CHENNAI: Union Finance Minister Nirmala Sitharaman’s announcement of an economic package has garnered mixed responses. The Micro, Small and Medium Enterprises (MSME) units are relieved with the announcement, which includes six-point measures for the sector – collateral-free loans up to Rs 3 lakh, Rs 20,000 crore subordinate debt for stressed units, Rs 50,000 crore equity infusion, and disallowance of global tenders up to Rs 200 crore.
The extension of Employee Provident Fund (EPF) payments by the government for 3 months was also much appreciated. The icing on the cake for MSMEs was the relief for stressed units. Tiruchy, for instance, has more than 60 non-performing and an equal number of stressed units. “We have been fighting for the last 28 months for this, and it’s a welcome relief,” says Rajappa Rajkumar, president of BHEL Small & Medium Industries Association (BHELSIA).
The main concern, however, is the ground-level implementation. “While all of this looks good on paper, we hope the government gives a clear communication to banks,” says N Kanagasabapathy, former president of TIDITSSIA.
“Many times, banks are not implementing the measures due to lack of proper communication. We also have requested for help to pay the salaries of our employees for April and May.” Here’s how top industrialists in the State reacted to the measures...