New Delhi, Mar 31 (KNN) A delegation of Micro, Small and Medium Enterprises (MSMEs) from Karnataka recently met Prime Minister Narendra Modi raising MSME related concerns including the dormant CGTMSE scheme and problems in procurement policy.

The delegation led was led by Hanumanthe Gowda, President of Karnataka Small Scale Industries Association (KASSIA) on 28th March,2018. During the 12-15 minute meet, the delegation submitted a memorandum highlighting the critical problems facing MSMEs seeking his intervention to remedy the same by appropriate policy measures.  

Talking to KNN, Gowda said that the MSMEs in Karnataka are not doing well in the recent times due to a lot of bottlenecks, some of which were mentioned in the memorandum submitted to the Prime Minister.

Explaining the points put up before the PM Gowda said that a prime concern at present is the dormant nature of the CGTMSE scheme.

“Banks are not accepting the applications under the CGTMSE scheme even though the government assured it being functional at multiple occasions, bringing MSMEs on the brink of closure”, he said.

He further informed that the representation also apprised the Prime Minister about the loopholes creeping in with the National Procurement Policy. Despite the mandatory 20 pr cent norm, there are several cases in which the MSMEs aren’t being given preference.

With regard to the rate of interest, the delegation urged PM Modi to consider lowering it to a uniform 8.33 per cent from the current 12-13 per cent margin to encourage MSMEs in the country.

Responding to the requests, PM assured that the government is constantly monitoring the situation and a solution would likely be announced soon.

“PM said that the MSMEs are close to my heart, not only do they provide for economic growth, they also help generate employment”, Gowda added. (KNN/DA)