New Delhi, 17 Dec (KNN) Dr. Animesh Saxena, President of Federation of Indian Micro and Small & Medium Enterprises (FISME) forcefully raised the issue of prevailing high commodity prices in India before the Finance Minister during pre-budget consultation today.

“Inaction against commodity producers is dragging manufacturing, exports and hitting MSMEs,” he said during the virtual interaction with Finance Minister Nirmala Sitharaman.    

FISME has asked Government to abolish import duties  on Steel, Copper, Aluminum and Polymers along with any Anti-dumping or Safeguard duty imposed on them. 

The pre-budget submission of the national Federation which represents over 740 MSME associations contains a range of issues of concerns to MSMEs.

To help restructuring, it has asked a guarantee cover of 100%  of additional security to be extended through the existing CGTMSE scheme or through a new instrument under NCGTC.

FISME has also asked amendment in Insolvency and Bankruptcy Code to ensure payment of MSME sues in case of liquidation.

‘The MSMEs be classified as a separate sub category under the existing Operational Creditors category and accorded priority for payment of their dues. Further, section 53 be so amended as to put dues of MSMEs at par with the dues of workmen to a minimum extent of 5% of the total CIRP or liquidation amount as the case maybe for payment,’ FISME Memo noted.

Seeking parity between online and offline sellers, FISME has asked the Government to enable women entrepreneurs and artisans to supply online without GST registration.  

To improve MSMEs’ access to finance, FISME has asked to strengthen the TReDS platforms by strictly ensuing compliance of the Order for Corporates having annual turnover above 500 crore  for compulsory registration and  transactions. It has also asked both Central and State departments and PSUs to register and transact.

Further, FISME has asked the Finance Minister to suspend the pre-pandemic guidelines on SMA rating and Bank Loan  Ratings (BLR) etc. for at least three years.

To help exports, FISME memo has requested restoration of  the interest subvention scheme with retrospective effect.

Dr. Saxena has also raised the issue of ‘perverse incentives’ which inhibit natural growth of Micro and Small to Medium enterprises.

FISME has asked ‘Code Of Bank’s Commitment To Micro And Small Enterprises’ for entire MSME sector and requested waiver for specific stipulations under the Companies Act such as appointment of Independent Directors/ Women Directors/ Key management personnel including waiver for compulsory Cost Audit of Companies. It has also suggested that Medium enterprises should be allowed to accept Fixed Deposits from relatives.