MSME clusters planned to boost industry in Nellore

Having got ourselves abreast of the industrial scenario in the Nellore district in the earlier write-up in the Part-I of the industrial profile in these columns, let us now look at the plans and progresses.

The government of Andhra Pradesh has taken a policy decision to extend infrastructural support to the MSMEs in the State by developing MSME clusters/parks in all 175 Assembly constituencies. As part of the programme, three parks are coming up at Dagadarthi in Kavali, Bodduvaripalem in Kovur, and at Amancharla in Nellore Rural mandal in around 150 acres.

APIIC has developed 11 Industrial Parks in the district in around 3,000 acres. Around 3,500 acres of land is still available with the APIIC for future development. Readymade garments cluster, gold smith cluster, and wood processing clusters among others that the State government is keen on developing.

New industries are coming up as part of Chennai Bangalore Industrial corridor and Visakhapatnam Chennai Industrial corridors.

However, MSMEs are facing severe problems with the policies and predicament of the government in the sector. Let's understand what ails the industry in the district. The major problem is with the land allocation. Now, the land is being allocated to the entrepreneurs on a lease basis and hence they are not getting loans from the banks. Whereas earlier, the APIIC has been allotting lands on a sale basis.

Land cost includes basic infrastructure such as land, water, and power. Now the majority of industrial parks have only land without other facilities. Either the entrepreneurs have to arrange for these basic amenities on their own by shedding lots of money or have to wait patiently till the Government develops them. The industrialists are not so hopeful of the latter option.

The cost of land being allocated by the APIIC is higher when compared to the private landowners.

There has been a concession of up to 50 pc for entrepreneurs belonging to SC/ST/BC/women categories and now only women are getting the benefit. District level offices are waiting for directions from the Government.

Majority of lands being allocated by the APIIC has been encroached by the local population.

Even though entrepreneurs are getting lands they are failing to evict the encroachers, which is the primary reason for falling interest in setting up of industries. Conversion is also a major challenge for the entrepreneurs that had actually to be done by the APIIC at the time of allocation.

Mega projects such as Chennai-Bangalore Industrial Corridor, Vizag-Chennai Industrial Corridors are also facing the issues of land due to encroachments by the local people supported by the politicos. MIDHANI project is also facing the same problem with the land encroachments.

Operational guidelines as part of the industrial policy have not been released so far, even though the financial year is almost coming to an end, which is hampering the growth of the sector.

There is only Sri Damodaram Sanjeevayya Thermal Power Station at Nelaturu in Muthukur Mandal under public sector category. The workforce is around 250 permanent employees (150 engineering staff, 60 O&M staff and 40 deputed staff from other units) and 1,150 casual labourers.

The district has several agro and food and processing units such as milk chilling, milk processing, shrimp and prawn feed, shrimp and prawn processing, rice milling, edible vegetable oil are some of the industries.

The government wants to improve these units by providing the possible help. The district can boast of the basic metals and metal products such as iron and steel, manufacturing of automobile parts and chemical and pharmaceuticals industries.

The mineral-based industries include silica processing, ceramic tiles, granite polishing, pulverising of quartz & feldspar, vermiculite processing, new and renewable energy: solar, biomass power.

Textile and Apparel include spinning and weaving, readymade garments, household furnishing.