The Telangana MSMEs have urged the state BJP President Dr K Laxman to urge the Centre to intervene for Revival and Rehabilitation of incipient Sick Units in MSME Sector and creation of Rs 2000 crore corpus fund for the same.
In this regard, the Federation of Small and Medium Entrepreneurs (FSME) has made a representation to Laxman, MLA and President, BJP, Telangana State, requesting him to take up the issue with the Central Government for Revival and Rehabilitation of incipient Sick Units in MSME Sector.
The Federation has also handed over a copy of the memorandum, submitted earlier by FSME India to Prime Minister Narendra Modi, recommending for creation of a Rs. 2,000 Crore Corpus Fund for this.
The sectors that have been affected due to the Power Crisis during 2009-14 includes-Rice Mills; Granite Industry in Khammam District; Jute Industry; Foundries and Ferro alloys; and Handlooms and textiles.
“Due to the Power Crisis during 2009-14, the Small Enterprises could not operate their factories to full capacity, resulting in loss of Sales Revenue, due to the factors beyond their control. The Banks have declared the Units NPA and the Units are facing SARFAESI Act proceedings from the banks for recovery of the loans,” said National President, FSME, A P K Reddy.
“We made a representation to the Central Government to intervene and instruct the banks to withdraw the Court cases initiated against the small entrepreneurs and take up measures for Revival & Rehabilitation of the Sick Units. We have also requested the Central Government to increase the Corpus Fund from Rs. 100 Cr to 2,000 Crores for Revival of the Sick Industries,” Reddy added.
In order to provide a simpler and faster mechanism to address the stress in the accounts of MSMEs and to facilitate the promotion and development of MSMEs, the Ministry of MSME had issued a Gazette Notification dated May 29, 2015 for Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises.
Further, Reserve Bank of India in consultation with Ministry of MSME has also issued circular Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises” vide circular dated March 17, 2016 to all the scheduled commercial banks excluding Regional Rural Banks (RRBs).
The RBI has asked the banks that the Board approved policy to operationalize the Framework may be put in place by the banks not later than June 30, 2016.
Source- Knn India
