TN parliamentarians for more banking support to MSMEs

Initiating the discussion on working of the Ministry of Micro, Small and Medium Enterprises (MSME), he said the allocation to the sector was lowered in the revised estimate during 2018-19. Elangovan said micro, small and medium enterprises need funds for technology upgradation and infrastructure, but banks were not proving funds. The government should support small industries and banks should lend, he added.

Stating that the MSME sector provide huge employment opportunities to people, the DMK leader said the government should re-evaluate its strategy and provide support to this sector for economic development of the country.

Countering his charges, Arun Singh of the BJP highlighted various initiatives by the central government to strengthen the MSME sector. He said there was no development in the MSME sector in the last 70 years because of piecemeal approach by previous governments.

Participating in the discussion, Amee Yajnik of the Congress said demonetisation has finished this sector and “we have to face it.” “You cannot run away, you cannot remain in denial mode,” she said, requesting the Minister to look into the budgetary allocation and consider simplification of schemes so that it can reach the last person.

A Vijayakumar of the AIADMK said Tamil Nadu continues to be a vibrant industrial state with a large base of big factories and small units, with the state having an estimated seven lakh registered MSMEs or 15.1 per cent of all such units in the country.

“I urge the government to allocate Rs 5,000 crore as one-time special package to support the MSME sector in Tamil Nadu,” he said, adding that because of the coronavirus outbreak, the production has been suffering for two months.