AP Small Scale Industrial Revival Scheme

The Salient Features of the revival scheme are:

Relaxation from ULC Act:
Grant of permission to mortgage surplus land by exempting under section 20 of the Urban Land Ceiling Act in favour of banks/financial institutions, as proposed in the Industrial Investment Promotion Policy 2005-20101.


Healthy Industrial Relation:
The Labour department would take pro-active action for amicable settlement of disputes between management and representatives of labour so as to ensure success of the rehabilitation package with the cooperation of the workers.


Interest Rebate to Banks / Financial Institutions:
The backbone of the new revised policy is to encourage the Banks/Financial institutions for servicing the sick units and provide a rehabilitation package for their quick revival to join the main stream. 6% interest subsidy will be provided to all identified/eligible sick units, subject to maximum of Rs. 2.00 lakhs per year for a maximum period of three years. However, the component of the interest to be reimbursed shall be projected by the financing bank to the State Level Committee after following the guidelines. Once the State Level Committee accepts the proposal, the Commissioner of Industries shall draw the eligible interest subsidy on annual basis and reimburse to the Financing Bank.


Deferment of CT Arrears:
Arrears of payment of purchase tax, sales tax and interest towards non-payment of sales tax shall be deferred for 3 years from the date of grant of revival package. The amount so deferred will be recovered in six equal half-yearly installments effective after three years tax holiday.


Relief in Energy Charges:
The following concessions will be provided to the sick units basing on their option of repayment of dues in any of the following modes.

If the sick industrial unit under consideration has to pay arrears of CC charges, it may be given choice either to pay the entire arrears of CC charges up to date of disconnection with interest and 4 months minimum charges during closure period without interest + CMD charges in one lumpsum for new connection, the percentage of interest charged by APTRANSCO/DISCOM on the arrears of CC charges will be subsidized to the extent of 15% of interest charged from out of the percentage of the total interest charges and the same will be paid to APTRANSCO subject to a maximum of Rs. 5.00 lakhs and the balance percentage of interest charges shall be borne by the beneficiary (which includes surcharge and penal interest etc.)

(OR)

If the Industrial unit under  consideration opts for payment of arrears of CC charges up to the date of disconnection with interest and 4 months minimum charges during closure period without interest + CMD charges in 3 annual installments then it will be permitted to pay by 1/3 of the dues each year, with reimbursement of 15% of the interest charged from out of the percentage of the total interest charged to APTRANSCO by Government, subject to a maximum of Rs.3.00 lakhs per year for a period of three years, and the balance percentage of interest charges shall be borne by the beneficiary (which includes surcharge and penal interest etc.).

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