Chief Minister N. Chandrababu Naidu urged banks to step up support for MSMEs and emerging sectors during the ongoing 233rd and 234th State Level Bankers’ Committee (SLBC) meetings held at the Secretariat in Amaravati. Addressing bankers and officials, he stressed that strong government credibility and coordinated banking support can accelerate economic growth across Andhra Pradesh.
Bank Support for Ratan Tata Innovation Hubs
Bank representatives informed the meeting that entrepreneurs launching industries through Ratan Tata Innovation Hubs will receive financial support from multiple banks. Officials confirmed that Union Bank of India is extending support to the Ratan Tata Innovation Hub headquarters in Amaravati. In addition, banks have taken responsibility for regional spoke hubs across the state.
According to bankers, SBI and Bank of Baroda will support the Rajahmundry spoke hub, Canara Bank will back the Anantapur hub, Punjab National Bank will assist the Visakhapatnam hub, Indian Bank will support the Tirupati hub, and HDFC Bank will extend assistance to the Vijayawada spoke hub. The coordination aims to simplify credit access for startups and small businesses.
Focus on Credibility and Financial Discipline
Chairing the meeting, the Chief Minister said governance must reassure people and restore confidence. He stated that weak systems during the previous administration damaged the government’s credibility and led to high-interest borrowings. He pointed out that strong credibility allows governments to raise loans at lower interest rates.
Chandrababu Naidu said the state assessed a possibility to reschedule loans worth ₹2 lakh crore. So far, the government has successfully rescheduled ₹49,000 crore, resulting in savings of nearly ₹1,108 crore. He described this as a major step toward fiscal stability.
Boost for MSMEs and Natural Farming
The Chief Minister urged bankers to give greater priority to the MSME sector, especially enterprises that support the weaker sections. He said MSMEs need strong backing from both the government and banks to grow sustainably. He added that promoting MSMEs can drive development across all sectors.
He also sought banking support to expand natural farming, stating that credit availability plays a key role in encouraging farmers to shift to sustainable practices. He highlighted the government’s One Family–One Entrepreneur policy as a pathway to inclusive growth.
Service Sector and PPP Projects
Chandrababu Naidu said the state is moving forward with clear plans to revive the service sector. He informed bankers that the Centre has shown readiness to provide Viability Gap Funding (VGF) for Public–Private Partnership projects. He also suggested inviting district collectors to future bankers’ meetings to ensure better coordination at the ground level.
The meeting concluded with a call for stronger collaboration between banks and the state to support entrepreneurship, employment, and long-term economic growth.
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