ANDHARA PRADESH INDUSTRIAL DEVELOPMENT CORPORATION  - A PROFILE 
 
Introduction      
Andhra Pradesh Industrial Development Corporation (APIDC) was set up by the Government of Andhra Pradesh in 1960 for the planned development of medium and large scale industries in the State. The following are the objectives and activities of the Corporation. 
Objectives      
  • To identify and promote entrepreneurial talent for comprehensive  industrial development. 
  • To conceptualise exploitation of resources for industrialisation. 
  • To ensure economic, financial and social viability of the promoted projects. 
  • To earn a reasonable rate of return. 
  • To function as an extended arm of Government/National Development Banking Institutions. 
Activities      
  • Project promotion - generation and implementation of new project ideas. 
  • Equity Participation. 
  • Extending term loans. 
  • Financial Services - Merchant Banking ECB Guarantee, Bills Discounting and Short Term loans etc. 
  • Extending assistance for modernisation of plant and machinery for higher productivity. 
  • Guidance and Comprehensive Escort services through ENTIRE. 
Operations : An OverView      

New Projects      

During the year 1998-99 as many as 22 new projects were promoted with a capital investment of Rs. 16797.42 lakhs providing job opportunities to 2019 persons. During the last 5 years the projects promoted were as follows :   
  
  
     S.No
   New Project promoted (Year wise)
   Number 
   1. 
   1994-95 
  41 
   2. 
   1995-96 
   8 
  3.
   1996-97 
  15 
  4.
   1997-98 
  16 
   5. 
   1998-99 
   22 

 
Dispersal of Industries      

As a result of the planned Industrial Development of the State taken up by the Corporation there is no "No industry district" in the State. The District-wise dispersal of industry is as follows:     
  
  
 District No. of   
Industries
 District
No. of   
Industries
 District
No. of   
Industries
 ADILABAD  ANANTAPUR   22   CHITTOOR   46 
 CUDDAPAH  EAST GODAVARI   38   GUNTUR    16 
 HYDERABAD  69   KARIMNAGAR      5   KHAMMAM    15 
 KRISHNA  28   KURNOOL   11   MAHABOOBNAGAR    30
 MEDAK  196   NALGONDA    70   NELLORE    24 
 NIZAMABAD  PRAKASHAM    10   RANGA REDDY    86 
 SRIKAKULAM  11   VISAKHAPATNAM   31   VIZIANAGARAM    9     
 WARANGAL 14       WEST GODAVARI   22   PONDICHERY    2 
OTHER STATES 2
TOTAL 775
Spectrum of Industrial Development      

APIDC promoted a wide spectrum of projects, covering various industrial sectors. The summary is as below     
  
Sectoral Dispersal    No. of  Units 
Agro & Food     109     
Chemicals, Drugs, Pharma, Basic Chemicals    130 
Mineral Based       90 
Engineering, Metallurgical. Elect., Electro.     188 
Textile, Jute, Silk, etc     79 
Paper, Paper Boards      43 
Miscellaneous (Rubber, Leather, Hotels)    139 
  
Natural Resources Utilisations     APIDC is giving utmost priority to industrial units utilizing natural resources of the State as well as those industries that would create wealth out of agricultural residues and wastes. Nearly 200 units utilise the natural resources and the commercial crop potential of the State. They include paper, jute, textiles, solvent oils, cement etc.   

Financial Operations      

Authorised and paid up capital :   The Authorised Capital of the Corporation is Rs. 110.00 crores and the paid Up Capital is Rs. 96.23 crores as on 31st March 1999. The Govt. of A.P. is holiding equity of Rs. 95.19 Crores and Govt. of India Rs. 1.04 crores.   

Performance as on March 1999   : APIDC promoted 775 medium and large scale industries all over Andhra pradesh upto 31.03.1999 generating a total investment of Rs. 5654.87 crores and created employment potential for 1.41 lakhs people in the fields of Petro-Chemicals, Pharmaceuticals, Agro, Food and Forest based industries, Textiles, Electronic, Electrical, Metallurgical and Mineral based industries, Super speciality health care Hospitals, Hotels etc. The Corporation promoted 193 units in Coastal Andhra, 88 units in Rayalaseema, 494 units in Telengana. The Corporation promoted 470 units in backward areas and 305 units in other areas in AP where in the Corporation sanctioned Rs. 141.13 and Rs. 331.20 crores towards equity and term loan and disbursed Rs. 132.66 and 274.40 crores respectively upto 31st March 1999.     

Sanctions and disbursements of equity and term loan : The Corporation sanctioned an equity amount of Rs. 4.50 crores and term loan of Rs. 20.65 crores under IDBI Refinance Scheme and disbursed amount of Rs. 7.15 and Rs. 10.24 crores respectively. The following are the details for the last 5 years :   

Sanctions and Disbursments of investment (Rs. In Crore)     
  
S.No  Year  Sanctions    Disbursements
  1.  1994-95   15.06    14.45 
  2.   1995-96    3.37     6.85 
  3.   1996-97    1.80     9.31 
  4.   1997-98    0.72     6.66
  5.  1998-99    4.50     7.15 
.                              
Sanctions and Disbursment of term loan (Rs. In Crore)     
  
S.No  Year  Sanctions    Disbursements
  1.  1994-95      4.03    10.76 
  2.   1995-96      0.99    13.10 
  3.   1996-97     15.91    12.23 
  4.   1997-98     20.68    11.01     
  5.  1998-99     20.65      7.15 
.                              
Recovery of Dues      

The Corporation recovered dues to the extent of Rs. 30.01 crores during the financial year 1998-99 of which Rs. 14.85 crores was towards principal and Rs. 15.16 crores towards interest. The following table presents the details of demand, recovery principal/interest during the last 5 years.     

Demand and recovery position of term loans & other loans   

 (Rs. in crores) 
  
S.No Year 
  Principal 
      Interest     
    
  Demand    Recovery  Demand   Recovery 
  1.  1994-95    22.52    16.68    29.80   19.44 
  2.  1995-96    24.78    17.33   31.36   24.17 
  3.  1996-97   23.73    15.31   37.03  15.40 
  4.   1997-98    24.96    14.02    43.87   16.71 
  5.   1998-99    20.32    14.85   20.59   15.16 
                        

Bill Discounting      

The Corporation started financial services activities in 1995 particularly bill discounting and rediscounting and made a turnover of Rs. 45.81 crores and earned Rs. 3.32 crores in 1998-99. The following gives the details of Bill Discounting during the last four years.     

 (Rs. in crores) 
  
S.NO   Year   Sanctions      Turnover     Income Earned 
1. 1995-96 21.20 21.96  1.05 
2. 1996-97  22.10   89.56  5.70 
3. 1997-98  28.34  57.21  3.70 
4. 1998-99  20.91 46.43  3.39 
   
Seed capital scheme      

APIDC encouraged technocrat-entrepreneurs to set up projects by providing Seed Capital under Seed Capital Assistance provided by IDBI. An amount of Rs. 10.88 crores was extended to 108 units under the scheme.     
     
Disinvestment of shares and rotation of funds      

The Corporation is rotating the funds by disinvestment of shares. During the year 1998-99, the Corporation realised an amount of Rs. 10.20 crores by way of disinvestment. Disinvestment during the last 5 years is as follows:     

         Performance of disinvestment of share capital      
                                        (Rs. in crore)      
  
 S.No    Year   Disinvested
  1.  1994-95   26.71 
  2. 1995-96   14.03 
  3.  1996-97     6.62
  4. 1997-98  11.54 
  5.  1998-99(P)   10.20
                                
The Financial Products      

The following are the brief details of the schemes of financial assistance/services offered.     
  
Name of the Scheme Type of assistance offered/terms 
Term Loan  Long Term Financial assistance   more than Rs. 20.00 lakhs. 
 Short Term Loan   Upto Rs. 50.00 lakhs to each company 
 Equity participation Upto 11% or Rs. 100.00/50.00 lakhs which ever is less in the listed/  unlisted category companies in the  thrust areas. 
 Bill Discounting Scheme  Assistance to the companies for meeting gaps in working capital.    
Discounting of LC bills.  
Discounting of capital goods Bills.  
Rediscounting of bill   discounted by NBFCs. 
 Guarantees  Deferred payment guarantee to the suppliers/bank for acquisition of  capital goods, ECBs, etc. 
 Merchant Banking  Raising money from capital market, underwriting etc. 
     
Profitability      

In the 5 years, APIDC earned operating profits as follows:      
                                        (Rs. in crore)      
  
Year Amount 
1994-95  20.00 
1995-96 19.49 
1996-97    9.21
1997-98 17.59
1998-99   7.87(prov)
     
Focussed promotional activity      

Keeping in line with the vision 2020 announced by the Govt.of Andhra Pradesh, APIDC has started re-engineering its strategy to scale newer heights in the industrial activity of the State. The new equity policy of the Corporation proposes to give impetus to Industrial Development through its special focus on the following thrust areas.     

  • Food Processing other than traditional industries.    
  • Petroleum, Petrochemicals and Chemicals    
  • Chemical Fertilizers.    
  • Engineering and Automotives.    
  • Mineral based industries.    
  • Information technology.    
  • 100% export oriented units.    
  • Biotechnology.    
  • Renewable sources of energy.    
  • Energy efficient and waste reduction technology and process.    
  • Pollution Control equipment and Devices.    
  • Waste utilisation and recycling. 
New Initiatives      

1. Entire APIDC Entrepreneurs Nucleus and Total Investment Requirement Eden (ENTIRE) is a one stop-shop for all the propective entrepreneurs from initial documentation to final establishment and commissioning. It provides the following fee based services which can be availed depending on the entrepreneurs specific needs :-     
  

  • Escort Services   : These are the most essential support services that a new entrepreneur needs and include preparation of Feasibility Report, Site Selection, Company Incorporation getting Statutory Clearances.    
  • Consultancy Services : These are the exclusive back up services for the prospective entrepreneurs and include preparation of DPR, Funds Syndication, Sourcing of Equipment, Coordination with Institution/ Documentation.    
  • Implementation Services : These services focus on grounding the project and include infrastructural facilities, Civil Construction, Equipment procurement, Equipment Erection and Commissioning. 
2. APIDC Venture Capital Ltd.    APIDC floated a Venture Capital Company in the name of 'APIDC Venture Capital Ltd' in association with private promoters for providing Venture Capital to Growth/Technology oriented projects. The fund size is Rs. 27.00 crores and the contributors are APIDC, IDBI, Andhra Bank, IOB, SIDBI, and NRI private sector companies and World Bank.   

3. HITVEL   The Corporation floated a separate company under the name HITVEL (Hyderabad Information Technology Venture Enterprises Ltd.) in association with APIIC and SIDBI to provide venture capital to IT/Software projects in the state with an initial fund of Rs. 15.00 crores (APIDC Rs. 5.00 crores, APIIC Rs. 2.5 crore SIDBI Rs. 7.5 crores.) The Company is readying to start operations shortly.     

Computerisation programme  The Corporation has been taken up the computerisation of all activities, and plans to complete the software development and the installation of the required hardware by the end of 1999.   

System of working      

The Chief Executive Officer of the Corporation is the Vice-Chairman and Managing Director. He is the fountain head of the policies, and their implementation.     

The Vice-Chairman & Managing Director directs the Programmes as approved by the Board of Directors headed by a Chairman appointed by the Government of Andhra Pradesh.     

The Vice-Chairman and Managing Director is supported by Executive Directors and Chief General Managers for Business Development, Finance, Monitoring, Law and Administrative Divisions with their respective professional teams. APIDC has been successfully marketing its investment promotional programme through print media, entrepreneurs' meets, workshops and conferences on specific growth areas.     

APIDC has come out recently with a number of innovative support systems as discussed earlier With this track record, APIDC, is bound to contribute to its overall economy in general and the Industrial Development of the State in particular. 

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