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Rationalisation of building permission charges for food processing units hailed

The rationalisation of building permission charges for food processing units has been widely praised, as it will lower setup costs, encourage investment in the sector, and boost agri-value chain growth across the country.

Rationalisation of building permission charges for food processing units hailed

Rationalisation of building permission charges for food processing units hailed
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17 Jun 2025 6:42 PM IST

Andhra Pradesh Chambers of Commerce & Industry Federation has thanked Chief Minister N. Chandrababu Naidu and the Department of Food Processing for their proactive decision to rationalise the building permit charges for food processing units. AP Chambers had earlier represented to the Department of Industry to reduce the building permit fee and other charges to encourage and promote the industry in the State.

Responding to the concerns raised by industry stakeholders regarding the high municipality/UDA charges like building permit fee, development charges, betterment charges, site approval and green fee, the government has taken a decision to rationalise the fees so as to encourage the potential entrepreneurs and to attract fresh investments into the sector.

The chambers said the decision is aimed at fostering industrial growth and rural development. It was realised by the Industry Department that the extension of Urban Development Authority (UDA) limits to rural areas had inadvertently escalated costs for setting up food processing industries, which predominantly operate in rural and peri-urban locations. Acknowledging this challenge, the Chief Minister has graciously considered the requests of AP Chambers for approving the food processing industries located in Gram Panchayat areas under UDA jurisdiction, the building permit and associated charges will now be as per G.O.Ms.No.12 of PR&RD(PTS-III) Dept., dated 08.02.2016 ensuring significantly lower and more reasonable rates, Chambers president Potluri Bhaskara Rao said on Tuesday.

The food processing policy unveiled by the State for 2024-29 is one of the best policies in the country. The relief announced through G.O.MS.NO.102 dt 17/6/25 is in addition to the fiscal benefits announced in the food processing policy, the government has become the first to introduce such facilities, Rao said. The measure, aimed at supporting the MSME sector and promoting equitable industrial growth, is expected to catalyze more investments in the food processing sector, generate employment, and facilitate decongestion of urban areas by promoting development in rural and peri-urban zones, he said.

building permission charges rationalisation food processing units setup cost reduction investment boost food sector agri-value chain growth industry-friendly policy processing unit permits government incentives food processing infrastructure cost reform sectoral regulatory easing 
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