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03/11/2018 02:56pm

Industries react on PM's announcements for MSMEs

image Industries react on PM's announcements for MSMEs

New Delhi, Nov 3 (KNN) There are mixed reactions on the 12 announcements made by the Prime Minister Narendra Modi during Micro, Small and Medium Enterprises (MSME) Support and Outreach program, by various industrial associations. Where some welcomed the steps, other are worried about its implementation.

Karnataka Small Scale Industries Association (KASSIA), Vice-President, R Raju while talking to KNN said, “The announcements made by the prime minister are good.”

He said, “Loan in 59mins will be effective. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGMST) scheme in which 3 years balance sheet have been mentioned is a good move, which should also have been extended to start-ups.”

“It is important for start-ups because, if they don’t have co-lateral nobody will give loans to them,” he added.

“Move of increasing the Interest Equalization from 3% to 5% is also a great move,” Raju mentioned.

“Announcements made are good, but should be implemented properly, which is a main issue,” said Sunil Vaish, President, Indian Industries Association (IIA) while talking to KNN.

He further said that, “If the MSMEs get the financial resistance, it will be very good. We also had one demand that after one extent MSME should be left free from all the registration, NoC and certification.”

“If the government keeps moving on this path then MSME will surely get the benefits. It should be implemented properly. We hope that government continues to take efforts for MSME,” Vaish said.

 He mentioned, “The major concern is that it does start from the upper level but fails to reach the lower level. If implemented then will be bifacial.”

Tamilnadu Small and Tiny Industries Association (TANSTIA), President, C Babu, said, “It is a good move for MSME, but how banks will operate it I don’t know. None of the banks are co-lateral.”

Speaking about it further with KNN he said, “It is very important to know how many banks are willing to give loans under this scheme. We don’t want loan in 59mins, if bank will give loan in 5days we will be happy.”

Babu added, “Condition of banks need to be improved, as there are mangers in banks who are not aware about the various schemes, especially in the rural area. First RBI should give directions to the managers and insist them to give loans.”

“We welcome the Prime Minister’s announcements, but how will it be implemented is a question,” he said.

Federation of Punjab Small Industries Associations (FOPSIA), President, Badish Jindal, while talking to KNN said, “Earlier commitments of government are not fulfilled yet, and all are flop. Nothing is happening.”

He mentioned, “There was Credit Linked Subsidy Scheme (CLSS), which was very good for the industry but now has also stopped.”

“Just because of elections, these political statements are being passed,” he said.

He also stated, “Banks are bankrupt and will not give a single penny to anyone.”

“According to last year’s data the growth in loan to MSMEs were 0.73%, which is the lowest in the history,” Jindal said.

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