Responding to the Union government’s draft national policy for micro, small and medium enterprises (MSMEs), the Kerala State Small Industries Association (KSSIA) has said that the proposed scheme to provide 60% government funding for developing industrial estates or parks under State governments should be extended to include industrial estates set up by NGOs, societies, or private entities approved by the respective State governments.
The KSSIA has appealed to the Centre to continue with the credit-linked capital subsidy scheme, as it has helped MSMEs grow. The Association also called for the implementation of an Act for the protection of life and property of entrepreneurs.
It said the government should provide subsidy or grants for technology upgradation and modernisation, besides offering duty waiver on import of machinery for modernisation and expansion of plants. MSMEs should also be able to access bank loans with interest rates at par with agriculture loans, the KSSIA said.
The Association is also of the view that the Centre should reimburse registration fee and stamp duty imposed by State governments for land purchased to open enterprises and provide 25% of the land value in reimbursement.
It also appealed to the government to exempt industries from the purview of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act and to extend the number of days to classify non-performing assets (NPA) from 90 days to one year.
