Industries

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Economic Policies of AP
1. Single Desk Policy 2015-20

2. Industrial Development Policy 2015-20
3. Micro, Small and Medium Enterprises Policy 2015-20
4. Retail Trade Policy 2016
5. Port Policy 2015-20
6. Aerospace and Defence Manufacturing Policy 2015-20
7. Automobile and Auto Components Policy 2015-20
8. Civil Aviation Policy 2015
9. Textile and Apparel Policy 2015-20
10. Biotechnology Policy 2015-20
11. Food Processing Policy 2015-20
12. Fisheries Policy 2015
13. IT and Electronics Policy 2014-20
14. Solar Policy 2015
15. Wind Power Policy 2015
16. Tourism Policy 2015-20
Single Desk Policy 2015-20
Government of Andhra Pradesh is committed to attracting and facilitating

industrial investments in the state by ensuring highest ease of doing business.
To that end, the Single Desk Policy will be a key instrument in achieving this goal.
The Single Desk Bureau (Bureau) will be chaired by the Commissioner of

Industries and shall comprise of Head of Departments (HoDs) from
departments.
District Industries Promotion Committee (DIPC) chaired by the District

Collector shall act as the Empowered Committee at the District Level. It shall
provide approvals & clearances for setting up new industrial units and for
expansion of existing industrial units in the Micro, Small and Medium Enterprise
sector in line with the threshold investment limits defined from time to time as per
the Micro Small and Medium Enterprises Development Act, 2006.
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

ecosystem to provide all clearances required to setup industry within 21

working days.
This shall be achieved by adopting following measures: Measures to simplify

process and procedures
Spot approvals
Deemed approvals based on self certification
Streamline procedures
Parallel processing of clearances
Assignment of inspection to private technical experts
Policy: Review of applicable Acts, Rules and policies of respective Competent

Authorities with the objective of speedy clearances.
Institutional: Strengthening capacity of respective Competent Authorities, District

Industries Centres (DICs) etc.
Process Streamlining: Streamlining operations of respective Competent Authorities

and Nodal Agencies by effective monitoring and tracking by investors as well as
Competent Authorities
Industrial Development Policy 2015-20
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

Industrial development promotes higher capital formation, raises wage

incomes and absorbs surplus workforce to bring about equitable
development. Therefore the State Government has accorded top priority to
industrial growth as a means to mitigate poverty and unemployment. Andhra
Pradesh Industrial Development Policy, 2015-20 aims to establish state-of-the-art
infrastructure, promote manufacturing, enhance inclusivity, foster innovation and
create employment opportunities across sectors. Various policy instruments have
been detailed in this document to catalyze the same.
The Policy Vision is - To make Andhra Pradesh a progressive and highly
industrialized state a State that is a centre of technology and innovation...And,
a joyous population confident of its bright future...
The Policy Objectives are:
a. To ensure sustainable & inclusive industrial growth
b. To be among the Top 3 states in terms of industrial investments by 2022
c. To be the most preferred logistics hub and Indias gateway to East and
Southeast Asia by 2029

d. To enhance the quantum and quality of skilled manpower and create

significant employment opportunities
Policy Targets
1. Increase the contribution of manufacturing to GSDP from 95%(2013-14) to

15% by 2020
2. Increase the contribution of industries to GSDP from 20.7% (2013-14) to
25% by 2020
3. Attract investment to the tune of 2 lakh crore by the end of 2020
4. Create employment opportunities for an additional 10 lakh people by the
end of 2020
Strategy & Thrust Areas
GoAPs strategy of attracting sizeable industrial investment is predicated on

the following factors:
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
In addition, GoAP has identified 10 thrust areas for greater focus:
a. Agro & Food Processing

b. Life sciences (including pharmaceutical, biotechnology & medical
equipment)
c. Textile & Apparel
d. Electronics & Information Technology
e. Aerospace& Defence
f. Automobiles& Auto Components
g. Petroleum, Chemicals, (including Fertilizers) and Petrochemicals
h. Energy
i. Mineral based industry
j. Leather

Location wise Key Investment opportunities
Ease of doing business:
Single Desk Clearance

Spot Approvals:
Deemed Approval based on self-certification
Assignment of Inspection to Private Technical Experts: Based
State Investment Promotion Board (SIPB)
Empowered Committee of Secretaries
Project Category Definition
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. Large Industrial Project: Large Project is a unit in which the investment

on plant and machinery is less than 500 crore and more than the
investment threshold for Medium enterprises as in MSMED Act. Further,

for sectors such as Textiles, Food Processing, Biotech etc. definition of

large projects may be different. Kindly refer to sector specific policies for
project category definition.
b) Mega Industrial Project: Projects with an investment of at least 500 crore or

direct employment generation of 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. Kindly refer to sector specific policies for project
category definition.
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, projects importance to
the states industrial growth and its ability to generate large scale employment for
Incentives for large industry unit
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.
100% of stamp duty for lease of land/shed/buildings, mortgages and hypothecations

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.
Special Package for SC/ST entrepreneurs
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.

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 to 10 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 SC & ST
Entrepreneurs and additional 10% investment subsidy for SC Women &ST
Women Entrepreneurs, with a maximum limit per unit is 75lakhs (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.
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. This benefit is also applicable to the Service
Sector units set-up under this policy.
12. 50% Reimbursement of cost involved in skill upgradation and training local
manpower limited to 5,000 per person.
13. 100% 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 SC/ST
entrepreneurs.
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.
Special Package for BC entrepreneurs
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
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.

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:
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.
c) Package for Women Entrepreneurs
The following incentives are applicable for 1st generation women entrepreneurs and are
applicable for micro and small units only.
1. 25% investment subsidy on fixed capital Investment by women Entrepreneurs,

with a maximum limit per unit of 30 lakhs.
Machinery cost, which will be deducted from the eligible investment subsidy.
3. All other incentives as per Industrial Development Policy 2015-20.
Industrial Area Development Authority
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.
Industrial corridors will be developed on node based approach. Funding of the

node will be provided by multi-lateral agencies such as ADB / JICA. The
proposed Corridor nodes in the state are:
a) Under Visakhapatnam Chennai Industrial Corridor (VCIC the following nodes

will be developed:
a. Visakhapatnam (Phase I)
b. Srikalahasti-Yerpedu (Phase I)
c. Kakinada (Phase II)
d. Gannavaram-Kankipadu (Phase II)
b) Under Chennai Bangalore Industrial Corridor (CBIC) the following node will
be developed:
a. Krishnapatnam in Nellore Dist.

Under Petroleum, Chemicals and Petro chemicals Investment Region(PCPIR) the

following locations will be developed:
a. Vishakhapatnam
b. Nakkapalli
c. Kakinada
National Investment and Manufacturing Zones (NIMZ)
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.
Information Technology Investment Regions (ITIR)
ITIRs have been proposed in two districts:

a. Visakhapatnam
b. Chittoor
ITIR would be a combination of IT/ITES and Electronics Hardware Manufacturing

Units; Public utilities, residential area, social infrastructure and administrative
services. Such regions could include new integrated townships, SEZs, industrial parks
etc. ITIR would have a clear delineation between the IT/ITES areas and Electronic
Hardware Manufacturing (EHM) areas.
Each ITIR is expected to be a specifically notified investment region with minimum

area of 40 Sq.Kms planned for IT/ITES and EHM Units.
Smart Industrial Township (SIT)
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:
a. Four lane road to the nearest national highway

b. Dedicated feeder for uninterrupted power supply
c. Dedicated water supply
d. Right of way to create a connectivity to the nearest railway line and or port
e. Fiber connectivity with no bandwidth constraints
Special Economic Zones (SEZ)

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
Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has developed over

300 industrial parks (including SEZs) spread over an extent of about 1,21,655 acres.
GoAP will develop new industrial parks and upgrade/maintain the existing ones.
Micro, Small and Medium Enterprises Policy 2015-20
Government of Andhra Pradesh (GoAP) accords top priority to development of

Micro, Small and Medium Enterprises (MSMEs) for catalyzing growth. Development
of MSMEs has a significant impact on employment generation, improvement in standard
of living and inclusive growth
The Policy aims to generate employment opportunities to 3.5 lakh people by
attracting investment of Rs. 15,000 Crores by 2020.
MSME sector has emerged as a highly vibrant and dynamic sector of the Indian
economy over the last five decades. MSMEs contribute to nearly 8% of the countrys
GDP, 45% of the manufacturing output and 40% of the exports.
MSMEs provide the largest share of employment after agriculture and hence,
development of MSME sector can contribute enormously to the socio-economic
development of the country.
Tactical Advantage of A.P. for MSME Development :
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.
The below definition pertains to MSMEs in manufacturing sector in terms of

investment in plant and machinery as per the MSMED Act, 2006, as amended from time
to time.
a. Micro: Does not exceed 25 lakhs
b. Small: More than 25 lakhs but does not exceed 5 crore
c. Medium: More than 5 crore but does not exceed 10 crore
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.
D. Fixed Capital Subsidy

a. 15% investment subsidy on fixed capital investment subject to a maximum of 20
lakhs for micro and small enterprises
a. Investment subsidy will also be extendable to the identified service activities related to
industries setup anywhere in the State as per rules.

E. Seed Capital Assistance For Micro Enterprises:

Seed capital assistance to First Generation Entrepreneurs to set-up Micro Enterprises
@10% of the Machinery cost, which will be deducted from the eligible investment
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.
Retail Trade Policy 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
Setting up of world-class warehouses/ distribution centres on PPP basis

Food and Grocery business retail enterprises declared as Essential
Services under AP Essential Services Maintenance Act
Distribution centres and warehouses declared as Public Utility under the
Industrial Disputes Act, 1947
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
States inspection system through an inspection portal, which is computerised,

randomised, and risk-based
b. Skill Development
An initial provision of Rs.10 crore for training 1 lakh youth over a period of 5
years
50% financial assistance towards capital expenditure for setting up Centres of

Excellence in coordination with retail associations on PPP
c. Setting up of Distribution Centres/ Warehouses

APIIC will allot land for Distribution Centres/ warehouses under the commercial
category on lease for 33 years
d. Relaxation of Stocking Limit

Stoking limits for essential commodities prescribed under Essential Commodities

Act, 1955 shall be relaxed for retail enterprises (multiple outlet) or departmental
retail enterprises
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
Port Policy 2015-20

The key initiatives are constitute of AP Maritime Board responsible for
integrated planning development and maintenance of all ports, post proximal are
development, coastal master plan, promotion of maritime institutions for skill
development and to develop Rail, Road, Waterway infrastructure
The policy targets to capture 15% of the Indias container traffic by 2019 and
25% by 2025
70% of the Indias east bound container traffic by 2025
2 to 3 Brown Field development of mega container ports
The fiscal incentives include exemption of sales tax/ VAT/Entry tax/ Stamp duty/
Registration fees/ Seigniorage charges and 8% Annual Lease rate concession
Aerospace and Defence Manufacturing Policy 2015-20
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
Major Manufacturing Clusters

Aerospace and Defence parks on PPP basis in Ananthapur and Chittoor /

Nellore districts
Maintenance, repair and overall facility proposed at Bhogapuram
Air Cargo complex near Vishakapatnam

Key Initiatives
Establishment of Aerospace & Defence clusters for ecosystem development
Promotion of R&D
Encouragement of skill development
Development off Aerospace & Defence parks, MRO facility and Air Cargo
complex
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
Automobile and Auto Components Policy 2015-20
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
Provision of land to dependent ancillary units at same rate as OEM (wherever

Government allocates land to OEM and up to a maximum of 50% of the land
allocated to OEM)
24 X 7 reliable power
Major Manufacturing clusters

Multiple world class Automotive Suppliers Manufacturing Centres (ASMC) on a
PPP mode
Two major auto clusters (apart from the ASMCs) in the districts of Chittoor
and Nellore
Key Incentives
Capital Subsidy for Auto Clusters and ASMC developers 50% of fixed capital
investment in building & common infrastructure

75% reimbursement of patent cost and 50% reimbursement for quality

certification
For Mega Integrated Automobile Projects
100% CST reimbursement for 10 years or GST regime whichever is earlier
Gross VAT/SGST reimbursement on sale of finished goods
75% reimbursement of Gross VAT/SGST for 10 years
Civil Aviation Policy 2015
The policy targets an investment of Rs.20,000 crores and 5000 new jobs by 2020.
Vision and Objectives of the Policy

The Vision for Andhra Pradesh civil aviation policy is as follows
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
a) To improve air connectivity within Andhra Pradesh by -

1. Facilitating up-gradation and augmentation of the infrastructure such as air
navigation services, runway, apron, night landing facilities, terminal building,
passenger amenities etc. at the existing airports in coordination with AAI.
2. Key focus areas in this direction include expansion of Visakhapatnam,
Vijayawada and Tirupati airports as international airports and
expansion/modernization of Rajahmundry airport
3. Developing new airports at identified important places, preferably through PPP
mode
4. Promoting development of no-frills airports across the state, which will act as
centres of economic activity in interior regions
5. Promoting development of supporting infrastructure such as air cargo processing
units, road connectivity, tourism infrastructure and industrial clusters that would
help stimulate demand for regional air travel and investments in aviation sector.
6. Developing airports/helipads /heliports in all the Districts, especially at places of
tourist and business importance
7. Providing air connectivity from these places to three major cities in the State-
Vishakhapatnam, Vijayawada and Tirupati, through scheduled air transport
services in the medium term.
8. Incentivizing airlines to operate regular air services from/to all regional airports
within the State on need basis.
9. Promoting intra and inter-state air connectivity between places of economic,
tourism and religious interest to their existing and potential markets.

b) To promote development of aviation infrastructure through creation of -

a. Aircraft Maintenance, Repair and Overhaul (MRO) facilities
b. Air cargo facilities such as cold storages, Air Freight Stations(AFS),
warehouses and other air cargo processing facilities
c. Aviation training and educational institutes
d. Airport cities (aerotropolis) around major airports to leverage the economic
potential around airports
e. Aerospace parks/ Special Economic Zone (SEZs) near major airports.
c) To make Andhra Pradesh a preferred destination for investment in aviation and

allied businesses by creating airports as hubs of economic activity by
1. Facilitating multi-modal connectivity of airports with ports, expressways and
railways and their integrated planning.
2. Promoting seaplane services and aero-sports activities to boost tourism
3. Encouraging air ambulance facilities and services for medical emergencies and
disaster management
4. Promoting aerospace manufacturing and allied industries.
Objectives
To improve air connectivity within the state of Andhra Pradesh
To promote development of aviation infrastructure.

To make Andhra Pradesh a preferred destination for investment in aviation and
allied businesses by creating airports as hubs of economic activity.
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

D. Reimbursement of property and other taxes as levied by the local body

E. Viability Gap Funding (VGF) from State and Central governments
F. Incentives / reimbursements (underwriting seats, exemption from aeronautical
tariffs) to encourage airlines to connect the cities of Andhra Pradesh)
G. Access to potential locations of civil aviation infrastructure through multi-modal
linkages (rail and road etc.)
To encourage aviation infrastructure in the State, fiscal incentives and exemptions /

reimbursements of various charges will be provided up to specific traffic levels, as
assessed by the government, or up to a period of five years from the date of commercial
operations of newly commissioned airport facilities, whichever is earlier. These include:
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
Textile and Apparel Policy 2015-20
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
Assistance to apparel training institutions & trainees
Manufacturing Clusters
Integrated textile parks at Edyapadu on Guntur-Chennai national highway
Chennai- Bangalore industrial corridor for new economic centres
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

Biotechnology Policy 2015-20
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
Life Sciences Knowledge Centres to be established across the State on PPP

model
Agri Biotech committee to expedite R&D proposals

Andhra Pradesh Biotechnology Committee (APBC) under Chief Secretary to
be setup
Major Manufacturing clusters

Mega Life science park is to be developed at Vishakhapatnam in 200 acres
on PPP mode based on plug and play concept
The park provides incubation centre, skill development and training centre
The Government provides financial assistance for critical external infrastructure
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
Additional interest subsidy @ 3% per annum on term loans towards purchase of

capital equipment necessary for technology up gradation for 5 years
Financial assistance for patent registration
Food Processing Policy 2015-20
The policy targets an investment of Rs. 5,000 crores and 50,000 new jobs by 2020.
Key Initiatives
Develop commodity based clusters
Promote innovation research and development
Undertake capacity building and infrastructure
Major manufacturing clusters

Ultra mega food parks in kuppam
Development of mega and integrated food parks

Inland container part at Chittoor and Kakinada ports

Proposed Mango Development Board at Tirupathi and banana Development

Board
Key Fiscally Incentives
1. Power subsidy Rs.1.50 per unit for 5 years from the date fo commencement of
commercial operations
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
Fisheries Policy 2015
Vision : Promotion of Andhra Pradesh as the Aqua Hub of India

Ensure Sustainable socio economic development of people involved in
fisheries
The Policy Targets fish production of 80,000LT with estimated GVA value of
Rs.42,000 Crores.
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

Ease of Doing Business

Research and Development
Infrastructure Strengthening
Domestic Market Development
Quality Up Gradation
Public Private Partnership
Export Promotion
Welfare
Human Resource Development
Institutional Strengthening
Convergence and Linkages
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
9. Promote research in frontier areas of aquaculture.
10. Better fish farmers welfare
11. Empowerment of women fishers

12. Promote Sustainable fishery in the State.
13. Enhanced skill of the personnel / aqua farmers
IT and Electronics Policy 2014-20
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
Bringing giga bit to villages

Special focus on making atleast 1 person e-literate in every household
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
IT Towers, IT Parks and IT Zones

ITIR to be developed in Vishakapatnam and Tirupati initially and in later
phase will be extended to Tirupathi Ananthapur corridor
Key Incentives
Some of the key incentives offered to promote IT initiatives

Rebate on land cost@ Rs.60,000 per employee created in case in case of mega
projects in IT and Rs.40, 000 per employment generated for other IT companies,
subject to a maximum of 80% of land cost.
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.
For IT Companies under MSME/SC/ST categories an those companies having

less than Rs.25 crores of annual revenue, Incentive will be given either
Rs.1,50,000/- 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
Electronics Bazaars to facilitate G2B/ B2B/ B2G /B2C interactions
Special focus on Mobile, LED, Smart Meters, FPD TVs, Tablets, Sensors, IOT
etc.
Mega Cluster Parks

Vishakapatnam to be major electronics hub with development of ITIR
Electronics hardware park at Kakinada
Development of 20 Electronic manufacturing clusters
Common facility centres for all electronic hubs
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
Solar Policy 2015
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.
To develop solar park(s) with the necessary utility infrastructure facilities to

encourage developers to set up solar power projects in the State.
To promote distributed generation that can help in avoiding upstream network

cost and contribute towards loss reduction.
To deploy solar powered agricultural pumpsets and meet power requirements of

farmers during day time.
To promote local manufacturing facilities which will Generate employment in the

State.
Solar Power Project
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.
Wind Power Policy 2015
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.
To promote investments for setting up manufacturing facilities in the State, which

can generate gainful local employment
Category of Wind Power Projects
Category I:Projects set up in government / revenue lands or forest areas or

assigned lands and also in private lands selling power within the State : Power
generated from the wind power projects installed entirely or partly on government/
revenue land or forest areas shall be for sale within the State only.
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.
Category III: Projects under Renewable Energy Certificate Mechanism

The State will promote wind power producers to set up wind power projects with no cap
on capacity for sale through Renewable Energy Certificate (REC) mechanism. The wind
power producers will be required to apply for accreditation to the State Accreditation
Agency and thereafter to Central Agency for registration and issuance of RE certificate
under REC mechanism as per order/regulations of the appropriate commission. The
power generated from these power projects shall be purchased by AP Discoms at
pooled cost of power purchase as determined by APERC from time to time.
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.

b) Transmission and Distribution charges for wheeling of power

There will be no Transmission and Distribution charges for wheeling of power generated
from wind power projects, to the desired location/s for captive use/third party sale within
the State through grid. However, the Transmission and Distribution charges for wheeling
of power generated from the wind power projects for sale outside the State shall be as
per regulations of APERC. The 3rd party sale by Eligible Developers under this policy will
be permitted only to HT I category consumers as categorized in Tariff Orders and as
per the regulations issued by APERC from time to time.
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.
f) Deemed Public Private Partnership (PPP) Status

Deemed PPP status shall be provided for projects coming up under Category-I and have
entered into a PPA with APDiscom for sale of power.
g) Non Agriculture Status

Deemed Non-Agricultural (NA) status for the land where wind power projects will be
accorded, on payment of applicable statutory fees
h) Deemed Industry Status

Generation of electricity from wind power projects shall be treated as eligible industry
under the schemes administered by the Industries Department and incentives available
to industrial units under such schemes shall be available to the wind power producers.
i) Must run status

Injection from wind power projects shall be considered to be deemed scheduled subject
to prevailing regulations/grid code of appropriate commission.
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.

Tourism Policy 2015-20
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.
Primary Sector Mission

Social empowerment Mission
Knowledge & Skill Development Mission
Urban Development Mission
Industry Sector Mission
Infrastructure Mission
Service Sector Mission

Primary Sector Mission

Launched by Chief Minister and Former President APJ Abdul Kalam in
Anantapur. The Mission will reach 7.6 million farmers at door step.
The mission aims to make agriculture profitable and sustainable
It focuses on enhancing value addition to allied activities such as horticulture,

livestock and fisheries
Social empowerment mission

Improving health, education service delivery, regulatory mechanism,
inclusive and equitable growth
The Mission would focus on:
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;
Ensuring women empowerment and safety;
Monitoring the quality of services and improving living standard of citizens;
Networking with organizations, which are innovative and have set up models of
good work; and
Ensuring specific focus on the disadvantaged sections of the society -- especially

the Scheduled Castes and Scheduled Tribes, Backward Classes and Minorities
and economically poor sections of other Castes -- to ensure growth with equity.
Knowledge & Skill Development Mission

Ensuring quality education, employable skills, industry collaboration
The mission aims in transforming Andhra Pradesh into education and

knowledge hub
A State Knowledge Advisory Board was constituted drawing eminent
educationalists, industrialists, scientists for taking the mission forward within
stipulated time where AP will emerge as a vibrant knowledge society
The mission aims at providing quality service to a consumer and enhance his
experience for services availed through the lifecycle
Ensuring employability of graduating students from educational and vocational
institutions
Reorganising the employment exchanges as the career development centers
Identifying the industry needs and establishing commensurate vocational centers
to meet the identified requirements through strengthened industry collaboration,
Initiating the capacity building and skill development for the already employed
persons to improve the quality of services

Urban Development Mission

Cities and towns as engines of growth and development, planned and balanced
urbanization to accelerate growth and reduce poverty, urban renewal in a mission
mode
The Mission would focus on

Establishing 3 mega cities and 10 smart cities;
Develop a roadmap for sustainable urban development by improving
transportation, housing, expanding opportunities and living standards;
Financial resource mobilization strategies for sustainable urban development;
Solid waste management and treatment of wastewater; and connectivity, ease of
doing business in important sectors in a time bound manner with set targets and
measurable outcomes
With AP lying on the East Coast and in the proximity to South East Asian
Countries it has a potential to become logistic hub with integrated infrastructure
excellent global and domestic connectivity, surplus power and world class
infrastructure across industrial, social and urban sectors.
Service Sector Mission
Enhancing job opportunities, IT based Governance, tourism The Mission would

focus on enhancing job opportunities and boosting GSDP through the following
growth engines:
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;
Developing identified tourism circuits
Harnessing the potential of education and health sector to offer high quality
services to other states and countries;
Achieving growth in IT sector through Electronics & IT Sub-Mission, Innovation &

Capacity Building Sub-Mission and e-Governance Sub-Mission
Development of Information Technology Investment Regions
Making all G2C (government to customer) and G2B (government to business)

services available online and on mobile; and
Achieving significant share in national IT exports and promoting electronics

manufacturing.
Five campaigns focus on key human development indicators like poverty
elimination, education, agriculture, health and sanitation
Pedarikam Pai Gelupu
Badi Pilustondi

Polam Pilustondi
Neeru Chettu
Swacch Andhra Pradesh
1. Pedarikam Pai Gelupu (Winning over poverty)

The overall strategy would be to look beyond growth and focus on generation of
employment to the millions of the youth in the State This would eventually result
in a faster reduction in unemployment and poverty through skill development and
also help bridging multiple divides A growth rate of 8% and above requires
significant acceleration in growth in agriculture, mining, registered manufacturing,
construction and in services
Agricultural growth has always been an important component for effecting
inclusiveness. However, the task of providing additional jobs to the growing
labour force rests on manufacturing, construction and services sectors.
Self Help Groups have contributed immensely for reducing the poverty. Self-help
movement through savings has been taken up on a massive scale for poor rural
women. The success of Self Help Groups in Andhra Pradesh has been a
national model and presently has 6.66 lakh groups covering 69.54 lakh of
poor rural women.
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.
4. Neeru Chettu Two aspects of the Mission are:

Water Conservation, which would take into account the total rainfall, surface
flow and the ground water and prepare a plan to make its optimum use by
preventing wastage into the sea. The approach has to be from the ridge to the
valley and the major departments to be involved in this exercise would be
Irrigation, Forest, Rural Development and Ground Water; and
Water Management, which would require making most efficient use of the
conserved water for various sectors of state economy and the major departments
involved in this exercise would be Agriculture, Animal Husbandry, Horticulture,
Fisheries, Rural and Urban Water Supply etc.

Important aspects of the Mission:

Carrying out the inventory of existing water harvesting structures and repairs
Construction of new water harvesting structures using the remote sensing
technology,
Construction of recharge pits through roof water collection (especially in urban
areas),
De-silting of tanks and breach restoration and Better water management through
improved agricultural practices.
The following works have been included in Neeru-Chettu action plan of RD

department.
Water Harvesting Structures

Soil Moisture Conservation Works
Horticulture and Other Plantations works.
Water Harvesting Structures
1, 03,575 works were planned with a financial outlay of Rs. 2587 crores.
So far 32,817 works have been grounded with an expenditure of Rs. 340.50
crores.
Soil Moisture Conservation Works
47,430 works were planned with a financial out lay of Rs. 785.91 crores.
So far 17,850 works were put into progress with an expenditure of Rs. 81.57
crores.
Horticulture and Other Plantations works.
2, 05,880 acres were planned with a financial out lay of Rs. 1778.78 crores.
So far 54,957 acres plantations have been completed with an expenditure of Rs.
60.11 crores.
Inventory of existing Water harvesting structures
Mobile software is provided to the Technical Assistants and Technical Officers
(about 3000) to verify the existing status of the Water Harvesting structures.
Mandal level teams were constituted by including the Agriculture, Irrigation,
Panchayat Raj, RWS and RD departments.
Exclusive web report is deployed to monitor the status of survey.
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.

3. Optic Fibre Grid

The Government has targeted to make Andhra Pradesh as one of the top three
states in the country in the Information Technology (IT) and electronics sector. In
its endeavour to make people a part in the overall development process and enhance
the quality of delivery of public services.
The grid aims to Establish a new State Data Centre

To reach gigabit to all gram panchayats by 2017
Last mile connectivity all G2C and G2B services to be made available online
and on mobile
Redesigning the service delivery infrastructure
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.
The targets of the Roads grid include the following:

Connecting all habitations with at least a single lane all weather black topped
road with the nearest Mandal headquarters
Mandal headquarters in every district to be connected the district headquarters

and the nearest National Highways with a properly developed Black topped road
of having a minimum of 2 lane carriageway of 7 m width. All the major National
Highways carrying substantial commercial traffic are to be developed as 4 lane
divided roads.
Separate 2/4 lane roads connecting the villages/ towns/ cities with 4 lane National
Highways.

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.
Under the grid the following is planned to be taken up:
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.

Industries in Andhra Pradesh

Industries in Andhra Pradesh - Growth and structure of Industries in Andhra
Pradesh Role of small and cottage industries
Introduction: Secondary sector activities are those activities which transform basic
raw materials into manufactured and finished goods.
The secondary sector are industrial sector comprises manufacturing industries

both registered and unregistered, electricity, gas and water supply,
construction and mining
Industrialisation is a process by which the centre of economic activities in an

economy shifts from agriculture to industry.
Industrialisation involves adoption of technologically superior techniques of

production which helps to transform basic raw materials and intermediate goods
into manufactured goods. It also adopts modern techniques of management and
organisation.
The merits of industrialisation lies in that the productivity of labour will be
more with more employment opportunities and generating large surplus
which can easily be mobilised and reinvested.
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.
With an ever improving industrial base, strong entrepreneurship, abundant

natural resources and investment proposals worth thousands of crores of rupees
in the pipeline, Andhra Pradesh is poised for a quantum in industrialisation. It is
well on its way to be one of the leading Industrial States in the country, with
continuing dominant position in agriculture.
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.

Growth and structure of Industries in Andhra Pradesh
History of Structure and growth of Industries in Andhra Pradesh

The state approached National Council of Applied Economic Research (NCAER)
to drop a action plan for industrial development in AP in 1956
The NCAER recommended the following in 1956
1. AP industries contributes about 13% to the GSDP where in all India GDP is
18.5%
2. It recommended that industrial income is not in proportion to income from

agriculture and allied activities as unlike in other industrially developed states
(West Bengal, Maharashtra, Tamilnadu)
3. So it recommended use of Andhra Pradesh rich natural resources to develop

agro based industries and mineral based industries
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
B. Establishment of several industrial development corporations

C. Setting up of industrial estates in all the districts with a network of industrial
development areas
The strategy is to develop private sector investment in industries with respect to medium
and small scale industries and persuading Government of India to establish large scale
industries in AP and also to develop strong skilled man power in the state.
For the development of Industries the following were established:
a) A.P. State finance Corporation in 1956
b) A.P. Industrial Development Corporation in 1962
c) A.P. Agro food industries in 1969

d) A.P. State trading Corporation in 1970
e) A.P. Industrial Infrastructure Development Corporation in 1973
f) District Industries Centres in every district in 1975

g) A.P. Small scale industries Development Corporation in 1985
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.
First industrial policy of the State was announced in 1990

From 1995-2004 no new Heavy or Medium scale was established in the State.
From 2000 onwards Service Sector became the main growth engine.
The industrial development became slow by the end of 1999 due to :
a) Shift of growth from Agriculture to service by passing industry
b) Privatisation of State PSUs

c) Deterioration in industrial infrastructure.
d) Concentration on SEZs development
Industrial Resolution Policies of AP
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:
Any premises including the precincts thereof: -

1. Wherein ten or more workers are working or were working on any day of the
preceding twelve months, and in any part of which a manufacturing process is
being carried on with the aid of power or is ordinarily so carried on, or,
2. Wherein twenty or more workers are working or were working on any day of the
preceding twelve months, and in any part of which a manufacturing process is
being carried on without the aid of power or is ordinarily so carried on, but does
not include a mine subject to the operation of the Mines Act, 1952, or a railway
running shed. The manufacturing process referred to above has been defined
vide Section
2(k) in the Factories Act, 1948 as:

Any process for:
(i) making, altering, ornamenting, finishing, packing, oiling, washing,
cleaning, breaking up, demolishing or otherwise treating or adapting
any article or substance with a view to its use, sale, transport, delivery
or disposal; or,
(ii) pumping oil, water or sewage ; or,

(iii) generating , transforming or transmitting power; or,

(iv) composing types for printing by letter press, lithography, photogravure
or other similar process or book binding; or,
(v) constructing, reconstructing, repairing, refitting, finishing or breaking up
ships or vessels.
A factory is manufacturing plant is an industrial site, usually consisting of buildings and

machinery, where workers manufacture goods or operate machines processing one
product into another.
The factories in AP is governed by :

a) The Factories Act, 1948 and Andhra Pradesh Factories Rules
b) The Payment of Wages Act, 1936 and Andhra Pradesh Payment of Wages Rules
(in respect of Factories)
c) The Maternity Benefit Act, 1961 and Rules (in respect of Factories)
d) Manufacture, Storage and Import of Hazardous Chemicals Rules1989 (in
respect of Factories)
e) Chemical Accidents (Emergency Planning, Preparedness and Response) Rules
1996
Small and tiny sectors, Classification of Enterprises: As per MSME Act, 2006
A. Manufacturing or production of goods pertaining to any industry
Micro enterprise investment in Plant and Machinery not exceeding Rs 25

lakhs
Small Enterprise Investment in Plant and Machinery more than Rs25 lakhs
but not exceeding Rs. 5.00 crores
Medium Enterprise Investment in Plant and Machinery more than Rs 5.00
crores but not exceeding Rs.10.00 crores
B. Enterprises engaged in providing or rendering service

a) Micro enterprise investment not exceeding Rs 10 lakhs.
b) Small Enterprise Investment more than Rs 10 lakhs but not
exceeding Rs. 2.00 crores.
c) Medium Enterprise Investment more than Rs 2.00 crores but not
exceeding Rs. 5.00 crores
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.

Role of Small Scale and Cottage Industries :
SSIs Weaknesses and problems- Institutional and non-institutional
1. Institutional problems: Institutional problem include

(1) Defects in implementation of the project
(2) Infrastructure problems
(3) Failure to utilise the full production capacity
(4) Scarcity of resources
(5) Credit and loan problems
(6) Lack of pricing and marketing policy
(7) Lack of trained and efficient man power
2. Non-institutional problem: Non-institutional problems include

(1) Frequent changes of government policies
(2) Red tapism
(3) Problem of sickness
(4) Lack of technical and skilled man power
(5) Restrictions on production and other controls
Current Developments in Industries of AP
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:

Large & mega Industrial Projects gone in to Production:
District Upto March 2015 During 2015-16 (uptoSep- Total

2015)
Units Invest- Employ- Units Invest- Employ- Units Invest- Employ-

(No.) ment(Rs.in ment (No.) ment(Rs.in ment (No.) ment(Rs.in ment
crore) (No.) crore) (No.) crore) (No.)
Srikakulum 99 1341 14563 1 154 174 100 1496 14737
Vizianagaram 62 3142 33848 0 0 0 62 3142 33848
VIzag 192 15574 67967 2 1600 3180 194 17174 71147
E.Godavari 217 13855 49893 1 25 250 218 13880 50143
W.Godavari 160 1977 26592 2 74 300 162 2051 26892
Krishna 169 5285 32515 5 421 2650 174 5706 35165
Guntur 204 6180 44303 3 95 355 207 6275 44658
Prakasam 84 1717 16436 2 39 260 86 1756 16696
SPSRNellore 144 5085 39058 2 236 209 146 5320 39267
YSR Kadapa 43 5960 17189 0 0 0 43 5960 17189
Kurnool 138 6644 21417 0 0 0 138 6644 21417
Ananthapuram 92 5782 26619 0 0 0 92 5782 26619
Chittoor 158 4750 35878 4 1325 1850 162 6075 37728
Andhra 1762 77292 426278 22 3969 9228 1784 81261 435506
Pradesh
Micro, Small & Medium Enterprises
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.
MSMEs provide the largest share of employment after agriculture and

hence, the development of MSME sector can contribute enormously to the socio-
economic development of the country. During 2016-17 (upto Dec) 6849 Micro,
Small and Medium Enterprises were established, providing employment to
89,128 with an investment of Rs.2542.30 Crores. District wise details are given
below

District Upto March 2015 During 2015-16 (uptoSep- Total

2015)
Units Invest- Employ- Units Invest- Employ- Invest- Employ-

(No.) ment(Rs.in ment (No.) ment(Rs.in ment ment(Rs.in ment
crore) (No.) crore) (No.) crore) (No.)
Srikakulum 346 161.78 5953 1024 171.14 4918 332.92 10871
Vizianagaram 349 194.13 5380 488 108.53 3711 302.66 9091
VIzag 1165 1023.64 31138 880 430.38 20825 1454.02 51963
E.Godavari 1136 399.02 11676 263 116.68 3207 515.7 14883
W.Godavari 552 459.85 5343 380 202.29 4041 662.14 9384
Krishna 645 285.55 7279 571 293.61 7610 579.16 14889
Guntur 962 327.09 6555 1056 337.82 11276 664.91 17831
Prakasam 471 277.31 6110 375 248.40 5926 525.71 12036
SPSRNellore 514 206.86 5241 274 155.85 12093 362.71 17334
YSR Kadapa 131 76.34 1436 91 46.28 710 123.15 2146
Kurnool 204 76.34 1897 803 176.42 5827 252.76 7724
Ananthapuram 245 161.78 5158 331 112.70 4819 274.48 9977
Chittoor 437 298.03 7355 313 142.20 4165 440.23 11520
Andhra 7657 3948.25 100521 6849 2542.30 89128 6490.55 189649
Pradesh
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 salient features of the Scheme are

a) Physical Infrastructure.
b) Common facilities for fuel/gas supply system, ETP & Solid waste disposal.
c) Information and Communication Technology Infrastructure.
d) R & D Infrastructure.

e) Quality Certification and Benchmarking Center.

f) Common Facilities Center.
g) Information dispersal /International Marketing infrastructure
h) Small Industry Cluster Development Programme.
National Investment and Manufacturing Zones (NIMZ)
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.
Chennai Bangalore Industrial Corridor (CBIC)
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
Vizag Chennai Industrial Corridor (VCIC)
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.
Special Economic Zones :
Andhra Pradesh is the first State in the country to announce an exclusive

state SEZ policy with special package of incentives and concessions and
finalized the Visakhapatnam Special Economic Zone in an area of 3,500 acres of
land. Out of 23 SEZs 4 were IT/ITES SEZs, 6 Multi Product SEZs, 4
Pharmaceuticals SEZs, 2 Textile and Apparel SEZs, 1 Biotech, 1 Paper Based, 1
Building Products SEZ, 1 Leather Sector SEZ, 1 Footwear SEZ, 1 Alumina /
Aluminium Refining SEZ and 1 Food Processing SEZ.
Status of Operational Special Economic Zones as on December 2016
Description No. of SEZs Investment Employment Physical

made generated Exports from
(including (No.) SEZs for
FDIs) (Rs. in during 2015-
Cr.) 16 as on
31.12.2016
(Rs. in Cr.)
APIIC 6 3,415.67 13,908 2,057.40
APIIC JVs 3 3,944.81 5,646 793.30
APIIC Assisted 5 8,100.11 34,665 2,517.04
Private 8 4,828.79 13,916 4,459.00
Developers
VSEZ 1 1,239.96 4,647 972.17
Total 23 21,529.34 72,782 10,798.92
APIIC 6 3,415.67 13,908 2,057.40
AP Gas Infrastructure Corporation:

Andhra Pradesh Gas Infrastructure Corporation (P) Ltd (APGIC) is a joint venture of
APIIC and APGENCO with equity participation at 51:49 respectively. APGIC was
incorporated on 2nd September, 2009 under the provisions of Companies Act. The
authorized share capital is Rs.100 crore and paid up capital is Rs.40 crore upto
December 2015

A.P. Gas Distribution Corporation Ltd.:
Andhra Pradesh Gas Distribution Corporation Limited (APGDC) is a joint Venture of

APGIC and GAIL Gas Limited, wholly owned subsidiary of GAIL (India) Limited.
APGDC is keen to participate in the business of CGD Networks, Trunk Pipelines,
Regional Grids, CNG and import of LNG and its Re-gasification.
Index of Industrial Production (IIP) :
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.
State Level Public Enterprises

There are 44 State Level Public Enterprises (SLPEs) functioning in the state
(Combined State). As per the working results of these SLPEs, the performance during
the year 2013-14 can broadly be summarized as:
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 areas of Agnigundala, Bondalamottu in Guntur district are famous for

mining of Copper, Zinc, Silver and other base metals.
The alkaline and ultra-basic rock formations in Guntur and Prakasam districts are
enriched in Nepheline Syenite.
The State contains huge Uranium deposits in Thummalapalli, YSR district.

The Department of Atomic Energy, GoI already started exploitation of the
resources through M/s. Uranium Corporation India Ltd, a Public Sector
Undertaking.
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.

S.No. Mineral District

1 Iron ore Krishna,Kurnool,Kadapa,Ananthapur,Nellore,Guntur,
Chittoor. Ananthapur stands first
2 Monozite Vishakapatnam
3 Zerkonium Vizianagarm,Srikakulum
4 Chromite Krishna-Ibrahimpatnam-Gangineni-Kondapalli
5 Gold Ananthapuram-Ramagiri,Chittoor-Palamaneru
6 Bauxite Vishakapatnam,E.Godavari-Rampachodavaram
7 Manganese Srikakulum-Chipurupalli
8 Copper Guntur,Kadapa,Nellore
9 Lead Kurnool,Kadapa,Chittoor,W.Godavari,Guntur
10 Mica Nellore-Gudur -Mica fields
11 Quartz Guntur,Nellore,Prakasam
12 Graphite Krishna, Vishakapatnam,Srikakulum
13 Baryties Kadapa-Mangampeta
14 Diamonds Ananthapuram-Vajrakarur,Krishna-Paritala
15 Petroleum-Natural KG Basin,L.B.Cherla(Narsapur-W.Godavari)
Gas
Leases and Mining

There are 10 prospecting licenses and 437 mining leases for major minerals (industrial
minerals), 1761 quarry leases for cut and dressed blocks of granites and 1037 quarry
leases for other minor minerals and 4617 Quarry leases for other Minor Minerals
(Construction Minerals) during 2015-16.
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.
Mineral Based Industries

Both Public & Private Sectors established large and medium scale mineral based
industries for manufacture of Cement, Steel, Sponge Iron, Ferroalloys, Glass, Ceramics,
Refractories, Chemicals, Granite, Marble & Limestone cutting & polishing units, Slate
cutting units, Gem Cutting & faceting units, Granite monuments manufacturing units,
Pulverizing units, stone crushers, Mosaic & Ceramic tile units, Lime Kilns, and
Manufactured Rock sand units in the State.

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.
Mineral Production & Value
Year Achievement Growth over Previous Year (%)

2012-13 1068.68 2.67
2013-14 884.64 -17.22 (due to agitation)
2014-15 966.11 9.20
2015-16 1496.05 55
2016-17 (up to Oct 2016) 859.67
Commerce and Export Promotion
Value of Exports (Amount Rs.in crores)

Sl. Product Group 2015-16 2016-17 (Up to
No. Sep)
1 Agriculture & Agro based and 11830.29 5570.36
Forest Products
2 Leather, Animal and Marine 8707.89 6245.56
Products
3 Mineral & Mineral Products 13021.25 2333.27
4 Handloom & Textiles 6169.06 2007.90
5 Handicrafts & Carpets 707.64 4220.66
6 Drugs &Pharmaceuticals and 17008.56 6847.32
allied Chemical Plastics.
7 Engineering Items 8199.86 1660.97
8 Electrical & Electronics parts 1069.67 505.70
9 Misc. (Mfg Goods) 5981.62 18.39
10 Software (IT & ITES) 477.93 219.52
Total 73173.77 29629.65
Andhra Pradesh Strength lies in its fully diversified industrial base

which include
Petroleum refinery HPCL, ONGC

Ship Building - Hindustan Shipyard
Fertilizers Nagarjuna, Coromandal, Godavari
Cement L & T, Zuari, Myhome, KCP, India Cement, ACC
Paper A.P.Papers, , Coastal Paper
Defence Electronics - Bharat Electronics
Steel RINL (Visakhapatnam Steel Plant),SJK
Ceramics Regency, Spartek, Sentini, RAK

Industries and Five Year Plans of erstwhile united AP:

At the time of formation of Andhra Pradesh in 1956, the following major industries
in A.P. are:
a) Hindustan shipyard at Visakhapatnam: The Hindustan Shipyard Ltd,
Visakhapatnam was originally set up in the year 1941 by the Scindia Steam
Navigation Company. The Shipyard was partially taken over by Govt. of India in
1952, and HSL became a fully Govt of India owned enterprise in Jul 1961.
Presently, this is the largest public sector shipyard in the country.
b) Allwyn Hyderabad : Allwyn Limited was established in January 1942 as Allwyn

Metal Works. It was started as joint venture of Industrial Development Trust of
the Nizam's Hyderabad Government and M/s Alladin & Company. The company
had three divisions, bus body building, watches & refrigerators
c) Nizam sugar factory was established in 1937 by last Nizam of Hyderbad at
Bhodhan.
Different central public sector units established during the plans in the state
First Five Year plan:

Hindustan shipyard was started at Vishakapatnam in 1952 by the Indian
government
Bharat electronics Limited (BEL) was started at Hyderabad in 1954
Second Five Year Plan:

National Mineral Development Corporation (NMDC) was started at Hyderabad in
1958
PRAGA Tools was started at Hyderabad in 1959
Hindustan Zinc Limited was started at Vishakapatnam in 1960
National Building Construction Corporation (NBCC) was started at Hyderabad in

1960
Third Five Year Plan:

Indian Drugs and Pharmaceuticals Limited (IDPL) was started at Hyderabad in
1961
Bharat Heavy Electricals Limited was started at Hyderabad in 1963
Cement Corporation of India (CCI) was started at Cuddapah district in 1982 and
Adilabad in 1983
Hindustan Aeronauticals Limited was started at Hyderabad in 1965
Modern Food Industries was started at Hyderabad in 1965

Bharat Heavy Plates and Vessels Limited (BHPV) was started in Vishakapatnam
in 1966
Electronics Corporation of India Limited (ECIL) was started at Hyderabad in 1967
Hindustan Machine Tools (HMT) was started at Hyderabad in 1967
Rural Electrification Corporation (REC) was started at Hyderabad in 1969
Fourth Five Year Plan:

Bharat Dynamics Limited was started at Hyderabad in 1970
Hindustan Cables Limited was started at Hyderabad in 1973
Fifth Five Year Plan:

Mishru Dhatu Nigam Limited (MIDHANI) was started at Hyderabad in 1975
National Thermal Power Corporation (NTPC) was started at Hyderabad in 1975
Dredging Corporation of India was started at Hyderabad in 1976
Sixth Five Year Plan:

Southern Pesticides was started at Kovvuru in West Godavari in 1980
Sponze Iron Plant was started at Palvancha in Khammam district in 1980
Vishaka Steel Plant was started in 1982
Seventh Five Year Plan:

Fertilizers Corporation of India was started at Ramagundam in 1986
Plan-wise expenditure on Industries

Plan Total plan Expenditure on Percentage
expenditure industries (in Rs.
(Crores) Crores)
Second 10 188 5.38
Third 15.19 352 4.31
Fourth 14.73 448 3.28
Fifth 51.50 1444 3.56
Sixth 200.88 3237 6.21
Seventh 284.92 5978 4.77
Eighth 540.57 13600 3.97
Ninth 811.85 30398 2.67
Tenth 1298 62177 2.09
Eleventh 5233 147395 3.56
List of State Level Public Enterprises in ANDHRA PRADESH
A. P. STATE FINANCIAL CORPORATION

A. P. HANDICRAFT DEVELOPMENT CORPORATION LIMITED.
A. P. INDUSTRIAL INFRASTRUCTURE CORPORATION LIMITED.
A. P. INDUSTRIAL DEVELOPMENT CORPORATION LIMITED.

A. P. STATE TRADING CORPORATION LIMITED

A. P. TECHNOLOGY SERVICES.
A. P. MEAT & POULTRY DEVELOPMENT CORPORATION LIMITED.
A. P. STATE IRRIGATION DEVELOPMENT CORPORATION LIMITED.
A. P. FOREST DEVELOPMENT CORPORATION LIMITED.
A. P. STATE POLICE HOUSING CORPORATION LIMITED.
A. P. TOURISM DEVELOPMENT CORPORATION LIMITED.
A. P. STATE ROAD TRANSPORT CORPORATION LIMITED.
A. P. SEEDS DEVELOPMENT CORPORATION LIMITED.
A. P. STATE AGRO INDUSTRIES DEVELOPMENT CORPORATION LIMITED.
A. P. MINERAL DEVELOPMENT CORPORATION LIMITED.
A. P. MEDICAL & HEALTH HOUSING INFRASTRUCTURE DEVELOPMENT
CORPORATION
A. P. STATE CIVIL SUPPLIES CORPORATION LIMITED.
A. P. STATE WAREHOUSING CORPORATION LIMITED.
A. P. STATE HOUSING CORPORATION LTD.
A. P. STATE FILM DEVELOPMENT CORPORATION LIMITED.
A. P. STATE MINORITIES FINANCE CORPORATION
A. P. SMALL SCALE INDUSTRIES DEVELOPMENT CORPORATION LIMITED.
A. P. BEVERAGES CORPORATION LIMITED.
LEATHER INDUSTRIES DEVELOPMENT CORPORATION OF ANDHRA PRADESH.
A. P. URBAN DEVELOPMENT & HOUSING CORPORATION LTD*.
TRANSMISSION CORPORATION OF ANDHRA PRADESH LIMITED.

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1. Single Desk Policy 2015-20

Single Desk Policy 2015-20

Government of Andhra Pradesh is committed to attracting and facilitating

The Single Desk Bureau (Bureau) will be chaired by the Commissioner of

District Industries Promotion Committee (DIPC) chaired by the District

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ecosystem to provide all clearances required to setup industry within 21

This shall be achieved by adopting following measures: Measures to simplify

Policy: Review of applicable Acts, Rules and policies of respective Competent

Institutional: Strengthening capacity of respective Competent Authorities, District

Process Streamlining: Streamlining operations of respective Competent Authorities

Industrial Development Policy 2015-20

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Industrial development promotes higher capital formation, raises wage

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d. To enhance the quantum and quality of skilled manpower and create

1. Increase the contribution of manufacturing to GSDP from 95%(2013-14) to

Strategy & Thrust Areas

GoAPs strategy of attracting sizeable industrial investment is predicated on

In addition, GoAP has identified 10 thrust areas for greater focus:

a. Agro & Food Processing

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Location wise Key Investment opportunities

Ease of doing business:

Single Desk Clearance

Project Category Definition

a. Large Industrial Project: Large Project is a unit in which the investment

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for sectors such as Textiles, Food Processing, Biotech etc. definition of

b) Mega Industrial Project: Projects with an investment of at least 500 crore or

The Government will extend tailor-made benefits to mega projects to suit

Incentives for large industry unit

100% of stamp duty for lease of land/shed/buildings, mortgages and hypothecations

Special Package for SC/ST entrepreneurs

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2. 100% reimbursement of Stamp duty for Lease of Land/Shed/ Buildings

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Special Package for BC entrepreneurs

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15. For enterprises set up by BC entrepreneurs, infrastructure like roads,

a) The location should be beyond 10 Kms from the existing Industrial

1. 25% investment subsidy on fixed capital Investment by women Entrepreneurs,

Industrial Area Development Authority

Industrial corridors will be developed on node based approach. Funding of the

a) Under Visakhapatnam Chennai Industrial Corridor (VCIC the following nodes

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Under Petroleum, Chemicals and Petro chemicals Investment Region(PCPIR) the

National Investment and Manufacturing Zones (NIMZ)

Information Technology Investment Regions (ITIR)

ITIRs have been proposed in two districts:

ITIR would be a combination of IT/ITES and Electronics Hardware Manufacturing

Each ITIR is expected to be a specifically notified investment region with minimum

Smart Industrial Township (SIT)

a. Four lane road to the nearest national highway

Special Economic Zones (SEZ)

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Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has developed over

Micro, Small and Medium Enterprises Policy 2015-20

Government of Andhra Pradesh (GoAP) accords top priority to development of

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The below definition pertains to MSMEs in manufacturing sector in terms of