Amethi, Apr 25 (KNN) The dying micro, small and medium enterprises (MSMEs) in Amethi, who have already tried their luck to get attention from all top ministries at Centre and State level, failed to meet Union Minister Smriti Irani on Sunday as she was too busy "to listen to their problems".

A MSME delegation comprising of 7-8 members of Indian Industries Association (IIA) from Amethi were waiting for Irani to come to Amethi on Sunday. But even after waiting for hours they could did not get time from the Minister to listen to their woos.Irani was in Amethi on Sunday where she visited the Makhdumpur village.

The MSME units in Congress Vice President Rahul Gandhi’s constituency Amethi are facing huge financial crunch and have voiced concerns over closure of the units due to lack of support from the banks.

The delegation led by IIA Amethi Chapter Chairman Shahnawaz Ahamad told KNN, " We went to meet the Minister with lot of hopes. But even after waiting for hours the Minister did not meet us. We even said that the matter is quite urgent hundreds of MSMEs are on verge of closure here but still we could not meet her."

Later, when Irani was leaving the place, on being asked by some reporter she took some time off her busy sched and took the representation by the industry representatives which they had sent to the PM Office in March.

She said she would look into the matter.

The IIA Amethi Chapter, in March, had written a letter to PM raising serious concerns over the dying industries in the region. The entrepreneurs, however, said that they haven't received any response so far.

Out of 250 units in the hub, more than 80-90 units have already closed and 150 are on the verge of closure.

The Amethi Chapter of the IIA last week met Rahul Gandhi in this context and highlighted that if the matter is not addressed immediately, it would lead to closure of more than 150 units in Jagdishpur Industrial Area.

The MSME units in the area, which are in dire need of working capital, have been served recovery/auction notice by the banks.

“IIA Amethi Chapter had a meeting with the Rahul Gandhi on Thursday. The MSMEs in the area are facing huge financial crunch due to rising inflation and high cost of raw materials,” IIA President Manish Goel earlier told KNN.

He said, “The units are not getting any support from the bank. The banks have served them recovery and auction notices and have also rejected their plea for restructuring and revival.”

The MSME representatives from the area had been meeting the UP Government and RBI officials in this regard. For the first time, they have approached Rahul Gandhi and submitted a memorandum to him for their help.

Ahamad, Chairman, IIA Amethi Chapter, said that while the recovery and auction should be the last option for the banks to recover their loans, in the area the banks consider that as their first option and send recovery/ auction notice to the units as soon as the unit turns NPA after 90 days of defaulting.

Ahamad said that the banks there are charging exorbitantly high interest rates to the industries. “The interest rate for the agro-industries should be 1% but the banks here have charged some of the industries as high as 14-19 per cent interest rates.”

The problem is also non-release of working capital funds from the banks even after approval of loans, he added.

The industrialists have already approached RBI, MSME Ministry, Central and State Government officials in this regard but nothing has been of help to them so far. 

Also read: http://knnindia.co.in/news/newsdetails/msme/msme-units-in-rahul-gandhis-turf-on-the-verge-of-closure-allege-non-cooperation-by-banks (KNN Bureau)