Incentives of New Projects

Incentives & Assistance for Airports
The investors would be left free to fix their own tariff for various Airport services without detriment to the development of the Airport in shorter / longer period 
The investors would be given complete freedom to follow their own personnel and employment policy without being governed by the rules and practices in other Airports Government would assist in acquisition of land Any proposal for mutual benefit Government will give help in obtaining fresh water and power supply to the investors 

Key Policy changes in shipping & ports
Indian Ports Act amended to permit 100% Foreign Ownership & Foreign Directors Automatic approval for Acquisition of all categories of vessels Cabotage laws relaxed Package for Economic Revival of shipyards Reserve Bank of India to permit Foreign Exchange for Ship Repairs / Dry docking and spares for imported capital goods without any value limits Freight charges on movement of fertilizers & Petroleum products to be paid in convertible currency Guidelines for development of Ports.

Parties will ensure that land and water frontage acquired is used for providing of port services only Services will have to be provided efficiently and economically to users. The minimum level of performance will have to be guaranteed 
Parties permitted by the Government for setting up and operation of port terminal will be required to observe custom and other laws of the land and rules and regulations. The parties will provide facilities to customs and other government agencies as per rules The information and details given in this brochure are only guidelines to have a broad view. Investors will have to make their own assessment 

Incentives & Assistance for Ports
Investors have freedom to follow their own personnel and employment policy without being governed by the rules and practices in other Indian Ports 
Government will help in acquisition of land and water frontage on payment by the investors. Wherever port land is available, it will be provided to the parties at the rates prescribed by Andhra Pradesh Government. 
Land required for those industries which need to be located close to a port to take advantage of bulk handling of their raw materials / products, can be acquired by APIIC on the basis of feasibility report made by the investor. If the investor wants to own the land and lease out to industries, such land can be acquired at market price under Land Acquisition Act. 
Government will help in obtaining fresh water and power supply to investors 

Rebate in Power Bills
All new industries, other than those ineligible lines (as listed under investment subsidy), and other than those set up in the Municipal Corporation areas of Hyderabad, Vijayawada and Visakhapatnam, will be eligible for 25% rebate in power bills (both demand and energy) for a period of 3 years from the date of commencement of commercial production. The rebate shall be allowed by the A.P State Electricity Board in their monthly bills. The maximum total admissible rebate for the 3 years will be Rs.50.00 lakhs in respect of Large and Medium Industries and Rs.30.00 lakhs in respect of Small Scale Industries.

Note
The existing procedure of issuing eligibility certificate by the District Industries Centre and admission of claim by Andhra Pradesh State Electricity Board will continue.

Special Tax Concessions
The Government offers a wide range of concessions to investors in India to promote industrial growth and exports. The important concessions include

Deduction of preliminary and preoperative expenses in setting up a project. 
Complete tax exemption for profits from exports. 
Full or part exemption of foreign exchange earnings on construction projects, hotels and tourism related services, royalties, commissions, etc. 
Five year tax holidays within the first eight years of commercial operations for 100% EOUs and units in EPZ. 
Tax exemption for income from export of computer software or technical services. 
Deduction of 30% of gross total income for 10 years for new industrial undertakings established by companies. 
Deduction of capital research and development expenditure. 
Tax holiday for profits from new power projects for first five years of operation. 
Special Concessions to Foreign Companies in selected areas Oil & Gas operations, Oil Concessions, Turnkey Power Projects & Shipping .

Revenues accruing to foreign companies (including royalties and technical services fees) in connection with the exploration or production of petroleum or natural gas, is subject to tax on a deemed profit of 10% of gross revenues.

Foreign oil companies which have entered into agreements with Government of India for exploration and production of oil enjoy special concessions in computation of taxable income and are taxed at the rate of 50% instead of 65% applicable for foreign companies in general.

Foreign companies engaged in the execution of turnkey power project contracts, approved by the Government and financed by an international aid program, are subject to a tax on a deemed profit of 10% of gross revenues.

Foreign shipping companies are liable to pay tax on income on a deemed profit of 7.5% of freight revenues earned from shipping operations in India.

Relief for Foreign Nationals
A "Short Stay" exemption applies where all the following conditions are met :

The individual is a foreign national employed by a foreign company not doing business in India. 
His stay in India does not exceed 90 days in a tax year (extended to 183 days in certain tax treaties); and 
His remuneration is not deductible in arriving at his employer's Indian taxable income.

Foreign technicians in certain prescribed areas are eligible for a special exemption from tax on their salary income. The tax on their salaries could be paid by their employees without such tax being held as part of salary for tax purposes. This special concession is available for four years and is also fully deductible for corporate tax purpose. 
Foreign nationals are exempt from tax for home leave travel benefits for themselves and their families, provided by the employer.