Mumbai: On 8th of February Hon’ble Finance Minister Shri. Piyush Goyal ji held a post budget interaction with industry representatives at International Convention Hall, Bombay Stock Exchange, Mumbai.
Organized by CII (Confederation of Indian Industry), this was a very friendly and open forum for all the representatives from various industries to share their views and concerns with the Finance Minister.
Co-chaired by Shri. Devendra Phadnavis ji, Hon’ble CM of Maharashtra and Shri. Rajiv Kumar ji, Secretary, Financial Services, the session was well-received and applauded by all the attendees.
Laghu Udyog Bharati was represented by Shri. Bhushan Marde ji, General Secretary, Konkan Prant, Maharashtra. Shri. Bhushan Marde ji put forward following questions:
To make contributions in Make in India the MSME sector needs to focus on Research & Development, Product Development and Certifications. However, the existing taxation and subsidies framework has not many rewards for the Research and Developmental initiatives.
Sir, shouldn’t the businesses be encouraged and get additional Taxation Subsidies to do more Innovation, Product Development and Research?
Response from Hon’ble FM:
Hon’ble FM appreciated that the point of rewards for Research & Development was being raised by Laghu Udyog Bharati rather than the big industry players. He noted and agreed that although there are a few benefits in existing framework, there should be additional measures in place to promote and encourage Innovation, Product Development and Research and Development.
Ease of doing business with nationalized banks is Not at par with the private bankers. In few cases even renewal of the existing loans sometimes has to wait for 8 to 9 months. Sir, kindly share your views in this matter.
Hon’ble minister stated, that he had a meeting with all bankers on the very next day of taking charge as Finance Minister, wherein he has encouraged bankers to go ahead with justified commercial decisions and lend capital to viable businesses. On the current norm of delay of 8 to 9 months for renewal of loans he clearly stated that this shall Not be allowed to continue. Hon’ble Minister advised Shri. Rajiv Kumar, Secretary, Financial Services to personally look into this matter and advised him to develop a dedicated website portal and a mobile application to track commercial loan applications / renewals. Through such a web portal / application the applicant should be able to track the date of application, current status and causes for the delay in the process of approval.
Referring to PCA (Prompt Corrective Actions) Hon’ble Finance Minister stated that No businesses especially MSME should suffer financially due to PCA norms. He said, if any loan application process is suffering due to PCA norms, then the said application should be referred to a relevant non-PCA bank / institution for further approval.
Hon’ble Finance Minister further said that in cases where all these alternative mechanisms do not help, the concerned loan applicants are most welcome to directly contact Secretary Banking or myself to resolve the issue.