Lucknow, Jan 18 (KNN) Micro, small and medium enterprises (MSMEs) in Uttar Pradesh have voiced for a separate provision to address their banking and loan needs in the much anticipated union budget. 

Ashok Kumar Agarwal, President, Indian Industries Association (IIA) told KNN India in an exclusive interview that centre and state government in their own capacity should address the issues faced by MSMEs while availing loans. 

Stating the realities of MSMEs and their hardships to access credit despite policies and schemes, Agarwal said, “To support MSMEs financially, the government must announce interest rate on loans not exceeding 5 per cent.” 

He further urged the government to consider setting the electricity tariff at a competitive rate for micro and small enterprises (MSEs). 

“The MSME sector is not asking for freebies or complete waiver, but we request lowering of electricity rate for micro and small industries,” said Agarwal who expressed confidence in MSMEs to garner over 1 lakh crore investments ahead of the UP Global Investors Summit. 

Laying out the expectations of businesses in Noida, Sushil Kumar Singhal, President, Distributors Association of Noida told KNN India, “Government should centralise the licensing and taxation process which will bring much relief to entrepreneurs who are unnecessarily burdened with compliance.”

Singhal also opined that the government needs to focus more on creating a business friendly environment for MSMEs, as he added, “The business ecosystem in Uttar Pradesh is average and government should enhance it as it will only benefit them with higher tax collection.”

Reflecting on GST, he said that businesspersons do not have any problem in paying taxes but the harassment by officials on assessment must be stopped.    (KNN Bureau)