AP Sets Up MSME Parks In 138 Constituencies, But Only 29 Units Begin Production

Amaravati, Sept 9 (KNN) Andhra Pradesh has laid the foundation or inaugurated MSME parks in 138 of its 175 assembly constituencies, but industrial activity remains limited.

Only 29 units commenced commercial production so far, highlighting challenges in translating infrastructure creation and plot allotments into operational businesses.

According to an Andhra Pradesh Industrial Infrastructure Corporation (APIIC) note, the 138 parks cover nearly 79 per cent of the state. Land identification and acquisition are underway in the remaining 37 constituencies, where foundation stones are scheduled to be laid later this month.

1,008 Plots Allotted Across 28 Parks

Across 28 MSME parks, 1,008 plots covering 309 acres have been allotted, with proposed investments of Rs 2,036 crore and potential employment generation of 31,163 people, reported Times Of India.

However, only 29 units have entered commercial production. Construction is underway in another 45 units, while approvals are pending for 485 units. Land has been allotted to a further 449 units.

The rollout has also faced land acquisition, legal and regulatory hurdles. In Phase III, covering 38 constituencies, a court case has stalled progress in Vijayawada East, while compensation issues remain unresolved in Kavali. 

In Rajam, land possession is yet to be handed over, while some other projects are awaiting forest clearances or facing local implementation challenges.

Phase-Wise Progress Uneven

Infrastructure development has progressed unevenly across phases. The first phase, covering 55 constituencies, has recorded average infrastructure progress of 68 per cent, while the second phase covering 45 constituencies has achieved 26 per cent progress.

The state government plans to extend the MSME park network to all 175 constituencies, with the remaining 37 parks forming the next phase of the rollout.

The low conversion of allotted plots into operational units indicates that land and industrial infrastructure alone may not be sufficient to accelerate MSME activity, with approvals, construction, clearances and other implementation bottlenecks continuing to affect the pace of industrialisation.

(KNN Bureau)