APIDC all set for a makeover by year end

Indian Institute of Management - Calcutta draws up revamp plan

The Andhra Pradesh Industrial Development Corporation (APIDC), the nodal agency and facilitator for medium and large industries, is all set to get a makeover by the year end.

The state-owned corporation, which was set up in December 1960, for a planned development of the mid-large scale industries and to fund first generation entrepreneurs, had not been functioning properly since 2006.

APIDC had assisted 805 units. From 1994 the state had stopped funding, reduced its staff and focused only on loan recovery. “With private sector banks lending to these industries, along with PE units and venture capitals, the government felt there was no role for APIDC. So, it decided to stop funding,” a senior APIDC official said.

The corporation had roped in Indian Institute of Management, Calcutta, which has come out with recommendations for its revamp and continuation. The decision to revamp APIDC was taken by former chief minister, K Rosaiah, on the basis of IIM-K report, B Sam Bob, principal secretary, industries and commerce, said.

The study suggested structural changes like introduction of some technical sectors in the list. The first generation of entrepreneurs are not being encouraged in the state, it pointed out.

The report was prepared by a committee of officers including principal secretary of public enterprise department, principal secretary of industries and commerce and then chairman and managing director of APIDC, Vinod Kumar Agarwal.

“With these recommendation, the file would now go to the Cabinet for approval. We expect the project to get the approval by the state government by this year,” Sam Bob said.

He said AP was an agricultural state and there was a need to develop agro-processing units. APIDC would focus more on food processing units and the MSME sector. It would continue to fund entrepreneurs, along with giving assistance on finance and consulting among others.

“Once the mandate is cleared, we will study the market and set the finance. For additional funding, we will take the help of Nabard,” Sam Bob said. APIDC might stop equity funding after its evaluation from its earlier both equity and term financing provision.

The revival of APIDC would help in disbursement of funds to entrepreneurs by following ‘project appraisal’ approach, which ensures full utilisation of fund, and would help in wide dispersal of industries subject, Sekhar Agarwal, president, Fapcci, said.