MSMEs: Government should extend loan repayment period under ECLGS for MSMEs: Parl panel

NEW DELHI: A parliamentary panel suggested on Monday that the government should extend the loan repayment period under the Emergency Line of Credit Guarantee (ECLGS) scheme for the MSME sector. The Standing Parliamentary Industry Committee has also called on the government to digitize the GST system to ensure paperless reimbursement of claims.

He noted that under the ECLGS, the 3-4 year repayment period, including the moratorium period, is a “very short” period for MSMEs, who are struggling to survive after the second wave of COVID. .

“The committee therefore recommends that the repayment period be extended to 7-8 years with at least a two-year moratorium on the principal amount.

“As regards interest, a moratorium on interest from March 1, 2020 is expected to be announced by the RBI,” he said.

Noting that a number of products for MSMEs currently being imported may be manufactured in India, the group suggested that a central market information center be established for products and components related to importing into the country.

In addition, the committee said the Center could be tasked with publishing a list of imported products with their specifications. It should also spread awareness through electronic, print and social media to attract entrepreneurs interested in establishing new manufacturing enterprises in the MSME sector.

The committee also expressed “deep concern” over the under-utilization of funds by the Khadi and Village Industries Commission (KVIC) for their flagship programs, thus hampering the promotion and development of Khadi and Village Industries and job creation in rural areas.

The KVIC, he suggested, should strive to popularize Khadi in new unexplored global markets and also try to obtain trademarks in these countries for its various products to protect the interests of its consumers and Khadi artisans. who make genuine Khadi products through their hard work. continuous work and effort.

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