Andhra CM launches YSR Navodayam scheme to provide financial assistance to MSMEs

Andhra Pradesh Chief Minister YS Jagan Mohan Reddy on Thursday launched 'Dr YSR Navodayam' scheme. The scheme provides Rs 3,500 crores to about 85,000 MSMEs under One Time Restructuring. To execute the scheme effectively, the government has ordered to conduct meetings every month in the districts.

Amaravati: Andhra Pradesh Chief Minister YS Jagan Mohan Reddy on Thursday launched 'Dr YSR Navodayam' scheme which provides Rs 3,500 crores to about 85,000 MSMEs under One Time Restructuring (OTR).

'The scheme will benefit Micro, Small and Medium Enterprises (MSME) sectors in a big way,' state Finance Minister Buggana Rajendranath told media after the launch.

To execute the scheme effectively, the government has ordered to conduct meetings every month in the districts.

The Minister said that these meetings will be conducted under the chairmanship of the district collector and includes District Coordination Committee, District Industries Promotion Committee members, and the Bankers and their coordinators.

According to the Minister, the agenda of these monthly meetings is to individually identify the problems of MSMEs.

The government will support and monitor the implementation of Reserve Bank of India's (RBI) One Time Restructuring (OTR) of MSME loans so that all the eligible MSME units are covered for OTR of accounts up to March 31, 2020.

'MSMEs in the country contribute 8 per cent of the country's GDP. In Andhra Pradesh, we have 1,00,629 MSMEs with an investment of Rs 30,528 crore and employing 11 lakh people. About 85,070 MSME units are eligible for the OTR that is worth of Rs 3493 crores.

The Minister said that the MSME sector is the second-largest employment provider after agriculture in our country which is the reason why the Chief Minister has given it importance as it provides employment to youth.

'The previous government in 2014-15 released Rs 2000 crores on a selective basis while we are giving priority to those who are under OTR,' he said.

The government will reimburse 50 per cent up to a maximum of Rs 2 lakhs of the auditor's fee.

'MSMEs have to pay a huge amount of fee to the auditors for the preparation of Techno-Economic Viability (TEV) report. Under Dr. YSR Navodayam scheme the government will reimburse 50 per cent (not exceeding Rs 2 lakhs) of the fee amount,' said the Minister.