BENGALURU: Former Karnataka Industries Minister RV Deshpande on Friday urged Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman to help the MSME sector by relaxing the moratorium period for repayment of long term loans.
In separate letters, the Congress leader said the moratorium period for repayment of long term loans is five years. Increasing the moratorium for credit will help the sector beat the temporary hardship. His demand came in the light of the Centre announcing a slew of measures to revive the economy.
“This measure will not require any additional fund support or subsidy from the exchequer. This will not have any financial burden on the part of Government or financial Institutions. But MSME sector will get a big boost to kick start the growth,” the former minister said.
The MSME sector, Deshpande said, was in distress leading to large scale unemployment. “In this regard, I welcome the decision by the Government, yesterday, to ask banks not to declare any stressed loan account of MSME as NPA till March 2020,” he said.
In separate letters, the Congress leader said the moratorium period for repayment of long term loans is five years. Increasing the moratorium for credit will help the sector beat the temporary hardship. His demand came in the light of the Centre announcing a slew of measures to revive the economy.
“This measure will not require any additional fund support or subsidy from the exchequer. This will not have any financial burden on the part of Government or financial Institutions. But MSME sector will get a big boost to kick start the growth,” the former minister said.
The MSME sector, Deshpande said, was in distress leading to large scale unemployment. “In this regard, I welcome the decision by the Government, yesterday, to ask banks not to declare any stressed loan account of MSME as NPA till March 2020,” he said.
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