New Delhi, Jan 18 (KNN) Definition of Micro, Small and Medium Entrepreneurs (MSMEs) should be considered on investment basis instead of on turnover basis as being proposed now, said Karnataka Small Scale Industries Association (KASSIA).

KASSIA suggested that the following slabs may be accepted, viz. Micro – up to Rs 2 crore (and not up to Rs 5 crore); Small – above Rs 2 crore to Rs 25 crore (not Rs 5 cr to Rs 75 cr); and Medium – above Rs 25 cr to Rs 50 cr (not from Rs 75 cr to Rs 250 cr).

KASSIA represented various issues of common concern to micro and small scale entrepreneurs to the Center during the South India MSME Summit 2019.

The industry bodyj joined hands with several MSME associations from southern States to organize a South India MSME Summit 2019, third in the series.

Presenting a Memorandum of grievances/suggestions of MSMEs of south India, Chairman of South India MSME Summit and President, KASSIA, Basavaraj S. Javali hoped that the Center and the respective State Governments would respond positively to the pleas of the MSME.

Otherwise it would have an adverse impact on the very survival of the small industry sector which was the major contributor to GDP growth and exports and would thus affect the growth of the national economy, he added.

The memorandum covered a wide gamut of issues of concern to the MSME sector.

First issue was to reduce interest rates on term loans to micro and small enterprises; abolish initial loan processing fee and processing fee on renewal year on year; and provide longer moratorium period of 2-3 years on loan sanctions.

Another was to bring down the eligibility for participation under Trade Receivables e-Discounting System (TReDS) of companies from Rs 500 cr turnover to Rs 100 cr and make it mandatory for such companies to register on this platform, which will benefit a larger number of MSMEs.

Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE), Credit Linked Capital Subsidy Scheme for Technology Up-gradation (CLCSS), Non-Performing Assets (NPA), 25% purchase preference and 15% price preference policy for MSMEs are strictly followed by all PSUs, large organizations, etc, were among various other issues.

Also, the PSUs and large organizations should be directed to comply strictly with the MSMED Act and make payment to their MSME suppliers within 45 days without fail, subsidize the MSME employers up to 25% of the minimum wages paid for the first year to unskilled and semi-skilled workers from the deprived sections of society and earmark additional funds in the MP LAD Grant specifically for development of infrastructure in the private industrial estates, were mentioned in the memorandum.

Other issues highlighted by KASSIA were, power tariff should not be hiked indiscriminately and fixed rationally in the context of the disparity in rates for solar power which is available at Rs 2-3 per unit as against electricity at Rs 7-8 per unit, labor charges should either be brought under 5% slab or completely eliminated, and e-way bill requirement on labor work should be removed and single Window system should be made much more effective so that 90% of the problems of the small entrepreneurs are resolved through the SW mechanism.

KASSIA Past Presidents, Council Members and representatives of Affiliate Associations from all over Representatives of the following associations viz. FSME, Telengana – AP, FAPSIA, AP-Telengana, ALEAP India, Hyderabad, TANSTIA, Chennai, CODISSIA, Coimbatore, GSIA, Goa, KSSIA, Kerala, HIA, Hosur, MADITSSIA, Madurai, FETSIA, Telengana, CAPMA, Hyderabad, and TNBA, Tamil Nadu chaired the meet along with Office Bearers of KASSIA.