VISAKHAPATNAM: Andhra Pradesh is planning to enact an Investment Protection Act to safeguard investments and ensure continuity of policy commitments across successive governments.
Minister for IT, Electronics and Real-Time Governance Nara Lokesh announced the proposal at the 31st CII Partnership Summit in Visakhapatnam on Thursday, stating that the bill would be tabled in the upcoming Assembly session.
“Many investors have asked me about this. We are the State actively considering it, and we will enact it,” Lokesh said, urging Union Minister for Commerce and Industry Piyush Goyal to facilitate the necessary policy clearances, and explore the implementation of a similar legislation at the national level.
The proposed legislation seeks to address investor concerns over political uncertainty, policy changes, the State’s fiscal position, and the fulfilment of investment commitments, particularly industrial incentives.
The government is also working on an escrow mechanism to ensure timely payment of incentives to industries. Under the proposed arrangement, a portion of the State’s tax collections equivalent to the incentives due would be transferred to an escrow account for disbursement.
Lokesh maintained that the mechanism would ensure that approved incentives reached industries without administrative delays or government interference. The IT Minister termed it a key measure to improve investor confidence.
Lokesh asks firms to invest, innovate and expand in AP
Inviting companies to establish manufacturing facilities and shift their headquarters to Andhra Pradesh, the IT Minister highlighted the State’s coastline, connectivity, skilled workforce and industrial opportunities. He outlined the government’s approach through its three priorities, including speed, stability and service, and assured investors of continued support.
“Do not just build factories, move your headquarters here. Invest here and innovate here. Our doors are always open for you,” he added.
Lokesh also referred to four greenfield ports under construction at Ramayapatnam, Mulapeta, Machilipatnam and Kakinada, which are expected to double the State’s existing cargo-handling capacity.
The State has received investment commitments worth Rs 22.6 lakh crore since June 2024. Of these, projects worth Rs 17.2 lakh crore, accounting for 73 per cent of the total commitments, have received approvals.
The government is targeting an additional Rs 9.5 lakh crore in investment commitments at the summit.