Incetives for IT Industry and
Telecommunication
Companies
Andhra Pradesh aims to attain leadership in the information economy by developing local enterprise (business organisation) and by attracting best in class ICT companies and institutions. The ICT sector today faces new challenges that need to be addressed. For example, the key drivers for deciding the location of ICT companies are the availability of skilled talent, apart from high quality infrastructure and a supportive Government. The present ICT policy seeks to focus on development of Human Resources, Infrastructure, Capital and Incentives. Therefore the four key areas are for providing the right ambience for attracting investments into the State.
Special
attention will have to
be paid for the rehabilitation
of sick industries to avoid capital lying idle and going
to decay. Major sick industries come under
the purview of BIFR. Government have always extended
full scale of concessions as advised by BIFR, for rehabilitating
major industries. For small scale industries
which are sick, which do not come under
the purview of BIFR, initiatives at the
state level will be taken. Committees
at the District level under the Chairmanship of District
collector and with concerned officers
as Members, are being constituted to recommend
necessary concessions for sick small scale
industries. Government are also considering setting
up a State Level Industrial Finance and Reconstruction
Board for attending to the rehabilitation of sick small
scale industries.
EHTP & STP schemes offer
a package of incentives and facilities
In order to provide
impetus to the electronics industry, to enhance its
export potential and to develop an efficient electronic
component industry, Electronics Hardware Technology
Park (EHTP) / Software Technology Park (STP) schemes
offer a package of incentives and facilities. The Scheme
is administered by the Department of Electronics, Government
of India.
Andhra Pradesh Industirial
Development Corporation has announced Industrial Infrastructure
Facilities under this scheme, An Industrial Infrastructure
Development Fund (IIDF) of Rs. 100 crores may be created
starting with the year 2000-2001 with provision for
necessary step up in fund provision in the subsequent
years. In order to ensure that there are no power cuts
or tripping, dedicated feeders and dedicated lines will
be laid by the APTRANSCO to all existing and proposed
industrial areas and industrial estates.
Concessional rate of
1% sales tax for products manufactured and sold by Biotech
units located in Bio Technology Park, Turkapally(V),
Ranga Reddy District up to 31.3.2010
Special Incentives and Services
for the Mega And Pioneer Industry
Apart from the general
run of incentives, for major and medium
industries, the Government deems it
necessary to offer secial incentives for
mega projects. In the Case
of mega projects, which are defined
as those with a project cost exceeding Rs. 100
crores, there is always keen competition from other
states, as these projects create their own
infrastructure and contribute in a large measure
to the development of the economy, employment
potential and also to the revenues of the State,
by way of the purchasing power they
create.
As Sales Tax incentive,
under the existing scheme, for large
and medium scale industries, industrial units set up
in the districts of Srikakulam, Ananthapur and Adilabad
are eligible for sales tax deferment facility,
upto a maximum of 100% of fixed capital investment,
over a period of 10 years, from the date of commencement
of commercial production. Industrial units set up in
the districts of Nalgonda, Warangal, Khammam, Medak,
Karimnagar, Nizamabad, Kurnool, Cuddapah, Chittoor,
Nellore, Vizianagaram and Prakasam, are eligible
for sales tax deferment facility upto a
maximum of 75% of the fixed capital investment,
over a period of 10 years, from the date of commencement
of production.
