15 things to know about Andhra Pradesh’s new Auto Mobile Policy( 2014-2019 ):

  • The government of Andhra Pradesh came up with a new Automobile policy in aspiration to attract internationally celebrated auto makers like BMW, Audi, Volks Wagon, Honda, Hyundai and Suzuki to setup their manufacturing units in Andhra Pradesh. This is in effect from 1st November,2014.
  • The units are proposed to be set up mainly in the districts of Nellore, Ananthapur and Chittoor for their close proximity to Chennai, Bangalore and major ports of Krishnapatnam & Chennai port.
  • The first step of this program is to make negotiations to invite Asian brands like Honda, Hyundai and Suzuki to establish their plants in Andhra Pradesh.
  • Government to award Incentives worth Rs 500 crores for the projects established with a net worth of Rs.1500 crores and above.
  • A promised 24 hours of uninterrupted electricity supply to the automobile industries.
  • The highways and the regional roads in the proximity of the industries will be expanded to 4 lane highways.
  • All the required permissions to be granted through single window mechanism within 2 months of duration.
  • For the first 5  years of the establishment of the industry, electricity will be served at a discounted price of only 0.75 paisa per unit.
  • Exemption from all the state taxation. Water to be supplied at half the tariff to what the existing industrial tariff is.
  • Reimbursing the Central Service Tax by the government for the first 10 years from the day of establishment.
  • Entry tax for the products manufactured by those investors will be excluded.
  • Reimbursement of VAT on produced goods and 5% incentive on VAT tax for raw materials and inputs for first 20 years
  • A complete waiver on entry tax on all the manufactured goods.
  • The stamp duty on the lands allotted for the investors will be reimbursed.
  • Applying all the incentives from center as per AP Reorganization Act in addition to the above mentioned incentives.

Andhra Pradesh Chief Minister Chandrababu Naidu requested Isuzu to setup a truck manufacturing facility in Sri city, Nellore where it is already building a manufacturing unit to produce utility vehicles.

Chandrababu Naidu is planning his next visits to South Korea and Germany after a successful visit to Singapore and Japan. South Korea has leading auto manufacturer ” Hyundai ” and the world’s leading electronics manufacturer Samsung. Mr.Naidu is planning to impress the world’s leading manufacturers to invest in AP with his policies in place.

After his visit to South Korea he will be visiting Germany which is the home ground for the world’s leading automobile brands Audi, Mercedes, Porshe, BMW and Volkswagen. He is planning to wipe off the dark mark by Congress Ministers in Andhra Pradesh where volkswagen had to drop its plans of establishing its manufacturing unit, build confidence in them on India with Make in India and Made in AP campaigns, governance changes in the new government and attract the German leading companies to invest to AP. As per the sources, AP is keen to attract Maruti, Hyundai and Honda in setting up their second manufacturing plants in AP while reaching out to others waiting to enter India.