2010-2015
Industrial Policy
to be the best in the country: CM
Hyderabad|India|June'2010: The Chief Minister Dr Rosaiah
categorically said that when the industrial policy for 2010-2015 comes
into force, Andhra Pradesh will become the best investment destination in
the country. The new industrial policy will be discussed and likely to be
approved by the State Cabinet tomorrow is the best in the country and in
many ways better than the present. The new industrial policy offers better
incentives to the investors and will definitely attract more investments
in the State.
In this context, the Chief Minister discussed in detail the new industrial
policy which will come before the cabinet, with the Minister for Major
Industries, Kanna Lakshminarayana, Principal Secretary, Industries, Sam
Bob and Commissioner, Industries, Anantaramu. The Chief Minister wanted
the new Policy to provide maximum incentive to Micro and Small
Entrepreneurs. 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 Chief Minister said the ultimate objective is to achieve manufacturing
growth rate of 12% to 17%; create additional employment to 5 lakh persons
per year -- 2 lakh directly and 3 lakh indirectly; with special focus on
Micro, Small and Medium Enterprises (MSMEs) and Food Processing;
facilitate reduction of regional and sub-sector imbalances; leverage the
existing sectoral strengths as well as the natural resources for value
addition. 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 new policy ensures creation of quality infrastructure in the
Industrial Clusters, Industrial Estates, promotion of Manufacturing
Investment Regions along National Highways to capitalize the strengths in
line with GoI initiatives for value addition within the State; Encouraging
industrial estates in backward revenue divisions in PPP mode and provides
differential rate of incentives to MSMEs in backward revenue divisions to
reduce regional imbalances.
It also provides sector specific Policies/Focus to capitalize the sectoral
strengths like Textiles, Cement, Pharma, Food Processing, Steel, Granite
etc.; alignment of policy incentives to ensure optimum utilization of GoI
Schemes; Skill Development Policy to meet the industry requirement; build
brand Andhra Pradesh as a benchmark for quality; streamlining the single
window clearances system; encouraging anchor industries in thrust sectors
to increase the ancillary base and comprehensive policy for revitalization
of MSME sector.
States like Tamil Nadu, Karnataka and Maharashtra have identified
industrially backward areas and provides differential rate of incentives
to these areas. In the New industrial policy, it is proposed to identify
backward revenue divisions for providing differential rate of incentives
to MSMEs to reduce regional imbalances. MSME Development Act 2006 of GoI
changed the nomenclature of Industry as entreprise; enterprises are
defined as Micro, Small, Medium as per the Investment in plant and
machinery of Equipment and as per the Act, any manufacturing, servicing
and business activities are called as Enterprises. It has been decided to
change the limits of various sections of industries. Micro Enterprise -
manufacturing up to Rs.25 lakhs; service up to Rs.10 lakhs; Small
Enterprises - manufacturing above Rs.25 lakhs up to Rs.5 crores, service
above Rs.10 lakhs up to Rs.2 crores; Medium Enterprise - manufacturing
above Rs.5 crores up to Rs.10 crores and service above Rs.2 crores up to
Rs.5 crores.
Under this act, any activity can be registered as Enterprise with
Industries Department. However, service enterprises related to industrial
activities are proposed to be made eligible for incentives Municipal
Corporations; the activities proposed to be covered include Material
Testing Centre, power laundries linked to the textiles industries, weigh
bridges, seed grading etc., and the complete list of such activities would
be worked out separately and eligible Service Enterprises related to
industry will be provided investment subsidy in urban/ municipal areas
linked to employment generation.
Andhra Pradesh provides the maximum power tariff incentives in the
country.
The Chief Minister further said that the new industrial policy aims to
strengthen and revitalise the District Industrial Centres (DICs) in tune
with the recommendations of Prime Ministers Task force Committee to ensure
that the DICs act as a genuine agency for providing support to MSMEs like
information on policies, programmes, project profiles, Facilitation Cell
for sick unit revival, Skill Development, Market support etc.
Infrastructure would be created taking the advantage of Prime Ministers
Task Force Committee recommendations. For easy flow of credit to MSMEs,
the policy proposes certain active measures to enhance the loan rendering
capacity of banks through various schemes and also by lowering the
interest rates on PLR. Initiatives have been proposed in the policy for
providing marketing assistances to brand building, quality certification
and creating platforms for domestic and global markets.
-June''
2010
