AIMO seeks clarity on financial package for MSMEs, Retail News, ET Retail

AIMO seeks clarity on financial package for MSMEsMUMBAI: All India Manufacturers Organisation (AIMO), an apex trade body focused on the interests of the micro, small and medium enterprises (MSME) sector, has sought clarifications on the recently announced financial package meant to revive MSMEs.

In a statement to the media, AIMO said: “Almost 90% of our members are confused on the methodology. While we appreciate and thank the FM and PM for bringing the needs of MSME’s in the limelight, on speaking to our members of various MSME associations and Industrialists across india, they are unanimous in their opinion that the package needs more clarity.”

K E Raghunathan, immediate past president, AIMO, said: “In the 13th May announcement, our FM has said that over about 50 lakh MSMEs will benefit from Rs 3.0 lakh crore package and other announcements. The total number of MSMEs that operate in India is in excess of 6 crore and the present package will not even cover 8% of the total number of MSMEs. Our members would like to know if there is another package for our sector. Uncertainty has been the biggest fear of MSME’s post the Covid19 lockdown.”

Raghunathan said about 63% of the dues pending for payment for MSMEs is from state governments and their undertakings. “Can our FM kindly issue a protocol for state governments to follow for settlement of MSME dues? Can our FM immediately release payments to states and impress upon them to pay the MSME dues immediately?“ said Raghunathan.

The members of AIMO feel that mere extension of loan alone will not be a solution, but enabling MSME repay them is also equally important.

On start-up’s, which account for over 19% of the MSME’s in the country, Kenny Ramanand, national secretary, AIMO, said, “Members from the start-up community require clarity on how start up enterprises who do not have any bank facility till date will benefit from the financial package.”

On the announcement of the `no global tender below Rs 200 crore’, AIMO members are not sure whether Indian traders and Indian representatives of foreign companies will be eligible or kept away from participation.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *