Andhra Pradesh govt releases ₹512 crore to MSMEs

Our Bureau Hyderabad | Updated on June 29, 2020 Published on June 29, 2020

YS Jagan Mohan Reddy , AP Chief Minister

This is the second tranche of the ReStart Package

Andhra Pradesh Chief Minister YS Jagan Mohan Reddy on Monday released ₹512 crore to MSMEs as the second tranche of the ₹1,168-crore ReStart package to handhold the sector.

Speaking in a video conference with district collectors while releasing the second tranche, the Chief Minister said that the MSME sector in the State was in need of support.

Of the total 97,428 MSME units in the State, 24,252 are micro units, which are providing employment to about 10 lakh people, Reddy said. The MSMEs were the second-largest employment provider in the State after agriculture.

The fixed power charges for the three months of April, May and June, have been waived off. This works out to ₹188 crore.

The government is also providing soft loans from State Investment Corporation ranging from ₹2-10 lakh towards working capital with an interest of 6-8 per cent to give a boost to the MSME sector, he said. .

The State will purchase 25 per cent of the goods produced by MSMEs, of which 4 per cent will be from MSMEs run by members of the Scheduled Caste (SC) and 3 per cent from units run by women. The bills will be cleared within 45 days, he said.

The government plans to focus on spinning mills, next year. It will come up with a ₹1,000-crore package.

“The previous government did not pay the investment incentives to industries to a tune of ₹4,000 crore,” the Chief Minister claimed, adding: “Despite the financial constraints, we have cleared ₹827 crore in uncleared subsidies by the previous government.”

Published on June 29, 2020
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.