AP Chambers Seeks Rs. 50 bn in Pending MSME Incentives

The Andhra Pradesh Chambers of Commerce & Industry Federation, known as AP Chambers, has appealed to Chief Minister N Chandrababu Naidu to intervene and expedite the release of approximately Rs. 50 bn in pending incentives for eligible micro, small and medium enterprises (MSMEs) and food-processing units across the state.

The industry body said the outstanding payments were placing pressure on enterprises’ working capital, loan-servicing capacity and ability to meet operational expenses. It added that delayed incentives were affecting businesses’ ability to sustain operations and employment, particularly among units that had already qualified for government support.

AP Chambers noted that approximately Rs. 10 bn had been released during the previous year, but a substantial amount remained unpaid. It said the timely disbursement of approved incentives was essential for maintaining cash flow and enabling MSMEs to continue their activities without further financial strain.

The organisation said clearing the dues would inject liquidity into Andhra Pradesh’s industrial ecosystem, help enterprises meet financial commitments and encourage fresh investment in food processing. It also said the payments would strengthen links between farmers and markets, while helping safeguard employment across the sector.

AP Chambers has additionally requested a transparent, time-bound mechanism for processing and settling future incentive claims, supported by clear timelines and regular monitoring to prevent arrears from accumulating. With the CII Partnership Summit scheduled in Visakhapatnam on November 12 and 13, the body said settling eligible dues before the event would reinforce investor confidence and demonstrate the government’s commitment to implementing industrial policies. It urged the chief minister to accord the matter the highest priority, saying prompt action would restore industry confidence, relieve MSMEs and strengthen the state’s investment climate.

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