Chief Minister N. Chandrababu Naidu on Saturday asked central government to enact an Investors’ Protection Act at the national level to safeguard investments from political instability, changes in government, and vindictive politics.
“This would help strengthen investor confidence,” he observed.
The CM disclosed that his government could introduce the legislation in the Andhra Pradesh Assembly and forward the bill to the union government. He wanted Union commerce and industry minister Piyush Goyal to support the initiative and facilitate a Central Investment Protection Act to ensure continuity of investment policies across the country.
Naidu said the proposed legislation aims to prevent successive governments from arbitrarily cancelling approvals, incentives, and agreements extended to investors by previous administrations.
He pointed out that a change in government creates uncertainty among investors who feel the new administration could reconsider policy commitments and agreements made by their predecessor.
The proposed law is intended to provide legal assurance that investments, memoranda of understanding (MoUs), manufacturing projects and promised incentives will not be disrupted by changes in government or due to political considerations.
Education minister N. Lokesh said the state government is working on the Investors’ Protection Act to safeguard investments and provide greater confidence to industrialists.
He underlined that after pioneering implementation of escrow accounts, the state government is poised to become the first state in the country to bring in the Investors’ Protection Act. The legislation would provide greater confidence to industrialists and encourage them to invest in Andhra Pradesh, he maintained.
AP Chambers president Potluri Bhaskara Rao welcomed Naidu’s announcement on enacting the Investors Protection Act. He said the initiative would ensure timely disbursement of industrial incentives and strengthen Andhra Pradesh’s position as an investment destination.
Growing industrial investments would also create opportunities for micro, small, and medium enterprises (MSMEs) through ancillary industries, vendor development and supply chain integration, besides generating employment, Bhaskara Rao pointed out.
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