Andhra Pradesh unveiled its much-awaited industrial policy for the period 2020-2023. Touted by many to define the role and scope of industrial activity in the state the new industrial policy has been in the making for quite some time now.
TheIndustry sector (excluding IT&ITES)in the state contributes 23% of state GDP and had witnessed a growth of 5.67% in 2019-20.
AP currently houses over 300 industrial parks with likes of Sri City, APSEZ, Jawaharlal Nehru Pharma city, Brandix India Apparel city (BIAC).
As per the government Industrial sector exports from Andhra Pradesh in 2018-19 stood atRs 98,983 crore wherein the major exports came fromdrugs and pharmaceuticals, marine products, agriculture produce and agro based products handicrafts and engineering products.
With this in mind it is no surprise that the new industrial policy was being awaited by many to see what chief minister Mr. Jagan Mohan Reddy’s focus areas of growth would be.
“The CM had always told me that he wanted an industrial policy that was practical and which we can commit to” said the Industries and commerce minister, Mr Mekapati Gowtham Reddy while launching the Industrial policy 2020-2023.
He further commented on why the policy was for 3 years and not 5 years “In this time of COVID-19 it is important that our leadership was dynamic and not static we therefore want to see how these 3 years pan out” said Mr Gowtham Reddy.
“Through this new industrial policy we want to bring back the spirit of entrepreneurship in the state of Andhra Pradesh.”
— Mr Mekapati Goutham Reddy, Minister of Industries, commerce, investments, infrastructure, IT & skill development and training, GoAP
New Industrial Policy
The new industrial policy of Andhra Pradesh emphasiseson five basic themes i.e. Infrastructure, Ease of doing business, Skilling and labor availability, End to end hand holding and Incentives.
In fact the industrial policy also brought out a one-stop resource and support center for investors and entrepreneurs titled YSR AP ONE.
YSR AP ONE aims to integrate services from multiple state agencies under one umbrella. As per the policy this will be a central multi-faceted capability center which will offer the following 10 services to investors and entrepreneurs:
Entrepreneurship facilitation cell, market research cell, marketing&branding cell, sales support cell, scheme support cell, MSME revitalization cell, business enablement cell, and investor reach out cell, incentive management cell and special category cell.
Policy’s 5 broad themes:
“Infrastructure, Ease of doing business, Skilling and labor availability, End to end hand holding and Incentives”
“We’ve prepared this policy after extensive stakeholder consultations with industry, academia, incorporating global bets practices while ensuring that the aspirations of the youth are addressed in this policy.
We intend to provide the best-in-class infrastructure, zero hassle setup, skilled labor availability and end to end hand holding support for units to provide an industry-friendly environment at par with international standards. The focus of the policy is on asset creation-providing ready-built pre-cleared facilities and skill development centers which can serve as a base for the growth of the state” said the minister of Industries, commerce, investments, infrastructure, IT & skill development and training, Mr Goutham Reddy.
The new industrial policy listed these as the thrust sectors: Food Processing, toys and furniture, Pharma and biotechnology, Petrochemicals, Textiles, Aerospace and defense, electronics, Automobiles and components, footwear and leather, machinery, precision equipment and mineral based industries.
“Online approval process for all necessary clearances for starting and operating an industry to be given in 21 working days”
Ease of Doing Business:
In order to give a fillip to the ease of doing business parameter online approval process for all necessary clearances for starting and operating an industry will be given in 21 working days.
A central helpline will be set up to ensure seamless on-ground implementation of the approvals and regular district level industrial meetings under district collector will settle all pending approvals and grievances. Similarly regular state level banker’s committee meetings will be held to address issues with loan disbursals.
“Curriculum for skill development and training to be done in consultation with industries”
Labour and skill Development:
Skill development and training were given prominence too in the industrial policy. Thirty skill development centers are to be set up. What is encouraging is that the curriculum for this will be developed in consultation with industries and skill gap mapping.
Two skill development universities are to be set up and one among them would provide high end skills like AI, Robotics, Virtual Reality, Industry 4.0.
A digital platform to match skilled labor in the state with the requirements of businesses to be developed and there will be mandatory apprenticeship.
A slew of Incentives for Micro and small enterprises were also announced. Some of which include: Reimbursement of 100% stamp duty and transfer duty paid by the industry on purchase of land meant for industrial use, Reimbursement of 100% stamp duty for lease of land/shed/buildings, mortgages and hypothecations, fixed power cost reimbursement @ Rs1 per unit for a period of 5 years from the date of commencement of commercial production.
Incentives for Medium Enterprises, Large and Mega Industries are linked to employment generation.
Focus on infrastructure:
Providing plug and play facilities to MSMEs across the state
Developing mega industrial parks/clusters along the three major corridors
Pre-clearance of land parcels in parks in line with state environment plan
Providing land and plug and play facilities at affordable upfront price
Industrial Zoning and Land Allotment:
The policy stated that all industrial land in the state will be environmentally zoned as per the environmental management plan (EMP).
APIIC to complete the environmental impact assessment for the notified industrial park before allotment of land and all necessary clearances will be completed before the allocation of industrial plots to MSMEs and large industries.
For hazardous Industries and Bulk drugs or API manufacturing will be permitted only in designated park with environmental protection.
The government also plans on setting up world class incubation centers which will promote start-ups and new ventures.