Parliamentary Panel suggests govt to extend ECLGS repayment period to 7-8 yrs for MSMEs

New Delhi, Mar 22 (KNN) The Parliamentary Panel has suggested the government to extend the repayment period for loans under the Emergency Credit Line Guarantee Scheme (ECLGS) to 7-8 years for MSMEs.

The Panel said the repayment period is insufficient for MSMEs which are still recovering from the second wave of covid-19, and hence it must be extended up to 7-8 years with at least two years of moratorium on the principal amount.

RBI should announce moratorium for interest from 1st March, 2020 onwards, it said.

In view of the industry, the Parliamentary standing committee has recommended the government to digitise the GST system to ensure paperless refund of claims.

It also suggested for the establishment of a Central Market Intelligence Centre for import-related products and components in the country to stop the import of products which can be manufactured by MSMEs in India.

To boost the MSME sector further, the committee has asked the government to put out a list of products which are being imported along with their specifications.

That list should be brought to the attention of entrepreneurs who are interested to set up new manufacturing enterprises in the MSME sector through electronic, print and social media.

The committee identified under-utilisation of funds by the Khadi and Village Industries Commission (KVIC) for their flagship schemes as an impediment for their promotion and development of Khadi and Village Industries and employment generation in rural areas

Hence, it recommended KVIC to market Khadi in the international market and aim to secure trademarks in those countries to protect the interests of its consumers and Khadi artisans. (KNN Bureau)