Hyderabad: Micro, small and medium enterprises (MSMEs) around the city are still awaiting Rs 2,800 crore worth of incentives promised to them five years ago.

Though the funds were cleared by the State Level Steering Committee, the government is yet to release the amount, leaving many units in the lurch. 

“We have given several representations to the government, but are still awaiting the release of funds,” an entrepreneur from Jeedimetla told TOI.

Sources said the percentage of non-performing assets in micro and small units has gone up to 19 per cent as per the latest reports from banks. “This surely requires some urgent attention. Many entrepreneurs take up the risk of setting up units in the highly-competitive market hoping they will be incentivised. The problems their units are currently facing will be greatly reduced if the promised funds are released,” a source said. 

There are about 10,000 MSMEs in and around Hyderabad, of which 7,000 are small and micro units. In addition to the delay in receipt of incentives, manufacturing units are being bogged down by the insistence of them securing trade license. “Many units are yet to receive over Rs 20 lakh. The Karnataka government has allowed manufacturing units to function without trade licence. Permitting units here to do the same will be greatly helpful,” they said.

Published On : 12-05-2019

Source : Times of India