Starting an industry in AP APIIC

How to start an industry Content

Preparation of Project Report :

For the line of activity chosen by the Entrepreneur, a Technically feasible Economically viable Industrial Project Profile/Report is to be prepared . The Entrepreneur may seek the assistance from State Govt. agencies like DIC, APSFC; Central Govt. agencies like MSME-Development Institute (Formerly Small Industries Service Institute-SISI), NSIC etc.

APIIC

Finance :

The Entrepreneur may preferably obtain the consent of a financing agency such as APSFC or any Commercial Bank for the required loan amount.

Registration :

To set up a Micro/Small / Medium Enterprise, the Entrepreneur has to file Entrepreneur’s Memorandum Part -I (online at www.apindustries.gov.in) with concerned District Industries
Centre of the District & obtain Acknowledgement.
To set up a Large Enterprise ; the Entrepreneur has to file Industrial Entrepreneur’s Memorandum Part -A with Secretariat for Industrial Assistance, Department of Industrial Policy & Promotion,
Ministry of Commerce & Industry, Udyog Bhawan, New Delhi & obtain Acknowledgement.
If the Large Enterprise comes under Schedule II Industries, the Entrepreneur has to obtain Industrial License.

Land :

The Entrepreneur can set up the Industry in APIIC’s land or Private Land or or Government Land through District Collector. The procedure for obtaining APIIC’s land is as follows.The Entrepreneur has to apply online for the APIIC land at www.apiic.in. – Land Upto 5 Acres or 1 crore value will be allotted by the ZM, APIIC. Land more than 5 Acres and more than 1 Crore of the value will be allotted by the MD, APIIC.

Approvals :

After Executing the Sale Agreement with APIIC /Procuring the Private or Government Land , the Entrepreneur has to apply for all statutory approvals & Clearance from the Competent authorities through the Nodal Agency of Single Window Act, i.e., concerned District Industries Centre for Micro/Small Enterprises & Commissionerate of Industries, A.P.for Medium/Large Enterprises.

Commencement of Operations :

After obtaining the all the approvals from the competent authorities, the Entrepreneur has to start civil construction & place orders for the machinery.
After completing civil construction & erection of the Machinery, the Entrepreneur has to commence Commercial Production.
After Commercial Production, in respect of Micro/Small / Medium Enterprise the Entrepreneur has to file Entrepreneur’s Memorandum Part -II (online at www.apindustries.gov.in) with concerned District Industries Centre of the District & Acknowledgement to be obtained.
In case of a Large Enterprise, the Entrepreneur has to file Industrial Entrepreneur’s Memorandum Part -B with Secretariat for Industrial Assistance, New Delhi & obtain Acknowledgement.
After obtaining EM-Part-II/IEM Part-B Acknowledgement, the Entrepreneur has to execute the Sale Deed with APIIC Ltd.
Within Six months after the Commencement of Commercial Production the Entrepreneur has to file all A.P.Government’s Incentive Claim Applications with the concerned
District Industries Centre of the District.

Definition of Industries :

Micro /Small/Medium/Large Enterprise means an Enterprise in which the investment in plant & machinery is upto Rs.25 lacs/Rs.5 Crores/Rs.10 Crores/above Rs.10 Crores, respectively.
A Mega Project means a Project in which investment is above Rs.250 Crores.
Ancillary Industry is an Industry which sells at least 50 % of its Production to other Industries.
100 %Export Oriented Industry is an Industry which exports at least 30 % of it’s annual Production by the end of the 3 rd year after the date of commencement of Production.

Schedule I Industries :

These are the Industrial Activities reserved by the Government of India for Public Sectors. e.g:- Arms & Ammunition, Atomic Energy, Coal, Lignite, Mining of Gold, Diamonds, Railways.

Schedule II Industries :

These are the Industrial Activities which need to obtain compulsory License from the Government of India. e.g. Manufacture of explosives, Alcohol, Cigarettes.

Schedule III Industries :

These are the Industrial Activities which are exclusively reserved for Small Scale Sector. e.g. Aluminium Utensils.

How to Get Incentives

All the claims for the state government incentives should be submitted to the concerned GM, District Industries center.
Incentives for the industries with investment in Plant & Machinery less than 25 lakh will be sanctioned by Dist level Committee under the Chairmanship of Dist Collector.
Incentives for the industries with investment in Plant & Machinery more than 25 lakhs will be sanctioned by the state level committee under the chairmanship of commissioner of Industries.
Mega Project means the Industrial unit, which sets up with a capital investment of Rs.250 Crores and above or a project that creates employment to more than 2000 persons.
Mega projects i.e. projects with an investment of Rs.250 Crores and above or a project that creates employment to more than 2000 persons are eligible for all
the incentives available for Large Industries and Medium Scale Enterprises.
Further, the Government will also extend tailor-made benefits to suit to a
particular investment requirements on case to case basis.
The state Government Incentives for the eligible industries as follows.

SL.No.	Description of the Incentives providing	Category of the Enterprise	Enterprise set by the General Category entrepreneur		Enterprise set by the SC/ST category entrepreneur
SL.No.	Description of the Incentives providing	Category of the Enterprise	General	Women	General	Women
1	Reimbursement of Stamp Duty / Transfer Duty	Micro	100%	100%	100%	100%
		Small	100%	100%	100%	100%
		Medium	100%	100%	100%	100%
		Large	100%	100%	100%	100%
2	Stamp Duty on Lease Land / Shed	Micro	100%	100%	100%	100%
		Small	100%	100%	100%	100%
		Medium	100%	100%	100%	100%
		Large	100%	100%	100%	100%
3	Stamp Duty on Financial Deed / Mortagage	Micro	100%	100%	100%	100%
		Small	100%	100%	100%	100%
		Medium	100%	100%	100%	100%
		Large	100%	100%	100%	100%
4	Rebate on APIIC IE / IDA –	Micro	25% – 10 lakhs	25%	33.33% – 10 lakhs	33.33% – 10 lakhs
		Small	25% – 10 lakhs	25% – 10 lakhs	33.33% – 10 lakhs	33.33% – 10 lakhs
		Medium	25% – 10 lakhs	25% – 10 lakhs	33.33% – 10 lakhs	33.33% – 10 lakhs
		Large	25% – 10 lakhs	25% – 10 lakhs	33.33% – 10 lakhs	33.33% – 10 lakhs
5	Land conversion charges	Micro	25% – 10 lakhs	25% – 10 lakhs	25% – 10 lakhs	25% – 10 lakhs
		Small	25% – 10 lakhs	25% – 10 lakhs	25% – 10 lakhs	25% – 10 lakhs
		Medium	25% – 10 lakhs	25% – 10 lakhs	25% – 10 lakhs	25% – 10 lakhs
		Large	–	–	–	–
6	Investment Subsidy	Micro	15%-20 lakhs	20% – 25 lakhs	35% – 50 Lakhs – 40% sch. area by ST	40% – 50 Lakhs – 45% sch area by ST
		Small	15%-20 lakhs	20% – 25 lakhs	35% – 50 Lakhs – 40% sch. area by ST	40% – 50 Lakhs – 45% sch area by ST
		Medium	–	–	–	–
		Large	–	–	–	–
7	Reimbursement of Power Tariff	Micro	0 .75 Rs	0 .75 Rs	1 .00 Rs	1 .00 Rs
		Small	0 .75 Rs	0 .75 Rs	1 .00 Rs	1 .00 Rs
		Medium	0 .75 Rs	0 .75 Rs	1 .00 Rs	1 .00 Rs
		Large	0 .75 Rs	0 .75 Rs	1 .00 Rs	1 .00 Rs
8	SalesTax	Micro	100%- 5 years	100%- 5 years	100%- 5 years	100%- 5 years
		Small	50%- 5 years	50%- 5 years	50%- 5 years	50%- 5 years
		Medium	25%- 5 years	25%- 5 years	25%- 5 years	25%- 5 years
		Large	25%- 5 years	25%- 5 years	25%- 5 years	25%- 5 years
9	Pavala Vaddi [Interest Subsidy on Term Loan	Micro	9% over and above 3% -5years	9% over and above 3% -5years	9% over and above 3% -5years	9% over and above 3% -5years
		Small	9% over and above 3% -5years	9% over and above 3% -5years	9% over and above 3% -5years	9% over and above 3% -5years
		Medium	–	–	–	–
		Large	–	–	–	–
10	Quality Certification	Micro	50% – 2 Lakh	50% – 2 Lakh	50% – 2 Lakh	50% – 2 Lakh
		Small	50% – 2 Lakh	50% – 2 Lakh	50% – 2 Lakh	50% – 2 Lakh
		Medium	25%	25%	25%/td>	25%
		Large	25%	25%	25%/td>	25%
11	Cleaner Prodn. Measures	Micro	25% – 5 lakhs	25% – 5 lakhs	25% – 5 lakhs	25% – 5 lakhs
		Small	25% – 5 lakhs	25% – 5 lakhs	25% – 5 lakhs	25% – 5 lakhs
		Medium	25% – 5 lakhs	25% – 5 lakhs	25% – 5 lakhs	25% – 5 lakhs
		Large	25% – 5 lakhs	25% – 5 lakhs	25% – 5 lakhs	25% – 5 lakhs
12	Patent Registration	Micro	50% – 2 Lakh	50% – 2 Lakh	50% – 2 Lakh	50% – 2 Lakh
		Small	50% – 2 Lakh	50% – 2 Lakh	50% – 2 Lakh	50% – 2 Lakh
		Medium	50% – 2 Lakh	50% – 2 Lakh	50% – 2 Lakh	50% – 2 Lakh
		Large	–	–	–	–
13	Seed Capital Assistance	Micro	10% -on machinery -1st generation	10% -on machinery -1st generation	10% -on machinery -1st generation	10% -on machinery -1st generation
		Small	10% -on machinery -1st generation	10% -on machinery -1st generation	10% -on machinery -1st generation	10% -on machinery -1st generation
		Medium	–	–	–	–
		Large	–	–	–	–
14	Reimbursement on skill upgradation	Micro	50% – Rs 2000/- per head -one time	50% – Rs 2000/- per head -one time	50% – Rs 2000/- per head -one time	50% – Rs 2000/- per head -one time
		Small	50% – Rs 2000/- per head -one time	50% – Rs 2000/- per head -one time	50% – Rs 2000/- per head -one time	50% – Rs 2000/- per head -one time
		Medium	50% – Rs 2000/- per head -one time	50% – Rs 2000/- per head -one time	50% – Rs 2000/- per head -one time	50% – Rs 2000/- per head -one time
		Large	–	–	–	–
15	For infrastructure development (limited to 1 crore or 15 % cost of the Fixed capital Investment.	Micro	–	–	50 % on infrastructure cost	50 % on infrastructure cost
		Small	–	–	do	do
		Medium	50 % on infrastructure cost	50 % on infrastructure cost	do	do
		Large	do	do	do	do

Starting an industry in AP

APIIC - At a glance

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