VISAKHAPATNAM: The stimulus package announced by Union Finance Minister Nirmala Sitaraman for micro, small and medium enterprises (MSMEs) brought cheer to the sector, which was eagerly waiting for bailout package to kick-start production after the lockdown is lifted.
Speaking to TNIE on Wednesday, president of Visakhapatnam Autonagar Small-scale Industrialists Welfare Association Krishna Rao Mullapudi said the stimulus package would give a fillip to MSMEs, which were facing financial problems particularly after the lockdown.
“It is quite encouraging for the industry as a whole. Additional loans will be given without collateral security and that too with a good moratorium period. Easy payment conditions will help them. Even NPA and Stree accounts will get additional loans,” he explained.
He said the decision to give priority to MSMEs in tenders up to Rs 200 crore would give them more opportunities. There are over 2,000 industries in Visakhapatnam, largest in the State.
Chairman of Andhra Pradesh Chambers of Commerce and Traders Federation Sudheer Mulagada said the package would boost the industry.
“The chamber has been demanding the government to clear the dues for long and now the government decided to clear the dues of PSUs to MSMEs. However, the dues should be paid to them immediately,” he demanded.
Cost of capital should be brought down to prime lending rates for those who have a good track record. The package should be implemented with the same spirit and there should not be any hurdles in its implementation, he said.
Director AP chamber of commerce and president of Vizag Development Council O Naresh Kumar said Rs 3 lakh crore for MSMEs was not enough, given the huge number of 45 lakh MSMEs in the country.
“On an average, each MSME will hardly get Rs 6 lakh. The package for MSMEs should be doubled. Similarly, there is no clarity on fund support for PSUs to clear dues of MSMEs,” he rued.
The Centre should direct all State governments to clear dues to MSMEs as they owe Rs 10 lakh crore to MSMEs across the country. AK Balajee, chairman of Gurrampalem Industrial Local Authority, said the package was quite encouraging.
“Burden of PF on MSMEs will come down. The moratorium on additional loans for 12 months is also a good move. It will bring cheer to the industry, which looking for a hand-holding. The payment of dues from PSUs will give much needed breather to MSMEs,” he said.
Pydah Krishna Prasad, president elect of AP Chamber of Commerce and Industry Federation, said the new definition of MSMEs will benefit more industries.