Andhra Pradesh Cabinet Approves ₹5,000 Crore for MSME Sector

September 19, 2024

The Andhra Pradesh Cabinet has approved a ₹5,000 crore fund to help small businesses, aiming to create 2 million jobs over the next five years. This ₹5,000 crore fund is designed to support Micro, Small, and Medium Enterprises (MSMEs), helping them grow and reducing their need for regular loans from banks. The money will be provided through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). This makes it easier for small businesses to get financial help, allowing them to expand and create jobs.

Using Central Government Schemes

The state government plans to combine state and central government programs to give the most benefit to local industries. By aligning different schemes, they hope to boost the economy faster and more efficiently.

One of the main goals of this initiative is to create 2 million (20 lakh) jobs within five years. This effort is part of a larger strategy to increase job opportunities and boost the state’s economy.

The Cabinet noted that many village and ward secretariat volunteers did not have their jobs extended by the previous government. Over 1.1 lakh volunteers have already resigned.

New Proposals from the Cabinet

The Cabinet made several important proposals:

Changing the Name of Bhogapuram International Airport: They want to rename the airport after Alluri Sitharama Raju, a freedom fighter.

Student Health Tracking: They plan to track the health of students by giving each student an ‘APAAR ID’ to maintain their health records.

Ex-Servicemen Corporation: The Cabinet decided to set up a corporation to help ex-servicemen, starting with an ₹10 crore fund.

Support for Education and Farmers

The Cabinet permitted SRM University to apply for ‘Deemed to be University’ status. They also approved tenant farmers’ cards, which allow farmers to take loans from banks without needing permission from the landowners.

Infrastructure and Water Management

The government is committed to finishing the Polavaram irrigation project in 2.5 years and ensuring the current contractor stays on the job. They also ordered the Water Resources Department to make sure there’s enough water for farming in Rayalaseema by using the state’s reservoirs.

Finally, the Cabinet decided to push for 33% reservation for Backward Classes in legislative bodies, aiming to give them more representation and support in politics.

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