Andhra Woos Mega Projects With Special Packages

In a major bid to attract increased investment in the state, the Andhra Pradesh government has decided to approve project-specific incentive packages for mega projects in consultation with prospective investors.

This was announced here yesterday by state governor Krishan Kant while addressing the state assembly to mark the commencement of the budget session.

The governor said that the new measures had become necessary because the recently announced new industrial policy Target 2000 which gave significant fiscal incentives to entrepreneurs to invest in the state had failed to fully meet the requirements of the mega industrial projects. He also announced the governments decision to strengthen infrastructure by setting up industrial parks for mega units at Wadapalli, Krishnapatnam, Visakhapatnam, Tirupathi and Kakinada.

 

The governor promised an early decision on restructuring and phasing out of poorly performing public sector enterprises. A Cabinet sub-committee was studying the matter, he said, adding that the interests of the workers employed in these enterprises would be protected.

The governor also announced the state governments decision to hand over the management of eight viable cooperative sugar factories to the farmer-members and register them under the Mutually Aided Cooperative Sugar Factories Act.

Krishan Kant said that the state governments offer to the private sector to develop ports had received very good response, but the privatisation of highways had not fared well. He blamed this failure on the lack of a clear policy at the Centre which induced doubts about the probable returns and inhibited participation by multinational corporations. However, the state was working out incentive packages to attract private investment in high-density corridors, he said.

The governor also referred to the different welfare measures initiated by the government.