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FSME seeks Centre's support to MSMEs

FSME seeks Centre's support to MSMEs and Inside pic APK Reddy HIGHLIGHTS On the occasion of 75th lndependence Day, the Federation of Small and Medium Enterprises of India (FSME India) on Sunday urged Prime Minister Narendra Modi to immediately announce Rs 5 lakh-crore additional special package to revive the MSME sector Hyderabad: On the occasion of 75th lndependence Day, the Federation of Small and Medium Enterprises of India (FSME India) on Sunday urged Prime Minister Narendra Modi to immediately announce Rs 5 lakh-crore additional special package to revive the MSME sector. Centre took up several measures to support the MSMEs. But more needs to be done as the Covid-19 crisis has crippled the sector. Micro, Small and Medium Enterprises (MSMEs) have been playing key role in lndia's growth story. There are over 6.3 crore MSME units in lndia, which employ 12 crore people and produce over 8,000 types of products. The sector accounts for 45 per cent of manufacturing output, 40 per cent of exports and over 28 per cent of the country's GDP. Also Read - Indian Bank signs MoU with IIT Bombay for extending exclusive credit facility to Start-ups and MSMEs ADVERTISEMENT APK Reddy, President of the FSME lndia, said: "The country's key sector is now in doldrums as lockdowns triggered by the first and second waves of the pandemic and its associated curbs took heavy toll on the sector. Further, experts are warning about the third wave. If that happens, MSMEs will be at receiving end once again and face more troubles." He adds, "Lakhs of MSMEs will down their shutters and more small scale entrepreneurs will come on to roads if the Central Government doesn't come to their rescue and announce a Rs 5 lakh crore stimulus package exclusively for the key MSME sector. The Government should also announce other measures to revive the ailing sector." Also Read - 'MSMEs need most policy attention now' ADVERTISEMENT FSME lndia appeals the government to direct Reserve Bank of lndia to extend relief from NPA norms to at least 18 months from 180 days now." The RBI should set up exclusive State Level Bankers' Committee (SLBC) for industrial sector. Dr YS Rajashekar Reddy established industrial SLBC when he was Chief Minister for United Andhra Pradesh. Every State should emulate this," Reddy informed. He also demanded to clear all pending payments from public and private sector companies to MSMEs in Telugu states of Andhra Pradesh and Telangana. Like GST, the Central government should bring out a uniform industrial policy for all States. Industrial licenses should be regulated and permissions should be given to match demand scenario in the market. Excess supply will push many MSMEs into doldrums.