Centre's financial package game changer for industry: Krishna Bodanapu

Hyderabad: Industry bodies in Telangana and Andhra Pradesh hailed the announcement of Prime Minister Narendra Modi to provide Rs 20-lakh crore stimulus to economy on Tuesday and termed it as a game changer for the country. They also applauded the financial package announced by Finance Minister Nirmala Sitharaman for MSME sector.

"The announcement made by the Prime Minister Narendra Modi that the Centre would provide Rs 20 lakh crore stimulus to economy is a great move which will go a long way in addressing the problems of industrial and commercial segments. It will go a long way in reviving the economy," said APK Reddy, president, Federation of Small and Medium Enterprises of India (FSME India). He however underlined the need for the governments to do more to instill confidence among workers and entrepreneurs for the economy to be back on track. He also hailed the announcements of Finance Minister Nirmala Sitharaman to support key MSME sector.

The Telangana chapter of Confederation of Indian Industry (CII) felt that the package would provide much-needed relief to MSME sector. Thanking the Finance Minister for the comprehensive and well-planned financial package announced on Wednesday, Krishna Bodanapu, Chairman, CII Telangana, said it would provide the much needed relief to the stressed MSME sector. "One of the biggest relief announced is the collateral free automatic loans. The cap up to Rs 200 crore for global tenders will help the local MSMEs to compete with the big players," he explained. Also redefining the MSMEs will enable them to scale up without losing the benefits of MSMEs, he added.

Welcoming the announcements of Finance Minister, Manda Raja Mahender Reddy, president, Confederation of All India Small and Medium Pesticides Manufacturers' Association (CAPMA), said collateral-free loans worth Rs 3 lakh crore being offered to MSME sector is a laudable move. "New definition of MSME is good sign. They differentiated manufacturing and services sector separately. This will help the micro and small Industry," he said. Reddy however sought more support. "We expected the ESIC to pay 50 per cent salary to MSME employees. The Government of India should instruct the State governments to do this as the ESIC funds are available with the States."

Abhijith Jayanthi, co-convenor, CII Telangana MSME Panel, in his statement, thanked the central government for putting up a decisive step forward during these unprecedented times. "The quantum of support extended is definitely an encouraging step. Spelling out a cap on interest, to extend guarantee cover on principal and interest for up to 100 per cent shows the intent. Another announcement which will positively impact MSMEs is to restrict PSU tenders up to Rs 200 crore for local vendors – this will not only support the local MSMEs, but also will enable investment flows into our MSMEs," he observed.