YSRC seeks financial package to SMEs

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.

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.

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.

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.

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.

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.

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.

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.

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.

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)

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