Lifeline for stressed MSMEs
Forty-five lakh MSMEs will benefit from the Rs.3 lakh crores collateral free automatic loans has been provided to the MSME units with 100 crores turnover for four-year term with a moratorium of 12 months, said FIEO President Sharad Kumar Saraf in welcoming the Government’s economic package.
Besides provisioning of Rs.20,000 crores as subordinate debt for stressed MSMEs will benefit 2 lakh units, he said, welcoming the expansion of MSME definition based on turnover and investment in the package.
Further infusion of Rs.50,000 crore equity into MSMEs as fund of funds along with non-allowance of global tenders up to Rs.200 crores are some of the steps appreciated by the industry as these would help increase their businesses.
All these initiatives will help in making these MSME units not only competitive but will also support them become global brands, added Saraf.
Special Liquidity Measures of Rs.30,000 crores for NBFCs/HFCs/MFIs besides Rs.45,000 crores Partial Credit Guarantee Scheme 2.0 for NBFCs will provide liquidity support and create confidence in the market, he noted.
The Rs.50,000 crores liquidity through TDS/TCS rate reduction and other direct tax measures will further help in releasing liquidity into the system, believe Saraf.
FIEO Chief is also of the view that the details of the economic package will not only help in spurring growth but will also help in building self-reliant India in the long-run resting on the five important pillars as announced by the Prime Minister in the form of quantum jump in the economy, infrastructure that became the identity of modern India, system driven by technology, vibrant demography and the strength of the Indian demand and supply chain.
Focus on factors of production is also the vision of the government through 4Ls (Land, Labour, Liquidity and Laws) as announced by the government which will help the overall trade and industry in ease of doing business in a big way, according to Saraf.
President FIEO said that the revised definition of MSME should ensure that none of the existing MSMEs lose their status. Therefore, if one of the twin criteria is breached, the unit should continue as a MSME, he pointed out. fiinews.com
