To strengthen the micro, small and medium enterprises (MSME) sector, the Andhra Pradesh government has approved the Andhra Pradesh Cluster Development Program (AP-CDP) with an estimated outlay of Rs 200 crore. The decision was taken at the State Cabinet meeting held on Thursday, according to Kondapalli Srinivas, Minister for MSME, SERP and NRI Empowerment.

Addressing the media at the State Secretariat on Friday, the Minister said the programme aims to accelerate industrial growth by creating sector-specific clusters across the State. Over the next five years, 45 Common Facility Centres (CFCs) will be established, providing shared infrastructure and advanced technological facilities for MSMEs operating in sectors such as printing, agri-based industries, gold and jewellery, food processing and allied manufacturing.

“These Common Facility Centres will help MSMEs reduce costs, improve productivity and enhance competitiveness. Around 1,840 MSME units will directly benefit from the programme, creating more than 7,500 direct employment opportunities for unemployed youth,” Srinivas said.

He attributed the conceptualisation of the AP-CDP to the focused vision of N. Chandrababu Naidu, who has prioritised MSME development as a key driver of economic growth. “Under the Chief Minister’s guidance, the government is promoting sector-based clusters and ‘sectoral parks’ that allow industries to share machinery, infrastructure and modern technology, enabling small units to compete with larger enterprises,” the Minister noted.

The State government has earmarked Rs. 200 crore for the programme, with financial assistance ranging from Rs 5 crore to Rs 10 crore per project. While 40 cluster projects are already being implemented with Central government support, AP-CDP marks the launch of a dedicated State-level scheme to further scale up industrial capacity.

Under the programme, the government will bear 100 percent subsidy on machinery, in line with Central scheme norms, while buildings will be constructed by Special Purpose Vehicles (SPVs). Land will be provided within APIIC industrial parks, significantly reducing capital investment and operational costs for participating units.

The Minister also announced the Cabinet’s approval for launching the Chief Minister Employment Generation Programme (CMEGP), modeled on the Centre’s PMEGP, to promote entrepreneurship. Under CMEGP, manufacturing units will be eligible for loan subsidies up to Rs 50 lakh, while service units can avail subsidies up to Rs 20 lakh.