AP new industrial policy identifies 10 thrust areas to propel economic growth

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The Andhra Pradesh government on Monday, August 10, unveiled its new Industrial policy for the next four years with sharp focus on micro, small and medium (MSM)-scale industries.

The policy unveiled by Minister of Industries and Commerce for Andhra Pradesh, Mekapati Goutham Reddy has identified 10 sectors including food processing, textiles, Pharma and biotechnology, Aerospace, among others as ‘thrust sectors’, for which the government will extensively reach out to investors.

A key feature of the new policy is the development of a separate industrial zoning and safety policy. The idea is to provide a risk-free investment-friendly environment for industries with minimal effect of environment.

The new policy proposes financial incentives for micro and small industries providing a 100% reimbursement of stamp duty and State Goods and Service Tax for five years. A power reimbursement of Rs 1 per unit for 5 years is also being made available to the sector.

The state is also willing to reimburse 25% of land conversion charges of Rs 10 lakh for aspiring entrepreneurs in this sector. A 15 % investment subsidy up to Rs 20 lakh along with a 3% interest subsidy for 5 years is also part of the policy.

The policy also contain special provisions for giving a boost to women entrepreneurs from scheduled caste, tribe backward caste and minority communities, by reimbursing 100% stamp duty. A 50% land rebate on land cost for up to Rs 20 lakh, a 25 % land conversion rate is being provided to facilitate more women entrepreneurs. Further, SGST reimbursement, a power reimbursement of Rs 1.25 per unit and subsidy of 3% on bank interest are also being offered for 5 years.

Apart from this, the state has also come up with tailor-made incentives for Megaprojects that promise to generate more than 2,000 jobs. The state has also launched YSR AP One a series of Cells set up to facilitate an end-to-end business support, market research assistance for companies, marketing, branding, sales support, revitalisation, investor outreach and scheme support.

'It would provide handholding support (to investors) during pre-establishment and setup of industrial units, post-setup support, backward and forward linkages and access to market and new technologies among other things, the minister said.

He said that the policy was in tune with the chief minister’s vision for on all-round holistic policy with empowerment being the crucial factor. The CM wanted a dynamic policy rather than a stagnant one. The idea is to be more adaptable in the post-COVID-19 era where the predictability is uncertain, the focus is to adapt as we go along,”

The current lease and buy models for land allotment will be replaced with a composite lease+buy model, where an industrialist gets to purchase the land after successfully running his unit for 10 years.

"The manufacturing sector, as an employment provider, remains a high priority for the state. The government will undertake structural reforms to accelerate industrialisation in the state. We believe that providing the right facilities at the right cost and offering transparent approvals is critical to the success of the industrial sector," Goutham Reddy noted (with inputs from PTI)

Image Credit: Telangana Today

 

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