Government Incentives for Green Factory : Andhra Pradesh

March 13, 2020

Government Incentives for IGBC Green Factory : Andhra Pradesh


To promote Andhra Pradesh as an attractive and competitive destination for industrial investments and also emphasis on the sustainabel growth in the region, the State Government has offered various incentives/benefits to all eligible new industrial enterprises set up in the State. 

The Scheme covers the projects which commence Commercial Production on or after 1.04.2015 but on or before 31.03.2020 duly covering the whole of the State except the Municipal Corporation limits of Vijayawada, Greater Visakhapatnam Municipal Corporation and Core Capital area of Capital Region Development Authority (CRDA) except the Zones notified as Industrial areas therein. However, the service activities set up across the State including all Municipal Corporation limits and the core capital of CRDA limits as appended in Annexure–II are eligible only for investment subsidy and all other Service / Business activities are not eligible for any incentives set up anywhere in the State.

Under the new “Industrial Development Policy (IDP) 2015-2020”, the Government approved the following fiscal benefits covering the categories of 

(a)Micro, Small & Medium Enterprises

(b)Large Industries (c)Scheduled Caste & Scheduled Tribe Entrepreneurs 

(d)Backward Class Entrepreneurs

(e)Women Entrepreneurs and

(f) Mega Projects:-.

Below are list of green investments that will subsidized by the government :

  • 25% subsidy for sustainable green measures on 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  50 crores. 
    1. Waste water treatment: Constructing effluent treatment plant and sewage treatment plant and using recycled water for industrial purpose, especially zero discharge
    2. Green Buildings: Buildings which obtain green rating under the Indian Green Building Council (IGBC/LEED Certification) or Green Rating for Integrated Habitat Assessment (GRIHA)
    3. Use of renewable source of power (erecting captive sun, wind and biomass plants ).
    4. Installing Continuous Emission Monitoring System (CEMS) for red category The information should be disseminated continuously to APPCB.
    5. Adopting rain water harvesting; restoring water bodies by de-stilting defunct water bodies.
    6. Any other environment management project approved by Empowered Committee.