VILLAGE & SMALL SCALE INDUSTRIES - AP Online

VILLAGE & SMALL SCALE INDUSTRIES
6.3 The Small Scale Sector plays a significant role in industrial production and employment
generation. Due to the sustained efforts of the State Government the growth of the SSI
Sector in the State has been impressive. During 2000-2001 (upto October, 2000) 17,716
Small Scale Industries were established with credit assistance of Rs.137.97 lakhs
providing employment to 88,086 persons. In order to attract the new investments to the
State, the following thrust sectors have been identified keeping in view the goals set
under Vision – 2020.
- Agro Food processing, Bio Technology.
- Automobile, Auto Components.
- Bulk Drug and Pharmaceuticals.
- Apparel Textile & Leather.
- Finance & Insurance.
- Mining and Minerals.
- Electronics hardware & Telecom.
6.4 To identify the potential investors in the above sectors at the national and international
level till the projects are materialised, 6 Consultants were appointed.
6.5 District Industries Centres were established during the year 1978 with the objective of
providing all Services under one roof to the Entrepreneurs. District Industries Centres are
the Nodal Agencies in the Districts for the Orderly development of Industries. They are
primarily responsible for the development of village and Small Scale Industries, and
generating Self Employment opportunities. The District Industries Centres have been
entrusted with the responsibility of providing all clearances / approvals needed for setting
up an Industry, from various Government departments / Agencies. District Industries
Centres are also the implementing Agencies for ‘ Prime Minister’s Rozgar Yojana’
programme for the Educated unemployed youth. The target for 2000 – 2001 and
achievement are as shown below:
Table 6.1
Target and Achievement
SL. No. ITEM 2001-01
Target Achievement
1. SSI/Tiny Units
Commissioned
28882 17716
2. No.of Persons provided with Employment 171589 88086
3. Amount of Credit Assistance sanctioned by
Financial Institutions (Rs.Lakhs)
20826 13797
6.6 In the New Industrial Policy “TARGET” – 2000 announced by the Government in 1995,
the Investment Subsidy is to be given @ 20 % of the fixed capital cost, not exceeding

Rs.20.00 lakhs, to all eligible new industrial units. During the Year 1999-2000, an
amount of Rs.3700.00 lakhs has been disbursed to 935 industrial units both for District
Level Committee Cases (DLC) and State Level Committee Cases (SLC).
6.7 The exports of Industrial goods require quality maintenance of International standards for
easy acceptance of goods by foreign consumers. The quality conscious buyers prefer the
pre-certification of the goods by the International Standard Organisation. The ISO 9000
is the quality marking of International Standard. The fulfilment of the terms and
conditions of ISO –9000 Certification is an ordeous task requiring lot of investment for
which the SSI Units are not affording to get this certification. So far 31 units have been
given incentive to a tune a Rs.7.57 Lakhs under ISO –9000 Certification. (Since
April,1997).
6.8 CSIR Laboratories, Tool Room, Prototype Project Development Centres, etc are being
involved for development of prototype designs drawings, dissemination of the
information through Seminars, Workshops and Technology transfer between Large and
Small Scale Industries particularly for ancillarisation and vendor development. An
Amount of Rs.108.00 lakhs was released during 1999-2000. Out of Rs.108.00 lakhs an
amount of Rs.100.00 lakhs has been exclusively given to Confederation of Indian
Technology upgradation and modernisation in the Small Scale Industrial Sector to
compete with other sectors in producing goods as per the market demands with the
involvement of non – Government Organisations and Industrial Associations.
6.9 There is a need to extend Technical and Scientific support to the SSI Sector by arranging
Need Based Research through the Research Institute within Country. Department of
Electronics, NSIC Research Institutes pertaining to CSIR and other organisations are
expected to undertake Research work especially to cater the needs of SSI Sector to help
those SSI units which cannot afford to undertake this job on account of meagre financial
resources available at its disposable for such activity. The aim of industry Institute
Interface Meetings is to arrange for the transfer of Technology from Research Institutes
to the SSI Sector and also to induce the Research Institutes to take up Research, Design
and Development of the items which can easily be manufactured and marketed not only
in National but also in the International markets.
6.10 In order to provide congenial atmosphere to Women Entrepreneurs to undertake
manufacturing activity suitable to their nature under Tiny and SSI Sector, it is proposed
to establish an Industrial Estate for Women Entrepreneurs in RR District.20-acres of land
situated in Qutubullapur Mandal, RR District was allotted in favour of Association of
Lady Entrepreneurs of Andhra Pradesh (ALEAP) for establishment of Industrial Estate.
The Government have constituted a committee for allotting the plots to the Lady
Entrepreneurs and for planning the systematic development of the Industrial Estate for
Lady Entrepreneurs.
6.11 Government of India have sanctioned an amount of Rs.1.40 crores as financial assistance
to this Industrial Estate under the scheme of Integrated Infrastructure Development (IID)
for Small Scale Industries.

6.12 In order to cater the needs of the prospective and as well as established Women
Entrepreneurs, an Entrepreneurial Development Institute (EDI) is proposed to be
established with full fledged facilities in Hyderabad by the Association of Lady
Entrepreneurs of A.P. (ALEAP). One acre of land situated in Qutubullapur (M), RR
District was also released in favour of ALEAP for establishment for the above said
Institute on payment of land value. An amount of Rs.25.00 lakhs was also released
towards matching grant for the establishment of EDI. Further, the Government of India
(Deptt. of SSI, Agro & Rural) have released an amount of Rs.25.00 lakhs as grant-in-aid
for the establishment of the Institute. The Government of India have also released an
amount of Rs.34.87 lakhs being grant portion of the cost of the project to the ALEAP
under IID scheme.
6.13 The Expert Committee on Small Enterprises have proposed certain Clusters to be taken
up during the 9 th plan period for technology up gradation. As far the Andhra Pradesh is
concerned the following clusters have been approved by the Govt. of India.
i. Foundry units at Hyderabad and Vijayawada
ii. Food Processing Cluster in Chittoor Dist.
iii. The Pharmaceutical units at Patancheru.
6.14 Indian Institute of Foundrymen has submitted proposal on modernisation plan of Foundry
Industry at Hyderabad which was recommended by the State Government has been
approved by the Government of India. The Indian Institute of Foundrymen are the
custodian to protect the interest of Foundry cluster. The State Government has sanctioned
an amount of Rs.12,00,000/- in the 1999-2000 for implementation of the Foundry cluster
in Andhra Pradesh. The APITCO which is the implementing authority has submitted the
diagnostic study report on “Chittoor Fruit Processing Cluster”. The financial
requirements towards project implementation have been worked out. The funds are to be
shared by State Government and Government of India on 50:50 ratio. The Government
have sanctioned Rs.6.25 lakhs being the 50% of its share in the year 1999-2000. The
Indian Institute of Chemical Technology, Hyderabad is the implementing authority for
pharmaceutical units. The Director of IICT has submitted the proposal to the Joint
Development Commissioner (SSI), New Delhi, During the Steering Committee Meeting
held on 24-12-1999 at New Delhi the Committee has agreed to consider 3 more clusters
such as “ Graphite Crucibles” at Rajahmundry and “Automobile components” at
Hyderabad, Vijayawada and Kakinada.
6.15 The promotion of Small Scale Industries is a major policy of the Government in view of
its potential for employment generation and in view of the need for dispersal of
industries. However it is observed that the Small Scale Industries face several problems
in spite of the support given by the Government and thereby the incidence of sickness is
quite high. Though Commercial Banks are charged with the responsibility of identifying
incipient sickness of SSI units and drawing up rehabilitation programme, they are not
successful, since the revival process is complex. Even though efforts are being made by

the State Level Inter Institutional Committee and District Level Committees for revival
and rehabilitation of sick SSI units the results are not encouraging. Keeping in view the
above, State Government proposed to render assistance to sick SSI units on par with the
Board for Industrial and Financial Reconstruction (BIFR) cases which are provided relief
and concessions. In addition to this providing fiscal assistance in the shape of Interest
Subsidy of Rs.10.00 lakhs (Rupees Ten lakhs only) to such of those sick SSI units which
are viable for revival for whom the Financial Institutions / Banks have also come forward
to assist them under this nursing programme. Proposal to introduce A.P. Board for
Industrial and Financial Reconstruction (A.P.B.I.F.R) for giving reliefs and concessions
to no BIFR units is under active consideration of the Government.
6.16 As per the new Policy announced by the Government, the Government realised the need
for providing essential and critical infrastructure facilities in the Industrial Estates for the
establishment of Small Industrial Units. The Government introduced a scheme by name
“Critical Infrastructure Balancing Scheme” for the purpose. Under this scheme,
Government provides funds to Industrial Estates or to Small Scale Industries Clusters
identified under the SSI Cluster Development Programme for the establishment of some
critical infrastructure considered essential to establish the viability of the infrastructure
project and for the up gradation of the infrastructures in the existing Industrial Estates.
The Government has constituted the “A. P. Small Scale Industries Development
Authority (APSSIDA)” Under this scheme, Critical Infrastructure such as Water supply,
Electric Sub- station, effluent treatment plant etc,, can be finalised/ reimbursed on a cost
of sharing basis at a ration of 1:1 between Government and the Industrial Associations/
Service Societies as per the guidelines issued by the Government of A.P.
6.17 Government with a view to promoter small units in the field of Agriculture, Industry,
Horticulture, Fisheries, Drugs and Pharmaceuticals and Animal Husbandry have
proposed to establish a Bio- technology Park in an area of 180 acres situated at
Turkapally (V), Shamirpet (M), R. R. District for providing all the necessary
infrastructure and a suitable environment for the Bio-Tech industry. The aim of this park
is to attract technology driven domestic and overseas firms engaged in the manufacture
on innovative Bio-technology products and process namely Bio- therapeutic (edible,
vaccine, insulin, Hepatitis –B, etc.) , agro-bio-technology (transgenic seeds, weedicides,
etc) fermentation and health care / diagnostic products. Preparation of feasibility report
on the Biotechnology Park was entrusted to ICICI Mumbai.