Andhra Pradesh industrial policy to go radical green

Deccan Chronicle.  | N VAMSI SRINIVAS

Business, Economy

Chief minister Jagan Mohan Reddy is talking about a clearance system that begins with environmental impact

Andhra Pradesh's industrial policy to be more environment oriented.

Vijayawada: If chief minister Andhra Pradesh chief minister Y S Jagan Mohan Reddy has his way, the state's industrial policy will be turned on its head. To promoters, this will mean that the long process of setting up a facility in Andhra Pradesh will begin, not end, with an environmental impact assessment. And the final nod will depend on the promoters’ commitment to a clean and safe environment.

Chairing the first State Investment Promotion Board (SIPB) meeting here on Friday, Jagan Mohan Reddy said while 'green projects' will get automatic clearances, those falling in the red and orange categories will be processed in a new format. The new policy will focus on achieving twin objectives: timely completion and safe environment.

Asking his staff to create buffer zones around new industrial projects, the chief minister said no residential development should be allowed there at any cost. While industries are located in far-off places, allowing residential colonies around them is resulting in a perennial threat to the environment, he said.

The chief minister said de-risking the capital investment made by an industry by ensuring hassle-free and timely completion of the project is the biggest incentive for entrepreneurs. “He (the CM) is of the view that we should not wash off our hands after giving clearances or agreeing to give incentives. We should handhold them till they commence production and thereafter too if need be,” said Mekapati Goutham Reddy, minister for industries, IT and infrastructure.

The chief minister, himself an entrepreneur before taking a plunge into politics, explained to officials how IRR calculations would go haywire if the commencement of production is delayed by even a month. "The biggest incentive could be if we can ensure the project is completed a month or two in advance," he said.

Jagan Mohan Reddy insisted that the government should only promise those incentives that it can fulfill. The policy should be honest and transparent, he said and alluded to the Telugu Desam Party regime failing to pay incentives of Rs 4000 crore to industrialists. We have cleared around Rs 450 crore to MSMEs and will gradually clear all dues. The government will provide land, water and power besides well-trained local skilled and semi-skilled workforce and will always be proactive to resolve their problems, if any, he added.

Ministers Goutham Reddy, K Kanna Babu, P Subash Chandra Bose, P Ramachandra Reddy, B Satyanarayana, G Jayaram, Chief Secretary Nilam Sawhney and Industries Special CS Karikal Valevan were present at the meeting.