State to release Rs 905 crores to MSMEs
One of the most contentious issues for the MSMEs in the state has been
the long awaited dues that the state government owes to them.
These dues keep in mind have been pending from the previous government’s
time and have continuously been getting deferred.
In a major announcement made by the state’s Industry Minister, Mr Mekapati
Goutham Reddy revealed that the CM, Mr Jagan Mohan Reddy has given the go ahead to disburse the dues owed to MSMEs.
‘Despite the severe economic problems that the state of Andhra Pradesh
has been facing our CM has taken a major decision to finally release the
dues to MSMEs which have been pending much before our government took
charge’ said the Industry’s minister at a press conference in Department
of Roads and Buildings in Vijayawada.
As per state authorities MSME arrears from 2014-2015 to 2018-2019
accounted to Rs.828 Crores and after the new government came into power
in 2019-2020 arrears for MSME’S(as been uploaded) stood at Rs 77 Crores
thereby totaling the dues to Rs.905 Crores. These amounts are said to be
cleared in two installments i.e. in the month of May and June 2020.
‘Andhra Pradesh is the first state to give assurance to MSME’S’ said the
Industry and IT minister.
“Despite the severe economic problems that the state of Andhra Pradesh has been facing our CM has taken a major decision to finally release the dues to MSMEs which have been pending long before our government took charge.”
AP’s Industry Minister, Mr Mekapati Goutham Reddy
In fact the chief minister has also ordered for the waiver of power
demand charges to the tune of Rs.188 Crores while grant the sector Rs
200 crores of low interest working capital.
With these decisions about 72,531 Micro industries,24,252 Small scale
Industries,645 medium scale industries all in all more than 97,000
MSME’S will benefit.
The government has also decided to defer the minimum demand charges on
electricity while waive penalties and additional charges for heavy
industries like textiles.
As per authorities steps are being taken to clear arrears of Rs.1088
Crores which is for the initiatives of textile industries.
Goutham Reddy said that his government shall take steps for betterment
of textile and other heavy industrial sectors too.
For the month of April, May and June minimum demand fare for textile and
major industry has been postponed.