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Andhra to enact law to shield investors from regime change, says Chandrababu Naidu
Naidu said concerns over regime changes and vindictive politics that follows a regime change created apprehensions among investors.
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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.
“We are bringing in an Investment Protection Act at the state level to safeguard investors from regime changes and political vendetta. The Centre must support it,” Naidu told the gathering of business leaders, diplomats and foreign investors at two-day CII Partnership Summit being held in Vishakhapatnam.
In his presentation, the chief minister said concerns over regime changes and vindictive politics that follows a regime change created apprehensions among investors.
“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.
He expressed confidence that such a central act that offered protection to investors would encourage a stronger flow of investments into India and attract global investors. “Such a measure would help make India an unstoppable investment destination,” he said.
The chief minister, who returned to power in 2024, did not get into the specifics of the law, or his experience that led him to consider such a law.
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.
Delivering the keynote address, Union minister Piyush Goyal asked global investors to explore investment opportunities in Andhra Pradesh and across India, underlining the state’s growing potential in manufacturing, tourism, green energy and advanced technologies.
Drawing a parallel with the traditional practice of lighting one lamp with another, he said the investment summit would similarly help promote trade and economic growth across the country.
Referring to the two cyclones that recently hit the Andhra Pradesh coast and caused considerable damage, Goyal said Visakhapatnam quickly recovered from the setbacks and prepared itself to host an international investment summit.
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.
Observing that the global economic environment was marked by crises, challenges and intense competition, he said India was emerging as a dependable destination for investors even during difficult times.
Emphasising the contribution of foreign investments and India’s skilled workforce to economic growth, he said the country’s young professionals were showcasing their capabilities across different countries. Foreign capital and the talent of India’s youth were equally important contributors to the growth of the Indian economy, he added.
The Union minister assured international investors that India fully respected intellectual property rights and was committed to facilitating cooperation. He said the country neither demanded technology transfers nor engaged in the theft of intellectual property belonging to investors.
“The government is extending all necessary support to industries to enable them to manufacture high-quality products at competitive costs and within shorter production cycles,” he said.
Andhra Pradesh minister for education, IT and electronics Nara Lokesh called upon industrialists not just to build their factories in the state, but to make Andhra Pradesh their corporate home.
