The Government of Andhra Pradesh accords highest priority to promotion of clusters in the state. The individual units in the clusters are eligible for the general incentives offered by the Government under the policy. Apart from this, clusters are also eligible for a special package of incentives for which the State Government has created a fund under the cluster development programme.  The components of the package are

1. Enhance international competitiveness
2. Quality infrastructure through public private partnership
3. Physical infrastructure
4. ICT infrastructure
5. R&D infrastructure
6. Quality certification & Bench marking centre
7. Promotion of Common Brand image
8. Common facility centre

Initially, the Government of Andhra Pradesh has identified six industrial clusters for development under "Industrial Infrastructure Up-gradation  Scheme". Two clusters, namely, Pharma Cluster near Hyderabad and Auto Components Cluster in Vijayawada are on priority. The other four clusters, namely, Marine Food Processing Cluster in Bheemavaram, Powerloom Cluster in Sircilla, Leather Cluster in Hyderabad and Precision Engineering Tools and Components in Ranga Reddy are under consideration by the Government of India. Apart from the above, fourteen more clusters are in the process of development under the assistance of the Development Commissioner Small Scale Industry (DCSSI).

To capitalise on the natural resources and other advantages available in the sub-regions, the Government has proposed to develop industrial corridors in various parts of the state for sustainable and equitable industrial development. 

Source: www.aponline.gov.in