MSMEs in south urge Central Govt to address their issues
Hyderabad, Jan 15 (KNN) Micro Small and Medium Enterprises (MSME) association in South India have urged the central government to immediately address the issues concerning MSMEs here.
The Joint Action Committee (JAC) of MSME in south India met in Bengaluru recently and decided to take their issues to the central government.
Nine MSME associations from across South India attended the meeting.
South India MSME JAC, Vice Chairman, APK Reddy, who is also a national president of Federation of Small and Medium Enterprises of India (FSME India), said that the central government can look at some basic measures to prevent small and medium industry units from becoming non-performing assets (NPAs).
Reddy suggested that all potential NPAs could be brought before the DIPC (District industries Promotion Council)/ DIC (District Industries Centre) and district manager of the banks should be present there to evaluate whether the whether the unit is a willful defaulter or not.
''The first deliberations of the concerned unit should be held there and must arrive at a conclusion whether the unit is a willful defaulter or not. If it is not, then the unit must be referred to SLllC sub-committee for further action tor revival / rehabilitation. Only if the unit is proved to be a willful defaulter, the banks may proceed to take measures," he said.
While commenting on Non-Performing Assests (NPAs), he said that NPA norms for MSME sector should be modified in such a way the units get longer time to repay the principal installments to enable them to focus more on their business instead of running around money lenders to borrow money at higher rate of interest.