The new industrial policy of Andhra Pradesh hopes to support industries with a major focus on ease of doing business with quicker approvals for projects, reducing upfront cost for setting up new micro and small industries and extending support for operations and scale-up. While the policy hopes to encourage industries to hire locally, it also focuses on encouraging the setting of industrial clusters and parks by easing up the conversion of land for industrial purposes.
Here are a few takeaways from the Andhra Pradesh's new industrial policy 2020-23:
1) Industrial plots will be allocated only post completion of pre-clearance and zoning to facilitate fast set up and risk-free operation. Setting up of Micro Small and Medium Enterprises (MSME) parks and providing plug and play facility including ready-built factory shell and all basic facilities in MSME parks, as per their requirement.
2) Ten sectors have been identified as thrust areas for specific interventions. Food processing, Pharma and biotech, textiles, electronics, footwear and leather, toys and furniture, chemicals and petrochemicals, aerospace and defence, auto, machinery, precision equipment and minerals are all expected to benefit from the policy.
3) End to End deemed approvals for all green category MSMEs in notified industrial parks, this allows MSMEs to begin operations after getting an online acknowledgement by submitting a declaration of intent but with a condition to formalise all the approvals within three years.
4) The state has also proposed 30 skill development centres and 2 skill development universities. A digital platform is also under development to help companies find skilled labour matching their requirement.
5) Setting up of ‘YSR AP ONE’ for End to End hand holding of entrepreneurs. The aim is to integrate services from multiple state agencies under a multi-faceted business establishment centre which will act as a one-stop resource and support centre for industries. Several cells catering to market research, marketing, branding, sales, schemes are part of this initiative.
6) Industrial zoning is a key focus area in the new policy. All industrial land will be environmentally zoned as per the Environment Management Plan (EMP) and type of industries permitted will be notified. Before the allotment of land APIIC will conduct an Environmental Impact Assessment (EIA). All necessary clearance will be completed before the industrial plot allocation.
7) While Megaindustries will be allowed in Industrial parks and in independent locations as per the EMP, the Hazardous industries and bulk drugs or API manufacturing will be permitted only in designated parks with environment protection.
8) The new policy proposes financial incentives for Micro and Small industries providing a 100% reimbursement of stamp duty and State Goods and Service Tax for five years. Apart from the initiatives to boost women entrepreneurs from scheduled caste, tribe backward caste and minority communities, by reimbursing 100% stamp duty.
9) Replacing existing lease and buy options in Andhra Pradesh Industrial Infrastructure Corporation (APIIC) land policy with 'Lease + Buy model' with low upfront payment and option to buy land post 10 years of successful operation.
10) The state also has come up with tailor-made incentives for Megaprojects that promise to generate more than 2,000 jobs. State Goods and Service Tax (SGST) concessions for those provisioning jobs for more than 1000 persons.