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Budget 2019: Re-start CLCSS with fresh lucrative term to attract Indian MSMEs, says FOSMI

Updated: Jun 29, 2019 09:54:44am
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Budget 2019: Re-start CLCSS with fresh lucrative term to attract Indian MSMEs, says FOSMI

New Delhi, June 29 (KNN) Renewal of credit linked capital subsidy scheme (CLCSS) is one of the key recommendation made by Federation of Small and Medium Enterprises (FOSMI) to Finance Minister Nirmala Sitharaman, ahead of Budget 2019.

In its pre-budget memorandum, FOSMI said that the CLCSS is definitely a good scheme for the MSMEs, however, what we understand that at present the Scheme is under revision and will be launched soon after obtaining the necessary approvals.

“We strongly recommend for the re-starting of the Scheme with fresh lucrative term to attract the Indian MSME”, it added.

Another suggestion it made was for strong intervention of RBI and a special cell to be constituted to deal with the problems relating to the effective implementation of the CGTMSE scheme as per the given guide line for the benefit of Micro Small and Medium Enterprises (MSMEs).

Further, FOSMI mentioned that the normal lending rate by Bank to MSMEs is very high, which should be reviewed keeping in view the growth prospects of MSMEs and their contribution in the Economy.

The matter was presented also before the meeting of Expert Committee on Micro Small and Medium Enterprises, constituted by RBI on January 2, 2019. The Committee is undertaking a comprehensive review of the sector for proposing long term solutions for the economic and financial sustainability of MSME, it added.

There should be proper Market support Assistance, and we strongly suggest that State wise market survey is required for coming / young entrepreneurs, said FOSMI in its pre-budget memorandum.

It stated “We also further add that Up-gradation is the most important area to address the needs of MSMEs which is the main feature of NMCP scheme of Government of India.”

On technology related issues, FOSMI suggested that MSME Development Institute (MSME-DI) should have strategic area of advisory part in respect to manufacturing diagnosis and facility linkage to specialised agencies in fulfilling the techno managerial consultancy aspects.

The MSME-DI should provide trained personnel who can guide MSMEs to their needed technological development issues and new product development and also to help the MSMEs to avail schemes if available for technological development issues.

FOSMI further recommended the review of present incentives offered to exporters. In addition, it asked for additional lucrative proposal on to the existing incentive policies so that MSMEs feel worth in investing more for export.

“The existing system of realization of dues requires to be amended and the concerned authority should be empowered to settle at their level only and not leave a MSME Unit to run pillar to post for realization of dues. This is a very serious issue and attention is here by drawn to take a must step to ease the procedure of realization”, said FOSMI.

The Necessity for the growth of MSME Chemical Sector with proper infrastructural facility and amendment of regulatory norms of environment clearance, FOSMI recommended.

“Amendment needed in MSMED ACT 2006 to benefit the purchaser / buyer from MSME units in case of non fulfilment of the agreed terms of purchase orders/ agreement with their suppliers after the receipt of Advance Money against Proforma Invoice”, said FOSMI.

Availment of Input Tax Credit (ITC) 13% against Tariff Code 8607 & 86082; Reinstatement of Security Deposit Amount of Railway Contracts; Requirement of deeper integration of 59 Minutes Loan Portal with Bank 4 Institutional Networking in providing technology and services to MSMEs especially for establishment of Rural Industries from agricultural produce are few other suggestions FOSMI made.

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