The Hindu Business Line : Fair Budget for small, medium units: CII

Advertisement

New Delhi March 3 The proposals announced in the Union Budget recently by the Finance Minister for the micro, small and medium enterprises (MSMEs) will help the sector to grow, according to the Confederation of Indian Industry.

Setting credit rating as a benchmark for deciding on the cost of lending to MSMEs, as suggested by the Finance Minister, will enhance the availability of cost competitive credit to deserving enterprises. It will also promote healthy financial and fiscal prudence and transparency in the sector, according to the chamber.

Technology cost

Most MSMEs suffer from lack of access to contemporary technology. The establishment of a Rs 500-crore Financial Inclusion Technology Fund to meet the costs of technology adoption will provide support for capacity building and technology up-gradation in capital-intensive sectors.

However, delayed payments plague the sector and are a deterrent to its growth. An amendment of the Securitisation Law to provide relief to the SME sector from the issue of delayed payments would go a long way in helping the sector.

The formation of an Expert Advisory Council for the sector, on the lines of the Expert Advisory Council for Agriculture, could help to better the eco system for the MSMEs.

Stock exchanges meant for raising funds by the SMEs could be encouraged. Foreign Direct Investment for better technology transfer within the permitted ceiling of equity participation by large-scale units in the equity of small units also needs a push, according to the chamber.

More Stories on : SSI | Budget | Industry Associations

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
IIM-K grads land big offers

ICAI wants essential items under strict watch

Banks legally bound to make temporary hands permanent: HC

Study on rules of origin in free trade pacts

Excise collection from petrol, diesel up 9.61%

I-T Dept seized assets worth Rs 287 cr in April-Jan

To whom does locational advantage accrue in transfer pricing?

Fair Budget for small, medium units: CII

UK-India education research meet on March 7

Microsoft plans `Schools of Future'

Canadian varsity sets up centre in India

Syndicate Bank's rural operations

Marine products export to touch $4 b by 2010: Jairam Ramesh