VIJAYAWADA: Asserting that Chief Minister YS Jagan Mohan Reddy is keen on extending all support to micro, small and medium enterprises, Industries and Commerce Minister Mekapati Goutham Reddy informed that guidelines have been prepared for releasing Rs 905 crore aid announced by the State government to MSMEs two weeks ago.
Speaking to mediapersons at the Secretariat on Thursday, he said that besides the aid of Rs 905 crore, the government also took a decision to waive Rs 128 crore minimum demand charges of power to MSMEs for the first quarter of the current fiscal (April, May and June). The Chief Minister also announced provision of working capital to MSMEs by extending loans to the tune of Rs 200 crore, in partnership with SIDBI at a low interest rate post Covid-19 benefiting 97,000 units in the State.
The government had already initiated steps to implement the package announced by the Chief Minister and started receiving applications from entrepreneurs, he said. Welcoming the Centre’s announcement of providing Rs 3 lakh crore collateral-free loans to MSMEs, Goutham Reddy said clarity was yet to emerge over the package benefits to Andhra Pradesh, which has 97,000 MSMEs.
The minister felt that it would have been better if the Centre announced moratorium on loans and tax holiday to aid the industrial sector. Holding a review meeting with officials of the Information Technology department, the minister said comprehensive measures were being taken to keep the IT sector on track overcoming the odds induced by the outbreak of coronavirus.