Telangana MSME Body Calls on Government to Order Banks to Increase MSME Working Capital Limits

New Delhi, April 28 (KNN) The Federation of Small Scale Industries Associations of Telangana (MSMEs) (FETSIA) has suggested that the central government should order banks to automatically increase the working capital limits of all MSME units.

This will ease cash flow for MSMEs otherwise they are forced to borrow money at 20-30% interest from outside agencies due to paying double the price of raw materials, the body said. MSMEs.

Submitting a series of suggestions to MSME Minister Narayan Rane on Wednesday, B. Siva Sambi Reddy, Secretary General of FETSIA, called for a proportional increase in the prices of goods supplied by MSMEs to government enterprises, state-owned enterprises, quasi-governmental enterprises , etc.

Reddy urged the minister to look into the issue of lack of funds due to which grants from 2015 were not disbursed to MSMEs and to arrange a special grant or loan to state governments.

He also suggested that while releasing a share of the GST funds to state governments, a condition should be made that at least 50% of the released GST funds be used for the payment of pending grants to MSME units. . (KNN Office)