AP Report 2019-final

Progress / Developments
Consequent to the formation of Telangana
State, the industrial development in the
State of Andhra Pradesh has suffered due
to the following reasons.
• Loss of capital with Public Sector
Undertakings, major industries,
educational and R&D institutions
• Low level of industrialization
• Industrial backwardness of the region
• Critical infrastructure gaps
• Lower share of exports
• Revenue deficit
• Low literacy rates
To accelerate industrial development, the
Government of Andhra Pradesh requested
Government of India to accord “Special
Incentives for Industrial Development” as
has already been done for some other
states. These fiscal and tax incentives will
facilitate rapid industrialization and create
a level playing field in the State.
Special Package of Incentives sought
under Section 94 (1)
A proposal seeking special package of
incentives submitted to Government of
India under Section 94(1) of APRA,2014
Andhra Pradesh Government on 26 June
2014 addressed a letter to Mrs. Nirmala
Sitaraman, Commerce Minister,
Status Report - Union’s Commitment to Andhra Pradesh
Government of India for expediting the
proposal.
Andhra Pradesh Government on 26 June
2014 also addressed a letter to Sri Arun
Jaitley, Finance Minister, Government of
India for considering the proposal.
Response is awaited.
Special Package of Incentives sought
under Section 94 (2)
n Government of India vide CBDT
Notification issued in September 2016,
notified seven districts for availing tax
incentives - 15% of higher additional
depreciation and 15% of investment
allowance on the cost of Plant and
Machinery acquired under Section
32(1)(iia) and Section 32AD of the Income
Tax Act, in respect of any manufacturing
undertaking set up during the period from
01 April 2015 to 31 March 2020.
Subsequently, the Chief Secretary to
Government addressed a letter on 29
November 2016 to Chairperson, CBDT
and Special Secretary, Government of
India for considering backward mandals
of other 6 Districts for 15% of investment
allowance on the cost of Plant and
Machinery.
Comparison of Incentive Packages
Comparison of incentive packages given to
North-East Region States, Jammu & Kashmir
and Uttarakhand & Himachal Pradesh reveals
the following:
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