Through a press note, CODISSIA President, Ramamurthy has thanked Finance Minister, Nirmala Sitharaman for her announcements on growth prospects of MSMEs.
Coimbatore: Through a press note, CODISSIA President, Ramamurthy has thanked Finance Minister, Nirmala Sitharaman for her announcements on growth prospects of MSMEs.
"During the interaction meeting at New Delhi on August 8, we discussed on the issues faced by the MSMEs in the region with the Finance Minister, Nirmala Sitharaman who promised to look into the issue within two weeks time. Keeping up the timeline, the Finance Minister has made new announcement on growth prospects of MSMEs, which is highly appreciable", noted the President of CODISSIA.
He also added that "We believe, post the remaining two announcements, an economic upsurge will take place, which will pave the way for the growth of MSMEs."
The following are the salient features from her announcements for the growth of MSMEs.
➢ Public sector banks to get 70,000 crore recapitalization immediately. Additional lending and liquidity to the tune of Rs.5 lakhs crores can be made available by providing this capital for the PSBs.
➢ Banks have agreed to link repo rate to interest rate, this will cause reduced EMIs for housing and vehicle loans and other retail loans, working capital loans to be cheaper.
➢ In order to reduce harassment and bring in greater efficiency, public sector bank to return of loan documents within 15 days of loan closure.
➢ Banks to make home, auto loans cheaper.
➢ All pending GST refunds to MSMES till date shall be sorted out within 30 days from today. For future GST refunds within 60 days after it arises.
➢ Housing finance companies will now get an additional Rs.20,000 crores from the NHB.
➢ Government Departments told to replace old vehicles.
➢ Income tax scrutiny will be faceless and randomized across the country from Vijayadhashami.
➢ Tax scrutiny process would be simplified along with the GST system.
➢ Non-banking finance corporations will be allowed to use Aadhaar authenticated bank KYCs to avoid repetitions. Partial credit guarantee scheme for NBFCs will boost liquidity in the market.
➢ The MSME Act will now go to the Cabinet with inputs of ministries so that there is one meaningful definition of MSMEs. It will not only be linked to turnover.
➢ The government proposes to set up to provide credit enhancement for infrastructure and housing development projects.
➢ Delayed payments from government/CPSEs will be monitored by the department of expenditure and its performance will be reviewed by the Cabinet secretariat.
➢ An inter-ministerial task force has been set up to finalise the pipeline for spending Rs 100 lakh crore for developing modern infrastructure over five years.
➢ Additional depreciation for all vehicles at 15% announced till March 2020, totaling the depreciation to 30%.
➢ Both electric vehicles and intermediate commercial vehicles will continue to be registered. The government will focus on developing infrastructure for electric vehicles. The government will also consider a vehicle scrappage policy.
➢ No overreach by tax authorities will happen. Wealth creators will be treated with greater sensitivity.