Telangana MSME body appeals govt to direct banks to increase working capital limits of MSMEs

New Delhi, April 28 (KNN) The Federation of Telangana Small (MSME) Industries Associations (FETSIA) has suggested the central government to instruct the Banks for an automatic increase in working capital limits of all MSME units.

This will facilitate the MSMEs for their cash flow, otherwise they are forced to borrow money at 20 to 30 per cent interest from outside agencies owing to pay double the price for raw materials, said the MSME body.

Submitting a slew of suggestions to MSME Minster Narayan Rane on Wednesday, B. Siva Sambi Reddy, General Secretary, FETSIA requested for a proportionate increase in prices of Goods supplied by MSMEs to government companies, public under taking companies, quasi government companies etc.

Reddy urged the Minister to review the issue of paucity of funds due to which subsidies from 2015 onwards were not released to MSMEs and arrange a special grant or loan to state governments.

He also suggested that while releasing share of GST funds to state governments a condition must be placed that at least 50 per cent GST funds released shall be utilized for payment of pending subsidies to MSME units. (KNN Bureau)