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    Andhra announces new industrial policy with key fiscal incentives, also offers support services

    Synopsis

    In a statement, the government said the new multi-faceted capability center to be set up in the state titled ‘YSR AP One’ will seek to offer support services to the new units on par with advanced countries. The specialized services include entrepreneurship facilitation, sales support and MSME (micro, small and medium enterprises) revitalization.

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    HYDERABAD: Andhra Pradesh on Monday announced a new industrial development policy which seeks to offer fiscal incentives and interventions across infrastructure, ease of doing business, skill development, and business enablement, apart from setting up a multi-faceted capability center to offer support services to the units.

    In a statement, the government said the new multi-faceted capability center to be set up in the state titled ‘YSR AP One’ will seek to offer support services to the new units on par with advanced countries. The specialized services include entrepreneurship facilitation, sales support and MSME (micro, small and medium enterprises) revitalization.

    The notable interventions under the new industrial development policy for 2020-23 include complete zoning and pre-clearance of industrial land in the state, setting up of MSME parks with plug and play facilities.

    In a bid to further enhance ease of doing business, the AP government proposes to provide deemed approval with a grace period of three years for all green category MSMEs.

    The government also proposed to establish 30 skill centers and 2 skilling universities, where global immersion programs will be offered to provide global exposure to top talent in the state.

    The key fiscal incentives proposed under the new policy for micro and small scale enterprises include 100% reimbursement of stamp duty, power subsidy of Re 1/unit, reimbursement of 100% of net SGST, 15% investment subsidy, and interest subsidy up to 3%. For medium, large and mega industries, net SGST reimbursement linked to employment generation was proposed.

    The government said the new industrial policy also lays down additional incentives for units owned by special category and women entrepreneurs.

    Andhra’s industries minister Mekapati Gowtham Reddy said the new policy was aimed at ensuring 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 Reddy.

    The new policy emphasizes 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, said the government in its statement.

    The new policy has 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
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

    1 Comment on this Story

    Indian42 days ago
    Just announcements. Please wait to see what really happens. Don’t celebrate too early about this govt - they are not reliable or trust worthy.
    The Economic Times