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16/05/2020 05:47pm

AIMO seeks clarity on financial package for revival of MSMEs

image AIMO seeks clarity on financial package for revival of MSMEs

Mumbai, May 16 (KNN) All India Manufacturers Organisation, (AIMO) has sought clarifications from the government on the announcements on financial package for revival of MSMEs.

''Almost 90% of our members are confused on the methodology. While we appreciate and thank the FM and PM for bringing the needs of MSMEs in the limelight, on speaking to our members of various MSME associations and Industrialists across India, they are unanimous in their opinion that the package needs more clarity,'' said AIMO in a statement.

K E Raghunathan , Immediate Past President, AIMO said that announcement which was made on May 13th, our FM has said that over about 50 lakh MSME will benefit from Rs.3.0 lakhs crores package and other announcements, the total number of MSMEs that operate in India is in excess of 6 crores and the present package will not even cover 8% of the total number of MSMEs.

''Our members would like to know if there is another package for OUR sector. Uncertainty has been the biggest fear of MSMEs post the Covid19 lockdown," he added.

Raghunathan further said that about 63% of the dues pending for payment for MSMEs is from State Governments and their undertakings.

''Can our FM kindly issue a protocol for State Governments to follow for settlement of MSME dues? Can our FM immediately release payments to States and impress upon them to pay the MSME dues immediately? he asked.

Members from the start up community require clarity on how start up enterprises who do not have any bank facility till date will benefit from the financial package announced by the FM,'' added Kenny Ramanand , National Secretary, AIMO on start-up's account for over 19% of the MSME's in the country.

The members of AIMO feel that mere extension of loan alone will not be a solution, but enabling MSME repay them is also equally important.

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