The recent release of the first tranche of MSMEs dues has brought in a huge cheer for industry and businesses in the state. Chief Minister Mr Jagan Mohan Reddy had in late April announced for the release of MSME dues which were pending since the previous government’s time.
The first tranche of the Rs 905 crore MSME dues were released on May 22nd wherein Rs 450 crores were given to the eligible micro, small and medium enterprises.
This also forms part of the government’s recently launched ‘ReStart’ package which aims to provide an impetus to the MSMEs in the state.
‘The CM was very keen to explore ways wherein MSMEs can be uplifted and helped during these trying and testing times. Moreover he was very clear that he wanted money to go into the hands of businesses so that they can be put to the best of use’ said Mr JVN Subramanyam, IAS, Director Industries, Commerce and Export promotion, GoAP speaking exclusively to Vizag Industrial Scan.
Something he says world over is called as Helicopter grant i.e. putting money into the hands of people.
‘And to be fair these were rightful dues to the MSMEs hence we dint shy away from the responsibility and took the decision for their release. This I must say was a major and bold decision by the CM despite the state’s bleak economic situation’.
Similarly the government decided to waive of the power minimum demand charges of industrial units.
‘In the case of power charges we understood that as many industrial units have been closed and haven’t been using their premises this is probably another way to help them. Thus the decision to waive the minimum demand charges was taken’ said Mr Subramanyam.
This is another step under the re-start package which shall significantly help micro and small units.
In addition there is a corpus of Rs 200 crores which has been given by the state government to APSFC (Andhra Pradesh State Finance Corporation) to be lent to micro and small units for addressing their working capital needs.
And in order to help businesses and units understand the various schemes and packages available to them (both from the state and centre) the industries department has launched the re-start portal.
Here businesses can come and understand all the packages available to him/her.
‘We ideally want all eligible units in the state to take advantage of the economic packages & schemes both the state and central governments have come out with. This will only help them grow and prosper. We want our micro units to become small, small units to become medium etc.
Our CM’s clear instructions to us has been to hand hold industry and make them grow and prosper because if they prosper so will the state’ said Mr Subramanyam.