Besides infrastructure facilities for MSMEs, the township will have a skill development training centre and a residential facility for workers.
It will come up between Gannavaram and Veerapanenigudem villages on the outskirts of Vijayawada, a release from the Chief Minister's Office said.
Andhra Pradesh Chief Minister N Chandrababu Naidu met with representatives of MSME sector here this afternoon and said the government would extend all support in setting up industrial units.
While uninterrupted power and water supply to the township would be ensured, the Chief Minister also agreed to construct a flyover connecting Gannavaram and Veerapanenigudem to avoid traffic hassles, the release added.
Information Minister Palle Raghunadha Reddy and officials of industries department attended the meeting.