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Delayed payments-high power tariffs hampering MSMEs in Andhra: ACCIF

Updated: Jul 29, 2017 09:41:43am

Delayed payments-high power tariffs hampering MSMEs in Andhra: ACCIF

New Delhi, July 29 (KNN) The Micro, Small and Medium Enterprises (MSMEs) continue to face different problems including high power tariffs and delayed payments, because of which the sector is not able to perform well, Andhra Chamber of Commerce and Industry Federation (ACCIF) recently said.

Talking to KNN, Bhaskara Rao Potluri, General Secretary of Andhra Chamber of Commerce and Industry Federation (ACCIF) explained the situation.

He informed that though the state government has announced a set of measures for the MSME sector, there is a lot that needs to be implemented on ground.

Listing the problems, Potluri said that 40-50 per cent of the MSME units are sick in the region, It is primarily because there is a delayed payment of the receivables from various government departments.  Though there is a policy that states that the payment should be made within 45 days, it is hardly being implemented.

“The micro and small units work on a string budget, due to the delayed payments, the units start to face financial crunch” he added.

He further informed the power tariff in the region is dynamic and high as compared to other states. While states such as Punjab and Maharashtra have fixed tariffs of 5-6 rupees per unit all inclusive, the MSME units in Andhra are charged 9-10 rupees per unit.  The high tariff increases the cost of production; therefore the MSMEs from the state feel paralysed while competing with other states.

Potluri added that there is no proper monitoring of the Public Procurement Policy that mandates 20 per cent of the inputs to be procured from the MSMEs.

With such situations prevailing, it is important that beside the announcement of MSME parks and newer policies for the sector, the government should ensure that the concerns are actually being addressed, he added. (KNN/ DA)


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