Andhra Pradesh plans to formulate a state-level investment protection law to insulate investors from changes after change in the state’s ruling party, chief minister N Chandrababu Naidu said on Thursday, and urged the central government to consider a similar law at a national level.
In his presentation, the chief minister said concerns over regime changes and vindictive politics that follows a regime change created apprehensions among investors.
Goyal particularly highlighted the state government’s initiative to establish an escrow account for providing industrial incentives, stating that the measure would enhance investor confidence by ensuring greater certainty in the delivery of incentives. When he lost the state to the YSR Congress Party in 2019, then chief minister YS Jagan Mohan Reddy hit the brakes on the Amaravati capital city project and terminated a bunch of contracts for projects as well as the power purchase agreements (PPAs) awarded by the previous TDP regime. Highlighting the steps taken by his government to convert Andhra Pradesh into a potential investment destination, Naidu said the state had achieved a 74% conversion rate of investment Memorandums of Understanding (MoUs) signed since June 2024. The chief minister said the state had signed 714 MoUs involving proposed investments of ₹ 22.6 lakh crore since June 2024. Of these, 526 projects, representing investments of ₹ 17.1 lakh crore, had moved towards implementation, taking the conversion rate to 74%. He said projects worth ₹ 7.3 lakh crore, with work currently underway. He added that the government had fixed timelines for nearly 303 projects to ensure their progress and implementation.
“The proposed legislation would protect investments from regime changes and ensure that incentives, land allotments and approvals granted to investors by the state government cannot be reversed by future administrations,” Naidu said.
