Coimbatore: "The announcement by the Finance Minister is a definite breather to the MSME sector in the current situation. Now, industrialists can work in peace without having to worry about paying interest and principal before 90 days. Six months is a fair period before which industries can manage to come out of this slump", opined Ramamurthy, President CODISSIA.
Coimbatore: "The announcement by the Finance Minister is a definite breather to the MSME sector in the current situation. Now, industrialists can work in peace without having to worry about paying interest and principal before 90 days. Six months is a fair period before which industries can manage to come out of this slump", opined Ramamurthy, President CODISSIA.
Bringing an interim relief to the distressed MSME sector, Union Finance Minister Nirmala Sitharaman made quite a few announcements which would help the ailing economy. RBI Governor Shaktikandha Das on Thursday suggested measures to manage the slowdown, following which the FM made a few announcements bringing relief to the industry.
Commenting on this Ramamurthy, President CODISSIA said, "Earlier, CODISSIA had made representations to the Finance Minister which has now materialised. This will help the MSME sector immensely."
Seconding his thoughts, the same sentiment was echoed by several industrialists from the city.
Reiterating CODISSIA President's statement, C.B. Senthil Kumar of Blue Mount Castings Private Ltd stated , "When the industry is facing a slow down the fixed costs go up and profits decline. And, we have to wait for the stocks to get cleared which will inturn affect the working capital and thus funds flow will be affected. In such scenarios, repayment of loans will be a huge burden. Again, any delay in repayment of loan within 90 days will be declare as 'stressed asset'. This six months period is a reasonable time to get back on our feet. The government measures will certainly help us in a big way."
As far as bank loans are concerned, the finance minister has advised the banks to give loans to help people during festive seasons. Since the details of the proposed loan melas are yet to reach banks, no one from the banking sector were willing to comment on the measures announced by Finance Minister, Nirmala Sitharaman.
Measures included announcing that no stressed MSME loan should be declared as NPA till March 2020, Public sector banks to hold loan melas in 400 districts along with few NBFCs to provide loans ahead of Diwali season. These measures have brought huge relief to the MSME sector.