In what is being billed as a ‘game changer’ initiative, the NDA government in Andhra Pradesh has unveiled a bunch of six policies, covering various sectors including major industries, electronics, clean energy and food processing, with an objective to attract Rs 30 lakh crore investments over the next five years and create over 20 lakh jobs.
Chief Minister N Chandrababu Naidu announced the salient features of the new policies after the cabinet nod.
The industrial development policy has identified four categories with an investment potential ranging from Rs 50 crore under the sub-large category to more than Rs 5,000 crore under the ultra-mega category with a customised incentive scheme.
Naidu said that the policies were finalised after comprehensive consultations with industry veterans and benchmarking studies and are in alignment with election manifesto promises.
The six policies are AP Industrial Development Policy, AP MSME & Entrepreneur Development Policy, AP Food Processing Policy, AP Electronics Policy, AP Private Parks and AP Integrated Clean Energy Policy.
“We are committed to reigniting the momentum by offering an enabling ecosystem and competitive incentives to attract industries back to the state. All the policies are designed to be forward-looking, aiming to boost industrial growth by focusing on job creation, fostering entrepreneurship, addressing climate change, and ultimately generating wealth for the state,” the Chief Minister said.
On industrial development policy, he said his government was aiming at attracting Rs 30 lakh crore in the manufacturing sector, besides attracting foreign direct investment of US $ 10bn (about Rs 83,000 crore) by attracting Fortune 500 companies to the state.
“We have targeted at developing 175 industrial parks with an export potential of Rs 33,200 crore,” he said.
“Companies promising higher employment will be offered up to 10% higher incentives and those focusing on reducing carbon footprint are incentivised with a de-carb subsidy of up to 6%,” he said.
With regard to MSME & Entrepreneur Development Policy, Naidu said the government would encourage one entrepreneur from one family in the next five years. “It is aimed at attracting an investment of Rs 50,000 crore in the manufacturing sector by encouraging 2.2 million MSME (medium, small and major enterprises) units under manufacturing and services sectors, which would generate 500,000 jobs.
Naidu announced the establishment of the Ratan Tata Innovation Hub with its headquarters at Amaravati having five zonal centres covering all regions of the state for entrepreneur development. It would focus on mentoring, venture capital tie-ups, financial support, knowledge transmission, legal aid and integration with universities led by leading industry groups.
“This innovation hub will be set up with a corpus fund of Rs 500 crore to be spent in the next five years and it will bring new and existing entrepreneurs under one roof. It will support quality production and adherence to global standards, besides helping them market domestic manufactured products," Naidu said.
As per the policy, the government would notify three tribal districts as organic zones and establish commodity boards for mango, banana and cashew plantations. They would utilise a corpus fund of Rs 250 crore for research and development in food processing technology and quality certification, he said.
With regard to the AP Electronics Manufacturing Policy, the chief minister said the policy targeted attracting investment of Rs 84,000 crore from all electronic categories in the next five years and generating employment of five lakh. The policy was aimed at producing IT products to the tune of Rs 4.2 lakh crore.
As regards AP Private Industrial Parks policy, Naidu said the government would encourage the establishment of industrial parks with private participation, along with the three industrial corridors with world-class infrastructure with plug-and-play facilities.
Under the policy, it is envisaged to create the following sector-specific parks, including aqua, agriculture and horticulture processing, biotechnology, defence and aerospace, drone manufacturing, electric vehicles (EV), gems and jewellery, leather and footwear, pharmaceutical, semiconductor and electronics and textiles.
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