1. This writ petition was filed seeking declaration that the petitioner is entitled to the incentive of Interest Free Sales Tax Loan under the Scheme introduced by the first respondent in G.O.Ms. No. 224, Industries and Commerce Department, dated 9-3-1976 by holding that the provisions of A.P. Interest Free Sales Tax Loans for Industries (Imposition of Ceiling) Act, 1987 (hereinafter referred to as 'the Act') does not affect the rights of the petitioner to claim the above mentioned incentive.

2 The writ petition was filed on the basis of the following facts alleged in the affidavit filed in support of the writ petition.

3. The petitioner, which is a Public Limited Company having its registered Office at Adoni, is engaged in the business of manufacture of Caustic Soda and other allied products. It was set up at Gandiparla Village, Kurnool District, which is an industrially backward area. The unit is established at a total cost of Rs. 30 (thirty) crores with the collaboration of an Italian Company - M/s Oronzio De Nora Impaianti, Milani, Italy. Government of Andhra Pradesh in G.O. Ms. No. 224, Industries and Commerce Depart­ment, dated 9-3-1976 introduced new Scheme of State incentives