It’s Sanjeevani during the crisis: MSMEs

VIJAYAWADA: When they received ‘money is  credited’ SMSes in their mobile phones following the release of Rs 450 crore by the government towards the first installment of pending incentives to Micro, Small and Medium Enterprises (MSMEs) in the State on Friday, managements of the units heaved a sigh of relief. They hailed the “timely action” of Chief Minister YS Jagan Mohan Reddy and said it would help them overcome the COVID-19 blues and revive their industries.

“The decision of the Chief Minister is most welcome as it comes at a time when we lost all hopes on reopening industries because of the precarious finances in the wake of the lockdown. The money we got from the government will definitely come in handy for clearing wages to staff and procuring raw materials,” an entrepreneur said.

Speaking to TNIE, M Nandan Reddy, Director of Triovision Composite Technologies Pvt Limited based in Kopparthi Mega Industrial Park in Kadapa district, felt that the clearance of incentives as well as the waiver of minimum power demand charges at these odd times gave a big boost to the entrepreneurs.

The company manufactures parts for metro trains, amusement parks and modern traffic booths recently launched in Bangalore to protect policemen from pollution.

“I got Rs 23 lakh towards incentives and Rs 1.50 lakh benefit with the waiver of minimum power demand charges for three months (Rs 50,000 per month). This will enable me pay wages to staff and pay my loan EMI. Though the Centre announced a moratorium on loan EMIs, bankers continue to exert pressure on us. Thus, the release of incentives make us stand on our own feet instead of depending on others,” he said.

Nandan Reddy suggested that the government study the possibilities of marketing facilities to help the MSMEs.

Another entrepreneur, M Vasudeva Rao, who owns a firm in Kantakapalle Industrial Estate in Vizianagaram district, said, “By hook or crook, we have to run the industry and the timely release of funds definitely a good sign and we are thankful to the government.”

At the same breath, he said that it would be better if banks levy low interest on loans. “Interest rates for MSMEs range from 10 to 12 per cent and it will be helpful if the banks provide loans at 8 per cent interest,  as in the case of housing loans,” he felt.

Describing the release of incentives at the difficult times  as “Sanjeevani”, Elite Aptronix (which makes ceiling fan) owner Yesu Padam alias Sudhakar from Nuzvid said he got over 50 lakh and that it would help him increase production.