The southernmost tip of Andhra Pradesh in Anantapur district is poised to become an automobile hub, with National Highway-44 passing through the region, presence of several railway stations nearby, and its proximity to Bengaluru city.
The Andhra Pradesh Industrial Infrastructure Corporation Ltd. (APIIC), sensing the potential in the area from the number of enquiries it has received, has embarked on developing R. Ananthapuram and Goudanahalli villages in Madakasira mandal of the district as an industrial area with focus on automobile ancillary units.
As an indication of its resolve to develop the region as an industrial hub, APIIC in the past three months bifurcated Anantapur district into two zones and put a new zonal manager in place to have greater focus on potential projects.
With KIA Motors already establishing a manufacturing plant at Erramanchi, north of Penukonda, in 600 acres, and Veera Vahan Udyog Private Limited beginning land-levelling work in 125 acres for its ₹1,000 crore electric bus manufacturing unit, the need for MSMEs coming up in the region has become imperative to cater to the continuous demand of the automobile majors.
Veera Vahan is yet to obtain statutory permissions for setting up its industry, but is projected to produce 3,000 hybrid, 2,000 diesel and another 3,000 electric buses at the facility to begin production within one year as per the MoU. The job potential is 9,000 employees, both direct and indirect, said Joint Director of District Industries Centre Gurrala Sudarshan Babu.
APIIC has 639.58 acres to be offered to entrepreneurs as undeveloped land in bulk on the road connecting NH-44 and NH-48. There is an MSME Industrial Park at R. Ananthapuram village and the land available next to it is being projected as the future destination of automobile ancillary units. There is a proposal to acquire another 808 acres if the demand increases.
When KIA Motors commenced manufacturing at its Erramanchi factory close to Penukonda along NH-44, it gave impetus to the automobile manufacturing sector with 22 ancillary units coming up at Ammuvaripalli and Gudipalli and creating a conducive atmosphere for MSMEs.
KIA Motors and the ancillary units together have invested ₹17,000 crore in the region, providing 17,000 jobs, said Mr. Sudarshan Babu.
Hindupur industrial area is home to several electronic units, paints and chemicals, textile and garment-making units due to its proximity to Bengaluru and further extending this corridor to the north, the DIC plans MSME parks and industrial areas in Kalyandurg and Rayadurg, where some garment factories have been operating for several years.
The district currently has 6,227 registered units with an investment of ₹2,289 crore, providing employment to over 70,000 people. More than half of them began operations after 2015. Minerals, agriculture and horticulture-based units are the other areas in which MSME entrepreneurs are showing interest.
One-time restructuring of loans to MSMEs has been allowed till March 31 and 158 of them have applied and some have got the benefit of YSR Navodayam Scheme. The lending bank decides on the restructuring of loan depending on the unit’s revival feasibility, the DIC Joint Director said.