Maharashtra: Relief package of Rs 3 lakh cr for MSMEs is just a mirage

The lockdown announced to control Coronavirus spread in the country has impacted the Indian economy, especially small and medium scale industries (MSME) are hit hard. The central government announced a relief package of Rs 3 lakh crores for MSME sector under its self-reliant India scheme with much fanfare. But, the MSME sector is disappointed as the scheme will not benefit them directly in anyway.

Mumbai: The lockdown announced to control Coronavirus spread in the country has impacted Indian economy, especially small and medium scale industries (MSME) are hit hard. Central government announced a relief package of Rs 3 lakh crores for MSME sector under its self reliant India scheme with much fanfare.

But, MSME sector is disappointed as the scheme will not benefit them directly in anyway. Meanwhile, last week a loan of Rs 24 lakh 360 crores has been sanctioned under Atmanirbhar Bharat Abhiyan. The industrialists in Nasik feel that, it would give some relief to the sector.

Under the Atmanirbhar scheme, the industrialists who have borrowed from nationalized banks and whose repayment record is sound till February, will get 20 percent top-up on their loans. Many industrialists in Maharashtra’s most of the districts are expressing their displeasure about this scheme while a few are satisfied about it.

Beneficial for only big industrialists

Solapur Garment Manufacturing Association said that, the scheme announced by the centre is not beneficial for garment producers in the district.

Solapur Garment Manufacturing Association said that, the scheme announced by the centre is not beneficial for garment producers in the district. The garment industrialists in Solapur have not borrowed much and so the decision of 20 percent top-us is useless for these micro and small industrialists. They say that only big industrialists will benefit from this scheme.

How to make repayment

Latur industrialists say that, though 20 percent top up on loan will be given without mortgage, the condition of repayment remains. Centre is only pretending to be extending support to industries. The industrialists are not responding to this scheme because labor problem and closed transactions since 4 months have made repayment of loan impossible.

Industrialists say that bank officials are visiting them to persuade to take loans but they are facing problem in recovering from this situation.

Latur industrialists say that, though 20 percent top up on loan will be given without mortgage, the condition of repayment remains.

They say that, industrialists don’t want to be defaulter, but they don’t know what will happen in future. The loan amount will be given with an interest of 7 percent. So, they have continued business only for their livelihood by reducing number of workers and production.

Everybody needs to get assistance

The number of small, medium and micro industries is approximately 2.5 to 3 lakh. The new scheme brought by centre will help to some extent for these industries to survive. Experts in the sector feel that the industrialists are not completely satisfied.

The number of small, medium and micro industries is approximately 2.5 to 3 lakh.

Those industrialists who have set up business without any loan are not getting any benefit of this scheme. Seeing the loss these industries have to bear in lockdown period, expectations are rising that they should also get some assistance by the centre.

Moreover, the decision not to consider borrowings from district co operative banks for the scheme has come as a severe blow for industrialists in west Maharashtra. 50 to 60 percent industrialists near Pune and nearby areas have borrowed loans from private scheduled and co-operative banks. Consequently, most of the industrialists will be deprived of benefit of the scheme.

Central scheme is useless

Mixed reactions are being received from industrialists in Sangli. The district has nearly 7 to 8 thousand small and medium industries. The industrialists were expecting scheme will be a relief, but it is turned out to be of no use and they will not get any direct benefit. On the other hand, it is not implemented on bank level. They allege that, central government has only cheated them.

Mixed reactions are being received from industrialists in Sangli.

BJP small industries cell Maharashtra general secretary Madhav Kulkarni alleges that, in Sangli, the scheme is not implemented on bank level. Only Bank of India is extending benefit to industrialists, but other banks are creating obstacles. Many industrialists have accounts in different banks, but co-operative banks can’t give benefit of the scheme while other banks are delaying for loan payment.

Relief for Nasik industrialists

Till last week, under the Atmanirbhar scheme, a loan of Rs 24 lakh 360 crores has been sanctioned for 5,46,617 industrialists in the country. Out of that, Rs 12 lakh 200 croreshave been used for business. A loan of Rs 2,202 crores has been sanctioned to 17,911 industrialists without any mortgage.

Those industrialists who have set up business without any loan are not getting any benefit of this scheme.

Industrialists in Nasik district say that, we have got some relief. We even not had money to pay salaries of workers and purchase raw materials. Now, due to Atmanirbhar scheme, the problem is solved.