Andhra CM Unveils Six 'Game Changer' Policies, Aims Rs 30 Lakh Cr Investments in 5 Years

Andhra Pradesh Chief Minister N Chandrababu Naidu on Wednesday announced six "game changer" policies in various sectors, including industries, MSMEs and food processing with an objective to create 20 lakh jobs in the state and said his government was looking at attracting Rs 30 lakh crore investment in the next five years.

Naidu said the state is also hoping to get USD 10 billion in foreign direct investments.

He further said the Gross Value Addition (GVA) from the manufacturing sector which is pegged at Rs 3.4 lakh crore in 2024, would be taken to Rs 7.3 lakh crore by 2029, creating five lakh new jobs.

Explaining the key initiatives in the policies, Naidu said the state is hoping to realise Rs 5 lakh crore out of the targeted Rs 30 lakh crore investment.

He also said the exports from the state would be doubled to USD 40 billion from the existing USD 20 billion in 2024.

The chief minister announced the six policies as AP Industrial Development Policy 4.0, AP MSME & Entrepreneurship Development Policy 4.0, AP Food Processing Policy 4.0, AP Electronics Policy 4.0, AP Industrial Park Policy 4.0 and AP Integrated Clean Energy Policy 4.0.

"At a time we brought six policies. We exercised a lot on these six policies (and) we said only one thing in the polls (that creating) 20 lakh jobs is the goal of this government and we will work (towards it)… These six policies will be a game changer," said Naidu, addressing a press conference at the Secretariat, following a Cabinet meeting.

Elaborating further, the CM said the USPs of the policies include a competitive incentive structure, encouraging home-grown global brands, product perfection, promoting decarbonisation of industries at a large scale and moving towards "speed of doing business", among others.

“In the past (between 2014 and 2019) we had emerged as number one under ease of doing business (category) for four years. Now I am coining 'speed of doing business'. We will work out how fast we can do it. Will eliminate multiple (windows) to set up a single desk on how to clear (proposals) as soon as possible under a single window,” he said.

Dedicated investment facilitation cell, assistance to foreign investors, integrated data management system and re-engineering of regulatory processes and procedures are the other features of "speed of doing business" concept, he said.

Employment will be at the core of incentives, rewarding firms providing quality and high-quantity of employment, Naidu said.

To achieve target growth, Naidu identified 10 sustenance sectors such as automobiles, engineering, pharma and life sciences, metals & alloys, furniture and other focus sectors.

He also identified an equal number of sectors as propelling ones which need an ecosystem, such as aerospace, defence & drones, toys, biotechnology, semiconductors & electronics, ship-building, specialty steel, electric vehicles & batteries and others.

The state will also follow the four-pronged approach of reducing the cost of production, enabling "speed of doing business", strengthening MSMEs and entrepreneurs and financial services to encourage manufacturing.

Under AP Industrial Development Policy 4.0, the CM asserted that companies creating the highest number of jobs would stand to gain the best incentives.

Calling it one of the best incentive structures for industries in India, he said this policy offers incentives up to 62 per cent for the first 200 early investors and up to 72 per cent incentives for value-addition investors who engage in component manufacturing.

One Family One Entrepreneur is the core of AP MSME & Entrepreneurship Development Policy 4.0, which encompasses an eight-point strategy of MSME facilitation, incubation & mentoring, unit-level competitiveness, access to finance, sustainability, import/export promotion, cluster infra development and special assistance for inclusion.

According to Naidu, up to 75 per cent of investment will be offered as incentives to make MSME products price competitive.

As part of AP Food Processing Policy 4.0, the CM observed that Rs 30,000 crore investments will be targeted to create three lakh new jobs and 30,000 new entrepreneurs, among others.

Likewise, AP Electronics Policy 4.0 aims to generate five lakh jobs, and attract Rs 84,000 crore investments with the Internet of Things (IoT), air conditioning, television, mobile, 5G communications and components as focus sub-sectors.

Mega industries can receive up to 45 per cent incentives which include investment subsidy, employment subsidy, power subsidy, recruitment assistance and others.

Similarly, incentives for private park developers under AP Industrial Park Policy 4.0 encompass up to Rs 5 lakh capital subsidy per acre and exemption of charges for layout approvals, land use, stamp & registration and others.

Naidu said each of the 175 assembly constituencies will have one developed industrial park in sectors such as drone manufacturing, electric vehicles, gems & jewellery, toys, defence and aerospace and others.

Moreover, AP Integrated Clean Energy Policy 4.0 is aimed at creating a pathway to the southern state for energy self-reliance and turn it into a clean energy hub.

Targeting an investment of Rs 10 lakh crore, this policy aims to create employment for 7.5 lakh persons, achieving a solar energy capacity of 78.5 GWp, 22 GW pumped storage, and produce 1.5 MMTPA green hydrogen and derivatives under emerging technologies category.

It also aims to achieve 35 GW of wind energy capacity and install 5,000 electric vehicle charging points.

The CM observed that there is a need to bring some more new policies for sectors such as tourism, IT, virtual working and others and promised to bring them soon.

Aimed at creating 20 lakh jobs in five years, the CM noted that a framework is being ushered in by giving primacy to job creation in every policy.

Noting that these policies are targeted at the youth of the state to think globally and act globally, he said the objective is also to produce one entrepreneur per family.

According to the CM, these six policies will bring a sea change for the future of the state and its youth.

Further, he noted that the proposed Ratan Tata Innovation Hub will have its main centre in Amaravati and five regional centres at Vizag, Rajamundry, Vijayawada or Guntur, Tirupati and Anantapur.

Following a hub and spoke model with regional centres, Ratan Tata Innovation Hub will facilitate technology and skill upgradation in emerging sectors, mentorship and incubation by reputed business groups, support on product-marketing compliances, prototyping and marketing to create global brands.

Exuding confidence that Andhra Pradesh will become an innovation hub for the knowledge economy, the chief minister said all the five centres will be under Ratan Tata's name.