HYDERABAD: Telangana’s IT and businesses ministry KT Rama Rao has recently written to Union finance ministry Nirmala Sitharaman expressing disappointment in the’collapse’ of the Rs 20 lakh crore Atmanirbhar package, and it has encouraged the authorities to have a close look at its plan to help aspiring MSMEs endure the Covid-19 catastrophe.
“Since the minister for businesses in Telangana, I’ve concentrated on ensuring MSMEs gain in the bundle.
But 1 year later on, I really regret to mention the effects of the bundle was minimal with this business that has faced the brunt of the outbreak,” he stated in the letter.
KTR stated over 80 percent of Telangana’s MSMEs are negatively affected, with 25 percent losing substantial revenues because of the lockdown and total pandemic effects.
Included in this Atmanirbhar Bharat plot, the’Emergency Credit Line Guarantee Style’ for MSMEs was declared and Rs 3 lakh crore was allocated.
“At Telangana at the MSME units didn’t find anything especially appealing from the plot…Each MSME has particular challenges, along with a’one size fits all’ type of plot barely is the response…,” he explained.
Rather, a monetary grant which will take care of all of the losses which MSMEs have endured as a result of pandemic, are beneficial, he explained, pointing out MSMEs remain to confront supply chain disruptions and acute lack of labor.
“There are just two other approaches targeted at MSMEs at the Atmanirbhar relief bundle.
One of these is intended for worried MSMEs and another for advanced MSMEs.
Regrettably, these happen to be whole nonstarters not only in Telangana, however since information shows, at the whole nation,” he added.
KTR stated the poor debt strategy for worried MSMEs provided a non existent loan and it’s been an uphill task for MSMES to use for it since they should convince the government regarding the commercial viability in the own unit, which appears impractical throughout the ordeal.
The guidelines of this corpus finance scheme intended for advanced MSMEs also have yet to be published yet.
He suggested the PLI strategy for unique sectors and huge units ought to be prolonged to MSMEs also.