Budget Special: Maharashtra MSMEs want cheaper loans, more credit for the sector

Mumbai, Jan 6 (KNN) With less than a month left for the Union Budget to be unveiled, the MSMEs from across the country from different sectors have submitted their representations to the Finance Ministry for consideration in the budget.

The government will be presenting its Union Budget 2017-18 on February 1 this year.

KNN spoke to various associations in Maharashtra to know what their expectations and demands are.

President of Textile Association of India, Arvind Sinha, said that cost of credit should be reduced.

He said, the government should make efforts to make industry self-sustainable so that it does not have to look up to government every time for everything. For this the rate of interest should be reduced.

“In context of textile industries, there is not much that government can do at this stage. It’s a very large affair only the certain incentives like cheap loans, credit availability at easy rate can help people to conduct the business well,” said Sinha.

Ashok Minawala, Spokesperson of All India Gems and Jewelry Trade Federation (AIGJTF) told KNN that expensive raw material has been a major issue for the MSMEs

High rate of interest is another major problem faced by the sector, he added.

“MSME can only survive when they will get raw material at competitive prices and they get loans at lower costs,” said Ashok Minawala.

While considering the budget to be very crucial in the present scenario post demonetization, Dalit Indian Chamber of Commerce & Industry (DICCI) had sent proposal to the finance ministry which included various issues which DICCI is expecting that government should look into seriously.

“We already sent proposal to the finance ministry. The effective rate of interest comes to nearly 14% to 15% which is very high, therefore it needs to be relooked at,” said Milind Kamble, Chairman, DICCI.

According to Kamble there should be additional fund allocation and tax benefits provided to SC/ ST Entrepreneurs.

“There should be allotment of additional funds of rupees 200 crores for the Venture Capital promoted by IFCI for SC Entrepreneurs. Tax Benefits should be provided to companies that source products and services from SC/ST Entrepreneurs,” said Kamble.

Speculating these views from associations it can be predicted that budget 2017 which is coming earlier this time certainly have surprises, especially for the industries as aftermath of demonetization left the industries in hard time. (KNN/RAS)