The Andhra Pradesh Economic Development Board Act, 2018
**ANDHRA PRADESH ECONOMIC DEVELOPMENT BOARD ACT, 2018.**

**ARRANGEMENT OF SECTIONS**

**SECTIONS**

**CHAPTER I**

**PRELIMINARY**

1. Short title, extent and commencement.

2. Definitions.

**CHAPTER II**

**CONSTITUTION OF ANDHRA PRADESH ECONOMIC DEVELOPMENT**

**BOARD, ADVISORY COUNCIL AND COMMITTEES AS REQUIRED BY THE**

**BOARD**

3. Constitution of the Andhra Pradesh Economic Development Board.
4. Head Quarters of the Board.
5. Composition of the Board.
6. Meetings of the Board.
7. Constitution of Advisory Council.
8. Function of the Advisory Council.
9. Meeting of the Advisory council.

10. Appointment of other Committees.
11. Expenses of the Board, Advisory Council and Committees appointed
by the Board.
12. Proceedings of the Board, Advisory Council and Committees.
13. Authentication of orders of the Board.

**CHAPTER III**

**FUNCTIONS AND POWERS OF THE BOARD**

14. Functions of the Board.
15. Powers of the Board.
16. Powers of delegation.

**CHAPTER IV**

**PROVISIONS RELATING TO THE STAFF**

17. Executive Vice-Chairman of the Board.
18. Chief Executive Officer of the Board.
19. Functions of the Chief Executive Officer.
20. Organizational Structure.
21. Appointment of consultants and head of divisions.


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**CHAPTER V**

**FINANCE, ACCOUNTS AND AUDIT**

22. Budget.
23. Accounts and audit.
24. Annual Report.

**CHAPTER VI**

**MISCELLANEOUS**

25. Members, offices and employees of the Board, constituted under

this Act to be public Servants.

26. Protection of action taken in good faith.
27. Power to make regulations.
28. Power to remove difficulties.

**THE ANDHRA PRADESH ECONOMIC DEVELOPMENT BOARD ACT, 2018.**

**(ACT No.21 of 2018)**

(30[th] May, 2018)

**AN ACT TO PROVIDE FOR THE PROMOTION AND FACILITATION OF**
**INVESTMENTS IN THE STATE OF ANDHRA PRADESH AND**
**CONSTITUTION OF AN INDUSTRIAL FRIENDLY NODAL BOARD FOR**
**INTERFACE WITH THE INVESTORS AND TO MOBILISE RESOURSES**
**WITHIN THE COUNTRY AND ABROAD FOR ESTABLISHMENT OF**
**INDUSTRIAL, INFRASTRUCTURE AND SERVICE SECTOR PROJECTS IN**
**THE STATE TO SECURE ACCELERATED ECONOMIC DEVELOPMENT,**
**ACHIEVE VISION OF THE GOVERNMENT AND TO GIVE ADVICE TO THE**
**GOVERNMENT ON INVESTMENT POLICY AND MATTERS CONNECTED**
**THEREWITH OR INCIDENTAL THERETO.**

Be it enacted by the Legislature of the State of Andhra Pradesh in the
Sixty-ninth Year of the Republic of India as follows:

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**CHAPTER-I**

**PRELIMINARY**

**1.Short title, extent and commencement, - (1) This Act may be called the**
Andhra Pradesh Economic Development Board Act, 2018;

(2) It extends to the whole of the State of Andhra Pradesh;

(3) It shall come into force on such date as the State Government may,

by notification in the Andhra Pradesh Gazette appoint.

**2. Definitions,- In this Act, unless the context otherwise requires:**

(1) “Act” means the Andhra Pradesh Economic Development Board

Act, 2018;

(2) “Advisory Council” means the advisory council constituted under

Section 7;

(3) “Board” means the Andhra Pradesh Economic Development Board

constituted under sub-section (1) of Section 3;

(4) “Chief Executive Officer” means Chief Executive Officer of the

Board;

(5) “Financial Year” means the financial year as applicable to the

Government of Andhra Pradesh;

(6) “Government” means Government of Andhra Pradesh;

(7) “Government Agency” includes any Department of the Government,

or any Corporation or body owned or controlled by the Government or a
Company, Statutory Authority or body or any other body, by whatever name
called, owned and/or controlled by the Government;

(8) “Infrastructure” includes public works relating to Infrastructure for

utilizing the natural resources and/or providing services by either public
works of physical structure or systems for facilities or commodities or
utilization of resources or provision of services;

(9) “Investment” means any or all the preliminary and pre-operative

expenses until commencement of commercial production, capital
expenditure, expenses on land, equipments, interest paid, if any, during
construction, administrative expenses, all operating and maintenance


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expenses including expenses incurred on recovery of user levies, etc.,
relating to a project or expansion of an existing project;

(10) “Investor” means any person including an Individual, a company

registered under the Companies Act,1956(Act No.1of 1956), or the
Companies Act, 2013 (Act No.18 of 2013), Trusts registered under the
Indian Trusts Act,1882 (Act No.2 of 1882), Society registered under the
Societies Registration Act,1860(Act No.21 of 1860), or  partnership firms
registered under the Indian Partnership Act,1932(Act No.9 of 1932),Limited
Liability Partnership registered under the Limited Liability Partnership Act,
2008 (Act No.6 of 2009), and shall include any other body corporate
including those from outside India qualified to invest in India under relevant
laws for the time being inforce or under the relevant policies of the
Government of India or the State Government as may be applicable at the
time of such investment;

(11) “Local Authority” means any Municipal Corporation, or Municipal

Council or Nagar Panchayat or any Development Authority or any Gram
Panchayat or any other statutory body formed, elected or appointed for local
self-Government;

(12) “Member” means a member of the Board and includes the

Chairman of the Board, members of the Advisory Council, Committees;

(13) “Notification” means a notification published in the Andhra

Pradesh Gazette and the word “notified” shall be construed accordingly;

(14 "Private sector participant" means any person other than a

Government agency, or local Authority or the Central Government or a
public sector undertaking of the Central Government;

(15) “Project” means a project to be undertaken by the investor,

Government, Government Agency or Local Authority, whereunder
investment is proposed to be made in the State of Andhra Pradesh;

(16) "Public-Private Partnership" means an arrangement between a

Government, a Government agency or local Authority and a private sector
participant for the provision of infrastructure through investment made or
through design, development, construction, maintenance or operation
undertaken by the private sector participant, where risks are allocated
between them such that the private sector participant takes on the risk
beyond the stage of design and construction and the payment for the


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services are performance linked, in the form of user charges, annuities or
unitary payment;

(17) “Public-Private-Partnership Project” means a project implemented

through public-private partnership;

(18) “Regulations” means regulations made by the Board under this

Act;

(19) “State” means State of Andhra Pradesh.

**CHAPTER-II**

**CONSTITUTION OF ANDHRA PRADESH ECONOMIC**

**DEVELOPMENT BOARD, ADVISORY COUNCIL AND**

**COMMITTEES AS REQUIRED BY THE BOARD**

**3. Constitution of the Andhra Pradesh Economic Development Board, -**

(1) The Government may, by notification constitute a Board to be

called the Andhra Pradesh Economic Development Board;

(2) The Board constituted under sub-section (1) shall be a body

corporate having perpetual succession and a common seal, with power to
acquire, hold and dispose of property both movable and immovable and to
do all the things incidental to and necessary for the purposes of this Act and
to contract and may by the said name sue and be sued.

**4. Head Quarters of the Board,- The headquarters of the Board shall be**
at Amaravati.  The Board may have offices/Representatives at different
places in India and abroad as required. These offices/ representatives shall
not only promote investments in the State, but also promote trade with
other States/Countries.

**5. Composition of the Board, -The Andhra Pradesh Economic Development**
Board shall consist of the following Members:

(a) Chief Minister of the State……………………….Chairman;

(b) Minister for Finance and Planning………….Vice
Chairman;


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(c) Any individual appointed by the Board as Executive ViceChairman……………………………………………….Member;

(d) Minister for Industries.......................................Member;

(e) Minister for Municipal Administration and Urban
Development...........................................................Member;

(f) Minister for Health and Medical Education......................
.............................................................................Member;

(g) Minister for Roads and Buildings..................................
............................................................................Member;

(h) Minister for Panchayat Raj and Rural Development.....
............................................................................Member;

(i) Minister for Water Resources Management.....................
.............................................................................Member;

(j) Minister for Information Technology and Communication
Department.............................................................Member;

(k) Chief Secretary to Government...........................Member;

(l) Special Chief Secretary/ Principal Secretary/ Secretary,
Planning Department ..................................……….Member;

(m) Special Chief Secretary/ Principal Secretary/ Secretary
to Government, Finance Department.......................Member;

(n) Special Chief Secretary/ Principal Secretary/ Secretary
to Government, Industries Department....................Member;

(o) Special Chief Secretary/ Principal Secretary/ Secretary to
Government, Municipal Administration and Urban
Development …………………….................................Member;

(p) Special Chief Secretary/ Principal Secretary/ Secretary to
Government, Roads and Buildings Department.....................


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...............................................................................Member;

(q) Special Chief Secretary/Principal Secretary/Secretary to
Government, Panchayat Raj and Rural Development............
..............................................................................Member;
(r) Special Chief Secretary/Principal Secretary/Secretary to
Government, Water Resources Management Department......
...............................................................................Member;

(s) Principal Secretary to Government, Information Technology, Electronics and Communication Department...................
...............................................................................Member;

(t) Secretary to Government, Law Department..........Member;

(u) Chief Executive Officer of the Board.................................
................................................................Member Convener;

(v) Any other Minister/Secretary to Government or other
persons including international experts in the field, leading
industrialist nominated by the Chairman of the Board..........
……………………………………………….……...............Member.

**6. Meetings of the Board, -(1) The Board shall meet once in six months at**
such time and place and shall observe such rules of procedure in regard to
transaction of business at its meetings, including the quorum at such
meetings, as may be prescribed in the regulations;

(2) The Chairman of the Board shall preside over the meetings.

(3) The Minister-in-charge of the administrative department concerned

with the subject matter of agenda item of discussion and the Secretary to
Government of the administrative department concerned may be the special
invitees at the meetings of the Board;

**7. Constitution of Advisory Council, - The Chairman of the Board may**
constitute an Advisory Council which shall consist of the following
members:
(a) Eminent national and international experts from the
industry, infrastructure, Information Technology and


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Communications, tourism, energy, Social work, Civil Society
etc;

(b) Eminent national and international Economists, Public
Finance Experts, Policy Experts, Development Professionals,
etc. and;
(c) Officers, officials and experts from Government of India,
Government of Andhra Pradesh and other National and
International Government bodies and agencies;

**8. Functions of the Advisory Council:, -**

The Advisory Committee shall give strategic advice and policy

guidance to the Board which shall be recommendatory in nature.

**9. Meetings of the Advisory Council, -**

The Advisory Council shall meet at such time and place as may be

prescribed in the regulations.

**10. Appointment of other committees, - (1) The Board may from time to**
time appoint any committees consisting of such members as it may thinks
fit and associate with such committee in such manner and for such period
as may be prescribed, in the regulations any person or persons whose
assistance or advice it may desire and refer to such committees for inquiry
and report any subject relating to the purposes of this Act;

(2) Every committee appointed under sub-section (1) shall conform to

any instructions that may, from time to time, be given to it by the Board and
the Board may at any time alter the constitution of any committee so
appointed or rescind any such appointment. The Board shall nominate one
of the member as the Chairman of such committee.

(3) The procedure to be followed by the committees and all other

matters relating to the committees shall be such as may be specified in the
regulations.

**11. Expenses of the Board, Advisory Council, Committees appointed by**
**the Board,-**

The cost towards the functioning of the Board, Advisory Council and

Committees, appointed by the Board (including remuneration/honorarium
to members, travel expenses including boarding and lodging of members,
remuneration and expenses of employees/consultants engaged by the
Committees and other investment promotion expenses for the activities of
the Board, Advisory Council and Committees) shall be approved by the


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Board and shall be borne from the internal funds and from funds allocated
to the Board by the Government of Andhra Pradesh.


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**12. Proceedings of the Board, Advisory Council and Committees,-**

No act or proceedings of the Board, Advisory Council and

Committees, shall be invalid by reason only of the existence of any vacancy
amongst its members or of any defect in the constitution thereof.

**13. Authentication of orders of the Board, -**

All orders and decisions of the Board shall be authenticated by the

signature of the Chief Executive Officer and all other deeds, documents and
instruments executed or issued shall be authenticated by the signature of
such officer of the Board as may be authorised by the Chief Executive
Officer in this behalf.

**CHAPTER-III**

**FUNCTIONS AND POWERS OF THE BOARD**

**14. Functions of the Board, - The Board may perform all or any of the**
following functions, namely:

**(1) Strategic Planning and Policy,-**

(a)To conduct strategic analysis of national and global
development trends and identifying strategies that would
facilitate creation and management of an ecosystem for
sustainable high growth trajectory;

(b) To provide a platform for bringing leading national and
international business leaders, economists, academicians
and knowledge leaders to advise the Government.

(c) To nurture a Think Tank and create Knowledge Bank for
strategic planning, policy analysis, data analytics and
action-research essential for sustaining high rates of growth
and successful completion within the committed timelines
with focus on investment flows, their efficacy in terms of
value addition, employment generation and wealth creation;

(d) To secure policy and programmatic integration and coordinate preparation and prioritisation of pipeline of projects
related to economic sector like infrastructure, industrial
development, energy, information and communication


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technologies, tourism, skill development, higher education
and technical education, etc.,;
(e) To identify potential sources of financing and facilitate
early launch and accelerated execution of projects;

(f) To work through various departments, ensure proper
timely alignment of state policies with the existing and
emerging policies at the centre;
(g) To identify the best policies being adopted by the other
states and exploring the scope for adopting the same.

**(2) Investment Promotion and Project Facilitation, -**

(a) To facilitate investments in the state by being the onestop shop and a single point interface for all investors
seeking opportunities in Andhra Pradesh and act as a
dynamic interface between the external world of investors
and the Government Agencies and Departments;

(b) To promote Andhra Pradesh as the ideal investment
destination through various means including road shows,
meetings, seminars and programmes, advertisement,
printing promotional material, dissemination of information
etc., in India and abroad, in coordination with the
departments concerned;

(c) To provide hand holding services to the entrepreneurs
throughout their investment process in the State, with a
view to facilitate ease of doing business in the State;

(d)Apart from disseminating information through the
available channels to the potential investors, the Board
would proactively market projects to investors and facilitate
their approval by the regulatory authorities. It will create an
internal Investment Friendliness Standard for the
Departments (along the lines of ‘ease of doing business’),
through a combination of process indicators and investor
surveys;

(e)  To promote economic activity through development of
Industrial Parks, Special Economic Zones and other
economic clusters;

(f) To enter into memorandums of understanding,

agreements etc., on behalf of the Government for promoting


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investments into the State and for attaining other objectives
of the Board.

**(3) External Engagement with National/International Investors**
**and Other Governments, -**

(a) To provide one-stop interface for all investors-sector wise
and infrastructure wise and a single point interface between
investors and the Government Departments.

(b) To facilitate the implementation of comprehensive set of
measures to improve the ease of doing business with timebound and transparent resolutions of issues during the
project execution and commissioning phases;

(c) To facilitate effective inter-departmental co-ordination for
multi-sector investments aiming for higher returns and
predicable project completion timelines, including but not
limited to industrial corridors, growth nodes, capital city
development, etc;

(d) To catalyse effective knowledge management and
technology transfer essential for innovation, entrepreneurial
development and economic growth;

(e) To provide one-stop interface for all external engagements
with Foreign Governments or investment related issues with
the Government of India;

(f) To monitor priority projects of the Government and
provide timely feedback required for corrective action.

**(4) Project Appraisal, -**

(a) To create a robust institutional apparatus that would
inspire the confidence of national and international
investors through uniform, fair and transparent promotion
procedures and consistent assessment and support during
the execution phases of the projects;

(b) To identify priority projects for Public-Private
Partnership, conduct techno-economic appraisal of major
projects and provide appropriate advice to the Government
on all aspects of Public Private Partnership project approval,
execution and monitoring.


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**(5) Financial Resource Mobilization, -**

(a) To mobilize resources (financial, knowledge and
intellectual capital) required for sustaining high growth
momentum and for executing various projects including
internal sources, multilateral bodies, private sector, Public
Private Partnership, through various means, including by
setting up of Special Purpose Vehicles;

(b) To enable high-yielding investments and high efficiency
levels through synergies and coordination with multiple
stakeholders.

**(6) Setting up Special Purpose Vehicles, -**

(a) To coordinate and facilitate establishment of Special
Purpose Vehicles involving multi-departmental functions
such as establishing Industrial Corridors, Financial
Services, Capital City, Smart Cities, Smart Villages, Science
Centres, Educational and Research Centres etc., as well as
those required for soft and ecosystem development;

(b) To promote Venture Funds and other investments
strategies to encourage private investments in industrial
development and economic activities, either directly or in
association with national and international

concerns/institutions engaged in operation of venture
funds, investments funds and other funds;

(c) To take up income generating activities to further the
objectives of the Board.

**(7)  Incubating and Coordinating Futuristic Initiatives, -**

(a) To incubate and coordinate special initiatives which cutacross multiple departments and Government Organisations
targeting a quantum leap in terms of developmental
outcomes;


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(b) To promote the development of best practices, innovation
and State of the art technology in the State;

**(8) Futuristic growth, -**

To scout for the futuristic growth propelling emerging feasible
technologies and establish an ecosystem for its adoption and growth
in the State.

**(9)  Any other functions entrusted by the Government including**
Urban Development and Economic Cities as may be directed by the
Government from time to time with a view to bring about the
accelerated economic development of the State.

**15.** **Powers of the Board, - (1)  The Board may call upon any Government**
Agency, Local Authority or any other body or Authority or person to furnish
information, details, documents and particulars as may be required by the
Board in connection with or in relation to any project, which such
Government Agency, Local Authority or Body or Authority or person shall
furnish to the Board without any delay or default.

(2) The Board shall have power to co-ordinate with the line

departments to track and compile the status of significant projects of
economic development in the State;

(3)  The Board shall have all the powers including incidental and

ancillary powers to perform, carry out, undertake any functions so as to
promote and facilitate investment opportunities in the State.

**16.** **Powers of delegation, - (1)  The Board, Chairman, Vice Chairman,**
Executive Vice Chairman, Chief Executive Officer, Advisory Council and
Committees formed by the Board may delegate their powers and direct that
any power exercisable by them may also be exercised by any of the
following, in such cases and subject to such conditions, if any, as may be
specified therein.

(a) any authority subordinate to them;

(b) any of the committees, members, officers or employees of

the Board or its constituent bodies;

(c) any special purpose vehicle or company formed under the

Board.


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**CHAPTER IV**

**PROVISIONS RELATING TO THE STAFF**

**17. Executive Vice Chairman of the Board, - (1) The Executive Vice-**
Chairman of the Board shall be appointed by the Board.

(2) The qualifications, pay and allowances and terms and conditions

of service of Executive Vice Chairman shall be such as may be decided by
the Board from time to time;

(3)  The functions of the Executive Vice Chairman shall be such as

may be prescribed in the regulations.

**18.Chief Executive Officer of the Board, - (1)  The Chief Executive Officer**
of the Board shall be appointed by the Board, who may be drawn from
Government services or from the private sector;

(2) The qualifications, pay and allowances and terms and conditions of
service of Chief Executive Officer shall be such as decided by the Board from
time to time.

**19. Functions of the Chief Executive Officer, -The Chief Executive**
Officer, subject to the orders of the Board, shall be responsible for:

(a)  Supervision and direction of staff of the Board;

(b) Undertaking research to determine the industry

competitiveness of State and propose strategies to enhance
the State as an investment destination;

(c) proposing for the Board’s approval, operating and
marketing plans for investment promotion and facilitation;

(d) performing the duties of the Secretary to the Board,
including preparation of minutes of decisions of the Board;

(e)  performing such other functions and duties as may be
determined by the Board;

(f) performing all other incidental and ancillary functions as
directed by the Government and/or the Board or the
Chairman of the Board.


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**20. Organisational Structure, - The Board shall have a full-fledged**
Secretariat with various divisions as it may deem necessary which would be
responsible for day-to-day management of the Board. The Secretariat of the
Board shall be headed by the Chief Executive Officer.

**21. Appointment of consultants and head of divisions, - (1) The Board**
may create such divisions and such posts with such designations, to carry
out its functions prescribed under this Act;

(2) The Chief Executive Officer may, with the approval of the

Chairman of the Board appoint skilled persons, experts and consultants
(including foreign nationals) on such terms as to remuneration, duration,
designation (on contract basis at competitive market rates) or otherwise
against the positions created as he/she may consider necessary for the
efficient performance of the functions of the Board;

(3) The Heads of divisions may be appointed from the private sector or

on deputation basis from the Government Departments;

(4) The salary, allowances and the terms and conditions of service of

the persons appointed under this Section shall be such as may be
prescribed by the regulation;.

(5) The Chief Executive Officer of the Board shall exercise the powers

of supervision and control over all the officers, staff and consultants of the
Board.

(6) The staff shall be entitled to receive from the funds of the Board

such remuneration and shall be governed by such conditions of service, as
may be determined by regulations made in this behalf;

(7) The Chief Executive Officer may appoint other supporting staff on

outsourcing basis with the approval of the Chairman of the Board.

**CHAPTER V**

**FINANCE, ACCOUNTS AND AUDIT**

**22. BUDGET,-** (1)  The Board shall, during each financial year, prepare,

in such form and at such time as may be prescribed, a budget in respect of
the financial year next ensuing showing the estimated receipt and
expenditure under this Act and copies thereof shall be forwarded to the
Government;

(2) The Funds required for administration of the Board shall be

provided by the Government from time to time, on priority, keeping in view


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the importance of investment promotion for economic development of the
State.

(3) The Board may raise revenues through various sources and

services rendered by it and all the revenues of the Board shall be credited to
the Public Deposit Account;

(4) The Board shall not be required to take approval from the

Government for financial expenditure incurred from the Budget for carrying
out its activities, including travel, payment of salaries and allowances
opening and maintenance of offices and other expenditure connected with
its functioning;

(5) The expenditure of the Board shall be governed by the regulations

made by the Board.

**23. Accounts and Audit,- (1) The Board shall maintain proper accounts**
and other relevant records and prepare an annual statement of accounts in
such form as may be prescribed in the regulations;

(2)  The accounts of the Board shall be audited once in a year by the

Accountant General, Andhra Pradesh;

(3) A copy of the Audit report together with audited copy of the

accounts shall be forwarded to the Board and the same along with its
comments thereof to the Government, with in such time, as may be
prescribed by the regulations;

(4) The Government may, by order, direct the Board to take such

action as may be specified in the order to remedy, within such time as may
be specified therein, the defects, if any, disclosed in the audit report, and
the Board shall comply with such direction;

(5) The copy of the Audit Report shall be placed before the State

Legislature.

**24. Annual Report, - The Board shall, during each financial year, prepare,**
in such form as may be prescribed, its annual report, giving a full account of
its activities during the previous financial year and forward a copy thereof to
the Government after the end of each financial year.


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**CHAPTER VI**

**MISCELLANEOUS**

**25. Members officers and employees of the Board constituted under**
**this act to be public servants, -  All the members of the Board constituted**
under this Act and all officers and other employees of the Board when acting
or purporting to act in pursuance of any provisions of this Act, or
regulations made or orders or directions issued thereunder shall be deemed
to be public servants within the meaning of section 21 of the Indian Penal
Code, 1860 (Act No.45 of 1860).

**26. Protection of action taken in good faith, - (1) No suit, prosecution or**
other legal proceeding shall lie against the Board, or any member, officer,
employee or consultant of the Board in respect of anything which is done or
intended to be done in good faith, or any contract of any kind entered into
by the Board in good faith in pursuance of this Act, or the regulations made,
or orders or directions issued thereunder;

(2) No court shall have jurisdiction to entertain any suit or

proceedings in respect of anything done, action taken or direction issued by
the Board or any Officer, employee or consultant of the Board in pursuance
of any power conferred by or in relation to its or his functions under this
Act.

**27. Power to make regulations, - The Board may make regulations**
consistent with the provisions of this Act to carry out the purposes of this
Act;

Provided that, the Chief Executive Officer may make regulations with

the approval of the Board, whenever required.

**28. Power to remove difficulties, - If any difficulty arises in giving effect to**
the provisions of this Act, the State Government may, by order, not
inconsistent with the provisions of this Act, remove the difficulty.

**DUPPALA VENKATARAMANA,**

Secretary to Government,

Legal and Legislative Affairs and Justice,

Law Department.


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