Finance minister Pranab Mukherjee has allocated Rs 5,000 cr to Small Industries Development Bank of India or Sidbi, drawing little cheer from the small and medium enterprises.
The outlay in the previous budget for the SIDBI was Rs 4,000 crore. The SME sector has termed the outlay as insufficient, but welcomed the progress on Goods and Service Tax with the states.
President of Federation of Association of Small Industries of India said the allocation to small enterprises is insufficient, “We appreciate the outlay of Rs 5,000 crore to SIDBI, but it is grossly insufficient. Outlay of Rs 7,000 crore is needed.”
MSME units also feel that instead of increasing the outlay for refinance, SIDBI should give funds directly to the smaller units. “A part of fund is used by SIDBI to refinance and the rest is directly funded to the SME units. If the entire fund is directly given to the SME units, it would simplify the procedure for the units,” said Atul Kapasi, president of Gujarat State Small Industries Federation.
The resolve to implement Good and Service Tax and talks with state governments raised hopes of traders and industries towards the new regime. “We also welcome the announcement on GST. It will streamline sales of goods across the country,” added Rathi.