Andhra Pradesh Electronics Policy 2014-2020- Amendments

GOVERNMENT OF ANDHRA PRADESH
ABSTRACT
ITE&C DEPT - Andhra Pradesh Electronics Policy 2014-2020- Amendments to Certain
Incentives – Orders - Issued.

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INFORMATION TECHNOLOGY, ELECTRONICS & COMMUNICATIONS (Promotions) DEPARTMENT
G.O.MS.No. 7 Dated: 06.04.2015

Read the following:
1. G.O.Ms.No.13, Information Technology & Communications (Promotions) Department,
Dated: 31.07.2010
                                   *********
ORDER :
In order to achieve the vision of the State of Andhra Pradesh to “Develop AP as an
Innovation Society of global repute, with a focus on enhancing the Quality of Life of its citizens,
through high-quality Education and Healthcare, increased productivity in Agriculture and
allied activities, creation of Employment by promoting Electronics and IT, and above all, by
providing Good Governance” , Government at 1st read above issued Andhra Pradesh Electronics
Policy 2014-2020.

Comparing the said Andhra Pradesh Electronics Policy 2014-2020 with other State
Policies, it is noticed that in some other States, some more incentives or additional incentives or
additional amount of money for the same incentives available in our State is being offered. In
respect of the following incentives mentioned in the Andhra Pradesh Electronics Policy 2014-
2020.

i. VAT/ CST Reimbursement: 100% Tax reimbursement of VAT / CST, for the new
units started after the date of issue of this Policy, for a period of 5 years from the date of
commencement of production for products manufactured in AP and sold in AP.

ii. Skill Up gradation & Training: 50% reimbursement/ grant of cost involved in skill up
gradation & training the local manpower limited to Rs. 2,000per person.
.
iii. Interest Rebate: 3% Interest Rebate limited to Rs.5 lakhs (0.5 Million) per year for 5
years.

iv. Capital Subsidy: 10% subsidy on new capital equipment
Further the demand in the Indian Electronics market is expected to reach US $ 400
Billion by 2020 and the objective of AP Electronic Policy is to capture a major market share. AS
such, in order to attract US $ 5 Billion investments in ESDM Sector by 2020, as envisaged in
the AP Electronics Policy 2014-2020, GoAP need to be more aggressive and the incentives
offered shall match with the other competing States in the country.

In view of the above, after elaborate deliberations and taking into consideration the need
to promote electronic industries / units in the State of Andhra Pradesh, Government has decided
to make the following amendments to the incentives mentioned above in AP Electronic Policy
2014-2020

*Investment as defined in Indian Companies Act 1956.
All the other incentives, eligibility conditions for availing the incentives mentioned in the
Andhra Pradesh Electronic Policy 2014-2020 issued vide 1st Cited remains the same.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
B.SREEDHAR,
SECRETARY TO GOVERNMENT