The Andhra Pradesh Industrial Infrastructure Corporation had allocated 50 acres for the proposed cluster and land-development was currently on, said M. Srinivasulu, Deputy Director, MSME Development Institute, reports Hindu Business Line from Hyderabad.
Speaking at a seminar on MSME financing organised by the Federation of Indian Chambers of Commerce and Industry, Andhra Pradesh Chapter, Srinivasulu said about 500 powerlooms would be set up in the cluster. A turmeric cluster was also proposed to be set up at Armur, Nizamabad to facilitate exports.
B Suresh Babu, Additional Director, Department of Industries, Government of Andhra Pradesh, said there was a need for positive change in the treatment of small and medium enterprises while extending finance.
The State Government was extending incentives to SMEs such as reimbursement of 25 per cent of value-added tax and up to Rs 0.75 on power charges per one unit of power. M. Madhava Reddy, Deputy General Manager, Bank of Baroda, said his bank has 24 different products to suit the financial needs of SMEs. K. Praveen Kumar, Executive Member of FICCI, Andhra Pradesh, said despite contributing a big share in the gross domestic product, the MSME sector did not have enough financial strength to bring in new technology.