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| UP MSMEs hail Budget proposals |
| Virendra Singh Rawat / New Delhi/ Lucknow Mar 10, 2010, 00:32 IST |
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Union Budget 2010 has brought cheers for the 1.2 million-odd Micro, Small and Medium Enterprises (MSMEs) in Uttar Pradesh.
Union Finance Minister Pranab Mukherjee, in his Budget speech, had announced the implementation of the recommendations of the high-level MSME task force constituted by the prime minister.
If implemented, several pro-MSME measures would be rolled out providing easy credit and market support to the beleaguered sector recovering from the aftermath of the slowdown.
The Centre will institute a high-level council to monitor the implementation of the recommendations of the task force and agenda for action. Besides, the government has raised the allocation for the sector from Rs 1,794 crore to Rs 2,400 crore for 2010-11.
"The reference to MSMEs in the Budget speech is a proof of the acknowledgment of the sector's contribution to the Indian economy and we hope that the government continues to give greater focus to the sector," said MSME chamber Indian Industries Association (IIA) president Anil Gupta. IIA was part of the task force.
The state has an estimated number of 1.2 million MSME units, which include half-million registered ones, contributing over 50 per cent of UP's industrial output.
UP has several MSME pockets, including in Varanasi, Allahabad, Moradabad, Saharanpur, Lucknow, Kanpur, Agra, Ferozabad, Meerut, Bhadohi, Ghaziabad, Noida, Bareilly, Gorakhpur, Khurja, Aligarh and Mathura.
"IIA had suggested easy and collateral-free credit to the sector, market and raw material support, better infrastructure and 20 per cent quota for MSMEs in government purchases and project supplies," he said.
The Association had also demanded a new law to allow an easy exit route for the MSMEs in case they become sick or insolvent.
MSMEs contribute 8 per cent to India's GDP, 45 per cent of manufactured output and 40 per cent of exports. They also provide employment to about 60 million people through 26 million enterprises.
The Centre has signed a loan agreement for $150 million with the Asian Development Bank (ABD) for implementing the comprehensive Khadi Reforms Programme to cover 300 Khadi institutions.
The corpus of Micro Finance Development and Equity Fund has also been doubled to Rs 400 crore in 2010-11.
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