Andhra to launch programme to enhance manufacturing, services, and employment opportunities for MSMEs: Report

The Andhra Pradesh government is planning to launch a programme to promote entrepreneurship and employment in the manufacturing and service sectors under the Micro, Small and Medium Enterprises (MSMEs) segment.

The Chief Minister Employment Generation Programme (CMEGP) is modelled on the Central Government's Prime Minister Employment Generation Programme (PMEGP), and aims to create self-employment opportunities across rural and urban areas, said a report by The Hindu.

The PMEGP allows investments of up to Rs 50 lakh for manufacturing units and Rs 20 lakh for service units. However, the CMEGP is raising the amount to Rs 75 lakh for manufacturing, and Rs 25 lakh for service units.

The MSME Department expects to establish up to 6,000 new units across Andhra Pradesh, a source revealed in the media report.

Additionally, the Andhra Pradesh state government is also formulating a separate policy to promote Common Facility Centres (CFCs) to invest additional funds to expedite its development. These CFCs will act as share infrastructure hubs offering common resources to enterprises, and help reduce their operational costs.

Another news report suggested that Kondapalli Srinivas, Minister of MSME, Rural Poverty Alleviation and NRI Empowerment, has directed state officials to prioritise the development of essential infrastructure in all its 175 MSME parks coming up across the state. This includes key facilities like roads, water, electricity and other basic amenities.

Additionally, Srinivas has instructed officials to implement the State's new industrial policies effectively, prepare clear action plans, and ensure that entrepreneurs benefit from government incentives.

According to Industries and Commerce Department's New Andhra Pradesh Industrial Development Policy 2024-29 focuses on providing infrastructure, financial support, and technology access to boost growth and entrepreneurship.