56
MINUTES OF THE 20 th S.L.C. MEETING HELD ON 06/09/2018 AT 2.30 P.M. IN THE CONFERENCE HALL OF COMMISSIONERATE OF INDUSTRIES, 1 st FLOOR, GOVERNMENT OF PRINTING PRESS BUILDINGS, MUTYALAMPADU, VIJAYAWADA. The list of the Members attended the Meeting. Sl. No Members Name & Designation of the Member / Representative Sri / Smt. 1 Chairman, State Level Committee Siddharth Jain, IAS., Chairman of SLC & Commissioner of Industries. 2 The Commissioner, Commerical Taxes, AP. K. Radhakrishna Ra, Additional Commissioner. 3 The Chief Commissioner, Land Administration. J. Siva Srinivas, Asst. Secretary. 4 The President, FAPCCI. T. Sujatha, Joint Director. 5 The Commissioner, Tribal Welfare Department V. Sasikala, DGM, S.T. Corporation. 6 The Commissioner & Inspector General, Registration Stamps Department. P. Ramalaxmi Patnaik, Asst. Inspector General 7 The Member Convener, APPCB R. Sreeramlu, SEE 8 Nominee of Syndicate Bank C. Pulla Reddy, AGM 9 The Convenor, S.L.B.C. Andhra Bank. N. Venugopal, AGM 10 The Chairman, C.I.I. Y.V. Krishna Mohan, Convenor APMSME. 11 The Chairman, AP Spinning Mill Association. L. Raghurami Reddy, Vice Chairman 12 The President, FAPSIA EP Purna Chandra Rao,Vice President. 13 The President, FSME APK Reddy, President 14 The Managing Director, APIIC M. Venkateswara Rao,General Manager. 15 Member – Convenor, State Level Committee K.Vijaya Ratnam, Convenor of SLC / Joint Director of Industries (II). The Chairperson of the SLC welcomed the participated File No.10/2018/288

INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Page 1: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

MINUTES OF THE 20th S.L.C. MEETING HELD ON 06/09/2018 AT2.30 P.M. IN THE CONFERENCE HALL OF COMMISSIONERATE OFINDUSTRIES, 1st FLOOR, GOVERNMENT OF PRINTING PRESSBUILDINGS, MUTYALAMPADU, VIJAYAWADA.

The list of the Members attended the Meeting.

Sl.No

Members Name & Designation of theMember / Representative

Sri / Smt.

1 Chairman, State Level CommitteeSiddharth Jain, IAS.,

Chairman of SLC &Commissioner of Industries.

2 The Commissioner, CommericalTaxes, AP.

K. Radhakrishna Ra,

Additional Commissioner.3 The Chief

Commissioner, Land Administration.

J. Siva Srinivas, Asst.Secretary.

4 The President, FAPCCI. T. Sujatha, Joint Director.5 The Commissioner, Tribal Welfare

DepartmentV. Sasikala,DGM, S.T. Corporation.

6 The Commissioner & InspectorGeneral,

Registration Stamps Department.

P. Ramalaxmi Patnaik,

Asst. Inspector General

7 The Member Convener, APPCB R. Sreeramlu, SEE8 Nominee of Syndicate Bank C. Pulla Reddy, AGM9 The Convenor, S.L.B.C. Andhra

Bank.N. Venugopal, AGM

10 The Chairman, C.I.I. Y.V. Krishna Mohan, ConvenorAPMSME.

11 The Chairman, AP Spinning Mill Association.

L. Raghurami Reddy, ViceChairman

12 The President, FAPSIA EP Purna Chandra Rao,VicePresident.

13 The President, FSME APK Reddy, President14 The Managing Director, APIIC M. Venkateswara Rao,General

Manager.15 Member – Convenor, State Level

CommitteeK.Vijaya Ratnam, Convenor ofSLC / Joint Director ofIndustries (II).

The Chairperson of the SLC welcomed the participated

File No.10/2018/288

Page 2: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

members and the special invitees of the Committee. The SLC reviewedand discussed the proposals of Large and Mega projects placed in theSLC on case to case basis, Item wise the agenda and decisions of theState Level Committee are as follows::

ItemNo

Brief Description of the issue Decision of the Committee

Follow up action on the minutes ofthe previous Meeting held on 20/03/2018.

Noted.

Brief Description of the issue

SVC Opinion

Decision of the committee

File No.10/2018/288

Page 3: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

1 Proposal for Change ofManagement and Name & Style Of M/s Sriam Labs Pvt. Ltd to M/s Laurus Labs Limited A Large Enterprise ( P & M/c.- Rs.31.85 crs) Line of activity - Bulk Drugsand intermediates. DCP :: 07/06/2017. The unit has not availedany incentives under IDP 2015-20. The GM,DIC, VisakhapatnamDistrict has recommended the proposals. As per IDP 2015-20, “theIndustrial Enterprise that availed incentives/concessionsshould obtain the No ObjectionCertificate (NOC) from thefinancing institutions concernedin respect of aided Enterprise/industry andCertificate of incorporation fromRegistrar of Companies(ROC) within the first six (6)years for MSEs and eight (8) for Medium and Large Industriesfrom the DCP, before seekingthe approval of SLC for anychange of theconstitution/Management/name& style of the IndustrialEnterprise.” SVC may take a view.

The SVC discussed the issue in detailed and opined that the industry may be accorded permission for change of management & unit’s name from M/s SriamLabs Pvt. Ltd to M/s Laurus Labs Limited, Subject toexecuting the agreementbond to the satisfaction of the Commercial Tax Department regarding dues, by both the managements.

The SLC discussed the issue in detail and agreed the opinion of the SVC.

File No.10/2018/288

Page 4: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

2 Proposal for Change of namewithout change in Management From M/s. RayalaseemaAlkalies and Allied ChemicalsLimited to M/s. TGV SRAAC Limited Recommended by theGM,DIC, Kurnool As per para No.11 of theoperational guidelines under IDP2015-20, “the IndustrialEnterprise that availedincentives/concessions should obtain the No ObjectionCertificate (NOC) from thefinancing institutionsconcerned in respect of aidedEnterprise/industry and Certificate of incorporation fromRegistrar of Companies (ROC)within the first six (6) yearsfor MSEs and eight (8) for Mediumand Large Industries from theDCP, before seeking the approvalof SLC for any change of theconstitution/Management/name &style of the Industrial Enterprise.” The SLC may take a view.

The SVC discussed the issue in detailed and opined that the industry may be accorded permission for change of name from M/s Sree Rayalaseema Alkalies and allied Chemicals Ltd. to M/s. TGV SRAAC Limited without change of management.

The SLC discussed the issue in detail and accorded permission for change of unit’s name.

3 M/s. Isuzu Motors Pvt Ltd.,Chittoor district DCP :: 01.04.2016 Line of activity :: Mfg. ofMotor vehicles. The GM,DIC hasrecommended the claimapplication

The SVC examined the issue in detailed and opined that unit may be sanctioned reimbursement of work contract tax to a tune of Rs.5,51,65,776/-, Subject to provide Industry sh

The SLC discussed the issue in detail and referred back to the opinion of SVC for ascertaining the reasons for not complying of 80% of employment belonging to AP, the condition of pre requisite for availing tax incentives, as per the

File No.10/2018/288

Page 5: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

For sanction ofreimbursement of work contracttax for an amount of Rs.5,51,65,776/-. Unit providing employmentto 823 No. Only 365 ( i.e.44.35%) belongs to AP. Name wise details arefurnished. As per GO Ms No:116,Inds& Com(IP) Dept., dt:18.10.13, “100% Net VAT &CST incentive for a period of 30years or 135% cap of cumulative investment, upto thedate on which 7 years haveelapsed from the dateexecution of the Memorandum ofUnderstanding date of obtaining clearances to startconstruction whichever is earlier.This includes VAT on worksContract Tax for a period of 5years. The Commercial Tax Dept. to provide the quarterly Taxpayment details of the company inForm A to the IndustriesDepartment for making necessaryrecommendations” The SLC may take a view.

all ultimately provide at least 80% of employment to the candidates belonging to AP as per the GO Ms.No. 116 dated 18.10.2013 of Industries & Commerce (IP) department.

GO Ms.No. 116 Industries & Commerce (IP) department, dated 18.10.2013.

4 The GM,DIC, Visakhapatnam Districthas recommended for the claims offollowing units, pertaining to IIPP 2010-15 policy for rejection as the units have not furnishing of short fall information/ documents etc. since long time.

The SVC discussed the issue and opined that (1) claim may be rejected and a final Notice may beissued to th

The SLC discussed the issues indetail and approved for rejecting the proposal of 1. M/s Biomax Fules Limited,

2. M/s Hetero Dru

File No.10/2018/288

Page 6: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Sl No

Name & Address of th

e Unit

Meeseva No.

Natureof Incentives

Reason forrejection

1

M/s StyraxPharma Pvt. Ltd., Plot No.27B, JNPC, Parawada, Visakhapatnam District

C1011600046351

Investment Subsidy

The claim is not eligible as it isa Large Scale Industry.

Hence, the issue is placing before the SVC.

2

M/s Biomax Fules Limited, Plot No.S&T, VSEZ, Duvvada, Gajuwaka(M). Visakhapanam District

CI011500033352

Power Cost

Not furnished the shortfalls even after laps of 3 months.

e other (3) industries from the Commissionerate of Industries before rejecting the claim proposals.

GM,DIC, Visakhapatnam informed vide letter No.5419/A4/2013,Dt:05.09.2018 that Sl No. 4 has submitted short fall documents, inspection completed and report is being submitted.

Sl No. 1 short fall documents submitted and under process.

gs Limited,(Unit-IX),

Further, SVC is requested to analyze the shortfall documents called by the GM,DIC and the reasons for requesting the SLC not to reject the proposals in his letter dated 05.09.2018.

File No.10/2018/288

Page 7: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

3

M/s HeteroDrugs Limited,(Unit-IX), Plot No.1, Hetero Infrastructures SEZ Limited, N. Narasapuram (V), Nakkapalli (M), Visakhapatnam District

C1011500013400

Power Cost

Not furnished the shortfalls even after laps of 3 months.

4

M/s Mylan Laboratories Limited, Unit-10, Plot No.86, SEZ, JNPC, Parawada, Visakhapatnam

Power Cost

Not furnished the shortfalls even after laps of 4 months.

5

Request of the Enterprise

Enterprise

M/s. Immanual Transport, Rani Nagar, Anantapuram

The SVC discussed in detailed and opined that the supplier has confirmed the difference amount as discount in the mode ofgoodwill relationship and asthe entrepreneur has commenced venture , the DIPC may be advised to sanction the incentives as per the

The SLC observed that it is a case of appeal received in accordance to the AP-PSDGA - 2017 dated 04.01.2018. The issue was discussed in detail and advised the DIPC, Anantapur district to sanction the incentives as per the amount indicatedin the tax receipts furnished to the Transport department and to dispose off all

File No.10/2018/288

Page 8: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Promoter

Smt .G.Padmavathi

Activity

Transport

Price of the vehicle

Rs.15,03,000/- (as per the invoice no.VS/00917 dt.31.03.2017 ,

Rs.14,98,868/- ( tax receipt no.NET013685695 of Transport dept.)

DIPC decision dt. 31.01.2018

reject the proposal for sanction of Investment Subsidy as there is a difference in the amount s in the Tax receipt with a direction to initiate action on the persons who are responsible for duplication of the Invoice and Tax receipt.

amount indicated in the tax receipts furnished to the Transport department. Further it is opined that all such cases may be disposed off in the similar manner.

such cases in similar manner.

File No.10/2018/288

Page 9: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Dealer clarification -M/s.HITECHMotors, Tirupati

RT/R Amount :: Rs. 4,520/-[Tax (820)+ HPA fee(3000) + TR fee (500) + TR service charges (100)] dealer has considered the difference amount of Rs.388/- as an additional discount for goodwill relationship

Request

To sanction the Investment Subsidy as per the lesser value indicated in the Tax receipt.

File No.10/2018/288

Page 10: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

6 The GM,DICs of East Godavari, Krishna, SPSR Nellore and Srikakulam districts have recommended the following proposals for sanction of Financial Assistance under IIDF.

M/s. Veerabhadra Exports Private Limited, Sy No.116, Gurajanapalli (V) Karapa Mandal East Godavari District M/s.Fedora Sea Foods Private Limited, NH-16 (AH $%) Kovvur (V&M) SPSR Nellore District M/s.Satyavathi Biolife Sciences Limited, Adaviravulapadu (V) Nandigama (M) Krishna District M/s.BMR Industries Private Limited, Damavaram (V) Dagadarthi (M) SPSR Nellore District M/s.Teja Bio Fuels Private Limited,West Godavari district M/s.Coastal Acqua, East Godavari district M/s.VKT Pharma Private Limited, Srikakulam district M/s.Anjani Tiles Limited, SPSR Nellore district M/s.Nekkanti Sea Foods Limited, East Godavari district.

The proposals are sent along with required documents. But as per the new policy the MSMEs promoted by SC/STs/BCs and the units that granted special Gos are only eligible to avail Financial Assistance under IIDF.

Hence the SLC may take a view.

The SVC examined the orders issued videG.O.Ms. No.36Inds. & Commerce (IP & INF) Dept. dated: 29/04/2015and operational guidelines vide G.O.Ms. No.108 Industries & Commerce (P&I) Department, dated: 14/11/2015regarding IDP 2015-20 andopined to reject the 9 claim proposals for sanction of Financial Assistant under IIDF, since there is no provision for sanction the same under IDP 2015-20.

The SLC decided that the applications are not eligible for sanction of Financial Assistance under IDP 2015-20.

File No.10/2018/288

Page 11: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

7 Proposals of M/s. Gamesa Renewable India Pvt Ltd., IFFCO Kisan SEZ, Regadichelika(V), Kodavalur(Mandal) SPSR Nellore District For change of name as M/s. Siemens Gamesa Renewable Power Private Limited. It is a self financed industry and recommended by the GM,DIC.SPSR Nellore. The documents - (i) Format-1(A),(ii) Board of resolution, (iii) Pan card, (iv) Certificate of Incorporation copy of the company , (v) OC from bank and (vi) Power release certificate from SPDCL are furnished. As per IDP 2015-20., the Enterprise that availed incentives should obtain the NOC from the FIs concerned in respect of aided Enterprise/industry and Certificate of incorporation from Registrar of Companies (ROC) within the first six (6) years for MSEs and eight (8) for Medium and Large Industries from the DCP, before seeking the approval of SLC for any change of the constitution/Management/name & style of the Industrial Enterprise. The SLC may take a view.

The SVC examined the issue and opined that permission may be accorded for change of unit’s name from M/s.Gamesa Renewable India Pvt Ltd. to M/s. Siemens Gamesa Renewable Power Private Limited without any change in Management.

The SLC discussed the issue in detail and accorded permission for change of unit’s name without any change in Management.

File No.10/2018/288

Page 12: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

8 Proposal of M/s Surya Roshini Limited, Hindupur, Ananthapuram Investment Rs.37.46 Crs, Large Enterprise Line of activity :: GALVANIZED AND BLACK STEEL PIPES, Emp.:: 346 DCP :: 01/03/2017 Date of filing :: 12/09/2017 through online and on 14/09/2017 by manually in DIC Filed after lapse of 6 months from the DCP The GM,DIC, Ananthapuram District has informed that the Company has represented to accept claim application as received within time and sanction 100% subsidy. The issue was placed before the DIPC in its meeting held on 20/11/2017 for discussion and necessary orders, as a special case. The District Collector & Chairperson of DIPC had reviewed theAgenda with the Members of DIPC and approved for consider their claims as within time. Hence, the SLC may take a view.

The SVC examined the issue and opined that the SLC may take a view, since it is a policy issue.

The SLC discussed the issue in detail and decidedto consider the proposal and sanction 50% of eligible incentivesas per the operational guidelinesof IDP 2015-20, since it is belated claim.

File No.10/2018/288

Page 13: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

9 Proposals of M/s. Uma Spintex India Private Limited (Original),RS No.523 to 526, Tamirisa (V), Nandivada (M) Krishna District For sanction of for reimbursement of Pavala Vaddi for the period of 1st HY of 2015-16, mortgage duty and power cost for 1st and 2nd HY of 2015-16. On verification it is noticed that all the claims are already sanctioned and it had files twice. The GM,DIC, Krishna has recommended for rejection as they are duplicate. The SLC may take a view.

The SVC examined the issue and recommended for rejection of the claim proposalssubmitted in Meeseva vide No. CI011500034820,CI011500034667, CI011500045980 & CI011500034670, since they are repeated claims.

The SLC examined the issue andagreed for rejection of the claim proposals received through Meeseva vide No. CI011500034820, CI011500034667, CI011500045980 & CI011500034670, since they are repeated claims.

File No.10/2018/288

Page 14: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

10

M/s Spads Polyplast Products Private Limited, Jaggaiahpet, Krishna District Engaged in manufacturing of PP Woven sacks and caters Filed application for reimbursement of stamp duty and got sanctioned But they couldn’t file claims for reimbursement of Land Conversion & Mortgage Duty as there was no provision for applying through online. Hence, they have submitted the claims manually in the Office of the GM,DIC, Krishna District and requested to consider their claims for sanction of the same.

The SLC may take a view.

The SVC examined the issue and opined that the decision may be taken at SLC level, since it is policy issue.

The SLC examined the issue andadvised the GM, DIC, Krishna District to process the claims for sanction of incentives, if they have uploaded the required documents for Land conversion and Mortgage Duty along with the Stamp duty claim which was sanctioned earlier.

File No.10/2018/288

Page 15: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

11

Proposal of M/s Louis Dreyfus Commodities India (P) Ltd., Muthukur (M) SPSR Nellore For change of the name and management as M/s Louis Dreyfus Company India Pvt. Ltd. Line of activity :: Refining of edible Oils DCP :: 12/09/2012 Investment :: Rs.136.52 Crs. Employment :: 75 The GM,DIC, Nellore has recommended along with required documents. As per IIPP 2005-10, the Industrial units that availed incentives/ concessions should obtain the No Objection Certificate from the concerned financing institutions in respect of aided units before seeking the approval of Commissioner of Industries for any change of the constitution/Management Name & Style of the unit within the first six (6) years fromthe date of Commencement of Commercial Production. Hence, the SLC may take a view.

The SVC examined the issuein detailed and opined that the permission may be accorded for change of Management along with unit’s of Name from M/s. Louis Dreyfus Commodities India (P) Ltd. to M/s. Louis Dreyfus Company India (P) Ltd., subject to executing the agreement bond to the satisfaction of the Commercial Tax Departmentby both the Managements.

SLC discussed the issue in detail and agreed the opinion of the SVC.

12

The GM,DIC, SPSR Nellore Districthas recommended the proposal M/s. Pinnae Feeds Ltd., S.No:555/2556/2, 557&558, Bogole(V&M), SPSR Nellore District

The SVC examined the orders issue by the National Company law Tribunal and opined that the permission may

The SLC discussed the issue in detail and agreed the opinion of the SVC.

File No.10/2018/288

Page 16: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Proposal for according permission for amalgamation with M/s.Waterbase Limited Furnished required documents – (i) Format-1(A), (ii) NOC from YES Bank & ICICI Bank, (iii) National Company law Tribunal order copy and (iv) IEC Certificate from O/o the Joint Director General of Foreign Trade, Hyderabad. As per Para No: 14.1 of IDP 2015-20 “Prior approval of the SLC is necessary for any merger/amalgamation of Enterprises/industries. The Public and Private Limited Companies seeking merger/amalgamation of their group of companies shall submit an application to Commissioner of Industries through GM, DIC concerned along with the necessary orders of appropriate forum under Companies Act, NOC from the Financing Institution, amended LI/IL/IEM and Incorporation Certificate from the Registrar of Companies (RoC)”. As per Para No: 14.2 of IDP 2015-20 “The Partnership Firm shall submit NOC from their Financing Institution and Firm Registration. The Proprietary concern shall submit NOC from the Financing Institution”. SLC may take a view.

be accorded to M/s. Pinnae Feeds Ltd. for Amalgamation with Waterbase Ltd.,subject to executing the agreement bond to the satisfaction of the Commercial Tax Department by boththe Managements.

File No.10/2018/288

Page 17: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

13

The GM, DIC has informed that M/s. IVAX Paper Chemicals Limited, Gumpam (V), Poosapatirega (M), Vizianagaram District has filed the following claim applications and recommended to reject the proposals duly indicating the reasons.

Claim

Incentive / Period

Reasons for rejection

C1011500031667 dt.02.11.2015 - Meeseva

Sales Tax for 2014-15

DCP is 09.03.2015 , not paid any tax in March’15

Meeseva on 09.03.2015

Sales Tax for 2015-16

Claim filed through online for the same periodis sanctioned byCOI

Hence, the claim filed under Meeseva for reimbursement of Sales Tax for the year 2014-15 is to rejected. Placed before the SLC for taking a view.

The SVC examined the issue and opined that the claimsmay be rejected, since theproposal for the FY 2014-15 is not eligible and 2015-16 is a repeated claim.

The SLC examined the issue andagreed to reject the said proposals of M/s. IVAX Paper Chemicals Limited.

File No.10/2018/288

Page 18: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

14

M/s. Nisha Designs, Gorantla (M),Ananthapur District Vide GO Ms No:61, dt:10/05/2016,the Govt. has considered as Mega Project under Textile & Apparel policy 2015-20 Eligible for sanction of the IS @ 10% of PC limited to Rs.10 Crs. Present Capital invest is Rs.25.86 Crs. As a Mega Project is eligible Rs.2.58 Crs (@ 10%of PC) Whereas Large Enterprises with Investment of Rs. 25 Crs to Rs.50 Crs are eligible for @20% of Investment limited to Rs.4 Crs. Hence as a Large it is eligible for IS of Rs.4 Crs { 20% of 25.86 = 5.18 or 4} GO à Investment of Rs.41 Crs withgenerating employment to 2,100 nos. Other benefits – 100% Stamp duty, Transport subsidy , NALA tax reimbursement, IIDF, Water concession Unit is requesting to consider as Large Enterprise . SLC may take a view.

The SVC examined the issuein detailed and opined that all incentives may be sanctioned to the industry treating as Large Scale Industry as per the request of the unit, since the unit has also not fulfilled the investment criteria as per GO MsNo:61 Industries & Commerce (Programme-II) Department, dt:10/05/2016.

The SLC examined the issue in detail and advisedthe GM, DIC, Anantapuramu District and SVC to process the proposals of M/s.Nisha Designs, Gorantla (M), Anantapuramu treating the unit as Mega Project.

15

M/s.Avanti Feeds Limited, Bandapuram (V), Devarapalli (M), West Godavari District Working and engaging in mfg. o

The SVC observed that there is no representation from the DISCOMs and hence it is

The SLC discussed on the following expenditureincurred by M/s Avanti Feeds Ltd towards HT supp

File No.10/2018/288

Page 19: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

f shrimp feed Furnished required documents and requested to sanction Rs.46,06,465/- under IIDF. Self financed unit. Fixed capital Rs.46.48 Crs. Power connection by APEPDCLon 5.5.2016 with a CMD of 1600 KVA connected loan of 3485.3 KW + 70KW+60 KVA+ 20 KW under HT category. DCP 04.08.2016 The GM,DIC recommended the proposal with the approval of DIPC. Total expenditure of Rs.92,12,930/- and the DIPC has approved the proposal for sanction of Rs. 46,06,465/- under IIDF power supply The GM,DIC West Godavari Dist recommended for sanction of Rs. 46,06,465/- The expenditure eligible under IIDF comes as (15% of the total investment of Rs 46,48,34,000/- ) Rs. 6,97,25,100/-

opined to circulate the proposal to the DISCOM concerned for obtaining their confirmation on the Expenditure incurred by the unit for drawing power supply andremarks as the claim application is meant for power supply component only, before placing the issue in the ensuing SLC meeting.

ly for CMD of 1600 KVA duly certified by the Superintendent Engineer, Operation Cirle, SPEPDCL, Eluru and considered 1-3 items since the 4th item arranged at consumer premisesis not eligible as per IIDF guidelines:

S.No

Particulars

Qty

Amount

1

Erection of33 KV bayextension

1 No.

215299

7

2

Erection of33 LVLine with 100 Sq.mm.

6.5 Km

455344

8

File No.10/2018/288

Page 20: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

3

Erection ofinlineM=12GI Towers for crossing

2 Nos

109378

3

4

Erection of33 KV Terminaletc.

1 No

132147

8

Total

912170

6

1% Cess

91217

Gross

921292

3

Hence, the Committee has sanctioned Rs. 39,39,115/- including cess @ 1% (Rupees thirty nine lakhs thirty nine thousand one hundred and fifte

File No.10/2018/288

Page 21: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

en only) under IIDF.

16

M/s. Nellimarla Jute Mills CompanyLimited, Nellimarla Vizianagaram was established in the year 1939 with about employment to 5000 workers. The unit has become sick and referred to the BIFR. BIFR has sanctioned a Rehabilitation Scheme Vide GO Ms.No.229, Sales Tax deferment was extended to the unit in the 1st [phase 01.01.2004 to 31.12.2008 (5 years) The unit holder represented that the word in continuation mentioned in GO Ms. No. 229 . The Sales Tax deferment extended to the unit in the first phase is from 1.1.2004 to 31.12.2008 ( 5years). Out of which the unit availed sales tax deferment from1.1.2004 to 30.8.2004 only as the Government withdrew the sales tax deferment in view of not sanctioning of the BIFR package. The Government restore the same from June 2006 onwards. Thusthe unit could not availed sales tax deferment from September 2004 to May 2006 . The Govt, requested for remarks on availment of Sales tax deferment for the unclaimed period ie From September’2014 to May’2016.

The SVC examined the issuein detail andrecommended to SLC for taking a decision in its meeting after hearingthe views of the Unit promoters, GM,DIC and the lending Financial Institution if any.

The SLC observed that no direction had been issued to the Industries departmentregarding sanction of incentives in the Proceedings of BIFR and hence opined thatthe Committee has no jurisdiction to take a view.

File No.10/2018/288

Page 22: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

COI had informed that the unit is eligible for availing ST deferment for the unclaimed period and requested for the same. Govt. had requested to furnish theinformation and the GM,DIC and IFCI were requested to offer their remarks.

IFCI (Monitoring Agency) recommendthat GOAP should consider 100% deferment of Commercial Tax for further period of 5 years w.e.f. 1.1.2017. IFCI is opining that as per SICA (Sick Industrial Companies Act) guidelines the net worth of sick company shall become positive under sanctioned scheme. (Period of scheme shall not exceed 7 years.).

However in this case even after expiry of about 10 years the net worth of the company is negative at Rs. 38 crores as on 31.3.2016.

Government of AP requested to seek clarification from company in this regard. The quantum of relief sought by the company from Government of Andhra Pradesh may also be ascertained from the company and whether grant of the same by Government of Andhra Pradesh will lead to net worth turning positive?

17

The GM,DIC, SPSR Nellore Dist. has recommended the proposal of M/s. Louis Dreyfus Commodities India Private Limited , Muthukur (M) SPSR N

The SVC examined the issue and opined that the proposal may be rejected forsanction of financial assistance under IIDF, since the power

The SLC agreed to the SVC decision.

File No.10/2018/288

Page 23: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

ellore Dist filed for financial assistance under IIDF for REJECTION under 2005-10 scheme on the following reasons: 1. Common sharing towards 14 KM 33 KV line, 33 KV VCB with bay extension and 0.22 KM Railway crossing 2. The expenditure is chargeable to normal plan for the year 2011-12 of Rural Division/Nellore. As per the operational guidelines 2005-10, “Infrastructure like roads, power and water will be provided at door step of the industry for standalone units by contributing 50% of the cost of infrastructure from IIDF with a ceiling of Rs.1.00 Crore, subject to (a) the location should be beyond 10 kms from the Original Industrial Estates/IDA‟s havingvacant land/shed for allotment and (b) cost of the infrastructure limited to 15% of the eligible fixedcapital investment made in the industry. This assistance would beavailable for all eligible Large & Medium Scale industries and Mega projectsonly. No mention about whether the units sharing common infrastructure are eligible or not for availing IIDF.

line is a Common sharing towards 14 KM 33 KV line, 33 KV VCB with bay extension and 0.22 KM Railway crossing and the expenditure was borne by many units.

File No.10/2018/288

Page 24: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Since the above issue is a policy matter, hence, the State Level Committee may take a view for its decision and discussions.

18

The General Manager, District Industries Centre, Kurnool District has submitted the details of unit wise with DCP, Bank, UAM number of Sri D.Raja Kumar, Entrepreneur and his wife Smt. N. Blessina Gladis and requested to give clarification on the eligibility of multiple transport Enterprises promoted by Sri.Raj Kumarand his spouse. The details are as follows::

As per IDP 2015-20, Investment Subsidy shall be applicable to all eligible to a) new MSEs and b) Expansion/ Diversification of MSEs. The Development Commissioner (MSME), Ministry of MSME, GoI, New Delhi vide Cir.No. 5(2)/4/2015 MSME Pol. Dt. 29.09.2015, informed that the investments in Plant & Machinery/Equipments of all enterprises under sameownership shall be clubbed together while assessing the status of MSMEs as per provisions under

The SVC observed that there are four Enterprises establishedby the same promoter and his wife with different EM Part IIAcknowledgements /UAM with financial assistance from different Institutions. As the investment of these (4) units falls under Small Enterprise, they are eligiblefor sanction of investment subsidy and hence opined to advise the DIPC to consider the proposals as (4) individual Enterprises and sanction the incentives, as per the policy applicable.

The SLC examined all Enterprisespromoted by Sri.Raj Kumar and his wife individuallyas per their DCPsin phased mannerwith assistance from different Financial Institutions. The following have been noticed by the SLC::

The promoter has established the Enterprises in phased manner – 1st phase -A1(02.05.2014); 2nd phase -C1(16.06.2014) and 3rd

phase - A2(15.11.2014) and got incentives to a tune of Rs.47,99,810/- as against ceiling limit of Rs.50,00,000/- under IIPP 2010-15 as it continued in Small category status with the clubbing investments. Then the promoter establishe

File No.10/2018/288

Page 25: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

the MSMED Act, 2006. Whereas through circular no. F.No. 5(2)/4/2015-MSME Pol. Dt. 03.03.2016the above directions had been withdrawn. The SLC may take a view.

d 4th phase -B1(24.02.2016), 5th phase –C2 (25.06.2016)in IDP 2015-20 and as it continued in the Small Enterprise category, it is eligible for availing the incentives of Rs.15,92,804/- and Rs.25,42,400/- respectively. The 6th phase (25.10.2016) and the 7th phase (01.07.2017) are not eligible as the unit elevated to Medium Enterprise with these investments added to 4th and 5th phase of investments.Hence it is not eligible for availing incentives. The 1st phase –D1 (30.09.2015) and 2nd phase D-2 (04.07.2016) promoted by his spouse are eligible for availing Rs.11,20,950/- and Rs.16,33,500/- respectively, treating as individual unit.

File No.10/2018/288

Page 26: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

In view of theabove, the SLC advised theDIPC to process the proposals for sanction / release the incentives Rs.15,92,804/- and Rs.25,42,400/- respectively.

(may vary due tothe working condition of units) for the enterprisescommenced in 4th

phase and 5th phase promoted bySri.Raj Kumar and Rs.11,20,950/- and Rs.16,33,500/- respectively1st phase and 2nd

phase Enterprises promoted by his spouse, excluding the amount of Rs.47,99,810/-, released earlier.

19

Clarification sought by theGM,DIC, West Godavari District M/s. Amarthala Sasikanth,Sanigudem, Denduluru (M) Line of activity “Earth movers”.

The SVC examined the issue in detail and opined that incentives may be sanctioned for the Enterprises assisted by the Non Banking Financial Institution which are charging the rate of interest in the range, as mentioned in the IDP polic

The SLC examined the issue and opined that the DIPCs may sanction the incentives to the Enterprises assisted by the Non Banking Financial Institutions duly ensuring that the PLR rate charged is as pe

File No.10/2018/288

Page 27: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Assisted by Magma FincorpLtd, which doesn’t any PLR/BPLR/MCLR and theywere charging interest rateto the borrowers based on Magma reference rate. Unit filed claim for sanction of Investment Subsidy DIPC Meeting held on 30/05/2018 à Rejected since the unit holder Reason à Not furnishing the certificate for MCLR (Marginally cost based lending rate) and the rate of interest charged tothe unit from the BM, Magma Fincorp Ltd., Bhimavaram to decide the eligibility of the Incentives. (GM - Rate of Interest 12.51% and Flat rate 7.28% ) As per Para No: 6.4.12 of Operational guidelines of IDP 2015-20 policy, it is mentioned that “in respect of Enterpriseavailing term loan from Non Banking Financial Institution shall be PLR+/-2%. The SLC may take aview.

y ie. PLR+/-2%. r the IDP policy

20

Clarification sought by theGM,DIC, East Godavari District M/s. Venkateswara Travel

The SVC observed that the there is no difference in the eligible amount as the unit has filed application on 30.09.2015,

The SLC examined the issue in detail and advised the DIPCs to consider the date of permit as the Da

File No.10/2018/288

Page 28: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

s, Magatapalli(V), Mamidikuduru(M) promoted by SC Entrepreneur Purchased 2 transport vehicles i.e Innova 2.5Z(E3) + Maruti Swift Desire ZDI BS IV Investment Rs.28.16 lakhs. Financed with an investment of Rs.21.00 lakhs by SBI, Razole. Filed application under IIPP 2010-15. Date of Registration with RTA :: 31/03/2015; Date of 1st service bill, raised by promoter :: 31/03/2015. Date of issue of permit :: 01/04/2015 The date of filing of application :: 30/09/2015; Last date for availing 100% eligible subsidy :: 6 months from DCP (both cases eligible) Inspecting officer doubt - owner of the vehicle is not permitted to operate the vehicle in public placeswithout a valid permit and to clarify the DCP date

within (6) months from the date of registration (31.03.2015) as well as date of permit (01.04.2015).But to avoid such confusion in sanctioning of future claims the SVC opined to consider the date of registration or dateof permit whichever is later as the DCPof the vehicles.

te of Commencement of Production of the Enterprises.

File No.10/2018/288

Page 29: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

The DIPC à instructed to seek clarification on the DCP from the COI The COI’s earlier circular dt 4/10/2012à date ofregistration by RTA as the DCP

IIPP 2010-15 (31.03.15)

IDP 2015-20 (01.04.15)

Project cost

Rs.28.16 Lakhs

Limit on cost

No limit

Rs.15 lakhs per vehicle

Eligible subsidy

28.16X35%= Rs.9.85 Lakhs

28.16X35% = Rs.9.85 Lakhs

The SLC may take a view.

21

The SLC observedthat this is a case of appeal received from the e

File No.10/2018/288

Page 30: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Name and location of the enterprise

M CCos/s.Renuka Community Hall,

Tadepalligudem, West Godavari District

Line of activity

Function Hall

Financial Institution

APSFC, Eluru

Project cost

Rs.112.81 Lakhs (original – 12.03.2010

Rs.135.50 Lakhs ( Revised dt. 31.01.2012)

Rs.146.00 Lakhs (Revised dt.29.03.2016)

Construction commenced

2012 à applicable rates – APSFCdt. 11.02.2013

DCP

17.02.2016

Advancement subsid

y

Rs.28,65,000/-

ntrepreneur in accordance to the AP-PSGDA Public Services Delivery Guarantee Act- 2017 dated 04.01.2018. The SLC examined the report submitted by the Committee constituted by COI and decided to direct the DIPC, West Godavari district to considerthe cost of doors, plastic emulsion painting, overhead tank, Sanitation, stair case railing, Electrification etc in computation of eligible Investment Subsidy for an amount of Rs.32, 26,139/-, as recommended by theCentral Team subject to production of bills which are not furnished to the Inspection team of DIC on 30.07.2016.

File No.10/2018/288

Page 31: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Incentive recommendation de

tails

DIC Officers

Central team

DIPC

Date of report

30.07.2016

05.02.2018

25.05.2018

Fixed cost recommended

Rs.71,37,726/-

Rs.92,17,571/-

Rs.80,10,695/-

Investment subsidy

Rs.24,98,204/-

Rs.32,26,139/-

Rs.28,21,609/-

File No.10/2018/288

Page 32: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Reasons forvariations

As per rates of APSFC -13

Building – semi finished,

Lift not installed, Not consideredthe cost of Doors & plastic emulsion painting, overhead tank and Sanitation, stair case railing

Electrification (Operated with Hired Generator)

As per rates of APSFC -15

Cost of doors, terrace, emulsion painting, Over head tank, Sanitation costs are taken asper the certificate issued by APSFC

As per rates of APSFC -13

Not considered thecost of Doors & plastic emulsionpainting, overhead tank and Sanitation,stair case railing

Electrification stating that Bills are not submitted and as on Inspectiondate the works are not completed.

The SLC may take a view.

22

Agenda:: Request of the Enterprise.

The SLC observedthat there is no restriction on the manufacturing activities promoted by SC/ST entrepreneurs for becoming eligible underIDP 2015-20. But as the AP Food

File No.10/2018/288

Page 33: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Name and location

M/s. Pavan Sai Rice Mill, Sy No:59,Bhanumukkala(V), Banaganapalle(M), Kurnool District

Line of activity

Rice Mill

Promoter

Smt.E.Yellamma

Category

ST (Woman)

Investment

Rs.

Investment Subsidy

Rs.46,03,320/-

Status

Sanctioned by SLC on 10.03.2016 and to be released

Issue

In the GMs' conference held on 11.05.2018, it is informed that allthe claims pertaining to Food Processing units will be processed by the AP Food Processing Society.

Processing Society has informed that the rice mills are not eligible for availing incentives in AP Food Processing Policy 2015-20, it is decided to seek clarification from theGovernment to decide the Nodal agency for processing of all types of Food processing units promoted by SC/ST entrepreneurs in order to ensure the process of incentive claims in an effective andefficient manner without any ambiguity.

File No.10/2018/288

Page 34: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Remarks of APFPS dt. 18.06.2018

AP Food Processing Society hasinformed that they are unable to sanction Investment subsidy to the rice mills as the line of activity is in the ineligible list of AP Food Processing policy 2015-20.

The issue is placed before the SLC for taking a decision.

23

Agenda :: Request of the GM,DIC, GunturDistrict (Lr.No.Misc/C/2018 dt.13.07.2018)

Name and location of the unit

M/s.Siri Cold Storage,

Varagani (V), Pedanandipadu (M), Guntur District

Line of activity

Cold Storage

Investment onFC

Rs.6,40,11,000/-

Subsidy eligibility

(i) Rs.1,25,00,000/- under National Horticulture Mission/ Board Scheme

(ii) Rs. 20,00,000/- under IDP 2015-20

The SLC examined the issue in detail and opined that M/s.Siri Cold Storage is eligiblefor availing both incentives offered by the State and Central Government subjectto condition that the unit exists in Micro or Small Enterprise category only and the total Investment Subsidy including the subsidies of State Government and Central Government together will be limited to 75% of the investment of a particular component taken into consideration.

File No.10/2018/288

Page 35: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Issue

Whether the unit can avail both incentives

Extract of relevant para (5.1.3) of IDP

The total Investment Subsidy including the subsidies of State Government and Central Government together will be limited to 75% of the investment of a particular component taken into consideration.

The issue is placed before the SLC for taking a decision.

24

Agenda :: Request of the GM,DIC, Guntur District (Lr.No.Misc/C/2018 dt.09.07.2018)

Issue

Extract of IDP 2015-20

The SLC examined the issue and opined that the working capital component shall not be included in the Project cost while computation for the purpose of deciding an Aided unit.

File No.10/2018/288

Page 36: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Clarification on consideration of working capital component while computing the Project Cost. More than of the 40% of the PC aided unit will be considered as an Aided unit. Less than 40% à Self Financed unit

“Approved Project Cost means the cost of the project on different components as approved by the term loan lending institution or in case of joint financing by the lead term loan lending institution. The appraised project cost by Scheduled Commercial Banks / Financial Institutions registered by RBI for the purpose of sanction of term loan would be treated as approved project cost. However, thecomponent of working capital margin will not be considered for computing investment subsidy for MSEs”

The issue is placed before the SLC for taking a decision.

File No.10/2018/288

Page 37: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

25

Name andlocation of the unit

M/s.Sri Kasi Viswanatha Garments, D.No.3/15-1, Gannevaripalli (V), Tadipatri (M), Anantapuramu district

Line of activity

Readymade Garments

DCP

26.10.2016 -

Issue

Initially the unit worked for 21/2 months and met with Fire accident, Stocks and Fixed Assets were damaged and closed for 11/2 years , Unit will restart after their Insurance claims are settled, Clarification on consider to process or reject.

Supporting documents

Police complaint, FIR, Electrical Inspectorate certificate showing the cause of fire accident, MRO certificate, Fire Officer certificate, National Insurance Company certificate

IDP 2015-20

There is mention about such type of sanctioning of incentives at the timeof closure of an unit.

The issue is placed before the SLC for taking a decision.

The SLC examined the issue and referred to SVC to go through in detail duly assessing the evidences produced by the promoter.

26

The SLC examined the issue and observed that cold storage is eligible for availing in

File No.10/2018/288

Page 38: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Agenda :: Request of the GM,DIC, Kurnool district

Name andlocation

M/s.Akshaya Cold Storage (Solar Power Plant), Gargeyapuram (V), Kurnool (M), Kurnool District

Line of activity

Servicing Enterprise with Cold Storage facility

Issue

The unit has filed claim for sanction of Investment Subsidy under National Horticulture Mission and Power and Interest subsidy with Industries department

Clarification sought

1. Cold storage can be considered

as Industrial activity or Servicing activity

2. If it is considered as Service, is it eligible for availing incentives under Swachch Andhra

centives under IDP, as per the LIST OF INELIGIBLEINDUSTRIES of Sl No. 22. (“Servicing and /or repairingunits’ activities except Cold storage and Seed processing units”)

File No.10/2018/288

Page 39: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

IDP 2015-20 policy

(5.10.1) All eligible Industrial Enterprises shall submit their claims in the prescribed application form given at Annexure - XI for subsidy on specific cleaner production measures

Servicing and /or repairing units activities except Cold storage and Seed processing units are ineligible for availing incentives.

The issue is placed before the SLC for taking a decision.

27

Agenda :: Request of the GM,DIC, Kurnool district

Name and location

M/s.Om Sri Umamalleswara Bamboo Ply Medium Density Fibre Wood Products, Sy.No.256, Julepalli (V), Gospadu (M), Kurnool Dist.

Line of activity

Bamboo Ply wood Medium Density Fibre Wood products

The SLC examined the issue in detail and decided that the unit is eligible for availingincentives as it is engaged in Bamboo plywood medium density fibre wood products.

File No.10/2018/288

Page 40: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Investment

Rs.2.00 Crs Employment :: 40 Nos.

Status of the unit

Land acquired, Invested Rs.30 Lakhs, DPR submitted to UnionBank, Nandyal. The BM is insisting a letter from DIC stating that the unit is eligible for availing Incentives

Clarification sought

Whether the activity is eligible for availing incentives

IDP 2015-20policy

All types of Saw-mills, except Medium Density Fibre Board(MDF), Particle Board (PB) and furniture made of MDF and PB are ineligible.

Mega project proposed by M/s. Greenply Industries Ltd. For its Greenfield MDF plant was sanctioned tailor made benefits –GO Ms.No.15 dated 23.08.2016 – Invt:: Rs.758.15 crs, Emp:: 225 direct + 350 indirect

File No.10/2018/288

Page 41: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

The issue is placed before the SLC for taking a decision.

28

Agenda :: Directions of the Govt. (Memo No.5541/P&I/A1/2018 dated 21.05.2018

Name and location of Unit

M/s.Palnadu Solar Power Pvt. Ltd.,Inumella (V), Ipur (M), Guntur District

Line of activity

Solar Power Project – 5 MW – Supplying power to APTRANSCO

DCP

31.03.2016

Promoter

SC Woman

Fin.assistance

1. Rs.12.80 Crs – Syndicate Bank and (ii) Rs.15 Crs – IFCI, GoI

The SLC observedthat under IDP 2015-20, only Micro and Small Enterprises, promotedby SC/ST entrepreneurs are eligible for availing Investment Subsidy and hence it is decided to obtainpermission from the Government to process the proposal of M/s.Palnadu Solar Power Private Limited, Guntur district for sanction of Investment subsidy.

File No.10/2018/288

Page 42: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Request of unit

To condone the delay and to permit her to avail incentives

Directions of the Govt.

Govt.vide memo –condoned the delay and permission granted to enter the details forsanction of incentives

IDP 2015-20 policy

Special Category MSEs including Automobile, Biotechnology Inds. are eligible for Investment subsidy.

5.10.3.c) Use of renewable source of power for captive consumption (solar, wind and biomass plants etc.)

The GM was requested to furnish compliance report on 06.06.2018, reminded on 02.08.2018, 18.08.18 and 28.08.18 but no response has been received.

The issue is placed before the SLC for taking a decision.

29

The SLC decided to direct the GM,DIC to forward the proposals to the Department of IT & Electronics,

File No.10/2018/288

Page 43: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Agenda :: Request of the GM,DIC, Chittoor district

Name and location

M/s.Dixon Technologies (India) Limited and M/s.Ail Dixon Technologoies Private Limited, M/s.Karbon etc. Electronic Industries

Line of activity

IT and Electronic Industries

Issue

Units have filed applications through online with Industries department

Clarification sought

To process or not as the proposal pertains to Department of IT & Electronics

The issue is placed before the SLC for taking a decision.

as the activity falls under electronics category.

30

The SLC examined the issue in d

File No.10/2018/288

Page 44: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Agenda :: Request of the GM,DIC, Kurnool district

Name and location

M/s.Shrivi Green Energy , Chetlamallapuram (V), Kallur (M), Kurnool Dist.

Line of activity

Light diesel oil, carbon briquettes (Fuel energy) by pyrolosis of plastic waste

Issue

Units have filed applications through online with Industries department

Request

promoted to reduce plastic pollution and to solve plastic menace

IDP 2015-20

Tyre pyrolosis is not eligible for availing incentives.

etail and decided that M/s.Shrivi Green Energy, Kurnool District is eligible for availing incentives as it is engaged plasticparalysis.

File No.10/2018/288

Page 45: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

The issue is placed before the SLC for taking a decision.

31

Agenda :: Request of the Company

Name of unit

M/s.Ultratech Cement Limited, Bhogasamudram (V), Tadipatri (M), Anantapur Dist.

Line of activity

Cement Plant – Waste Heat recovery system -16MW Captive power generation

Investment

Rs.111.45 Crs

The SLC observedthat the processof power generation from waste heat gases falls under Red category as per the classification of APPCB and as the activity has not been included in the list of green measures, as per pera no. (5.10.3) of IDP2015-20, the captive power generation plant proposed by M/s. Ultratech Cement Limited, Bhogasamudram (V), Tadipatri (M), Anantapur District is not eligible to availing incentives under Swatch Andhra.

File No.10/2018/288

Page 46: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Issue

Investment subsidy to Waste Heat recovery plant under Swachch Andhra

Remarks of APPCB

in the similar case of M/s Philips Carbon Black Ltd(PCBL), JCEE, APPCB has issued clarification that the power generated from waste heat gases comes under Red category. Hence, the process can not be considered under cleaner production measures and sustainable green measures.

File No.10/2018/288

Page 47: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

IDP 2015-20

5.10.3 GoAP will provide 25% subsidy of total Fixed Capital Investment of the project (excluding cost of land, land development, preliminary and pre-operative expenses and consultancy fees) for below mentioned green measures with a ceiling of Rs. 50 crore for all types of industries.

a) Waste water treatment: Constructing effluent treatment plant and sewage treatment plant and using recycled water for industrial purposes especially zero discharge systems.

b) Green Buildings: Buildings which obtain green rating under the Indian Green Building Council (IGBC/LEED Certification) or Green Rating for Integrated Habitat Assessment (GRIHA) systems.

c) Use of renewable source of power for captive consumption (solar, wind and biomass plants etc.)

d) Installing Continuous Emission Monitoring System (CEMS) for red category industries. The information should be disseminated continuously to APPCB.

e) Adopting rain water harvesting; restoring water bodies by de-silting defunct water bodies.

f) Any other environment management project approved by EmpoweredCommittee of Secretaries.

File No.10/2018/288

Page 48: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

32

Agenda :: Govt. Memo on Implementing Comprehensive program on HIV/AIDS prevention in large Industries (No.3097/Coordm/A2/2018 dated 04.05.2018

Directions

Govt. requested the COI to organise a workshop on STI/HIV/AIDS prevention and care treatment in respect of Large and Mega Projects with mutually convenient date of AIDS Control Society

Intimation

Intimation has been sent through mail and by phone to the Joint Director concerned to attend the SLC meeting as per the instructions of the COI

The issue is placed before the SLC for taking a decision.

The SLC examined and differed, since the representation of AP Aids Control Society has not attended the Meeting.

File No.10/2018/288

Page 49: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

33

Agenda :: Govt. directions – feedback on necessity of Inspections and proposal of 3rd party Inspections

East Godavari

The GM, DICs East Godavari has convened a meeting with (42) Industries and DIC officials on 29.08.2018. It is reported that the promoters (42) Units have erroneously stated that (i) Inspections are not required at the time of disbursement and (ii) 3rd party verification is not required.

Srikakulam

Existing is better than the proposeddue to (i) non accountability of 3rd party agencies, (ii) further delay in disbursement as they experienced in PMEGP scheme and Food Processing Scheme.

The issue is placed before the SLC for taking a decision.

The SLC observedthe feedback received from the GM, DICs of East Godavari, Krishna, Kurnool and Srikakulam, districts and opined that inspections are required in order toensure that the sanctioned incentives are being released to the working units only and engaged in the same activity for which it was sanctioned. Further it is opined thatthe 3rd party inspections are not trustworthy because they are not held accountable. Hence the SLC requested the COI to request the Government to continue with the present system.

File No.10/2018/288

Page 50: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

34

G.O. details

Scheme

Financial assistance

No.85 dt. 20.12.2016

Reimbursement of course fee for Contractor Development Programme

Rs.1.00 Lakh

per head

No.84 dt. 20.07.2018

EDP and Skill Development Programme

---

G.O.Ms.No.86 dt. 20.07.2018

Reimbursement of course fee for professional certificate courses Scheme

Rs.3.00 Lakh per head to

PG Diploma in Entrepreneurship, PG Diploma in Management, MBA Diploma in Entrepreneurship/ Management

The Chairman of SLC has briefed the operational guidelines issued by the Government for implementation of new schemes for the benefit of SC/ST entrepreneurs and all members are requested to give wide publicity/ awareness.

35

The SLC noticed that (9) proposals are pending for submission of ins

File No.10/2018/288

Page 51: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

District

JD (MSME)

Grand Total

Inspection Complete

d

Pendingfor Inspection

Total

Anantapur

4

Chittoor

18

East Godavari

3

3

3

Guntur

3

3

3

Krishna

1

1

1

Kurnool

1

1

1

Nellore

1

1

3

Srikakulam

1

1

1

pection reports and (46) are pending for inspection by the StandingScrutiny Committees. As these proposals are pending since long time, the SLC advised the COI to take necessary action for obtaining the documents required for inspection of SSC and place the same before the State Level SVC Meetings for due verification of the same and direct the SSCs to inspect and submit the reports in a month.

File No.10/2018/288

Page 52: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Visakhapatnam

12

12

15

Vizianagaram

1

1

1

West Godavari

1

3

4

4

YSR District

1

Total

1

26

27

55

36

Employment details and CSR activities uploaded

District

No.of Units

No. of furnished

No.of CSR activities

The SLC observedthat only (120) Enterprises have uploaded the details of their (38,569) employees and (93) photos pertaining to the CSR activities taken by their managements.

File No.10/2018/288

Page 53: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Guntur

44

13,895

13

Krishna

23

5,603

65

West Godavari

21

5,281

5

Prakasam

10

4,985

1

S.P.S Nellore

9

2,933

5

Visakhapatnam

4

798

3

File No.10/2018/288

Page 54: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Kadapa

3

1,954

East Godavari

2

437

1

Kurnool

2

1,465

Anantapur

1

581

Vizianagaram

1

637

Total

120

38,569

93

File No.10/2018/288

Page 55: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

37

The SLC has reviewed the Claim applications received for sanction / rejection of various incentives under IIPP – 2005-10, IIPP 2010-15 & IDP 2015-20, scrutinised & recommended by the SVC in its Meeting held on 13/04/2018, 31/05/2018 & 14/08/2018. The details of claims recommended and differed by the SLC are as follows::

A B S T R A C T

Type of Incentives

No. of claims

Amount Recommended by SV

C in Rs.

Deferred by SLC

Sanctioned by SLC

No. of claims

Amount in Rs.

No. of claims

Amount in Rs.

Interest Subsidy

48

347246811

20

213320866

28

133925945

Power cost

186

618242278

49

261447242

137

356795036

Sales Tax

19

319195814

7

159673702

12

159522112

Stamp Duty

6

17330921

0

0

6

17330921

File No.10/2018/288

Page 56: INDUSTRIES, 1st · 2019-01-09 · ps of 3 months. e other (3) ind ustries from t he Commissio nerate of Indu stries before rejecting the c laim proposals. GM,DIC, Visak hapatnam in

Misc

4

542180

1

500000

3

42180

Total

263

1302558004

77

634941810

186

667616194

Total Rs. in crores

130.25

63.49

66.76

The SLC has sanctioned 186 cases for an amount of Rs 66.76 Crores (List appended as Annexure – I)The SLC observed variations between the amounts recommended bythe GM, DICs and amounts computed at COI. Hence deferred (77)cases (List appended as Annexure –II) and advised to re-verify andreconcile with the concerned General Managers and place before nextSLC through SVC for taking a view.

The SLC observed that all the above claims are filed in time as per theguidelines of respective policies i.e IIPP 2005-10, IIPP 2010-15, IDP 2015-20 andthe extended policy issued vide G.O. Ms. No. 168, Industries &Commerce (Prog-II)Department, dt.30/11/2016.

COMMISSIONER OF INDUSTRIES

& CHAIRMAN OF SLC.

File No.10/2018/288