29
Jul

Buy 20% construction materials from MSMEs: Chamber to govt – The New Indian Express

VIJAYAWADA: At a time when the State government embarked upon giving a fillip to Micro Small and Medium Enterprises (MSMEs) by setting up an exclusive corporation, industrialists are seeking more support from the government in terms of reducing electricity charges as well as ensuring purchase of at least 20 per cent of materials from MSMEs.

Aimed at generating more jobs, the government has introduced a policy for the promotion of MSMEs across the State and also decided to set up one MSME park in each of the 175 Assembly constituencies of the State.

Observing that MSME can provide more employment with less investment, the government expedited the process of identifying lands in all constituencies for MSMEs and has so far completed the process in about 100 constituencies.

However, despite welcoming the government move to set up a corporation along with a few incentives, industrialists are requesting the government to reduce power charge, which they claim, is high compared to other States.

Speaking to Express, Andhra Chamber of Commerce and Industry Federation (ACCIF) Executive Director Potluri Bhaskara Rao said that at present, while power charges range around `10 per unit in the State, the rate is much below `8 and even lower in other states like Karnataka. He further sought effective implementation of the Government Public Policy in which the government should purchase at least 20 per cent of material for development works of MSMEs and also clear bills within 45 days.

Stating that the policy has not been implemented either by the Centre or the State government so far, Bhaskar Rao said that as the State government has taken up construction works in the capital city, it should purchase 20 per cent of construction material from MSMEs mandatorily by enforcing the policy effectively.

When asked about greater reduction in power charges, an official of the industries department said that there is every chance of reducing the electricity charges in the near future as the State has surplus power. He added, “As CM  Chandrababu Naidu has directed officials to take measures for reducing electricity bills, the industry sector will also get relief.”

While power charges range around J10 per unit in AP, the rate is much below J8 and even lower in other states like Karnataka. The govt announced to slash the rate by  J1. But, we want it to slash it at least by J2
Potluri Bhaskara Rao, ACCIF executive director

Surplus power State now
When asked about greater reduction in power charges, an official of the industries department said that there is every chance of reducing the electricity charges in the near future as the State has surplus power.

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