Introduction: Demand to reduce MSME default limit from one crore to 5-10 lakh in the budget
The budget for 2021-22 has met the highest expectations. The MSME sector also has high expectations from the government in the 2021 budget. MSMEs especially want to get rid of payment delays. He also hoped that in the budget, the government should announce an increase in government procurement from small businesses. In a conversation with Dainik Bhaskar, Mukesh Mohan Gupta, President, Chamber of Indian Micro, Small and Medium Enterprises, said that the monitoring system for late payments should be improved. MSMEs face huge financial problems due to delay in payment.
The default limit raised by NCLT should be reduced from one crore to 5-10 lakh. Online loan approval is for the same businesses that have been operating for two-three years. But there is no such platform for startups. There should be such a platform for them. On the other hand, according to Anil Bhardwaj, secretary general of the Federation of Indian MSMEs, 25 per cent of government procurement from small businesses is a central government rule. It should also be made for the state government. The kind of federal co-operative systems the Prime Minister is talking about needs to encourage MSMEs to increase their share in state procurement. The last 6-8 months have been painful for all industries. Many accounts have become NPAs or are on the verge of becoming NPAs. The government needs to formulate a clear and comprehensive policy on NPAs.
States are encouraged to increase their share of MSMEs
States will be encouraged to increase their share of the MSME sector which will lead to the launch of new MSME units in most of the states, boosting production. The budget also calls on other MSME entrepreneurs to formulate a clear and comprehensive policy on NPAs and to liberalize banks’ rules for loans.