Vijayawada: To promote electronic manufacturing and green energy on a large scale, the state govt has introduced two separate policies offering several incentives in both sectors, aiming to attract investments and create job opportunities.
The state govt also announced a policy for the establishment of ‘Private Industrial Parks‘ with ‘Plug and Play’ industrial infrastructure.
The electronic manufacturing policy aims to attract Rs 84k crore investments in all categories, which can create 5 lakh jobs. The production value of the investments, if realised, is estimated at Rs 4.2 lakh crore.
The state govt has divided the units into three categories: sub-large, large, and mega units, based on the size of investments.
Units with a fixed cost of Rs 50 crore to Rs 200 crore are called sub-large, while units with investments between Rs 200 crore and Rs 1000 crore are placed in the large category. Units with investments between Rs 1000 crore and Rs 5000 crore are classified as mega units. The state govt offered a 20% to 30% incentive on FCI in 5 to 10 instalments.
Andhra Pradesh is the first to introduce the Private Industrial Parks (PIPs) policy. According to chief minister N Chandrababu Naidu, the intent of the policy is to establish more industrial parks with private participation along with the three industrial corridors.
The PIPs are to be developed into four segments: nano, MSME, large or sector-specific, and mega parks, based on the extent to which they are being set up. Parks set up in less than 10 acres are called nano, while those in more than 1000 acres are referred to as mega parks. The policy will provide a 30% capital subsidy for flatted factory complexes and is flexible in various models like Joint Ventures (JV), Build Own Operate (BOO), and Design Build Finance Operate and Transfer (DBFOT).
The Integrated Clean Energy (ICE) policy was introduced with key objectives of harnessing the renewable energy potential of the state, optimising energy costs through RE and cutting-edge technology adoption, promoting the manufacturing ecosystem, facilitating the development of a circular economy, and creating employment opportunities.
Naidu stated that the state govt is offering robust incentives to investors in the sector in various forms, such as providing land parcels, exemption of land conversion fees, and SGST exemption. The policy aims to attract Rs 10 lakh crore investments in the next five years to create 7.5 lakh jobs directly and indirectly.
