MSMEs to get Rs 1120 Cr benefits in AP, Jagan to commence the programme on Friday

Amaravati: The State government will commence providing financial assistance to MSMEs on Friday, to a tune of around Rs 1120 cr, under the Industries Restart Package. This is part of the promise given by the Chief Minister YS Jagan Mohan Reddy during the COVID19 lockdown. On the other hand, the industrialists are also expressing their happiness over clearing dues. Chief Minister will release the first instalment amount, according to the Industries department officials.

The government is planned to release the payment of all sanctioned but outstanding incentives to MSME units to a tune around Rs 905 cr in two phases including in May and June months of this year. As per that plan, the government will release the first phase instalment on May 22, informed Minister for Industries Mekapati Goutham Reddy.

In addition to those incentives like the waiver of 3 moths fixed demand charges for MSMEs, deferment of power minimum demand charges for 3 months for large and mega units apart from working capital loans for MSEs along with preferential market access for them will be rolled out, he explained.

He hoped that this will help the MSMEs to overcome the operations crisis created by the COVID19 pandemic.

The government will ensure loans to the MSEs from SIDBI, informed the office of Minister while interacting with The Hans India.