New Delhi, Jan 17 (KNN) As the interim budget 2019 is about tobe presented on February 1, Micro,Small and Medium Enterprises (MSMEs) from Tamil Nadu are demanding scrapping of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, 2002 for micro industries.

Speaking with KNN India, Immediate Past President of Tamil Nadu Small and Tiny Industries Association (TANSTIA) C Babu said, “The government should withdraw the SARFAESI Act for micro units up to a borrowing limit of Rs 2 crore to help them revive.”

While sharing the expectation of MSMEs from the upcoming budget, he further recommended credit linked subsidy scheme and easy exit policy for MSMEs.

Other suggestions that he made for the welfare and growth of MSMEs include 7% rate of interest for MSME units, reduction in dividend tax, reduction in forms and document uploading, focus on skill development, focus on export promotion by way of additional subsidy.

While all other norms like NPA, SARFAESI and recovery norms are followed as per international standard. Henceforth the rate of interest also to be as per international rate of interest which is of average 7%, he added.

On behalf Of MSME, he also demanded implementation of small factories act and income tax relaxation for tiny sector and women entrepreneurs.

The final budget to be presented by Modi-led government on February 1 is an interim Budget. The budget session is scheduled to begin on January 31 and will culminate on February 13.