Consortium of Indian Associations (CIA) and its 50 partner SMB associations conducted a Mega Survey in June 21 that covered the plight of over 81,000 Self-employed and Micro Small Businesses (SMBs) from across India.
Coimbatore: Consortium of Indian Associations (CIA) and its 50 partner SMB associations conducted a Mega Survey in June 21 that covered the plight of over 81,000 Self-employed and Micro Small Businesses (SMBs) from across India.
CIA insists and advocates formation of a Separate Ministry under an Exclusive Minister for MICRO ENTERPRISES as under the new classifications Micro Enterprises – which is upto Rs.5 cr turn over and also includes Traders, needs a totally different care and support and they cannot be equated with a Rs.250 cr turnover company which is also called as MSME.
The main demands as suggested by CIA to save Micro Enterprises from closure are from Union Government:
In a press release, the following was stated:-
To truly realize the dream of Aatma Nirbhar Bharat Mission :
▪️ Exemption from GST for Micro Enterprises up to Rs. 5 cr turn over for 2 years.
▪️ Exemption from PF/ESI for next 2 years for Micro Enterprises to have low cost of operation.
▪️ Unconditional Moratorium of all types of loans below Rs. 2 crores to start EMI payments from 2022 Sept onwards and till then the interest to be in line with RBI Repro interest.
▪️ To ensure immediate clearance of all pending dues payable from Central PSU , State Undertakings, and corporates. The present solution for the settlement is not able to help Micro Enterprises whose dues are less than Rs. 1 cr.
▪️ To offer additional loans to any Micro enterprises that seek funds without any eligible conditions up to 50% of their current facility.
▪️ To offer a special OTS to existing outstanding loans , so that Entrepreneurs can wind up and restart in life fresh in life with a viable business alternative.
▪️ To waive from Capital Gains tax for sale of factories to settle loans and to reinvest in business.
▪️ To open Fair price shops and offer raw materials at fixed prices for one year and with credit terms to Micro Entrepreneurs.
▪️ To reduce Diesel prices for Transport vehicles of any type.
▪️ To start a Container terminal and from the factory to ship Freight handling for Micro Enterprises exporters.
▪️ To keep in abeyance all pending classifications under NPA and Recovery process for the enterprises involved in the 52 sectors for a period of 1 year except on voluntary closures.
▪️ To offer loans to any Micro Enterprises applying for a loan with any Financial Institution, at a Concessional Interest rate of 2.5% over Repo Rate of RBI for next 1 year and without insistence of profit-making balance sheets or CIBIL score or Past performance or current type of their account.
▪️ To abolish and waive all penalties and delayed payment interests.
▪️ To take over all private Gold loans and offer unconditional one year moratorium without interest burden.
Micro Enterprises is so different to that of a Small and Medium Enterprises under the revised classification and it cannot be clubbed. Request is being made to our Hon’ble CM to consider the above recommendations for the benefit of Micro Entrepreneurs of the state.
The needs for Revival are:
• To offer a stipend of Rs.6000 per month for 6 months to graduates studied from TN colleges to undergo Internship in Micro Enterprises
• To set up Fair Price shop in every industrial Estate for Micro and Small Enterprises
• To offer Guaranteed loans for every start up enterprise registered in TN within 30 days ofapplication through a special window
• To set up a TN Guidance bureau exclusively for Micro Enterprises
• To immediately develop and launch a Mob app-based Platform for B2C market exclusively for Trader and Manufacturers situated and registered in TN on the likes of India Mart / Just Dial / Amazon / Flipkart.
• To offer Market capitalization assistance and offer special allocation from Micro Enterprises in all Govt tenders below Rs. 1 cr value.
• To remove Fixed EB tariff for Micro Enterprises and offer power at a concessional tariff.
• To exempt Micro Enterprises from property tax and water tax for their factory premises for 1 year.
Currently, enterprises pay more to the Government than the profit they make. "The revenue-sharing pattern between the Micro enterprises and government should be refixed based on the turnover and profits to enable entrepreneurs to benefit and stay within the legal framework," says Raghunathan.