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 about 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 a good opportunity for SMEs which are finding it difficult to buy land around Vijayawada and Guntur due 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.
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The Industries Department is receiving a sizable number of queries from SMEs but no large industry is coming forward to this region due 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 due to their logistical advantage which is 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 tangible shape, large industries will not come to the Capital region.
Food processing is the only sector which can be promoted straightaway.
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Mr. Prasad said power-intensive industries like casting units are showing interest in Vijayawada due to the comfortable electricity supply position. The automobile sector is also poised for impressive growth.
Meanwhile, industrialists are eagerly waiting for announcement of the New Industrial Policy which will be replacing the one that is expiring on March 31, 2015. They are watching out for the slew of incentives that the government has promised with much hype. A lot depends on the ‘single desk’ clearances expected to be given in 21 days.