State launches ‘ReStart’ to revive MSME sector

Jagan releases ₹450 crore towards first instalment of the ₹1,100-crore package

May 22, 2020 11:16 pm | Updated 11:16 pm IST - VIJAYAWADA

Chief Minister Y.S. Jagan Mohan Reddy launching ‘ReStart’ at his camp office at Tadepalli on Friday.

Chief Minister Y.S. Jagan Mohan Reddy launching ‘ReStart’ at his camp office at Tadepalli on Friday.

Chief Minister Y.S. Jagan Mohan Reddy has launched a new programme christened ‘ReStart’ to support the MSME sector in the State.

The programme is expected to benefit 98,000 units that provide employment to more than 10 lakh people. The government will spend ₹1,100 crore on revival of the sector.

Special fund

As part of the package, the Chief Minister released ₹450 crore towards the first instalment at a review meeting on Friday. In addition, a special fund of ₹200 crore would be created to provide input capital loan to the firms at low interest rates.

The initiative is aimed at putting the MSMEs back on track. The government has already announced that the minimum power demand charges of the MSMEs for the months of April, May and June, amounting to ₹188 crore, will be waived.

Mr. Jagan Mohan Reddy said the previous government did not pay industrial incentives worth nearly ₹828 crore to the MSMEs during the period 2014-2019.

In order to strengthen the sector, the government came up with a revival package, he said, and added that this was one sector that provided employment to the locals.

The Chief Minister further said that the government identified around 360 products to be purchased from the MSMEs, and payments towards it would be cleared in 45 days.

Of the total purchases, almost 25% would be done from the micro and small enterprises, 4% from the SC/ST community enterprises, and 3% from women entrepreneurs, he said.

Asking the district Collectors to lay special focus on the sector and assign a Joint Collector exclusively for its development, Mr. Jagan Mohan Reddy said that 97,428 MSMEs provide employment to about 10 lakh people.

Skill development

With this initiative, over 72,531 micro, 24,252 small and 645 medium industries would benefit, he said, adding, “Make a skill gap study with the industries and accordingly impart the required skill sets among youth through the Skill Development Colleges.”

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