AP announces Rs 1,110 crore ReSTART package for MSMEs
Hyderabad, May 22 (KNN) In a bid to help Micro Small and Medium Enterprises (MSME) to tide over the economic crisis due to COVID-19 pandemic, the Andhra Pradesh (AP) government has announced a stimulus package named ReSTART for industries operating in the state.
As per the official statement, Andhra Pradesh Economic Development Board (APEDB), the Rs 1,110 crore 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.
A preferential market access policy has also been announced which will ensure that 25 per cent of government purchases are from MSME firms for about 364 items.
"The markets for most of the Micro and Small Enterprises (MSEs) have been eroded due to the loss of global supply chains and providing market access is a key intervention. So, a Preferential Market Access to MSEs in all government procurements is provided," the official statement added.
Besides reviving the MSME sector, it will also protect existing jobs and create new ones. In Andhra Pradesh, around 1 lakh MSMEs provide employment to more than 10 lakh workers.