Govt enhances sops for tribal entrepreneurs

Tribal entrepreneurs in the state will now get a 50 per cent capital investment subsidy of up to Rs 50 lakh besides several other incentives, which have been reworked by the Andhra Pradesh government in a bid to encourage entrepreneurship among tribal population.

Under the present industrial policy, they were enjoying a 20 per cent capital investment subsidy up to a maximum of Rs 20 lakh.

This apart, the government has directed the state-owned Andhra Pradesh Industrial Infrastructure Corporation (APIIC) to develop modern industrial estates in scheduled areas where tribal entrepreneurs would get preferential allotment.

Of the plots in the existing industrial estates, six per cent has been reserved for tribal entrepreneurs. The government has asked the Andhra Pradesh State Financial Corporation (APSFC) to beef up lending on priority to scheduled tribe entrepreneurs.

B Sam Bob, principal secretary, industries department, has issued orders to this extent while amending the existing 'Industrial Policy 2005-10'.

According to the orders, the 50 per cent tax paid during first financial year would be ploughed back as a grant by the government towards the payment of tax during the next year with regard to ST entrepreneurs in place of the existing 25 per cent provision.

Tribal entrepreneurs in the state will now get a Re 1 per unit subsidy on power consumption as against the existing 75 paise, during the first year of operations with a guarantee to keep the tariff unchanged for the next four years.

Similarly, the rebate on land cost has been increased to 33.33 per cent from the existing 25 per cent though the upper limit for the incentive has been kept unchanged at Rs 5 lakh.

The government has also enhanced the interest subsidy on prime lending rate to 5 per cent from the present 3 per cent for a period of five years while keeping the upper limit at Rs 5 lakh per year unchanged.

In yet another major relief, the government has reduced the industry contribution to 25 per cent for providing infrastructure like roads, power and water from the present 50 per cent.