A New Industrial and Investment Promotion Policy in India

By admin • July 2nd, 2010

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The South-Eastern state Andhra Pradesh in India has announced, through its Chief Minister Mr. K Rosaiah, a new Industrial and Investment Promotion Policy for 2010-2015 which is aimed at bringing in Rs 75,000 crore (US$ 16.1 billion) of investment to the state at a rate of 15,000 crore (US$ 320 million) a year.

Speaking at the Secretariat where the members of the Confederation of Indian Industry and Federation of Andhra Pradesh Chamber of Commerce and Industries were present, Rosaiah said that Andhra Pradesh has a vast untapped potential which can be exploited to attract more investments and help create jobs in the state.

The new framework for the 2010-2015 policy is designed to drive investments to the state through new policies and incentives, which will extend/benefit from the framework that was applied for the period 2005-2010. The new framework of the policy could potentially increase growth in the industrial sector between 12-15% a year.

The new policy includes VAT subsidies, special subsidies to SC/ST and special subsidies to benefit women entrepreneurs. A power subsidy of 75 paise a unit will also be in place to encourage industries to develop additional and new sources of power. In addition Rs 100 crore (US$ 21 million) a year will be provided through budget supports for new investments which will go towards implementing new and strengthening existing infrastructure for industries.

Rosaiah is hoping that the state can benefit from major projects, such as the setup of the NTPC-BHEL power equipment manufacturing base in Andhra Pradesh, to act as ‘catalyst’ in attracting new investors to the state. Rosaiah also said that the NTPC-BHEL base would not have been possible if the state didn’t have the ability to support such large projects.

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