Sri City in Chittoor district is one of the happening places in AP with majority of investments driving there. Behind the success of Sri City, there are several contributing factors and the vision of the government. The state is given grant of 50% project cost to build mega food parks, limited to Rs 50 cr; grant of 50% of cost to build integrated food parks, up to Rs 20 Crore.
The integrated food parks will get VAT/CST/GST reimbursement for two years, up to Rs 2 Crore. The government is also offering Power subsidy of Rs 1.50 per unit for food processing units in the first five years of commercial production. The state is also providing Capital Subsidy for project cost to industries coming there.
The state government gets loans for these projects from NABARD and even offers interest subsidy up to 7% per annum on term loan for fixed capital investments, for a period of 5 years. Besides these factors, proximity to ports such as Krishnapatnam inside the state and to those outside of it such as Ennore and Chennai in Tamil Nadu and access to Chennai and Tirupati airports, as well as National Highway-5 and the railway network, makes it the best choice for investors.