Kassia urges Fin Min to look into MSME issues | SupportBiz

News

Kassia urges Fin Min to look into MSME issues

 
The members of the Karnataka Small Scale Industries Association (Kassia) have recently met Union Finance Minister P. Chidambaram to hand over a memorandum, urging him to look into the issues the MSMEs sector is facing via the ‘High Power Task Force’ and also suggested remedial measures for the sector, reports Business Line.

The members who met Chidambaram are C.M. Rajamane, Vice-President; A. Padmanabha, general secretary; R. Hanumanthe Gowda, joint secretary and R. Raju, treasurer of Kassia.

According to Kassia, the main reasons hindering the growth of the sector are lack of infrastructure, skill and labour shortages, inadequate funds and inappropriate interest rates, poor connectivity etc. “Emergent measures are warranted at this juncture. We appeal to you to study the issues through the High Power Task Force. To take note of the multifarious problematic issues faced by us and evolve remedial measures on war-footing,” Kassia said in the memorandum.

The memorandum also read, “Absence of immediate corrective action at this stage will result in greater damage to the nation’s economy. We solicit your valuable intervention to straighten the worsening trend of the MSME Sector towards to directing its course to safe and prosperous directions.”

The Association has also recommended certain measures for the betterment of the sector like, two per cent interest subvention for loans for one year, implementation of scheme to fund state and central public sector units to clear payments pending beyond six months for supplies made, releasing 20 per cent extra loan for all borrowers without further formalities and restructuring of NPA loan cases for a further period of six months. B.P. Sashidhar, President of Kassia is hopeful that the suggested steps will work as a live-saver for the ailing sector.