1. New Industrial Enterprise: New Industrial Enterprise means and
includes an industrial Enterprise which has been established in the State with new
machinery and commenced commercial production on or after 01.04.2015 and before
31.03.2020 (inclusive of both dates) holding valid approvals from the concerned
authorities. Wherever the enterprise not able to produce the valid approvals, sanction
will be given based on self-certification. However, disbursement of sanctioned incentives
will only be made on submission of valid approvals
2. Micro Enterprises: Micro Enterprise means an enterprise in which
Investment on plant and machinery up to the limit as defined by the Government of
India from time to time.
3. Small Enterprises: Small Enterprise means an enterprise having
the investment on plant and machinery up to the limit as defined by the Government
of India from time to time.
4. Medium Enterprises: Medium Enterprise means an enterprise in
which Investment on plant and machinery up to the limit as defined by the Government
of India from time to time.
5. Large Industries: Large Industry means an industry in which
the investment on plant and machinery is above Medium Enterprises as defined by
Government of India from time to time.
6. Mega Projects:
a. For General Industries under IDP 2015-20: Mega Project means the Industrial Enterprise,
set up with a capital investment of Rs.500 Crore and above orThe
industrial Enterprise which creates direct employment to more than 2000 persons.
b. For Biotechnology Industries: Project with capital investment of Rs. 50 crore
and above or Creating local employment for 200 people will be accorded
mega project status.
c. For Textile Industries: projects with a capital investment of Rs. 125 crore and
above or Providing employment to 2000 people or more, will be accorded
mega industry status.
7. Mega Integrated Automobile Project:The mega integrated automobile
project will mean automobile projects that will have engine plant, press shop, Body
shop, transmission line, assembly line, paint shop etc. either on its own or as
consortium or joint venture mode in the same location with investments over and
above Rs.1500 crore and which will bring ancillary units of a minimum of Rs. 500
crore investment within 3 years.
8. Ancillary status: This status will be accorded to Ancillary
units of Mega Integrated Automobile Projects with minimum sales of 50% of their
product to the mother unit or supplying 100% requirement of the mother plant as
certified by the mother plant, for 5 years from the date of commencement of production,
will be eligible for the incentives.
9. Anchor unit for Aerospace & Defence (A & D) Industries: Global/
Indian Original Equipment Manufacturers (OEM) companies which design and manufacture
the A&D platform, where these are the high-end of the A&D value chain with large
entry barriers, also requiring high investments and technological intensiveness
for manufacturing in India. Hence, Standalone mother units with capital investment
greater than Rs. 200 crore with defence orders worth at least Rs. 50 crore or more
would be designated as Anchor Units. The definition of a defence order is a contract
with the Ministry of Defence or the Ministry of Home Affairs (of Government of India)
or their equivalents in foreign countries. Capital Investment includes investment
on land, buildings and Plant and Machinery and Working capital margin. The incentives
will be extended after investing the stipulated investment as defined under Mega
Project as on date of commencement of commercial production (DCP). If the Mega Project
is aided unit, the investment made during the period of 6 months from DCP will be
considered in computing the investment made by the enterprise, for considering it
as a Mega Project. All mega projects will be eligible for incentives under large
industry category of various policies and tailor made incentives over and above
the policy on case to case basis granted by Government.
10. Expansion Projects: Existing industrial Enterprises, setting
up expansion projects other than those listed in the ineligible list, 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.
11. Diversification Projects: Existing industrial Enterprises,
making investment for a new product other than those listed in the ineligible list,
involving Diversification with an enhancement at least by 25% of fixed capital investment
as well as enhancement on turnover by 25%, in value terms, (last three years average
turnover) will be eligible for incentives.
12. Original Fixed Capital Investment: Investments made on fixed
capital assets prior to Expansion/Diversification will be treated as original fixed
capital investment. While computing this original fixed capital investment, neither
depreciation nor revaluation will be taken into account. Fixed assets include cost
of land, civil works, Plant, Machinery and equipment as per the approved project
cost. This project cost will also include cost of machinery installed within 6 months
from DCP in case of units assisted by Financial Institutions.
13. Production Capacity of Original Enterprise/Industry: highest
annual production/turnover achieved during preceding three financial years prior
to expansion/diversification, will be treated as production capacity of the original
Enterprise/Industry. In case of service enterprise the highest annual turnover achieved
during preceding three financial years prior to expansion/diversification, will
be treated as production capacity of the original Enterprise/Industry.
14.Tax: Tax means Tax paid to Commercial Tax Department by the
way of net VAT and CST or State Goods and Services Tax (SGST) on goods produced
by the industrial enterprise.
15.Date of Commencement of Commercial Production (DCP): The date
on which commercial production has started, as indicated in the EM Part – II /Part
B of IEM/IL in respect of Micro, Small & Medium Enterprises and Large Industries
respectively, as the case may be and as confirmed and certified by GM, DIC. While
confirming /certifying the DCP of the enterprise by GM, DIC as stated above, due
diligence is to be exercised by correlating the date of purchase of the machinery,
date of installation, power release and 1st sale bill, power bills, VAT payments,
Excise duty payment etc. In case of any dispute on DCP between the enterprise and
the department, State Level Committee (SLC) will review and its decision is final.
16.Continuous Production: Continuous production means continuous
working of an industrial Enterprise engaged in the activity of manufacture of approved
lines for a minimum period of six (6) years for MSEs and eight (8) years for Medium
and Large enterprises without any break in production. However, in case of eligible
service activities listed in Annexure –II shall be in continuous production for
a period of three (3) years. If any industrial enterprise is not in operation/working
for more than 90 days continuously, then the industrial enterprise shall be treated
as break in production and not in continuous working. If break in production is
condoned by SLC, the continuous production period will be extended accordingly.
This condition is not applicable for seasonal industrial enterprises as defined
by the department.
17. Approved Project Cost: Approved project cost means, the cost
of the project on different components of the project as approved by the term loan
lending institution or in case of joint financing, by the lead term loan lending
institution. The appraised project cost by the Scheduled Commercial Banks/Financial
Institutions recognized by Reserve Bank of India for the purpose of sanction of
term loan would be treated as the approved project cost. However, the component
of working capital margin will not be considered for computing investment subsidy
for Micro and Small Enterprises. In respect of self-financed projects, the approved
project cost will be fixed by the Multi Disciplinary Committee (MDC) for Micro,
Small & Medium Enterprises. In case of self financed Large and Mega industries which
have not availed any assistance from financing institutions, such projects shall
be referred to Standing Scrutiny Committee (SSC) for inspection and report on the
project cost i.e. land, building, plant & machinery and other assets. These figures
shall be taken as approved project cost.
18. Revised Project Cost: The revised project cost for the self
financed Industrial Enterprises should be taken as certified by the Multi Disciplinary
Committee (MDC) for Micro, Small & Medium Enterprises and Standing Scrutiny Committee
(SSC) for large and Mega industries.
19. Aided Enterprise/Industry: The Enterprise/Industry avails term
loan from Scheduled Commercial Banks/Financial Institutions recognized by Reserve
Bank of India, A.P. State Financial Corporation (APSFC) and Small Industrial Development
Bank of India (SIDBI) for setting up the Enterprise/Industry is treated as Aided
Enterprise/Industry.
20. Self Finance Enterprise / Industry: The Enterprise / Industries
set up with own funds / unsecured loans without any involvement from Scheduled /
Commercial Banks / Financial Institutions / APSFC etc is treated as Self Finance
Enterprise. However, units established first with own funds / unsecured loans and
obtained Term Loan subsequently after commencement of production are treated as
self-finance units for the purpose of sanction of incentives under the policy. Further,
wherever, the enterprises / industry is established with term loan less than 40%
of the project cost will also be considered as self-financed units and in these
cases, the MDC / SSC should invariably co-opt the concerned financial institutions
as the member in addition to the existing members in the respective committee.
21. BC Enterprise : An enterprise with 100% BC entrepreneurs is
eligible enterprise under BC category. BC entrepreneur refers to a person hailing
from Andhra Pradesh and belonging to BC Category as notified by the Government of
Andhra Pradesh from time to time.
22. SC/ST Enterprise : An enterprise with 100% SC/ST entrepreneurs
is eligible enterprise under SC/ST category. SC/ST entrepreneur refers to a person
belonging to SC/ST Category as notified by the Government of Andhra Pradesh from
time to time. All non-statutory concessions granted to S.C. (Hindus) by the State
Government including economic support schemes sanctioned by A.P.Scheuled Castes
Cooperative Finance Corporation have been extended to Schedued Caste converts to
Christianity and Buddhism as per orders issued in the G.O.Ms.No.341, Social Welfare
(PR) Dept. dated 30.8.1977. 4.19 General Industries/Enterprises: The Industries/Enterprises
which have not covered under any sectoral policy or special category (SC/ST/BC).
23. Month: Calendar months.
24. Financial Year: 1st April to 31st March.
25. First Half Year: 1st April to 30th September
26. Second Half Year: 1st October to 31st March of next year