How to get incentives under Industrial Development Policy 2020


New Beverage Can Manufacturing plant for supply of Food Beverage cans to Carbonated Soft drinks, food packing companies at Sri City, Chittoor District with an Investment  of Rs.588.88 crore with a potential to create employment to 750 people Industrial Development Policy 2020.

The Company has requested for the following benefits Industrial Development Policy 2020:

  • Reimbursement of 100% Stamp Duty, Transfer Duty and Mortgage Duty.
  • Reimbursement of power cost @ Rs. 1.50 per unit for a period of 5 years
  • Subsidy of 50% of Waste Water Treatment Plant cost or Rs. 50 Crore whichever is lower relating to Waste Water Treatment Plant under incentive for Swachh Andhra. The estimated cost is Rs. 9.87 crore.
  • Reimbursement of VAT on Works Contract Tax for a period of 5 years
  • 75% net VAT/CST/SGST reimbursement for a period of 10 years from the date of commencement of commercial production or up to the realization of 135% fixed capital investment whichever is earlier.
  • Reimbursement of Training cost at Rs. 10,000/- per personal for 750 people for 5 years.

Empowered Committee of Secretaries (EC) has discussed the proposal and recommended to SIPB to extend the following incentives to M/s Rexam HTW Beverage Can (India) Private Limited:-

  • Reimbursement of 75 % VAT for a period of (7) years from the date of commencement of commercial production or upto realization of 100% fixed capital investment, whichever is earlier.
  • Reimbursement of 50 % cost of Waste Water Treatment Plant cost or Rs. (50) Crore whichever is lower under the  Swachh Andhra initiative to the extent the initiative is beyond the limits prescribed by Pollution Control Board.
  • Reimbursement of Training cost @ Rs.10,000 per person for (750) persons
  • All other benefits as per Industrial Development Policy (IDP) 2015-20.
  1. Andhra Pradesh State Investment Promotion Board (SIPB) discussed the proposal of M/s. Rexam HTW Beverage Can (India) Private Limited in detail and recommended to extend the following incentives :-
  • Reimbursement of 75 % VAT for a period of (7) years from the date of commencement of commercial production or upto realization of 100% fixed capital investment, whichever is earlier.
  • Reimbursement of 50 % cost of Waste Water Treatment Plant cost or (50)  Crore whichever is lower under the  Swachh Andhra initiative.
  • Reimbursement of Training cost @ Rs.10,000 per person for (750) persons since the investment is by a marquee investor.
  • All other benefits as per Industrial Development Policy (IDP) 2015-20.

Government after careful examination of the recommendations of the State Investment Promotion Board, hereby decided to extend the following incentives to M/s. Rexam HTW Beverage Can (India) Private Limited to set up new Beverage Can Manufacturing plant for supply of Food Beverage cans to Carbonated Soft drinks, beverage packing companies at Sri City, Chittoor District with a Foreign Direct Investment of Rs.588.88 crore with a potential to create employment to 750 people:

  • Reimbursement of 75 % VAT for a period of (7) years from the date of commencement of commercial production or upto realization of 100% fixed capital investment, whichever is earlier.
  • Reimbursement of 50 % cost of Waste Water Treatment Plant cost or (50) Crore whichever is lower under the  Swachh Andhra initiative.
  • Reimbursement of Training cost @ Rs.10,000 per person for (750) persons since the investment is by a marquee investor.
  • All other benefits as per Industrial Development Policy (IDP) 2015-20.

The Director of Industries, Andhra Pradesh, Hyderabad shall take necessary action, accordingly and intimate the status of the progress of work done by the unit from time to time to the Government.

For  Green Filed Project Biscuits and Rusk manufacturing unit in Kuppam, Chittoor District with an investment of Rs. 145 crore providing direct employment to 900 people directly and 100 people indirectly. The Capacity of the plant would be 30,000 M.Tons per annum.

The Company requested for the following:

  • 60 acres of developed Industrial plot at Kuppam, Chittoor District
  • Requests within the Policy
  • Capital subsidy to an extent of 25% of project cost limited to Rs. ­5 Crore as per   FP     Policy 2015-20

(ii)    Interest subsidy of 7% per annum on the term loan taken for fixed capital investment, for a period of   5 Years

  • Power cost reimbursement as per IDP 2015-20
  • Other incentives as per Food Processing Policy
  • 25% subsidy under Swachh Andhra treat the effluent generated from the factory within the plant premises and the treated water within the permissible limit of BOD and COD and discharged to designated effluent drain.
  • Requests outside the Policy

100% VAT reimbursement for a period of 10 years up to 200% of fixed capital investment.

Empowered Committee of Secretaries has discussed the proposal of M/s. Britannia Industries Ltd., in detail and the Chairman, Empowered Committee of Secretaries recommended to place matter before the SIPB.   The Empowered Committee of Secretaries agreed and recommended to extend all the other incentives as per the Food Processing Policy 2015-20.

State Investment Promotion Board (SIPB) has discussed the proposal of M/s. Britannia Industries Ltd., in detail and recommended to extend the following incentives:

100% VAT&CST reimbursement for a period of (7) years or up to realization of 150% of the investment, whichever is earlier, as this was investment in a backward area of the State by a marquee investor and having the potential to drive further investment into the area. Further it was decided not to quote the incentive granted now as precedence, while finalizing future investment proposal.

All other incentives as per Food Processing Policy 2015-20.

Government after careful examination of the recommendations of the State Investment Promotion Board, hereby decided to extend the following incentives to M/s. Britannia Industries Ltd. for the proposed Green Filed Project Biscuits and Rusk manufacturing unit in Kuppam, Chittoor District with an investment of Rs. 145 crore providing direct employment to 900 people directly and 100 people indirectly. The Capacity of the plant would be 30,000 M. Tons per annum:

100% VAT&CST reimbursement for a period of (7) years or up to realization of 150% of the investment, whichever is earlier, as this was investment in a backward area of the State by a marquee investor and having the potential to drive further investment into the area. Further it was decided not to quote the incentive granted now as precedence, while finalizing future investment proposal.

All other incentives as per Food Processing Policy 2015-20.

The Director of Industries, A.P, Hyderabad/ Chief Executive Officer, Andhra Pradesh Food Processing Society, Hyderabad shall take necessary action, accordingly and intimate the status of the progress of work done by the unit from time to time to the Government.

Large Industries

Large Industry means an industry in which the investment on plant and machinery is less than Rs 500 crores except Micro, Small and Medium Enterprises.
5.2.1. Reimbursement of 100% stamp duty and transfer duty paid by the industry on purchase of land meant for industrial use.
5.2.2. Reimbursement of 100% stamp duty for lease of land/shed/buildings, mortgages and hypothecations
5.2.3. Stamp duty will be reimbursed only one time on the land. Stamp duty will not be reimbursed on subsequent transactions on the same land
5.2.4. GoAP is committed to supplying uninterrupted 24×7 quality power to all industries operating in the state.
5.2.5. Fixed power cost reimbursement @ 1.00 per unit for a period of five years from the date of commencement of commercial production.
5.2.6. Reimbursement of 50 % net VAT/CST/SGST 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 to Large Industries.
5.2.7. Large Industries engaged in recycling waste into environment friendly products/energy (such as waste to energy, waste to bio-gas, waste to manure) will be brought under zero rated category schedule of the VAT Act.
5.2.8. 10 % subsidy on cost of plant & machinery for specific cleaner production measures limited to 35lakhs for large industries, provided the measures are certified by Andhra Pradesh Pollution Control Board (APPCB).
5.2.9. 25% subsidy for sustainable green measures on total fixed capital investment of the project (excluding cost of land, land development, preliminary and pre-operative expenses and consultancy fees) for below
mentioned green measures with a ceiling of 50 crore.

a) Waste water treatment: Constructing effluent treatment plant and sewage treatment plant and using recycled water for industrial purpose, especially zero discharge systems.

b) Green Buildings: Buildings which obtain green rating under the Indian Green Building Council (IGBC/LEED Certification) or Green Rating for Integrated Habitat Assessment (GRIHA) systems.

c) Use of renewable source of power (erecting captive sun, wind and biomass plants etc.).
d) Installing Continuous Emission Monitoring System (CEMS) for red category industries. The information should be disseminated continuously to APPCB.
e) Adopting rain water harvesting; restoring water bodies by de-silting defunct water bodies.

5.3.0. Scheduled Castes / Scheduled Tribe Entrepreneurs

SC/ST Entrepreneurs mean those units established as sole Proprietor or invariably having 100% share in Partnership/Private Limited Companies. Scheduled Caste and Scheduled Tribe entrepreneurs can also set up industries covered in the separate list as specified in the Guidelines.

5.3.1. 100% reimbursement of Stamp duty and transfer duty paid by the industry  on purchase of land meant for industrial use.

5.3.2. 100% reimbursement of Stamp duty for Lease of Land/Shed/Buildings and also mortgages and hypothecations.

5.3.3. 50% rebate in land cost limited to 20 lakhs in Industrial Estates/Industrial Parks

5.3.4. 25% Land conversion charges for the industrial use limited to 10 lakhs.

5.3.5. Fixed power cost reimbursement @ 1.50 per unit for 5 years from the date of commencement of commercial production.

5.3.6. Seed capital assistance to First Generation Entrepreneurs @25% of the Machinery cost, which will be deducted from the eligible investment subsidy.

5.3.7. 35% investment subsidy on fixed capital Investment by SC & ST Entrepreneurs and additional 10% investment subsidy for SC Women & ST Women Entrepreneurs, with a maximum limit per unit is 75 lakhs (i.e. 35% for SC & ST Entrepreneurs and 45% for SC Women and ST Women entrepreneurs). Additional 5% investment subsidy for units set up in Scheduled Areas by ST entrepreneurs with a maximum limit per unit is 75 lakhs.

5.3.8. 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.

5.3.9. 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.

5.3.10. 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.

5.3.11. 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. This benefit is also applicable to the Service Sector units set-up under this policy.
5.3.12. 50% Reimbursement of cost involved in skill upgradation and training local manpower limited to 5,000 per person.
5.3.13. 100% subsidy on the expenses incurred for quality certification/ patent registration limited to 3 lakhs for micro and small enterprises.
5.3.14. Incentives under Swachh Andhra will be applicable for SC/ST entrepreneurs.
5.3.15. For enterprises set up by SC/ST entrepreneurs, infrastructure like roads, power and water will be provided at doorstep of the industry for standalone units by contributing 50% of the cost of infrastructure from IIDF with a ceiling of 1 crore, subject to:
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.
Note: 50% of the budget will be allocated to manufacturing activities and 50% for service sector activities. However, in service sector high end vehicles (except taxies, lorries, tippers, water tanker etc. meant for self-employment) will not be allowed under the scheme.
5.4.0. Special Package for BC entrepreneurs
The provisions in the package are applicable to those units established as sole Proprietor or invariably having 100% share in Partnership/Private Limited Companies.

5.4.1. 100% reimbursement of Stamp duty and transfer duty paid by the industry on purchase of land meant for industrial use.
5.4.2. 100% reimbursement of Stamp duty for Lease of Land/Shed/ Buildings and also mortgages and hypothecations.
5.4.3. 50% rebate in land cost limited to 20 lakhs in Industrial Estates/Industrial Parks.
5.4.4. 25% Land conversion charges for the industrial use limited to 10 lakhs.

5.4.5. Fixed power cost reimbursement @ 1.50 per unit for 5 years from the date of commencement of commercial production.

5.4.6. Seed capital assistance to First Generation Entrepreneurs @25% of the Machinery cost, which will be deducted from the eligible investment subsidy.

5.4.7. 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).

5.4.8. Reimbursement of 100% net VAT/CST/SGST to Micro and Small Enterprises fora period of 5 years from the date of commencement of commercial production.

5.4.9. 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.

5.4.10. 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

5.4.11. 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.

5.4.12. 50% Reimbursement of cost involved in skill upgradation and training local manpower limited to 5,000 per person.

5.4.13. 50% subsidy on the expenses incurred for quality certification/patent registration limited to 3 lakhs for micro and small enterprises.

5.4.14. Incentives under Swachh Andhra will be applicable for BC entrepreneurs.

5.4.15. For enterprises set up by BC entrepreneurs, infrastructure like roads, power and water will be provided at doorstep of the industry for standalone units by contributing 50% of the cost of infrastructure from IIDF with a ceiling of 1 crore, subject to:
i. The location should be beyond 10 Kms from the existing Industrial Estates/IDAs having vacant land/shed for allotment.
ii. Cost of the infrastructure limited to 15% of the eligible fixed capital investment made in the industry.

5.5.0. Women Entrepreneurs

Women entrepreneurs mean those units established as sole Proprietress or invariably having 100% share in Partnership/Private Limited.

5.5.1 25% investment subsidy on fixed capital investment by women entrepreneurs, with a maximum limit per unit of 30 lakhs.

5.5.2 Seed capital assistance to First Generation Entrepreneurs @15% of the Machinery cost, which will be deducted from the eligible investment subsidy. 5.5.3 All other incentives as per Industrial Development Policy 2015-20.

5.6.0. Mega Projects
Projects with an investment of at least 500 crore or direct employment generationof 2,000 will be accorded mega industry status. Further, for sectors such as textiles, food processing, biotech etc. definition of mega project may be different.

The Government will extend tailor-made benefits to mega projects to suit particular investment requirements on case to case basis based on the gestation period, pioneering nature, locational aspects, technology, project’s importance to the state’s industrial growth and its ability to generate large scale employment for
people or revenues for the state.

5.7.0. Land

The state of Andhra Pradesh has an identified land bank of 3 lakh acres and is further in the process of consolidating an additional industrial land bank of approximately 7 lakh acres. The consolidated land bank of 10 lakh acres would give the state a strategic edge in attracting investments. To achieve the same,
government shall identify and acquire land through a transparent and farmer friendly land pooling/acquisition policy. This land will be administered within the following framework:

5.7.1. Inventory of public/pooled/acquired lands: All such lands shall be surveyed and the information made available in the public domain. It is envisaged that GIS will be used to create land inventory and update information of land parcels on real time basis

5.7.2. Land Information System: Key details and parameters about land parcels (e.g. soil type, distance from sea-ports, airports, railway stations etc.) will be made available online.

5.7.3. Land Pooling/Acquisition and Allotment

a. Land consolidation

Consolidation of Industrial Land will be done by the Industries & Commerce Department following the state’s land pooling/acquisition policy.

b. Land allotment

Land shall be allotted on 99 years lease. SIPB may consider outright sale of land in the following cases:
i. the investment is exceeding Rs.100 Crores;
ii. the gestation period of the project is more than 5 years;
iii. the industry is located in backward areas to be notified by the

Government, for this purpose;

iv. departments, PSUs and agencies of the Central Government;
v. financial closure of the project requires a sale;
vi. projects identified by the Government as critical and prestigious;
vii. other categories to be notified by the Government from time to time.

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