MSMEs seek clarity on salary payments, details of package | Business News,The Indian Express

About 63 per cent of the pending dues for MSMEs are from the state governments and their undertakings. AIMO said the states have often cited lack of funds as the reason for not clearing the outstanding payments for MSMEs.

The government had last week disallowed global companies from participating in tenders up to Rs 200 crore, earmarking that space exclusively for Indian companies. (File Photo)Micro, Small and Medium Enterprises (MSMEs) have sought clarifications regarding eligibility, wage payments and participation in tenders that were part of the recent set of announcements by the Finance Ministry outlining the Atmanirbhar package to deal with the COVID-19 pandemic.

All India Manufacturers Organisation (AIMO), a MSME industry body, said members are confused about the methodology. K E Raghunathan, former President, AIMO said, “…FM has said that over about 50 lakh MSMEs will benefit from Rs 3 lakh crores package and other announcements , the total number of MSMEs that operate in India is in excess of 6 crores and the present package will not even cover 8 per cent of the total number of MSMEs, our members would like to know if there is another package for our sector. Uncertainty has been the biggest fear of MSMEs post the Covid-19 lockdown.”

Also about 63 per cent of the pending dues for MSMEs are from the state governments and their undertakings. AIMO said the states have often cited lack of funds as the reason for not clearing the outstanding payments for MSMEs.

Also, MSMEs require more clarity regarding EMI payments starting from June 1, clarity on payment for salaries, regularisation of existing NPA accounts by restructuring them, ceiling and eligibility for additional loans being offered, methodology on managing Fund of Funds , exemption from ESI and GST payments for MSMEs, Raghunathan said.

On the announcement related to no global tender below Rs 200 crore, AIMO said there needs to be clarity on whether Indian traders and Indian representatives of foreign companies will be eligible or be disallowed from participation.

The government had last week disallowed global companies from participating in tenders up to Rs 200 crore, earmarking that space exclusively for Indian companies.

via MSMEs seek clarity on salary payments, details of package | Business News,The Indian Express

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