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

The Federation of Andhra Pradesh Chambers of Commerce and Industry (AP Chambers) has appealed to Chief Minister N. Chandrababu Naidu to intervene and ensure the early release of around ₹5,000 crore of pending incentives payable to eligible micro, small and medium enterprises (MSMEs) and the food processing industry.

In a statement presented on Thursday, AP 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 said that although nearly ₹1,000 crore had been released during the previous year, a substantial amount remained outstanding and the prolonged delay had put considerable pressure on the working capital of businesses, their ability to provide credit and meet operating expenses, and their ability to sustain business and employment.

Mr. Bhaskara Rao noted that for many SMEs, timely receipt of approved incentives was essential to maintain cash flow and continue operations, stressing that the release of pending incentives would inject much-needed liquidity into the industry ecosystem, help businesses meet financial obligations, encourage investment in food processing and foster farmer-market linkages, and ensure employment.

The Chambers also called for a transparent, time-bound mechanism for the processing and settlement of future incentive applications with clear timelines and regular monitoring to ensure that such arrears do not accumulate again.

With the CII Partnership Summit scheduled to be held in Visakhapatnam on November 12 and 13, AP Chambers said clearing the backlog would send a strong signal to investors and demonstrate the government’s commitment to implementing its industrial policies, honoring eligible commitments and creating a predictable business environment in the state.

Published – 29 Oct 2026 19:43 IST