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VILLAGE & SMALL SCALE INDUSTRIES - AP Online

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6.12 In order to cater the needs of the prospective and as well as established Women<br />

Entrepreneurs, an Entrepreneurial Development Institute (EDI) is proposed to be<br />

established with full fledged facilities in Hyderabad by the Association of Lady<br />

Entrepreneurs of A.P. (ALE<strong>AP</strong>). One acre of land situated in Qutubullapur (M), RR<br />

District was also released in favour of ALE<strong>AP</strong> for establishment for the above said<br />

Institute on payment of land value. An amount of Rs.25.00 lakhs was also released<br />

towards matching grant for the establishment of EDI. Further, the Government of India<br />

(Deptt. of SSI, Agro & Rural) have released an amount of Rs.25.00 lakhs as grant-in-aid<br />

for the establishment of the Institute. The Government of India have also released an<br />

amount of Rs.34.87 lakhs being grant portion of the cost of the project to the ALE<strong>AP</strong><br />

under IID scheme.<br />

6.13 The Expert Committee on Small Enterprises have proposed certain Clusters to be taken<br />

up during the 9 th plan period for technology up gradation. As far the Andhra Pradesh is<br />

concerned the following clusters have been approved by the Govt. of India.<br />

i. Foundry units at Hyderabad and Vijayawada<br />

ii. Food Processing Cluster in Chittoor Dist.<br />

iii. The Pharmaceutical units at Patancheru.<br />

6.14 Indian Institute of Foundrymen has submitted proposal on modernisation plan of Foundry<br />

Industry at Hyderabad which was recommended by the State Government has been<br />

approved by the Government of India. The Indian Institute of Foundrymen are the<br />

custodian to protect the interest of Foundry cluster. The State Government has sanctioned<br />

an amount of Rs.12,00,000/- in the 1999-2000 for implementation of the Foundry cluster<br />

in Andhra Pradesh. The <strong>AP</strong>ITCO which is the implementing authority has submitted the<br />

diagnostic study report on “Chittoor Fruit Processing Cluster”. The financial<br />

requirements towards project implementation have been worked out. The funds are to be<br />

shared by State Government and Government of India on 50:50 ratio. The Government<br />

have sanctioned Rs.6.25 lakhs being the 50% of its share in the year 1999-2000. The<br />

Indian Institute of Chemical Technology, Hyderabad is the implementing authority for<br />

pharmaceutical units. The Director of IICT has submitted the proposal to the Joint<br />

Development Commissioner (SSI), New Delhi, During the Steering Committee Meeting<br />

held on 24-12-1999 at New Delhi the Committee has agreed to consider 3 more clusters<br />

such as “ Graphite Crucibles” at Rajahmundry and “Automobile components” at<br />

Hyderabad, Vijayawada and Kakinada.<br />

6.15 The promotion of Small Scale Industries is a major policy of the Government in view of<br />

its potential for employment generation and in view of the need for dispersal of<br />

industries. However it is observed that the Small Scale Industries face several problems<br />

in spite of the support given by the Government and thereby the incidence of sickness is<br />

quite high. Though Commercial Banks are charged with the responsibility of identifying<br />

incipient sickness of SSI units and drawing up rehabilitation programme, they are not<br />

successful, since the revival process is complex. Even though efforts are being made by

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