Andhra Pradesh to Set Up International Arbitration Centre

Andhra Pradesh will set up an International Arbitration Centre (IAC) to improve dispute resolution for businesses in the State, said Kondapalli Srinivas, Minister for Micro, Small and Medium Enterprises (MSMEs), Rural Poverty Eradication, and Empowerment of Non-Resident Andhra People.

Speaking at an event organised by the Asian Center for International Arbitration and Mediation (ACIAM) on Sunday, the Minister said Chief Minister N. Chandrababu Naidu is committed to creating an IAC that meets international standards. He added that the inauguration follows discussions held last September between ACIAM and the National Law University.

Mr. Srinivas said the State Government aims to strengthen the Alternative Dispute Resolution (ADR) system. Therefore, it will support institutions such as ACIAM. Applications for delayed MSME payments now go through the ODR portal launched by the Union Ministry of MSMEs. This allows faster and more transparent resolution.

The Minister added that one state-level and four regional MSME Facilitation Councils already resolve pending payment disputes. Furthermore, eligible institutions like ACIAM can register under the ODR framework.

Under the “One Family – One Entrepreneur” initiative, the State provides extra support to MSMEs through the Andhra Pradesh Credit Guarantee Scheme (APCGS). In addition to the 75%–90% guarantee offered by CGTMSE on loans, the State will add 5%–20% more. This step reduces banks’ risk and improves access to credit.

The Government also plans to set up one MSME park in each assembly constituency. This will result in a total of 175 parks across the State.

The event included Supreme Court Justice N. Kotiswar Singh; Ankita Pandey, Director of the Ministry of MSMEs; Visakhapatnam North MLA P. Vishnukumar Raju; the CEO of the Andhra Pradesh MSME Development Corporation; ACIAM founders and Secretary General Professor Surya Raju; FAPSIA representatives; and MSME unit managers.