No steps for raising ease of doing biz: Industrialists

Local industrialists feel the interim budget is a mixed bag for them. While a few positive steps have been taken, there are no major policy decisions. However, most of them said this was an interim budget hence they did not have much expectations from it.
Atul Pande, president of Vidarbha Industries Association (VIA), gave it a rating of 5 on a scale of 10.

The biggest boost for micro, small and medium enterprises (MSMEs) is 2% interest subvention in bank loans. This is applicable for loans up to Rs1 crore. “State government gives 5% subvention to new industries under its special package. With this central sop, a new industry taking loan up to Rs1 crore will get it at a rate of 5% instead of 12%. This is a huge help as most MSMEs don’t take a loan above Rs1 crore,” said Pande.

The VIA chief further said that a loan up to Rs1 crore will get in-principle sanction within 59 minutes. “The disbursement will take some time, but this is a good step. However, this should actually happen,” he added.

Former VIA chief Pravin Tapadia said that from next financial year, employees getting salary up to Rs21,000 per month will have to be compulsorily paid bonus at the rate of 8.33%. “Earlier, this figure was Rs11,000. Moreover, employees earning up to Rs21,000 will compulsorily get Employees State Insurance Corporation (ESIC) cover. Here too, the limit was earlier Rs11,000. The two steps will burden the industries but we have no regrets,” he added.

Pande, Tapadia and other industrialists, however, were disappointed that the government did not announce any steps for increasing ease of doing business. “All the previous measures announced by the government have remained on paper. Nothing much has changed at ground level. The government should have spelled out steps to implement the measures,” they said.

Pande said that government has increased allocation for roads, railways and defence sectors. “The allocation under Pradhan Mantri Gram Sadak Yojana (PMGSY) has been increased from Rs15,500 crore to Rs19,000 crore. The allocation for railways has increased from Rs53,000 crore to Rs64,587 crore. The money sanctioned for defence is over Rs3 lakh crore. All this extra money will ultimately benefit the industries. As per new rules, any foreign supplier of defence equipment has to buy 40% of materials from India,” he added.

Reeta Lanjewar, president of VIA Lady Entrepreneurs Wing, said that there were no special concessions for female entrepreneurs in the budget. “There was nothing last year too. However, we are now used to getting at par treatment with men. The tax concession for middle class is a welcome step,” she added.

INFOGX

Reduction in 2% interest rate on bank loans up to Rs1 crore welcome

In-principle sanction to loans up to Rs1 crore within 59 minutes welcome

More employees to get bonus and ESIC benefit. This will burden industries

More investment in roads, railways and defence to boost industrial production

No sops for female entrepreneurs