Andhra CM releases second restart package for MSMEs; Sai Reddy says actions speak louder than words

29 June, 2020 | newsx bureau

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Andhra Pradesh Chief Minister YS Jagan Mohan Reddy has revealed that his government plans to give a Rs 1,000 crore package to spinning mills next year and focus on other sector in the following year.

Chief Minister Of Andhra Pradesh YS Jagan Mohan Reddy has released Rs 512.35 crore to MSMEs as the second tranche of the Rs 1,168 crore Restart package to handhold the sector and said that the government will focus on spinning mills in the next year.

During a video conference with the district collectors while releasing the second installment of the Restart package to MSME sector, the Chief Minister said that there is every need for the State to handhold the MSME sector which has 97,428 units of which 24,252 are micro units and they are providing employment to about 10 lakh people.

YSRCP Parliamentary party Chief said unlike the ex CM Chandrababu Naidu, the present CM Jahan Mohan Reddy works silently and is giving major push to the industry in the time of crisis. He tweeted, ‘The restart package will give employment to 10 lakh people and useful for about one lakh MSMEs in Andhra Pradesh.’ He further said actions speak louder than words.

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Apollo tyres beginning its production & committing Rs.3, 800 cr investment in AP is a testimony to the trust corporate world has in CM Jagan Mohan Reddy. When we say “ease of doing business”, we mean it in spirit, not just on paper.’

As promised by the government, we have released the first tranche of Rs 450 crore in May and now we are releasing Rs 512.35 crore to give a fillip to the sector as the previous government did not clear investment dues worth over Rs 827.5 crore, which we have cleared, the CM said, adding that MSMEs are considered to be second largest employment provider after agriculture.

The fixed power charges for three months, April, May and June are waived which work out to Rs 188 crores besides providing soft loans from State Investment Corporation ranging from Rs 2 to Rs 10 lakhs towards working capital with interest ranging from 6 to 8 percent to give boost to the MSME sector, he said. A Joint Collector will be made in-charge of the MSME sector.

This apart we are giving six-month moratorium and have fixed the term to three years. The State will purchase 25 % of the 360 types of goods produced by MSMEs of which 4 per cent will be from MSMEs run by SCs and 3 per cent from units run by women. The bills will be cleared within 45 days, he said. The district collectors should encourage them and cooperate to ensure that they are not pushed into despair.

In the next year the focus will shift to spinning mills. The previous government did not pay the investment incentives to industries to a tune of Rs 4,000 crore. Despite the financial constraints we have cleared Rs 827 crore uncleared subsidies by the previous government. We plan to give a Rs 1,000 crore package to spinning mills next year and in the following year will focus on other sector. These measures are to bring back the credibility of the State, the Chief Minister said.

The beneficiaries who interacted with the Chief Minister expressed their gratitude to the Chief Minister and said that the amount released will be a big booster for the running of their units.

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