No allotments to revive sick small and micro units

 

Chennai:

Micro Small and Medium Enterprises have expressed disappointment with the budget stating there is no significant allotments or proposals to revive sick small and micro units.

Tamil Nadu Small and Tiny Industries Association (TANSTIA) president K Gopalakrishnan said that there is no significant allotments or proposal to revive sick Small and Micro units besides no reduction in the bank interest and no new proposal for the development of MSMEs.

“It is totally a disappointment Budget for the  Small and Micro Enterprises,” he said.

However, he did welcome the interest reduction for the

handloom weavers,  apparel  park in the  Scheme for Integrated Parks (SIPS) and also gesture for extending the Technology Fund Scheme (TUFS).

Alok Saraf, executive director - private and entrepreneurial group, PwC India, said, “A reason to cheer for the sector as raising finance and capital has been made easier - listing without following cumbersome IPO process and refinancing capability of Small Industries Development Bank of India doubled to Rs 10,000 crores.

Continuity of non-tax benefits for three years after out-growing MSME category and additional tax deduction of 15 per cent on investment will encourage capacity building, thereby boosting the economy, he said.

Proposal to qualify contribution to approved schemes of Ministry of MSME as Corporate Social Responsibility expenditure will aid the sector, he added.