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Atmanirbhar package inadequate to save industry: BCIC

Our Bureau Bengaluru | Updated on May 13, 2020 Published on May 13, 2020

“Atmanirbhar package inadequate to save industry from dark times ahead,” said Devesh Agarwal President, Bangalore Chamber of Commerce and Industry (BCIC).

“While we welcome the intent of the Atmanirbhar package announced by the Finance Minister, it is grossly inadequate. The lock-down has left the entire business community bereft of cash,” he added.

Till the government does not issue mandatory directions to banks and financial institutions to lend to MSMEs instead of deploying funds into markets and government securities, we are looking at a dark future, he said.

Karnataka Chief Minister BS Yediyurappa welcomed the Centre’s ₹3 lakh crore financial support to industrial sector.

In a press release he said “At the outset, I congratulate Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitaraman. Yesterday, Prime Minister had announced a ₹20 lakh-crore package for the revival of economy in the country.”

“This ₹3 lakh-crore aid would be a boon to the economic revival of industries and the labourers. This is a very timely and scientific move with expertise and collateral free loans for MSMEs will boost them to resume operations. This will benefit 45 lakh MSMEs in the country.”

KASSIA

KASSIA welcomed the relief package. “We particularly thank the government for the collateral-free automatic loan which will be funded up to ₹3 lakh-crore and benefit over 45 lakh MSMEs with loan tenure of four years and moratorium on repayment of one year,” said R Raju, KASSIA President.

The subordinate debt scheme announced particularly for MSME stressed and NPA accounts would be helpful for those units which will otherwise find it difficult to procure money for their operation.

Avishek Gupta, Investment Director, Caspian Debt said “We welcome the credit enhancements for MSMEs and special liquidity for NBFCs and MFIs, who do not enjoy high credit ratings, as they serve a very weak underlying clientele. This can meet its objectives only if implemented with alacrity and less red tape. The process of recovering guarantees should also be simple to make this more effective.”

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Published on May 13, 2020
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