Industrialists demand more incentives

Various industrial associations held a meeting with Madhav Lal, development commissioner, MSME, Government of India, at Chamber of Industrial and Commercial Undertakings (CICU) Complex, Ludhiana to apprise him of the industry’s need for more incentives.

He said that to be globally competitive, Indian MSMEs have to learn and absorb the process of innovation on war footing. Inderjit Singh Pardhan, president CICU and chairman Small Industry Development Board, Punjab, emphasized that a proper mechanism should be introduced by Government of India to regulate the prices of industrial raw-material.

The associations jointly presented a memorandum to the development commissioner to enable MSME industry turn more competitive in domestic as well as international market. The memorandum emphasized upon the need for enhancing ceiling on loans under credit-linked subsidy scheme from Rs 1 crore to 3 crore and rate of subsidy from 15% to 20% for modernization and technology up gradation.

The industry further demanded that in order to assist MSMEs and other prospective entrepreneurs to have access to best practices, capital ceiling under TUF (technology upgradation fund) should be enhanced from Rs 2 crore to Rs 5 crore with 25% capital subsidy to provide a world class marketing support platform to MSMEs in order to reach international and global markets. Pardhan demanded that this scheme should be extended to bicycle and bicycle parts industry which is facing similar difficulties and needs support to thrive in current meltdown.

Upkar Singh, joint secretary, CICU, said that Credit Guarantee Fund for Micro and Small Enterprises (CGTMSE) Trust Scheme for Collateral Free Loans are not customized and aligned with respect to the requirements of MSME Sector. “This scheme should be amended, so as to make the entire process of providing credit swift, transparent and well accessible,” he said. The industrialists further demanded that cost of modernization of facilities and equipment under capacity building, strengthening of database and advocacy should be enhanced from Rs 10 lakh to Rs 25 lakh taking into consideration the prevailing market price and availability of modern equipment informed Avtar Singh, general secretary, CICU. Madhav Lal, in his concluding remarks said that the various suggestions raised during this meeting will be considered. He agreed to introduce new schemes and revise existing schemes for speedy growth and development of MSME sector.