Business Daily from THE HINDU group of publications
Friday, Jan 09, 2009
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Business Daily from THE HINDU group of publications Friday, Jan 09, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Industry & Economy
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SSI States - Karnataka Karnataka small units seek relief package KASSIA has urged the government to reschedule the outstanding loans to prevent them from becoming non-performing assets to lending institutions. Our Bureau Bangalore, Jan. 8 Over six lakh registered and unregistered micro and small industries, who form a key link in the State’s industrial scene, are burdened by low offtake of their output because of the economic slowdown. Highlighting the problems faced by the units, the Karnataka Small Scale Industries Association (KASSIA) has urged the Central and State Governments and the RBI to extend a set of relief package to bail them out of the difficult position. KASSIA has urged the government to reschedule the outstanding loans to prevent them from becoming non-performing assets to the lending institutions. The NPA assets norm of 90 days should be kept in abeyance until the sector recovers, it said. Among other measures, KASSIA said that all banks should extend a one-year moratorium on all tem loans, while the banks and financial institutions should not charge interest on MSME loans for one year. In view of the difficult business environment, MSMEs should be permitted make quarterly payment of levies such as excise, service tax and VAT, instead of the current requirement of monthly remittance. Priority for granting credit, fast track credit delivery system with lower interest for exports, interest rate to be on par with the subsidised loans to the farmers, directing the banks to give additional funds to the large scale units for payment towards procurement from the SSI sector, under the priority sector category to for more prompt payment of dues to small units and extending sufficient working capital to meet the increasing cost of input materials and liability for statutory payments were the other measures suggested by KASSIA. More Stories on : SSI | Karnataka
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