The Government of Andhra Pradesh on Thursday approved the Andhra Pradesh Cluster Development Programme (AP-CDP) with an outlay of Rs 2 billion to strengthen micro, small and medium enterprises across the state, MSME minister Kondapalli Srinivas said on Friday.

Addressing the media at the Secretariat, Srinivas said the five-year programme will establish 45 Common Facility Centres across Andhra Pradesh. These centres will offer shared infrastructure including modern machinery, technology support, packaging units and job-work facilities for sectors such as printing, agri-based industries, gold and food processing.

The initiative is expected to directly benefit around 1,840 MSME units and generate more than 7,500 direct employment opportunities across the state.

Srinivas said the programme was conceptualised under the guidance of Chief Minister N Chandrababu Naidu, with a focus on developing sector-based clusters and dedicated sectoral parks to enhance competitiveness. By enabling shared access to infrastructure and technology through the CFCs, small enterprises will be better positioned to compete with larger players, he added.

Under the scheme, the state government will provide financial assistance ranging from Rs 50 million to Rs 100 million per project, with a 100 per cent subsidy on machinery. Buildings will be developed by special purpose vehicles, while land will be provided within parks of the Andhra Pradesh Industrial Infrastructure Corporation.

The minister noted that while 40 cluster projects are already being implemented in the state with central government support, the AP-CDP represents Andhra Pradesh’s own dedicated cluster development initiative.

The Cabinet also approved the Chief Minister Employment Generation Programme, modelled on the PMEGP, to promote entrepreneurship. Srinivas said the approvals mark a major milestone in Andhra Pradesh’s economic and industrial development.