HYDERABAD: Giving a fillip to the industrial sector in Andhra Pradesh that has suffered due to political uncertainty in the wake of the Telangana movement, the Andhra Pradesh government has given the green signal to three companies to set up units in the Rayalaseema region and Nellore district. Once grounded, these units are expected to generate about 13,000 jobs, mostly for the rural unemployed.

The three companies, Shahi Exports, Universal Coke & Power Ltd and Gujarat Ambuja Exports Ltd, have been cleared for the special incentive package under the existing industrial policy 2010-2015. These are the first batch of applications cleared by the Chandrababu Naidu government after assuming office in June 2014.

According to sources, as chairman of the Andhra Pradesh State Industrial Promotion Board (APSIPB), Naidu has been personally scrutinizing the applications of the promoters. Last month, he cleared the backlog of applications seeking incentives and, on Thursday, the TDP government okayed the applications of the three companies to set up their units.

With an investment of Rs 143 crore, the Shahi group is to set up four apparel parks in Palamaneru, Kuppam, Chittoor (all in Chittoor district) and Hindupur (Anantapur district). The company has sought five acres of land for each unit and the same is to be soon arranged by the AP Industrial Infrastructure Corporation. The four units together have potential to generate about 11,000 jobs, mostly for rural women.

Shahi's application was cleared by the SIPB on December 9, 2014. As per the concessions offered by the state government, the company will get 7 per cent interest subsidy on garments for five years over and above the interest rebate offered under the Technology Upgradation Fund. The company will also get 100 per cent refund of VAT on raw material including cotton on the lines of what is provided in Gujarat. The Shahi Group has to set up the four units in 12 months time.

Universal Coke & Power, which is to set up a non-recovery coke plant along with 35 MW cogen power plant using the heat generated in the main plant, will invest Rs 725 crore. The plant has to be set up in Nellore district in the next 18 months and provide jobs to 1,525 persons. "The state has decided to allot 175 acres of land sought by the company in Nellore district for the purpose," APIIC chairman P Krishnaiah told TOI.

The Ambuja Group is to set up a maize processing plant near Jupadu-Bungalow in Kurnool district. The company is to invest Rs 240 crore and generate 500 jobs. The company will get 50 per cent reimbursement of VAT/CST or SGST for a period of five years from the date of commencement of commercial production.

All the three companies will be eligible for other incentives as per the new industrial policy which includes 100 per cent reimbursement of stamp duty on the purchase of land or lease of land, 25 per cent rebate on land cost limited to Rs 10 lakh in Industrial Estates and Parks and 50 per cent reimbursement of cost involved in the skill upgradation and training of local manpower limited to Rs 2000 per person.

SIPB has also cleared the application of Asian Paints which wants to set up a unit in Visakhapatnam district with an investment of Rs 1,818 crore. The GO for extending the facilities to the unit is to be issued shortly.