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Andhra CM releases 2nd installment of Rs 512 crore to MSMEs, spinning mills to be focus next

The state government had released the first installment of Rs 450 crore in May this year during the lockdown.

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Last Updated: Jun 30, 2020, 09.05 AM IST
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Besides clearing the dues, Andhra state government also waived the fixed three-month electricity charges worth Rs 188 crore from April to June.
(This story originally appeared in on Jun 30, 2020)
VIJAYWADA: Chief Minister Y S Jaganmohan Reddy released Rs 512.35 crore to MSMEs as the second installment of the total Rs 1,168 crore restart package to handhold the sector.

During a video conference with district collectors, the CM said there is a need for the state to handhold the MSME sector, which has 97,428 units of which 24,252 are micro units providing employment to 10 lakh people.

The government had released the first installment of Rs 450 crore in May this year during the lockdown. He said the government has to pay Rs 827.5 crore dues to the MSME sector, which has been kept pending by the previous TDP government.

Besides clearing the dues, the government also waived the fixed three-month electricity charges worth Rs 188 crore from April to June. He said the government was also providing working capital from the State Investment Corporation to the MSMEs ranging from Rs 2 lakh to Rs 10 lakh. He told the MSMEs that the government has placed a joint collector in charge of the sector.

"These apart we are giving six-month moratorium and have fixed the term to three years. The state will purchase 25% of the 360 varieties of goods produced by MSMEs of which 4% will be from MSMEs run by SCs and 3% from units run by women. The bills will be cleared within 45 days," the chief minister said.

The chief minister announced that focus would be shifted to the spinning mills from the next year. "The previous government did not pay investment incentives to industries to a tune of Rs 4,000 crore. Despite the financial constraints we have cleared Rs 827 core subsidy dues by the TDP government," Jaganmohan Reddy added.

"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," he added.

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