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Provide Interest Subvention Scheme for MSMEs, FICCI urges govt in pre-budget memorandum

Updated: Jan 15, 2018 08:19:10am
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Provide Interest Subvention Scheme for MSMEs, FICCI urges govt in pre-budget memorandum

New Delhi, Jan 15 (KNN) Ahead of the upcoming Union Budget 2018-19, industry body Federation of Indian Chambers of Commerce and Industry (FICCI) has urged the government to address concerns of the Micro, Small and Medium Enterprises (MSMEs) with regard to the interest rates levied on them.

FICCI in its Prebudget memorandum said that the banks are noted to be charging higher interest from MSMEs, therefore the government should explore possibility of providing scheme of interest subvention now known as Interest Equalisation Scheme.

FICCI said that at present the government at present provides the scheme option in case of pre and post shipment rupee export credit only, in the upcoming budget the government should consider extending it to all.

The reduced rate of interest would help the units which are generally driven by individual or small entrepreneurs. This would encourage the growth of the entire MSME sector, FICCI added.

Also with regard to the Goods and Services tax (GST), the federation urged the government to facilitate level playing field under GST regime.

Explaining the concerns of the MSMEs under the textile parks developed or to be developed under the Scheme of Integrated Textile Parks (SITP) Scheme are promoted by Ministry of Textiles, Government of India.

The Textile Parks developed/to be developed under SITP Scheme and Industrial Parks developed/to be developed by the State Industrial Development Corporation / Undertakings (SIDC) are on the same business model, it urged.

The exemption given to SIDCs and not to SITPs is not providing level playing field to SITPs and would lead to injustice for MSMEs, FICCI said.

The Union Budget is likely to be present in the parliament from February 1st 2018. (KNN/DA)

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