AP Chambers seeks release of ₹5,000 crore MSME incentives

The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has urged Chief Minister N. Chandrababu Naidu to release about ₹5,000 crore in pending incentives to eligible micro, small and medium enterprises (MSMEs) and food processing industries.

In a representation on Thursday, AP Chambers president Potluri Bhaskara Rao sought settlement of all eligible claims in a single exercise, preferably by the first week of November.

He said the incentives, pending for nearly two years, had strained enterprises’ working capital, loan repayment capacity and day-to-day operations. Though the government had released about ₹1,000 crore last year, a substantial amount remained outstanding, he said.

Timely release would improve liquidity, sustain operations, safeguard jobs, encourage investment in food processing and strengthen market linkages for farmers, Mr. Bhaskara Rao said.

The Chambers also sought a transparent, time-bound mechanism with regular monitoring to ensure prompt settlement of future claims and prevent arrears.

Referring to the CII Partnership Summit in Visakhapatnam on November 12 and 13, he said clearing the dues before the event would send a positive signal to investors about the government’s commitment to its industrial policies.