District Industries Centre

Objective

To promote Vizianagaram district as an attractive and competitive destination for industrial investments by providing enabling environment in the district.

Highlights

• 43 Existing Large & Mega Industries with an Investment of Rs. 2909.96 cr. and providing employment to 24025 persons. The major sectors are Steel, Ferro Alloys, Pharma, Sugarcane, Chemical, Cashew processing etc.

• 7 Large & Mega projects are in under implementation with a proposed investment of Rs. 625.70 cr and create employment to 1070 persons.

• 8 units entered MoU with the Govt. of Andhra Pradesh pertains to Vizianagaram District during the Partnership summit held on 10th to 12th January, 2016 with proposed investment of Rs. 11932 cr and to create employment of 20,350 persons . One unit ie M/S Ananda Subbaraya wire products (P) ltd has commenced production. M/S Kothavalasa Infra Ventures (P)Ltd, M/S North east Impex (P) Ltd with an investment of 2100 crores and providing an employment of 7000 ,are under active implementation. The major sectors are Cashew processing, Steel, Food park etc.

• 15 units entered MoU with the Govt. of Andhra Pradesh pertaining to Vizianagaram district during the Partnership Summit held on 27th & 28th January, 2017 with proposed investment of Rs. 1100.24 crores and to create employment of 4527 persons. Out of which 4 units i.e M/s Vijayanagaram Wheat Products Pvt Ltd., M/s North East Infrastructure Pvt Ltd., M/s Danica Aqua Exports Pvt Ltd., M/s Talli Suvarna Foods with an investment of 78.00 crores and with a projected employment of 978 , are under active implementation. The major sectors are Cashew processing, Soya Products, Wheat Flour, Fish Processing etc.

• 4288 MSME’s are existing in the district with an investment of Rs. 1369.37 cr and providing employment to 34,232 persons.

• MSME parks are identified in all the nine assembly constituencies with a total extent of 735.96 acs out of which 3 MSME parks at Marupalli of Gajapathinagaram (M), Kandivalasa of Pusapatirega (M) and Balighattam of Kothavalasa (M) with an extent of 273.16 Acs are under active implementation.

• Land bank with an extent of 1315.18 acrs is identified for development of Industrial Parks for establishment of Industrial units at Kongavanipalem of Bhogapuram (M), Katakapalli, Chinaraopalli, Pedaraopalli of Kothavalasa (M), Kotakki of R.B.Puram (M), Mushidipalli of S.Kota (M), Tekkali of Nellimerla (M) and Marupalli of Gajapathinagaram (M) by APIIC.

• M/S Patanjali Ayurved Ltd has been allotted 172.84 Acs of land in Chinaraopalli (V) of Kothavalasa (M) vide GO Ms no 34 Dt 28.02.2017.

Orgonogram

District Industries Centre

Schemes

Industrial Development Policy 2015-2020 of Government of Andhra Pradesh

• This scheme will be in operation from 01.04.2015 to 31.03.2020 (inclusive of both dates).
• Applicable to New Enterprises, Expansion and Diversification of existing Industrial Enterprises.
• Eligible Industrial Enterprise — For General and BC category entrepreneurs –Industrial Enterprise other than those listed in Ineligible industries list.
• All eligible enterprises shall submit their claims in prescribed application form for investment subsidy within 6 months from DCP to GM,DIC.
• For Expansion units- Existing eligible enterprises, setting up expansion projects involving enhancement of Fixed Capital Investment by at least 25% as well as enhancement of capacity by 25% for the same product lines will be eligible for incentives.

Capital Investment Subsidy

• 15% – For General Entrepreneurs Limited to Rs. 20 Lakhs.
• 25% – For General Women Limited to Rs. 30 Lakhs.
• 35% – For SC/ST/BC Limited to Rs. 75 Lakhs.
• Additional 10% i.e 45% to SC/ST/BC women entrepreneurs limited to Rs 75 lakhs.
• Additional 5% to ST entrepreneurs where units set up in Tribal areas limited to Rs 75 Lakhs.

Interest Subsidy

For all eligible Industrial enterprises 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 to Micro & Small Enterprises and 7% to Food Processing units for a period of 5 years from the date of commencement of commercial production (DCP) or till the closure of term loan which ever is earlier.

The interest reimbursement will be made in proportion to the interest paid against the total interest to be paid in the given period of six months

Reimbursement of Stamp duty, Transfer duty, Mortgage & Hypothecation duty

• 100% stamp & transfer duty reimbursement on purchase/lease of land/shed/building for industrial use and also mortgages and hypothecation deeds.
• Stamp duty reimbursement only one time.
• Applicable to all eligible New, expansion and diversification units

Reimbursement of Land cost in IE/IDA/IPs

• Reimbursement of 25% of Land cost limited to Rs. 10 Lacs for Enterprises located in IE/IDA/IPs for General category.
• Reimbursement of 50% of Land cost limited to Rs. 20 Lacs for Enterprises located in IE/IDA/IPs for BC/SC/ST category .
• Above benefit is for those lands directly purchased from APIIC only

Reimbursement of Land conversion charges

• Reimbursement of 25% of land conversion charges from agriculture use to industrial use limited to Rs. 10 lakhs for MSMEs.
• Applicable to all eligible New, expansion and diversification units.

Reimbursement of Sales Tax/GST

• Reimbursement of 100% of VAT/CST/SGST for Micro and Small units for 5 years . Reimbursement of 75% of VAT/CST/SGST for Medium units for 7 years .
• Reimbursement of 50% of VAT/CST/SGST for Large units for 7 years . Applicable to all eligible New, expansion and diversification units

Reimbursement of Power Consumption charges

• Reimbursement of Rs. 1.00 per Unit of power consumption for enterprises of GENERAL category for 5 yrs from DCP.
• Reimbursement of Rs. 1.50 per Unit of power consumption for enterprises of BC/SC/ST category for 5 yrs from DCP. Applicable to all eligible New, expansion and diversification units.

Reimbursement of Quality Certification/patent Registration Expenses

For all eligible Industrial enterprises

• GENERAL Category on Quality cerification /Patent regd—75% limited to Rs. 5 Lacs and on trademark 50% limited to Rs 25,000
• MSEs by BCs — 50 % limited to Rs. 3.00 Lacs
• MSEs by SC/STs — 100% limited to Rs. 3.00 Lacs

Industrial Infrastructure Development Fund (IIDF)

Applicable for Medium & Large enterprises on case to case basis

• For Standalone enterprises- reimbursement of 50% of the cost of infrastructure like roads, power & water from IIDF with a ceiling of Rs. 1.00 Cr.
• Location of unit should be beyond 10km from existing IE/IDA/Ips Cost of infra limited to 15% of the eligible Fixed capital investment

Incentive for Swachh Andhra

For Specific Cleaner Production measures

• to provide 35% subsidy on cost of plant & m/c on Specific Cleaner Production measures limited to Rs. 35Lakhs for MSMEs.
• to provide 10% subsidy on cost of plant & m/c on Specific Cleaner Production measures limited to Rs. 35Lakhs for large Enterprises

Reimbursement of Skill Upgradation and Training

For all eligible Industrial enterprises

• General –Micro enterprises- Reimbursement of 50% of training cost limited to 5000/- for max 10 persons.
• General –Small & Medium enterprises- Reimbursement of 50% of training cost limited to 5000/- for max 20 persons.
• SC/ST/BC –Micro, Small & Medium enterprises- Reimbursement of 50% of training cost limited to 5000/- with no limit on number of persons

Web link for applying for Incentives under IDP 2015-20 scheme in online portal is https://www.apindustries.gov.in/Incentives/

Prime Minister’s Employment Generation Programme

Ministry of MSME as the single nodal agency at the National level

At the State level, the Scheme will be implemented through

• State KVIC Directorates
• Khadi and Village Industries Boards (KVIBs)
• District Industries Centres (DICs) and banks.

The maximum cost of the project admissible under manufacturing sector is Rs. 25 lakhs.

The maximum cost of the project admissible under service sector is Rs. 10 lakhs.

Eligibility Conditions of Beneficiaries

• Any individual, above 18 years of age
• There will be no income ceiling for assistance for setting up projects under PMEGP.
• For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.
• Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP.

Other Activities

Single Desk policy (SDP)

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.

District Industries Promotion Committee

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. The District Collector will be authorized to issue specific clearances should the concerned department not provide clearance after following due process within stipulated time. The responsibility of any such clearance being provided by the District Collector due to delay on behalf of specific department shall lie with the HoD of that department. Industries and Commerce Department shall examine and ensure that enabling provisions are made in concerned Acts / Rules to empower District Collector accordingly. To ensure institutionalizing the timely approvals / clearance mechanism, DIPC shall meet once a fortnight
Web link to apply online for all approvals in SDP: https://www.apindustries.gov.in/APIndus/Default.aspx

Udyog Aadhaar Memorandum (UAM)

Udyog aadhaar memorandum or UAM is started in September-2015 It is aimed at making registration process easier for Micro, Small & Medium enterprises. Udyogaadhaar (UAM) has replaced Entrepreneur Memorandum (EM) PART-II registration
Henceforth, all existing units are required to register online in UAM portal
This allows all stakeholders to verify authenticity via online portal For Registration logon to: https://udyogaadhaar.gov.in/

Allocation of scare raw material

Raw materials like Coal, Ethanol are allocated to industries at subsidised rates. For this Industries need to apply online for allocation of raw materials which will be assessed by department officials and recommended on trial basis initially for a certain period.

Important Site Links

• AP Industries
• Udyog Aadhar

Email

dicvizianagaram[at]gmail[dot]com