The trade body, in its memorandum submitted to Giriraj Singh, Union Minister of State for Micro, Small & Medium Enterprises (MSME), recently said permission for online submission under the Credit Linked Capital Subsidy Scheme (CLCSS) Scheme would ensure better co-ordination between the concerned banks and SIDBI, in view of the fact that 50 per cent of the claims were rejected on flimsy and minor procedural grounds.
According to A Padmanabha, Vice-President of KASSIA, increased funding must be made for technology upgradation from Rs 1 crore to Rs 5 crore under CLCSS Scheme, in view of the high machinery cost. Also, enhancing the credit limit under Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) Scheme from Rs 1 crore to Rs 3 crore was essential, to effectively meet credit needs of MSMEs, he explained.
KASSIA batted for putting in place an e-platform for payments to be made by large industrial units and PSUs to their MSME suppliers, so that they are made within the prescribed period of 45 days, to avoid overwhelming delays in payments that affected the very survival of MSMEs.
KASSIA President VK Dikshit said MSMEs look forward to the Prabhat Kumar Committee, formed to frame a new national policy, submitting its report.
He lauded the budgetary allocation of Rs 1.80 lakh crore for Mudra and SMILE Schemes, and other initiatives such as Digital India, Skill India, Make in India and Startup India, which would spur the growth of MSMEs.
Source: Business Line