Andhra Pradesh to Provide ₹100 Crore Credit Guarantee for MSMEs

In a significant move to support Micro, Small, and Medium Enterprises (MSMEs), the Andhra Pradesh government announced a ₹100 crore credit guarantee to strengthen the sector. Chief Minister N. Chandrababu Naidu emphasized the crucial role MSMEs play in generating employment for the youth and stressed that the state government is committed to giving them the highest priority.

Chairing a review meeting on MSMEs and the Department of Food Processing at the State Secretariat on Thursday, Naidu directed officials to interlink Development of Women and Children in Rural Areas (DWCRA) groups with MSMEs. He also urged them to expedite the release of pending incentives for industries, ensuring that long-overdue financial aid is disbursed promptly.

To modernize Auto Nagars and make them future-ready, the Chief Minister called for the integration of services for electric vehicles. Additionally, Naidu announced that the state would allocate ₹100 crore as part of a credit guarantee scheme for MSMEs, a step expected to ease credit access for small businesses and boost their growth.

The Chief Minister pointed out that the MSME sector, despite facing several challenges, holds immense potential if supported by the right policies. He assured that the MSME parks that have been delayed will be completed soon, equipped with all the necessary facilities to foster growth and innovation.

Naidu also emphasized the involvement of farmers in setting up MSME parks in specific regions. He explained that farmers who own land could benefit by establishing MSME parks, following the model already implemented in Amaravati. Officials were instructed to take the initiative and encourage farmers to participate in these projects.

Furthermore, the Chief Minister noted a similar system being implemented in Pune and asked officials to study the policy for possible implementation in Andhra Pradesh. Naidu also underlined the need for a policy where automatic approvals are granted for setting up MSMEs if there are delays in obtaining permissions.

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