COVID-19: AP CM urges Centre to extend stimulus measures
In a 10-page letter to Prime Minister Narendra Modi,Reddy highlighted the contribution of different sectors to thestate and the national economy and sought specific incentivesto each of the sub-sectors, mainly the micro, small and mediumenterprises.
"Given the current pandemic, the manufacturing sector inthe state is in great peril and needs support in order tosustain itself and prosper in the long run.
In addition to piling up of inventory due to trade andexport restriction, the absence of the workforce has also hitthe industry very hard.
While all the markets are shut down, the uncertaintyaround future demand looms over the sector," the CM pointedout.
Exports from AP crossed Rs 98,983 crore in the 2018-19financial year, with major items being pharmaceuticals,textiles, processed food, aqua products and electronic items,apart from engineering goods.
"Due to the current lockdown the world over, many of theindustries in Andhra Pradesh are not able to export.
I would like to reiterate that the impact on MSMEs islikely to have a cascading effect across the value chain evenafter the lockdown restrictions have been eased owing toglobal slowdown in demand," Reddy noted.
He sought creation of a 'fund of funds' for supportingMSMEs in terms of additional liquidity to meet their wageliabilities during the shutdown.
He also wanted extension of interest-free working capitalterm loans to the exporters to cover the cost of wages, rent,and utilities.
Additional duty drawback of at least two per cent on allexports made during the period of April 1 to September 30,2020, should be extended.
Referring to the agriculture and allied sectors, theChief Minister said more than 20 per cent of state GDP camefrom it as it had over 3,000 food processing units,commodity-based cluster projects, mega food parks, MultipleAgriculture Export Zones and cold chain-relatedinfrastructure.
He wanted the Centre to defer GST, electricity chargesand duties, provide short-term collateral-free loans andresume export of aqua products to US, EU and Asia quickly.
He also requested the Centre to create warehousing andcold storage infrastructure at ports with special qualitytesting infrastructure and target new markets for exports thatcould fetch higher prices for our produce.
Reddy sought immediate release of funds for projectsunder the National Infrastructure Pipeline (Rs 102 trillion)and announcement of stimulus/revival packages for strategicsectors like real-estate.
For the automobile sector, he wanted the centralgovernment to extend GST rate cuts for new vehicles.
"The automotive sector has already been facing weakdemand for the past one year.
The shutdown due to the pandemic has exacerbated itsproblem and will significantly impact the sector," the ChiefMinister pointed out.
He wanted the Centre to extend BS-VI deadline by sixmonths and also defer GST payments for the sector to boostliquidity. DBVROH ROH