VASCO
Goa State Industries Association (GSIA) President Damodar Kochkar on Tuesday said the central government initiatives for the growth of Medium Small and Micro Enterprise (MSME) were not percolated uniformly to the states.
In a press release, Kochkar said MSMEs are said to be the backbone of any economy, and provide highest employment opportunities and develop entrepreneurship.
"In the recent past, the central government has come out with many initiatives to help in the growth of MSMEs. However, many of their initiatives are not percolated uniformly down to the States. The MSMEs face difficulties like not getting timely credit facilities from banks and many banks are reluctant to entertain MSMEs for fear of creating NPAs and insist security-based credit facilities.”
“The threshold limit for collateral-free loans should be increased from present Rs 1 crore to Rs 2 crore. The government must strengthen Delayed Payment System by imposing a heavy fine on defaulting companies/PSUs and Government Departments.”
Kochkar also said the MSE Facilitation Council should be strengthened to have recovery powers.
“Effective interest rates on MSME finance should be reduced to around 4 to 5% by introducing interest subvention scheme. Production Linked Incentive Scheme (PLI) should be extended to more sectors.”
“Participation in TReDs is restricted to companies with turnover of above Rs 250 crore. The threshold limit should be reduced. Initiatives of EoDB in the State should be closely monitored by the Central Authority,” said Kochkar.
