AP MSMEs Seek Early Release Of Rs 10,000-Cr Pending Incentives

Pending incentives should be cleared immediately as a goodwill gesture to boost the sagging morale of the entrepreneurs - Naresh Kumar, CEO, Symbiosys Technologies

Visakhapatnam: While hailing the policy framework announced for Micro, Small and Medium Enterprises (MSMEs) by the Andhra Pradesh Government, several entrepreneurs have emphasised the need for timely release of incentives promised so as to help them meet their financial needs without forcing them to run from pillar to post to source funds.

Some of the successful entrepreneurs with whom Bizz Buzz interacted are of the view that speed of doing business will be a reality if instead of incentives, the government considers giving them instant reimbursement/cuts, while collecting power bills or State GST. It is of no use like delayed justice tantamount to justice denied if payment of incentives is delayed perennially, they feel.

Vizag Development Forum vice-president and Symbiosys Technologies CEO Naresh Kumar said that since incentives to MSMEs totaling Rs 10,000 crore have been pending since 2018 in Andhra Pradesh, the amount should be cleared immediately as a goodwill gesture to boost the sagging morale of the entrepreneurs and hoped that the new government will introduce deadlines for release of incentives promised in the new policy framework. He himself filed a case in the court on getting incentives promised for employment in the past, but despite favourable orders, the authorities have not yet released the amount. Naresh Kumar pointed out that besides incentives to MSMEs, pending bills to contractors and suppliers are estimated at over Rs1.5 lakh crore. The interest on it will be at least Rs15,000 crore per year. At that rate, they might have lost Rs75,000 crore in bank interest alone on delayed payments. He said business credit rating has been downgraded at a time when the cost of loans has gone up. High cost of doing business such as spiralling fuel costs, power tariff and property taxes should be reduced. Visakhapatnam Stevedores’ Association president G Sambasiva Rao was of the opinion that personally he is against financial incentives. Instead of the conventional system, let the government give direct benefit by reducing taxes/power tariff to those who perform well by creating jobs and grounding the projects on time.

AP MSME Industries Association general secretary MS Ramachandra Rao said the State Government should take the initiative to release the incentives on time after broadening the definition of MSMEs. He welcomed the extension of industrial policy to include MSMEs and entrepreneurs.

“The government wants to establish one industrial estate for every Assembly segment and bring one entrepreneur from every home. The government has announced many initiatives such as ideation assistance, trade related assistance, technical knowhow centres, global market linkages to 500 best MSMEs, seed capital incentive, local procurement policy, energy conservation, skill development for increasing the employment of local workforce,” he stated.

CII MSME State Committee convener AK Balaji said Odisha as a policy to release incentives to MSMEs within 15 days of fulfilling the criterion set by the government. Balaji, national executive member of Laghu Udyog Bharati, said while finalising the guidelines for the MSME policy, the government should emulate all the good features policies under implementation in top-performing States.

Vijayanagar Biotech Limited Chairman D Tirupathi Raju said the incentives promised should be adjusted against payment of power tariff bills and State GST to enable MSMEs to meet their financial commitments in a hassle-free manner.