The Andhra Pradesh government led by Chief Minister YS Jagamohan Reddy is set to launch outreach programme 'Navodayam' for thousands of ailing Micro, Small and Medium Enterprises (MSMEs) in the state, with a one-time restructuring of loans that will provide the required lifeline for small industrial units.
The state has been witnessing a surge in growth of MSMEs with over 10,068 units set up in 2018-19 with an investment of Rs 3,443 crore, providing employment to 93,240 people.
The state cabinet approved the scheme at its recent meeting and the Department of Industries and Commerce subsequently worked out the modalities to make Navodayam operational.
About 86,000 MSMEs in the state have been identified for restructuring under Navodayam with an outlay of Rs 3,900 crore, sources in the Department of Industries and Commerce said.
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 the required financial resources for the project.
Two sub-SLBC meetings have also been held with bankers in the state for getting the NPA accounts of MSMEs restructured so that the respective accounts are brought back to 'standard' level, the sources said.