New Delhi, Dec 16 (KNN) Amidst reluctance by Banks to restructure, many MSMEs stare their accounts turning NPAs as the adverse impact of Covid continues to linger in export-oriented sectors. 

Distressed MSMEs shared their ongoing difficulties during the third Samwad (dialogue) with the group Members of Parliament named ‘Friends of MSMEs in Parliament’ on Thursday in New Delhi. 

The dialogue was organised by the MSME body Federation of Indian Micro Small and Medium Enterprises (FISME).

“While ECLGS did help tide over the crisis period for MSMEs, the lingering slowdown in Western markets have broken the spine of many MSMEs”, said Dinesh Singhal, a senior office bearer of FISME.

“We are receiving cases after cases of MSMEs who desperately need restructuring of loans but Banks are largely unwilling to land a helping hand because they have adequate collateral to cash through SARFAESI Act. Revival of a unit is the least of Banks’ priorities,” he added.

The 3rd Samwad was presided over by Member of Parliament from Meerut Rajendra Agrawal in presence of Jagdambika Pal, MP (Dumariya Ganj), Pradeep Kumar Chaudhary, MP (Kairana), Dilip Saika, MP (Mangaldoi), Ramesh Chander Kaushik, MP (Sonipat), Subhash Chand Baheria, MP (Bhilwara), and Sankar Lalwani, MP (Indore).

A section of MSME e-commerce sellers shared their harrowing experiences with MPs.

“It is astonishing that while PM Narendra Modi is giving a lot of push and encouragement to digital and e-commerce trade to connect small entrepreneurs & artisans to wider markets through e-commerce, but on ground small sellers encounter huge difficulties in complying with GST provisions”, said Anil, Bhardwaj, Secretary General of FISME.

“They are required to obtain multiple registrations in states where goods are stored, are asked to create full set-up & wait for months for adding new place. Harassment & intimidation by state tax authorities are pulling the clock back for ease of doing business,” he added.  

MSME sellers explained that while certain states like Karnataka takes two days to register an e-commerce supplier, the process has been made extremely difficult in others such as West Bengal and Uttar Pradesh.

FISME intends to rank states on ease of doing e-commerce and is to conduct a survey of over 3000-4000 MSME suppliers. 

(KNN Bureau)