On Thursday, Andhra Pradesh Chief Minister N Chandrababu Naidu has revealed his intention to bring in an Investment Protection Act in the state to protect the investors from any policy changes later in case of change of government.
In his speech at the two-day CII Partnership Summit here on Wednesday, Naidu stated that the proposed law would guard against political vendetta and regime changes concerning investments. He advised the central government to seriously look into creating a similar act on the national level.
Worrying about uncertainty surrounding changes of government and the overturning of government’s decisions by another government creates ‘skepticism’ among investors, Naidu said.
The draft legislation aims to prevent that incentives, land allotments and approvals granted by the state’s government can be granted at will to investors and easily withdrawn at any time within its service by future governments.
The chief minister said such a nationwide statute would prompt greater investment in India and bring in more foreign investors.
Naidu also spoke about his government’s initiatives to promote Andhra Pradesh as an investment hub. The state has accomplished 74% conversion rate of investment MOUs since June 2024, he added.
During this time span, the chief minister said that Andhra Pradesh has signed 714 MoUs with proposed investment of ₹22.6 lakh crore. Of these, 526 projects with an investment of ₹17.1 lakh crore had progressed towards implementation.
Naidu said that better investor protection and policy certainty would boost Andhra Pradesh’s business climate and ensure India’s progress towards becoming a leading investment destination in the world.