Small and Medium Enterprises (SMEs), which cannot shell out huge sums for acquiring land, may get a reprieve, with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) requesting the government to declassify nearly 2,500 acres of forest land in Agiripalli and Mylavaram mandals of Krishna district for developing industrial estates.
Establishing their units in these upland areas will substantially bring down the capital cost for SMEs, which cannot afford to spend huge sums on land. It is also a good opportunity for SMEs, which are finding it difficult to purchase land around Vijayawada and Guntur owing to exorbitant prices. If the APIIC’s request is accepted, SMEs can set up units at relatively less costs in those locations.
According to official sources, a good number of industries, particularly SMEs, are keen on foraying into the capital region but are discouraged by the high land costs. They are hence looking at uplands where land is available in their reach.
The Industries Department is receiving a sizeable number of queries from SMEs, but very few major industries are coming forward to the region, thanks to the steep rise in land prices and poor infrastructure that have stifled industrial growth in these coastal districts.
Speaking to The Hindu , Joint Director of Industries G. Rajendra Prasad said: “Visakhapatnam and Krishnapatnam are favoured by mega industries owing to their logistical advantages like superior road and port connectivity. The industrial blueprint in Krishna and its neighbouring districts is heavily dependent on the long-pending Machilipatnam port. Unless it starts taking a tangible shape, large industries will not come to the capital region.”
Food processing is the only sector, which can be promoted straightaway. Mr. Prasad said power-intensive industries like casting units are showing interest in Vijayawada owing to the comfortable electricity supply position. The automobile sector is also poised for impressive growth.
Meanwhile, industrialists are eagerly awaiting the announcement of the New Industrial Policy, which will replace the one that expires on March 31, 2015. They are watching out for a slew of incentives that the government has promised.
A lot depends on the ‘single desk’ clearances expected to be given in 21 days.
2,500 acres in Agiripalli and Mylavaram mandals proposed for the purpose