The State Government of Andhra Pradesh in its gazette notification dated 15th May 2020 has decided to extend certain incentives to the Industries especially to MSMEs to start their operations smoothly. The Major component of this stimulus package is to release the pending incentive of Rs.904.89 to 11,238 MSMEs and their allied units in two phases as per seriatum within 2 months.
The other incentive measures provided to the industries include waiver of the fixed /demand charges against contracted maximum demand for MSME allied units for a period of 3 months and provision for working capital loan of Rs.2.00 Lakhs to Rs.10.00 Lakhs to be provided to MSMEs at 6% – 8% interest rate plus a processing fee of 0.25 %.
Further, all Government entities shall procure at least 25% of their annual requirements of goods and services from the eligible Micro and Small Enterprises. The Deferment of fixed /demand charges against contracted maximum demand for Large and Mega Units for 3 months to all Large and Mega Industries without interest or penal charges from April 2020 to June 2020 is also allowed.
Click here to read the Notification.
