Escrow Account for Industrial Incentives: CM
Visakhapatnam: Chief Minister N. Chandrababu Naidu has reaffirmed that the state’s industrial policy will remain investor-friendly and announced the creation of an escrow account for industrial incentives and the introduction of a sovereign guarantee mechanism to boost investor confidence.
“Reforms are essential for both development and welfare and the past reform-oriented decisions have directly benefited poor and middle-class families,” Naidu said here on Friday.
He was addressing the AP Reimagining Public Finance Summit, organised by the state finance department as part of the 30th CII Partnership Summit.
The two-day conference focused on reform-driven fiscal planning and strategies to strengthen the state’s economy. In his speech, Naidu said Andhra Pradesh’s economy had faced setbacks in the past five years, impacting its global image.
He highlighted the post-bifurcation division of sectors, agriculture and allied industries assigned to AP and services assigned to Telangana, as a factor that reduced revenue generation. “However, the government is working to address this imbalance.”
Naidu recalled how Hyderabad’s growth demonstrated the transformative power of reforms and said the landmark power sector reforms introduced in 1999, which continue to benefit both AP and Telangana.
“Despite facing financial strain, the government has fulfilled most of its welfare commitments,” he said and acknowledged the challenges faced by the finance department. However, he noted, the administration remained dedicated to honouring promises the alliance parties made during the 2024 elections.
