Industry Bodies Complains Govt. for Having No Focus on Reviving Sick MSMEs

From Punjab to Kerala, and from Jammu & Kashmir to Arunachal Pradesh, we cannot rule out a fact that the number of sick MSMEs have increased. The slowdown have made it really tough for MSMEs especially in the manufacturing space to sustain growth. Amid economic slowdown, where both state and centre government is looking to pave the way for Micro Small and Medium Enterprises (MSMEs) by providing special subsidy schemes to the new ones but somewhere, they are lacking in adopting the steps, which are needed for the revival of sick units, says Industries bodies.

Reportedly, The Tamil Nadu Boilers Association (TNBA) Treasurer Rajappa Rajkumar has alleged that government is promoting new MSME Units by providing attractive schemes but at the same time they are lacking in reviving the sick units.

“Units are sick due to the change in government policies and the general recession. The government is promoting new MSME Units with lot of special subsidy schemes, no steps have been taken for the revival of sick units,” he said in Truchi.

He further reminded, that auctioning the units declared as NPAs would only result in a criminal waste of the assets, capability and capacity created after several years of hard work.

Notably, on December 5th, Federation of Punjab Small Industries Association (FOPSIA) President Badish Jindal speaking to KNN India over Memorandum of Understandings (MoUs) signed with e-commerce giants like Amazon and Flipkart at Progressive Punjab Investors Summit, had too said that new and attractive schemes have succeeded in setting up new industries and because of this government has turn deaf ear on existing and sick units.

Already, we have enough MoUs but still the situation of the industries are same. With the help of incentive new companies have come into existence and due to this government is not focusing on the existing industries,'' Jindal had told media.

''They managed to set up some companies by providing free land and attractive intensive. At what time, these agreements will get matured. Agreement can be signed regularly, but till the time it gets matured and the investments comes on ground, then we can say such. As of now, these MoUs will not help MSMEs at all rather it will create competition for the existing MSMEs," he asserted.

Further he informed that it won't help, instead the impact will be negative on MSMEs.

''If the government is setting up the new industries by providing free land and attractive incentives, for an example, if they (Government) are giving more facilities by reducing costs like power cost and tax to the new one, then what about the existing one, the government is almost killing the existing industry,'' he avowed.