Industry welcomes 56 per cent more grants in Andhra Pradesh Budget

VIJAYAWADA: Though allocations to the industry and infrastructure department stood at just Rs 3,673.34 crore in the 2021-2022 state budget, it was 56 per cent more than Rs 2,356.81 crore earmarked last fiscal.Sources in the department observed that the enhancement is the beginning of the government giving more focus to industrialisation for development, and large-scale generation of employment opportunities.

In 2020-21, despite the Covid-19 pandemic AP saw sustained interest from both global and domestic investors, which turned into inflow of investments worth Rs 6,234.64 crore and job creation for 39,578 people. In addition, 117 large companies showed interest in establishing their units in the state. These companies are expected to invest Rs 31,668 crore and create employment opportunities for 67,716 people.

The government is developing a Mega Industrial Hub at Kopparthy, Kadapa district in 3,155 acres and anticipates an investment of Rs 25,000 crore. Apart from working vigorously to develop various nodes in the three industrial corridors - VCIC, CBIC and HBIC, the government is also developing three greenfield airports. The one at Orvakal has already commenced operations. Land acquisition for the other two at Bhogapuram and Dagadarthi is expected to be completed in 2021-22.

Further, the government has announced ‘concept cities’ to bring a strategic and tactical focus to economic and regional development efforts. Stating that the emphasis on the concept cities will attract more investment, CII AP chairman D Tirupathi Raju said the scheme is a unique and inclusive model of economic development led by the private sector and facilitated by the government.

Federation of Andhra Pradesh Chambers of Commerce and Industry president CV Atchyut Rao felt the increase in allocations will improve the infrastructural facilities, and help in industrial development and furthering innovation.

Observing that Rs 1,000 crore earmarked to be spent towards incentives to industries will give relief particularly to MSMEs, he appealed to the government to consider forming a time-frame for disbursal of sanctioned incentives to the industries.