Trust shattered: Ludhiana industrialists react on Union Budget

Manav Mander

Ludhiana, July 23

The trust of Ludhiana-based industrialists got shattered as Finance Minister Nirmala Sitharaman did not announce relaxation in the 45-day payment rule for the micro, small and medium enterprises (MSMEs).

During the campaigning for the Lok Sabha poll, the industrialists had met Sitharaman, who had promised a rollback of the rule.

Further, the Finance Minister’s decision to reduce the Budget of the Ministry of Micro, Small and Medium Enterprises from Rs 23,177 crore to Rs 21,549 crore has taken the industrial hub

by surprise.

Badish Jindal, president, Federation of Punjab Small Industries Association, said, “Finance Minister Nirmala Sitharaman didn’t speak a word on Section 43B (45-day payment rule), which she had promised to roll back while campaigning in Ludhiana.”

“Eight crore MSMEs are feeling cheated throughout India. Instead of announcing subsidies or incentives, the Budget of the ministry has been reduced. The only saving grace is that one can avail loan up to Rs 20 lakh instead of Rs 10 lakh under the Pradhan Mantri Mudra Yojana,” said Jindal.

Gurmeet Kular, chief of the Federation of Industrial and Commercial Undertaking, said the industrialists had appealed to the Finance Minister to review the 45-day payment rule due to the cancellation of contracts by buyers and suppliers who need to pay tax on delayed payments. “This new clause came into effect from April 1. The Finance Minister had promised to review it, but nothing has been done in this regard,” he added.

Even the Fastener Manufacturers’ Association of India is extremely disappointed with the proposals.

Narinder Bhamra, president, Fastener Manufacturers’ Association of India, said, “There is nothing much for the MSMEs. They should have taken steps to form a steel regulatory authority, upgradation of credit linked capital subsidy scheme, reduction in import duty on machinery and provisions of social security for taxpayers.”

“There is no fresh subsidy or support in the Budget for the MSMEs. There is no word on withdrawal of Section 43B, which is hurting the MSMEs,” he added. Several schemes such as the Pradhan Mantri Mudra Yojana, credit support to the MSMEs during stress period and credit guarantee scheme for the MSMEs in the manufacturing sector existed only on paper, said Bhamra.