People’s purchasing power holds key: CM

Taking a dig at the previous TDP regime, he said a huge hype was created by holding big summits and signing pacts even before they became a reality.

Published: 04th September 2021 08:56 AM  |   Last Updated: 04th September 2021 08:56 AM   |  A+A-

By Express News Service

VIJAYAWADA:  Releasing Rs 1,124 crore industrial incentives to MSMEs and textile units in the State on Friday, Chief Minister YS Jagan Mohan Reddy said lending a helping hand to the industry sector, especially MSMEs, will help stabilise the State’s economy, which was hit during the Covid-19 pandemic.

Addressing beneficiaries of the ReSTART package under which incentives to MSMEs were provided, he said only when the purchasing power of people is improved can they buy products from industries.“The government has been implementing a plethora of welfare schemes and development programmes for the last 27 months to ensure the purchasing power of people in the State, particularly of those in the lower level, is increased to sustain the industries,” he said. 

Elaborating further, he said the very cycle of production will be hit if people do not have enough purchasing power and industries would be shut due to lack of demand. To ensure that the purchasing power of people is not affected, 25 welfare and development initiatives like YSR Rythu Bharosa, YSR Cheyutha, YSR Aasara,  Amma Vodi, Jagananna Vidya Deevena, Jagananna Vasathi Deevena and Jagananna Thodu are being effectively implemented in the State giving no scope for corruption or discrimination, he asserted. 

“Every beneficiary is being provided funds through the Direct Benefit Transfer system, so that lakhs of families in the State can sustain during hard times. These in turn have helped in stabilising the MSME sector, which ensured that jobs are not lost. Even in the times of crisis, when the global economy growth is -5.2%, efforts are being made to protect farmers, industries and people, especially poor in the State. Though small, our growth rate is better than others due to the initiatives of the government.” Jagan explained.   

At the time of economic slowdown globally due to the Covid-19 pandemic, when the demand for commodities and services is on the decline, there is a need for protecting the interests of both people and the industry, he stressed.Quoting international economists, the Chief Minister said in the times of crisis, when the government provides funds to the poor, even if it has to borrow, that money will be like ‘Sanjeevini’ to any State or country.  

He lashed out at TDP and a section of media for their unwarranted criticism of State’s borrowings, negatively projecting the efforts of the government to help the poor and stabilise the economy of the State.Heaping praise on the MSME sector, the Chief Minister said 97,423 entrepreneurs are not only striving to develop themselves by setting up micro, small and medium enterprises, but also ensuring jobs to over 12 lakh people in the State. 

“By protecting these units and creating confidence among them that once the government promises, it fulfils the same, will be nothing short of improving credibility of the State and building confidence in the prospective investors,” he explained. 

Taking a dig at the previous TDP regime, he said a huge hype was created by holding big summits and signing pacts even before they became a reality. “Unlike the previous regime, our government is sincere and going about its job without any publicity. The industries coming to the State are visible and jobs created are there for everyone to see. To ensure industries come to the State, a conducive environment is needed and confidence has to be created among investors and our government is progressing in that direction,” Jagan elaborated. 

Stating that the government has provided incentives of Rs 2,086.42 crore to these sectors so far, Jagan said they also included the incentives promised by the previous TDP regime pending since 2015, which amounted to Rs 1,588 crore (MSMEs - Rs 904 crore and spinning mills - Rs 684 crore). 

The Chief Minister said in the last 27 months, 68 major industries have invested a capital of Rs 30,175 crore and provided direct employment to 46,199 people. In addition, by investing Rs 34,384 crore, another 62 mega industries are also being set up to provide employment to 76,916 people. A legislation was enacted to ensure 75% reservation in employment for locals in the new industries, he pointed out. 

“YSR Jagananna Mega Industrial Hub is being established in 3,155 acres at Kopparthi in Kadapa district to attract investments of Rs 25,000 crore and generate 75,000 jobs. Similarly, YSR Electronics Manufacturing Cluster is being set up in 801 acres at a cost of Rs 730.50 crore, anticipating an investment of Rs 10,000 crore and 30,000 jobs,” he said.

The government has laid emphasis on development of basic infrastructure, which is essential to set up industries.The government has planned to set up a 10,000 MW solar project by inviting investment of Rs 30,000 crore that produces power costing only Rs 2.48 per unit to provide free and quality electricity to farmers for another 30 years. “Some people went to court on the project and once the case is resolved, it will be implemented,” he said.

He also highlighted how Jagananna YSR Badugu Vikasam Policy, Kadapa steel plant,  three industrial corridors, three ports and nine fishing harbours will help the State’s economy in the coming days. He said they have operationalised the airport at Orvakal in Kurnool district and works on greenfield airport at Bhogapuram will  commence soon.

He also listed out MoUs signed with various multinational companies for women empowerment, ration door delivery system and secondary food processing units.The Chief Minister pointed out that AP topped the national survey on State Business Reform Action Plan and described it as an example of how much faith entrepreneurs have in the State government. 

Rs 1,124 cr incentives released to MSMEs

The State government released Rs 1,124 crore industrial incentives to MSMEs, textile and spinning mills as a measure to support them as they were badly affected by the Covid-19 pandemic

Rs 30,175 cr invested in 68 major industries

The Chief Minister said in the last 27 months, 68 major industries have invested a total capital of Rs 30,175 crore and provided direct employment to 46,199 people


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp