In a letter to Union Finance Minister Nirmala Sitharaman, IT and Industries Minister KTR requested the Union Government to support the MSME sector established in Telangana.
“While the incidence of COVID is declining sharply in the country and the chances of a modest economic recovery may be possible towards Q4 of the year, the MSME sector still requires support,” the Minister said.
“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,” Minister KTR said.
The Minister stated that this support will provide a big relief to the MSMEs and can help them get back to normalcy.
Minister KTR highlighted that Hyderabad and surrounding districts are major hubs for manufacturing for the past five decades, with a predominance of MSME industries. But due to pandemic-induced restrictions and disruptions since last year, the MSMEs have been badly affected, he said.
“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,” said Minister KTR.
Minister KTR stated that many of them faced challenges in procurement of raw materials and sending out finished products to their customers.
Minister 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.
Minister KTR strongly appealed to the Centre to take up supportive measures in favour of the MSMEs.