AP Cabinet decides to encourage backward communities in industrial sector

VIJAYAWADA:  The Cabinet meeting chaired by Chief Minister N. Chandrababu Naidu took several key decisions including encouragement to BC, SC, ST and Minorities in the industrial sector.

The Cabinet, which met at the secretariat on Thursday, also approved the state investment promotion board proposals.

Briefing the media, information minister Kolusu Parthasarathy said incentives will be provided to Coromandel International Ltd as per a request from the company.

Claiming that investments “are pouring into the state” after the Telugu Desam-led government came to power last year, Parthasarathy said corporate tycoons were expressing their readiness to enter into agreements with the state. MoUs have been signed for 34 projects with investments of Rs 6,78,345 crore, the minister said, adding that 4,28,705 jobs will be created.

The Cabinet decided to encourage BC, SC, ST and Minorities in the industrial sector along with other “intellectuals”, besides women entrepreneurs. Also, the amount of subsidies will be increased for all of them.

The Cabinet approved the proposal for amendments to various policies framed for the five-year period 2024-29, namely the AP MSME & Entrepreneurship Development Policy (MEDP), the AP Food Processing Policy (FPP), the Andhra Pradesh Sustainable Electric Mobility Policy & the AP Textile, Apparel & Garments (TAG) Policy.

Parthasarathy said several decisions have been taken with the aim of promoting BC, SC, ST, Minority, differently-abled and women entrepreneurs. Several incentives have been increased with the aim of promoting BC, SC, ST, Minority, differently-abled and women entrepreneurs. The 35 per cent investment subsidy has been increased to 45 per cent.

While this investment subsidy was being provided to manufacturing activities till now, the present decision is to provide 45 per cent subsidy up to a maximum of Rs 75 lakh to transportation and logistics activities as well.

Earlier, a 50 per cent subsidy on land value was being provided to SC and ST industrialists up to a maximum of Rs 2 lakh. But as per the decision taken today, a 75per cent subsidy will be provided to them, up to a maximum of Rs 25 lakh.

Similarly, in the previous MSMEDP-4.0 policy, women, BC and differently-abled people were given Rs 1 per unit as electricity subsidy for six years. SCs and STs were given Rs 1.50 per unit as electricity subsidy for five years. Now, all categories -- women, SC, ST, BC, minority and differently-abled people -- will be given Rs 1.50 per unit as electricity subsidy for five years.

State GST reimbursement incentives will be given to all categories for five years.

The Cabinet approved a proposal for amendments to AP Land Rights and Pattadar Passbooks Act-1971. Also, a decision was to withdraw disciplinary action against 386 engineers who have implemented the Neeru-Chettu programme from 2014 to 2019 during the earlier Telugu Desam government.

Bills worth Rs 50.56 crore in pending payment will be cleared, Parthasarathy said.

Another decision is that fresh tenders will be invited for the remaining works in the relief and rehabilitation housing colonies under the Polavaram project. Besides building fresh houses, all the necessary basic amenities will be created in these colonies.

To reduce the rush in land registration offices, the Cabinet decided to introduce the dynamic queue management system.

The Cabinet approved the draft of the Andhra Pradesh Knowledge Capacity Building Policy-2025. The proposals made by the Energy Department on green energy have also been approved.

The council of ministers approves the recommendations of the AP State Investment Promotion Board (SIPB) meeting held on January 30, 2025

The cabinet approves the proposals made for enhancing the bid capacity for all works of APCRDA / ADCL (EAP- externally aided projects- excluding support works)

Instead of creating new posts in TTD, the existing 15 Potu workers (senior) posts will be upgraded

Decision to develop a Knowledge HRD centre in Amaravati, on the lines of the Marri Chenna Reddy HRD Centre in the united AP, in line with the policies of the central government.

So far, agreements have been signed for the establishment of 34 projects worth Rs 6,78,345 crore. This will create jobs and employment opportunities for 4,28,705 people.