The Andhra Pradesh government today unveiled its new industrial policy, offering a slew of incentives to industries, particularly the micro, small and medium enterprises (MSMEs), and aiming at a growth rate of 12 to 17 per cent in the manufacturing sector.

Thrust of the 2010-15 policy, cleared by the cabinet here, will be on building the 'Brand Andhra Pradesh' and correcting the "regional and sectoral imbalances" in industrial growth.

Chief minister K Rosaiah chaired the cabinet meeting.

Briefing newspersons about the cabinet decisions, information and tourism minister J Geeta Reddy said Rs 100 crore would be earmarked in the state budget every year for developing industrial infrastructure and external infrastructure in Special Economic Zones (SEZs).

The policy provides for 100 per cent reimbursement of Value-Added Tax/Central Sales Tax for five years for micro enterprises and 50 per cent for small enterprises.

Under the previous policy, the reimbursement limit was only 25 per cent. Similarly, investment subsidy for micro and small enterprises has been raised to Rs 20 lakh with an additional Rs 5 lakh subsidy for women entrepreneurs.

In another major initiative, the new scheme provides for reservation of 30-40 per cent land in upcoming industrial estates for MSMEs. Land conversion charges have also been limited to Rs 10 lakh.

The government also announced a fixed power cost reimbursement at the rate of 75 paise per unit for five years and Re 1 per unit for SC/ST entrepreneurs, who will also get other incentives for setting up industrial units.

Following the Tamil Nadu, Maharashtra, Gujarat and Karnataka model, the AP Government, too, enhanced the investment limit to Rs 250 crore for classifying a venture as a "Mega Project".

Any project creating employment for more than 2,000 persons would also be considered for a special package of incentives under the Mega Project. This is a new initiative announced in the industrial policy.

Food processing will be declared as a seasonal industry under the policy, which will make it eligible for availing of relief from payment of minimum electricity charges during closure period.

The Food Parks, sanctioned under the Mega Food Park scheme of Government of India, would be considered for tailor- made benefits on case-to-case basis under the new scheme.