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Incentives offered by State Government of Andhra Pradesh
Hindupur is a home of ever growing industrial development. Along with domestic markets, the government is giving thrust towards exports. Further assessment of Government Policies, amendments and initiatives are expected to provide thrust towards the industrial development of Hindupur.

  • Business Units can set up operations in trading, manufacturing and service industry.
  • Exemption from Customs & Central Excise duty on imports or local procurement for business purposes in SEZ
  • 100% FDI and full and free repatriation of exports permitted.
  • Sub contracting a part of the production process is allowed in the Domestic Tariff Area as well as abroad. Incentives of IIPP Policy 2010-15 and various Central Government Policies & “Industrial Park Schemes”. Policies and amendments formulated to attract both domestic investors as well as foreign investors.
  • SEZ is a designated duty free enclave and treated as such for foreign trade operations, duties and tariffs.
  • The state government also provides incentives for setting up new business enterprise in the state, export promotion, quality competitiveness, leveraging existing strengths, focus on thrust sectors, revitalizing of MSMEs and green goals.
  • The State enacted a “Single Window Clearance Act “in 2002, with an aim to provide requisite clearances within a fixed duration.
  • There is facility for in house custom facility for rapid and seamless clearances.

Tax Holidays :

  • Exemption from Service Tax as well as Central Sales Tax.
  • First 5 years income tax holiday on export income, 50% in the next 5 years, with 50% ploughed back for 5 years.

  • Further State Government Support

    • The state government has enacted comprehensive and flexible legislative for comprehensive formulation adjacent exclusively for MPSEZ.
    • Exemption from levy of AP VAT, Exemption from payment of Stamp Duty and registration fee on registration of lease deeds.
    • 100% exemption from payment of stamp duty and registration fee for loan agreements, credit deeds, mortgages and hypothecation deeds executed by SEZ units for assets in SEZ in favor of banks and Financial institutions.
    • Exemption from payment of capital contribution charges for supply of water.
    • 15% investment subsidy on fixed capital investment to small scale industries (SSI) and Tiny Industrial Units subject o a limit of 15 lakhs.
    • 25% tax paid during one financial year will be ploughed back to all industries as a grant by the government towards the payment of tax in the next year.
    • 3% interest rebate on the Prime Lending Rate (PLR) on term loans taken by tiny/SSI units subject to limit of Rs5lakhs per year. This will be 5% if SX and ST entrepreneurs promote the units.
    • An additional investment subsidy of 5% subject to a minimum of Rs5 Lakhs will be provided to women entrepreneurs. They will also be given 5% interest rebate on PLR
    • Project with an investment of 100 crore and above are eligible for all the incentives available to large and medium scale industries.
    • The government will also extend tailor made benefits to suit a particular investment requirement on case to case basis.