HYDERABAD: Minister for IT and MA&UD, KT Rama Rao on Thursday said that banks are invoking SARFAESI Act ruthlessly against MSMEs as soon as they miss out on paying one or two loan instalments.
Rama Rao that he will speak to senior officials of banks in the state and raise this issue in the State Level Bankers Committee (SLBC) meeting as well, asking them to give enough time to the Micro, Small and Medium Enterprises (MSMEs) to pay back their loans.
Speaking at the event of launch of the programme for second batch of candidates under the Chief Minister Scheduled Tribe Entrepreneurship and Innovation Scheme at the Indian School of Business, the minister said that 70 per cent of the jobs are now in the private sector and the MSMEs are playing a major role in job creation.
In such a scenario, every possible support should be provided to the MSMEs so that they sustain and continue to operate, he said. He also promised the ST entrepreneurs that once they start their businesses, he will personally come along with a celebrity for the inauguration of their business units.