₹200-crore cluster development programme aims to boost MSMEs in Andhra Pradesh

The Andhra Pradesh Cabinet on Thursday approved the ₹200-crore A.P. Cluster Development Programme (AP-CDP) aimed at strengthening micro, small and medium enterprises (MSMEs) across the State, MSME Minister Kondapalli Srinivas said on Friday.

Addressing the media at the Secretariat, Mr. Srinivas said the five-year programme would establish 45 Common Facility Centres (CFCs) across Andhra Pradesh. These centres would provide shared infrastructure such as modern machinery, technology support, packaging units and job-work facilities for sectors, including printing, agri-based industries, gold, and food processing.

The initiative was expected to directly benefit around 1,840 MSME units and generate over 7,500 direct employment opportunities.

Mr. Srinivas said the programme was conceptualised under the guidance of Chief Minister N. Chandrababu Naidu, with focus on developing sector-based clusters and “sectoral parks” to enhance competitiveness. By sharing infrastructure and technology through CFCs, small industries would be better equipped to compete with larger enterprises, he added.

Financial assistance

The State government would provide financial assistance of ₹5 crore to ₹10 crore per project, with 100% subsidy on machinery. Buildings would be constructed by Special Purpose Vehicles, while land would be provided in APIIC parks. He noted that while 40 cluster projects were already underway with Central support, the AP-CDP marks the State’s own dedicated cluster scheme.

The Minister said the Cabinet also approved the CM Employment Generation Programme on the lines of PMEGP to promote entrepreneurship, calling these initiatives a milestone in Andhra Pradesh’s economic development.