Quick Revision AP Economy Part-3

Quick Revision Points AP Economy Part-3

Industries

✦ Manufacturing sector accounts for about 11% of the GSDP. Sector wise major districts by output is shown in following figure

✦ Government of Andhra Pradesh has identified 10 thrust areas for greater focus:

1. Agro & Food Processing
2. Life sciences (including pharmaceutical, biotechnology & medical equipment)
3. Textile & Apparel
4. Electronics & InformationTechnology
5. Aerospace& Defence Manufacturing
6. Automobiles& Auto Components
7. Petroleum, Chemicals, (including Fertilizers) and
   Petrochemicals
8. Energy
9. Mineral based industry
10. Leather

✦ District Industries Centres were established to serve as nodal agencies in the district to assist entrepreneurs for establishment of Industries. These DICs are implementing agencies of MSMED Act.

✦ Swarna Andhra @2047 Vision: Andhra Pradesh aims to be globally recognized for the following by leveraging its social capital, promoting gender equality and emphasizing green potential.

• The first focus area of the state is to develop a widespread Economic Prosperity with a target of $2 Trillion Economy.
• The second focus area is to provide high quality of life for all by ensuring tech-enabled and affordable healthcare accessible to all.
• The third focus area is sustainable growth of the state by creating 2-3 major city agglomerations.

✦ AP Industrial Development Policy 2023-27 providing incentives for the industries established during the period from 01/04/2023 to 31/03/2027.

✦ Micro, Small and Medium Enterprise (MSME) classification Criteria as per the MSMED Act 2006 and based on the notification released on 1st June 2020 is as follows

• Micro Enterprises: Investment on Plant and Machinery or Equipment: Not more than Rs.1 crore and AnnualTurnover: not more than Rs. 5 crores.
• Small Enterprises: Investment in Plant and Machinery or Equipment: Not more than Rs.10 crore and AnnualTurnover: not more than Rs. 50 crores.
• Medium Enterprises: Investment in Plant and Machinery or Equipment Not more than Rs.50 crore and AnnualTurnover: not more than Rs. 250 crores.

✦ Large Industrial Project : A large Project is a unit which has investment and turnover thresh holds more than the Medium enterprises as described in the MSMED Act,2006.

✦ Mega Industrial Project: Projects with Investment of more than Rs.1000Cr or direct employment generation of more than 2,000 will be accorded a megaindustry status.

✦ Incentives for Large Industries: (Including SC/STs ) Reimbursement of net SGST for

• Category-I located Industry :100% net SGST for 5 yearsupto 100% FCI (excluding land).
• Category-II located Industry:100% net SGST for 5 years upto 75% FCI (excluding land).
• Category-III located Industry:100% net SGST for 5 years upto 50% FCI (excluding land).
  

✦ Global Investors Summit 2023 was held in Visakhapatnam with the theme “Advantage Andhra”. It was a significant event aimed at attracting investment and promoting the state as a prime business destination. The following special package of Incentives has proposed –

✦ Medium Enterprises will be provided the additional incentives in addition to the incentives available for Medium Enterprises Category under APIDP 2023-27 viz. 100% reimbursement of Stamp duty, 100% reimbursement of land conversion charges and Reimbursement of 50% of total infrastructure cost limited to Rs.1.00 Crore.

✦ Large/ Mega/ Ultra-Mega Industries will be provided the additional incentives, in addition to the incentives available for Large Industries Category under this Policy i.e APIDP 2023-27 viz. 100% reimbursement of Stamp duty, 100% reimbursement of land conversion charges and Reimbursement of 50% of total infrastructure cost limited to Rs.1.00 Crore.

✦ Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry launched the Ease of Doing Business (EoDB) program in 2015. AP is consistently ranked No.1 since BRAP 2016 up to 2020-21.

✦ National Single Window System (NSWS) is a onestop portal for investors and businesses to obtain approvals and clearances from both the Central and State Governments.

✦ Andhra Pradesh Single Desk Portal (APSDP) was envisioned as a one stop portal to provide all necessary clearances for starting and operating an industry in the state within stipulated timelines and thereby providing seamless G2B services. Since 1st April 2023 to 31st March 2024, a total of 17,143 applications are received, out of which 16,914 applications are approved with a compliance rate of 98.66% within SLA.

✦ Government of AP has organized four Investor Summits during the period 2014 to 2024 to position state as Best-in class investment destination and to showcase the State’s business friendly policies.

✦ During the 4 summits i.e 3 Partnership Summits from 2016 to 2018 and Global Investors Summit 2023, 441 MoUs signed, of which 122 companies are established and commenced production with a committed investment of Rs.1,26,411.50 Crores and committed employment to 1,90,065 people.

✦ MSMEs contribute to approximately 8% of the Country’s GDP, 45% of the manufacturing output and 40% of exports. MSMEs provide the largest share of employment after agriculture.

✦ 2,71,341 MSME were established with an investment of Rs.8286.48 crores and provided employment to 19,86,658 persons during the year 2023-24.

✦ Prime Minister Employment Generation Programme (PMEGP) is a Central Sector Scheme funded by the Ministry of Micro, Small and Medium Enterprises. The scheme is implemented by KVIC in association with KVIBs and State Governments through District Industries Centres. The objective of the PMEGP is to generate employment opportunities in rural and urban areas.

✦ PM Vishwakarma Yojana is a central sector scheme launched on 17th September 2023 by the Prime Minister to provide end-to-end support to artisans and crafts people who work with their hands and tools. In AP, so far 20,44,732 artisans are enrolled which ranks no 4 in India.

✦ Trade Receivables Discounting System (TReDS) is an Electronic Platform for Financing of Trade Receivables of MSMEs.

✦ Raising and Accelerating MSME Performance (RAMP) is a world bank supported Central Sector Scheme aimed at enhancing the performance of MSMEs in India.The duration of the scheme is 5 years (FY 2022-23 to FY 2026-27).

✦ Micro, Small and Medium Enterprises Development Act 2006, provides for constitution of Micro and Small Enterprises Facilitation Council by State Governments in their respective State for redressal and recovery of amount due to delayed payments.

✦ APMSE Facilitation Council (quasi-judicial body)provides impetus towards facilitating the payments to MSEs from their buyers.

✦ Andhra Pradesh is the sixth largest exporting State of India. Andhra Pradesh contributes

• 88.05% of tobacco exports
• 75.71% exports of Silver
• 47.85% exports of Fertilizers
• 40% of the Marine exports
• 36.84% exports of Ship, Boat & Floating structures
• 10.32% of Bulk Drugs
• 7.85% of Drug Formulations of India are from Andhra Pradesh.

✦ Government of AP have issued Andhra Pradesh Export Promotion Policy (APEX 2022-27) to establish Andhra Pradesh as a leading export hub in the country through development of world class logistics and export infrastructure.

✦ Under the scheme District as Export Hubs, Govt. of India have identified 3 districts viz., Visakhapatnam, East Godavari and Guntur in 1st phase to implement the scheme.

✦ Government of India (GoI) has announced a National Manufacturing Policy, 2011, with the objective to enhance the share of manufacturing in GDP to 25% within a decade and creating 100 million jobs.

✦ Government of Andhra Pradesh is working on implementation of the three industrial corridors.

• Visakhapatnam – Chennai Industrial Corridor (VCIC)
• Chennai – Bengaluru Industrial Corridor (CBIC)
• Hyderabad – Bengaluru Industrial Corridor (HBIC)

✦ VCIC is part of East Coast Economic Corridor and it is the first coastal economic corridor in the country. It is aligned with the golden quadrilateral and covers more than 800 km of the state of Andhra Pradesh’s coastline.

✦ VCIC is proposed as a node centric development platform with five nodes:

• Vishakhapatnam Node
• Machilipatnam Node
• Donakonda Node
• Yerpedu – Srikalahasti Node
• Kopparthi of Kadapa Node

✦ Department of Industries (Govt. of Andhra Pradesh) has established four Project Implementing Units and a Project Management Unit – Department of Industries (DoI) to effectively co-ordinate with ADB on the project preparedness activities and monitor the progress of VCIC

• Andhra Pradesh Industrial Infrastructure Corporation (APIIC)
• Andhra Pradesh Road Development Corporation (APRDC)
• Greater Visakhapatnam Municipal Corporation (GVMC)
• Transmission Corporation of Andhra Pradesh (AP Transco)

✦ Chennai Bangalore Industrial Corridor (CBIC) has three nodes namely Tumakuru in Karnataka, Krishnapatnam in Andhra Pradesh and Ponneri in Tamil Nadu.

✦ Hyderabad Bengaluru Industrial Corridor (HBIC) will have an influence area spread across three states Telangana, Andhra Pradesh and Karnataka. HBIC is an extension of Hyderabad Nagpur Industrial Corridor (HNIC) with an objective to connect central parts of the country with southern parts. Under HBIC, Orvakal node in Andhra has been identified for development.

✦ Andhra Pradesh Industrial Infrastructure Corporation Ltd. (APIIC), an undertaking of Govt. of Andhra Pradesh, is a premier organization in the state, mandated with the objective of providing industrial infrastructure through the development of industrial parks across the state. APIIC is the Nodal Agency for all Industrial Infrastructure Projects including IT, Biotech, Apparel Parks and SEZ in the State.

✦ Ministry of Food Processing Industries, Government of India sanctioned for establishing a Mega Food Park at Mallavalli, Bapulapadu Mandal, Krishna District.

National Industrial Manufacturing Zone, Prakasam (NIMZ): Government of India has announced the National Manufacturing Policy, 2011 with the objective of enhancing the share of manufacturing in GDP to 25% within a decade and creating 100 Million jobs.

✦ VCIC hosts three industrial nodes at Vizag, Chittoor and Kopparthy.

• Vizag Node: Under this node, APIIC proposed to develop 2 clusters – Atchuthapuram-Rambilli Cluster and Nakkapalli Cluster.
• Chittoor Node: Srikalahashi-yerpedu cluster.

✦ Andhra Pradesh Gas Infrastructure Corporation (APGIC) was incorporated on 2nd September, 2009 under the provisions of Companies Act as a State Government Company. The objectives of the corporation are exploration and production activities particularly in Krishna-Godavari Basin (KG Basin) to make Andhra Pradesh a gas based economy.

✦ APGIC incorporated a Company by name A.P Gas Distribution Corporation Ltd (APGDC) to undertake laying of Natural Gas pipelines, regional grids, KSPL, City Gas Distribution (CGD) networks in the State.

✦ APGDC was authorized by Petroleum and Natural Gas Regulatory Board (PNGRB) in July 2014 to lay, build, operate and expand Kakinada – Srikakulam Natural Gas Pipeline (KSPL) Project. KSPL is part of National Gas Grid (NGG). KSPL connects the Visakhapatnam, Vizianagaram and Srikakulam districts of Andhra Pradesh with NGG.

✦ Godavari Gas Private Limited (Joint venture of APGDC & HPCL) was authorized by PNGRB, the regulator, to lay, build operate or expand City GAS network for East Godavari & West Godavari Districts.

✦ Annual Survey of Industries is the principal source of Industrial Statistics in the State. It provides industrial statistical information. ASI conducted once in a year.

✦ Index of Industrial Production (IIP) is a yardstick for measuring industrial growth. IIP is estimated monthly for the manufacturing, mining & quarrying and electricity sectors. IIP in the State is being compiled with base year 2011-12 for 23 industrial classifications at 2- digit level under manufacturing sector.

✦ IIP is compiled as a simple weighted arithmetic mean of production relatives by using Laspeyre’s formula. IIP is calculated and published monthly by the Central Statistical Organisation (CSO) in India.

✦ Minerals are one of the main sources of revenue to Andhra Pradesh popularly called as ‘RatnaGarbha’and also a major contributor for the economic growth of the State.

✦ There are 169 Mining leases for Major Minerals and 4,422 Quarry Leases for Minor Minerals existing in the state as on date.Nearly 90% of the mines fall under small sector and remaining 10% under medium and large sectors.

✦ Areas of Agnigundala, Bondalamottu in Guntur district are famous for mining of Copper, Zinc, Silver and other base metals.

✦ Alkaline and ultra-basic rock formations in Guntur and Prakasam districts are enriched in Nepheline Syenite.

✦ AP contains huge Uranium deposits in Thummalapalli,YSR Kadapa district.

✦ Dharwar Super Group Meta sediments contain rich deposits of Iron Ore conûning to Bellary Reserve Forest and surrounding areas in Ananthapuramu District.

✦ Many low-grade iron ore deposits are in Prakasam, Krishna, Kurnool and YSR Kadapa districts.

✦ AP is known for exclusive Granite varieties – Chimakurthy Black Galaxy, Steel Grey, Ocean Blue, Black Pearl in Prakasam, Srikakulam Blue in Srikakulam, Vizianagaram Green in Vizianagaram, River White, Kashmir White & Moon White in Visakhapatnam, Yellow Granite, in East Godavari, Silver Pearl, Indian Labrador, Blur Paradise, Copper Green, Platinum Blur,, in Guntur, Viscon White, Tiger Black, Kuppam Green English Teak, in Chittoor, Pista Green, in YSR Kadapa, Chilli Red in Ananthapuramu and Chocolate Brown in Kurnool.

✦ There are about 2,00,310 handloom weavers in cooperative fold and 1,58,902 in outside cooperative fold.

✦ There are about 81,000 Power looms working in the State both in cooperative and outside cooperative fold.

✦ There are 1282 Weavers Cooperative Societies in the State consisting of Cotton-896, Silk-325, Wool-61.

✦ There are 166-Tailor Societies and 193- Powerlooms and other societies. There is one Apex society i.e. APCO for marketing the handloom products.

✦ There are 123 State Level Public Enterprises (SLPEs) functioning in the State.

Source: AP Socio Economic Survey