Andhra Pradesh

MSME Parks: govt. striving to attract anchor investors

Aim is to create 200 parks by 2023 with around 30,000 units and employing three lakh people

As part of its focus on promotion of Micro, Small and Medium Enterprises (MSME), the State government is striving to attract large enterprises, whose investment in plant and machinery is higher than ₹50 crore, as anchor investors in the MSME Parks (M-Parks) being developed in all the Assembly constituencies as per the M-Parks (MSME Parks) Policy-2018-23.

Besides, the government has operationalised the MSME Development Corporation (M-Corp), which has been designated as the nodal agency, and tasked the A.P. Industrial Infrastructure Corporation (APIIC) with the execution part.

The objective of the policy is to set up M-Parks in all the Assembly constituencies spanning 25 to 100 acres to realise their potential.

The government has planned to allocate a maximum of 10% of the area in each park to large enterprises, and they can enter into business relationships with the MSMEs in the parks.

Incentives

The M-Corp has been mandated to tie-up funds for administering the M-Parks scheme and provide investment-based incentives to the executing agencies.

Besides, a State-level project steering committee has been constituted to approve the M-Park development and withdrawal proposals, fix applicable infrastructure development cost and subsidies under the policy, sanction all subsidies and incentives, approve permitted changes in compliance procedures and levy penalties either for project delays or withdrawal of executing agencies or misrepresentation of information or other reasons.

Land allotment

To ensure that the allotment of lands by the APIIC does not become an impediment, the government has made it online and stipulated that the applications are processed within 21 days to make doing business easy.

Director of Industries J.V.N. Subramanyam, who is also the CEO of A.P. Economic Development Board, told The Hindu that 31 MSME parks were being built by the APIIC and clusters were under progress. Eight common facility projects have also been approved.

The M-Parks Policy targeted creation of 200 parks by 2023 with around 30,000 MSMEs employing 3,00,000 people and a total investment of ₹45,000 crore.

Steps are being taken for acquiring private land wherever suitable government land is not available for setting up the parks.

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Printable version | Feb 21, 2020 4:25:42 PM | https://www.thehindu.com/news/national/andhra-pradesh/msme-parks-govt-striving-to-attract-anchor-investors/article30596301.ece

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