The PHD Chamber of Commerce and Industry (PHDCCI) has suggested to the government to review the new Securitisation Act making it lenient for the unwilful defaulters apart from seeking longer debt repayment period and flexible corporate debt structuring scheme.
A PHDCCI delegation, led by its president P K Jain on Tuesday met Bharatiya Janata Party President (BJP) Venkaiah Naidu and suggested several measures to maximise compliance and stimulate demand in the country.
Responding to the chamber's demands, Naidu said the reforms had to be carried out with a human face and suggested that there was a need for adopting a middle path to achieve the expected growth rates, Jain told reporters on Wednesday.
Naidu also said this could be achieved only with the active support of the state government and implementation of labour reforms, said Jain
The Securitisation Act should not be harsh for unwilful defaulters, PHDCCI said in its pre-budget memorandum and pointed out that structural problems including labour laws, high interest rates were main cause of NPAs. "We also need to have a lenders' liability legislation," he said.
Government also needs to lower lending rate to the industry to up to eight per cent, chamber said suggesting repayment to start after the gestation period of five-six years.
There was a need for flexible corporate debt, PHDCCI said.
The chamber's suggestions also included implementation of VAT system, reduced excise duty on textile sector, boost to tourism, reforms in labour laws and low custom duty on raw material.