Chennai team’s MSME proposal remains in cold storage

Nellore: A proposal by 250 and odd Chennai-based MSME entrepreneurs to expand their manufacturing capacity by taking advantage of availability of land, abundance of power, water, and labour force available in Andhra Pradesh has been lying in cold storage for the last five years.

As the entrepreneurs, who are members of AIEMA (Ambattur Industrial Estate Manufacturers Association) were keen to have land close to Chennai, the AP government identified land at Kosalanagaram in Chittoor district.

Buoyed by the allocation, the industrialists formed an SPV – KAIPA (Kosalanagaram AIEMA Industrial Park Association) in 2016 and signed a MoU during the Industrial Conclave at Visakhapatnam during the TD regime four and half years back, according to

A. Ramesh, Director of SPV.

After discussions, APIIC earmarked an area of 1500 acres situated at Kosalanagaram for the park.  A Detailed Project Report and feasibility study has already been completed. APIIC has also obtained clearance for the project from National Green Tribunal (NGT), Delhi.

As per the proposal submitted by KAIPA promoters, they would propel MSMEs with an investment of Rs 2,000 crore and the units would generate more than 10,000 jobs, thereby changing the face of Vijayanagaram mandal in Chittoor district.

However, further progress of the project came to a grinding halt after change of government in the state.

KAIPA representatives said that they had met minister for Industries, Mekapati Goutham Reddy and APIIC chairperson Roja several time to discuss the proposal. Incidentally, Kosalanagaram is part of Nagari Assembly constituency, which is represented by Roja.

The minister assured the entrepreneurs that he would provide developed land with plug and play facility of international standards at subsidised cost by getting a special grant from the Chief Minister.

In spite of all the efforts and positive encouragement given by the minister and APIIC, things have not moved at a fast phase, KAIPA members said. They added that the Covid pandemic has further dampened their spirits.

However, they entrepreneurs said that they have not given up on the proposal while expressing interest to pursue with the government to help the project take shape.

When contacted, Goutham Reddy said he was keen on grounding the project while attributing the delay to Covid situation. He said he would talk to the Chennai entrepreneurs to expedite the project.


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