Save industries in Telangana by postponing NPAs: industry association
Updated: Jan 22, 2015 04:45:54pm
Hyderabad, Jan 22 (KNN) The central government should bailout all the sick units in Telangana by announcing a special package for the MSME sector, said National President, Federation of Small and Medium Enterprises of India (FSME), A P K Reddy.
He has submitted a memorandum to this effect to the delegation of the Committee on petitions of Rajya Sabha which is currently on a tour of Hyderabad, a press note said.
On behalf of the MSME units in the region, Reddy has made other demands including – special status and package for both Telangana and Andhra Pradesh to help the industry; declaring postponing sick units as NPAs; sanctioning of accumulated interest of sick units by the Centre as the industries were running with only 50 per cent of the operating capacity for the past four years.
FSME has also asked for exemption of central excise duty on generators purchased for industrial use in Telangana as the state is reeling under power shortage; immediate restructuring of accounts and viability tests for the sick units; and addressing financial remedies and allocations for MSME sector in the forthcoming Union Budget, as per the press note.
On the rationale for their demands, “Political uncertainly, serious shortage of power, hike in power tariff, lack of marketing support, burdening tax structures like high percentage of VAT compared to other states are some of the major reasons for the sickness and decay of the MSME sector in undivided Andhra Pradesh which were inherited by the newly carved out Telangana state. In this scenario, the central government should come forward to save the MSME sector,” Reddy said.
The visiting delegation was headed by MP Rajya Sabha, Bhubaneswar Kalita who was accompanied committee member and senior Congress leader, V Hanmantha Rao (MP).
The meeting they convened facilitated an interaction with industry associations, financial institutions and government agencies of the industries department of Telangana. (KNN/ES)
He has submitted a memorandum to this effect to the delegation of the Committee on petitions of Rajya Sabha which is currently on a tour of Hyderabad, a press note said.
On behalf of the MSME units in the region, Reddy has made other demands including – special status and package for both Telangana and Andhra Pradesh to help the industry; declaring postponing sick units as NPAs; sanctioning of accumulated interest of sick units by the Centre as the industries were running with only 50 per cent of the operating capacity for the past four years.
FSME has also asked for exemption of central excise duty on generators purchased for industrial use in Telangana as the state is reeling under power shortage; immediate restructuring of accounts and viability tests for the sick units; and addressing financial remedies and allocations for MSME sector in the forthcoming Union Budget, as per the press note.
On the rationale for their demands, “Political uncertainly, serious shortage of power, hike in power tariff, lack of marketing support, burdening tax structures like high percentage of VAT compared to other states are some of the major reasons for the sickness and decay of the MSME sector in undivided Andhra Pradesh which were inherited by the newly carved out Telangana state. In this scenario, the central government should come forward to save the MSME sector,” Reddy said.
The visiting delegation was headed by MP Rajya Sabha, Bhubaneswar Kalita who was accompanied committee member and senior Congress leader, V Hanmantha Rao (MP).
The meeting they convened facilitated an interaction with industry associations, financial institutions and government agencies of the industries department of Telangana. (KNN/ES)
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