Industrial Clusters: MSMEs Urge Centre, States To Provide More Funds for Infra
They also complained about the interest rate of 25 paise where the bankers extend loans, and wanted this to be implemented properly.
Vijayawada: The Micro, Small and Medium Enterprises (MSMEs) have urged the Central and state governments to allot more funds for infrastructure development for industrial clusters in Andhra Pradesh and Telangana.
It also pleaded for sanction of loans at low interest rate and provide incentives to attract more youths to set up units and give a major fillip to industrial production in both Andhra Pradesh and Telangana.
The MSMEs welcomed the Centre’s allocation of Rs 10,000 crore for MSMEs across the country in the Union Budget. It sought allocation of an additional Rs 3,000 crore each for AP and TG to help them develop infrastructure for industrial clusters. “It requires a minimum of Rs 40 crore to develop the industrial infrastructure in a 100 acres-area.”
With regard to loan repayment to the bankers, the MSMEs alleged that though they were supposed to repay the loan they availed within 90 days, the bankers start troubling them within 30 days and at times declare the units under NPA. They pleaded for developing infrastructure in industrial clusters under Ease of Doing Business and help provide skills to the unemployed youths so that it would help generate more employment.
Referring to the norm that both the Central and state governments sanction grant of funds in the ratio of 80 and 20 per cent respectively to develop industrial clusters, it said the state government is not giving the matching grant. Hence, the MSMEs urged the central government to sanction 100 per cent grant.
The MSMEs complained about high tarrif to the tune of Rs 7 to Rs 8 per unit of power and appealed to the state government to bring it down to Rs 2 per unit and reimburse the balance amount to the Discoms to ensure they should not suffer revenue loss.
They also complained about the interest rate of 25 paise where the bankers extend loans, and wanted this to be implemented properly.
They called for extension of farm loans through NABARD at relatively low interest rate so that it would help farmer-producer organisations to avail loans and invest in cultivation of agriculture and horticulture crops to give a fillip to farm produce in both the states.
National president of the federation of small and medium enterprises of India, A.P.K. Reddy said, “We urge the Central government to allocate more funds for the MSME sector in both AP and TG so that it helps develop infrastructure. If both the states extend more incentives, it would help attract more youths to set up units and give a major boost to industrial and farm production.”
