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In order to attract aerospace and defence manufacturing sector players and make Andhra Pradesh a base, the State Industries Department on Thursday notified a policy framework packed with incentives.
The policy, valid for the period 2015-2020, aims to attract new investments worth ₹20,000 crore in the sector by 2020, create over 5,000 additional highly-skilled employment opportunities in the sector and attract at least four anchor units with an investment of ₹1,000 crore each during the policy period.
The policy mentions that it will seek to attract at least 10 per cent of the offset policy obligations discharged by companies in India over the policy time frame.
As a part of this policy framework, the government proposed to create industrial parks and townships catering to the requirements of aerospace and defence manufacturing. The aerospace units will be encouraged to adopt industrial training institutes to sponsor and provide a steady stream of employment, apart from facilitating tie-ups with universities. Part of the land in the aerospace and defence park will be reserved for training institutions.
Units set up will be declared as public utilities and benefits of the single desk clearance system will be extended to new companies. A special cell will be constituted by the State headed by the Secretary, Department of Industries and Commerce.
Companies will be entitled to VAT/CST/SGST reimbursements for small and medium-sized Enterprises and large units shall get the benefits as per the new industrial policy.
Apart from 100 per cent exemption from entry tax on plant and machinery and capital goods for the initial three years, aircraft brought in for maintenance and overhaul would get 100 per cent reimbursement of VAT on input material, excluding aviation turbine fuel.
Industrial parks The Industries Department has also notified a policy framework for industrial parks valid during 2015-16 along with another policy for small, micro, medium enterprises offering a slew of incentives under the industrial policy and several others including tax rebates.
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