AP moots separate industrial estates for MSMEs

HYDERABAD, INDIA: In the backdrop of various issues faced by the MSME sector in Andhra Pradesh such as inadequate infrastructure, the state government has proposed to set up separate industrial estates for micro, small and medium enterprises (MSMEs).

The government has expressed hope that exclusive estates will help solve such problems to a large extent. “Availability of land is a major issue for the MSME units. So, we are planning to create a land bank or industrial estates, and develop infrastructure for the units,” said R Karikal Valavan, commissioner of industries.

He was addressing the gathering at a seminar on finance availability for MSMEs organised by the Confederation of Indian Industry (CII).

Valavan said that there are as many as 83 revenue zones in the state and they are proposing to develop one industrial estate for each division. Each estate will come up on at least 100 acre.

According to a census report, 10 per cent of the MSME units have closed down in recent years due to various problems. To overcome this, the state has taken up various initiatives and plans to set up industrial clinics in each industrial estate.

“Availability of timely and adequate finance (credit) is the key factor for growth, development and sustainability of the MSME units. Seeing the current credit crunch in the sector, the CII has proposed a separate credit rating system for the MSME units,” said Ramesh Datla, chairman, CII national MSME council.