Small industries apex body KASSIA on Monday demanded the strict implementation of government notification on procurement from MSMEs.
In a statement released on Monday, K.B. Arasappa, president, KASSIA, demanded implementation of the notification on 25% of the procurement by government departments and undertakings under the MSMED Act.
There are glaring examples of the same being flouted with impunity on one pretext or the other. On the other hand, if properly executed, the move will be a substantive stimulus for MSMEs, he said.
Mr. Arasappa, said, “There is a need for increased spending on infrastructure, housing for the weaker sections and public works, and health in order to kickstart growth, which will automatically generate demand for products and employment, which in turn will generate consumer spending creating a virtuous cycle for the economy.”
But, he said, MSMEs in the State are staring at an uncertain future as they are unable to come out of the shocks inflicted by the pandemic and its continuing spread even after six months, with no respite in sight in the near future.
Listing out the steps needed to help the sector, he said banks must advance loans to industry borrowers as mandated without creating hurdles so that the schemes may have the desired impact during a difficult time for the industry.
