2 lakh new MSMEs registered since 2019, Andhra Pradesh government aiming at 12 lakh by 2027: APIIC MD Pravin Kumar

According to Kumar, 28 industrial parks have been developed on 1,568 acres to encourage MSMEs. These parks have 5,505 plots, of which 54 per cent have been allotted to MSMEs, he said, adding that 19 parks are located in the 10 districts of Rayalaseema.

“More MSME parks will be promoted where there is a presence of sector-specific clusters. Efforts are on to increase the occupancy in the parks by bringing in…private partners,” Kumar said.

The Andhra Pradesh government has also been at the forefront of enabling technology transfer to MSMEs promoted through Common Facility Centres (CFCs). The state has got approval for six CFCs, of which 1 CFC costing Rs 15 crore was inaugurated recently. It will create employment for 6,000 people by providing printing services to clusters in Kakinada district, Kumar added.

The five other CFCs are planned in Konaseema, Nellore (2 units), NTR and East Godavari. Set for completion by January 2024, they will cater to the requirements of clusters in furniture, hosiery and readymade garments, gold ornaments, and pulses sectors.

Kumar said that four more CFCs are awaiting the Centre’s approval and will come up in Tirupati, Kakinada and Srikakulam districts. The Andhra Pradesh government will invest Rs 27 crore towards the development of 10 CFCs across seven districts.

“The state has created ‘plug and play infrastructure’ to reduce the capital expenditure burden on MSMEs and also received sanction for the development of eight flatted factory complexes (FFCs) from the Centre. The state will be contributing Rs 32 crore for the development of all eight FFCs across seven districts. Work has commenced for four FFCs in Srikakulam, Visakhapatnam, Anakapalli and Kakinada. Four more projects are expected to receive approval from the Centre in January 2024 which would be established in Kurnool, Chittoor and Tirupati,” he added.

What lies ahead

The other key interventions planned for MSME growth by the Andhra Pradesh government include the formalisation of MSMEs, MSE facilitation councils, technology centres and an MSME One Portal.

The formalisation of MSMEs will include a survey to identify the MSME requirements and to bring the unregistered MSMEs into the organised network. The state will assist MSMEs to get Udyam registration ID and a database will be created to monitor the health of MSME units.

The MSE facilitation councils will help clear pending payment issues through arbitration or conciliation, and so far, Rs 99 crore of Rs 656 crore worth of delayed payments have been cleared to MSEs by the state.

Technology centres will address the skill gap issues and the government has allotted 200 acres of land in Kopparthy for the development of such a centre. “It will train students, from school dropouts to B-tech level graduates, on various cutting-edge industrial tools. Through partnerships with local industries, technology centres will supply an industry-ready workforce to partner organisations,” Kumar said.

The MSME One Portal will be a one-stop integrated portal for MSMEs to raise and track applications, receive notifications on local events and fairs from regional industry network groups, register on e-commerce platforms to find customers for their products and raise grievances and seek resolutions.