IT, electronics, food processing industry go ga-ga over release of pending incentives in AP

IT, electronics and food processing industry entrepreneurs are in a jubilant mood with the Andhra Pradesh Government deciding to release pending incentives, conceding their request to fund them as a morale booster.

The IT and electronics sector will be given a pending incentve of ₹ 125 crore-almost half of the pending arrears. Approximately ₹60 crore is dedicated to IT companies alone. This clearance covers 50% of the pending incentives (different sets) that were previously loaded in the CFMS system. The remaining amount is expected to be cleared in the next tranche.

"The clearance of long-pending incentves, combined with the recent wave of big ticket projects like Google AI Data Hub, development centres of TCS and Cognizant, provides a massive confidence boost to the IT industry in Andhra Pradesh. This decisive action perfectly sets the stage to establish Visakhapatnam as the Silicon Valley of India,: Sreedhar Kosaraju, Chairman, APDTI (Digital Technology Industries) Network, told Bizz Buzz here on Monday.

He said "a big thanks to Minister for IT, Nara Lokesh, for understanding our concerns and supporting the industry. Special thanks to Principal Secretary, IT Bhaskar Katamneni for his persistent efforts in getting this cleared. We also appreciate the hard work of the entire ITE&C Department and Andhra Pradesh Economic Development Board teams."

In another development, the Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) warmly welcomed and thanked Chief Minister N. Chandrababu Naidu for releasing the long-pending food processing sector incentives benefiting 222 industrial units across the State.

The food processing sector is one of the top potential growth areas in Andhra Pradesh, offering vast opportunities for value addition, exports, and large-scale employment generation. AP Chambers has been promoting the sector aggressively for the past 10 years. The release of the incentives will boost investor confidence, expedite new project execution, and strengthen the entire food value chain from farm to market.

AP Chambers estimates that this sector has the potential to attract investments worth ₹40,000 to ₹50,000 crore over the next three to four years, generating significant employment and ensuring balanced, regionally distributed development across the State.

Chambers president Potluri Bhaskara Rao extended their heartfelt appreciation to Minister for Industries and Commerce T. G. Bharath as well as Principal Secretary Chiranjivi Chowdary and Dr. Sekhar Babu, CEO, Andhra Pradesh Food Processing Society, for

their proactive leadership, facilitation, and continuous support to the industry.

The State Government’s recently unveiled Food Processing Policy 2024–29, which is being termed as a forward-looking and investor-friendly framework that will greatly enhance Andhra Pradesh’s competitiveness and strengthen its position as a national hub for agro and

food-based industries. Rao said AP Chambers remains committed to collaborating with the Government of Andhra Pradesh to further accelerate growth in this high-potential sector and to make the State a leader in sustainable industrial and agro-economic development.