VIJAYAWADA: Chief Minister N Chandrababu Naidu on Wednesday unveiled a comprehensive industrial and economic policy with six components to boost industrial growth with focus on job creation, fostering entrepreneurship, addressing climate change, and ultimately generating wealth for the State.
The new policies — Industrial Development Policy, MSME & Entrepreneur Development Policy, Food Processing Policy, Electronics Policy, Private Parks Policy, and Integrated Clean Energy Policy — were discussed and approved during the State Cabinet meeting, chaired by Naidu, on Wednesday.
Briefing mediapersons on the policies and decisions taken, the Chief Minister said the TDP-led NDA government in the State will forge ahead with the slogan ‘Think Globally and Act Globally’ to achieve its ultimate goal of creating 20 lakh jobs over the next five years. “In the knowledge economy, distance is not a criterion. We have to think and act globally to succeed,” he remarked.
Reiterating that people should aspire to be job givers and not job seekers, Naidu said ‘One Family - One Entrepreneur’ is the cornerstone of the new industrial policies of Andhra Pradesh. “This is possible with focus on MSMEs and proper skill training. A special corpus of Rs 500 crore each will be set up for MSMEs and the food processing industry,” he explained.
Further, he stressed that unlike previous policies where the volume and value of investments were prioritised, the coalition government’s focus will be on generating a large number of jobs.
The government has set a target to attract investments to the tune of Rs 30,000 crore in the food processing industry and generate three lakh jobs.
Firms offering more jobs to get higher incentives
It is looking to bring in Rs 84,000-crore investments in the electronics sector and create 5 lakh jobs. In the green energy sector, the target is to attract investments worth Rs 10 lakh crore and generate 10 lakh jobs. Asserting that the government is committed to reigniting the momentum of the State by offering an enabling ecosystem and competitive incentives to industries, Naidu said, “As mentioned in our election manifesto, we will develop, bring investments and create wealth in the State. The income generated will be used for the welfare of the poor. We will rebuild brand Andhra Pradesh which was ruined, and strive to attract foreign investment.”
Elaborating on the incentives for industries, he clarified that incentives should help add value. While large and mega manufacturers can claim incentives as high as 72% of FCI depending on the value creation in the State, up to 75% of investment will be offered as incentive to make products of MSMEs price competitive. “Incentives will be directly proportional to the number of jobs industries create. Our policies will strive to promote global brands,” he said.
Observing that no one has spoke about the decarbonisation of industries, Naidu pointed out that Andhra Pradesh is the first State in the country to focus on it. “Our goal is not Ease of Doing Business, but Speed of Doing Business,” he added.
The Chief Minister explained that companies promising higher employment will be offered up to 10% higher incentives. Companies focusing on reducing carbon footprint will be incentivised with an additional de-carb subsidy of up to 6% FCI. The first 200 approved proposals will get an incentive of up to 60% FCI.
Pointing out that agriculture and allied sectors are the mainstays of the State’s economy, “Rayalaseema can become the fruit basket of the world with a focus on horticulture. Zero Budget Natural Farming can create a new trend in food habits, hence the emphasis on food processing,” he explained. As part of the plan to take Rayalaseema to the next level, Naidu said focus will be laid on making the region an automobile hub, and promote solar and wind energy. In North Andhra, he said, the focus will be on port-based economy. “We will create an industrial hub in 10,000 acres,” he added.
CABINET NOD FOR THREE SUB-COMMITTEES
The Cabinet approved the setting up of three cabinet sub-committees. IT Minister N Lokesh will head the sub-committee tasked with creating 20 lakh jobs. In contrast, Civil Supplies Minister Nadendla Manohar will head the panel which will look after the price stabilisation of essential commodities. Home Minister Vangalapudi Anitha will work to free the State from ganja and other narcotics. A special Anti-Narcotics Task Force will also be created