Andhra Pradesh: The State of SSIs

About 16 cluster development projects are being implemented in the state

The Union government's cluster development programme has come in handy for the Andhra Pradesh government to revitalise the small and medium industries (SMEs) in the state.

As many as 16 cluster development projects are being implemented in the state at present. While the state government is developing 12 clusters, the National Institute of Small Industry Extension and Training (NISIET) is establishing a Lace Cluster at Narsapur and the Small Industries Service Institute (SISI) is setting up a Fan Cluster at Hyderabad.

According to MARCH, a marketing consultancy and research organisation, the state government has also sent six proposals for the consideration of the Centre, which has been implementing various schemes to cater to the different needs of the clusters. The schemes include the Industrial Infrastructure Upgradation Scheme (IIUS), Small Industry Cluster Development Programme (SICDP) and National Programme of Rural Industrialisation (NPRI).

Of the six proposals sought to be taken up under the IIUS, the Centre has identified two proposals "" a Farm Cluster in Hyderabad and an Auto Components Cluster in Vijayawada "" to be taken up during 2003-04. The Centre is yet to accord its approval to the proposals for setting up of a Rs 72-crore Marine Food Processing Cluster in Bhimavaram in East Godavari district, Rs 32.62 crore Powerloom Cluster at Sircilla in Karimnagar district, Rs 15-crore Leather Cluster in Hyderabad and Jammapur in Nalgonda district and Rs 72.22-crore Precision Engineering Tools and Components Cluster in Rangareddy district.

The implementation of IIUS involves provision of common infrastructure facilities for fuel supply, effluent treatment, solid waste disposal, information technology, research and development, quality certification and bench-marking and international marketing. The farm and auto components cluster projects are estimated to cost Rs 74.66 crore and Rs 57.23 crore respectively. Of this, the Central grant is to the tune of Rs 50 crore and Rs 42.86 crore respectively.

With regard to the Fan Cluster at Balanagar in Hyderabad, the SISI stated that its diagnostic study has thrown up three main points "" brand building, exports and technology upgradation "" for intervention. Plans were formulated accordingly and they have been ratified by the Cluster Development Coordination Committee.

As per the market research report prepared by MARCH for Business Standard, two more proposals have been forwarded to the Union government for implementation under NPRI. These proposals pertained to the development of Hill Broom Clusters in Chittoor district.

These apart, under the UPTECH programme, the Union and the state governments have taken up a Fruit Processing Cluster with 33 units in Chittoor district. The UPTECH programme is aimed at technology upgradation, skill development and improving marketing of the units in a cluster.

With regard to the proposal for establishment of a foundry industry cluster under the UPTECH programme, the Institute of Indian Foundrymen (IFF) has been entrusted with the task of conducting a diagnostic study.

Based on the study report, IIF chairman has submitted a proposal to the government for release of Rs 12.5 lakh for sorting out the technological issues of the foundry sector and arriving at research and development strategies for the cluster. The government has sanctioned the amount from the Technology Development Fund.