The Government of Andhra Pradesh unveiled new Industrial Development Policy 2020-23. The policy was released by Minister for Industries Mekapati Gowtham Reddy in a function held at Vijayawada.The event was also attended by RK Roja, Chairperson, APIIC and other officials.The highlight of the policy is ‘YSR AP One’ a new multi-faceted capability center to be setup in the state. The new centre will offer ten key services including entrepreneurship facilitation, sales support and MSME revitalization. The minister Gowtam Reddy said , “in line with the vision of the CM to ensure that relationship between the state government and industries should be that of partnership and not transactional. We are committed to not just welcome units to state with a red carpet, but to handhold and support them in every aspect of business so that they can realize their full potential”
The new Industrial policy of Andhra Pradesh focuses on supporting existing units along with facilitating new units, ensuring balanced growth across regions and communities and reducing the upfront cost and risk of doing business. The new industrial policy for 2020-23 proposes interventions across infrastructure, ease of doing business, skill development, business enablement and fiscal incentives.
Notable interventions include complete zoning and pre-clearance of industrial land in the state, setting up of MSME parks with plug and play facilities. To further enhance ease of doing business, the Government proposes to provide deemed approval with a grace period of 3 years for all green category MSMEs. 30 skill centers and 2 skilling universities shall be established in the state. Global immersion programs shall be started to provide global exposure to top talent in the state.
Fiscal incentives proposed for MSEs include 100% reimbursement of stamp duty, power subsidy of Re 1/unit, reimbursement of 100% of net SGST, 15% investment subsidy and interest subsidy upto 3%. For medium, large and mega industries, net SGST reimbursement linked to employment generation has been proposed. The policy also lays down additional incentives for units owned by special category and women entrepreneurs.
The policy identified 10 thrust sectors including Food processing, Textiles, Pharma and Biotechnology, Electronics, Defence and Aerospace, Leather and Footwear, Toys and Furniture, Petrochemical and allied, Automobiles, Machinery, precision equipment and mineral based industries.