FTCCI welcomes FM's announcements for MSMEs

The Federation of Telangana Chambers of Commerce and Industry (FTCCI) on Wednesday welcomed stimulas measures announced by Finance Minister Nirmala Sitharaman for MSMEs sector.

The measures, including clearing the dues of MSMEs, increasing the investment and turnover limits and collateral- free loans for small businesses, were a good move and would provide liquidity, federation president Karunenda S Jasti said. ...even if we assume that whatever we have seen today is the beginning, they have done a  decent job in terms of giving more liquidity to the MSMEs per se, mostly," he told PTI.

The announcement of Rs three lakh crore collateral-free loans for small businesses was an important measure, he said.

The most important thing is the government agreed to clear all the dues to MSMEs from the government as well as the Public Sector Enterprises which would be into lakhs of crores as on today, which is languishing with them and without any interest or anything. This money if it is paid to the industry, it will create liquidity in the industry, he said.

Jasti, however, expressed disappointment over the government sticking to its old stand vis-a-vis EPF as the industry wanted it to be uniform (without riders) for the entire MSME sector.

With the power discoms being infused with funds, he said the state government should waive fixed charges which have become a burden on the industry.

State president of BJP and MP Bandi Sanjay Kumar welcomed the Finance Minister's announcements, saying these will give a big boost to the MSME sector. The Centre on Wednesday announced about Rs 6 lakh crore package, including Rs 3 lakh crore of collateral-free loans for small businesses and a Rs 30,000 crore lifeline to non- bank and housing finance companies as part of measures to help the economy tide over disruptions caused by the coronavirus lockdown.