Andhra Pradesh Electronics Incentives
“To develop Electronics Industry as an important Growth Engine for Andhra Pradesh through effective use of the talent pool, skill enhancement, promotion of innovation & future technologies and creation of excellent infrastructure.”
The Policy aims to attract investments to the tune of USD 5 Billion in ESDM sector and create an employment of 0.4 Million by 2020.
CCITI (Consultative Committee for Information Technology Industry) would administer the incentives in a speedy, time-bound and transparent manner.
- Company category and incentives model:
|Category||Incentive Amount based on Investment|
|Mega Projects||30% of investment capped at ₹250Cr.|
|General Projects||25% of investment capped at ₹250Cr.|
|MSME/ SC/ ST/ Women Projects||30% of investment capped at ₹250Cr.|
- Power Subsidy: 25% Power subsidy for Mega Projects and 20% Power subsidy for all other categories of companies for a period of five years.
- Training Companies are eligible for investment subsidy of 50% or Rs. 1 Cr, whichever is lower.
- Exemption of Electricity Duty: New Electronic Hardware units, after coming into commercial operations will be entitled for 100% exemption on Electricity duty for a period of 5 years.
- VAT/ CST Reimbursement: 100% Tax reimbursement of VAT / CST, for the new units started after the date of issue of this Policy, for a period of 5 years from the date of commencement of production for products manufactured in AP and sold in AP.
(Mega Projects: Mega Projects are the projects or the investment intents with minimum Investment of Rs.250 crores (2.5 Billion) or the ones that can create an employment of more than 2,000 persons in a span of five years. A special dispensation would be provided to the Mega Projects.)
- Capital investment subsidy of 50% capped at ₹1 crore for setting up finishing schools for Electronics Sector in colleges and educational institutions. Local Electronics associations imparting training in Electronics domain would also be entitled to this benefit.
- Multiple Electronics Clusters (MECs): MECs intends to create infrastructure highly suited to electronics units by providing a subsidy of 50%. The Government of Andhra Pradesh proposes to promote the development of 20 EMCs across the State, by facilitating the preparation of project proposals by the entrepreneurs and providing single-window clearances.
- Power subsidy to be harmonized to 20% for 5 years across all category of companies.
- Renewable Energy: Units using renewable source of energy with a minimum of 40% of their power requirements coming from renewable sources for their operations and manufacturing will be eligible for additional incentives such as
-Electricity Duty exemption for 5 years
-Sales tax exemption for two additional years shall be available against the Carbon Credits earned on a year-on-year basis.
- Mixed land use: Up to 20% of the built-up space can be used for employee housing and recreation purposes.
- Project Timelines: Companies / Enterprises which are allotted land shall follow the timelines as mentioned below:
|T = Date of CCITI Meeting & Decision for Land Allotment|
|T+3 months||T+6 months||T+36 months||T+60 months||T+72 months|
|Company to start operations in leased premises||Begin Construction||30% of employment obligation to be fulfilled||70% fulfilled||100% fulfilled|