The Andhra Pradesh government on Friday announced a new industrial policy for the next five years aiming to attract Rs 15,000 crore investment annually. The policy is likley to create 5,00,000 jobs every year. The policy has set a target of 17% growth in manufacturing and increased investment subsidy for micro and small enterprises from Rs 15 lakh to Rs 20 lakh.
The proposed policy for 2010-2015, which received the state Cabinet approval on Friday, offers a series of incentives, especially for micro, small and medium enterprises (MSMEs). Claimed to be the best industrial policy in the country with potential to transform Andhra Pradesh into the top investment destination, the policy focuses on MSMEs and food processing units. It is also aimed at facilitating reduction of regional and sub-sectoral imbalances.The industrial policy would come into effect from July 1.
According to chief minister K Rosaiah, the new industrial policy is the ?best? when compared with the new industrial policies of other industrially advanced states like Gujarat, Karnataka, Maharashtra, and Tamil Nadu. ?The ultimate objective is to achieve manufacturing growth rate of 12% to 17%; create additional employment to five lakh persons per year?two lakh directly and three lakh indirectly; with special focus on MSMEs and food processing.? Rosaiah said.
?To take maximum advantage of the natural gas availability, industries would be promoted along the gas pipeline and tap the potential of ever expanding services sector,? the CM added.
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 under mega projects. Besides, the state will provide Rs 100 crore annually to promote industrial infrastructure for micro and small enterprises.