From Our Correspondent
Amaravati: The Andhra Pradesh government has decided to release ₹1,030.95 crore towards pending industrial incentives that were halted during the previous YSRCP regime. Officials have given in-principle approval to clear the long-pending dues under various industrial promotion schemes, calling it a “Diwali gift” for the state’s entrepreneurs.
The previous government had suspended industrial incentives under its policy framework, causing financial distress to several micro, small, medium, and large industries. The new coalition government has now prepared proposals to disburse the pending payments to MSMEs, large, and mega units to revive industrial confidence and liquidity.
Incentives for Bus Units
The government has also decided to extend incentives to bus units distributed under the previous “Jagananna Badugu Vikasam” scheme, which offered buses to SC and ST entrepreneurs for operation under APSRTC.
Following allegations of a ₹100 crore fake invoice scam, the Dalit Industries Association lodged a complaint, prompting the Industries Department to seek details from dealers regarding the rebates and discounts offered on 426 buses sanctioned under the scheme. So far, information has been received for 310 buses, and incentives will be released for them. Payments for the remaining 116 buses, amounting to about ₹14 crore, will be cleared after receiving full documentation from dealers.
Relief for Textile Units
Textile entrepreneurs, who have been struggling due to delayed incentives, are also expected to benefit. Industry sources said the release of funds will provide much-needed breathing space for units facing liquidity constraints.
Guidelines for Disbursement
According to official sources, incentives will be released under the following conditions:
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MSME units that have completed six years of operation and large or mega industries that have completed eight years since production are eligible, even if they are currently closed or under new ownership.
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Incentives for buses distributed under the Badugu Vikasam scheme will be calculated based on dealer discounts and adjusted in future allocations.
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Cases involving prior dealer discounts will be placed before a State-Level Committee for approval.
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Units flagged with audit objections will receive payments only after clearance from the Audit Department.
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Units that changed bank accounts without NOC will also be eligible for payments after verification.
The move signals the Naidu government’s intent to restore industrial confidence, settle past dues, and boost the morale of entrepreneurs ahead of the upcoming investment summit in Visakhapatnam.