May 16th 2020, Chennai: All India Manufacturers Organisation, ( AIMO ) an Apex trade body focused on the interests of the MSME sector today made an earnest appeal to the FM for clarifications on the announcements on financial package for revival of MSME’s made a few days ago. Almost 90% of our members are confused on the methodology. While we appreciate and thank the FM and PM for bringing the needs of MSME’ sin the limelight, on speaking to our members of various MSME associations and Industrialists across india, they are unanimous in their opinion that the package needs more clarity.
According to K E Raghunathan , Immediate Past President, AIMO “ In the 13th May Announcement, our FM has said that over about 50 lakh MSME will benefit from Rs.3.0 lakhs crores package and other announcements , the total number of MSME’s that operate in India is in excess of 6 crores and the present package will not even cover 8% of the total number of MSME’s , our members would like to know if there is another package for OUR sector.Uncertainty has been the biggest fear of MSME’s post the Covid19 lockdown.”
“ Start-up’s account for over 19% of the MSME’s in the country and they are OUR future. Members from the Start Up Community require clarity on how Start up enterprises who do not have any bank facility till date will benefit from the financial package announced by the FM. “added Kenny Ramanand , National Secretary, AIMO
“ Also about 63% of the dues pending for payment for MSME’s is from State Governments and their undertakings. Our members have conveyed that there is a conflicting message from some State Governments who conveniently flash the ‘NO FUNDS’ placard . Can our FM kindly issue a protocol for State Governments to follow for settlement of MSME dues? Can our FM immediately release payments to States and impress upon them to pay the MSME dues immediately?“continued Raghunathan
“ The MSME segment awaits announcements concerning burning issues such as EMI payments starting from June 1st , clarity on payment for salaries , regularisation of existing NPA accounts by restructuring them , ceiling and eligibility on ‘additional loans’ being offered , methodology on managing Fund of Funds , exemption from ESI and GST payments for MSME” Raghunathan added
“ On the announcement on the NO Global Tendor below Rs 200 crores, AIMO Members also request clarity whether Indian Traders and Indian representatives of foreign companies will be eligible or kept away from participation. If the thrust is on Indian products then is there a workable methodology or protocol in place for technology partnerships to allow Indian companies to manufacture the same in India.“ Ramanand continued
The members of AIMO feel that mere extension of loan alone will not be a solution, but enabling MSME repay them is also equally important. The Finance Ministry will have to work closely with the MSME ,Labour and Employment, Technology and all Ministries to offer more comprehensive packages.” Concluded Raghunathan