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

A Parliamentary panel on Monday steered that the federal government ought to lengthen the interval of reimbursement of loans below the Emergency Credit score Line Assure Scheme (ECLGS) for the MSME sector.

The Parliamentary standing committee on business has additionally requested the federal government to digitise the GST system to make sure paperless refund of claims.

It famous that below ECLGS, the reimbursement interval of 3-4 years, together with the moratorium interval, is a “very brief” interval for MSMEs, that are struggling to outlive after the second COVID wave.

“The committee, due to this fact, recommends that the reimbursement interval ought to be prolonged as much as 7-8 years with not less than two years of moratorium on the principal quantity.

“With respect to the curiosity, moratorium for curiosity from March 1, 2020 onwards ought to be introduced by the RBI,” it mentioned.

Noting that various MSME-oriented merchandise presently being imported will be manufactured in India, the panel steered {that a} Central Market Intelligence Centre be arrange for import-related merchandise and elements within the nation.

Additional, the committee mentioned the Centre could also be entrusted with the duty of placing out an inventory of merchandise that are being imported together with their specs. It also needs to unfold consciousness of the identical by means of digital, print and social media to draw entrepreneurs to arrange new manufacturing enterprises within the MSME sector.

The committee additionally expressed “deep concern” over under-utilisation of funds by the Khadi and Village Industries Fee (KVIC) for his or her flagship schemes, thereby hampering the promotion and improvement of Khadi and Village Industries and employment era in rural areas.

The KVIC, it steered, ought to endeavour to popularise Khadi in new unexplored international markets and likewise attempt to safe logos in these nations in respect of its numerous merchandise to safeguard the pursuits of its shoppers and Khadi artisans who’re manufacturing real Khadi merchandise by means of their exhausting work and steady efforts.