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23/05/2020 12:33pm

AP govt releases first instalment for MSME sector worth Rs 450 crore

image AP govt releases first instalment for MSME sector worth Rs 450 crore

Amaravati, May 23 (KNN) Andhra Pradesh Chief Minister YS Jagan Mohan Reddy has released the first instalment worth Rs 450 crore out of the total Rs 1,110 crore 'ReStart' package for Micro Small and Medium Enterprises (MSMEs).  

During a video conference with district Collectors and MSME representatives here on Friday, the Chief Minister 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.

While slamming the previous TDP government, Jagan said though it promised industrial incentives, but failed to pay on time and piled up for years.

''In 2014-15, Rs 43 crore was kept pending, in 2015-16, dues were Rs 70 crore, in 2016-17, the amount rose to Rs 195 crore, in 2017-18, it was Rs 207 crore, and in 2018-19, industrial incentive dues were Rs 195 crore,'' he pointed out.

"In five years, a total of Rs 828 crore remained unpaid. We are clearing them along with the 2019-20 dues, that is a total of Rs 905 crore," he said.

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.

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