KTR seeks Centre’s support for MSME sector in Telangana
In his letter to Union Finance Minister Nirmala Sitharaman, Rama Rao stated that considering the sharp decline in Covid-19 cases in the country and recovery of modest economic activities, the MSME sector still requires support.
Hyderabad: IT and Industries Minister KT Rama Rao urged the Union government to support the MSME sector in Telangana State. He suggested for providing a moratorium against the loans availed by the MSMEs till March 31, 2022.
In his letter to Union Finance Minister Nirmala Sitharaman, Rama Rao stated that considering the sharp decline in Covid-19 cases in the country and recovery of modest economic activities, the MSME sector still requires support. “Looking at the seriousness of loss of business and declining revenues of the MSMEs, it will be justified if the loans availed by the MSMEs are given a moratorium till March 31st, 2022 without any accrual of interest during the moratorium period,” he said. He felt that this support will provide a big relief to the MSMEs and can help them get back to normalcy.
The Minister highlighted that Hyderabad and surrounding areas have been major hubs for manufacturing sector for the past five decades, with a predominance of MSME industries. However, due to pandemic-induced restrictions and disruptions since last year, the MSMEs have been severely affected. “Though the Government of Telangana did not put any restrictions on industrial activities during the recent second wave of the pandemic, the restrictions in surrounding States had a major impact on the functioning of the industries in Telangana as well,” said he said.
Minister Rama Rao stated that many of them faced challenges in procurement of raw materials and sending out finished products to their customers. He also pointed out that another reason for the slowdown of industrial activities was the shortage of labour that typically comes to Telangana from other States. He strongly appealed to the Centre to take up supportive measures in favor of the MSMEs.
Also read: Telangana keen on a mechanism to support micro enterprises
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