Industrial delegation meets MSME minister | punjab | Hindustan Times
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Industrial delegation meets MSME minister

punjab Updated: Jul 26, 2014 21:02 IST
HT Correspondent

A delegation of the Apex Chamber of Commerce and Industry met minister for micro, small and medium enterprises (MSME) Kalraj Mishra and apprised him about the situation in the sector, especially in Punjab.

The delegation led by chamber president PD Sharma met Mishra at his office in New Delhi on Friday evening. Chamber's general secretary Romesh Goel and executive member Ajit Lakra were also present.

Sharma urged the minister that investment allowance of 15% may be allowed for all investments, including incremental ones made by MSME entrepreneurs.

The memorandum given to the minister stated: “In the recent budget, finance minister has allowed investment allowance for investment of `25 crore or more. Earlier, this was applicable only on investment of `100 crore or above. It is a well-known fact that MSME sector is playing pivotal role in the industrial economy of the country with 8% contribution to GDP and job creation in the manufacturing sector is mainly due to MSME sector.”

The memorandum stated that that job creation is the topmost priority, especially in the high inflation regime, which is going to last for some time. “Export is another priority of the country and this sector is contributing around 40% towards exports,” the memorandum stated.

Sharma also raised the issue of credit limit to the MSME and stated that fixed percentage of 15% bank credit should be earmarked for MSME.

The delegation also raised the issue that large buyers who make purchases from MSME units are legally bound to pay to the sellers within a specified period. “This legal provision is being flouted sue to one or the other reason. It is requested that steps may be taken to implement this law strictly,” the memorandum stated.