Andhra Pradesh Approves Project Handover To Speed Up MSME Infrastructure Development

ENA MSME 2025-06-17 15:11:25 Amaravati, Jun 17 (KNN) The long-stalled construction of flatted factory complexes at the Vemavaram Jakkampudi Economic Township is poised to advance following state government approval for institutional restructuring and project handover. The Andhra Pradesh government has authorised the Andhra Pradesh Economic Development Board Corporation Limited to complete pending land alienation procedures and transfer project responsibilities to the Andhra Pradesh Industrial Infrastructure Corporation. The Andhra Pradesh Industrial Infrastructure Corporation will assume control as the nodal agency for the Micro and Small Enterprises Cluster Development Programme, which encompasses infrastructure development and common facilities cluster components. Under this arrangement, the corporation will oversee completion of remaining tower construction work specifically designed to accommodate micro, small, and medium enterprises. The state government has facilitated the execution of a memorandum of understanding between both agencies, establishing clear operational parameters for project completion. The Andhra Pradesh Industrial Infrastructure Corporation will be responsible for finishing incomplete portions of the first tower and constructing additional towers within the flatted factory complex. Funding mechanisms will include central government schemes and potential private sector partnerships, with space allocation following established industrial infrastructure corporation guidelines. The Jakkampudi Economic Township was originally conceptualised to create an integrated work-residential environment across 234 acres spanning Jakkampudi and Vemavaram villages in Vijayawada rural mandal. Land allocation comprised 60.01 acres in Vemavaram and 93.02 acres in Jakkampudi, totalling 153.03 acres for the development initiative. Phase-1 construction commenced with government sanction and an estimated budget of Rs 143 crore under the Engineering, Procurement, and Construction model. The initial scope included development of three towers and supporting trunk infrastructure for flatted factories covering 6.45 lakh square feet. However, project execution encountered significant obstacles, with the contracting agency achieving only 20 percent completion before work cessation. Construction delays stemmed from multiple factors, including disruptions caused by the COVID-19 pandemic and administrative complications related to land parcel alienation. The failure to complete land transfer procedures to the Andhra Pradesh Economic Development Board Corporation resulted in funding release issues, effectively stalling project progress until the recent governmental intervention and institutional restructuring. (KNN Bureau) 42473 https://knnindia.co.in/news/newsdetails/msme/andhra-pradesh-approves-project-handover-to-speed-up-msme-infrastructure-development 2025-06-17 15:11:25 knnindia.co.in Andhra Pradesh Approves Project Handover To Speed Up MSME Infrastructure Development