Tiruchirapalli

MSME sector lauds Union Budget 2021

The MSME sector in the region has welcomed the Union Budget 2021 proposals as a timely booster to stem downslide in the economy.   | Photo Credit: M. Moorthy

The MSME sector in the region has welcomed the Union Budget 2021 proposals as a timely booster to stem downslide in the economy.

In particular, the formation of an asset reconstruction company will be set up to take over stressed loans has come in for appreciation of the MSME sector. The ‘Bad Bank’ is the need of the hour for sustenance of struggling units, Rajappa Rajkumar, president of BHEL Small Industries Association said.

The BHELSIA has been representing the issue repeatedly for the last one year. The ‘Bad Bank’ will serve the purpose of providing facilities for viable units, or to take necessary actions for selling the assets, Mr. Rajappa Rajkumar said.

Allotment of ₹ 15,700 crore for MSME would give a real boost to the sector. The allotment of ₹ 1.97 lakh crore for manufacturing sector will give a fillip to the economy and enable MSME units to get orders. "Overall, the Budget is very positive; the economy will grow well," Mr. Rajappa Rajkumar said.

The thrust given in the Budget for development of road infrastructure metro rail is laudable. The MSME sector was looking for formation of a Committee to address the problems caused by increase in raw material costs. The sector was also looking for an announcement on reduction of GST to five percent from 18 at present, reduction in interest rate on loans for manufacturing industries to eight percent, and permanent extension of duration for NPA settlement to 180 days.

The hopes for these reforms have been belied, R. Ilango, president of Tiruchi District Tiny and Small Scale Industries' Association said. The bad loan classification period that was changed from 90 days to 180 days during the pandemic period must be retained, Mr. Ilango said.

Reduction of import duties on steel items will help small industries that bore the brunt of steel price rise for the last six months to breathe easy. The increased capital expenditure for Railways will result in better orders for MSMEs in Tamil Nadu, V. Kannan, president of the Tiruchi district unit of Economic Cell - BJP, said.

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Printable version | Apr 10, 2021 4:42:29 PM | https://www.thehindu.com/news/cities/Tiruchirapalli/msme-sector-lauds-union-budget-2021/article33718829.ece

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