VIJAYAWADA: The Andhra Pradesh MSME Development Corporation wants to establish one to two MSME cluster units in each district under the Cluster Development Programme (CDP) within a year. Under the CDP, at least 25 independent entrepreneurs will come together and form a Special Purpose Vehicle (SPV) to set up units.
The Centre will provide 70 per cent funds, State will contribute 20 per cent and the remaining 10 per cent will be collected from the group members. There is no limit for the maximum number of entrepreneurs in the group.
Speaking to TNIE, AP MSME Development Corporation chairman Vanka Ravindranath explained that the funding assistance from the Centre as well as the State government for the units to come up under CDP are grants, not loans. So, those entrepreneurs forming as a group and getting the units under CDP need not pay back the amount. In case of a unit costing Rs 10 crore, the amount to be shared by all the entrepreneurs will be only Rs 1 crore.
Saying that the intention of the government behind the CDP is to give enough holdings to small entrepreneurs by assisting them to have modern machinery so as to enable them to compete with large-scale industries. As the SPV should not have less than 25 entrepreneurs, the development fruits will be shared among all the members.
“As of now, we have set up five units, including three in East Godavari and two in Krishna districts. We are planning to increase the number in the coming months,” he said. Stating that 150 dal mill owners formed as SPV in East Godavari district, he said a pulses unit with latest machinery, which ensures less wastage, was sanctioned to them. Similarly, a Rs 18 crore printing unit was sanctioned to 250 printers, who came together and formed as SPV.