Andhra Pradesh Government announces Rs. 1100 crore package to benefit MSMEs

Andhra Pradesh Chief Minister YS Jagan Mohan Reddy on Friday announced a restart package of Rs 1100 crore to benefit the MSMEs in the state. At present, Rs 450 crore has been released, as the first installment. The Chief Minister stated that the special package would benefit about 98,000 units, directly impacting over 10 lakh people employed in these small and mid-level organisations across the state.

Speaking over video conference to district collectors in the state, Chief Minister YS Jagan Mohan Reddy instructed the officials to focus on the growth of the MSME sector and exclusively assign a Joint Collector for the same. Stating that the coronavirus pandemic has adversely impacted the MSME sector, CM Jagan Mohan Reddy said that the State Government is making efforts to ensure the industry gets back on its feet.

The Andhra Pradesh Chief Minister further stated that the unemployment problem of the state will also be solved slowly if the MSME sector is up and running again. Mr Reddy said that 75% of the jobs in the MSME sector must be reserved for local youth in Andhra Pradesh. Skill Development Centres for the same must be set up in each district of the state,  the Chief Minister said.

To further help the MSMEs, 25% of the total product requirement of Andhra Pradesh must be fulfilled by MSMEs, Chief Minister Jagan Mohan Reddy stated. Of the 360 small and mid-level industries entrusted with this work, 4% belong to people from SC/ST communities and 3% to women. In a further incentive, the State Government has waived off Rs. 188 crore towards minimum power demand charges for April, May, and June months this year. A corpus fund of Rs. 200 crores has also been announced as investment capital to provide loans to small ventures at low-interest rates.