MSME task force may suggest changes in procurement policy
Press Trust of India / New Delhi Oct 26, 2009, 16:12 IST
The PMO-appointed task force on MSME sector is likely to suggest re-orientation of procurement policy of the government to give boost to small and medium enterprises, hit hard by the global financial meltdown.
Besides, changes in the procurement policy of the government, the task force may also suggest modification of labour laws and steps to increase flow of credit to the MSME sector, sources said.
The seven sub-groups of the task force set up by the Prime Minister's Office in September to look into the problems of the sector would be submitting their reports by the month end, sources said.
"Once the report is submitted the government may announce a package and various schemes for the MSME sector," sources said.
The 11-member panel headed by Principal Secretary T K A Nair was set up after apex chambers CII, FICCI and Assocham and different MSME associations apprised Prime Minister Manmohan Singh of the difficulties rising out of the global slowdown and put forth suggestions to help them tide over it.
The MSME representatives had sought bank loans at par with the agriculture sector or at less than 8 per cent.
The industry is also demanding that the minimum period for Non-Performing Assets for micro sector enterprise sector be extended from 90 days to 180 days.
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