MSME Crisis: Despite the claim of banks giving loans of Rs 2.5 lakh crore to the Corona MSME sector, the condition of small companies is very bad. A parliamentary committee studying the impact of Corona on this sector has said that despite the government’s stimulus package, there is a danger of default of 25 percent of the loans of this sector. The work of small companies will not do just by giving loans. They need a big economic package.
Small companies facing huge cash crunch
According to the committee, many industry organizations of many MSME sector have told him that small companies are in huge cash crunch. Corona has reduced his earnings by 20 to 50 percent. The situation is so bad that 25 percent of the loans given to the MSME sector may sink as many small companies are finding it difficult to get working capital from banks. The parliamentary committee, which is studying the impact of Corona on the MSME sector, expressed concern over the condition of small companies.
The committee says that the government should bring a big economic package for small companies, so that their demand, investment, export and employment will increase. If the condition of small companies improves, it will be a big help in bringing the economy back on track. The committee has recommended soft loans to companies in this sector at the rate of 3 to 4 percent. Along with bringing a new employment policy to increase employment in this sector, it has been asked to create a National Electronic Employment Exchange.
Engineering colleges are closing rapidly, the number of seats has reached a ten-year low, the effect of slow economic speed is visible
‘RBI should give relief in NPA rule for small companies’
The committee headed by Rajya Sabha MP K Keshav Rao has said that the RBI should relax the rules for making loans given to companies in the MSME sector as NPA. At present, if the loan is not repaid within 90 days, it is put in NPA. This period should be increased to 180 days. Significantly, there are 6.3 crore companies operating under the MSME sector and they provide employment to about 14 crore people. These companies have been affected the most by Corona. There was a cash crunch with these companies. Because of this many companies have closed down. This has increased unemployment in the country.