ACMA welcomes new MSME definition and infusion of liquidity
The new package is expected to give a big boost to the MSME sector, which has been under severe stress.
Automotive Component Manufacturers
Association (ACMA), the apex body representing India’s auto component sector,
hailed the measures announced by the Government today. The association stated
that this would give a big boost to the MSME sector, which has been under
severe stress due to the lockdown.
According to the release issued by the association stated that the first tranche of
Economic Revival Package is timely and pragmatic.
Deepak Jain, President,
ACMA, said, “The announcement made by Hon’ble Finance Minister in context of
‘Atmanirbhar Bharat’ as envisioned by our Hon’ble Prime Minister, is indeed
heartening and reassuring. Change in definition of MSMEs has been a
long-standing recommendation of ACMA. With this new classification, a
significant number of ACMA members stand to benefit as the sector is dominated
by smaller enterprises. That apart, infusion of liquidity through the
Collateral Free Automatic loans and the Subordinate debt scheme, will ease the
severe challenge of Working Capital being faced by the sector.”
also hopeful that the Government will soon announce a package for demand generation
for the automotive sector. A uniform GST rate of 18 per cent on all vehicles
and auto components, backed by an incentive-based scrappage policy would bring
the automotive industry back on track. That apart, we look forward to support
from the government for payment of salaries of workmen and contractual labour
during the lockdown period.”, added Jain.