CM urged to clear Rs 5,000 cr pending sops for MSMEs

Vijayawada: AP Chambers appealed to Chief Minister N Chandrababu Naidu to personally intervene and ensure the early release of approximately Rs 5,000 crore in pending incentives to eligible micro, small and medium enterprises (MSMEs) and food processing industries across the State.

In a representation submitted on Thursday, AP Chambers president Potluri Bhaskara Rao urged the government to settle all eligible pending claims in a single, consolidated exercise, preferably by the first week of November 2026. He said the timely release of incentives would provide much-needed relief to businesses that had been waiting for nearly two years for the promised support.

Although around Rs 1,000 crore was released during the previous year, a substantial amount remains outstanding.

The prolonged delay has put considerable pressure on the working capital of enterprises, affecting their ability to repay loans, meet operational expenses, sustain business activities and protect employment, the Chamber said.

AP Chambers said that clearing the dues would inject much-needed liquidity into the industrial sector, help enterprises meet financial commitments, encourage investment in food processing, strengthen farmer-market linkages and safeguard jobs.

The Chamber also called for a transparent, time-bound mechanism to process future incentive claims, with clearly defined deadlines and regular monitoring to prevent the accumulation of arrears. With the CII Partnership Summit scheduled to be held in Visakhapatnam on November 12 and 13, AP Chambers said clearing the pending incentives would send a positive signal to investors. It would demonstrate the government’s commitment to implementing industrial policies, honouring eligible commitments and maintaining a predictable business environment in Andhra Pradesh.

While appreciating the State government’s efforts to promote industrial development and attract investments, Bhaskara Rao urged the Chief Minister to accord the issue priority and facilitate the early release of all eligible pending incentives. He expressed confidence that prompt action would restore industry confidence, provide meaningful relief to MSMEs and strengthen the State’s investment climate.

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