Seek change in classification of NPAs in bank lending to MSMEs, strict implementation of procurement policies

The MSME sector has demanded a reduction in interest rates on a par with housing loans, and a lower turnover limit for trade receivables in the e-Discounting System (TReDs).

A delegation of MSMEs led by C. R. Janardhana, President, Federation of the Karnataka Chamber of Commerce and Industry (FKCCI), met Nitin Gadkari, Minister for MSME, Road Transport and Shipping, and raised issues affecting the sector.

The team also sought a change in the classification of NPA norms in bank lending to MSMEs, strict implementation of Public Procurement Policies and enactment of Labour Law Reform and the Small Factories Act so that MSMEs were not compared with large industries while fixing minimum wages, and a reduction of GST on job works.

According to Janardhana, “the minister said he was aware of the issues faced by the MSMEs. There are policies in the making for the development of rural areas, the agricultural sector and MSMEs.”

Gadkari said Karnataka was an industrially developed state and welcomed suggestions from industry bodies on the issues faced by them.

He said there was a need to boost export industries and reduce imports. The Government was willing to support industries, which manufactured native products as import substitutes.

Gadkari also said the Government was trying resolve the problem related to Mangalore Port. He also said Karnataka should consider acquisition of land for highways on the outskirts, so that land acquisition was easier and less expensive. This would also enable the development of rural areas. He cited the example of the eight-lane highway connecting Mumbai to New Delhi through the backward/ tribal areas, which has saved over Rs 16,000 crore in land acquisition cost.

He requested the stakeholders to their industrial concerns through their associations and assured them that the same would be resolved.

Published On : 10-12-2019

Source : The Hindu Businessline