Chief Minister N. Chandrababu Naidu on Wednesday said that the objective of the New Industrial Policy was to increase the contribution of manufacturing to GSDP from 9.95 per cent (2013-14) to 15 per cent and industries from 20.7 per cent to 25 per cent.
He added that the government would promote industrial clusters and industrial townships like Sri City and give thrust to agro and food processing, pharma, biotechnology, textile and apparel, electronics and IT, aerospace and defence, automobile and auto component, petroleum, leather, chemical, energy, mineral-based industries.
The financial incentives include fixed power cost reimbursement at Re.1 per unit for five years from the date of commencement of commercial production, 100 per cent reimbursement of stamp duty on purchase or lease of land for industrial use, VAT incentives for five years, 100 per cent for small and micro enterprises and 75 per cent for medium and 50 per cent for larger enterprises and 25 per cent subsidy on capital investment of project for green and cleaner production measures.
