Banks urged to ease NPA norms

The National Confederation of Small Industry organised a seminar on restructuring of sick Micro Medium and Small Enterprise (MSME) units here recently.

Published: 31st July 2013 08:45 AM  |   Last Updated: 31st July 2013 08:46 AM   |  A+A-

CPI-leader-D-Pandian

The National Confederation of Small Industry organised a seminar on restructuring of sick Micro Medium and Small Enterprise (MSME) units here recently.

Speaking on the sidelines of the event, CPI leader Pandian said that in the past, MSMEs had recorded higher levels of exports than corporate companies. “Corporate firms retrench workers. MSMEs, on the other hand, create employment opportunities,” he noted.

Earlier, G K Basha, senior vice president, Industrial Estate Manufacturers Association, Guindy, said MSMEs in India account for 45 per cent of total exports while employing about 50 per cent of the workforce in the country. Tamil Nadu comprises 7.5 lakh MSME units, the highest in India. “But, stringent measures in the name of Surface Act, effected by banks have left MSMEs in a quandary,” he said and added that the seminar was primarily focused on this issue. 

According to him, a company that defaults on loan repayment continuously for three months is declared as a Non Performing Asset (NPA). “Presently, MSMEs all over India are facing various problems like power shortage and delayed payments by large scale industries,” he added. In such a scenario, the conditions enforced by the banks were making the functioning of MSMEs tougher. Basha sought banks to ease theirnorms, as it was done before 1995 for the survival of MSMEs.

Stay up to date on all the latest Chennai news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp