AP Policy for Establishment of Private Industrial Parks with ‘Plug and Play’ Industrial Infrastructure (4.0) 2024-29

Introduction

The Government of Andhra Pradesh (GoAP) prioritizes industrial growth to drive economic progress, generate employment, and attract significant investments, leading to a multiplier effect on the state’s economy. Recognising the increasing proposals for industrial development, GoAP has introduced a policy to encourage the establishment of private Industrial Parks by creating a framework that enhances participation from potential developers.

Through this policy, the state is committed to establishing world-class Industrial Parks, thereby positioning Andhra Pradesh as a prime destination for global and domestic investments in industrial development.

Objectives-

Executing Agency-

The Department of Industries & Commerce, Government of Andhra Pradesh, or any other agency it authorizes, will serve as the executing agency for the Andhra Pradesh Private Industrial Parks Policy, 2024.

What are covered under the scope of the policy?

A Industrial Zones and Locations

• Areas already notified as industrial zones in the master plan by the Directorate of Town and Country Planning, Government of Andhra Pradesh.
• Locations with potential to be developed into industrial zones, later converted by the Andhra Pradesh Industrial Corridor Development Authority (APICDA) or a competent authority.

B Land Requirements by Park Size

• Nano or Tiny Parks: Minimum of less than 10 acres of contiguous land.
• MSME Parks: Minimum of 10 acres to a maximum of 100 acres of contiguous land.
• Large or Sector-Specific Parks: Between 100 acres and 1,000 acres of contiguous land.
• Mega Parks: More than 1,000 acres of contiguous land.
• Parks must be located outside notified urban area limits.

C Sector-Specific Industrial Parks

Parks focusing on sectors such as:

• Biotechnology, pharmaceuticals, toys, electric vehicles, semiconductors, defence and aerospace, food processing, leather, textiles, drones, and downstream industries of evolving needs.

D Policy Focus

• The policy targets high-growth industrial clusters and locations, providing world-class infrastructure through strategic interventions. It covers project costs for common infrastructure and production-support buildings, including engineering, accessories, and packaging, with flexibility to adapt development to local requirements.

E Promotion of Plug-and-Play Industrial Parks

• The policy aims to establish Plug-and-Play Industrial Parks and Flatted Factory Sheds, focusing on Nano and MSME Parks. These developments align with existing or upcoming schemes of the Government of India (GoI) and the Government of Andhra Pradesh (GoAP). Essential components include ready-built infrastructure and facilities to support industrial operations.

The broad three models for development of industrial parks having private sector participation-

Model-1

• Industrial Park Development with complete private land

Model-2

• Industrial Park Development with Partial Government / APIIC Land

Model-3

• Industrial Park Development with Complete Government/APIIC Land.

Incentives, Subsidies, and Disbursement Milestones for Private Nano, Tiny, & MSME Parks AND Private Large Industrial Parks & Mega Industrial Parks-

Selection Criteria of the Proposals:

Proposals are evaluated based on available external infrastructure (roads, water, electricity) and the location’s industrial potential. Providing external infrastructure is a key incentive to catalyze park development.

Upto 100% exemption for other types of upfront incentives are-

1. Converting charges for agricultural land to non- agricultural use

2. Charges for changes in land use under the Master Plan.

3. Stand duty and registration charges for land pooling for industrial parks.

4. On layout approval charges.

Capital Subsidy-

a. Upto INR 5 Lakhs per acre for Private Nano or Tiny and MSME Parks

b. Upto INR 3 Lakhs per acre for Private Large Industrial Parks & Mega Industrial Parks

c. Phase-wise release schedule as per Milestone is as follows-