ReSTART Package for MSME

ReSTART Package for MSME

Amidst the financial crisis being faced by the industries due to the ongoing pandemic, the Government of Andhra Pradesh has launched a revival package called ‘ReSTART Package. The key objective of this package is to strengthen the Micro, Small & Medium Enterprises (MSME) sector and enable them to ReSTART their operations. This package provides certain financial benefits to the MSME and large units located in Andhra Pradesh. The current article briefly describes the ReSTART Package for MSME.

Objective of ReSTART Package for MSME

The initiative is aimed at putting the Micro, Small & Medium Enterprises (MSME) sector back on track and to provide employment to the locals, the Government of Andhra Pradesh launched this revival package.

Special Fund

As part of the ReSTART package, the Government has released Rs. 450 crore towards the first instalment. Besides, a special fund of Rs.200 crore released to provide input capital loans to the firms at low-interest rates.

Features of ReSTART Package

Using this ReSTART Package, almost 1 lakh Industries including MSME in the state will provide 10 lakh employment benefits. To provide the necessary support, the Government has extended the following package across industrial sectors.

Empowerment SC/ST/Women Entrepreneurs

This ReSTART Package will provide a fillip to special Category entrepreneur including SC, ST, and Women Entrepreneurs

Releasing of pending incentives sanctioned from 2014-2015

The government also notified that pending incentives released from 2014- 2015 for all MSME units, amounting to NRI capitals Rs.904.89 crore will be released

Waiver of fixed/demand charges

Andhra Pradesh Government will waive the fixed or demand charges against contracted maximum demand for MSME manufacturing and allied units for 3 months

Deferment of fixed/Demand Charges

The government will defer fixed/demand charges against contracted maximum demand for 3 months to Large and Mega Industries without interest or panel charges

Low-Interest working capital loans

As part of the ReSTART Package, the Government will provide Rs.200 crore working capital fund for loans to Micro and Small Enterprise. As part of this initiative, 2-10 lakh MSME will get the benefit. The interest rate for this loan is captured at very low 6 to 8% and the entrepreneur needs to repay the loan amount within 3 years including moratorium through Andhra Pradesh State Financial Corporation.

Preferential market access to MSEs

To improve the marketability of MSME, Government is providing preferential market access to Micro and Small Enterprise in all government procurements.

As part of this initiative, procurement of 25% of the annual requirements of all goods or services by value from MSEs, of which 4% reserved for SC/ST entrepreneur and 3% for women entrepreneurs.

Collateral- free automatic loans for MSME

MSMEs which have been badly hit due to COVID 19 needs additional funding to meet operational liabilities and restart the business. Considering this, the Government of Andhra Pradesh is providing Collateral- free automatic loans for MSME. MSME can get an emergency credit line to MSMEs from banks and NBFC’s upto 20% of the entire outstanding credit as on 29.02.2020

  • MSME Borrowers with up to Rs.25 crore outstanding and Rs.100 crore turnover eligible
  • Loans to have four-year tenure with a moratorium on 12 months of principal repayment
  • Interest to be capped
  • 100% credit guarantee cover to banks and NBFC’s on principle and interest.
  • The scheme can be availed till 31st OCT 2020
  • No guarantee fee, no fresh collaterals for such loans

Subordinate Debt for Stressed MSE

As part of the ReSTART Package, Government also providing Subordinate Debt for Stressed MSME:

Functioning MSME’s which are NPA or stressed will be eligible for this scheme, the Supporting under this scheme is provided through credit guarantee trust for Micro or Small Enterprises (CGTMSE). Credit guarantee trust for Micro or Small Enterprises will provide partial credit support guarantee to banks. Subordinate debt will be issued to promoters of MSME’s by banks equal to 15% of the existing stake in the firm subject to a maximum of Rs.75 lakh

Eligibility Criteria for ReSTART Package

The eligibility criteria to obtain the ReSTART Package are as follows:

  • All MSME which was functional just before the lockdown i.e. before February 2020 and previously will be eligible to avail the benefits under ReSTART
  • Large / Mega Units which were functional before the lockdown i.e. before February 2020 and previously also eligible to avail the benefits under ReSTART
  • Seasonal units which or operational during such specific seasons during the financial year 2019-20 will also be eligible.
  • The manufacturing and allied units under the above category will be eligible.

Mandatory Documents for ReSTART Package

The documents required to obtain the ReSTART Package is as follows:

  • IEM Part-B (For Large / Mega Units)
  • UAM /EM Part II Acknowledgement for MSMEs
  • Power Consumption Bills for the last four months (Oct’19 to Jan’20
  • GST certificate (where applicable)
  • PAN card
  • AADHAR card

Processing Fee

The eligible entities are not required to pay any fee for applying of ReSTART package.

ReSTART PACKAGE – Application for Eligibility Certificate

The entrepreneur needs to access the official website of Industries ReSTART Package, Department of Industries, Government of Andhra Pradesh.

ReSTART Package for MSME - Home Page
ReSTART Package for MSME – Home Page

Entrepreneur – Login

Existing Entrepreneur can select ‘YES’ against the Question and log in using existing SDP User ID and Password.

ReSTART Package for MSME - Home Page2
ReSTART Package for MSME – Home Page2

New Entrepreneur needs to select ‘NO’ against the Question, the link will redirect to Registration Provide all details in the Single Desk Registration. After successful registration, login credentials will be sent to the registered mobile number and log in using SDP credentials.

ReSTART Package for MSME - User Registration
ReSTART Package for MSME – User Registration

After login to the portal, click on the “Add industry details” and provide the following details:

Enterprise details

Furnish the enterprise details such as the basic details of the entrepreneur like (Pan, Aadhaar, E-mail, Phone number, etc.)

Sector & Investment details

Provide the industry details like (Investment, Sector, GST no, Location the industry, etc.)

Power details

The Power details – category, Service connection number, and Source of Power and Fixed demand charges. Upload the power bills of the latest four months and enter the fixed demand charges for the contracted maximum demand per month

Bank details

The bank details such as IFC code, Bank Name, Branch details and Type of account

After furnishing all details, review the details filled in earlier steps and click on the declaration to Submit. Enter the OTP received on the mobile number and email ID

Get Unique Id and Acknowledgement Letter

A unique id (Parishram Aadhaar ID) and Acknowledgment Letter will be generated for tracking purposes.

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Post by Renu Suresh

Renu is experience content writer specialised in compliances and company rules.