Andhra Pradesh plans an Investment Protection Act to safeguard investors from policy reversals after changes in government.
Naidu urged the Centre to consider a national law protecting incentives, land allotments and approvals granted to investors.
The state reported 74% conversion of 714 MoUs worth ₹22.6 lakh crore signed since June 2024.
Andhra Pradesh plans to draft a state law to protect investors from policy reversals after a change in government, Chief Minister N Chandrababu Naidu said on Thursday. He also asked the Centre to consider a similar national law at the two-day CII Partnership Summit in Visakhapatnam.
“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 said at the summit, addressing business leaders, diplomats and foreign investors.
Naidu linked the proposed law to investor worries over political change and reversals of earlier decisions. He also urged the central government to examine a similar measure for the whole country, saying stronger legal protection would support investment flows into India and attract global investors.
Investor Protection Push
Naidu set out the case plainly. He said investors had grown wary because changes in power and vindictive politics had created apprehension.
“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 also pressed the case for a national framework. “Such a measure would help make India an unstoppable investment destination,” he said. The chief minister, who returned to power in 2024, did not spell out the provisions of the proposed law or detail the experience that shaped the proposal.
Amaravati Backdrop
When Naidu lost power to the YSR Congress Party in 2019, then chief minister YS Jagan Mohan Reddy hit the brakes on the Amaravati capital city project. He also terminated several project contracts and power purchase agreements (PPAs) awarded by the previous TDP regime.
His argument is that future administrations should not be able to undo incentives, approvals and land allotments already granted by the state.
MoUs And Conversion
Naidu used fresh investment numbers to back his pitch. He said Andhra Pradesh had achieved a 74% conversion rate for investment Memorandums of Understanding signed since June 2024.
The state has signed 714 MoUs involving proposed investments of ₹22.6 lakh crore since June 2024, he said. Of these, 526 projects worth ₹17.1 lakh crore had moved towards implementation, taking the conversion rate to 74%.
Work is already under way on projects worth ₹7.3 lakh crore, Naidu said. He added that the government had fixed timelines for nearly 303 projects to keep them on track and push implementation.
Goyal’s Investor Pitch
Union Minister Piyush Goyal broadened the message. In his keynote address, he urged global investors to look at Andhra Pradesh and the rest of India for opportunities in manufacturing, tourism, green energy and advanced technologies.
Using the image of one lamp lighting another, Goyal said the summit could similarly spread trade and economic growth across the country. He also referred to the two cyclones that recently hit the Andhra Pradesh coast and caused considerable damage, saying Visakhapatnam had recovered quickly and readied itself to host an international investment summit.
Goyal highlighted the state government’s move to create an escrow account for industrial incentives, saying it would improve investor confidence by giving greater certainty on incentive delivery. Against a global backdrop of crises, challenges and sharp competition, he said India was emerging as a dependable destination for investors even in difficult times.
He also pointed to India’s workforce. Goyal said young Indian professionals were proving their capabilities across countries and that foreign capital and the talent of India’s youth were equally important to the country’s economic growth.
The minister also sought to reassure overseas investors on intellectual property. He said India fully respected intellectual property rights and was committed to facilitating cooperation, and added that the country neither demanded technology transfers nor engaged in theft of investors’ intellectual property.
“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.
Nara Lokesh closed with a broader ask. The Andhra Pradesh minister for education, IT and electronics urged industrialists not only to set up factories in the state but also to make Andhra Pradesh their corporate home.
