Bhubaneswar: Union finance minister, Nirmala Sitharaman’s proposal in her budget speech on sanction of loans to MSME sector within 59 minutes, through commendable, needs proper implementation, according to Rajen Padhi, former director general of Utkal Chamber of Commerce & Industry (UCCI).
Padhi, who attended a seminar on Budget-2019 Highlights organised by Indian Chamber of Commerce (ICC), here on Saturday, said that in states like Odisha, funding is necessary to boost MSME sector operators.
“The scheme to sanction a loan of Rs 1 crore for MSMEs being cleared within 59 minutes through an online portal is appreciable. But sanctioning loan by financial institutions will not serve the purpose. Quick disbursement is the necessity,” he said.
He pointed out that although the scheme was launched in September last year, entrepreneurs are still waiting for the loans.
Convener of finance and taxation committee of ICC, AK Sabat, mentor of agriculture and food processing committee, Pradipta Mohanty, and co-chairman of ICC’s Odisha State Council, JB Pany, were also present at the event.
The panelists stressed on proper implementation of all that were announced in the budget.
Pany welcomed the decision on public sector bank recapitalization of Rs 70,000 crore for purchase of high-rated pooled assets of financially sound NBFCs amounting to a total of Rs 1 lakh crore.
“This will address the liquidity problem of the economy to a great extent. But it needs to be implemented properly.” he added.
An industry expert said that customs duty exemption on parts of electric vehicles will boost the manufacturing units. “Odisha is coming up with a e-vehicle manufacturing unit. This exemption will boost its production in the state as well,” he said.
