The BHEL Small Scale Industries Association (BHELSIA) and Tamil Nadu Boilers Association have placed a charter demands to the Union government seeking a rehabilitation scheme and various concessions to the sick fabrication units in Tiruchi.
Drawing the attention of the Centre to the critical situation faced by the fabrication units due to recession over the past four years, Rajappa Rajkumar, president, BHELSIA, submitted a representation to the Union Minister for MSME Nitin Gadkari recently, seeking an effective rehabilitation package for the revival of the units.
Mr. Rajkumar said that the sick MSME units could not pay the Goods and Services Tax and Provident Fund contributions due to non-receipt of payments from their customers.
“The GST registration of the defaulting units should not be cancelled and they should be allowed to pay the arrears in instalments,” Mr.Rajkumar demanded. This, he said, was essential to help the units continue their business.
Similarly, the sick units should be allowed to pay the arrears in PF contributions in easy instalments along with their current payments without additional interest of penalty.
Seeking changes in the procurement policy of public sector undertakings especially BHEL, Mr. Rajappa contended that the present policy and the tendering process framed were against the interest of the MSME units. “We have submitted various suggestions and the Minister has assured to send his recommendations to Heavy Industries Ministry and BHEL,” Mr. Rajkumar said.
A rehabilitation programme has to be sanctioned for units under stress and those which have turned non performing assets due to the general recession over the past four years. “Until such a viable programme is implemented, all the legal process has to be stopped,” Mr. Rajkumar said and added that he was given to understand that the MSME and Finance Ministries were preparing a proposal based on the association suggestions and it is likely to be sent to the Cabinet for approval soon.