Visakhapatnam, May 28 (KNN) Andhra Pradesh Chambers of Commerce and Industry Federation (Andhra Chambers) lauded the timely release of incentives to Micro Small and Medium Enterprises (MSMEs) under restart package during the lockdown.

"With this restart package, industry will get breathing space out of financial doldrums. Credit limit for the MSMEs from the banks will be increased by 20 percent without any collateral security,'' said Director of AP Chambers A K Balaji, on Wednesday, at a press conference.

NPAs and stressed accounts are specially taken care of with separate package.

The past president of AP Chambers G Sambasiva Rao said releasing of Rs 450 crore as the first instalment of industrial incentives would greatly benefit 10 lakh people working in 98,000 MSME units, who were facing hardships due to the lockdown.

Thanking the Chief Minister for his timely initiative to bring back the failing economy, Pydah Krishna Prasad, president-elect, AP Chambers, said the decision on working capital loans at low interests to the MSMEs with a repayable period of three years including moratorium period of six months for meeting liquidity crisis, was a step in the right direction.

Vice-President of AP Chambers K Kumar Raja, asserted that waiving of fixed charges/minimum demand charges for the month of April/May/June for the MSMEs would help them to cope with the economic impact of COVID-19.

Last week, AP Chief Minister YS Jagan Mohan Reddy had released the first instalment worth Rs 450 crore out of the total Rs 1,110 crore 'ReStart' package for MSMEs.

During a video conference with district Collectors and MSME representatives, the Chief Minister had released the amount which is expected to benefit 97,428 MSMEs in the state and the more-than 10 lakh employees dependent on them.

Jagan further said that despite state's economy is in bad shape, MSMEs are being helped because their problems are severe, adding that the rest of the industrial incentive dues to MSMEs will be cleared on June 29.

ReSTART package includes release of Rs 905 crore outstanding incentives, waiver of fixed electricity charges for three months, deferment of minimum power demand charges for 3 months for large and mega units and soft loans to meet working capital needs.