Government of Andhra Pradesh • Industries & Commerce Department
AP Industrial Development Policy 4.0
Driving Sustainable Industrial Growth, Innovation and Employment
New Andhra Pradesh Industrial Development Policy (4.0) 2024-29 — G.O. Ms. No. 68,
Industries & Commerce (P&I) Dept., dt. 26.10.2024
Policy document appended as the Annexure to that order — 10 chapters, 32 pages
Source — G.O. Ms. No. 68 (PDF) · APIIC — https://apiic.in/
Policy document appended as the Annexure to that order — 10 chapters, 32 pages
Source — G.O. Ms. No. 68 (PDF) · APIIC — https://apiic.in/
Presented by_______________
Date_______________
AudienceExecutive Review
Chapter 3 · cl. 3.1
Vision
As the policy states it
Transform Andhra Pradesh into an internationally competitive industrial hub, seamlessly integrated into the global value chains and renowned for achieving product perfection across sectors.
Motto
Reduce cost of production and improve speed of business for enterprises.
Reduce cost of production and improve speed of business for enterprises.
What that means in practice
A leading industrial destinationAndhra Pradesh has stood at No. 1 in successive DPIIT Ease of Doing Business rankings and is the only Indian state developing three industrial corridors (cl. 1.1).
Sustainable and inclusive developmentGrowth that is robust and adaptable, environmentally sustainable and socially inclusive — a green energy transition, decarbonization and circular-economy principles (cl. 1.3).
Investment across manufacturing and servicesTen sustenance sectors, ten propelling sectors and six cross-cutting sectors including IT & ITES and Hospitality & Tourism (cl. 4).
Quality employment5 lakh first-time jobs from manufacturing over the policy period, capitalising on the demographic dividend (cl. 3.2.4, 3.3).
Global competitivenessIntegration into global value chains, port-based value addition, and support for globally recognised quality certifications (cl. 3.2).
Gateway to the EastA strategic entry point for businesses accessing eastern markets — three ports with drafts over 18 m and 15% of India's port handling capacity (cl. 3.2.8).
975 km of coastline is the bedrock: Visakhapatnam, Kakinada and Krishnapatnam serve as gateways for
exports and imports, integrating India's hinterland into global trade networks (cl. 1.1).
Chapter 3 · cl. 3.2
Key Objectives
The policy's ten guiding principles group into the six objectives below. Each principle is named as the policy names it, with the clause that carries it.
Accelerate industrialization
Create a globally attractive manufacturing destination — a competitive ecosystem for sustainable
manufacturing, without compromising climate goals (cl. 3.2.1).
Attract domestic and foreign investment
A conducive, business-friendly and climate-responsible environment; targeted outreach and high-level
delegations to Fortune 500 companies (cl. 3.2.3).
Promote MSMEs and entrepreneurs
A dedicated MSME and Entrepreneur Development Policy, 175+ MSME parks and an eight-dimensional
support approach including incubation and mentoring (cl. 7).
Develop industrial infrastructure
Land consolidation in nodes along the corridors, quality power, water and road infrastructure in
parks, and private participation in development and O&M (cl. 5.1, 5.2).
Encourage innovation and technology
AI, IoT and Industry 4.0 — research, workforce training, ethical use of AI in manufacturing and
simplified compliance with industry standards (cl. 3.2.6).
Foster balanced regional development
Balanced, resilient and sustainable growth; interlinking of rivers for inland water transport;
at least one MSME park per constituency (cl. 1.3, 3.2.7, 7).
The remaining guiding principles
Product Perfect Value CreationBuild marquee global Indian brands; support for quality certification (cl. 3.2.2).
Green Energy TransitionIntegrate renewable verticals; Recycle, Reuse, Reduce (cl. 3.2.5).
Port based value additionClusters near ports for products with export potential (cl. 3.2.8).
End-to-end domestic value creationValue addition instead of bulk raw-material export (cl. 3.2.10).
Chapter 4
Priority Sectors
The policy sorts sectors into two groups. Sustenance sectors already have an established ecosystem in the state; propelling sectors are gaining traction globally and are the link to the global supply chain. Six cross-cutting sectors sit across both.
Sustenance sectors (10) — existing ecosystem
Food Processing
Pharma & Life Sciences
Textiles, Apparels & Footwear
Automobile
Chemicals & Petrochemicals
Engineering
Medical Devices
Blue Economy
Metals & Alloys
Furniture
Cross-cutting sectors (6)
Industrial Parks
Logistics
MSME
IT & ITES
Hospitality & Tourism
Energy
Propelling sectors (10) — ecosystem to be developed
Semiconductors & Electronics
Electric Vehicles & Battery
Green & Renewable Energy
Aerospace, Defence & Drones
Ports & Logistics
Biotechnology
Toys
Ship Building
Specialty Steel
MRO
Where realised investment has gone
cl. 1.2.1 — the policy names seven sectors summing to 82%; the balance is shown as other sectors so each bar reads as a share of the whole
Chapter 2 · cl. 2.2
Industries Covered
The policy applies to (a) new and existing enterprises investing in and establishing new units, and (b) existing enterprises investing in the expansion of units — across the entire State.
Micro Enterprises
Small-scale manufacturing and services. Support runs through the dedicated MSME and Entrepreneur
Development Policy the state will introduce, not through the investment bands below (cl. 7).
Small Enterprises
Growing businesses with moderate investments — addressed through MSME facilitation, cluster
infrastructure and the INR 500 Crore corpus (cl. 7).
Medium Enterprises
Expanding industries with higher employment potential. Where FCI crosses INR 51 Crores, the
Sub Large band of Chapter 8 applies.
Large Industries
Major industrial investments — Sub Large (51–500 Cr) and Large (501–1,000 Cr) bands, with
standard investment periods of 2 and 3 years.
Mega Projects
Strategic investments with significant economic impact — Mega (1,001–5,000 Cr) and Ultra
Mega (5,001 Cr and above), with tailor-made benefits negotiated case by case.
The condition every enterprise must meet
The enterprise must obtain Consent for Operation (CFO) and commence commercial production during
the operative period of the policy — unless otherwise exempted through a G.O. — to be eligible to claim
incentives (cl. 2.2.1).
Transition from IDP 2023-27 (cl. 2.2.2)
Mar 2023IDP 2023-27G.O. Ms. No. 22, dt. 19.03.2023
Oct 2024IDP 4.0 issuedG.O. Ms. No. 68, dt. 26.10.2024
On notificationIDP 2023-27 substitutedThis policy substitutes it from the date of notification
TransitionExisting beneficiaries protectedEnterprises availing benefits under IDP 2023-27 continue till the end of its operative period
Chapter 8
Investment Categories
| # | Category | Fixed Capital Investment | Standard investment period |
|---|---|---|---|
| 1 | Sub Large Projects | INR 51 to 500 Crores | 2 years |
| 2 | Large Projects | INR 501 to 1,000 Crores | 3 years |
| 3 | Mega Projects | INR 1,001 to 5,000 Crores | 3 years |
| 4 | Ultra Mega Projects | INR 5,001 Crores and above | 4 years |
| — | Micro, Small & Medium | As per MSME norms | Dedicated MSME policy to be notified |
The standard investment period runs from Consent for Establishment (CFE). For projects delayed
beyond the committed completion date, the incentive is reduced by 0.5% for each month of delay in the
date of commercial production from the date committed in the application.
Investment subsidy ceiling by band
cl. 8.1.3, 8.2.3, 8.3.1 — capital subsidy as % of FCI, subject to installation of committed plant capacity
How the capital subsidy is earned and paid
Sub Large — 12%12% of FCI for projects achieving DCP within the standard investment period. Disbursed in 5 equal annual instalments from the DCP.
Large — 12% in two steps6% of FCI at 50% of committed plant capacity and 6% at 100%. Disbursed in 7 equal annual instalments.
Mega & Ultra Mega — 15% in three steps5% at 50% of committed capacity, 5% at 75% and 5% at 100%. Disbursed in 10 equal annual instalments; new and expansion projects.
Inclusion top-upAn additional 5% of FCI for enterprises wholly owned by women / BC / SC / ST / specially-abled investors domiciled in Andhra Pradesh (cl. 8.1.3, Sub Large).
Two overall constraints. The total incentive a company can claim — combining packages under this policy or
any subsequent sectoral policy — shall not exceed 100% of FCI. For Mega and above the Government extends
tailor-made benefits case by case, and is working towards an ESCROW account-based disbursement
mechanism. Finance separately advised capping cash outgo at 75% of FCI for the Early Bird category.
Chapter 8 · cl. 8.1 – 8.4
Fiscal Incentives
Capital Investment Subsidy12% of FCI for Sub Large and Large, 15% for Mega and Ultra Mega, against installed committed capacity (cl. 8.1.3, 8.2.3, 8.3.1).
Power Cost ReimbursementFixed power cost reimbursement at INR 1 per unit for 2 years from the date of commencement of commercial production (cl. 8.1.7).
Net SGST Reimbursement100% of net SGST payable on final products manufactured, sold and registered in the State, for 5 years from commercial production (cl. 8.1.8, 8.2.6).
Stamp Duty Reimbursement100% of stamp duty and transfer duty on purchase of industrial land, and on lease, mortgage and hypothecation — reimbursed once per parcel (cl. 8.4.2).
Land Conversion Charges100% of the fee charged for land conversion is reimbursed (cl. 8.4.3).
Top-up on PLI / GoI schemes10% of the incentive sanctioned by GoI, capped at 5% of FCI in the state, in 5 equal annual instalments — available in every band (cl. 8.1.4).
Local Procurement Subsidy1% of annual export turnover for exporting units in select sectors, claimable annually for 3 years (cl. 8.1.6).
Revival of sick unitsGovernment investigates sick enterprises and, case by case, extends support and takes measures for revival (cl. 8.4.4).
De-carbonization subsidy
cl. 8.4.1 — on plant & machinery for de-carbonization intervention, as % of eligible project cost. Capped at 6% of FCI in every band; for projects built for captive use
Incentives not specified in this G.O.
Three incentives commonly expected in a state industrial policy are not part of Chapter 8 of G.O. Ms. No. 68. They are listed here so the gap is visible rather than assumed:
- Interest subsidy — not among the incentives notified in this policy. confirm with DoI
- Registration fee reimbursement — the G.O. reimburses stamp duty and transfer duty; registration fee is not named. confirm with DoI
- Land cost incentives — land pricing sits with APIIC's allotment regulations and the Private Industrial Parks policy, not with this G.O. separate instrument
All incentives are extended as per the operational guidelines to be notified separately (cl. 10.3) —
so eligibility can be read from this policy, but the claim procedure cannot.
Chapter 5 · cl. 5.1 & 5.2
Industrial Land
0ac
In 20 existing clusters
cl. 5.1 — industrial land available today
0lakh ac
Identified in new clusters
cl. 5.1 — 54,781 ac port-based · 75,683 ac hinterland
0ac
Already in state possession
cl. 5.1 — of the total land identified
0
Industrial parks today
cl. 1.2.3 — providing ready industrial land
What a park is expected to provide
Internal access roads
Power infrastructure
Water distribution
Water recycling facilities
Sewage & drainage lines
Effluent treatment & disposal
Communication facilities
Plug-and-play infrastructureUnder the separate Private Industrial Parks 'Plug and Play' Policy (4.0) 2024-29
Industrial housingDormitories with amenities, offered on rental basis (cl. 5.5)
The list above is the infrastructure Model I developers are required to build (cl. 5.2.1) — the policy's own definition of a developed industrial park.
Three development models — and APIIC's role
| Model | Land | What comes back to APIIC |
|---|---|---|
| Model I | Complete private land | Developer acquires and develops the park with the full infrastructure set |
| Model II | Majority private, part Govt / APIIC | Proportionate share of developed plots to the Nodal Agency / APIIC |
| Model III | Complete Govt / APIIC land | Developer selected by competitive bidding; Joint Venture Agreement for development, O&M and marketing; proportionate developed plots allotted to APIIC |
Allotment itself is governed by APIIC's Land Allotment Regulations 2023, not by this G.O. —
see the Land Allotment Regulations deck and the
live Land Bank position.
Two cluster counts appear in the same chapter. The summary panel of cl. 5 reads "adding 29 new clusters
covering 1.32 lakh acres to existing 20 clusters", while cl. 5.1 states the state "has further identified
30 clusters covering land extent 1.3 Lakh acres". Both are reproduced as printed.
confirm with DoI
Chapter 1 & 5 · cl. 1.2.3 – 1.2.4, 5.3
Infrastructure
Industrial Parks
211 parks providing ready industrial land today, and a target of 175+ new parks in PPP
over the policy period.
Sector-specific clusters
20 existing clusters over 14,093 acres, and 30 identified clusters over 1.3 lakh acres —
54,781 acres port-based and 75,683 acres hinterland.
Logistics parks & warehousing
Sector-specific giga-size fulfilment centres operated by large shipping and logistics players,
holding raw-material inventory so material is available to industry on demand (cl. 5.3.1).
Industrial corridors
VCIC Visakhapatnam–Chennai, CBIC Chennai–Bengaluru and HBIC Hyderabad–Bengaluru —
the only Indian state developing three.
Ports, waterways & freight
1 major and 5 non-major ports; 7 airports; National Waterway 4 through Kakinada, Eluru and the
Buckingham canal; two dedicated freight corridors — Vijayawada–Itarsi and Vijayawada–Kharagpur.
Common Facility Centres
9 CFCs and 32 Infrastructure Development projects under implementation for MSME clusters,
dovetailing with Government of India schemes (cl. 1.2.2).
Power
Power surplus state20 GW installed generation capacity, over 39% renewable in FY 23; total energy consumption 72,400 MU (cl. 1.2.4).
40 GW renewable by 2030The state is targeting 40 GW from renewable sources, with the policy addressing financing, land consolidation and R&D (cl. 3.2.5).
Why external infrastructure is being opened to private players
Provision of road, water and power connections to the doorstep of industrial parks is critical for
investors to start or scale. Because external factors and institutional delays hit the financial viability
of investor projects, the government invites private sector participation to fast-track those
projects and complete them within time and budget (cl. 5.2).
Chapter 8 & 5 · cl. 8.1.5, 5.5
Employment Promotion
Employment creation subsidy
cl. 8.1.5 / 8.2.5 / 8.3.3 — by direct employment to investment (E/I) ratio. Direct employment includes full-time and contract employees on the company's payroll
How long it is paid
| Band | Equal annual instalments from DCP |
|---|---|
| Sub Large | 5 years |
| Large | 7 years |
| Mega | 9 years |
| Ultra Mega | 10 years |
EPF is the evidence, not the incentive. Payment is subject to cumulative employment on payrolls,
evidenced by new EPF accounts created by the employer and shown during the disbursement period. The
G.O. does not notify an EPF reimbursement.
confirm with DoI
Skilling, inclusion and training
Women and social inclusionAn additional 5% of FCI capital subsidy for enterprises wholly owned by women / BC / SC / ST / specially-abled investors domiciled in Andhra Pradesh (cl. 8.1.3).
Skill CensusRolled out with industry associations to collect data on workforce skill sets, assess existing skills, identify gaps and map them against current and future industry needs (cl. 5.5).
Industry adoption of ITIsPPP model-based operation of ITIs, open for adoption by nearby industry or industry associations, to train students on specific skills and improve employability (cl. 5.5).
Industrial housingLand parcels ear-marked for dormitories with supporting amenities, facilitated with line departments and offered to industry on a rental basis (cl. 5.5).
The talent base: 250+ engineering colleges, 500+ ITIs and 250+ polytechnics; 75% of students choose
science streams after class 10 against a national average of 42%; literacy around 67% and labour force
participation 55% (cl. 1.2.5, 3.2.4). Apprenticeship support and training partnerships as separate schemes are
not notified in this G.O. confirm with DoI
Chapter 7
MSME Benefits
0lakh
Registered MSME units
cl. 7 — as of February 2024
0lakh
People employed
cl. 7 — as of July 2024
0+
MSME parks
cl. 7 — at least one park per constituency
0cr
Dedicated corpus
cl. 7 — CGTMSE, technology transfer, revival of sick units, R&D
The eight-dimensional approach
01MSME Facilitation
simplified approvals
simplified approvals
02Incubation / Mentoring
03Unit level competitiveness
technology upgradation
technology upgradation
04Access to Finance
financial assistance
financial assistance
05Sustainability & Circularity
06Import Substitution / Export Promotion
07Cluster Infra Development
08Special assistance for Inclusion
MSMEs generate nearly 10 jobs for every INR 1 Crore of investment and account for 23.5% of GDP and 28.3% of exports. 79% are in services and 97% are micro (cl. 1.2.2).
A dedicated MSME policy
To provide focused support for MSMEs and new entrepreneurs — particularly in manufacturing — the state will introduce a dedicated MSME and Entrepreneur Development Policy, designed specifically to address the sector's needs.
Where the parks come from
Incentives and models for the 175+ MSME parks are detailed in the Andhra Pradesh Policy for establishment of Private Industrial Parks with 'Plug and Play' Industrial Infrastructure (4.0) 2024-29.
Marketing support is not a named intervention in this G.O. confirm with DoI
Incentives and models for the 175+ MSME parks are detailed in the Andhra Pradesh Policy for establishment of Private Industrial Parks with 'Plug and Play' Industrial Infrastructure (4.0) 2024-29.
Marketing support is not a named intervention in this G.O. confirm with DoI
Two MSME counts appear in the same document. Chapter 1 records 9 lakh registered MSMEs as of
February 2024 — 3.23% of India's formalised MSMEs, against 34 lakh estimated by NSS 2015-16 (cl. 1.2.2).
Chapter 7 records 7.41 lakh registered units as of the same month. Both are reproduced with their
clause rather than reconciled. confirm with DoI
Chapter 3 & 7 · cl. 3.2.6, 3.2.5, 7
Innovation Ecosystem
Industry 4.0 rests on two pillars — IoT and Artificial Intelligence. Their convergence lets manufacturers use data from IoT devices to make informed decisions and optimise operations. The state's role is to build the environment around that.
Research & workforce training
A conducive environment for research, workforce training and bridging skill gaps, addressing
ethical issues in the responsible use of AI in manufacturing and simplifying compliance with regulations
and industry standards (cl. 3.2.6).
Incubation and mentoring
Dimension 02 of the eight-dimensional MSME approach is incubation and mentoring — the policy's
route for new entrepreneurs entering the global marketplace (cl. 7).
Circular economy R&D
Support for research and development in circular economy technologies and practices, encouraging
collaboration between the public sector, private companies and academic institutions (cl. 3.2.5).
Technology transfer
Named as a use of the INR 500 Crore corpus, alongside CGTMSE, revival of sick units and R&D
(cl. 7).
Emerging tech adoption
Embrace and promote blockchain, IoT and 5G to drive innovation and economic growth —
"riding the emerging tech wave" (cl. 1.3).
Research collaboration base
3 central universities, 20 central autonomous institutions, 25 state universities and institutions
including AIIMS Mangalagiri, IIM Visakhapatnam, IIT Tirupati, IIPE Visakhapatnam and NID
Vijayawada (cl. 1.2.5).
A dedicated startup scheme and innovation grants are not notified in G.O. Ms. No. 68. The policy's
instruments for new entrepreneurs are the eight-dimensional MSME approach, the INR 500 Crore corpus and the
forthcoming MSME and Entrepreneur Development Policy. confirm with DoI
Chapter 3 & 8 · cl. 3.2.5, 8.4.1
Sustainability
De-carbonization subsidy
cl. 8.4.1 — capital subsidy on plant & machinery for de-carbonization intervention, as % of eligible project cost; total capped at 6% of FCI, for projects built for captive use
What the subsidy is for
To encourage circular economy, clean production, waste reduction, resource efficiency, green energy and safety measures, government incentivises responsible investors with a de-carbonization subsidy on investment in plant and machinery. Units are encouraged to invest in energy, water efficient or pollution- and waste-minimising machinery to avail it (cl. 8.1.7).
Renewable energy adoptionSolar, wind, hydro and biomass; pumped storage. The state targets 40 GW from renewables by 2030, from 20 GW installed capacity with 39%+ renewable in FY 23.
Recycle, Reuse, ReduceThe policy promotes the RRR principles and supports R&D in circular-economy technologies and practices (cl. 3.2.5).
Low-carbon transitionEnergy-efficient equipment, low-carbon fuels, carbon capture methodologies and circularity principles (cl. 1.3).
Recognised on energyAmong India's top 7 states for energy efficiency (BEE State Energy Efficiency Index 2023) and 1st in affordable energy in NITI Aayog's SDG report 2023-24.
Water and waste at park level. The infrastructure a developed park must carry includes water
distribution and water recycling facilities, sewage and drainage lines, and effluent treatment and disposal
facilities (cl. 5.2.1) — the policy's operative commitment on water conservation and waste management.
Chapter 6
Single Window System
01 · Single Window 2.0
Eliminate multiple single desks of multiple departments; more services and more departments on one
portal.
02 · Facilitation Cell — EDB 2.0
Dedicated liaison officers assisting in follow-up and tracking of approval status, to bring down
pendency delays.
03 · Assistance to foreign investors
Country-specific desks providing bespoke facilitation, handholding with local information and
expertise, and a comprehensive business-opportunity portal.
04 · Integrated Data Management
Streamlined, integrated tracking for quick decision making and resolution, with SLA-based
enforcement; tracks district output and integrates with Gatishakti.
05 · Re-engineering regulation
Increase renewal frequency of licences and allow self-certification without compromising
safety requirements.
What is already running (cl. 6.1 – 6.2)
Single Desk Portal, since June 2015Helps industries obtain more than 93 regulatory clearances required to set up and operate a business in 21 days.
19 departments, one portalEnd-to-end transaction processing with online payment and application status tracking — pre-establishment approvals, pre-operation approvals and renewals.
Investment facilitation cellEach investor assisted by a liaison officer who follows up with line departments and keeps the investor updated on progress and pending pre-requisites.
Industry feedback forumA forum of industry associations, subject matter experts and government to receive feedback at regular intervals and drive systemic re-engineering (cl. 6.5).
Three approval categories (cl. 6.4)
| Category | How approval works |
|---|---|
| Category 1 | Granted on the basis of self-certification, on payment of fee and application submission |
| Category 2 | In-principle approval on self-certification at submission; final approval granted post inspection |
| Category 3 | Applicant submits the application; the service is deemed approved if post-inspection approval is not received within the defined SLA |
All of it is to be carefully and cautiously re-engineered such that industrial safety is not
compromised (cl. 6.4).
Chapters 6, 8 & 10
Workflow
The seven stages below are assembled from what the policy actually states. Where the policy leaves the procedure to the operational guidelines to be notified separately (cl. 10.3), that is marked rather than filled in.
1 · Online registrationRegister on the AP Single Desk Portal, running since June 2015 and covering 19 departments
cl. 6.1
2 · Application submissionEnd-to-end transaction processing with online payment and application status tracking — pre-establishment approvals, pre-operation approvals and renewals
cl. 6.1
3 · Document verificationCategory 1 clears on self-certification; Category 2 gives in-principle approval on self-certification at submission
cl. 6.4
4 · Department reviewA dedicated liaison officer follows up with line departments and keeps the investor updated on progress and pending pre-requisites
cl. 6.2
5 · Approval93+ clearances in 21 days. Category 3 services are deemed approved if post-inspection approval is not received within the defined SLA. CFE starts the standard investment period; CFO and commercial production must fall inside the policy period
cl. 6.1 · 6.4 · 2.2.1
6 · Incentive sanctionClaims arise from the date of commercial production, disbursed in equal annual instalments per band. The procedure for availing each incentive is in the operational guidelines, issued separately guidelines pending
cl. 10.3
7 · MonitoringSIPC reviews single-desk performance, project grounding and implementation of all large and mega ongoing projects every month; disbursement is tied to installed capacity and EPF-evidenced employment
cl. 10.2
Chapter 10
Governance
State Investment Promotion Board
Chief Minister as Chairman, Chief Secretary as Member Convener. Meets once a month for
final decisions on investments and promotion activities, and to approve Mega projects (cl. 10.1).
State Investment Promotion Committee
Chaired by the Chief Secretary, convened by the Commissioner Industries. Meets every month
to monitor and review six standing items (cl. 10.2).
APIIC
The VC & MD, APIIC is a member of the SIPC — and APIIC is the land and parks counterparty in
two of the three private-park development models.
Districts & line departments
The G.O. is circulated to all District Collectors and all General Managers, District
Industries Centres through the Director of Industries, and to the line departments listed on it.
What the SIPC reviews every month
- Performance of the single desk system
- Policy issues relating to investment facilitation and project grounding
- Implementation of all large and mega ongoing projects
- Screening of all mega project proposals
- Scrutiny of issues or proposals meriting consideration of the SIPB
- Any other issue governing the industrial environment proposed by the Commissioner Industries
On a case-to-case basis the SIPC advises the SIPB on changes, amendments and recommendations for
tailor-made incentives — but the final decision to approve any change rests with the SIPB.
Members of the SIPC
Secretary, Industries
Secretary, Finance
Secretary, Environment, Forest, Science & Technology
Secretary, Revenue (LA)
Secretary, Revenue (CT)
Secretary, Employment & Labour
Member Secretary, Pollution Control Board
Secretary, Energy & Infrastructure
Secretary, MAUD
VC & MD, APIIC
Secretary, Panchayati Raj
Commissioner, Industries (Convener)
Any other Secretary or Head of Department may be included on a case-to-case basis.
Chapter 3 & 9 · cl. 3.3, 9
Policy Impact
0lakh cr
Investments attracted
~15%, or INR 5 lakh cr, operationalised in the period
0lakh
First-time employment
from the manufacturing sector
0USD bn
Exports
15% y-o-y · double from USD 20 bn in FY 24
0lakh cr
Manufacturing GVA
from INR 3.4 lakh cr in FY 24 (AE)
0+
Industrial parks developed
targeted for development in PPP · balanced regional growth
0USD bn
FDI inflow (minimum)
INR 83,000 cr · against USD 0.8 bn in the last 5 years
Doubling the export base
Figure 1 of the policy · top merchandise export products, USD Billion, source DGCIS (2014-24). The target is to double total exports to USD 40 Bn
Special package for the Early Bird scheme (cl. 9)
Category I — 30% of FCIThe first 200 projects meeting eligibility conditions and receiving CFE within 18 months of notification.
Category II — 40% of FCIInvestments in sectors or sub-sectors identified by GoI under any PLI scheme; CFE requirement relaxed to 24 months.
- Not combinable — Category II beneficiaries cannot avail Category I.
- It overrides the incentive subsidy of the respective band, for all four bands.
- DCP still binds — within the standard investment period, counted from notification.
- Mega and above negotiate a competitive tailored package; new and expansion projects both qualify.
Read the currency conversions as the policy prints them. The FDI target appears as USD 10 Billion
(INR 83,000 Crores) and the export target as USD 40 Billion (INR 33,200 Crores) — two different implied
exchange rates, because the export figure is carried forward from the FY 24 base of USD 20 Billion
(INR 16,600 Crores). as printed in cl. 3.3
AP Industrial Development Policy 4.0
Key Highlights
Investment FriendlyFour investment bands from INR 51 Crores upward, capital subsidy of 12–15% of FCI, and an Early Bird package of 30–40% of FCI for the first movers.
Industry Ready Infrastructure211 parks today and 175+ targeted; 30 clusters over 1.3 lakh acres identified, 44,777 acres already in state possession; three national corridors.
Digital GovernanceSingle Window 2.0 on top of a Single Desk Portal clearing 93+ approvals in 21 days across 19 departments, with SLA-based tracking and Gatishakti integration.
Fiscal IncentivesInvestment subsidy, PLI top-up, employment, de-carbonization, net SGST, power cost, local procurement, stamp duty and land conversion — capped at 100% of FCI in total.
Employment Generation5 lakh first-time manufacturing jobs; employment subsidy of 8–10% of FCI by E/I ratio, evidenced by new EPF accounts; +5% for women, BC, SC, ST and specially-abled owners.
Sustainable GrowthDe-carbonization subsidy up to 35% of eligible project cost (capped at 6% of FCI), 40 GW renewable target by 2030, and RRR circular-economy principles.
Innovation DrivenAI, IoT and Industry 4.0 as guiding principles; circular-economy R&D; incubation and mentoring, technology transfer and an INR 500 Crore MSME corpus.
MSME Backbone7.41 lakh registered units employing 61.98 lakh people; 175+ MSME parks, at least one per constituency; a dedicated MSME and Entrepreneur Development Policy to follow.
What is still to come
- Operating guidelines — definitions and the procedure for availing each incentive, issued separately (cl. 10.3).
- The MSME and Entrepreneur Development Policy and the Private Industrial Parks 'Plug and Play' Policy (4.0) 2024-29.
- The select sectors for the local procurement subsidy.
- The notification date, which starts every clock in the policy — the 18/24-month CFE windows, the substitution of IDP 2023-27 and the five-year period.
Read next
The policy sets the target; the land position is live.
Policies library — every instrument APIIC publishes, with its date
Search available plots — the current Land Bank position
G.O. Ms. No. 68 (PDF) — the source for every figure in this deck
Search available plots — the current Land Bank position
G.O. Ms. No. 68 (PDF) — the source for every figure in this deck
Thank You
Andhra Pradesh Industrial Development · Invest • Innovate • Grow
Investment friendly — four bands, 12–15% of FCI
Industry ready — 175+ parks, three corridors
Digital governance — 93+ approvals in 21 days
Employment generation — 5 lakh first-time jobs
Sustainable growth — de-carbonization subsidy
Innovation driven — AI, IoT and Industry 4.0
Government of Andhra Pradesh · Industries & Commerce Department
Andhra Pradesh Industrial Infrastructure Corporation Ltd.
APIIC Towers, Plot No. 1 (9th–11th floors), IT Park, Mangalagiri, Guntur District 522503
https://apiic.in/
Andhra Pradesh Industrial Infrastructure Corporation Ltd.
APIIC Towers, Plot No. 1 (9th–11th floors), IT Park, Mangalagiri, Guntur District 522503
https://apiic.in/
QR placeholder — encode apiic.in