Jagan Releases Second Tranche For MSMEs, Focus will be on spinning mills next year

Amaravati, June 29: Andhra Pradesh Chief Minister YS Jagan Mohan Reddy has released Rs 512.35 crore to MSMEs as the second tranche of the Rs 1,168 crore ReStart package to handhold the sector and said that in the next year the Government will focus on spinning mills.

During a video conference with the district collectors while releasing the second instalment of the ReStart package to MSME sector, the Chief Minister said that there is every need for the State to handhold the MSME sector which has 97,428 units of which 24,252 are micro units and they are providing employment to about 10 lakh people.

As promised we have released the first tranche of Rs 450 crores in May and now we are releasing Rs 512.35 crores to give a fillip to the sector as the previous government did not clear investment dues worth over Rs 827.5 crores which we have cleared, he said adding that MSMEs are considered to be second largest employment provider after agriculture.

The fixed power charges for three months, April, May and June are waived which work out to Rs 188 crores besides providing soft loans from State Investment Corporation ranging from Rs 2 to Rs 10 lakhs towards working capital with interest ranging from 6 to 8 percent to give boost to the MSME sector, he said. A Joint Collector will be made in-charge of the MSME sector.

This apart we are giving six month moratorium and have fixed the term to three years. The State will purchase 25 % of the 360 types of goods produced by MSMEs of which 4 per cent will be from MSMEs run by SCs and 3 per cent from units run by women. The bills will be cleared within 45 days, he said. The district collectors should encourage them and cooperate to ensure that they are not pushed into despair.

In the next year the focus will shift to spinning mills. The previous government did not pay the investment incentives to industries to a tune of Rs 4,000 crores. Despite the financial constraints we have cleared Rs 827 cores uncleared subsidies by the previous government.

We plan to give a Rs 1,000 crore package to spinning mills next year and in the following year will focus on other sector. These measures are to bring back the credibility of the State, the Chief Minister said.
The beneficiaries who interacted with the Chief Minister expressed their gratitude to the Chief Minister and said that the amount released will be a big booster for the running of their units.

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