VTA’s suggestion to MSME Minister Gadkari on GECL
| Date :29-May-2020 |
Business Bureau :
Recently Government of India notified the Rs 3 lakh crore Guaranteed Emergency Credit Line (GECL) Scheme for MSMEs under the Atma Nirbhar Bharat Abhiyan to assist them surge over the economic distress being faced due to the COVID-19 pandemic. Vidarbha Taxpayers Association (VTA) whole-heartedly submits its gratitude to Government of India for supporting taxpayers by declaring such COVID Relief Package. Further, it is highly appreciated that this GECL scheme is also available to retailers and other business even if they are not registered as MSME.
VTA submitted few suggestions to MSME Minister Nitin Gadkari. Shrawankumar Malu, President of VTA submitted that eligibility requirement of having annual turnover up to Rs 100 crore in FY 2019-20 is perfect; however the loan up to Rs 25 crore is creating a hurdle whereby many MSMEs are unable to obtain the benefit of this scheme.
Hence, it is most respectfully submitted that Rs 5 crore (20% of Rs 25 crore) should be kept as the maximum upper limit to all borrowers subject to all other requirements are fulfilled by the borrowers as required under the scheme. T S Renu, Secretary said, a taxpayer who has already repaid his loan and with no loan now can also be under distress due to this COVID-19 pandemic, hence this eligibility requirement of loan liability should be removed and this facility should be made available to all taxpayers.