6. INDUSTRIES - AP Online

The PMEGP scheme is being implementedby the Industries Department w.e.f. 2009-10and the details of the progress made are asindicated below:YearNo ofunitsgroundedAmountdisbursed in RsCrsEmployment2009-10 702 21.97 177302010-11 906 23.59 142002011-12 655 20.11 6550In all, 655 projects under PMEGP have beenestablished in the State during 2011-12(tillthe end of Sept.2011) for which total marginmoney released was Rs.20.11 crores.Warangal district with 69 projects and withmargin money of Rs. 1.92 crore, tops the listin the State. The District-wise details ofPMEGP projects established and marginmoney released are given in Annexure 6.2.Rehabilitation of Sick SSI units:Government have introduced a Schemecalled A.P. Small Scale Industries RevivalScheme (APSSIRS) to address the problemof sickness in SSI sector. Under APSSIRS,the Special Cell has sanctioned 58 relief andconcessions. Subsequently, the Governmenthave launched a new revised scheme i.e.,A.P. Small Scale Sick Industries Revival &Rehabilitation Scheme-2006 (APSSSIRRS)for revival of sick enterprises to coverrehabilitation of potentially viable enterprisesand to prevent incipient sickness.Government also decided to set up “A.P.Small Scale Industries Revival andRehabilitation Fund” for the purpose ofpartially compensating the sacrifices made bythe Financing Institutions, Banks etc.The following relief and concessions arebeing made available.i. Relaxation from ULC Act.Grant of permission to mortgage surplus landby exempting it under section 20 of theUrban Land Ceiling (ULC) Act in favour ofbanks / financial institutions, as proposed inthe Industrial Investment Promotion Policy2005-10.ii. Healthy Industrial Relation:The labour department would take proactiveaction for amicable settlement of disputesbetween management and representatives oflabour so as to ensure success of therehabilitation package with the cooperationof the workers.iii. Interest rebate to Bank/FinancialInstitutions:The backbone of the new revised policy is toencourage the Banks/Financial institutionsfor servicing the sick units and provide arehabilitation package for their quick revivalto join the main stream. 6% interest subsidywill be provided to all the identified /eligiblesick units, subject to maximum of Rs.2.00lakhs per year for a maximum period of threeyears. However, the component of theinterest to be reimbursed shall beprojected by the Financing Bank and thebalance percentage of interest charges shallbe borne by the beneficiary (which includessurcharge and penal interest etc.iv. Deferment of Commercial Tax (CT)Arrears:Arrears of payment of purchase tax, sale taxand interest towards non-payment of sales taxshall be deferred for 3 years from the date ofgrant of revival package. The amount sodeferred will be recovered in six equal halfyearly installments effective after three yearstax holiday.v. Relief in Energy Charges:a) If the sick industrial unit underconsideration has to pay arrears of CurrentConsumption (CC) charges, it may be givenchoice either to pay the entire arrears of CCCharges up to the date of disconnection withinterest and 4 months minimum chargesduring closure period without interest +Contracted Maximum Demand (CMD)charges in one lump sum for new connection,the percentage of interest charged byAPTRANSCO/DISCOM on the arrears ofCC charges will be subsidized to the extentof 15% of interest charged from out of thepercentage of the total interest charges andthe same will be paid to APTRANSCOsubject to a maximum of Rs.5.00 lakhs andthe balance percentage of interest chargesshall be borne by the beneficiary (whichincludes surcharge and penal interest etc.).b) If the Industrial unit under considerationopts for payment of arrears of CC charges up77

1.14. To extend investment subsidy to theidentified service activities related toindustries setup in all MunicipalCorporation limits in the State.2. Medium Enterprises & LargeIndustries2.1. 100% reimbursement of Stamp dutyand transfer duty paid by the industryon purchase of land meant for industrialuse.2.2. 100% reimbursement of stamp duty forlease of Land / Shed / Buildings,mortgages and hypothecations.2.3. 25% rebate on land cost limited toRs.10.00 lakhs in Industrial Estatesand Industrial Parks.2.4. 25% land conversion charges forindustrial use limited to Rs.10.00 lakhsfor medium enterprises.2.5. Fixed power cost @ Rs.0.75 per unit(upper ceiling) on the proposed revisedrates (2010-11) for a period of 5 yearsfrom the date of commencement ofcommercial production. In case,decrease in Power Tariff thereimbursement will be reducedproportionately.2.6. Reimbursement of 25% VAT / CST orState Goods and Service Tax (SGST)for a period of 5 years from the date ofcommencement of commercialproduction.2.7. 50% Reimbursement of cost involvedin skill upgradation and training thelocal manpower limited to Rs.2000 perperson.2.8. 50% subsidy on the expenses incurredfor quality certification / patentregistration limited to Rs.2.00 lakhs forMedium Enterprises.2.9. 25% subsidy on specific cleanerproduction measures limited toRs.5.00 lakhs.2.10. Infrastructure like roads, power andwater will be provided at door step ofthe industry for stand alone units bycontributing 50% of the cost ofinfrastructure from IndustrialInfrastructure Development Fund witha ceiling of Rs.1.00 crore subject to (a)the location should be beyond 10 KMsfrom the existing Industrial Estates /Industrial development Areas havingvacant land /shed for allotment and (b)cost of the infrastructure limited to15% of the eligible fixed capitalinvestment made in the industry.3. Scheduled Caste / Scheduled TribeEntrepreneurs3.1 100% reimbursement of stamp duty andtransfer duty paid by the industry onpurchase of land meant for industrialuse.3.2 100% reimbursement of stamp duty forlease of Land / Shed / Buildings, andalso mortgages and hypothecations.3.3 33 1/3 rebate in land cost limited toRs.10.00 lakhs in Industrial Estates /Industrial Parks.3.4 25% land conversion charges for theindustrial use limited to Rs.10.00 lakhs.3.5 Fixed power cost @ Rs.1.00 per unit(upper ceiling) on the proposed revisedrates (2010-11) for a period of 5 yearsfrom the date of commencement ofcommercial production. In case,decrease in Power Tariff thereimbursement will be reducedproportionately.3.6 Reimbursement of 100% VAT / CST orState Goods and Service Tax (SGST) fora period of 5 years from the date ofcommencement of commercialproduction to Micro Enterprises.3.7 Reimbursement of 50% VAT / CST orState Goods and Service Tax (SGST) fora period of 5 years from the date ofcommencement of commercialproduction to Micro Enterprises.3.8 Seed capital assistance to FirstGeneration Entrepreneurs to set-upMicro Enterprises @ 10% the Machinerycost, which will be deducted from theeligible investment subsidy.3.9 35% investment subsidy on fixed capitalinvestment for Micro & SmallEnterprises by SC and STEntrepreneurs, with a maximum limit ofRs.50.00 lakhs per unit (i.e. 35% for SCand ST Entrepreneurs and 40% for SCWomen and ST Women Entrepreneurs).Additional 5% investment subsidy for79

units set up in Scheduled Areas by STEntrepreneurs with a maximum limit ofRs.50.00 lakhs per unit.3.10 Interest subsidy under Pavala VaddiScheme on the term loan taken on thefixed capital investment by New Microand Small Enterprises in excess of 3%per annum subject to a maximumreimbursement of 9% per annum for aperiod of 5 years from the date ofcommencement of commercialproduction.3.11 50% Reimbursement of cost involvedin skill upgradation and training the localmanpower limited to Rs.2000 perperson.3.12 50% subsidy on the expenses incurredfor quality certification / patentregistration limited to Rs.2.00 lakhs forMSEs.3.13 25% subsidy on specific cleanerproduction measures limited to Rs.5.00lakhs.3.14 For Micro and Small Enterprises set upby SC and ST entrepreneurs,Infrastructure like roads, power andwater will be provided at doorstep of theindustry for stand alone units bycontributing 50% of the cost ofinfrastructure from IIDF on FixedCapital Investment with a ceiling ofRs.1.00 Crore, subject to a) the locationshould be beyond 10 kms from theexisting Industrial Estates/IDAs havingvacant land/shed for allotment; andb)cost of the infrastructure limited to15% of the eligible fixed capitalinvestment made in the industry. 50% ofthe cost of infrastructure is raised to 75%in respect of units set up by STentrepreneurs in Scheduled areas.3.15 The line of activity considered aseligible exclusively in case of ScheduledCaste and Scheduled Tribeentrepreneurs and incentive shall beextended under service activity.4. Women Entrepreneurs.4.1 5% Additional Investment subsidy onfixed capital investment limited toRs.5.00 lakhs to Micro & SmallEnterprises.4.2 All other benefits as stated above inrespect of Micro & Small enterprises.5. Mega Projects5.1 Mega projects i.e. projects with aninvestment of Rs.250 crores and aboveor a project that created employment tomore than 2000 persons are eligible forall the incentives available for Large &Medium Scale industries.5.2 Further, the Government will also extendtailor made benefits to suit to particularinvestment requirements on case to casebasis.Pavala Vaddi Scheme:Government have introduced an InterestSubsidy Scheme of “Pavala Vaddi” to reducethe financial burden for setting up of NewMicro & Small Enterprises including FoodProcessing Industries in the State. TheScheme shall be applicable to the Term Loanavailed by eligible new Micro & SmallEnterprises on or after 1-7-2010. The newMicro and Small Enterprises shall commencecommercial production after 1-7-2010 andbefore 31.3.2015. The new Micro and Smallenterprises under IIPP-2005-10, availingterm loan from scheduled commercial Banksrecognized by Reserve Bank of India,APSFC and SIDBI only are eligible underthis scheme.1. The reimbursable interest on term loan isthat portion which is in excess of 3 % perannum, subject to a maximumreimbursement of 9% per annum.2. The interest amount paid by the neweligible Micro & Small Enterprises to thefinancial institution/ banks on the termloan availed will be reimbursed with amaximum limit of 9 % on half yearlybasis through the concerned FinancialInstitutions/Banks. Benefit will beavailable for period of 5 years from thedate of commencement of commercialproduction i.e. up to 1 st half of 6 th year ortill the closure of the term loan accountwhichever is earlier.3. This reimbursement to the unit shall notinclude penal interest, liquidated damagesetc., paid to the Financial Institutions/Banks.80

4. The benefit shall be extended only to theeligible new units which are promptlyand regularly repaying the loaninstallments of principal and interest.5. The loan accounts that are classified asoverdue in the books of the bank at thetime of half yearly closing and that whichare classified as Non-performing assetsyear-end closing are ineligible. However,if they resume on-time repayments andregularize the arrears, they are eligible forthe incentive in the next half yearlyperiod.6. The benefit shall be extended only toeligible new Micro & Small enterprisesset up in the State except in the MunicipalCorporation limits of Visakhapatnam,Vijayawada and Hyderabad. However,units under expansion/diversification arenot eligible for this benefit.7. The classification of enterprises as Micro& Small enterprises shall be as per theMSMED Act, 2006.8. All the definitions and other guidelinesnot mentioned in the G.O. shall befollowed as per the operational guidelinesof IIPP-2010-15 Scheme.Food Processing Policy of AP:The objective of the policy is to developvalue added Agro Industries in AndhraPradesh as a major vehicle of growth for itstrade and economy, to generate large scaleemployment in the rural areas and providehigh returns to farmers, to maximize use ofthe opportunities and potential in Agricultureand related sectors, in which Andhra Pradeshhas significant strength, by creating vitallinkages and synergies between Agricultureand Industry. Government has announcedvarious incentives under Food ProcessingPolicy of A.P including reimbursement ofPower @ Rs.1/- per unit exclusively to theFood Processing units and the otherincentives will be granted as per IIPP 2010-15 Policy.Industrial Infrastructure DevelopmentFund (IIDF)Government have introduced the Scheme of“Industrial Infrastructure Development Fund(IIDF)” for providing financial assistance todevelop infrastructure facilities at thedoorstep of the proposed industrialestates/unit. The facilities include -a. Drinking water and Industrial Waterb. Electricityc. Telecommunicationsd. Drainage, laying of drainage line fromthe unit/industrial estate to the existingpoint or to the natural drainage point.e. Roads.f. Any other infrastructure facilities asapproved by the Government; SLC.g. Common Effluent treatment plans.Industries which are declared as “ineligibleindustries” under the Industrial Policiesannounced from time to time are not eligiblefor financial assistance from IndustrialInfrastructure Development Fund.Government Estates shall only be consideredto have the benefits of the IIDF. Industriesproposed to be located in place other thanindustrial areas (isolated areas) are eligiblefor financial assistance towards the cost ofinfrastructure facilities up to 50% of the costof the project or Rs.100 lakhs which ever isless, if such a location is otherwise justified.The decision of the SLC shall be final onsuch eligibility. The cost of Infrastructure tobe developed should not exceed more than15% of the total project cost of the unit.Bio-technology Park:Government of Andhra Pradesh intends toprovide high quality infrastructure at areasonable cost with integrated services toBiotech manufacturing units by setting up aseries of Bi-tech parks throughout the State.Shapoorji Pallonji Biotech Park is located atTurkapalli (Village), Shamirpet (Mandal),Ranga Reddy District in an area of 300 acreswith a private promoter to cater the needs ofincreasing demand for space, an additionalspace of about 1.2 million sq.ft. is developedin Phase-II of the park. Apart from this,APIIC has also developed Biotech Park atKarakapatla (V), Mulugu (M) of MedakDistrict in an area of 609 acres.Government have constituted an AdvisoryCommittee for Biotechnology Park, whichwill advise the Government on the81

infrastructure to be created, types of units tobe allotted site in the Park etc.Growth Centers:Government of India with a view to act asmagnets for attracting industries in backwarddistricts, have approved Growth Centers toprovide best infrastructure facilities availablein the country in respect of power, water,telecommunications. The cost of eachGrowth Centre is Rs.30 crores. The financingpattern of the Growth Centre is in the ratio of2:1. Government of India have sanctioned 4Growth Centers to the State which are beingset up at Bobbili in Vizianagaram District,Ongole in Prakasam District, Hindupur inAnanthapur District and Jadcherla inMahabubnagar District. The APIIC Ltd., isthe implementing agency for theestablishment of Growth Centres.Integrated Infrastructural DevelopmentCentres (IIDC):Integrated Infrastructural DevelopmentCentres (IIDC) is to facilitate setting up ofindustries in rural/backward areas and toprovide stronger linkages betweenAgriculture and Industry. The cost of theCentre will be financed by the CentralGovernment by way of grant and the balanceas loan from SIDBI. Government of Indiahave sanctioned 6 IID centres in the Statewhich will be developed by the APIIC Ltd.1. IIDC, Udumulapur, near Nandyal,Kurnool District.2. IIDC, Tada, Nellore District.3. IIDC, Keelapattu(V) Nagari, ChittoorDistrict.4. IIDC, Madikonda, Warangal District.5. IIDC, Gajularamaram, Ranga ReddyDistrict.6. IIDC, Surampally, Vijayawada, KrishnaDstrict.The status of implementation of abovecentres is as follows:IIDC, Udumulapur: The approved cost ofthe IID Centre is Rs.235.99 lakhs. The costof the Centre will be financed by way ofRs.2.00 crores grant by Central Governmentand the balance as loan from SIDBI.Government of India have so far released anamount of Rs.65.50 lakhs as grant. TheAPIIC Ltd. have acquired 68.55 acressituated at Nandyal (M) Kurnool district forthe development of the centre. 92 plots aredeveloped.IIDC, Tada: Government of India haveapproved IIDC, Tada, Nellore District with atotal cost of Rs.404.69 lakhs. Theimplementing agency has developed theIIDC in an area of 30 acres and all the 136plots developed have been allotted to thewomen entrepreneurs.IIDC, Keelapattu: Government of Indiahave approved IIDC Keelapattu, ChittoorDistrict with a project cost of Rs.499.10lakhs. The development work is yet to bestarted.IIDC, Madikonda: Government of Indiahave approved IIDC, Madikonda, WarangalDistrict at a total cost of Rs.452.23 lakhs.The development work is yet to be started.IIDC, Surampally (V), Vijayawada:Government of India have approved thesetting up of IIDC at Surampally village at anestimated cost of Rs.370.00 lakhs which willbe implemented by Association of LadyEntrepreneurs of Andhra Pradesh (ALEAP).Government of India so far released anamount of Rs.52.33 lakhs as a grant to theALEAP. The ALEAP is developing IIDC inan area of 29 acres which is underimplementation.IIDC, Gajularamaram: Government ofIndia have approved for setting up of IIDC atGajularamaram, Ranga Reddy District at anestimated cost of Rs.347.00 lakhs and alsoreleased an amount of Rs.1.40 crores as agrant to ALEAP, the implementing agency. Ithas developed the IIDC in an area of 30 acresand developed 136 plots and allotted all theplots to the women entrepreneurs.Critical Infrastructure Balancing Scheme(CIBS):Government have introduced new schemecalled ‘CIBS under which funds will be madeavailable to the Industrial Association /Service Societies/ NGOs for the up gradationof the infrastructural facilities such as watersupply, power, laying of roads, effluentTreatment Plants, etc. in the existing IEs /SSIclusters identified under the SSI clusterdevelopment programmes. The funds will be82

provided/ reimbursed in the ratio of 1:1between Government and IAs/ ServiceSocieties/ NGOs. In some cases wherenumber of sick and closed units and vacantplots are more than 50% APIIC will share20% of the estimated cost and the servicesocieties have to contribute only 30% of theproject cost.* * *INDUSTRIAL INFRASTRUCTURESpecial Economic Zones(SEZ):6.2 Andhra Pradesh Industrial InfrastructureCorporation (APIIC) is the nodal agency forthe Special Economic Zones in AndhraPradesh. There are 114 SEZs approved by theGovernment of India and out of these, 75 arenotified and 27 SEZs have becomeoperational.The projected direct employment generationis 8,50,022 and created employment is 97763so far. The projected investment is Rs.1,05,447 crores and achievement so far is Rs.14,267.43 crores.The details of the exports from out of SEZsare as follows:YearExports (Rs.Cr.)2008-09 3021.002009-10 5554.002010-11 13334.69Petroleum Chemical and PetrochemicalInvestment Region (AP PCPIR)Department of Chemicals & Petrochemicals,Government of India has accorded approvalin March 2009 for development of PetroleumChemical and Petrochemical InvestmentRegion (AP PCPIR) in Visakhapatnam –Kakinada Region in an extent of 603.58Sq.Km. A Memorandum of Agreement(MOA) was signed between Government ofIndia and Government of Andhra Pradesh on01-10-2009. Government of Andhra Pradeshhas already constituted a SpecialDevelopment Authority as Visakhapatnam –Kakinada Petroleum, Chemical andPetrochemical Investment Region SpecialDevelopment Authority (VKPCPIRSDA) forplanned growth of the area by making masterplan, providing civil amenities etc, in theSDA area. Master Plan is under preparation.State Government has sanctioned Rs.40.00Crore for this project which will be utilizedfor Land Acquisition for widening of stateroads providing NH connectivity.AP Gas Infrastructure CorporationExploration and Production:The State Government with an intention toutilize the natural gas for the overalldevelopment of the State’s economy throughthe participation in Upstream and thedownstream sectors like power, fertilizers,ceramics, glass, Commercial, domestic fueland automobile etc., have created a SpecialPurpose Vehicle by name “Andhra PradeshGas Infrastructure Corporation(APGIC)”.The APGIC was incorporated on 2.9.2009 asa Government Company. It is a Joint Ventureof APIIC and APGENCO with 51 and 49%equity in it respectively. Krishna-Godavaribasin is considered to be one of the world’srichest deposits of natural gas. The APGICgot the mandate to participate in the NELPbiddings for the Exploration and Productionof Natural Gas. The APGIC had joined handswith the global majors of E&P activities ofoil and natural gas, such as British Gas,ONGC, OIL, and NTPC and participated inthe bidding. The APGIC won one DeepWater Block and three Shallow Water blockswith other consortium partners. The APGIChas 10% equity in all the four blocks andwhereas other partners got the remaining90% interest. British Gas is the operatingpartner for the Deep Water Block where asONGC is the operating partner for the threeShallow Water Blocks. It is estimated that theAPGIC, as 10% equity holder in the fourblocks, has to spend about US$ 40.5 Millions(Rs. 184.28 Crs.) in total. So far, an amountof Rs. 8.94 Crores has been contributed forall the blocks.Progress of Upstream:KG-DWN-2009/1:The activity progressed so far: Loaded 2D seismic and 2 wells data. Tied2 wells to seismic. Regional correlation to tie the two areas(A &B) using a GXT line.83

Velocity modeling using well dataprepared. Mapping of four tertiary horizons in AreaB completed. Time Map for all four tertiary horizons inArea B generated.KG-OSN-2009/1: G &G interpretation of the existing datais completed.o Regional mapping of reflectors closeto the top of Basement and cretaceousin 2D data is completed.o Correlation of events closes tocretaceous, Albian, within Albian andBerremian top, and basement in 3D iscompleted. Processing of 2D Seismic data (Phase II)at RCC Chennai is in progress. Newly acquired 2D data loading in IIWSis in progress.Newly acquired 3D seismic Data at RCCChennai is in progress. Notice andmultiple attenuation tau P dominion iscompleted. NTPC Geophysicist interacted withoperator regarding Seismic dataprocessing.2D - 1163.5 LKM; 3D 567.275 SKMcompleted (Cumulative).KG-OSN-2009/2: G &G interpretation of the existing datais completed.- Regional mapping of the reflectorsclose to the top of Basement andCretaceous in 2D completed.Processing of 2D seismic data (Phase II)at RCC Chennai is completedNewly acquired 2D Seismic data loadingin IIWS is in progress.Processing of newly acquired 3D Seismicdata at RCC Chennai is in progress.Noise and multiple attenuation in tauPdomain is completed.MC Meeting was held at DGH office,Noida on 27th Sep 2011 and discussedthe status of Exploration of blocks.2D - 1163.5 LKM; 3D 357.735 SKMcompleted (Cumulative).KG-OSN-2009/4: Regional mapping of the reflectors closeto the top of the basement and cretaceousis completed. Mapping of two reflectors close to Mio-Pliocene and Cretaceous within 3D areais completed.Gas Distribution Network:The Petroleum and Natural Gas RegulatoryBoard (PNGRB), New Delhi is thecompetent authority to regulate the petroleumand natural gas pipeline and other midstreamand down stream activities in India. PNGRBso far conducted three rounds of bidding toallocate the Geographical Areas to theinterested entities to lay and operate the Cityor Local Gas Distribution Networks. In thefirst two rounds of bidding the PNGRB hasincluded Hyderabad, Vijayawada, Kakinadaand Rajahmundry cities of our State amongother Cities of various States. M/s.Bhagyanagar Gas Limited has beenauthorized by PNGRB to lay CGD networkfor Hyderabad, Kakinada and Vijayawadacities. APIIC, the parent Company of APGICis holding 5% equity in Bhagyanagar GasLimited. Rajahmundry city was underbidding in round 2 and it is learnt that M/s.Reliance (RIL) has to be declared assuccessful bidder as per PNGRB parametersbut authority has not been awarded due to acase pending before Supreme Court. TheState Government of Andhra Pradesh hadrequested PNGRB to switch over to DistrictGas Network instead of City GasDistribution Network so as to enable the ruralareas to get the advantage of natural gasavailability. The PNGRB had accepted theproposal of the Government of AndhraPradesh and accordingly from the 4th roundof bidding it has taken district as a unitinstead of city. In the 4th round bidding tobe closed on 16 th Nov, 2011, in which thedistricts viz., Ranga Reddy-Medak, Nalgondaand Khammam are included. The APGIChas submitted the details basis Suo – motuletter of PNGRB for laying and maintainingthe City or Local Gas Distribution Networksfor the Geographical Areas in addition toRangareddy-Medak, Nalgonda andKhammam (4 th Round of Bidding) viz., 1)84

West Godavari-South of East Godavari-Krishna, 2)Visakhapatnam-North of EastGodavari, 3) Srikakulam-Vizianagaram, 4)Karimnagar-Warangal Districts, 5) Chittoorand 6) Mahabubnagar districts.Andhra Pradesh Gas DistributionCorporation (APGDC):The Andhra Pradesh Gas InfrastructureCorporation (APGIC) is planning toparticipate in the bidding for the CGDs’ inthe State. To participate independently forthese Local Gas Distribution Networks, theAPGIC yet to acquire the qualification suchas previous experience in laying andmaintaining the Gas pipelines of at least 300K.Ms cumulatively. Keeping in view of theabove, the APGIC had incorporated a wholesubsidiary company by name AndhraPradesh Gas Distribution Corporation(APGDC) from Infrastructure & InvestmentsDepartment. APGIC is offering 50% ofequity in APGDC to GAIL Gas Limitedinitially, before off-loading to privateparticipants, at prorata basis subsequently.After off-loading the 50 % equity to thePrivate/Public participants, the equity shallbe APGIC 25 %, GAIL GAS Ltd 25 %,Private/Public Participants 50%.As GAIL Gas Ltd., had the experience andexpertise in laying and maintaining the Cityor Local Gas Distribution Networks as wellas cross-country pipelines, it is thought theirassociation will augment well for the State.And also the APGDC will acquire all the prerequisitequalifications to compete for thebids conducted by the PNGRB for the City orLocal Gas Distribution Network or Crosscountryor other pipelines.Recently the output of natural gas hasdropped down significantly from KG-D6, thesupplier; Reliance is unable to meet thedemand as committed to the downstreamentities. Moreover, MoPNG indicated to relyon LNG is inevitable. Govt of AndhraPradesh is also of the opinion to opt forRLNG through floating barge or land basedterminal in the East coast of Andhra Pradeshin view of swapping issues and additionaltaxes for importing Gas from West coast.This matter was deliberated with GAIL atlength during 4 th Board meeting on 15 th Oct2011. GAIL were asked to prepare feasibilityreport to explore avenues further for suitablelocation and a knowledgeable experiencedparty.Regional Grid:The State and APGIC are planning to havethe State-wide Pipeline Grid connectingCGD/Local Gas Distribution Networks so asto cover all the districts thereby enabling thesupply of natural gas for domestic, industrial,commercial and automobile purposes. It isalso to cover Industrial Parks, SEZs’ andNHs’Industrial Park, MannavaramThe Government of Andhra has issuedrevised orders alienating Government landmeasuring an extent of Acs.753.85 atIndustrial Park, Mannavaram i.e., Acs.490.08situated in Sy.Nos.1-1, 1-3, 68-1, 69-1, 80 &145 of Mannavaram Village and Acs.263.77situated in Sy.Nos. 1, 19, 23-1, 507, 508,509, 510 & 512 of Kalavagunta Village ofSrikalahasthi Mandal, Chittoor District,Andhra Pradesh in favour of APIIC Ltd. TheRevenue Authorities have handed overpossession of revised extent of Acs.753.85i.e., 490.08 acres. in Mannavaram Villageand 263.77 acres. in Kalavagunta Village ofSrikalahasthi Mandal to APIIC Ltd., in June2010. The APIIC has handed over therevised extent of 753.85 acres @ Rs.100/-per acre to M/s. N.B.P.P.L. in June 2010 andregistered the fresh deed of sale in favour ofM/s. NTPC-BHEL Power Projects PrivateLimited.As regards to civil works, the compound wallfor factory area about an extent of 400 acreswith a cost of Rs.238.00 lakhs completed.The compound wall for town ship area with acost of about Rs.91.00 lakhs is beingconstructed. Further, in 1 st phase 17 Nos.(i.e., fabrication building, administrationbuilding, permanent store, open store,shifting yard, dispensary building, securitybuilding, fire station building, substationbuilding for 33 KV, canteen, entrance gates,over head tank, sump, formation of internalroads, drainage system and water distributionsystem etc.) works were taken up with a costof Rs.40.00 crores duly fixing target date forcompletion by 12/2012. All buildings are85

come upto plinth level and columns castingare in progress. At present, eleven engineersare employed by NBPPL company forsupervision of works taken up by them. Atabout 450 people are engaged by thecontractor as temporary employees forexecution of various works presently goingon at site. The employment will be generatedabout 5000 Nos., direct employment and 25,000Nos., indirect employment.* * *INDEX OF INDUSTRIALPRODUCTIONThe Index of Industrial Production (IIP) isyardstick of measuring the Industrial growthin the State. It includes the relative change ofphysical production in the field of Industryduring specific period as compared to theprevious period. The IIP is estimatedmonthly by collecting data from the selectedunits of Manufacturing, Mining andQuarrying and Electricity. The mainobjective is to estimate the contribution ofIndustrial sector to the Gross State DomesticProduct.In the State, the IIP is being compiled withbase year 1993-94 for 17 industrialclassifications at 2-digit level underManufacturing sector.As per the Advance estimates 2011-12(A),the Mining & Quarrying, Manufacturing(Regd.), Electricity sectors have registered0.90%, 9.6% and 8.1% growth respectively.Where as at all India level the Mining &Quarrying, Manufacturing, Electricity sectorshave registered (-)2.2%, 3.9% and 8.3%growth respectively.The estimates of IIP for the period April-November, 2011 (provisional) for AndhraPradesh - General Index shows a growth of –11.9% over the corresponding period ofprevious year. The General Index growth atall India level for the period April-November, 2011 is 3.8%. In the State Mining& Quarrying, Manufacturing and ElectricitySectors registered a growth of (-)1.1%,14.1%and 9.9% respectively. Where as in all Indiathe growth in Mining and Quarrying,Manufacturing and Electricity Sectors are(-)2.5%, 4.1% and 9.5% respectively. Theindices of IIP of the State are given Annexure-6.3.Growth in Industrial Production in terms ofIIP is visible over the decade as shown in thefollowing diagram.Index of Industrial Productio300250200150100500145.12001-02Index of Industrial Production in AP155.12002-03164.22003-04173.82004-05188.72005-06223.62006-07242.02007-08234.72008-09250.6273.82009- 2010-10 11Use-based groups are integral part of the IIP,divided in to four major groups i.e., Basicgoods, Capital goods, Intermediate goods andconsumer goods and these groups haveregistered a growth of 0.9%, 47.7%, 4.8%and 15.7% respectively during the periodApril - November, 2011 (provisional) ascompared to the corresponding period ofprevious year. Consumer durables andConsumer non-durables have registered agrowth of 10.0% and 15.9% respectivelyduring the period April - November, 2011(provisional) as compared to thecorresponding period of previous year.ANNUAL SURVEY OF INDUSTRIESThe Annual Survey of Industries is theprincipal source of Industrial statistics in theState. It is conducted once in a year tocollect the data from the OrganisedManufacturing units registered under thesection 2m (i) & 2m (ii) of the factories Act1948. This refers to the factories employing10 or more workers and using power orthose employing 20 or more workers but notusing power and Beedi and Cigar unitsregistered under Beedis, Cigarworker(conditions at employment) Act, 1966.The main objectives of Annual Survey ofIndustries are:1. Estimation of the contribution ofmanufacturing Industries as a whole and ofeach type of Industry to the State Income.86

2. Systematic study of the structure of theIndustry as a whole and each type ofIndustry.3. Analysis of various factors influencingIndustries in the State.4. Provision of comprehensive, factual andsystematic basis for formulation of Policy.The Data for 16 principal characteristicsbased on Annual Survey of Industries aregiven in from 2004-05 to 2009-10 (P)Annexure- 6.4.* * *STATE LEVEL PUBLICENTERPRISES6.3 There are 30 state level public enterprises(SLPEs) functioning in the state. As per theworking results of these SLPEs, theperformance during the year 2008-09 is asfollows:Capital Employed: The capital employed byall the 30 state level public enterprises wasRs.32,580.96 crores. The Top five state levelpublic enterprises whose ‘Capital employed’is highest are A.P.GENCO, HousingCorporation, A.P.TRANSCO, SingareniColleries Co. Ltd and APSFC. The capitalemployed by the top five SLPEs constitute81.43 % of the total capital employed by allthe SLPEs in the state.Turnover:The total turnover (including other income)made by all the 30 public enterprises wasRs.36,276.67 crores. The Top five state levelpublic enterprises whose turnover is highestare - State Beverages Corporation, A.P.GENCO, Singareni Colleries Co. LtdAPSRTC, and Civil Supplies Corporation.The turnover achieved by the top five statelevel public enterprises to total turnoverworks out to 87.24%.Profit:23 SLPEs, out of the 30 have made profittotaling to Rs.2258.49 crores during 2008-09. The Top five state level publicenterprises that made profits during 2008-09are Housing Board (Rs.1029.06 crores)APGENCO (Rs.515.20 crores), SingareniCollieries Co. Ltd.(SCCL) (Rs.248.32crores), A.P TRANSCO (Rs.113.10 crores)APSRTC(Rs.110.78 Crores) and the totalprofit made by these five SLPEs isRs.2016.46 crores, which is 89.28% of thetotal profit made by all the 23 profit makingSLPEs.* * *MINES AND GEOLOGY6.4 Minerals form a major contributor toeconomic growth of the state. AndhraPradesh is a Mineral rich State in the Countrycontaining a vast and variety of MineralWealth particularly Industrial Minerals. It isa house for 48 minerals and more specificallyfor Gold, Diamond, Bauxite, Beach Sand,Limestone, Coal, Oil and Natural Gas,Manganese, Dolomite, Quartz, Feldspar,Precious and Semi-precious stones, Clays,Calcite, Steatite Iron Ore, Base Metals,Barytes, Uranium, Granite, Limestone Slabs,Marbles, Dimensional Stones and otherBuilding Materials.The State with vast mineral potential hasworked out certain strategies to explore,exploit and develop the mineral sector withthe constructive co–operation of both privateand public sectors. The State has focused onthe inventory of mineral resources, key issuesof legislation, objective and strategies in tunewith the National Mineral Policy inaccelerating the growth in the liberal regimeand thereby leading to overall developmentof the mining sector.The State Mineral Policy is an integration ofNational Policy. The main aim of StateMineral Policy is to serve as a guiding forceto translate the State’s mineral potential intoreality with the objectives of eco-friendly andsustainable mining.Andhra Pradesh is rapidly changing andemerging as a Mineral State of Globalimportance and growth of Mineral Economy.The State is constantly encouraging newentrepreneurs to ground Mining and MineralProjects through effective implementation ofGovernment policies and quick disposal forMineral Concession Applications. Theprogressive strategies and Polices of the statehave culminated in growth of leases, extent,87

states. Accordingly, State Level Task Forceunder the Chairmanship of the Secretary,Industries and Commerce Department andDistrict Level Task Force was constitutedunder the Chairmanship of District Collector.The State Level Task Force has met anddiscussed issues of Forest and Revenueclearances for quick disposal of leaseapplications to stop illicit mining andtransportation, more powers for seizure ofvehicles under M.V. Act, blanket clearancesin respect of mineral bearing areas falling inRevenue lands, identification ofcompensatory land adjacent to Forest areas,by Forest Department, inclusion ofCommercial Tax Department, Seizure andsafe custody of vehicles in the respectivePolice stations etc.Investigations and ExplorationInvestigations are carried out for Explorationand prospecting of mineral deposits, Buildingup History of Mines, Preparation of maps ofmineral belts, Rendering advice forestablishment of mineral based industries etc.These functions also comprise regionalgeological mapping followed up by detailedprospecting of mineral bearing areas selectedon priority basis and estimation of reserveswith quality. All mineral investigationscarried out by the Central and State agenciesin Andhra Pradesh are coordinated by thedepartment. Mineral Investigations andexplorations on promotional basis,Exploration by drilling in promising mineralbelts is also undertaken to estimate thequality and quantity of the minerals availablebefore venturing upon exploitation. Further,measures are taken to prevent frittering oflarge mineral deposits and steps towards theirmore systematic exploitation. It is thereforesuggested to reserve certain areas forexclusive exploitation in the Public sector.The Department through DMRTUF Trust hascarried out investigations like Scan ofSrikakulam and Kurnool mineral resourcesfor grounding of mineral projects, Limestonewaste utilization from the intensive limestonemining areas in collaboration with NCCB,Iron Ore in Kadapa district and proved knowpotential, grade and resources forexploitation of Iron Ore, Promotional drillingfor Granite in Prakasam and Karimnagardistricts, Limestone in Guntur and Anantapurdistricts, In addition, the department havealso taken up the following investigationswith the active participation of DMRTUFand Universities. Studies on exploration and reserveestimation for new and hidden bauxitedeposits in EGMB of A.P. Geochemistry and utility of grey andblack shale overburden of theMangampet Baryte deposit- To probe theindustrial application. Geochemistry of the Phosphoric siliceousdolostones near Pulivendula, KadapaDistrict. Evaluation of waste rock derived out ofDimensional Stone mining in parts of A.Pand its utility. Evaluation of Dimensional Stone graniteof Chittoor District. Geophysical Investigation of the gushingof gas in parts of Kadapa basin.Revival of sustainable mining activity inNellore Mica Belt through prospectingfor “COLTAN” (Colambite-Tantallum)and other economic minerals. On-line Processing of MineralConcession Applications: Project Khanijain Kadapa District.The department is also taking activeparticipation in all the Central GeologicalPrograms and Sub-Committee meetings forexploration of minerals in the State.Mineral ProjectsThe Department has taken initiative forgrounding of Bauxite mining projects andestablishment of Aluminum / Aluminaproject with an investment of Rs.40,000crores, Uranium Project with 2000 crores.Beach Sand heavy minerals project withRs.6000 crores, Steel plant with Rs.20,000crores, Iron ore project with Rs.160 crores,Gold and Diamond projects with Rs.50Crores and Cement plants with Rs.3000croresMineral InformationThe department has participated in theInternational Granite Trade Fairs at Jaipur,Chennai and Bangalore, Industrialexhibitions at Hyderabad, World Mining90

Congress and Expo 2006 at Tehran andProspectors and Developers Association ofCanada Expo 2010, Toranto (PDAC),International Exhibition of Stones, Designand Technology in September-October 2010at Italy (Verona), Stone Mart 2011 atBangalure to disseminate and promote themineral potential and mineral sectoropportunities of the State. Booklets andbrochures on Minerals and opportunities inMineral sector for the entrepreneurs andpublic are brought out.Devolution of PowersThe department is also instrumental indevolution and delegation of certain powersto the Zonal Joint Directors in respect ofMineral regulation, issue of Mineral RevenueClearance Certificate, and approval ofMineral Revenue Assessment, Issue ofNotices, approval of Mining Plans andtransfer and deputation of staff for effectiveMineral administration at ground level. Thedepartment has also delegated powers toDistrict officers from the Regional Officesfor issue of way bills under Mineral DealersRules 2000 to facilitate the Mineral dealers toobtain way bills immediately from therespective district offices.Policy Initiatives: The department has taken initiative inenactment of “The A.P. Mineral BearingLands” (infrastructure) Cess Rules, 2005for collection of Cess on Mineral BearingLands for promotion of infrastructurefacilities and rapid exploitation ofMineral resources in the State. Initially,only Coal, Oil, and Natural gas, Barytes,Lime Stone, Iron Ore and Granite arebrought under the Cess Rules. The department has taken initiative andidentified 12 exclusive Mining zonesaround Hyderabad for Building stone,Metal, and Manufacture of stone sand.The Government has already declaredOne Exclusive Mining Zone atBandaraviryala over an extent of 670Acres The Government in consultation withdepartment has also transferred the sandquarrying & regulation subject fromPanchayatraj Raj & Rural DevelopmentDepartment to the Mines & GeologyDepartment for scientific, regulation andeffective realization of Mineral Revenueto the State exchequer. The departmenthas taken fresh initiative to conduct sandauctions throughout the State. The Department taken initiative toannounce the State Coal Policyfacilitating APMDC to operate CoalMines in Tribal Agency areas inconformity with APLTR and also inassociation with other PSU’s. The Department has also suggestedapportionment of some amount to theDepartment from Panchayat RajDepartment from the Seigniorage Feecollected on minor minerals for effectivevigilance and augmentation of mineralrevenue to the local bodies. The department has also taken initiativeand submitted proposals to Governmentfor collection of uniform Seigniorage feefrom the builders.* * *COMMERCE AND EXPORTPROMOTION6.5 The exports from the State have recordedRs.91,614 crores in the year 2010-11 while itwas Rs.73,143 crores in the previous year2009-10. Computer software contributesmore than 30 percent to the total exports.The other major exports from the State areEngineering items, Drugs, Pharmaceuticalsand allied Chemicals and plastics, Animal,Marine and Leather Products, Agricultureand Agro based Products, Minerals andMineral Products, Handlooms, Handicrafts,Textiles, Gems and Jewellery and imitationJewellery items, Electronics and Electricalitems.91

Value of Exports (Rs.Crs)10000090000800007000060000500004000030000200001000002001-02Value of Exports from A.P. (Rs.Crores)2002-032003-042004-052005-062006-072007-082008-092009-102010-11Item wise exports from Andhra Pradesh aregiven in Annexure 6.7.* * *INDUSTRIAL RELATIONS6.6 Industrial peace is a prerequisite for thegrowth and development of Industries. Workstoppages due to industrial disputes betweenemployers and workmen and consequentialloss of man-days in a given period would bean important indicator of labour managementin Industries. Government through itsconciliation machinery has been makingefforts to settle disputes amicably andpromote industrial peace and for congenialwork environment. Efforts are being madeby the department to promote productivitylinkedsettlement in order to make Industriesmore competitive.The number of workers involved and mandayslost due to work stoppages havedecreased this year when compared to thecorresponding period of last yearThe details industrial relations are shown inTable 6.4.Table 6.4Industrial RelationsItem20102011(up to Sep.,)Strikes 8 9Lockouts 9 7Workers Involved(No.)17,105 15,241Mandays Lost(Lakh No.)24.26 16.28Source: Labour DepartmentThe number of strikes, lockouts, workersinvolved, and man-days lost from 1981 toSeptember 2011 are shown in Annexure 6.8.* * *92