Andhra CM Jagan Reddy releases incentives of over Rs 500 cr to restart MSME operations

Chief Minister YS Jagan Mohan Reddy has released the 2nd tranche of incentives of Rs 512.35 crore today (June 29). He said that it is an effort to restart the operations of Micro, Small and Medium Enterprises (MSMEs) in Andhra Pradesh.

The YCP Government has accorded top priority to the development of MSMEs for catalyzing growth. The MSMEs have a significant impact on employment generation and improvement in the standard of living. But the lockdown had an adverse effect on this sector and YS Jagan Mohan Reddy had disbursed Rs 450 crore in May to help MSMEs to overcome the crisis.

2nd tranche of incentives for MSMEs

Now, the AP CM has released Rs. 512.35 crore as the 2nd tranche of incentives for the MSMEs. CMO Andhra Pradesh tweeted, "As part of the efforts to reSTART MSME operations in AP, Hon'ble CM @ysjagan released the 2nd tranche of incentives amounting to Rs. 512.35 Cr, today. The first installment of Rs.450 Cr was released in May. 97,428 MSME units across the state have benefited."

Talking about the restart package, YS Jagan Mohan Reddy said that over 10 lakh people are employed in around 98,000 MSME units in the state. The state's economy is not doing well, but his government has launched a restart package worth Rs 1,168 crore to help the MSMEs in the state.

YS Jagan Mohan Reddy added, "As promised, our government has released Rs 827 crore for the MSMEs so far. We have planned to give away a total of Rs 1168 crore to restart the operations of the MSMEs. I would focus on spinning mills next year. The officials told me that there are some pending stuffs. I would like to assure you that I would try to help spinning mills section in the next year too."

The TDP Government owed approximately Rs 800 crore to MSMEs in subsidies. The present government cleared these dues and waived fixed power charges for three months amounting to ₹188 crore. Besides, working capital loans were provided in the Rs 2 lakh to ₹10 lakh range at 6% to 8% interest, according to The Hindu.