Withdrawal limit should be increased to Rs 5 lk/ week for MSMEs: TIE

Bengaluru, Dec 17 (KNN) With the businesses being hit due to cash crisis even after more than a month the demonetization announcement was made, the MSMEs demand withdrawal limit to be increased up to Rs 5 lakhs per month.

The Team India Entrepreneurs (TIE) announced to organize the interactive meeting with B.S. Yeddyurappa, M.P. & President, BJP-Karnataka and Katta Subramanya Naidu, Ex.Minister for Medium Industries, Government of Karnataka.

While talking to KNN, Anand G. Natekar, Chairperson, TIE, revealed that the objective behind is to urge for support for the small scale industries. 

“There is a need of lot of work to be done for the Small Scale Industries which government hasn’t done yet. Small scale industries are the soul of the country as it provides employment to large number of people,” said by Natekar.

In order to meet the objective, he said that every sector needs financial support to develop but today MSMEs are facing trouble due to demonetization.

“For the industries we are demanding the withdrawal limit to be extended up to 5 lakhs from January 1st, 2017. Because the amount of money government will gain by stopping the black money is less than the losses of the industries,” added Natekar.

Taking a dig at the government, he said that even after contributing a lot, small sector is being ignored for so long.

“Though we are contributing 46 percent of exports in India and nearly 70 percent of the workers are employed through Small Scale Industries, government is ignoring us.” said Chairperson.

In the context of demonetization he said that we are not against the move but it is having adverse impact on the industries especially SMEs.

“The move of Demonetization is not wrong particularly but small industries are facing tough times. Workers don’t have their bank accounts and lot for them are not ready to open it as they think that they will lose their subsidy facilities. We are not able to pay them” said Anand.

“TIE has been registered on December 6, 2016, we will cover lot of events under the NGO,” said Chairperson, TIE. (KNN/RAS)