Senior Shiv Sena leader and Maharashtra industries minister Subhash Desai claimed that the Rs 25 crore limit was too less and it should be increased to match their strength and contribution.
Bharatiya Janata Party's ruling partner Shiv Sena has sharply criticized the Reserve Bank of India's (RBI) decision to allow lenders to recast loans up to Rs 25 crore of stressed micro, small and medium enterprises (MSME). Senior Shiv Sena leader and Maharashtra industries minister Subhash Desai claimed that the Rs 25 crore limit was too less and it should be increased to match their strength and contribution. ''In order to create an enabling environment for MSMEs, the banking regulator will have to increase the limit to cover more such units,'' he observed.
Desai told DNA ''Demonetisation has adversely impacted the MSMEs which are currently facing a liquidity crunch. There are in all 12 crore MSMEs who contribute 50% to the manufacturing at the all India level. The RBI needs to revise its proposal.'' He argued that MSMEs are job creators and contribute a big way to GDP, industrial output.
In a serious bid to project Shiv Sena pro to MSMEs and not pro to industry giants, Desai said MSMEs will not run away alike promoters of mega and ultra mega projects. ''MSMEs badly need more assistance to stay afloat,'' he viewed.
The total reserves with the RBI stand at Rs 9.6 lakh crore as on January 2019, up from Rs 8.38 lakh crore in F17. "Instead of transferring its reserves to the Centre, RBI should give a small portion of its reserves to MSMEs. This will result in the revival of the entire MSME sector and it will ultimately help spur the economic growth,'' he added.
Meanwhile, the state government is actively considering contributing at least 15% equity in the fundraising issue by MSMEs who propose to list on stock exchanges. ''However, the rider is MSMEs going in for listing should hail from Maharashtra and they should have employee strength of 50 each,'' he said.
The minister said the government will contribute its equity after the MSME's fundraising issue is fully subscribed. ''Between 2012 and 2017, about 100 MSMEs were listed stock exchanges. However, in 2018 alone more than 40 enterprises were listed and all of them were from Maharashtra,'' he added.
FACT FILE
- The state government is actively considering contributing at least 15% equity in the fund raising issue by MSMEs who propose to list on stock exchanges
- The total reserves with the RBI stand at Rs 9.6 lakh crore as on January 2019
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