National lockdown due to Covid-19 pandemic had really affected micro, small and medium enterprises. Without steady income they find it difficult to pay interest for loans taken from banks and even pay salaries to employees. Realising the significance of giving a helping hand to these industries, Union Finance minister had announced Rs 3 lakh crore collateral free automatic loans  for business including  micro small and medium enterprises and other businesses. The announcement under Atmanirbhar Bharat Abhiyan has given a new lease of life to these small industries.  Rs 50,000 crore equity infusion through  MSME  Fund of funds   was also announced which will help the revival of companies. M Singaravel of  Ami Engineering works,  manufaturers of home appliances says  that Finance minister announcement that collateral free  loans  will be provided will help the small enterprises. 

Further   industrialists welcomed the decision to enforce the order that MSME receivables from government will be released in 45 days. This will be very useful  for the lockdown affected small enterprises. The announcement of Finance Minister that there will be no global tenders for goods services has been widely welcomed. The enterprises say that this should be extended for at least two years and if global company comes then they should be insisted to make the products in India itself. Moreover this will lead to growth of ancillary units in India. Government has allowed companies with turnover up to Rs 5 crore to pay GST after six months. Companies say that there should not be any limit and all small and medium enterprises should be allowed to pay GST after six months.

 

BHEL Small Industries Association –BHELSIA Tiruchirapalli has welcomed the announcements made for stressed units. Rs 20,000 crore subordinate debt for two lakh MSMEs which have  Non-performing assets or stressed was announced by Union Finance Minister. Banks are expected to give subordinate debt to MSMEs equivalent to 15 per cent of stake up to a maximum of Rs 75 lakh.

Small enterprises have also welcomed government decision that  EPF contribution worth Rs 2,500 crore for employees and employers  will be extended for three more months up to August. Government has also decided to reduce statutory PF contribution from 12 per cent to 10 per cent for 3 months to infuse liquidity up to Rs.6750 crores. 

Krishnamurthy, Director of a private company appreciated the government decision to contribute EPF as the MSMEs are badly affected by lockdown.   

Tiruchi District Tiny and Small Industries Association TIDITSSIA president R Ilango said that the announcements made by Union Finance Minister Smt Nirmala Sitharaman are  very useful to boost the confidence of  MSME units  in a difficult time. He said that small and medium enterprises were hoping for more such help   including waiving of  interest charges.  

Industries need the support of government to revive from the shock of Covid-19 lockdown. The announcements made by government at the right time will definitely be a major fillip to the small and medium industries.

Employees in MSME

Engineering enterprise

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