**Subject:** Status of Gold Ornament Cluster Development in Krishna District, Andhra Pradesh under MSE-CDP
**Summary:**
This document addresses Lok Sabha Unstarred Question No. 3112 regarding the Gold Ornament Cluster project in Jaggayyapeta, Krishna District, Andhra Pradesh, approved under the Micro and Small Enterprises Cluster Development Programme (MSE-CDP) in FY 2021-22.
The project, involving the establishment of a Common Facility Centre (CFC), was initially slated for completion by October 2024. However, delays have occurred due to a change in the CFC location after final approval and the plant machinery procurement process, according to the Government of Andhra Pradesh.
The approved total project cost is Rs. 8.00 crore, with a Government of India (GoI) grant of Rs. 6.1452 crore. As of the date of this answer (August 7, 2025), a total GoI grant of Rs. 4.30164 crore has been released to the State Government for project implementation. The State Government has requested an extension until December 2025 to complete the project.
Key Entities Referenced
Ministry of Micro, Small and Medium Enterprises: The Indian government ministry responsible for the development of micro, small and medium enterprises.
MSECluster Development Programme: A program by the Ministry of Micro, Small and Medium Enterprises focused on developing MSE clusters.
SHRI BALASHOWRY VALLABHANENI: A member of Lok Sabha who asked a question regarding the MSECluster Development Programme.
SUSHRI SHOBHA KARANDLAJE: Minister of State for Micro, Small and Medium Enterprises who provided the answer to the question.
Gold Ornament Cluster, Krishna district, Andhra Pradesh: A specific cluster for gold ornaments located in Krishna district, Andhra Pradesh, that received approval under the MSECluster Development Programme.
Jaggayyapeta, Krishna District, Andhra Pradesh: The location of the Common Facility Centre within the Gold Ornament Cluster.
Common Facility Centre: A shared facility established to support the Gold Ornament Cluster in Jaggayyapeta.
Government of Andhra Pradesh: The state government responsible for the implementation of the project.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 3112
TO BE ANSWERED ON 07.08.2025
MSE-CLUSTER DEVELOPMENT PROGRAMME
3112. SHRI BALASHOWRY VALLABHANENI:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether it is true that the Ministry has approved Gold Ornament Cluster for Krishna district in
Andhra Pradesh under MSE-Cluster Development Programme;
(b) if so, whether it is true that the cluster was supposed to be completed by October, 2024;
(c) if so, the reasons for delay in its completion;
(d) whether it is true that out of Rs. 15 crores allocated for the project only Rs. 10 crores have
been spent by the Government; and
(e) if so, the reasons therefor and the time by which the project is likely to be completed?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) & (b): Yes. Under Micro and Small Enterprises- Cluster Development Programme (MSE-
CDP), proposal for setting up of Common Facility Centre (CFC) in Gold Ornament Cluster,
Jaggayyapeta, Krishna District has been approved during FY 2021-2022. This project was supposed
to be completed by October, 2024.
(c): As stated by Government of Andhra Pradesh, delay is due to change of location of CFC after
final approval and procurement of plant & machinery process.
(d) & (e): The project was approved at a total project cost of Rs. 8.00 crore with GoI grant Rs.
6.1452 crore. A total GoI grant of Rs. 4.30164 crore was released to State Government for the
implementation of the project till date. The State Govt. has sought an extension upto December 2025
for completion of the Project.
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