File No.INC02-17035/19/2018-I&I-I DOI GOVERNMENT OF ANDHRA PRADESH COMMISSIONERATE OF INDUSTRIES:AP: VIJAYAWADA From To The Director of Industries, All SLC Members. Govt. of Andhra Pradesh, 1st Floor, Government Printing Press Buildings, Mutyalampadu, Vijayawada 520 011 e.Letter No.INC02-17035/19/2018-I&I-I DOI, dt: 27/02/2020 Sir, Sub: IIPP 2005-10 & IIPP 2010-15 & IDP 2015-20 – Minutes of 22nd SLC Meeting held on 23-12-2019 at 11.00 AM in the Conference Hall of the Commissionerate of Industries, 1st Floor, Government Printing Press Buildings, Mutyalampadu, Vijayawada –Communicated – Reg Ref: 1) Minutes of the SLC Meeting held on 27/05/2006 2) G.O.Ms. No.108, Industries and Commerce(P&I) Dept., 14/11/2015 3) 22nd SLC Meeting held on 23-12-2019 *** The Minutes copy of the 22nd State Level Committee (S.L.C.) Meeting for sanction of incentives held on 23-12-2019 at 11.00 AM in the Conference Hall of the Commissionerate of Industries, 1st Floor, Government Printing Press Buildings, Mutyalampadu, Vijayawada-11 is here furnished for necessary information. Encl: A copy of 22nd SLC Minutes Yours faithfully, Joint Director (II), O/o Director of Industries Copy to Peshi of the Director of Industries for information. Copy to the Assistant Director (II) and Deputy Director (II), Central Office for information. Copy to the Assistant Director (HK), Central Office for reserving Conference Hall. File No.INC02-17035/19/2018-I&I-I DOI Copy to the Superintendents Desks 20& 39 for information. Signature Not Verified Digitally signed by K Vijayaratnam Date: 2020.02.27 16:07:22 IST Reason: Approved File No.INC02-17035/19/2018-I&I-I DOI MINUTES OF THE 22nd SLC MEETING HELD ON 23.12.2019 AT 11.00 PM IN THE CONFERENCE HALL OF COMMISSIONERATE OF INDUSTRIES, VIJAYAWADA List of Members attended the Meeting:: Sl. Members Name & Designation of Member / No Representative 1. Chairman, State Level Committee Sri.J.V.N. Subramanyam, IAS. 2. The Managing Director, APSFC Sri.M.Vidya Sagar, AGM (Projects) 3. The VC & MD, APIIC Sri.R.Chenchaiah, Chief Engineer 4. The Commissioner, Transport Sri.M.Ramachandraiah, Assistant Secretary 5. The President, FAPCCI Sri.PSR Prasad, Executive Committee Member 6. The President, FAPSIA Sri. V.Murali Krishna, President and Sri.V.ramesh Babu, Committee Member and 7. The Chairman, C.I.I Sri.Y.V. Krsihna Mohan, Convener- CII-MMSE 8. The President, FSME Sri.T. Chandrasekhar,E.C. 9. The President, DICCI Sri.Kona Sarath, Vice President 10 The President, Andhra Chamber of Sri.T.Partha Sarathy . Commerce, Vijayawada 11 The Chairman, AP Spinning Mills Association Sri.L.Raghurami Reddy . 12 The Convener, S.L.B.C. Andhra Bank Sri. P.koteswara Rao, Sr. Manager . 13 Director, Commercial, APTRANSCO Sri.P.V.Satya Ramesh, . EE,Commercial Sri.R.Srinivasa rao, CGM(C), APEPDCL 14 Nominee of the Syndicate Bank Sri.KVN. Murthy, DGM . 15 APSDCPL Sri.G.jai Kishore Babu, EE/T/Zone . 16 Member – Convener, State Level Committee Sri.K.Vijayaratnam, JD(II) . 1. The Chairman of the SLC welcomed all the members and the special invitees of the Committee participated and requested to introduce themselves and the meeting was preceded after confirmation of the quorum required. The chairperson requested all the attendees to put forth their views without hesitation on the agenda items if any. 2. The Chairperson noticed that there is need of inviting the officials of AP Food Processing Society and Information Technology and Communication department as some of the proposals received in the Industrial online portal are relates to their department. The Joint Director was directed to forward a proposal to the Government making them as members in the SLC meeting. Further he was instructed to organize a meeting with them in next month along with stake holders to understand the procedure of sanctioning of incentives by this department and to create an online platform for providing best support towards the prospective and existing Enterprises in filing and processing of their proposals as a part of Ease of Doing File No.INC02-17035/19/2018-I&I-I DOI Business. (Action: JD Incentives) 3. The Chairperson requested the representatives of M/s.TCS Limited to (i) make a provision of restriction in the online incentive portal not to accept the claims filed by the units second time for the same nature of incentives; (ii) not to accept the claims of units for which the Cap fixed under IDP 2015-20 exceed the reimbursement of net Sales Tax/CST/ SGST sanctioned (iii) make a provision to view the physical scanned documents pertaining to all incentives availed by the same unit earlier and (iv) redesign the online portal to download the list of claims to be placed before the SLC along with the details shown in 22nd agenda communicated and the ratios of incentives sanctioned to the total investment. (Action: JD Incentives/TCS) 4. In addition the Chairperson informed that as the IDP 2015-20 Policy will be concluding on 31.03.2020, the Government is planning to formulate an outcome oriented actionable industrial policy that provides direction and charts a course of action for a globally competitive industry which leverages skill, scale and technology giving priority to local employment, infrastructural related incentives for the next 5 years period. The policy shall cover the utilization of natural resources, including energy sources; sustainability has to be treated as integral to growth in all sectors and a fine balance between industrial growth and improvement in environment. In this connection all the Industrial associations were requested to attend the meeting proposed on 27.12.2019 regarding framing of draft New Industrial development and Export promotion Policy 2020-25 along with suggestions / feedback obtained from their Associations members, Industry Captains, Think tanks, Academia and other stake holders. It was informed that the suggestions may cover the best practices adopted by the industrially progressive States, infrastructure and equity based incentives, backward and forward linkages to the resources / finished products, value chain / addition etc. in the proformas communicated already. 5. In this connection the SLC after detailed deliberations directed the Joint Director (II) to prepare a proposal to be sent to the Government with the (16) Spinning units which declared or ready to declared as NPAs and M/s.Mohan Spintex Private Limited which is in the process of setting up new unit for recommending to the Government under prioritization of releases as per the procedure laid down in G.O.Ms.No.32 dated 07.02.2019 of Industries & Commerce (P&I) department, for release of 50% of the already sanctioned amount. 6. The SLC reviewed the general clarifications received from various industries / DICs and the incentive proposals of Large and Mega projects, scrutinized and approved by various SVCs, on case to case basis. During the meeting it is noticed that about 77 claims pertaining to 54 Enterprises are pending due to submission of SSC reports. Hence the Chairperson directed the JD (Incentives) to request the JD (Infra) and JD (MSME) to complete the process of inspecting the units along with other SSC members and furnishing the reports by the end of February’2020 without fail. (Action: JD Infra/JD MSME) AGENDA – I Confirmation of the Minutes of the 21st SLC Meeting held on 06.03.2019. S.No Agenda / Brief SVC SLC Decision Description of the Opinion issue 1. Follow up action on .. Noted. the minutes of the The Joint Director (II) was advised to forward the list previous Meeting of claims received in the portal to AP Food held on 06.09.2018. processing Society or other department concerned on a monthly basis and keep for ratification by SLC in lieu of waiting for the SLC meeting in order to speed File No.INC02-17035/19/2018-I&I-I DOI up the process of sanctioning by other department. AGENDA – II: GENERAL ISSUES 1 VALUATION OF CIVIL WORKS OF M/s. SUZLON The SVCThe issue is deferred . ENERGY LIMITED AS PER THE ESTIMATION OF noticed that theas the unit found not CHARTERED ENGINEER IN LIEU OF APSFC SSC hasworking since many RATES COMPUTED BY SSC. assessed thedays and advised to project cost as take appropriate As per the orders of the COI, SSC consisting of per the normaldecision after JD(Inf)I/c, representatives of APSFC and rates ofresuming the Commercial Taxes department have inspected M/s. APSFC operations by the Suzlon Energy Limited, Ipperu(V), Kuderu(M), specified inunit. Ananthapur Dist. on 23/01/2018 and assessed the their office Fixed Assets of the unit. The building and civil order works were computed as per the rates fixed by the No.PROJ- APSFC. But the unit has not convinced with the (AD)/105 rates assessed by SSC for civil works and request dated to revise the valuation. 09.09.2015 without upward After detailed deliberations, the SSC has revised civil come to a conclusion that the expertise of members rates involved in valuation of building is not sufficient for judiciously and computation of Superior structured Civil works additional cost involving higher cost and opined to refer the incurred valuation works to an Expert Structural Engineer. towards the Subsequently the Company has furnished superior certificate issued by a Chartered Engineer for an specification amount of Rs.41.81 Crs. and finishes. The company The project cost as per the Company and has furnished a the SSC report are as indicated below:: certificate issued by an Assets Value in Rs. Crs independent Company SSC report Chartered Land 3.31 0.92 Engineer. Building /civil works 67.94 28.41 Plant&M/c.