Hyderabad, May 13 (KNN) The new MSME policy, approved by the Andhra Pradesh Cabinet on Tuesday, would give 100 per cent exemption on VAT, CST and SGST for five years from the date of commercial production to the new units to be set up in the state.
 
On the microblogging site twitter, AP chief minister Chandra Babu Naidu wrote, “Our Council of Ministers has passed MSME Policy 2015-20. We aim to foster innovation, provide jobs & create ecosystem conducive for MSMEs.”

According to the policy, 24x7 uninterrupted quality power with power cost reimbursement at Rs 1 per unit for 5 years from commencement of commercial production will also be given.
 
"100 per cent VAT/CST/SGST reimbursement for Micro and Small enterprises for 5 years from commencement of commercial production; and 75 per cent for Medium enterprises for 7 years or up to realization of 100 per cent fixed capital investment, whichever is earlier," it says. 

As per the policy, 15 per cent investment subsidy on fixed capital investment up to Rs 20 lakh for Micro and Small enterprises, besides interest subsidy for fixed capital investment by new Micro and Small enterprises on term loan in excess of 3 per cent per annum up to 9 per cent per annum for 5 years from commencement of commercial production, would be allowed. 

The policy also assured 100 per cent stamp duty and transfer duty reimbursement on purchase of land, mortgages and hypothecations and reimbursements to be done within six months. (KNN Bureau)