Andhra Pradesh slashes UDA charges to give a boost to food processing sector

In a move to give a fillip to the food processing industry, the Government of Andhra Pradesh on Tuesday issued a G.O. (Ms. No. 102) rationalising the Urban Development Authority (UDA) charges for setting up the food processing and allied units.

The revised charges, covering building permit fee and development, betterment, and site approval charges, aim to ease the financial burden on businesses, particularly Micro, Small and Medium Enterprises (MSMEs), operating in the rural and peri-urban areas.

In an official communication, S. Suresh Kumar, Principal Secretary, Municipal Administration and Urban Development Department, described it as a proactive step to strengthen the food processing sector and drive equitable regional development.

The move followed representations from the stakeholders and industry associations through the Andhra Pradesh Food Processing Society (APFPS).

Industry leaders pointed out that the UDA charges were considerably higher than in many other States, making it difficult for new units to operate, especially in the areas recently brought under the UDA limits. These costs were proving to be a deterrent to growth in a sector widely seen as key to job creation and value addition in agriculture.

Responding to these concerns, the government instructed that the UDA fees applicable to food processing units be aligned with the concessional structure currently in force in the gram panchayat areas, as per G.O. Ms. No.12 of the PR&RD (PTS-III) Department dated February 8, 2016.

“This rationalisation will significantly reduce the cost of compliance for the MSMEs and attract more investments into the food processing space,” Mr. Suresh Kumar said.

“It is a strategic intervention that supports our dual objectives of promoting industrial decentralisation and sustainable urban development,” he added.

He said the government’s aim was to create a business-friendly environment that not only attracts private investment but also distributes growth more evenly across the State.

Published - June 17, 2025 06:18 pm IST