The government will be immediately releasing Rs 450 crore as the first installment which would benefit nearly 98,000 units.
CM Reddy released the amount towards the pending industrial incentives to the MSME sector, despite the state facing a deep financial crisis. (File photo: PTI)
As a lockdown exit plan, Andhra Pradesh Chief Minister YS Jagan Mohan Reddy announced a mega boost for MSMEs with a Rs 1,110 crore restart package on Friday.
The government will be immediately releasing Rs 450 crore as the first installment which would benefit nearly 98,000 units. These units employ more than 10 lakh people who were facing hardships due to the lockdown.
During a video conference with District Collectors and entrepreneurs, CM Reddy released the amount towards the pending industrial incentives to the MSME sector, despite the state facing deep financial crisis.
The government also waived power demand charges of MSMEs during the months of April, May and June which is roughly around Rs 188 crore.
“Additionally, Rs 200 crore is going to be provided as input capital to the firms at low-interest rates which would put the MSMEs back on rails, the government said.
The YSRCP government alleged mismanagement by the previous TDP government in the state which did not pay nearly Rs 828 crore of industrial incentives between 2014-2019.
“In order to strengthen the MSME sector during this emergency situation, the state government came up with a reviving package to boost up the MSMEs and create employment. MSMEs is one sector which provides employment to locals,” the CM announced.
The chief minister further announced that the government will directly purchase 360 items manufactured by the MSMEs and give payments in a period of 45 days which will further help the sector.
“Of the total purchases, almost 25 per cent of the purchases are to be done from micro and small enterprises, four percent from SC-ST community enterprise, and three percent from women entrepreneurs,” the CM said instructing the officials.
CM Reddy stated that over 97,428 MSMEs established in the state, which employ about 10 lakh workforce and now with this supportive initiative, over 72,531 micro-enterprises, 24,252 small and 645 medium scale industries will be benefitted.