MSMEs hail extension of ECLGS, focus on infrastructure
LUCKNOW : The Micro Small and Medium Enterprises (MSMEs) sector has welcomed the extension of Emergency Credit Line Guarantee Scheme (ECLGS) till March 2023, announced in the Union budget presented on Tuesday. However, many suggestions of the MSMEs have not been addressed in the budget.
In the Finance Bill 2022-23, the government has announced extension of guarantee cover by another Rs 50,000 crore under the ECLGS. This would take the total cover under this scheme to Rs five lakh crore. Investors in the state’s Defence Corridor have expressed satisfaction over announcement of 68% of the capital procurement for Defence to be earmarked for domestic industry. This is up from 58% in 2021-22 and will bring down dependence on imports of defense equipment. Smita Agarwal, director, PTC Industries,
said: “Government’s decision is a big boost to the Defence Corridor of Uttar Pradesh. It will also encourage ‘make in India’ initiative of the Centre.”
Mukund Halwasiya, co-chairman, PHD chamber, Uttar Pradesh chapter, said: “Budget announcements related to digital land records and e-registrations, green energy with reduced dependence on foreign fuels, inclusive e-learning for children, connected logistics and digital portals for freight and passenger movement, digitised passports and currency, stability in tax regime and hopefully a continuous reduction of direct tax rates, will boost economy.”
Commenting on the budget, LK Jhunjhunwala, chairman Emeritus, FICCI UP State Council said, “This budget is built on last year’s budget. Focus on infrastructure is commendable like last year. It will not only reduce unemployment rate but also make logistics for all sectors better than ever.” “Economy is at a stage of stimulus with India continuing to be one of the world’s fastest growing economies. A 35% increase in capital expenditure indicates the desire to improve infrastructure and more importantly serve as a significant avenue for job creation,” said Govind Singh, MD and CEO, Utkarsh Small Finance Bank.