AP MSME Policy to give boost to entrepreneurs

Hyderabad, April 28: With the state government planning to bring out a Micro, Small and Medium Enterprises (MSMEs) Policy, Chief Minister Sri N. Chandrababu Naidu was informed that the sector plans to attract investments worth Rs.1,200 crore by providing 2.7 lakh jobs in the next five years.

Secretary (industry & investments) S.S. Rawat informed the Chief Minister that the fiscal incentives of the upcoming MSME policy will be the best in the country. The new policy is set to give a huge boost to entrepreneurs by providing seed capital to them.

Stating that the new policy would provide incentives to women, SC and ST entrepreneurs, this policy envisages giving 15% of APIIC's land to MSMEs.

The new policy will bring in a structure and bail out sick MSMEs. 'We will also offer a subsidy on the patent registrations and certifications of MSMEs,' he added.

Mr. Rawat also suggested that MSMEs could be encouraged and annual awards could be given based on innovation, quality of the product, employment generation, high growth in profit, etc.

Explaining that Andhra Pradesh has over 20 lakh MSMEs, the Chief Minister was informed that about 25-30% of the state's employment comes from this sector.

Meanwhile, the Chief Minister asked industries department officials to ensure that training, technology and infrastructure upgradation for MSME employees is implemented .

Sharing about his experience of meeting with China's MSME Association, the Chief Minister asked the industries officials to work on creating an association for MSMEs which will bring in a proper structure and make them stakeholders in development of the industry.

'Computerize all the MSMEs in the state and strengthen them. We can also work in coordination with AP State Skill Development Corporation to upgrade skills of the workforce,' he added.

The Chief Minister suggested two models of structuring for MSMEs: One, based on the sector in which the MSME operates and second, the location where the MSME is based.

Policy on Industrial parks:

The upcoming policy on industrial parks proposes to treat "industrial parks" as an industry and become a self-governing body.

During the meeting, the Chief Minister asked the industries officials to look out for groups or players who have had the experience of constructing similar parks. "You can go for Swiss Challenge system after showing them the land," the Chief Minister added.

Players like Ascendas, Accenture, Raheja, Mahindra, etc have been operating in the industrial parks space. "APIIC can also look out for players from China, Japan and other countries who are interested to develop such parks."

Suggesting the industries department to bring out a policy that will be a workable model, the Chief Minister said that the government's intention is to attract investment and create best infrastructure.

"Involve private players in policy formulation. Explore sector-specific parks concept," he added.

The Chief Minister added that these can be brought to the Cabinet sub-committee on similar lines as mega projects are brought.

Minister Peethala Sujatha, Principal Secretary to CM Satish Chandra, Secretary (industries & investments) S.S. Rawat were present at the meeting.