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AP’s CM Jagan Mohan Reddy launches Rs 1,110 crores ‘ReStart’  to revive MSME sector

AP govt launches ReStart to revive MSME sector

On May 22, 2020 Andhra Pradesh(AP)’s Chief Minister(CM) Y.S. Jagan Mohan Reddy has launched Rs 1,110 crores ‘ReStart’ a new programme to support & boost the Micro, Small and Medium Enterprise(MSME) sector in the State.

Major Highlights

This initiative will benefit over 72,531 micro-enterprises, 24,252 small and 645 medium scale industries. The state government will allocate Rs 200 crores as investment capital by providing loans in partnership with the Small Industries Development Bank of India (SIDBI) at a low-interest rate.

The package includes the following

Release of Rs 905 crores of pending incentives to MSME units in two months, waive fixed demand charges towards power for three months from April 20 to June 20 for MSMEs amounting to Rs 188 crores, provide Rs 200 crores working capital loans by creating a fund to meet their liquidity crisis.

Scheme

As part of this scheme, the 1st instalment of Rs 450 crores was released which will benefit nearly 98,000 units that provide employment to more than 10 lakh people who were facing hardships due to the lockdown.

Key Points

i.The state has identified around 360 products to be purchased from the MSMEs, and its payments will be cleared in 45 days.

ii.Of the total purchases, almost 25% will be done from the micro and small enterprises, 4% from the Scheduled Caste(SC) and Scheduled Tribes(ST) community enterprises, and 3% from women entrepreneurs. Over 97,428 MSMEs are established in the state which employs about 10 lakh workforce.

iii.The collectors are directed to make a skill gap study with the industries and accordingly impart the required skills among the youth through Skill Development Colleges & to lay special focus on the sector and assign a Joint Collector exclusively for its development.

About AP:

Capital– Amaravati
Governor– Biswa Bhusan Harichandan

About SIDBI:

Headquarters– Lucknow,  Uttar Pradesh
Chairman & Managing Director–  Mohammad Mustafa





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