Andhra Pradesh Automobile & Auto Components Policy 2015-20

Andhra Pradesh Automobile & Auto Components Policy 2015-20 is a Government of Andhra Pradesh policy implemented through the Department of Industries & Commerce, notified on 29 April 2015, and valid for a period of 5 years (up to 31 March 2020).

The policy aims to position Andhra Pradesh as a major automobile manufacturing hub by promoting investments, creating infrastructure, supporting MSMEs, and generating employment. For you as an MSME or startup, this policy offers support in innovation, certification, market access, and integration into larger automotive supply chains.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process

Key Features

Ease of doing business: The policy ensures quicker approvals through a single-window system, reducing delays and making it easier for you to start and operate your business.
24x7 operations allowed: Enterprises are allowed flexible working hours, including night shifts, helping improve productivity and operational efficiency.
Development of auto clusters: The government promotes cluster-based manufacturing through dedicated parks with shared infrastructure, reducing setup cost.
Support for MSMEs: Specific financial assistance is provided to MSMEs for innovation, certification, and global exposure.
Mega project incentives: Large projects receive customised incentives including tax benefits, infrastructure, and utility support.
Skill development focus: Training programs and partnerships with institutions help ensure availability of skilled manpower.
Infrastructure support: The state ensures strong logistics, power supply, and industrial infrastructure to support manufacturing units.

Financial Assistance

Component	Assistance Provided	Detailed Explanation
Patent Registration (MSMEs)	75% reimbursement (Max ₹25 lakh)	Example: ₹20 lakh patent cost → ₹15 lakh reimbursed.
Quality Certification (MSMEs)	50% reimbursement (Max ₹5 lakh)	Example: ₹6 lakh certification → ₹3 lakh reimbursed.
International Trade Fair Participation	50% cost (Max ₹5 lakh)	Example: ₹4 lakh participation → ₹2 lakh reimbursed.
Auto Cluster Development	50% of fixed capital (Max ₹20 crore)	Support for infrastructure development. Example: ₹40 crore investment → ₹20 crore subsidy.
Mega Project Incentives	Tax reimbursements, infrastructure, utilities support	Includes SGST/VAT reimbursement, stamp duty reimbursement, and concessional utilities.

Eligibility Criteria

Must be an automobile or auto components manufacturing unit
Must be located in Andhra Pradesh
Must be a new or expansion project
MSMEs must be registered as per Government of India norms

Additional conditions:

Project must comply with policy guidelines
Approvals from relevant authorities required

Non-eligibility conditions:

Non-automobile sector businesses
Unregistered or non-compliant entities

Documents Required

Company / MSME registration certificate
Project Report (DPR)
Investment proof (plant & machinery)
Land and building documents
Approvals and licenses
Bank account details

Application Process

Option 1: Apply with Bullit, Recommended

Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.

Option 2 : Apply Online (Government Process)

Register on Andhra Pradesh Single Desk Portal
Submit project proposal
Apply for required approvals and clearances
Select applicable incentives under policy
Upload required documents
Submit application
Evaluation by concerned departments
Approval of incentives
Disbursement of benefits
Track application status online