Chief Minister to launch YSR Navodayam scheme tomorrow

Vijayawada: As part of the efforts to extend support to the Micro, Small and Medium Enterprises (MSME), the State government has decided to restructure the loans of over 70,000 industries in the State.

Restructuring of bank loan - One Time Restructuring (OTR) will enable the entrepreneurs to secure more time to repay the bank loans. Due to economic slowdown and other reasons, many MSME units are struggling to repay the bank loans within stipulated time.

In this backdrop, the RBI has decided to restructure loans, ie. OTR. The Department of Industries, Government of Andhra Pradesh, has decided to complete the restructuring of loans by March 31, 2020.

A senior officer of the Department of Industries said the State government recognised the MSMEs as the prime movers for the industrial growth and would extend support online with the norms of RBI, which proposed implementation of One Time Restructuring (OTR).

It is expected that about 70,000 MSME units, which had taken loans below Rs 25 crore will be benefitted in the State. The District Collectors will convene meetings with District Consultative Committees (DCC) and District Industry Promotion Committees (DIPCs) for implementation of OTR.

District cells consisting of officials including General Manager, District Industries Centre, Lead Bank Manager, representatives of the associations of industry and trade would support and monitor the implementation of OTR.

Chief Minister Y S Jagan Mohan Reddy will launch the OTR named as Dr YSR Navodayam scheme on October 17. The new scheme will create a new ecosystem for MSMEs ensuring that all the eligible MSME units are covered for OTR by March, 31, 2020 and Rs 4,057.29 crore has been earmarked for the purpose.

Many MSME units badly need the support of the State and Central governments. These units are suffering due to lack of capital, facing marketing problem, obsolete technology and also lack skilled workers.

With the restructuring of bank loans, there is a possibility of sanctioning new loans to the entrepreneurs to enable them to expand their business. Many industries, which are on the verge of becoming Non-Performing Assets (NPAs), can come out of the problem with implementation of OTR because the repayment time will be extended to the banks and EMIs would be reduced.

Food processing units, engineering companies, coir companies, pharmaceutical companies, chemical and automobile, granite, textile and agro based companies, which fall under the MSME in the State will be benefitted under the Dr YSR Navodayam scheme, said the senior officer.