The trade and industry bodies in Kerala have welcomed the State’s revised budget presented on Friday, saying that continuation of policies will instil confidence in the investors who are looking at Kerala as a destination.
K.Harikumar, President, Cochin Chamber of Commerce & Industry, said the proposal to have a venture capital fund of ₹100 crore will enable aspiring entrepreneurs, who are otherwise not eligible for institutional financial support, to pursue their dreams and give a fillip to the startup ecosystem. This will also generate jobs for the future generations.
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On the industry front, he said the move to increase the loan portfolio of KFC to ₹10,000 crore in five years and increase the loan limit by 40 per cent will definitely give a boost to MSME sector, which incidentally is the 12th largest in the State and employs 45 lakh people with more than 23 lakh units.
Extending the validity of the amnesty scheme on sales tax will enable businessmen to avail of the scheme, once their business picks up momentum once the pandemic situation eases, he said.
Covid package welcomed
Sreenath Vishnu, Chairman, CII-Kerala said the announcement of the ₹20,000 crore package to tide over the crisis induced by the second wave of Covid-19 is a welcome move. The decision to set aside ₹1,000 crore to provide free vaccination and an additional ₹500 crore set aside to ensure related equipment and facilities for free vaccination, is appreciable. The decision to disburse ₹8,900 crore directly to people facing loss of livelihood and ₹8,300 crore towards interest subsidy for loans will help to rejuvenate the economy, he added.
Adeeb Ahamed, Managing Director, LuLu Financial Group and Twenty14 Holdings said the budget has placed the right emphasis on improving the prospects of the battered tourism sector. The provision to provide low interest loans for the tourism sector will go a long way towards channelling working capital, which is the most essential thing for businesses to sustain in these challenging times.
Akshay Agarwal, President of Indian Chamber of Commerce and Industry, said the budget has not made any substantial allotment for the revival and rejuvenation of trade and other commercial establishments, who have been closed down in the pandemic period.