MSME Park – Andhra Pradesh Clears Tribal Land Issue to Restart Delayed Project
MSME Park – Construction work on the proposed MSME Park at Kottakki in Andhra Pradesh is expected to begin again after the state government settled a long-pending land dispute involving tribal farmers.
The Andhra Pradesh government has moved to revive the stalled Micro, Small and Medium Enterprises (MSME) Park project in Kottakki village of Ramabhadrapuram mandal by addressing concerns raised by tribal landholders. Authorities have approved a compensation package totaling Rs 35 lakh for 28 affected farmers and have assured them that their original cultivation lands protected under the Recognition of Forest Rights (RoFR) Act will be identified on the ground and restored for agricultural use. The decision is expected to remove the final hurdle that had delayed the project for months.
Compensation Package Brings Relief
Officials confirmed that each of the 28 eligible tribal farmers has been granted Rs 1.25 lakh as compensation. The financial assistance was approved after recommendations from MSME, SERP and NRI Relations and Empowerment Minister Kondapalli Srinivas and Bobbili MLA RVSKK Rangarao, popularly known as Baby Nayana. Revenue authorities said the compensation has already been distributed through cheques, while steps are being taken to restore the beneficiaries’ original podu lands for cultivation.
Project Faced Delays After Land Protests
The MSME Park has been planned across nearly 100 acres in Kottakki revenue village. The foundation stone for the project was laid on May 10, 2026, in the presence of Minister Kondapalli Srinivas, Vizianagaram Member of Parliament Kalisetti Appala Naidu, and Bobbili MLA Baby Nayana. The government had also sanctioned Rs 7 crore for the first phase, which includes developing basic infrastructure across an initial 10-acre section.
Despite the funding, construction activities came to a standstill when tribal residents from Mirtivalasa objected to the land acquisition process. They argued that they possessed valid RoFR pattas and should not be displaced without adequate compensation and protection of their cultivation rights.
Long History Behind the Industrial Project
The proposed industrial park has been under discussion for several years. In 2015, the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) acquired 187.12 acres at Kakarlavalasa for establishing the park during the previous Telugu Desam Party government. However, administrative issues prevented the project from moving forward.
Later, under the YSRCP government, RoFR pattas were issued to 91 tribal families covering nearly 390 acres, including parts of the land identified for the MSME Park. Those families have been farming the land for about five years. When the present NDA coalition government revived the project, officials initiated land possession proceedings based on a Government Order issued in 2017. This led to fresh protests from tribal residents, who sought compensation before surrendering their land.
Officials Expect Construction to Resume Soon
According to revenue officials, the disputed area included RoFR land held by 28 farmers from Kareduvalasa and Kakarlavalasa villages. Their objections had delayed construction for several months until the latest relief package was approved.
Bobbili Revenue Divisional Officer Ramamohana Rao said the proposals for compensation were submitted following recommendations from Minister Kondapalli Srinivas and MLA Baby Nayana. After receiving government approval, the funds were released without delay and compensation was distributed to the affected tribal farmers. He expressed confidence that the contractor would restart work on the MSME Park in the near future, allowing the long-delayed industrial project to move ahead while addressing the concerns of the tribal community.