MSMEs have sought a slew of fiscal support and policy measures from the government for the growth of the sector.
MSMEs have sought a slew of fiscal support and policy measures from the Government for the growth of the sector. The National Confederation of Small Industry and the Industrial Estate Manufacturer’s Association in a representation to the Prime Minister Narendra Modi, have sought relief from the provisions of the Sarfaesi Act which is used to auction assets of industrial units to recover over-due loans.
They said that large industries and the corporate sector are extended facilities such as Corporate Debt Restructuring but the MSME sector bears the brunt of the harsh measures. The 90-day limit to declare an overdue loan as a non-performing asset should be doubled to 180 days and rehabilitation of sick units should be supported on a priority basis.
Their demands include – MSMEs should be treated on par with large and small industries, central excise duty exemption limit should be increased from the present Rs 1.5 crore, credit to the MSME sector should be made available at 7-8 per cent interest rates, and public sector units and government departments should be told to procure material from local MSME units.
The Association also urged that SIDBI should be allowed to lend directly these units. They also said that the National Small Industries Corporation should be directed to extend loans for factory sheds and machinery, MSME Development Institute should be strengthened to guide entrepreneurs in export business, and labour laws suitable for the sector must be framed. They also suggested that the delayed payment act should be enforced to ensure that large corporate units do not delay payments to MSME units, and MSMEs also demanded that the government should act on the recommendations of the Inter Ministerial Committees to accelerate growth.
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