The Centre's Atmanirbhar Bharat Abhiyaan package for MSMEs envisaging self-reliance to tide over the economic crisis triggered by COVID 19 pandemic has infused hopes for revival of sick fabrication units that had faced a drastic downslide over the years due to drastic fall in orders for BHEL.
While welcoming the package, the Tiruchi District Tiny and Small Scale Industries Association (TIDITSSIA) and BHEL Small Industries Association (BHELSIA) have urged the Centre to consider some more measures that would provide immediate succour to the units that were struggling to sustain manufacturing activities.
The main expectations of the small and medium industries, including interest subsidy on existing loans, waiver of interest during the lockdown period, and a one-time grant to meet salary of employees during the lockdown period ought to have been considered in the package, TIDITSSIA president R. Ilango said.
BHELSIA president Rajappa Rajkumar said that the package was a major relief for standard, stressed and NPA (Non-Performing Asset) units, referring to the allotment of ₹3 lakh crore of additional funds for growth of MSME sector; ₹ 20,000 crore for units that are stressed due to lockdown; allotment of ₹50,000 crore for the first time to take care of NPA units; and allotment of ₹ 10,000 crore as ‘Funds of Funds’.
Mr. Rajappa Rajkumar was also appreciative of the increase in investment limit of micro units from ₹. 25 lakh to ₹ 1 crore, ₹ 5 crore to ₹ 10 crore for small industries, and ₹ 10 crore to ₹ 25 crore for medium industries;
PF payment by the government for six months till August 2020; release of all receivables from PSU/ Government agencies to MSME within 45 days; domestic floating of government tender up to ₹200 crore; allotment of ₹90,000 crore for power corporation; and reduction of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) by 25%.
Mr. Rajappa Rajkumar urged the Government to prevail over banks to withhold legal action under SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest) Act for a further period of one year or till finalisation of the rehabilitation programme.
Stressed units must be permitted to pay GST, EPF, ESI dues in instalments of 12 to 24 months along with current payment. Penalty must not be levied for delayed payments as it would be a great strain under the present circumstances.
The MSME sector would be benefited substantially if its expertise and huge investments are utilised through attracting businesses from other countries, Mr. Rajappa Rajkumar said.
