A.P. Chambers seeks CM’s intervention for release of ₹5,000 crore of industrial incentives

Andhra Pradesh Chambers of Commerce and Industry Federation (A.P. Chambers) appealed to Chief Minister N. Chandrababu Naidu to intervene and ensure the early release of approximately ₹5,000 crore of pending incentives payable to eligible Micro, Small and Medium Enterprises (MSMEs) and food processing industries.

In a representation submitted on Thursday, A.P. Chambers president Potluri Bhaskara Rao urged the government to settle all pending claims in a single, consolidated exercise, preferably by the first week of November 2026, noting that the Chief Minister’s intervention at this stage would provide immediate relief to businesses. 

He stated that although nearly ₹1,000 crore was released during the previous year, a substantial amount remained outstanding and the prolonged delay placed significant pressure on the working capital of enterprises, their ability to service loans and meet operational expenses, and their capacity to sustain business activity and employment. 

Mr. Bhaskara Rao observed that for many MSMEs, timely receipt of approved incentives was critical to maintaining cash flow and continuing operations, and emphasised that the release of pending incentives would inject the much-needed liquidity into the industrial ecosystem, help enterprises meet financial commitments, encourage investment in food processing, and support farmer - market linkages and safeguard employment. 

The Chambers also called for a transparent, time-bound mechanism to process and settle future incentive claims, with clear timelines and regular monitoring, so that such arrears do not accumulate again. 

With the CII Partnership Summit scheduled to be held in Visakhapatnam on November 12 and 13, A.P. Chambers said that clearing the pending dues would send a strong signal to investors, and demonstrate the government’s commitment to implementing its industrial policies, honouring eligible commitments and creating a predictable business environment in the State.

Published - October 29, 2026 07:43 pm IST