The Utkal Chamber of Commerce and Industry (UCCI) has requested the Union Government to announce a stimulus package for MSME sector to help it come out of the pandemic shock. UCCI president Brahma Mishra submitting a memorandum to Union Minister of State for MSME, Pratap Sarangi, said due to the Covid 19 pandemic, which has affected all facets of trade and commerce, it is imperative that MSME deserves special considerations and fiscal stimulus.
The budget allocation has increased from Rs 7,552 crore to almost Rs 15,700 crore. However, what is lamented is the poor implementations by financial institutions in carrying out the guidelines and there by defeating the basic objective of protecting MSMEs, he said. The UCCI team led by Mishra suggested to the Minister to consider extending the moratorium till March 31, 2022, restoring rating of units as pre Covid rankings, restructuring of NPAs if any during Covid pandemic, simplifications of credit sanctions to MSME including ECLGS, factoring services for MSME to improve cash flow and interest subvention.
The 6.4 million MSMEs in India generate employment of 11 crore of people. Contributing to almost 45 per cent of GDP and 44 percent of exports. They have a significant and decisive role in economic growth and revival of the economy, Mishra said. The Union Minister on Monday visited the headquarters of UCCI in the city and interacted with the newly elected office bearers.