August 10, 2020

Andhra Pradesh Unveils the New Industrial Development Policy 2020-23

Andhra Pradesh Unveils the New Industrial Development Policy 2020-23

The Government of Andhra Pradesh unveiled Industrial Development Policy 2020-23 today. The policy was released by Minister for Industries, Sri. Mekapati Gowtham Reddy in a function held at Vijayawada today. Sri R. Karikal Valaven, Special Chief Secretary, Industries presided over the event. The event was also attended by, Smt. RK Roja, Chairperson, APIIC, Sri Krishna G.V. Giri, Advisor to Hon’ble Chief Minister on industries and EVP APEDB, and Sri. JVN Subramanyam, Director Industries.Over a hundred representatives from industrial and academic communities joined the event virtually over video conference.

The highlight of the policy is ‘YSR AP One’ a new multi-faceted capability centreto be setup in the state. The new centrewill offer ten key services including entrepreneurship facilitation, sales support and MSME revitalization. According to Sri MGowtham Reddy, Minister for Industries, this is being setup “in line with the vision of Hon’ble 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 handhold and support them in every aspect of the business so that they can realize their full potential,” said Mr Reddy.

The new policy unveiled today is based on lays emphasis on putting equal focus 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. Speaking on the occasion, Sri Valaven, Spl CS, Industries mentioned that the Government is committed to delivering on each element of the policy: “Hon’ble CM has underlined this commitment by releasing all the dues owed to MSMEs pending since last several years, despite severe financial crunch due to COVID crisis”.

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 centres 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 women entrepreneurs belonging to disadvantaged sections of the society.

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.

Mr Ravi Sannareddy, President Sri City, Mr JoshFoulger,Country Head and MD from Foxconn and Prof. Bhagwan Chowdhry from ISB spoke on the occasion. Mr Krishna G.V. Giri, Advisor to Hon’ble CM on industries and EVP EDB delivered the vote of thanks. Thanking the efforts made by the team, Mr Giri expressed confidence in the industrial policy unleashing animal spirits in the state.

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