New industry policy to make Andhra Pradesh most Investor-Friendly State

Amaravati: Chief Minister YS Jagan Mohan Reddy has been asserting that the new industrial policy should be practical that invited faith in the government so that investments keep flowing unabated to the State. Have the changes been affected to boost the industry outlook in the State?

To begin with, the AP government has woken up early in the lockdown period to evolve a vibrant and viable policy to attract investments to gear up for the post-pandemic phase. The AP government has recently directed the officials to clear pending incentives of the past five years; Rs 4,800 crore to industries on installment basis and to prioritize the industries based on the employment scale.

The government will be providing land, water, and electricity and quality services should be provided to the industries on behalf of the government to boost the investments in the state. It has also asked officials to prioritize the micro, small and medium enterprises (MSMEs) following keenly the policies of the Centre in the recent weeks. Sources reveal that while laying emphasis on the MSMEs and construction sectors, the officials at the AP Industrial department are busy experimenting with the new realities.

The AP government was supposed to announce the Industrial Policy in the month of April 2020, due to the Covid-19 and subsequent lockdown, it has not materialized till date. The CM's review meetings with the task force committee constituted for the purpose are keeping them on their toes. The plan is to provide a 'never-before-opportunity' for industry to take root and flourish in AP with the shortest gestation period.

At the same time, the emphasis is on ensuring zero pollution from industries. The officials have been instructed that the government should take responsibility to collect the waste from industries and process it. The CM has also advised the use of desalination water in industries to protect the environment and asked the officials to speed up works in this regard.

The Andhra Pradesh government facilitated a total investment of Rs 20,000 crore from 39 large & mega industrial units in the State since June 2019. These investments are expected to generate 33,000 jobs. Further, eight more large & mega units at an outlay of Rs 7,916 crore and employment potential of 4,086 are under trial production stage, while eight more units with an investment of Rs 8,663 crore and employment potential of 14,205 are in the machinery erection stage. (The MSME sector is already set to be put in place with over 6,572 MSME units with an investment of Rs 1,840 crore providing employment to 49,001 persons).

According to Dr Rajat Bhargava, Special Chief Secretary, Industries & Commerce Department, has a focused approach to attract industries in areas where the State holds natural competitive advantages. The new industrial policy with a focus on faster clearances and transparency and accountability in land allotments is on the anvil in the State.

Agriculture, food processing, pharmaceuticals, oil and petrochemicals and information technology sectors are just a few sectors getting priority here.

Industries Minister Goutham Reddy welcomed the initiatives of Union government, including Rs 3 lakh crore emergency working capital facility for MSMEs, Rs 20,000 crore subordinate debt for stressed MSMEs, Rs 50,000 crore equity infusion through MSME Fund of Funds, extending the Employees Provident Fund support and others. He observed that as the scope of MSMEs extend, textile industries too might benefit. The collateral-free automatic loans to the institutions will certainly play a major role, he added.

AP is all set to achieve the most-industry friendly State tag soon going by the plans afoot.