Vijayawada

Andhra Pradesh launches YSR Navodayam scheme for stressed MSMEs

Y.S. Jagan Mohan Reddy

Y.S. Jagan Mohan Reddy  

more-in

50% auditors’ fee to be reimbursed under the scheme

Chief Minister Y.S. Jagan Mohan Reddy on Thursday launched ‘Dr. YSR Navodayam’ scheme, under which the State government will reimburse 50% (not exceeding ₹2 lakh per account) of the auditors’ fee for preparation of techno-economic viability reports required for One-Time Restructuring (OTR) of stressed loans of Micro, Small and Medium Enterprises (MSMEs) by banks and NBFCs as per the Reserve Bank of India (RBI) norms up to March 31, 2020.

Besides, the government will ensure that all eligible units are covered under the OTR scheme by conducting special coordination committee and special industries promotion committee meetings every month in all the districts and provide them hand-holding to avail themselves of the benefit.

Finance Minister Buggana Rajendranath Reddy, Chief Secretary L.V. Subrahmanyam, Principal Secretary (Industries and Commerce) Rajat Bhargava and others were present.

Addressing mediapersons later, Mr. Rajendranath Reddy said the State government had decided to provide support to MSMEs by reimbursing the auditors’ fee and facilitating the implementation of the OTR scheme keeping in view the liquidity crunch faced by them, the difficulty in raising working capital and adapting to technological advancements and in warding off competition from larger peers, including multinational corporations.

He said there were about one lakh MSMEs in the State in which ₹30,500 crore was invested and 11 nearly lakh people were employed.

He stressed the need to come to the rescue of MSMEs which have stressed loan accounts as their contribution to the national GDP stood at 8% , and 45% and 40% in manufacturing and exports respectively.

A majority of the MSMEs in Andhra Pradesh were into services, trade and commerce, food processing, minerals, building materials, drugs and pharmaceuticals and fabricated material businesses, he said, adding that the aggregate exposure, including non-fund based facilities, of banks and NBFCs to the borrowers (MSMEs) should not be more than ₹25 crore as on January 1, 2019.

Why you should pay for quality journalism - Click to know more

Related Topics Andhra Pradesh Vijayawada
Recommended for you
  1. Comments will be moderated by The Hindu editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

Printable version | Dec 7, 2019 11:13:54 AM | https://www.thehindu.com/news/cities/Vijayawada/ysr-navodayam-scheme-launched-for-stressed-msmes/article29729650.ece

Next Story