YSRC seeks financial package to SMEs

Accusing the state and central governments of playing the role of onlookers to the deepening power crisis in the state, YSR Congress party has asked the Government to take immediate steps to come to the rescue of small and micro enterprises (SMEs) which are in severe financial crisis becuase of the scheduled and unscheduled power cuts.

In a letter addressed to the Chief Minister Kiran Kumar Reddy, party honourary President Smt. Y.S.Vijayamma said nearly one lakh SME units are facing the threat of closure due to the power cuts and asked him to address the issue immediately to save the small scale industry.

If no immediate steps are taken to mitigate the problems of the SMEs, 10 lakh people will lose their jobs and their families would face problems, she said, adding it would be a great tragedy if such development takes place.

Knowing full well that the gas production in the KG basin has been dwindling, gap between coal production and demand has been adversely increasing and monsoon may fail, the Government has failed to apply its mind to avert the impending power crisis, Vijayamma charged.

Accusing the Government of leaving the people high and dry on the power front, Vijayamma said both state and central governments have been playing the role of spectators while the SMEs have been forced to multiply their problems with banks and government financial institutions not coming forward to offer them loans and financial packages.

She found fault with the governments and banks in treating the SMEs with step motherly treatment while hugging the corporate companies with financial packages, term loans and working capital loans.

“Why similar packages can’t be offered to the SMEs under the debt restructuring mechanism especially when they are suffering financially because of your failures?” she questioned in her letter.

She requested the CM to take up the issue for a full fledged discussion in the ensuing assembly session and advise the Centre to direct the banks to come up with a scheme for rescheduling term and working loan instilments of the SMEs.

Vijayamma also asked the CM to request the Centre to ensure that overdue interest is written off by banks and excise duty and CVI on diesel used by the SMEs eliminated till full power supply is restored.

The state government can waive minimum demand charges on power and announce complete exemption of VAT on diesel used by the SMEs while restoring power normalcy,she suggested.

(Updated on Sept 14,2012)