Andhra Pradesh Government Plans Major Policy Overhaul to Attract Investment and Boost Industrial Growth

The Telugu Desam-led NDA government in Andhra Pradesh is set to introduce new policies for five key sectors: Industries, MSME, Food Processing, Electronics, IT & Cloud, and Textiles. The government plans to develop industrial corridors in four regions and offer attractive incentives to encourage investment in the state.

During a review meeting with officials on the status of industries in the state held on Wednesday, July 31, at the state secretariat in Velagapudi near Vijayawada, Chief Minister N. Chandrababu Naidu emphasized the importance of re-engaging investors who had withdrawn during the YSRCP regime after signing MoUs. He stressed the need to expedite projects currently in various stages of implementation, aiming to secure ₹1 lakh crore in investments within the next year and create approximately 1,36,260 jobs.

Naidu also discussed reducing land prices in the Mallapalli Industrial Park in the former Krishna district to attract more investors. He expressed concern that during the TDP's previous tenure (2014-19), investors had committed to invest up to ₹16 lakh crore, but many withdrew due to the unfavorable policies of the previous YSRCP government.

The chief minister highlighted the necessity of restoring investor confidence, noting that no new companies had invested in the state during the last five years due to political harassment by the previous government. He criticized the prior administration for repurposing lands acquired for industrial use for distribution to the landless poor.

Naidu recalled that he had previously offered a package of 66 incentives to the industrial sector, which had since been reduced by 34% under the YSRCP government. He indicated a willingness to offer additional incentives to attract investments.

Regarding land allotment for industries, Naidu noted that 14,125 acres had been allocated for industries in 64 industrial parks during the TDP's previous term. However, only 31 parks were created between 2019 and 2024, which discouraged investors. He directed officials to reopen dialogue with previous investors and invite them back to the state, offering his personal involvement if necessary.

The chief minister urged officials to develop policies for MSME, Food Processing, Electronics, IT & Cloud, and Textiles within the next 100 days to stimulate industrial growth. He also called for proposals to create four industrial clusters in Kuppam, Mulapet, Chilamattur, Donakonda, or Pamuru and to secure central approvals for these projects.

Naidu reviewed the progress of the ₹11,542 crore bulk drugs park and NTPC’s ₹60,000 crore Green Hydrogen Hub, instructing officials to engage with BPCL on their proposed projects in the state.