Vijayawada: Industries await sops from government

Vijayawada: Micro, Small and Medium Enterprises (MSMEs), are eagerly waiting for the release of incentives announced by the state government. The lockdown has compounded woes of MSMEs, which had been reeling under crisis for the last one year due to slowdown.Falling in purchasing power, unemployment, economic slowdown and other factors have been dogging the manufacturing sector in the state.

According to information, subsidy to the tune of Rs 904.89 crore related to 11,238 MSMEs has been pending in the state and recently the government has announced to release it to support the industrial sector particularly the MSMEs. The MSME units are also asking the government to give subsidy on power as each unit costs Rs 11 to 12 to run the industry. Power bills and wages take a lion's share in the expenditure of industries.

Andhra Pradesh Chamber of Commerce and Industry (APCCI) general secretary Potluri Bhaskara Rao said MSME units were struggling in the state due to lockdown and reminded that the industrial sector in the state as well as country was badly hit due to economic slowdown for the past one year.

He said automobiles, textiles, tourism, hospitality and other sectors were in crisis for many months. The recent assurance by the state government to release Rs 904 crore incentives to the MSMEs will be very beneficial to the small entrepreneurs. He said the state government had taken very important initiative to help the industrial sector particularly the MSMEs. He said the entrepreneurs have to pay wages, rent, bank loan EMIs and meet other expenses to run the industries after lifting the lockdown.

K Ramakrishna, who runs a small scale industry in Autonagar, Vijayawada, felt it will take two to three months to the entrepreneurs to resume the production and sale activity. He appealed to the government to release the incentives and give subsidy on power consumption.

He said the purchasing power of consumers fallen drastically due to lockdown and manufacturers have to suffer huge loss, if their products are not sold in the market in near future. Moreover, the migrant workers have already left the state for the past few days. The industrial sector may face shortage of skilled man power.

Experienced workers from other districts and states have been leaving the state due to lack of work in the state for 50 days. This factor will have a huge impact on some industries like granite, furniture, school bags manufacturing, gold ornaments, construction, etc.,