M.V. Ramesh Babu, President, CODISSIA attended the Interaction Meeting with Sunderadevan, IAS (Retd.), Chairman, Expert Committee for Revival of MSMEs, Government of Tamil Nadu, held on Wednesday and submitted a list of Representation regarding various issues pertaining to MSMEs.
In a press release bearing the highlights of the representations, it was mentioned that MSMEs should be treated as Priority Sector and a special budget provision should be made for various reasons.
First of all is that MSMEs are the largest employment providers, and at present MSMEs are providing 12 crore employment. A special budget provision will help to double the employment strength in two years’ time.
The Association appealed that a committee is to be formed by the Central Government to regulate the 25% compulsory purchase Obligation of PSU’s, Defence and Railway from MSME units. CODISSIA requested that this limit to be enhanced to 40%.
It stated that the heavy increase in prices of raw materials required by MSMEs have led them facing with cancellation of orders, uncertainty of consumption in the market and declining of exports etc.
The prices of Steel and other allied Foundry items like Coke, Pig Iron, cast iron, steel Scrap, CI Boring, HR Sheet, CR Sheet, Copper and Aluminum, have increased by 30% to 35% post lock down due to COVID-19, hence the association requested the Government to reduce the prices of raw materials at the pre-Covid 19 level to compete in the international market and to fix up the price prevailing at the time of pre-Covid 19 as MRP price for all raw materials.
Through the Chairman of Expert Committee for Revival of MSMEs, CODISSIA appealed Minister for Steel, Government of India and Chairman, SAIL, to reopen the Sail Yard in Coimbatore immediately, which was closed due to the construction of Railway bridge, which was already completed in 2017.
Other issues related to GST, Defence Procurement Policy, Self-Certification, Defence Testing Infrastructure Scheme (DTIS), income tax, Incentives for Green Energy, Relaxation in the taxability under Presumptive Taxation, etc., were discussed and represented.