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Karnataka-based medium and small industries (MSEs) have urged the Centre to ensure early implementation of trade bill discounting platforms.
“Trade bill discounting platforms will help MSEs a great deal. But the problem is, so far it has only remained on paper,” Basavaraj Javali, founder of Belagavi-based Beejay Enterprises and President of Karnataka Small Scale Industries Association (KASSIA), told BusinessLine .
“Registration under Trade Receivables Discounting System (TReDS) must be made mandatory for all companies. The ₹500-crore turnover threshold should be reviewed as MSEs supply to even much smaller enterprises and constantly suffer delayed payments,” Javali explained.
“ The 25 per cent purchase preference should be made mandatory,” he added.
These initiatives, according to him, will be in the best interest of the MSEs which are the bedrock of the economy.
Welcoming the Prime Minister’s outreach initiative for the MSMEs, Javali said: “The outreach has brought satisfaction to us, especially the MSME community. Many issues are being raised constantly by us through KASSIA and other forum.”
“The MSE segment suffers from lack of access to finance, technology and markets apart from red-tape,” he added.
In spite of many institutional mechanisms that are in place, the MSMEs find it extremely difficult to access them to get due benefits.
Javali said: “We have, at the KASSIA, persistently raised the issue of the need for exempting job works from GST. We urge that these are addressed by the government in the interest of SMEs. The measures proposed now are certainly favourable to medium industries but the micro and small enterprises may not derive the desired benefits.”
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