More incentives for MSMEs sought

Hyderabad: Pointing out that there was no adequate allocation of funds for industrial sector in the budget presented by Telangana government on Wednesday, Federation of Small and Medium Enterprises of India (FSME) urged the government to allocate more funds and incentives for the sector including MSMEs.

“Barring Rs 200 crore for SC/ST entrepreneurs, there is nothing much in the budget for the industrial sector particularly the MSME sector which has suffered immensely due to political uncertainty and mishandling of power situation by the previous regime,” said APK Reddy, president, FSME.

He urged the government to allocate adequate funds for disbursement of pending subsidies totaling Rs 700 crore. “In addition, the government should extend 30 per cent subsidy on the diesel generator sets to be bought by micro, small and medium enterprises to tide over the power crisis.

The government should also remove VAT on diesel and generator sets to lessen the financial burden on the MSMEs,” he said.

Reddy further said these incentives should be extended for both existing and new companies. “Then only, Telangana State can attract new investments,” he maintained.