Andhra Pradesh Cabinet Clears ₹200-Crore Cluster Programme to Strengthen MSMEs

The Andhra Pradesh Cabinet has approved a ₹200-crore Cluster Development Programme aimed at boosting micro, small and medium enterprises (MSMEs across the state. The A.P. Cluster Development Programme (AP-CDP), cleared on Thursday, is expected to directly benefit 1,840 MSME units and create more than 7,500 direct employment opportunities over the next five years.

Announcing the decision, MSME Minister Kondapalli Srinivas said the programme will focus on strengthening industrial clusters by providing shared infrastructure and modern facilities. Under the initiative, 45 Common Facility Centres (CFCs) will be established across Andhra Pradesh to support MSMEs in key sectors such as printing, agri-based industries, gold processing and food processing.

The proposed centres will offer access to advanced machinery, technology support, packaging units and job-work facilities, helping small businesses reduce costs and improve productivity. The government believes the cluster-based approach will enhance competitiveness, encourage value addition and enable MSMEs to scale operations sustainably.

Officials said the programme aligns with the state’s broader goal of promoting inclusive industrial growth and boosting local manufacturing. By improving access to common infrastructure and technology, the AP-CDP is expected to strengthen supply chains, attract investments and generate employment, particularly in semi-urban and rural areas.