New Delhi: The Central Government on Friday said it is extending tax incentives for seven districts in Andhra Pradesh to boost industrial activity. The incentives have been extended for four districts of Rayalseema and three districts of North coastal region of the state under the Andhra Pradesh Re-organisation Act, 2014.

However, the central package is not any additional aid to AP as the provision was already included in the state reorganization Act. Moreover it is being given nearly three years after the bifurcation.

To further boost the industrial activities, the Central Board of Direct Taxes (CBDT) has notified these seven districts for availing tax incentives under section 32(1)(iia) and section 32AD of the Income-tax Act.

Accordingly, any manufacturing undertaking set up during the period from April 1, 2015 to March 31, 2020 in these districts of Andhra Pradesh is eligible for 15 per cent of higher additional depreciation and 15 per cent of investment allowance on the cost of plant and machinery acquired by it during the said period, the Finance Ministry said in a statement.

The seven districts of Andhra Pradesh notified as backward areas are -- Anantapur, Chittoor, Cuddapah, Kurnool, Srikakulam, Vishakhapatnam and Vizianagaram. The statement further said the aforesaid incentives are in addition to other tax benefits available under the Income-tax Act.

Earlier this month, the Centre had announced a financial package for Andhra Pradesh that includes full funding of Polavaram irrigation project, tax concessions and a special assistance, but had stopped short of giving the state special category status.