The Andhra Pradesh government has clarified the rationale behind extending incentives to Heritage Foods under its Food Processing Policy 4.0, stating that the benefits are in line with standard industrial norms and not exclusive favors. The move comes amid political criticism and debate over the incentives granted to the company for expanding its operations in the state.
According to officials, Heritage Foods proposed a major expansion project in Kashipentla village of Chandragiri mandal in Tirupati district, with a total investment of ₹209.69 crore. As part of its proposal, the company highlighted its plans to generate employment for local youth and sought eligible incentives under the state’s food processing policy.
The State Investment Promotion Board reviewed the proposal in a meeting held last month and approved incentives worth ₹59.69 crore, strictly as per policy guidelines. These include a 25% subsidy on fixed capital investment amounting to ₹34.93 crore for technology upgradation, ₹17.80 crore as 100% SGST reimbursement, ₹0.98 crore towards power tariff reimbursement over five years, and ₹5 crore as interest subsidy. The state cabinet subsequently approved the proposal, and official orders were issued.
Government sources emphasized that these incentives are not unique to Heritage Foods and are available to any company investing in Andhra Pradesh under the Food Processing Policy 4.0. The objective, they said, is to attract investments, boost industrial growth, and create employment opportunities in the state.
With the expansion of the Heritage unit, significant job opportunities are expected for local youth, contributing to regional economic development. Officials reiterated that the policy is designed to encourage industries across sectors and that similar benefits have been extended to multiple companies in the past.
Despite this, opposition parties have raised questions, alleging favoritism. However, the government maintains that the incentives are transparent, policy-driven, and aimed at strengthening Andhra Pradesh’s industrial ecosystem.
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