: The Union Budget 2022 has been a let down for the MSME sector, according to representatives of industry organisations in the region.
Establishment of the Bad Bank or the National Asset Reconstruction Company Limited is not going to resolve the crisis plaguing the MSME sector.
“Though financial assistance extended during the pandemic period did enable industries to stave off the sustenance problems, continued survival will be tough without waiver of dues. The new loans have only added to the financial burden of MSMEs,” Rajappa Rajkumar, president of BHEL Small Industries' Association said.
The current practice of 'naming and shaming' defaulters, under the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act must be withdrawn, and the Act must be invoked only for units with turnover in excess of ₹25 crore.
"Beleaguered proprietors of the hitherto successful units who had been providing employment ought to be treated with dignity," Mr. Rajappa Rajkumar said.
Instead of rolling out schemes for start of new enterprises the revival of existing sick units ought to be prioritised considering that the promoters had made investments on infrastructure for capacity addition. "The reality is that second generation entrepreneurs are hesitant to take up the mantle," Mr. Rajappa Rajkumar.
The Nagapattinam District Small and Tiny Industries Association president V. Ramachandiran said the Budget was a disappointment since there was no reference to the travails being faced by the MSME sector due to the drastic rise in the cost of inputs.
The Budget has caused a sense of dismay since there was no reduction in GST rates for MSME while an attractive reduction had been made from 12 to seven per cent for corporates, Mr. Ramachandiran said.
