Aiming to attract investments in the industrial sector to the tune of Rs. 75,000 crore in next five years, the Andhra Pradesh government today announced new measures.
The Andhra Pradesh Industrial Investment Promotion Policy 2010-15 was unveiled by the Chief Minister K. Rosaiah at the Secretariat.
Mr. Rosaiah said the new policy offers a slew of incentives to various industries, particularly the micro, small and medium enterprises (MSMEs) and targets a growth rate of 12 to 15 per cent in the manufacturing sector.
“Creating large number of jobs and contributing to the overall growth of the State is the main objective of the new industrial policy,” he said.
Under the new policy Rs. 100 crore would be earmarked in the State budget annually for developing industrial infrastructure and external infrastructure in Special Economic Zones.
It also provides 100 per cent reimbursement of Value-Added Tax\Central Sales Tax for five years to micro enterprises and 50 per cent to small enterprises. Under the previous policy, the reimbursement was limited to 25 per cent.
Moreover, investment subsidy for micro and small enterprises has been raised to Rs. 20 lakh with an additional Rs. 5 lakh subsidy for women entrepreneurs.
The new policy provides 30-40 per cent land reservation to micro, small and medium enterprises (MSMEs) in upcoming industrial estates. Land conversion charges have also been limited to Rs. 10 lakh.
The government also announced a fixed power cost reimbursement at the rate of 75 paise per unit for 5 years and Re. 1 per unit for SC\ST entrepreneurs, among other incentives that they would get for setting up industrial units.
Following the Tamil Nadu, Maharashtra, Gujarat and Karnataka model, the AP government has also enhanced the investment limit to Rs. 250 crore to classify a venture as a mega project.
Any project creating employment for more than 2000 people would also be considered for a special package of incentives under the mega project.
The policy declares food processing as a seasonal industry, making it eligible to avail payment of minimum electricity charges during closure period, while food parks would be considered for tailor-made benefits on case-to-case basis.
Mr. Rosaiah also urged industrialists to “be the ambassadors of the State” and invite major industrial houses from across the country and abroad to come to Andhra Pradesh.