The Andhra Pradesh government has notified the Industrial Development Policy (IDP) for five years starting April 1, 2023, through G.O. Ms. No. 22, dated March 19, one week before the expiry of IDP 2020-23.
Applicable to various sectors, including textiles, the new IDP has been so drafted that national and international industrial trends, changes in relevant policies of the Government of India, learnings from international experiences, especially in the promotion of Micro, Small and Medium Enterprisesm (MSMEs), and views of all stakeholders have been taken into account.
The policy will be in force from April 1, 2023 to March 31, 2027, and operational guidelines for incentives mentioned in it will be notified separately.
Conditions
The provision of incentives will be subject to the following conditions: the incentives will be restricted to 100% of the Eligible Fixed Cost of Investment (EFCI), excluding the cost of land, and limited to 20% in each one of those years.
Besides, only brownfield projects where the EFCI and capacity expansion are greater than 50% are entitled to the incentives.
The IDP 2023-27 identified 12 sectors as thrust areas in view of their social and economic significance.
They are chemicals and petrochemicals; pharmaceuticals and bulk drugs; textiles and apparels; automobiles and auto components; electronics and IT; agro and food processing; engineering, medical devices; defence and aerospace; machinery and equipment; renewable energy component manufacturing; and futuristic segments of industry such as Industry 4.0 manufacturing, biotech, green hydrogen and electric vehicles.
The new policy outlines nine pillars of accomplishment, namely economic growth; port- led development; enhanced logistical ecosystem; developing world-class ready-to-occupy industrial spaces; end-to-end investor facilitation; employment generation; strengthening employable manpower base; entrepreneurship development and reinforcing start-up culture; and bringing women, minorities and under-privileged sections to the forefront of economic development process.
Land allotment
Emphasis has been laid on the allotment of land by the A.P. Industrial Infrastructure Corporation within 21 days of receipt of applications, and realignment of the land lease regulations.
