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SIEMA welcomes the budget announcements also expects few more representations to be taken up

SIEMA welcomes the budget announcements also expects few more representations to be taken up

SIEMA

SIEMA in a press release from the President’s Office on behalf of SIEMA welcomed some of the salient features of the budget that would help the SMEs in the region but still feels that some representations have to be taken up like that of increase in working capital limit from 25% of turnover to 40% which will help the SMEs who are facing a cash crunch in this region.

siema

The Southern India Engg Manufacturers’ Association (SIEMA) welcomes the following announcements from the budget:

1. Establishment of a National Manufacturing Mission for which the details are awaited.
2. Increase of the credit guarantee scheme for MSMEs from 5cr to 10cr. This would help the struggling MSMEs to recover.
3. Issuance of credit cards with limit of Rs 5 lacs to Micro industries. This would enable the micro industrialists to utilise the credit for their day to day operations without being dependent on banks.
4. Investment in building an ecosystem for development of solar cells, batteries, solar motors and solar controllers. This would reduce our dependence on China.
5. Extension of Jal Jeevan Mission till 2028 to cover 140 crore households. Coimbatore pump industries would get benefitted since pumpset is the main product used for this project.
6. Centralised KYC. Instead of doing KYC with each and every bank, a centralised KYC would tremendously reduce hassle for end user.
7. Increase in timeline for making corrections to IT returns from 2 years to 4 years.

See Also

Some of the expectations that were represented to the Govt that were not met:

1. Increase in working capital limit from 25% of turnover to 40%. This is essential now since the turnover of most MSMEs have dropped and are facing a capital crunch.
2. Interest subvention to stressed accounts. Govt should consider this since MSMEs are struggling to cope with the reduced demand and increased cost of capital.

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