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CM Y S Jagan Mohan Reddy launches YSR Navodayam

CM Y S Jagan Mohan Reddy launches YSR Navodayam
Highlights

Chief Minister Y S Jagan Mohan Reddy on Thursday launched YSR Navodayam, a complete outreach programme for giving a lifeline to thousands of ailing micro, small and medium enterprises (MSMEs) in the state through a one-time restructuring of loans.

Amaravati: Chief Minister Y S Jagan Mohan Reddy on Thursday launched YSR Navodayam, a complete outreach programme for giving a lifeline to thousands of ailing micro, small and medium enterprises (MSMEs) in the state through a one-time restructuring of loans.

Finance minister Buggana Rajendranath Reddy, Chief Secretary L V Subrahmanyam, principal secretary (industries and investments) Rajat Bhargava, State Level Bankers Committee convenor K V Nancharaiah and other officials attended.

The Chief Minister handed over loan restructuring letters to some MSME owners on the occasion. About 86,000 MSMEs in the state have been identified for restructuring underNavodayamwith an outlay of Rs 3,900 crore, finance minister Rajendranath Reddy said.

In all there were over 1.06 lakh MSMEs in AP, employing about 11 lakh people. In 2018-19 alone, AP witnessed a surge in growth of MSMEs with the establishment of 10,068 units with an investment of Rs 3,443 crore and provision of employment to 93,240 people.

While the state government has earmarked Rs 50 crore in the 2019-20 budget for rejuvenation of MSMEs, the department of industries and commerce approached the Reserve Bank of India for mobilising required financial resources for the ambitious programme.

"Navodayam will provide a lifeline to stressed MSMEs by ensuring that all eligible units are permitted for one-time restructuring of accounts up to March 31, 2020," the finance minister said. The state government incentives for MSMEs, which remained unpaid for several years now, would also be released on a priority basis to the units under the restructuring scheme, the minister said.

"MSMEs are generating maximum employment after agriculture, hence the state government is focusing on rejuvenating them. A new ecosystem is being created for the development of MSMEs," Rajendranath added. The finance minister said Navodayam would ensure infrastructure worth over Rs 3,900 crore did not turn into non-performing assets (NPAs).

UnderNavodayam, a special cell would be created in each District Industries Centre, headed by the General Manager, to provide handholding support to all restructured MSMEs for six months to stabilise their accounts.

Studies would also be conducted in all districts on sector-specific enterprises to identify key issues that need to be addressed and make the MSMEs robust, Rajendranath Reddy said.

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