KTR seeks from centre moratorium on loans to MSMEs

HYDERABAD: Industries Minister K. T. Rama Rao on Wednesday urged union government to support the MSME sector in Telangana.

In a letter to union finance minister Nirmala Sitharaman, he said while incidence of Covid-19 is declining sharply in the country and there are chances of a modest economic recovery towards Q4 of this year, the MSME sector still requires support.

Rama Rao observed, “Looking at serious loss of business and declining revenues of MSMEs, it will be justified if there is a moratorium on loans availed by MSMEs till March 31, 2022; without accrual of any interest during the moratorium period.”

He said such a support will provide a big relief for MSMEs and can help them get back to normalcy.

The minister pointed out that Hyderabad and its surrounding districts have been major hubs for manufacturing since past five decades, with a predominance of MSME industries. But due to pandemic-induced restrictions and disruptions since last year, MSMEs have been badly affected.

“Though Telangana government has not placed any restrictions on industrial activities during the second wave of pandemic, curbs in surrounding states have had a major impact on functioning of MSME industries in Telangana,” he pointed out.

Rama Rao stated that many of these industries have faced challenges in procurement of raw materials and sending out finished products to their customers. More so, there has been slowdown in industrial activities due to shortage of labour that typically comes to Telangana from other states.

In this context, the minister appealed to centre that it take up measures that support MSMEs.