In order to give a boost to industrial and economic development in the backward district of Kadapa, GoAP has decided to develop a Mega Industrial Hub in an area of 3155 acres.
The Hub will act as a Multi-Product Mega Industrial Park, with good infrastructure facilities like power, water, CETPs and STPs etc. The proposed MIH is likely to bring in an investment of Rs.25,000 Crore with a potential to create employment to 2.5 Lakh people stated a GO given by Mr Karikal Valaven, special chief secretary to government and CIP .
“Mega industry status for Projects with an investment of Rs 500 Crore”
The proposed Hub is located near NH 40 connecting Kurnool & Ranipeta Road by 10Kms, Kadapa Airport by 6 Kms and from the project site, Renigunta International Airport is said to be 145 KM, while the Railway station is about 13 Kms.
And to create a competitive environment for the Industries to set-up their units in the YSR Jagananna Mega Industrial Hub, Government, has approved the following special package of incentives for the economic development of the District required in general and state as a whole:
(i) Land Allotment – APIIC will provide land on lease basis, duly reducing their upfront costs for a period of 33 years, which is extendable up to 99 years with an option to buy the land after 10 years of successful operation.
(ii) Stamp Duty – Reimbursement of 100% Stamp Duty, Transfer Duty, and Registration Fee paid on sale/lease deeds on the first transaction, and 50% thereof on the second transaction.
(iii) Power cost reimbursement: i. 24X7 uninterrupted power supply. ii. Power cost reimbursement @ Rs.1.00 per unit for a period of 5 years from the date of commencement of commercial production.
(iv) Investment Subsidy: 20% of Fixed Capital Investment (FCI) up to INR 10.00 Crore.
(v) Interest Subsidy: To provide Interest Subsidy @ 5.0% up to Rs.1.50 Crore per year for a period of 5 years.
“GoAP will extend tailor-made benefits to mega projects”
(vi) SGST: 100% Net SGST reimbursement for a period of 8 years, limited to Fixed Capital Investment (FCI) whichever is earlier
(vii) Logistic Support: Logistic subsidy of 25% of cost incurred on domestic transports limited to Rs.50 Lakh per annum on Logistics for 5 years.
(viii) Mega Project: Projects with an investment of at least 500 Crore or direct employment generation of 2,000 will be accorded mega industry status. The Govt will extend tailor-made benefits to mega projects to suit particular investment requirements on case to case basis based on the project’s importance to the state’s industrial growth and its ability to generate large scale employment for people or revenues for the state.