PM narrows down on small sector

In a move aimed at further boosting the micro, small and medium enterprises MSME sector, Prime Minister Manmohan Singh is understood to have asked a high-level committee headed by the cabinet secretary K M Chandrasekhar to look into the issues plaguing the sector and submit its report within a fortnight.

The move comes a day after the government announced a package to stimulate the economy. The package, however, has failed to enthuse its entrepreneurs. All India Confederation of Small 038; Micro Industries Association president Sudarshan Sareen said, 8220;The RBI8217;s Rs 7,000-crore credit refinancing is too less. At least Rs 10,000 crore should be made available for rehabilitation of sick industries and another Rs 10,000 crore for marketing development fund.8221; A delegation of the association, which met the Prime Minister today, sought adequate support from the government.

MSME secretary Dinesh Rai told The Indian Express that the memorandum submitted to the PM included speedy formation of a special fund for enterprises in the unorganised sector and an enhancement of cash-credit limits/ over draft facilities by at least 15 per cent. Besides seeking extension of time period for reckoning MSE accounts as NPAs from 90 to 180 days.