The JRD Tata Industrial Estate here is in for a major facelift, with the Central government releasing a grant of Rs. 2 crore for augmenting infrastructure under the Cluster Development Programme (CDP) of the Ministry of Micro, Small and Medium Enterprises (MMSME).
An equal amount will be released in the coming months for taking up road works on a priority basis. The Centre has released the first instalment of Rs. 2 crore out of the total grant of Rs. 6.15 crore in April 2014. It is the first project in Andhra Pradesh to be chosen by MMSME for upgrading infrastructure under CDP.
The handful of other projects identified under the CDP have since made little progress owing to the delay in releasing funds by the Centre and lack of support from the Andhra Pradesh Industrial Infrastructure Corporation, which is the Implementing Agency, industrialists say.
Each of the southern States, except A.P., got projects sanctioned under CDP, with Tamil Nadu leading the table with up to 30 clusters (most of them are fully functional). The JRD TATA Industrial Estate is the only one in the new State of A.P making some progress long after being grounded. Several applications are pending.
JRD Tata Industrial Area Services Society Chairman V. Ramesh Babu told The Hindu that 30 out of total 144 plots in the industrial estate were lying vacant, and a vast majority of the existing units (numbering about 100) are into automobile component manufacturing and servicing.
“A good number of entrepreneurs have given up their plans to set up their units in our estate due to the poor infrastructure. The shortage of skilled workers is another thing that is hampering growth. We can somehow take care of infrastructure, but from where can we bring qualified manpower”? Mr. Babu wondered, stressing the urgent need for enhancement of skills. He observed that the government should basically focus on ‘plug and play’ model as far as infrastructure creation is concerned, as entrepreneurs would like to go to places where facilities are readily available. A.P lost out to its neighbouring States in doing that. “Our priorities are roads, an administrative building and drinking water supply,” he added.
It is the first project in the State to be chosen by MMSME Ministry under its Cluster Development Programme
