary units of a minimum of Rs. 500 Cr. investment
within 3 years would be eligible for incentives under the Policy. This
investment will include the investment made in land, building and plant &
Machinery only.
(II) Pattern of benefits/Incentives/CONCESIONS
(1)Land
Government
land, wherever available, at a concessional rate on case to case basis.
(2) Other Industrial Infrastructure facilities
(a)
Uninterrupted
24 hrs power supply will be provided.
(b)
4 lane road
connecting the plant to the nearest National
Highway or State Highway will be provided.
(c)
All state
level clearances will be provided under a Single Window
system within prescribed 60 days.
(3) State –Fiscal Incentives:
(a)
100% CST
reimbursement for 10 years or GST regime whichever is earlier;
(b)
Gross VAT
reimbursement on sale of finished goods for 20 years or 150 % of Capex
spent in the first 7 years, whichever is
earlier;
(c)
Concessional
state VAT rates on inputs /raw materials
&
capital goods @ 5% for 20 years;
(d)Reimbursement of State VAT of input credit for a
period of 20 years;
(e)Power cost reimbursement @Rs.0.75 per unit for 5
years;
(f)
No entry
tax and no Octroi duties on any items
procured by the investors;
(g)
Reimbursement
of stamp duty and transfer duty on the
lands meant for industrial use;
(h)
Water supply will be made at 50
% of the price of existing industrial supply tariff for the initial 5 years
from the date of commencement of commercial production.
(4) Central –Fiscal Incentives:
As per the
A.P Reorganization Act, whatever package of incentives Government of India, as
and when, grants to Andhra Pradesh , such package would be made applicable to
the automobile companies to the extent they are relevant .
(III) Infrastructure:
Government
aims to develop an Automobile Hub in Nellore –
Chittoor region, which is close to Chennai and Bangalore cities.
It would also endeavor to improve necessary infrastructure like logistic parks,
road connectivity, power and water supply and the like.
(IV) Expectations from
the Project Proponent:
(a)
The project (mother plant)
should be fully established within 3 years;
(b)
The project proponent should
make investment in training either by creating its own training facility or by
supporting and collaborating with local technical institutions by way of
provision of hardware, software faculty etc. and thus create high quality trained manpower in the
region to support the automobile industry;
(c)
To undertake CSR in an
effective manner;
(d)
To mandatorly provide
employment to local people in respect of all unskilled jobs.
4. Necessary amendments /Orders will be issued
by the concerned Departments.
5. Detailed Guidelines will be issued by the
Commissioner of Industries separately.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF
ANDHRA PRADESH)
J.S.V.PRASAD
PRINCIPAL SECRETARY TO
GOVERNMENT & CIP
Post a Comment