AP CM Releases Rs 512 Crore To Support MSMEs

AMARAVATI: In a major relief to Medium and Small scale Enterprises Andhra Pradesh Chief Minister YS Jagan Mohan Reddy announced that fixed electricity charges for MSMEs were also waived off for the months of April, May and June due to COVID-19 crisis. CM on Monday has released Rs 512 crore to support the MSMEs in the state during the COVID-19 crisis. CM has released the funds in a video conference held at the CM camp office on June 29 in Tadepalli.

The state government has released these funds as the second phase of financial incentives for supporting the MSMEs which were facing tough times due to lack of production and demand during this lockdown period. As part of the resort package, the state government is providing Rs 1,168 out of which Rs 450 crore was released in May and the rest Rs 512 crore funds were released today.

The previous government failed to pay funds worth Rs 827.5 crore which needs to paid for nearly one lakh MSMEs for 2014-15. After coming to power, the YSR Congress party has earlier announced that they will pay the pending due along with the supportive funds of this year which is Rs. 962.62  crore.

As part of this, CM released Rs. 450.27 crore in May, as the first phase. The rest Rs 512 crore released today.

Speaking on the occasion, CM emphasised on the need to support MSMEs, and said that they will provide employment opportunities to several people.

The MSME is the second sector which provides employment to people after agriculture, said CM.

YS Jagan said that the previous government had kept due of Rs 800 crore, and Now YSRCP had cleared that. 

CM said that the government will offer investment loans from Rs. 2 lakh to 10 lakh with less interest.

He said that the government had provided 6-month moratorium to MSMEs and loans can be paid within 3 years. YS Jagan added that Rs 1,000 crore dues associated with spinning mills will be paid over the next year.