Union Budget: KASSIA suggests extension of ELCGS to SMA-2 accounts and soft loans for MSMEs at 4%

Bengaluru, Jan 29 (KNN) Extension of Emergency Line Credit Guarantee Scheme (ELCGS) to SMA-2 accounts and offering soft loans to MSMEs at 4 per cent are sone of the key suggestions given by the Karnataka Small Scale Industries Association (KASSIA) to be included in the upcoming Union budget. 

The MSME body has also suggested restructuring and revival of MSME accounts classified as sub-standard assets, and to bring petrol and diesel under the GST ambit, as per the press release.

“A common regulatory body for micro and small enterprises instead of many agencies as prevailing now,” KASSIA said in a statement.

KASSIA has also demanded to raise credit guarantee cover under credit guarantee trust for micro and small enterprises (CGTMSE) to Rs 5 crore. 

Further it has urged for the extension of the scheme to State Financial Corporations and  renew credit-linked capital subsidy scheme for technology up-gradation (CLCSS) for two more years till 2023 and increase subsidy capped at Rs 15 lakh up to Rs 1 crore now to Rs.75 lakh up to Rs 5 crore.

It also pressed on no collateral to be insisted by Banks up to Rs. 5.00 crore. 

On the 2% interest subvention scheme for all GST-registered MSMEs for fresh and incremental loans, it has asked the government to push that for one more year.