Special Incentives Available in Andhra Pradesh
Industrial Investment Promotion Policy (2010-15)
- The Industrial Investment Promotion Policy first framed for 2005-10 has been continued for another five (5) years 2010-15 with minor revisions, the salient features of which are listed below:
- 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.
- Reimbursement of 25% VAT/ CST or State Goods and Services Tax (SGST) for a period of 5 years from the date of commencement of commercial production.
- 50% Reimbursement of cost involved in skill up-gradation and training the local manpower limited to Rs. 2000 per person.
- 50% subsidy on the expenses incurred for quality certification/ patent registration.
- 25% subsidy on specific cleaner production measures limited to Rs. 5.00 Lacs.
- Infrastructure like roads, power and water will be provided at door step of the industry for standalone units by contributing 50% of the cost of infrastructure from IIDF with a ceiling of Rs.1.00 Crore, subject to (a) the location should be beyond 10 kms from the existing Industrial Estates/ IDA’s having vacant land/ shed for allotment and (b) cost of the infrastructure limited to 15% of the eligible fixed capital investment made in the industry.
- Reservation of 10% of water for industrial use from the existing projects as well as future projects.
Textile & Apparel Promotion Policy (2010-15)
In concurrence with the extension of the Industrial Investment Promotion Policy, the Textile & Apparel Promotion Policy has also been extended for another five (5) year period of 2010-15, the salient features of which are listed below:
- The Industrial Investment & Promotion Policy, 2010-2015 shall be automatically applicable to Textile and Apparel Units whereby, Commissioner of Industries, Andhra Pradesh shall provide Single Window Clearance for establishment of units.
- To establish Textile Parks and Apparel Parks for encouraging spinning, weaving, processing
and garmenting units.
- Acquire and transfer land to the SPVs formed for the purpose of implementation of Scheme of Integrated Textile Parks (SITP) either as equity or on outright sale at acquisition cost of land with administrative charges as applicable.
- Provide all requisite clearances wherever needed and also provide necessary assistance for Power, water and other utilities to the ITP.
- Provide a special package of incentives for Mega Projects, classified under the Textile & Apparel Promotion Policy as those creating employment for more than 2000 people or with a capital investment more than Rs. 100 crores.
- Provide special incentive in power tariff to garmenting units.
- Additional concession of Rs 0.25 per unit of power to garmenting units over and above the concession of Rs 0.75 per unit of power extended in the Industrial Investment & Promotion Policy.
- Provide 100% reimbursement of stamp duty, transfer duty and Registration fee paid by Textile/Apparel units.
- Provide industrial water and power to the units at the doorstep of the Parks and connectivity to National and State Highways.
- Grant of Rs 1000 per worker as a one-time Infrastructure Grant to all Spinning units only for encouraging new ventures.
- Garmenting, weaving and processing units shall be given an incentive of Rs 5000 per worker employed, as grant for meeting critical expenditure of Training by dovetailing existing schemes of the Government of India.
- Notify all Textile and Apparel Parks as Public Utility Services and making applicable the Essential Service Maintenance Act (ESMA) to the Textile and Apparel Parks to provide facility of engaging workers beyond the normal working hours for achieving higher productivity and to catch export markets
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Conclusion
- The Government of India, Ministry of Textiles has formulated a comprehensive policy framework to take the textile sector to new heights. Sector; weaknesses have been identified and addressed through specific policy initiatives. The SITP Scheme aids the sector by providing capital grant-in-aid, whereas the TUFS scheme provides the units with fiscal incentives for technology up gradation. The TMC addresses the productivity issues of the most basic raw material, so as to improve quality and quantity of Cotton. The State Government on the other hand is providing various schemes to assist the sector.
- These policy enablers ensure that the manufacturing units across the value chain in the sector would have an enhanced viability.
