Andhra Pradesh is set to launch one of India’s largest energy and water efficiency programmes for micro, small and medium enterprises to transform the industrial ecosystem through resource efficient manufacturing and global technologies. The State is partnering with the Union Government via Energy Efficiency Services Limited under the Ministry of Power and aligns the initiative with the RAMP scheme and the State MSME and Entrepreneur Development Policy. The programme will be launched at the MSME Growth Conclave in Vijayawada on May 25 and will be attended by the Chief Minister, Industries Minister Kondapalli Srinivas and senior officials.

Under the programme, energy and water audits will be conducted across 15 clusters, benefiting over 1,000 enterprises. Cluster mapping, diagnostic studies and Energy Intensity Indicators will benchmark consumption and identify high energy-intensive units to target efficiency measures and reduce costs. The State anticipates the initiative will serve as a national model by enhancing competitiveness, lowering operating costs and supporting the creation of green employment while strengthening sustainability across manufacturing value chains.

Andhra Pradesh hosts 2.1 million (mn) MSMEs, of which the manufacturing segment accounts for 24 per cent of the sector and includes 0.5 million (mn) units in agro-based, textile, food processing and dairy industries. The industrial landscape reflects inclusiveness, with 45 per cent of enterprises led by women entrepreneurs. The conclave will also showcase new facilitation services and partnerships, with the Industries Secretary urging widespread awareness among MSMEs to ensure broad participation.

The MSME credit ecosystem has expanded, with institutional credit crossing Rs 1.17 trillion (tn) in fiscal year 2025–26. Under national schemes, 6,193 enterprises were established via PMEGP, generating 68,123 jobs, while the AP CMEP scheme targets 3,500 MSMEs with Rs 3 bn in support. The PM Vishwakarma scheme disbursed 25,068 loans worth Rs 1.79 bn. 175 MSME parks have allotted land to about 700 units, attracting Rs 10 bn in investments and potential for 21,795 jobs, and the AP Cluster Development Programme carries a Rs 2 bn outlay to develop 45 clusters by 2030.