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57




6. INDUSTRIES


6.1

Department of Industries was established
in 1960 with the prime objective of
promoting Cottage and Small Scale
Industries, Industrial Co
-
operatives,
Industrial Estates, Block
-
level training
-
cum
-
production centers and to organize
credit
to artisans. The Department entered
into technical and promotional activities
with the establishment of District
Industries Centers in 1978 and providing
necessary assistance and service for
establishment of Industries. The
Department already promoted seve
ral Self
Employment Schemes for educated
unemployed youth in close coordination
with other Government agencies like
DRDA, Youth Services, STEP societies,
SC/ST/BC/Minorities/Women’s Finance
Corporations etc. duly rendering
necessary technical guidance.

De
partment of Industries is now
concentrating on attracting investments
into the state. The basic objectives are:



Explore available resources in the state,



Provide conducive industrial
environment,



Increase employability by promoting
labour intensive indus
tries,



Improve export performance by providing
market inputs to exporters.

The Department is presently focusing on
key sectors like Pharmaceuticals,
Biotechnol
ogy, Food Processing,
Chemicals, Marine, Leather, Textiles,
Information Technology &
Communications, Hi
-
tech manufacturing
to accelerate industrial growth in the state,
creating world class infrastructure
facilities.

The primary objective of the

District

Industries Centres

is to provide all the
services under one roof to the
entrepreneur. They serve as the nodal
agency in the Districts for the orderly
development of the Industries. The
District Industries Centres have been
entrusted with the responsibilit
y of
providing all approvals/clearances needed
for setting up of an Industry, besides
maintaining effective liaison with various
financial institutions, in arranging required
credit facilities. District Industries Centers
are also the implementing agencies

for the
“Prime Ministers Rozgar Yojana”
programme for the educated unemployed
youth.

Single Window Clearances:

Government enacted “Industrial Single
Window Clearances Act”, which is
effective from 22.6.2002 for speedy
processing and issue of various
appro
vals/clearances/permissions required
for setting up of an Industrial undertaking
and also to ensure creating an investment
friendly environment. Under the Act,
Statutory time limits have been fixed for
various departments and the concept of
deemed approval
s have been introduced.
As on 30.11.2006, 34,984 clearances in
respect of 20,458 units (Small Scale, Large
& Medium Scale Industries) have been
issued under Single window with an
estimated investment of Rs. 71,729.86
Crores for creating employment to 4,35,
730
persons.

Large and Medium Industries:

Since liberalization during August 1991, so
far up to 30.11.2006; 6,164 new proposals
with an investment of Rs.2,22,369 Crores
and an employment potential of 9,30,882
were received. Out of these, 2,435
proposals (U
nits) with an investment of
Rs.29,974 Crores, providing employment to
3,60,067 persons, have already gone into
Table 6.1

Large and Medium Industries Since August
1991

Status

Units

(No.)

Investment
(Rs. Crores)

Employment
(No.)

Gone into
Production

2,435

29,974

3,60,067

Under
Implementation

558

53,239

1,42,655

Initial Stages

1,480

52,906

1,
69,597

Dropped

1,691

86,250

2,58,563

Total

6,164

2,22,369

9,30,882

Source: Industries Department




58



production. Status of implementation as
on 30.11.2006 is given in Table 6.1

During 2005
-
06, 446 new proposals
involving an investment of Rs. 8,80
2
Crores, to provide employment to 48,261
persons were received. During 2006
-
07,
267 new proposals involving an
investment of Rs.21,648 Crores to
provide employment to 78,744 persons
were received in the state up to
30.11.2006. Out of these, 43 proposals
w
ith an investment of Rs.1,103 Crores,
creating employment to 5,165 persons
have gone into production and another
558 proposals with an investment of
Rs.53,239 Crores for providing
employment to 1,42,655 persons are
under implementation. Average annual
grow
th of units and employment in
different decades are shown in Table 6.2.

Table 6.2

Average Annual Growth Rates

of

Large and Medium Industries

Period

Proposals/
Units

Employment

1961
-
62 to 1970
-
71

36.53

422.48

1971
-
72 to 1980
-
81

19.49

60.96

1981
-
82 to
1990
-
91

13.58

110.43

1991
-
92 to 2000
-
01

14.94

0.33

2001
-
02 to 2005
-
06

12.12

34.35

1957
-
58 to 2005
-
06

18.83

126.73

Details of proposals, investment and
employment from 1956
-
57 to 2006
-
07
(Up to 30.11.2006) are shown in
Annexure 6.1.

Mega Projects:

Proje
ct Cost with more than Rs. 100
Crores are called as Mega Projects. 56
Mega project proposals with an
investment of Rs.36,061 Crores have gone
into production. 23 Mega Projects with an
investment of Rs.36,559 Crores are under
active implementation and 23 Me
ga
Projects with an investment of Rs.38,182
Crores are under initial stages of
implementation.

Foreign Direct Investment (FDI):

The state received 1,060 proposals with a
foreign equity of Rs.16,893 Crores as on
31.8.2006. Out of this, 310 proposals
were g
rounded with a foreign equity of
Rs.4,231 Crores. Year
-
wise details are
shown in Table 6.3.

Table 6.3

Foreign Direct Investment



Year

Proposals
Received

Gone into
Production

Units
(No.)

Frgn
Equity
(Rs
Crs.)

Units
(No.)

Frgn
Equity
(Rs
Crs.)

1991

7

3

-

-

1992

21

140

1

0.31

1993

54

560

9

45

1994

82

1,044

11

28

1995

85

889

25

77

1996

68

2,363

16

57

1997

51

2,438

36

725

1998

32

2,740

17

243

1999

65

139

14

188

2000

60

619

20

1,013

2001

176

631

119

329

2002

133

1,601

27

1,371

2003

87

236

11

33

2004

79

2,949

3

115

2005

54

415

1

7

2006

(Up to Aug.
2006)

6

126

-

-

Total

1,060

16,893

310

4,231

From May 2004 onwards ADR/GDR are excluded.

Source: Industries Department

As per the statistics published by the
Secretariat for Industrial Assistance,
Govt.
of India, Andhra Pradesh stood in 4
th

place
among the states in attracting Foreign
Direct Investment as on July 2006.

Tiny and SSI Units

State Government unveiled a policy best
suited for Small Enterprises with the
objective to achieve 15% annual g
rowth,
increase employment generation, create
congenial and hassle
-
free environment,
help the SSI sector to acquire new
technologies and skills, improve the export
performance, promote linkage between the
Large and Small Scale Sector and to
promote an appr
opriate institutional
mechanism to revive sick industries.

As on 30.11.2006, 838 Tiny & SSI units are
established providing employment to
10,511 persons involving an investment of
Rs. 232.60 Crores during 2006
-
07.




59



Average annual growth rates achieved in
Sm
all Scale units from 1976
-
77 to 2005
-
06 are shown in Table 6.4.


Details of Small Scale Industrial units,
investment and employment are shown in
Annexure 6.2.

Prime Minister Rozgar Yojana:

Prime Minister’s Rozgar Yojana, is being
imp
lemented since 1993
-
94, under which
financial assistance will be provided to
educated unemployed youth for taking up
self
-
employment through Industry,
Service and Business ventures. Govt. of
India provide funds for implementation of
this program. Since 199
3
-
94, as on
30.11.2006, a total of 2,44,306 units have
been grounded by providing financial
assistance of Rs. 1,371.83 Crores creating
an employment to 4,71,931 persons.

During 2006
-
07, as on 30.11.2006, 2,723
units were grounded against the target of
43,0
00 providing financial assistance of
Rs.14.59 Crores duly generating
employment for 4,167 persons. Details are
shown in Annexure 6.3.

Rehabilitation of sick SSI units:

State Government issued a new revised
scheme i.e.,
"A.P. Small Scale Sick
Industries Rev
ival & Rehabilitation
Scheme
-
2006 (APSSSIRRS)"

for revival
of sick enterprises to cover rehabilitation
of potentially viable enterprises and to
prevent incipient sickness.

State Government also decided to set up
"A.P. Small Scale Sick Industries Reviv
al
and Rehabilitation Fund" for the purpose
of partially compensating the sacrifices
made by the Financing Institutions, Banks,

etc. and to earmark fund in the Budget
for rehabilitating the sick Small Scale
Industries.

The following relie
f and concessions are
available:

i. Relaxation from ULC Act:

-

Grant of permission to mortgage surplus
land by exempting under section 20 of the
Urban Land Ceiling (ULC) Act in favour
of Banks/Financial institutions, as
proposed in the Industrial Investmen
t
Promotion Policy 2005
-
2010.

ii. Healthy Industrial Relation:


Labour Department would take pro
-
active
action for amicable settlement of disputes
between management and representatives
of labour so as to ensure success of the
rehabilitation package with t
he
cooperation of the workers.

iii. Interest rebate to Banks/Financial
Institutions:


The backbone of the new revised policy is
to encourage the Banks/Financial
institutions for servicing the sick units
and provide a rehabilitation package for
their quick
revival to join the main
stream. 6% interest subsidy will be
provided to all identified
/eligible sick
units, subject to maximum of Rs.2.00 Lakhs
per year for a maximum period of three
years. However, the component of the
interest to be reimbursed shall be
projected
by the financing bank to the State Level
Committee after following the guidelines.
Once the State Level Committee accepts the
proposal, the Commissioner of Industries
shall draw the eligible interest subsidy on
annual basis and reimburse to the f
inancing
bank.

iv. Deferment of Commercial Tax (CT)
Arrears:


Arrears of payment of purchase tax, sales
tax and interest towards non
-
payment of
sales tax shall be deferred for 3 years
from the date of grant of revival package.
The amount so deferred will b
e recovered
in six equal half
-
yearly instalments
effective after three years tax holiday.



Table 6.4

Average Annual Growth Rates of

Small Scale Industrial Units (Registered)

Period

Proposals/
Units

Employ
-
ment

1977
-
78 to 1980
-
81

15.39

15.39

1981
-
82 to 1990
-
91

8.77

5.24

1991
-
92
to 2000
-
01

-
9.66

-
4.39

2001
-
02 to 2005
-
06

-
9.01

-
6.44

1977
-
78 to 2005
-
06

0.26

1.31




60



v. Relief in Energy Charges:

a)
If the sick industrial unit under
consideration has to pay arrears of Current
Consumption (CC) charges, it is given the
choice eithe
r to pay the entire arrears of CC
Charges up to date of disconnection with
interest and

4 months minimum charges
during closure period

without interest +
Contracted Maximum Demand (CMD)
charges in one lump sum for new
connection, the percentage of interest

charged by APTRANSCO/DISCOM on the
arrears of CC charges will be subsidized to
the extent of 15% of interest charged from
out of the percentage of the total interest
charges and the same will be paid to
APTRANSCO subject to a maximum of
Rs.5.00 Lakhs and

the balance percentage
of interest charges shall be borne by the
beneficiary (which includes surcharge and
penal interest etc.)

OR

b)

If the Industrial unit under
consideration opts for payment of arrears of
CC charges up to the date of disconnection
with

interest and 4 months minimum
charges during closure period without
interest + CMD charges in 3 annual
instalments then it will be permitted to pay
by 1/3 of the dues each year, with
reimbursement of 15% of the interest
charged from out of the percentage
of the
total interest charged to APTRANSCO by
Government, subject to a maximum of
Rs.3.00 Lakhs per year for a period of three
years, and the balance percentage of
interest charges shall be borne by the
beneficiary (which includes surcharge and
penal inter
est etc.).

Industrial Incentives:

Industrial Investment Promotion Policy
2005
-
2010:

Govt. of Andhra Pradesh announced
Industrial Investment Promotion Policy
2005
-
2010, extending various incentives
to the eligible industries except those
declared as ineligi
ble in the G.O. and in
the Municipal Corporation areas of
Hyderabad, Vijayawada and
Visakhapatnam. The objective of the
policy is to provide quality infrastructure
at the doorstep of the industry, facilitate
the industries meet the global quality
standards

and to support the industries for
acquiring the latest methods and
technological advancements happening all
over the world.

Following are the incentives:

1.0.

SSI/Tiny units

1.1.

100% reimbursement of Stamp duty
and transfer duty paid by the industry
towards purcha
se of land meant for industrial
use.

1.2.

100% reimbursement of Stamp duty
for Lease of Land/Shed/ Buildings.

1.3.

100% reimbursement of Stamp duty
and transfer duty paid by the industry on
financial deeds and mortgages etc.

1.4.

25% rebate on land cost limited to
Rs.5.
00 Lakhs in Industrial Estates/Industrial
Development Areas developed by APIIC.

1.5.

Power cost will be reimbursed @
Rs.0.75 per unit during the first year of the
policy and thereafter for the remaining four
years the rate of reimbursement would be so
regulated

on yearly basis, keeping in view of
the changes in the tariff structures to ensure
that power cost to the industry is pegged
down to the first year’s level.

1.6.

25% of the commercial tax paid during
one financial year will be ploughed back as a
grant by the G
overnment towards the
payment of tax during next year. Benefit will
be available for 5 years from the date of
commencement of production i.e., upto 6
th

year.

1.7.

50% subsidy limited to Rs.1.00 Lakh
on the expenses incurred for quality
certification.


1.8.

25% subs
idy on specific cleaner
production measures limited to Rs.5.00
Lakhs.

1.9.

50% subsidy limited to Rs. 5.00 Lakhs
on the expenses incurred for patent
registration.

1.10.

15% investment subsidy on fixed
capital investment will be given subject to a
maximum of Rs.15.00

Lakhs.

1.11.

3% interest subsidy on Prime Lending
Rate (PLR) will be given on the term loan
taken by new Tiny/SSI industrial units
subject to a maximum of Rs.5.00 Lakhs per
year for 5 years.

1.12.

8% subsidy on capital equipment for
technology up gradation.




61



2.0.

SC/ST Ent
repreneurs:

2.1.

An additional investment subsidy of
5% on fixed capital investment limited to
Rs.5.00 Lakhs to SSI/Tiny units.

2.2.

5% of project cost will be provided
as seed capital assistance to SSI/Tiny units
as a grant for industries, which were
sanctioned se
ed capital assistance by Prime
Lending Institutions under National Equity
Fund Scheme limited to Rs.5.00 Lakhs.

3.0.

Women Entrepreneurs:

3.1.

5% Additional investment subsidy on
fixed capital investment limited to Rs.5.00
Lakhs to SSI/Tiny units.

3.2.

Another 5% invest
ment subsidy on
fixed capital investment limited to Rs.5.00
Lakhs for women belonging to SC/ST
Community.

3.3.

5% of project cost will be provided
as seed capital assistance to SSI/Tiny units
as a grant for industries, which were
sanctioned seed capital assista
nce by Prime
Lending Institutions under National Equity
Fund Scheme limited to Rs.5.00 Lakhs.

3.4.

A 5% interest subsidy on Prime
Lending Rate (PLR) will be given on the
term loan taken by new Tiny/SSI industrial
units subject to a maximum of Rs.5.00
Lakhs per
year for a period of 5 years.

4.0.

Units other than SSI/Tiny units
(Large & Medium Scale Industries):

In addition to the incentives as detailed
under SSI/Tiny units, Infrastructure like
roads, power and water will be provided at
doorstep of the industry for sta
nd
-
alone
units by contributing 50% of the cost of
infrastructure from Industrial Infrastructure
Development Fund with a ceiling of
Rs.1.00 Crore subject to (a) the location
should be beyond 10 kms.

from the existing
Industrial Estates/Industrial

Developmen
t
Areas having vacant land/sheds for
allotment and (b) cost of the infrastructure
limited to 15% of the eligible fixed capital
investment made in the industry.

5.0.

Mega Projects:

5.1.

Mega projects are eligible for all the
incentives available for Large and Medium
Scale Industries.

5.2.

Further, Government will also extend
tailor
-
made benefits to suit to particular
investment requirements on case
-
to
-
case basis.

6.0.

Existing Tiny/SSI/Large &
Medium Scale Industries other than
Mega Projects:

6.1.

50% subsidy on the expenses incur
red
for quality certification limited to Rs. 1.00
Lakh.

6.2.

50% subsidy on the expenses incurred
for patent registration limited to Rs. 5.00
Lakhs.

7.0.

Existing Large Industries & Mega
Projects:

In order to address the specific problems of
existing Large Industrie
s, Government may
offer special package of fiscal relief’s on case
-
to
-
case basis. State Investment Promotion
Board from time to time depending on the
nature of the project, investment, location,
employment etc would decide exact fiscal
benefits. An Industr
ial Promotion Fund with
adequate provision will be created for the
purpose. The State Investment Promotion
Board will decide guidelines and Modalities
for operating the fund.

Food Processing Policy of A.P.:

The objective of the policy is to develop
value a
dded Agro Industries in Andhra
Pradesh as a major vehicle of growth for its
trade and economy, to generate large scale
employment in the rural areas and provide
high returns to farmers, to maximize use of
the opportunities and potential in
agriculture and
related sectors, in which
Andhra Pradesh has significant strength, in
creating vital linkages and synergies
between Agriculture and Industry.

Government has announced and issued
fresh orders on Food Processing Policy of
A.P. extending reimbursement of Powe
r @
Rs. 1/
-

per unit exclusively to the Food
Processing units.

Bio
-
technology Park:

Govt. of Andhra Pradesh intends to provide
high quality infrastructure at a reasonable
cost with integrated services to biotech
manufacturing units by setting up a series
of Biotech parks throughout the state. The
first such park is being set up at Turkapalli
village, Shamirpet Mandal, Ranga Reddy
district in an area of 150 acres by M/s.



62



Shapoorji Pallonji Biotech Park Private
Ltd. The private promoter will contribute
to t
he equity of the project and will be
responsible for designing, constructing,
financing, marketing and maintenance of
the park.

Government has constituted an Advisory
Committee for Biotechnology Park to
advise Government on the infrastructure
required, typ
es of units to be allotted sites,
etc. Government has extended a
concessional rate of 1% tax rebate on the
high end products to be manufactured and
sold by the industries located in the park
up to 31.03.2010 and waived stamp duty
and registration fee for a

period of 5 years.

State Government has incurred an amount
of Rs.14.79 Crores so far, towards
establishment of the park.

During the financial year 2006
-
07, an
amount of Rs.483.31 Lakhs has been
provided. T
he park is under
implementation. So far, Government has
released Rs.3.21 Crores during the
financial year 2006
-
07, as on 30.11.2006.

Industrial Infrastructure Development
Fund (IIDF):

Government introduced a scheme called

Industrial Infrastructure Devel
opment
Fund (IIDF)
” to provide for developing
infrastructure viz.,

a.

Water for drinking and Industrial use,

b.

Electricity,

c.

Telecommunications,

d.

Drainage,

e.

Roads,

f.

Other infrastructure facilities as approved
by Government and the State Level
Committee,

g.

Common E
ffluent Treatment plants and

h.

Demand based Social Infrastructure
requirements.

Industries, which are declared as “in
-
eligible industries” in the Industrial Policy,
are not eligible for financial assistance from
Industrial Infrastructure Development
Fund. In
dustries proposed to be located in
places other than industrial areas (isolated
areas) are eligible for financial assistance
towards the cost of infrastructure facilities
upto 25% of the cost of the project or Rs.
100.00 Lakhs which ever is less, if such a

location is otherwise justified. Cost of
Infrastructure to be developed should not
exceed more than 15% of the total project
cost of the unit. Further in respect of the
Industrial Area Local Authority (IALA)
Societies, which are unable to contribute
30% r
equirement for undertaking works
under Critical Infrastructure Balancing
Scheme (CIBS), a part or whole of the 30%
can be met by Government from IIDF on a
case to case selective basis depending on
the occupancy, general performance, future
prospects and an
y other specific reasons.

State Government, so far, has released an
amount of Rs.14,867.52 Lakhs under the
scheme for development of infrastructure
facilities in favour of 53 beneficiaries. 16
beneficiaries have completed their works
and remaining works ar
e at various stages
of implementation.

So far, Government released an amount of
Rs. 2,156.32 Lakhs during the year 2006
-
07, as on 30.11.2006.

Growth Centres:


Govt. of India with a view to attract
industries in backward districts has
approved Growth Cen
tres to provide best
infrastructure facilities available in the
country in respect of power, water, tele
-
communications. Cost of each Growth
Centre is Rs.30 Crores. The financing
pattern of the Growth Centre is in the ratio
of 2:1. Govt. of India has sanct
ioned 4
Growth Centres to the state, which are
being set up. APIIC Ltd. is the
implementing agency for the Establishment
of Growth Centres.

Table 6.5

Bio
-
technology Park

Year

Budget Provision

(Rs.Lakhs)

Expenditure
incurred (Rs.)

2000
-
01

150.00

35,48,600

2001
-
02

250.00

6
6,24,982

2002
-
03

300.24

2,71,16,000

2003
-
04

600.00

3,84,49,546

2004
-
05

600.00

2,76,03,283

2005
-
06

600.00

4,45,74,132

2006
-
07

483.31

-

Source: Industries Department




63



Govt. of India released an amount of
Rs.2,056.00 Lakhs and the State Govt.
released an amount of Rs.857.89 Lakhs
tow
ards setting up of Growth Centres in
the state. As on 30.11.2006, the
Implementing Agency incurred an amount
of Rs.4,343.48 Lakhs towards the
establishment of Growth Centres in the
state. Growth Centre
-
wise expenditure is
shown in Table 6.6.

Table 6.6

Gro
wth Centre
-
wise Expenditure

Name of
Growth
Centre

Project
Cost

(Rs.
Crores)

Central
Share

(Rs.
Crores)

State
Share
(Rs.
Crores)

Exp.
incurred as
on 30.11.06
(Rs. Crores)

Bobbili

35.76

6.26

4.72

11.12

Ongole

27.87

6.45

2.95

16.61

Hindupur

27.28

3.50

1.80

4.50

Jedcherla

29.25

6.45

1.30

11.20

Total

120.16

22.66

10.77

43.43

Source: Industries Department

Special Economic Zones:

Govt. of India has given approvals to 54
Special Economic Zones (SEZ) proposed
to be developed in the state. While 11
SEZs a
re to be developed by the
Government, remaining are proposed by
the private investors. Special Economic
Zone at Visakhapatnam is being
developed in an extent of land measuring
9,200 acres at Atchuthapuram and
Rambili Mandals in two phases. The SEZ
houses s
everal Industrial Parks and
provide all the required infrastructure
facilities with linkages to rail, road,
seaport, airport, training and educational
institutions etc.

During the year 2005
-
06, an amount of
Rs.3,000.00 Lakhs has been allocated for
this sc
heme. As on 30.11.2006, during the
year 2006
-
07, State Govt. incurred an
amount of Rs. 130.00 Crores towards
establishment of Special Economic Zone
at Visakhapatnam.

Andhra Pradesh Industrial Infrastructure
Corporation (APIIC) is the nodal agency
to devel
op the SEZs through a Public
-
Private Partnership (PPP) model where as
the other SEZs in the private sector are to
be developed by the respective promoters
themselves.

Critical Infrastructure Balancing
Scheme (CIBS):

Government has introduced a scheme
calle
d ‘CIBS’ under which funds will be
made available to the Industrial
Associations/Service Societies/NGOs for
development of Critical Infrastructure,
which is considered as essential to ensure
the viability of the infrastructure projects
and for the upgradat
ion of the
infrastructural facilities such as water
supply, power, laying of roads, effluent
treatment plants, etc. in the existing
Industrial Estates/SSI clusters identified
under the SSI cluster development
programmes. The funds will be
provided/reimburs
ed in the ratio of 1:1
between Government and Industrial
Associations/Service Societies/NGOs. In
some cases where number of sick and
closed units and vacant plots are more than
50%, APIIC will share 20% of the
estimated cost and the Service Societies
have
to contribute only 30% of the project
cost.

State Govt. has so far released an amount of
Rs.10.08 Crores under this scheme for
development of infrastructure facilities in
favour of 43 beneficiaries. Already 13
beneficiaries have completed the work and
21

beneficiaries are taking up the works,
which are at various stages and 6
beneficiaries are yet to be released funds for
want of their 30% contribution. An
expenditure of Rs. 6.61 Crores was
incurred towards this scheme upto
30.11.2006.

During the year 20
06
-
07, an amount of Rs.
200.00 Lakhs has been provided towards
this scheme. So far, Government has
already released an amount of Rs.50.00
Lakhs towards 1
st

Quarter and 2
nd

Quarter
and also released an amount of Rs.50.00
Lakhs.

Export Promotion Industrial P
ark
(EPIP):

Export Promotion Industrial Park is being
set up at Pashamailaram village in Medak
District in an area of 207 acres with an



64



estimated cost of Rs.1,456.16 Lakhs.
APIIC Ltd. is developing the park. Govt.
of India will provide funds of Rs. 1,000
L
akhs as grant and the State Govt. will
provide Rs. 350 Lakhs as equity. So far,
Govt. of India released an amount of Rs.
1,000.00 Lakhs and the State Govt.
released an amount of Rs. 300.00 Lakhs.


Integrated Infrastructure Development
Centres (IIDC):

Inte
grated Infrastructure Development
Centre (IIDC) is to facilitate establishing
industries in rural/backward areas and to
provide stronger linkage between
Agriculture & Industry. The cost of the
Centre will be financed by the Central
Government by way of gra
nt and the
balance as loan from Small Industries
Development Bank of India (SIDBI).

The following Centres are being
developed by the APIIC Ltd.

1) IIDC, Udumulapur, Near Nandyal,


Kurnool district.

2) IIDC, Tada, Nellore district.

3) IIDC, Keelapat
tu (V) Nagari, Chittoor


district.

4) IIDC, Madikonda, Warangal district.

Association for Lady Entrepreneurs of
Andhra Pradesh (ALEAP) will implement
another two Centres:

1) IIDC, Gajularamaram, Ranga Reddy
dist.

2) IIDC, Surampally, Vijayawada,
K
rishna


district.

Status of implementation of the above
Centres:

IIDC, Udumulapur:

Approved cost of
the IID Centre is Rs.235.99 Lakhs. The
cost of the Centre will be financed by way
of Rs.2.00 Crores as grant by Central
Govt. and the balance as loan

from SIDBI.
Govt. of India has so far released an
amount of Rs.65.50 Lakhs as grant and
the APIIC Ltd. has incurred an amount of
Rs.175.08 Lakhs as on 30.9.2006 towards
development of the Centre. APIIC Ltd.
has acquired an extent of land measuring
68.55 a
cres situated at Nandyal (M),
Kurnool Dist. for the development of the
Centre. 92 plots are developed, 14 plots are
allotted and 5 units are already set up.

IIDC, Tada:

Govt. of India has approved
IIDC, Tada, Nellore district with a total
cost of Rs.404.69

Lakhs. Govt. of India has
so far released Rs.94.00 Lakhs as grant
-
in
-
aid towards the development of the Centre.
APIIC Ltd. is developing the IIDC in an
area of 110.86 acres and incurred an
amount of Rs.193.33 Lakhs as on
30.9.2006. 151 plots are develope
d and
allotted 150 plots. So far 5 units were
established in 65 plots.

IIDC, Keelapattu
:

Govt. of India has
approved IIDC Keelapattu, Chittoor district
with a project cost of Rs.499.10 Lakhs and
APIIC as the implementing agency. The
development work is yet

to be started by the
APIIC Ltd.

IIDC, Madikonda:

Govt. of India has
approved IIDC, Madikonda, Warangal
district at a total cost of Rs.452.23 Lakhs
and the APIIC Ltd., as the implementing
Agency. The development work is yet to be
started by the APIIC Ltd.

IIDC, Surampally (V), Vijayawada:

Govt. of India has approved the setting up
of IIDC at Surampally Village at an
estimated cost of Rs.370.00 Lakhs, which
will be implemented by Association of
Lady Entrepreneurs of Andhra Pradesh
(ALEAP). Govt. of India so
far released an
amount of Rs. 52.33 Lakhs as a grant to the
ALEAP towards establishment of IIDC.
ALEAP is developing IIDC in an area of 29
acres, which is under implementation.

IIDC, Gajularamaram, Ranga Redd
y

district
:

Govt. of India has approved for
sett
ing up of IIDC at Gajularamaram at an
estimated cost of Rs.347.00 Lakhs and also
released an amount of Rs.1.40 Crores as a
grant to ALEAP for setting up of IIDC at
Gajularamaram. ALEAP is the
implementing agency and it has developed
the IIDC in an area of
30 acres, developed
136 plots and allotted all the plots to the
women entrepreneurs. 64 units are already
set up.





65



L&T Infocity Limited

A.P. Industrial Infrastructure Corporation
Ltd. ((APIIC) and L&T are Joint Venture
(JV) Partners with equity partic
ipation of
11% in the form of land and 89%
respectively. JV Company undertakes
planning, developing, financing,
marketing and maintenance of the project.
The project was taken up in 158 acres at
Madhapur and state
-
of
-
art infrastructure is
facilitated in th
e built up space of 18.00
lakh sft. World
-
class infrastructure was
also developed. Investment on Cyber
Towers & Cyber Gateway was Rs.325.00
Crores and for Cyber Pearl it was
Rs.125.00 Crores.

First Phase:
CYBER TOWERS was
completed in 6 acres with a built
-
up space
of 5.25 lakh sft. and employing 5,000.

Second Phase:
CYBER GATEWAY

was
completed in 8.65 acres with 7.83 lakh sft.
built up space employing 7,500.

Third Phase:

CYBER PEARL covering
5.00 Lakh sft. built up space was
constructed in 6.05 acres.

Sal
ient Features:



Fiber, Satellite, VSAT connectivity with
Voice & data communication through
STPI, VSNL, BSNL and TTL.



Dedicated Power Supply from 132 kV
Sub
-
station with underground Power
Supply Net work.



Multi
-
tier Car Parking



Fully developed Roads, Wate
r Supply,
Sewerage Treatment, Street Lighting
and Storm Water Drains in the 152
acres area.



Space also provided for Petrol Station,
Medical Center, Shopping Complex,
Fire Station etc.

Major Software Companies:

Microsoft,
Tata Teleservices, GE Capital, Orac
le,
HSBC, ICICI, Dell, Convergy’s
(Divyasree), RMZ Corp. Holdings, Value
Labs, Ananth Technologies, Reliance,
HPCL, L&T Infocity Ltd., Satyam and
Visual Soft.

Hardware Park

APIIC Ltd. has taken possession of
Government land measuring 1,109 acres in
Raviry
al village of Ranga Reddy district for
establishment of Hardware Park. The
Corporation developed a layout in 168.27
acres of land and allotted to Catalytic
Software, Millennium Appliances India
Ltd., Astra Microwave Products, HCL
Infosystems, Centre for De
velopment of
Advanced Computing, Vem Technologies
and Aga Khan Foundation and JT Holdings
Private Ltd. New companies coming up are
Gems & Jewellery Park and Ananth
Technologies Private Limited. Proposed
investment in Hardware Park is about Rs.
2,000 Crores

(including 3 IT Developers)
and the proposed built up area will be
around 2.00 lakh sq. mts. The employment
will be around 2 lakhs.

Jawaharlal Nehru Pharma City

Background:

To meet the growing needs
of Pharma industry, at the instance of the
industry, Go
vt. of Andhra Pradesh
approved Development of Pharma City at
Parwada,

Visakhapatnam district in an
extent of 2,200 acres of land and it is taken
up on Public Private Partnership basis.

Consultants:

APIIC appointed L&T
-
Ramboll Consulting Engineers, Chennai

as
Consultants and they gave an estimate for
Rs. 313.11 Crores. A Joint Venture Co. in
the name and style of M/s. Ramky
Pharmacity (India) Ltd. (RPCIL) was
incorporated.

Economic Development

Production:

Jawaharlal Nehru Pharma City

at Parwada, Visakhap
atnam district is at its
initial stage. Expected production on
completion is likely to be Rs. 15,400 Crores

turnover, of which Rs.4,000 Crores will be
exports.

Implementation of the Program:


Water Supply:

Internal pipelines are laid.
Water is being made
available through
existing bore wells till water is made
available from Yeluru left bank canal as
originally proposed.




66



Hazardous Waste Management
Facility:
Waste disposal and landfill
facility is made available.

Common Effluent Treatment Plant:

Common Eff
luent Treatment Plant is
nearing completion.

Marine Outfall:

Off shore pipeline
laying is completed to an extent of 1.8
kms. On shore pipeline laying is
completed to an extent of 8 kms. and
excavation work is under progress to an
extent of 17 kms. Ministr
y of
Environment and Forests, Govt. of India,
has accorded permission for operation of
the treatment, collection and disposal of
effluents of RPCIL. A pump house is
being planned in 1 acre of Duvvada
village adjacent to sea shore of
Tikkavanipalem village.


Power Distribution:

Internal power lines
are completed. Power is to be drawn from
220/132/33 kV Parwada Sub
-
station at
present. APEPDCL, Visakhapatnam
agreed to take up work for erecting one
33/11 kV transformer initially and to
install other 3 transform
ers as per
demand.

Street Lighting through Industrial
Power Supply:

Work is under progress.

Layout Approval:

Layout approval is
being finalized by VUDA.

Exemption

from payment of Stamp
Duty:
Reimbursement of Stamp Duty and
Registration fee on the first
transfer of
land from the Government to the
Developer i.e., RPCIL is being
considered.

Rehabilitation and Re
-
settlement:

Rehabilitation site at Aganampudi village,
Gajuwaka Mandal, Visakhapatnam
district in total layout area of 34 acres is
developed by AP
IIC. Layout consists of
537 plots of 144.44 sq. yards each.

Employment:

Estimated employment
potential on total implementation of the
project will be around 10,000.

Investment:

Estimated cost of the total
project worked out to Rs. 313.11 Crores.


Policy I
nitiatives:




Environment, Forests, Science and
Technology (EF&ST) Dept. will take
steps for hassle free approvals and
permissions.



EF&ST Dept. and Andhra Pradesh
Pollution Control Board (APCCB) to
arrange guidance from Central
Pollution Control Board (CPC
B) and
Ministry of Environment & Forests
(MOEF), Govt. of India to make
Pharma City a favorable destination.



MOEF, Govt. of India accorded
environmental clearances.



Constitution of Governing Body with
1/3
rd

of the members from Govt./
APIIC, 1/3
rd

from Ra
mky Pharma City
(India) Limited (RPCIL) and 1/3 from
prospective units.


* * *

Index of Industrial Production
(IIP)

6.2

Index of Industrial Production is the
yardstick for measuring the Industrial
growth in the state. It indicates the relative
change of ph
ysical production in the field
of industry during specific period as
compared to the previous period. The Index
of Industrial Production is estimated on
monthly basis by collecting data from the
selected units of Manufacturing, Mining &
Quarrying and Elect
ricity sectors. The main
objective is to estimate the contribution of
three major sectors of Industrial Sector to
the Gross State Domestic Product.

In the State, the Index of Industrial
Production is being compiled with Base
Year 1993
-
94 for 17 Industrial
classifications under manufacturing sector.
Electricity sector registered a growth of
13.1 percent, Mining & Quarrying sector
registered a negative growth of (
-
) 4.9
percent and Manufacturing sector registered
a growth of 12.6 percent during 2006
-
07
(April
-
November) when compared to 2005
-
06. The General Index registered a growth




67



of 11.1 percent during 2006
-
07 (April
-
November) when compared to 2005
-
06.
The indices of Industrial Production under
Manufacturing, Mining and Quarrying,
Electricity Sectors and Ge
neral Index
from 2001
-
02 to 2006
-
07 (April
-
November) are shown in Annexure 6.4.

Annual Survey of Industries

Annual Survey of Industries is the
principal source of Industrial Statistics in
the state. It is conducted once in a year to
collect the data from t
he
Organized

Manufacturing units registered under the
sections 2m (i) & 2m (ii) of the Factories
Act 1948, which refers to the factories
employing 10 or more workers and using
power or those employing 20 or more
workers but not using power and also the
Bee
di and Cigar units registered under
Beedis, Cigar workers (Conditions of
Employment) Act 1966.

The main objectives of Annual Survey of
Industries are
-

1.

Estimation of the contribution of
Manufacturing Industries each type
-
wise or
for the whole Industry to t
he “State Income”,

2.

Systematic study of the structure of the
Industry as a whole type
-
wise Industry,

3.

Casual analysis of the various factors
influencing Industries in the state,

4.

Provision of comprehensive, factual and
systematic basis for formulation of poli
cy.

The gross value added and other
characteristics based on Annual Survey of
Industries from 2000
-
01 to 2004
-
05 are
given in Annexure 6.5.

Business Register in Andhra Pradesh

The Standing Committee on Industrial
Statistics (SCIS) considered various
recomm
endations of the National
Statistical Commission (NSC) related to
Industrial sector. This includes
recommendations to develop
comprehensive Business Register. The
Sub
-
group on Business Register has
decided to take up a pilot study in Andhra
Pradesh during
the year 2005
-
06.

The parameters for preparation of
Business Register are i) Identification
particulars like Name of the Unit and
location ii) Activity of the unit iii) Activity
code of the unit iv) Employment (for above
20 or more workers) v) Status of th
e unit
etc.

Following the guidelines of the Central
Statistical Organization (CSO), Govt. of
India, Directorate of Economics and
Statistics has made an attempt to take up
special task of collection of data as
Quarterly Economy Wide Survey (QEWS)
on six par
ameters viz; 1. Number of
employees, 2. Expenditure under salaries,
wages, bonus etc., 3. Profit before direct
taxes, 4. Cost of Fixed assets, 5. Total value

of output and 6. Total input cost to estimate
State/District Gross Domestic Product. The
data is b
eing collected on three parameters
1. Number of employees, 2. Expenditure
under salaries and 3. Total value of output
on quarterly basis and for all six parameters
on annual basis.

***

STATE LEVEL PUBLIC
ENTERPRISES (SLPEs)

6.3

The total number of SLPEs r
emained at 29,
capital employed increased by 5.81 percent,
turnover increased by 15.47 percent and
profit increased by 123.20 per cent during
2004
-
05 when compared with that of 2003
-
04. Details are shown in Table 6.7.

The total turnover (including other income)
made by all 29 PE’s was Rs. 29,368 Crores
while the total expenditure incurred
(exclusive of depreciation and interest)
worked out to Rs. 25,636 Crores. There is
a net profit of Rs. 903.56 Crores.

Table 6.7

Performance of SLPEs

Item

2
003
-
04

2004
-
05

Growth
Rate

SLPEs (No.)

29

29

0.00

Capital

Employed (Rs.Cr)

24,475

25,897

5.81%

Turnover (Rs.Cr)

25,433

29,368

15.47%

Net Profit (Rs.Cr)

405

904

123.20%

Return on Investment
(ROI
-
%)

8.62

9.30

7.89%

Source: Public Enterprises Department




68



The Top mo
st five SLPEs among the
profit making Public Enterprises are
shown in Table 6.8.

The Profits made by the top five SLPEs as
percentage of total profit (Rs. 1,266.08
Crores) made by 20 Profit making SLPEs
works out to 94.87 percent.

The top five State Level Public
Enterprises as per their tu
rnover during
2004
-
05 are shown in Table 6.9.

The percentage of turnover achieved by
top five SLPEs to total turnover work out
to 86.21 percent.

The top five State Level Public
Enterprises as per the capital employed
are shown in Table 6.10.

The Capital Employed

during 2004
-
05 by
29 PE’s was Rs. 25,896.80 Crores as
against Rs. 24,474.64 Crores during 2003
-
04. The share of capital employed by top
five SLPEs in total capital employed by
29 SLPEs was 85.46 percent as against
88.19 percent during the last year.

Singa
reni, AP GENCO and APTRANSCO
are continuing as the best performers
among the 29 SLPEs.

Profit and loss of Public Enterprises during
2003
-
04 and 2004
-
05 is given in Annexure
6.6.

* * *

MINES & GEOLOGY

6.4

Minerals & Agriculture have been the main
stay of A.
P. and minerals form a major
contributor to its economic growth. A.P. is
renowned as the mineral storehouse of the
south and established as a prime mineral
producer in the Country.

Andhra Pradesh’s varied geology has rich
& wide variety of minerals for many
mineral specific

industries. It is a house for
48 minerals and more specifically for Gold,
Diamond, Bauxite, Beach Sand, Limestone,
Coal, Oil & Natural Gas, Manganese,
Dolomite, Quartz, Feldspar, Precious &
Semi
-
precious stones, Clays, Calcite,
Steatite, Iron Ore, Base M
etals, Barytes,
Uranium, Granite, Limestone Slabs,
Marbles, Dimensional Stones and other
Building Materials.

Estimated Mineral Reserves


(In Million Tones)



Coal 16,694



Limestone 35
,220



Bauxite 613



Barytes 76



Diamond 18,22,955
(carats)



Granite 2,406
(Million Cu. Mtrs.)




Gold (ore) 8.55



Beach sands 241

Poli
cy

The State with vast mineral potential has
worked out certain strategies to explore,
exploit and develop the mineral sector with
the constructive cooperation of both private
and public sectors. The State has focused
on the inventory of mineral resources,

key
issues of legislation, objective & strategies
in tune with the National Mineral Policy in
accelerating the growth in the liberal
regime and thereby leading to overall
development of the mining sector.

Table 6.8

Top Five Profit Making SLPEs, 2004
-
05

Enterprise

Amount (Rs. Crores)

Singareni

576.01

Housing Board

482.09

APGENCO

89.39

TRANSCO

34.10

Minerals

19.59

Total

1,
201.18

Source: Public Enterprises Department

Table 6.10

Top

Five SLPEs as per Capital Employed,
2004
-
05

Enterprise

Amount
(Rs. Crores)

GENCO

7,348.94

Housing Corporation

6,125.52

TRANSCO

4,460.27

Singareni

2,870.08

APIIC

1,328.39

Total

22,133.20

Source: Public Enterprises Department

Table 6.9

Top Five SLPEs as per their Turnover,

2004
-
05

Enterprise

Amount

(Rs. Crores)

TRANSCO

9,500.29

Beverages

4,526.36

GENCO

4,293.02

Singareni

3,781.06

APSRTC

3,215.76

Total

25,316.49

Source: Public Enterprises Department




69



The State is always innovative to improve
the mine
ral administration through
interaction with the district level officers
and the stakeholders. Government has
also taken measures required in the right
earnest with the proactive involvement of
all the stakeholders. A lot of thrust is
given on pre
-
fixed tim
e disposal of
mineral concession applications to bring
additional areas under mining and also
under resource mobilization. Government
extends support for grounding of high
tech and innovating value added mineral
projects under single window industrial
clea
rance. The State mineral Policy is in
integrity with the National Mineral Policy.
The main aim of State Mineral Policy is
to serve as a guiding force to translate the
State’s mineral potential into reality with
the objective of eco
-
friendly and
sustainable

mining.

Rights for Exploitation of Minerals:

Minerals are natural resources and the
right to exploit and grant of lease is being
done under the provisions of MM (DR)
Act 1957, Mineral Concession Rules 1960
and APMMC Rules 1966. An
entrepreneur can apply
for Mineral
Concession/lease for major or minor
minerals in the prescribed application
form along with the application fee,
sketch, Mineral Revenue Clearance
Certificate and other relevant documents
in the concerned District level Officers for
processing a
nd grant of lease by the
Government.

Functioning Structure:

The Department of Mines & Geology was
established in the year 1887. After the
formation of Andhra Pradesh, the
Department of Mines & Geology is made
to look after both promotional and
regulatory
functions. The receipt and
processing of the applications for Mineral
Concession and detailed survey of some
Mineral bearing area remained the
functions. The Department of Mines &
Geology is looking after the technical
aspects and grant of leases in case o
f
granite minor mineral and advising the
Government on the grant of area for major
and minor minerals under the Industrial
policy resolution
.

The entire task of Mineral Regulatory work
and collection of Mineral revenue for both
major and minor minerals co
mes under the
purview of Department of Mines &
Geology. The Department has 34 local
offices, 8 regional offices & 4 zonal offices
in the state to oversee the functions of
mineral regulation and investigation.

Mineral Resources & Exploration:

The State geol
ogically unique and consists
of igneous, metamorphic & sedimentary
formations range from the most ancient to
the recent with wide variety of litho units.
These formations have a host of industrial,
non
-
industrial minerals & rocks. The state
endowed with a
bundant mineral wealth
with large deposits of industrial, energy
metallic, precious minerals & rocks.

The Central & State Geological agencies
have explored most of the big mineral
deposits and identified 48 minerals with
vast explored reserves of Coal, Lim
estone,
Bauxite, Barytes, Beach Sand, Gold,
Diamond, Mica, Clays, Dolomite, Quartz,
Manganese, Base Metals, Tungsten, Semi
-
precious stones, Feldspar, Silica Sand,
Quartzites, Low Grade Iron Ore, Oil &
Natural Gas, Laterite, Granite, Limestone
Slabs, Marble
s, Slates, and Dimensional
Stones etc. The State accounts for
considerable reserves of key minerals in the
country viz., Mica, Limestone, Barytes,
Bauxite, Coal, Diamond, Gold, Dolomite,
Fuller’s Clays, Silica Sand, Quartz,
Feldspar, Semi
-
Precious Stones,

Granite
etc.

In addition to the identified and explored
mineral deposits, there are vast tracks of
virgin areas in inaccessible tribal areas of
Easternghats & Nallamalai. The State is
also intending to explore deep seated &
sub
-
surface mineral deposits fo
r future
development & growth. The State has also
granted number of Reconnaissance permits
to different National & Multi
-
National



70



companies for exploration of Gold,
Diamond & Associated Minerals. Some
of the companies have identified areas of

diamondifero
us Kimberlites for further
prospecting. The exploration date
captured through aeromagnetic surveys by
Reconnaissance Permit (R.P.) Holders
may help to un
-
reveal hidden mineral
wealth in the coming years.

Exploration Programme:

1.

State perused with the State

and
Central Geological Agencies for
exploration of Diamond, Gold, Iron Ore,
Coal, Dolomite, Beach sand minerals,
Laterite, Bauxite and Granites etc.

2.

The Department on its own has taken up
investigations to identify areas for
exclusive quarry zones for Roa
d Metal
and building material for promoting
manufacture of rock sand around
Visakhapatnam town and Granite
deposits in East Godavari and Medak
districts, Laterite and Iron Ore resources
in Kadapa and Adilabad districts and
Dolomite in Khammam district. Fu
rther
intends to identify the areas for
proposing exclusive mining zones in
Mahabubnagar district for promoting
manufacture of sand from rock
.

3.

The Government has a program to
identify and notify exclusive mining
zones around the Towns and Cities i
n
the State for safe mining, protection of
environment and establishment of
Mineral Based Industries, to cater the
needs of growing of urbanization.

4.

The Government is also
encouraging the entrepreneurs for
manufacture of rock sand to conserve
the natural
sand and also depletion of
water.

Mineral Resources & Mining
:

Leases & Applications
:

A.P. with vast major & minor mineral
resources has granted 1,644 Mining
Leases for major minerals and around
6,239 quarry leases for minor minerals
under both private & p
ublic sectors.
Exploitation of Coal, Barytes, Oil &
Natural Gas are exclusively mines by
public sector and forms major mineral
revenue to the State Exchequer. The
Limestone & Dolomite are also being
exploited under public & private sector.

The Department
has disposed 5,046
mineral concession applications in the year
2005
-
06 which are higher than 3,829
applications disposed during the entire year
2004
-
05, which shows an over all
improvement in performance over the last
year and intends to dispose 6,015 Mine
ral
Concession applications during 2006
-
07.
The Department has disposed 2,761
Mineral concession applications up to
September 2006 against a target of 2,526.

Mineral Production

The State produces about 80 to 90 million
tones of major mineral and 65 millio
n cubic
meters of minor minerals. Mining of Coal,
Limestone, Barytes, Oil & Natural Gas falls
under mechanized large scale sector.
Granite, Dolomite, Feldspar, Quartz, Clays
etc., which are under semi
-
mechanized
medium sector and all other minerals are
und
er manual & semi
-
mechanized small
sector. Nearly 90% of the mines fall under
small sector and remaining 10% are under
medium or small sectors. Major production
of minerals comes from large sector but
small sector contributes significantly in
cascading val
ue addition & employment.
The Coal, Limestone, Dolomite, Granite,
Mica, Oil & Natural Gas are under tapped
and the resources of Gold, Diamond,
Bauxite & Beach Sand are still not tapped.

Value of Mineral Production

A.P. stands 2
nd

in terms of major mineral

production & value of mineral production
& 1
st

in Minor Mineral Production and
Value in the country. The key minerals
viz., Coal, Limestone, Bauxite, Beach
Sand, Uranium, Clays, Dolomite, Quartz,
Feldspar, Natural Gas, Granites, Gold &
Diamond will form
the future growth
engines for economic development. The
State during 2005
-
06 has achieved Rs.
7,802.97 Crores on value of Mineral
Production and during the year 2006
-
07, a



71



target of Rs. 8,179.79 Crores is fixed on
the value of mineral production, which
con
tributes to the GDP. The Department
has achieved Rs. 3,714.18 Crores against
a target of Rs. 3,435.51 Crores up to the
end of September 2006.

Industries

Minerals from the State have significantly
contributed in the manufacture & growth
of Cement, Steel, Fe
rro Alloys,
Cosmetics, Jewellery, Construction,
Irrigation, Pharmaceutical Chemicals,
Processing Fillers, Automobiles, Asbestos
& Mica Insulation, Sculpturing
Monuments, Pottery, Power Generation
and Refinery Industries.

Mineral Projects:

Government has t
aken initiative for
grounding of Bauxite and establishment
of Aluminum projects with an investment
of Rs. 40,000 Crores, Uranium Project
with Rs. 2,000 Crores, Beach Sand
Project with Rs.1,000
-

4,000 Crores, Iron
ore Project with Rs. 160 Crores, Gold and
Diamond Projects with Rs. 50 Crores and
Cement Plants with Rs. 3,000 Crores
.

Coal Policy & Other Policy Initiations:

Government has announced state policy
on Coal Mining to augment coal
production and to meet the growing
demand in State Power Sectors.
Gov
ernment has made M/s. APMDC to
operate coal mining in Tribal agency areas
inconformity with A.P. Land Transfer
Rules (APLTR) and also in association
with other PSUs.

Government through APMDC intends to
enter into oil and Natural Gas exploration
and coal mi
ning in other States. The
Government is contemplating to levy cess
on semi precious stone’s areas, seignorage
fee on weightment basis for Granite and
have plan to levy prorate basis royalty on
Limestone consumed by cement
companies.

Mineral Resources & Re
venue:

The mineral industry of the state have
seen incredible run up over the past few
years. The mineral revenue rose from Rs.
585 Crores to Rs. 1,075.31 Crores (2005
-
06) level in 5 years. The mineral market
can be highly unpredictable, therefore,
mining

need to be ever careful to guard
against complacency. The growth of
mineral revenue with thumping authenticity
speaks about the coordination &
cooperation & strong support instruments
in policy & implementation. The systematic
approach & development have

yielded
pretty stable growth irrespective of change
& entry of foreign investors in the mining
industry. The production of most of the
minerals is good over a long period of time,
say five years or more and risks of downfall
are pretty negligible. Conser
vation of
minerals should be top priority at present
rather trying to enhance the production &
tapping of every bit of mineral potential.

Government has fixed a target of Rs. 1,265
Crores under Coal (Rs. 337.50 Crores),
Non Coal (Rs. 844.60 Crores) and
In
frastructure cess on mineral bearing lands
(Rs. 82.90 Crores) sectors during 2006
-
07
against the achievement of Rs. 1,075.30
Crores during the year 2005
-
06. The
Department has collected Rs. 493.77 Crores

(Rs. 126.26 Crores
-

Coal & Rs. 367.51
Crores
-

Non
-
Coal) during the current
financial year up to September 2006, which
is higher than the corresponding period of
2005
-
06 (Rs. 436.40 Crores).

Vigilance:

Government has grounded Vigilance
scheme by creating 3 centralized Vigilance
units, 8 Regional Vigilanc
e units and 6
Temporary Check posts to keep Vigil over
illicit mining and transportation of minerals
and also to augment Mineral Revenue.
Government has created a State Level Task
Force and District Level Task Force for
effective vigilance to curb illegal
mining
and transportation of minerals in the state.

Mineral Dealers

The Department has registered 4,772
mineral dealers upto the year 2005
-
06 and
brought most of the dealers & process of
Minerals under the purview of Mineral
Dealers Rules to curb the illic
it Mining and



72



selling. Powers were delegated to the
District Officers from the Regional
Offices for issue of Waybills under
Mineral Dealers Rules 2000.

Government of A.P. has promulgated

The Andhra Pradesh Mineral Bearing
Lands” (Infrastructure) Cess Rule
s
2005,
for collection of cess on Mineral
Bearing lands for promotion of
infrastructure facilities and rapid
exploitation of mineral resources in the
state.

Andhra Pradesh is rapidly changing and
emerging as a big state of global
importance and growth of
mineral
economy are seen in the footprints across
the country in new & exciting ways. There

is a huge vote of confidence in the
development of varied mineral potential
in the State. Foreign investors have
targeted Andhra Pradesh as a prime
destination for
exploration, exploitation &
investments, because of progressive
leadership and mineral policy. The State
constantly stressed on the need for
adequate regulation & vigilance be it
processing & grants of mineral
concession, production & mineral
revenue. Bef
ore going on a change in
policy or standardization, the Department
always interact with the stake holders &
make a check list of things or
shortcomings that needs to be taken care
for growth of mineral industry. To begin
with problems are understood and d
ecide
what amount of regulation is adequate to
mineral industry under the policy. The
department has decentralized certain
powers to field level officers and also
grounded and strengthened the vigilance
to plug the leakages and augment the
mineral revenue
in the coming years.

The progressive strategies & policies have
culminated in growth of leases, area,
mineral production, Mineral value &
grounding of mineral based industry in the
state.

Production of Coal, Natural Gas and
Limestone from 1996
-
97 to 2006
-
07
(Upto September 2006) and District
-
wise
Mineral Revenue in the state from 2003
-
04
to 2005
-
06 are given in Annexure 6.7 and
6.8.

* * *

COMMERCE & EXPORT
PROMOTION

6.5

Govt. of Andhra Pradesh established a
separate Department of Commerce &
Export Promotio
n in the year 1966 to
promote exports from the State. Since 1
-
1
-
1998, the Department has been made a
wing of the Office of the Commissionerate
of Industries in order to impart greater
synergy in the functioning of the two
Departments of the Government.

T
he products exported from the A.P. State
during the year 2005
-
06 are mainly
Computer Software contributing above 50
per cent to the total A.P. exports. The other
major exports from the A.P. State are Drugs

and Pharmaceuticals, Fine Chemicals,
Animal, Mari
ne & Leather Products,
Engineering items, Agriculture & Agro
based products, Minerals, Mineral
Products, Handlooms, Handicrafts,
Textiles, Gems & Jewellery and imitation
Jewellery, Electronics & Electrical etc. The
exports from A.P. State increased to Rs.

24,408 Crores in the years 2005
-
06 from
Rs. 12,400 Crores during the year 2001
-
02.
Item
-
wise exports

from Andhra Pradesh
during 2001
-
02 to 2005
-
06 are shown in
Annexure 6.9.

* * *

INDUSTRIAL RELATIONS

6.6


Industrial Peace is a pre
-
requisite for the
growt
h, development and sustenance of
Industries. Work stoppages due to
Industrial Disputes between employers and
workmen and consequential loss of man
-
days in a given period would be an
important indicator of labor management in
Industries. Government through
its
conciliation machinery has been making
efforts to settle disputes amicably and
promote industrial peace and for congenial
work environment. Efforts are being made
by the Department to promote productivity
-




73



linked settlements in order to make
Industries

more competitive.

Number of workers involved and man
-
days lost due to work stoppages have been
increased during January 2006 to
September 2006 when compared with the
corresponding period of last year. Details
are shown in Table 6.11.


The number of strikes, lockouts, workers
involved and man
-
days lost
from 1977 to
September 2006 are shown in Annexure
6.10.

* * *

Table 6.11

Industria
l Relations

Item

Up to 30
-
09
-
2005

Up to 30
-
09
-
2006

Strikes

7

9

Lockouts

4

2

No. of workers
involved

12,770

16,086

No. of Mandays Lost

5,98,856

20,19,249

Source: Labour Department