Bizmen hail revival package, hope fine print won’t ruin it

Nagpur: Local industrialists are by and large happy over the measures announced by finance minister Nirmala Sitharaman for micro, small and medium enterprises (MSMEs). While some of their demands have not been met, they feel the package will be of great help in restarting their industries.
Nitin Lonkar, president of Butibori Manufacturers’ Association (BMA), told TOI that while the package was welcome the government should not impose conditions in the fine print, else it will become meaningless.
He said changing the definition of MSMEs would encourage industrialists to go in for expansion. “Government’s decision to pay provident fund (PF) for another three months is welcome and will be of great help to us. The decision to provide collateral free loans with one year moratorium to the tune of Rs 3 lakh crore is also welcome,” added the BMA chief.
He also expressed satisfaction over increase in limit of global tenders from Rs 100 crore to Rs 200 crore. “This will provide a level playing field to local players,” he added.
Pravin Tapadia, former president of Vidarbha Industries Association (VIA), said that industries would get direct as well as indirect benefits. “As government will guarantee them, banks will provide collateral free loans to us. Earlier, they used to hesitate in lending to us because they were afraid of losing their money,” he added.
He further said reduction in tax deduction at source (TDS) would increase liquidity in hands of entrepreneurs. “The decision to bear PF burden and reduction in PF contribution is also welcome,” he added.
“The decision to guarantee non-banking financial companies (NBFCs) loans will also help the economy as they will be able to lend more. The move to change the definition of MSMEs is most welcome,” said Tapadia.
Incumbent VIA chief Suresh Rathi said that all industrialists should welcome the package declared by the FM. “Now it is the turn of the state governments and local governments to do their bit. They should help the industries in reviving the economy,” he added.
Rathi said there were some grey areas that needed to be addressed by the state government. “For example, now that central government is providing me money will I be able to employ 100% workforce. If this is not so then what is the use,” he added.
MIDC Industries Association, Hingna (MIA) chief Chandrashekhar Shegaonkar, said that while the package was good for industries some demands had not been considered. “The government should have agreed to pay the April salary of workers. Moreover, the additional working capital loan should have been 50% and not 20%. The rate of interest should have been lower,” he added.