The much-touted industrial incentives for the MSMEs worth Rs 450 crore are still a distant dream for the industrialists in Andhra Pradesh. Though CM YS Jagan Mohan Reddy has pompously announced that the money was already deposited into the accounts of the beneficiaries on September 3 itself , the money has not been deposited into the accounts of the MSMEs as on September 7.
While the officers are giving several excuses, it is being unofficially admitted that there are no funds to be released. The State Government had initially promised the incentives on August 26. But, the funds were not released. Even in September, there is no clarity on when the funds would be released. The MSMEs are eagerly waiting for the funds to be released so that they could pay the instalments of the bank loans they secured.
Even these funds came with a rider. The MSMEs would be entitled to get the incentives only if they pay their power bills. To become eligible, most MSMEs, which were badly hit by Covid, have paid up power bills worth Rs 70000 to Rs 10 lakh by securing loans from non-bank lenders. A majority of the MSMEs began three years ago. Soon after they were launched, they had to face problems because of the Covid lockdown. As a result, these MSMEs are currently in deep crisis.
Jagan government, which is focusing only on the vote-getting welfare schemes, is being accused of giving the MSMEs a short-shrift. The industrial units, which are facing a tough time, are in their last gasp and are waiting for the AP Government’s assurance to become a reality. But, that still appears to be a mirage for the MSMEs.
Better give 50% subsidy for electricity for a year also.