AP CM YS Jagan Releases Rs 548 Crore For MSMEs To Clear TDP Regime's Dues

AMARAVATI: In a major relief to Medium and Small scale Enterprises, Andhra Pradesh Chief Minister YS Jagan Mohan Reddy extended the waiver of fixed electricity charges for MSMEs for the months of April, May and June as well. The decision was taken keeping in view the COVID-19 crisis. The chief minister on Monday released Rs 512 crore to support the MSMEs in the state during the COVID-19 crisis. The funds were released during a videoconference the chief minister chaired at his CM camp office in Tadepalli.

The state government has released these funds as part of the second phase of financial incentives for supporting the MSMEs which were facing tough times due to lack of production and demand during this lockdown period. As part of the 'restart' package, the state government is providing Rs 1,168 crores out of which Rs 450 crores were released in May while the remaining Rs 512 crore funds were released on Monday.

The previous government failed to release funds worth Rs 827.5 crore which were needed to be paid to nearly one lakh MSMEs for 2014-15. After coming to power, the YSR Congress Party government led by YS Jagan Mohan Reddy has announced that the dues kept pending by the previous government besides this year's supportive funds of Rs. 962.62  crore would be cleared.

As promised, the CM released Rs. 450.27 crore in May in first phase.

Speaking on the occasion, Chief Minister YS Jagan Mohan Reddy emphasised on the need to support MSMEs and said that they would provide employment opportunities to several people.

The MSME is the second sector which provides maximum employment to people after agriculture, said the CM.

YS Jagan said that the previous government had kept Rs 800 crores of dues pending and Now YSRCP has cleared that. 

The CM said that the government would offer investment loans ranging from Rs. 2 lakh to 10 lakh with minimal interest.

He said that the government had declared a six-month holiday to MSMEs from loan repayments and consequently loans can be paid within three years. YS Jagan added that Rs 1,000 crore dues relating to spinning mills will be paid over the next year.