SLBC to conduct fortnight long awareness campaign for MSMEs
Updated: Oct 30, 2013 03:17:37pm
Hyderabad, Oct 30 (KNN) In a bid to enhance awareness among the micro, small and medium units about government schemes offered by banks, the State Level Bankers' Committee (SLBC) of Andhra Pradesh will organise a fortnight long campaign.
This was decided at a special SLBC meeting held here yesterday to specifically address struggles of the MSME sector and issues related to power supply and NPAs with the concerned officials.
During the meeting, bankers and representatives from industrial associations discussed several issues and announced a program that would take care of the interests of MSME sector.
The meeting was chaired by Convenor SLBC and General Manager Andhra Bank C Doraswamy while the Commissioner of Industries Rajat Kumar participated as chief guest.
Addressing the gathering, the Commissioner of Industries said that a fortnight-long campaign in consultation with the district administration and industrial associations in all districts of Andhra Pradesh will be conducted for the benefit and awareness of first and second generation MSMEs.
Currently, 40 lakh employees depend on the MSME sector in Andhra Pradesh. However, owing to the political unrest since 2009 and on-going power crisis, 72 SMEs have been forced to shut down to date, causing an irreparable loss for the industry.
In this backdrop, industrial associations have made an appeal stating - grant of interest funded term loan be considered as loan repayable in three years with quarterly repayments at 12 per cent per annum; the principal both in cash credit and instalments in term loans to be packaged as a second term loan repayable in 5 years; in all the cases their original limits of sanction should be restored and cash credit or demand loan released immediately.
The appeal has also demanded that all packages be covered under CGTMSC package for all MSE units up to Rs 1 Crore limit. Further, since units have no cash on hand, margin money or their contribution should not be insisted upon.
In addition, for all units whose loan requirements are below Rs 1 crore, external credit rating may not be insisted upon; all units located in clusters where common infrastructure facilities exist and where the cluster agent is active, financial institutions may examine the prospect of extending concessional interest rates after they demonstrate the cohesion in their activities with assured markets.
With regard to cash credit loans, they may be sanctioned based on their projected cash flows and assured work orders instead of on balance sheet ratio analysis and past performance.
The associations have also asked for re-schedulement of loan without affecting the status of the industry; and that no unit should be made NPA during this period.
Also, officials from TRANSCO AND GENCO were invited to discuss the on-going power crisis.
The forum of SLBC deliberated at length, ways to improve the conditions imposed by financial institutions while suggesting that banks make special efforts to assist the MSME sector.
The SLBC meeting saw the participation of Andhra Bank MSME General Manager K V Kannan, RBI representative Anuradha, GM from SIDBI Satish and state director from KVIC R Prabhakara Rao, OSD, Department of Finance Government of AP S V Hanumantha Rao, President FSME-AP A P K REDDY, vice president ALEAP Tripuramba, and Treasurer FAPSIA K L Srinivas. (KNN/MSR)
This was decided at a special SLBC meeting held here yesterday to specifically address struggles of the MSME sector and issues related to power supply and NPAs with the concerned officials.
During the meeting, bankers and representatives from industrial associations discussed several issues and announced a program that would take care of the interests of MSME sector.
The meeting was chaired by Convenor SLBC and General Manager Andhra Bank C Doraswamy while the Commissioner of Industries Rajat Kumar participated as chief guest.
Addressing the gathering, the Commissioner of Industries said that a fortnight-long campaign in consultation with the district administration and industrial associations in all districts of Andhra Pradesh will be conducted for the benefit and awareness of first and second generation MSMEs.
Currently, 40 lakh employees depend on the MSME sector in Andhra Pradesh. However, owing to the political unrest since 2009 and on-going power crisis, 72 SMEs have been forced to shut down to date, causing an irreparable loss for the industry.
In this backdrop, industrial associations have made an appeal stating - grant of interest funded term loan be considered as loan repayable in three years with quarterly repayments at 12 per cent per annum; the principal both in cash credit and instalments in term loans to be packaged as a second term loan repayable in 5 years; in all the cases their original limits of sanction should be restored and cash credit or demand loan released immediately.
The appeal has also demanded that all packages be covered under CGTMSC package for all MSE units up to Rs 1 Crore limit. Further, since units have no cash on hand, margin money or their contribution should not be insisted upon.
In addition, for all units whose loan requirements are below Rs 1 crore, external credit rating may not be insisted upon; all units located in clusters where common infrastructure facilities exist and where the cluster agent is active, financial institutions may examine the prospect of extending concessional interest rates after they demonstrate the cohesion in their activities with assured markets.
With regard to cash credit loans, they may be sanctioned based on their projected cash flows and assured work orders instead of on balance sheet ratio analysis and past performance.
The associations have also asked for re-schedulement of loan without affecting the status of the industry; and that no unit should be made NPA during this period.
Also, officials from TRANSCO AND GENCO were invited to discuss the on-going power crisis.
The forum of SLBC deliberated at length, ways to improve the conditions imposed by financial institutions while suggesting that banks make special efforts to assist the MSME sector.
The SLBC meeting saw the participation of Andhra Bank MSME General Manager K V Kannan, RBI representative Anuradha, GM from SIDBI Satish and state director from KVIC R Prabhakara Rao, OSD, Department of Finance Government of AP S V Hanumantha Rao, President FSME-AP A P K REDDY, vice president ALEAP Tripuramba, and Treasurer FAPSIA K L Srinivas. (KNN/MSR)
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