Hyderabad, June 18 (IANS) Andhra Pradesh Friday announced a new industrial policy for the next five years, aiming to attract Rs.15,000 crore investment annually and create 500,000 jobs every year.
The policy has set a target of 17 percent growth in manufacturing and increased investment subsidy for micro and small enterprises from Rs.15 lakh to Rs.20 lakh.
The state cabinet, chaired by Chief Minister K. Rosaiah, approved the policy for 2010-2015, which offers a series of incentives, especially for micro, small and medium enterprises (MSMEs).
Information and Public Relations Minister J. Geeta Reddy told reporters that it was the best industrial policy in the country with potential to transform Andhra Pradesh into the top investment destination.
The policy, which comes into effect from July 1, focuses on MSMEs and food processing units. It is also aimed at facilitating reduction of regional and sub-sectoral imbalances.
The government will promote industries along the gas pipeline laid in the state to take advantage of the availability of natural gas.
The policy has also changed the definition of a mega project by enhancing the existing limit of Rs.100 crore investment to Rs.250 crore. ‘However, any project creating employment for more than 2,000 persons is also proposed for consideration of special package of incentives under mega projects,’ said a government statement.
The policy offers 75 paise reimbursement of power cost for each unit. The present electricity tariff for industry is Rs.3.53 per unit, the lowest compared to other industrially developed states.
The government will provide Rs.100 crore every year for promotion of industrial infrastructure for micro and small enterprises.
The other highlights of the new policy includes 25 percent of VAT (value added tax) reimbursement for large and medium enterprises, 50 percent VAT reimbursement for small enterprises, 5 percent additional subsidy to women entrepreneurs, 10 percent of plots to women entrepreneurs in the new industrial estates, special incentives for entrepreneurs belonging to scheduled castes and scheduled tribes.